Dyad Buyer-Supplier and its Relation to Financial Performance

Abstract

This study aims to raise which practices of buyer-supplier dyad are related to the financial performance of the manufacturing industry in Brazil. Based of 174 Brazilian companies and a total of 312 respondents, the analysis use CFA (Confirmatory Factor Analysis) to validate the measurement of constructs and multiple regressions to analyze the relationship between practices of buyer-supplier dyad and financial performance. Our results showed a positive relationship dimension-strategic sourcing and buyer-supplier relationships-with the company's financial performance. However, the supplier evaluation system showed no statistically significant relationship. The findings reinforce the lack of formalization in the buyer-supplier relationship, a situation that often hinders the development of a long-term relationship. The lack of systematic evaluations of supplier performance can generate insecurity in the relationship, since historical actions taken by suppliers could serve as a criterion of choice in a future negotiation. As practical contributed to this study, it is expected that managers understand the importance of buyer-supplier relationship to the company's financial performance.

Supply chain integration practices and its impact on financial and operational performance of the Tunisian industrial sector

“…This finding is consistent with previous studies (e.g. Karimi and Rafiee 2014;Mustefa 2014;Altiok 2012;Linus et al, 2020;Al-shboul et al, 2018;Mondini et al, 2014;Ushantha et al, 2017, Yan & Dooley, 2013Kauppi et al, 2016;Ontario et al, 2010;Chavez et al, 2013). As evidenced by this study, the quality of information sharing has a positive but not statistically significant influence on the financial and operational performance of companies.…”

An axiomatic design framework to design interoperable buyer–supplier dyads

“…In SCs two dyads are distinguished: buyersupplier and customer-seller dyads. Mondini, Machado, & Scarpin (2014) stresses the importance of strategic relationship between buyers and suppliers.…”

“…In opposition to the competitive advantage (Porter, 1998), SC suppliers and customers are viewed as partners instead of adversaries with the objective of maximizing competitiveness and profit for the individual company as well as the entire SC network (Liu, Zhang, & Hu, 2005). Mondini et al (2014) further adds that buyer-supplier relationships must be fostered to achieve a process of competitive synergy, where both plot a horizon of opportunities.…”

“…Chen & Paulraj, 2004). This relationship is emphasized under the concept of collaborative advantage, whereas the dyad struggles for win-win relationships with mutual benefits achieving competitive synergy (Mondini, Machado, & Scarpin, 2014). Business Interoperability (BI) is the condition that makes possible for this kind of cooperation to achieve meaningful transactions to fulfil the objectives and create value (Blanc, Ducq, & Vallespir, 2007).…”