Efficacy of supply chain relationships – differences in performance appraisals between buyers and suppliers

Abstract

This paper examines the efficacy of three supply chain relationship factors: trust, commitment, and relationship specific investment (RSI) in affecting firms’ cooperation, innovation and financial performance, comparing buyers’ and suppliers’ perspectives. A questionnaire survey was conducted in mainland China. Two independent samples with 101 and 108 responses respectively from the Chinese business buyers and suppliers were collected by visiting nine large annual exhibitions. Both samples involved buyer–supplier business relationships across three business markets: textiles, food, and consumer electronics. The data was analysed using structural equation modelling and a two-groups invariance test. The results indicate that the efficacies of trust, commitment, and RSI influencing buyers’ and suppliers’ performance are different. The paths from the relationship factors leading to performance form patterns that differ between buyers and suppliers in the Chinese business context. While trust and RSI are the direct antecedents of buyers’ cooperation performance, commitment is the immediate precursor of suppliers’ cooperation performance. Trust and commitment lead to buyer’s innovation performance directly, while RSI is a direct driver of supplier’ innovation performance. In addition, RSI is not a significant factor for buyers’ financial performance, whereas it will generate financial return for suppliers. Based on these findings, we provide differentiated relationship management suggestions to managers of buying and supplying firms for helping them improve performance in the Chinese business market in particular. For example, trust and commitment are more important relationship factors than RSI for buying firms, while RSI is as significant as trust and commitment for supplying firms.

Whywe (do not) share data in German real estate – a reasoned action approach

“…This is also confirmed by a relatively strong correlation between the company-specific targets and the contractual regulations (r ¼ 0.599 and p-value < 0.001; Appendix 5). Not only is the alignment of goals and interests represented within principal-agent theory (Picot, 2008) but also the effect on data sharing has already been confirmed empirically (Wiesweg et al, 2022). Interestingly, the length of the contract term, which is often derived from principal-agent theory to reduce information asymmetries, only just misses the threshold of significance in the present sample (p-value ¼ 0.054).…”

“…Furthermore, the questionnaire was answered by 20 RESPs. By including the RESPs in the overall sample, the overall picture of the study could possibly be slightly skewed, as the executing entity of the contractors shows a slightly different behaviour than the procuring entity of the clients (Qian et al , 2023). However, after a descriptive review of the RESP's response behaviour in comparison to the rest of the sample, there are great similarities in this case, which is why the RESP can remain in the sample.…”

“…Furthermore, the questionnaire was answered by 20 RESPs. By including the RESPs in the overall sample, the overall picture of the study could possibly be slightly skewed, as the executing entity of the contractors shows a slightly different behaviour than the procuring entity of the clients (Qian et al, 2023). However, after a [4]).…”

“…The descriptive evaluation already addressed in the first model level showed that the beliefs seem to follow the findings ofQian et al (2023), at least in certain areas. Within the correlation analysis, therefore, only data sets of the real estate owners (¼ corporates and Own presentation investors; n ¼ 61) were considered, and the RESPs (n ¼ 20) were excluded.…”

Enhancing Logistics Performance through Increased Trust and Collaboration in Supply Chain Risk Management: A Focus on the Distribution Network of Manufacturing Companies

“…Trust is considered the most effective means to reduce costs incurred during transactions and is an essential factor in building an effective supply chain [20]. In a similar context, Qian et al [21] suggested that mutual trust is necessary to enhance the efficiency of the supply chain in the relationship between the supplier and buyer. In other words, there are various advantages to forming a relationship of trust with a counterpart, such as saving costs, increasing collaboration, and facilitating the sharing of information.…”