Inter-organisational bullying : a critical small firm perspective

Abstract

The premise of this thesis it that inter-organisational bullying is a surreptitious, targeted but still prevalent form of abuse perpetuated mostly by big corporations in their relationships with small service providers. The dynamics of this kind of bullying are complex, and this qualitative study provides a lens through which to investigate how it occurs, its antecedents and the implications of it. Inter-organisational bullying as depicted in this study occurs when a powerful business partner (usually a big corporation) abuses its position of power and engages in practices that adversely affect the competitiveness and even the sustainability of its business partners, in this case its, small suppliers. The theoretical dimensions of this research are based on previous studies, mostly in supply chain relationships, that refer to individual aspects occurring in business both in the context of intra and inter-organisational exchanges. The relevant concepts selected for understanding inter-organisational bullying are bullying, abuse of power, asymmetric relations, unethical exchange practices and business opportunism. The research elicited experiences narrated by the owners/managers of small service providers operating in Sydney, Australia. In-depth interviews informed by narrative inquiry and critical incident analysis were conducted to determine the various forms of questionable business experiences that small business owners/managers endured in dealing with their big clients. Based on their experiences this thesis paints a complex picture of abuse of authority and power in situations that can be conceptualised as inter-organisational bullying. The organisational basis of these kinds of abuses is not commonly acknowledged by many but, in reality, it is found to be a widespread occurrence between large, powerful corporations and their small service providers. The findings point to a variety of negative effects related to inter-organisational bullying. These included abuse of power, intimidation of small firms and the use of deceitful practices by the big corporations. The results underscore the importance of recognising the extensive and enduring nature of the harm that results from inter-organisational bullying. From the narratives of participants, it was evident that apparently minor bullying tactics occurring regularly and over a period of time had serious negative implications among small service providers. The incidence and high costs to smaller firms were confirmed, as can be gleaned from the narratives shared by the participants in the study. The results of the study reinforced an understanding that inter-firm bullying is a malicious, unfair and opportunistic attempt to undermine the weaker party in the service industry system, which is normally the small service provider. Corporate bullies actively, though often covertly, seek to take advantage of their service providers in the service industry sector by using tactics designed to optimise or even increase the power imbalance. A key contribution of this study is the identification of organisational attributes and behaviours that promote inter-firm bullying in the service industry. The study emphasises that in the service industry sector, it may be more useful to consider bullying as facilitated by organisational factors rather than individual attributes. This research showed that organisations tolerate bullies in positions of power, in part, because they are regarded as influential inside the organisation. This research showed that those representing the firm in negotiating privileged positions were bullies, able to inflict harm on their vulnerable organisational partners. The results revealed the effects that a big and powerful corporation can have upon the performance of a small supplier. Understanding the characteristics of the relationships that exist between big corporations and their small service providers confirmed the presence of the phenomenon conceptualised in this thesis as inter-organisational bullying, at least in the context of the service supply industry. In addition to providing an indication of the direction of future research work, the present study offers an unexplored way of theorising inter-organisational bullying and its implications for the well-being of small businesses, particularly small service providers. This study demonstrates the significance of critically appreciating the conditions that facilitate intimidation between companies and, equally, the importance of developing strategies for coping and dealing with it.

Date of Award	2019
Original language	English