Supplier performance measurement system use, relationship trust, and performance improvement: a dyadic perspective

Abstract

PurposeGrounding on resource orchestration theory, this paper aims to study the relationship between the way buying companies use their supplier performance measurement systems and the performance improvements obtained from suppliers, with relationship trust identified as a mediator in the previous link.Design/methodology/approachThe authors design a conceptual model and test it through structural equation modelling on a final sample of 147 buyer-supplier responses, collected by means of a dyadic survey.FindingsResults suggest that the buyer company may achieve the most by balancing a diagnostic and interactive use of the measurement system, as they are both positively related to supplier performance improvement. Furthermore, relationship trust acts as a mediator in case of the interactive use, but not for the diagnostic. This type of use negatively affects relationship trust, due to its mechanistic use in the buyer-supplier relationship.Originality/valueThe authors’ results contribute to the current academic debate about supplier performance measurement system design and use by analyzing the impact of different supplier performance measurement system uses, and highlighting their relative impact on relationship trust and supplier performance improvement. From a methodological perspective, adopting a dyadic data collection process increases the robustness of the findings.

Supplier involvement in NPD projects: the buyer's perspective on the complementary roles of social capital and social exchange for project performance

“…Johnston et al (2004) revealed that the level of a supplier trust regarding a buyer enhances innovation, quality, long-term and short-term costs, and buyer satisfaction. Thus, confidence in a partner's capabilities and commitment are key enablers to NPD speed and quality improvement (Kabadurmus, 2020;Maestrini et al, 2021).…”

“…Parties evaluate outcomes obtained from a particular exchange relationship in order to determine their commitment to this relationship or to the partners it entails (Schiele et al ., 2012). They qualify these outcomes by relying on present and past experience with comparable relationships and knowledge of the other party's similar partnerships (Maestrini et al ., 2021).…”

“…Buying firms award preferred supplier status to a partner based on the extent to which their interests are fulfilled and on the appropriateness of the suppliers' characteristics (C.V and Routroy, 2016, 2018). Preferred suppliers are strategic partners who are likely to offer buying firms a renewed product performance at an advantageous price, as well as privileged service support and resources (Halley and Nollet, 2002, Maestrini et al ., 2021). Buyers establish long-term relationships with these suppliers (Ruben et al ., 2007), provide them with a preferential treatment and help them through technical assistance (Sieweke et al ., 2012).…”

“…Based on these social interdependence processes that govern their relationships, the supplier grants a preferred buyer (i.e. preferred customer) status to the partner who demonstrates trust and commitment (Jenkins and Holcomb, 2021), and the buying firm awards a preferred status to the supplier with the highest innovative capabilities (Van Echtelt et al, 2007) and who is most inclined to preferentially allocate his resources (Ellis et al, 2012, Maestrini et al, 2021. These mechanisms represent the core of the Social Exchange Theory (SET) (Blau, 1964), which, therefore, appears to be an appropriate lens to analyze the efficient management of buyer-supplier collaboration for NPD projects and explain their performance variation (Schiele et al, 2012).…”

Supply chain resource orchestration in emerging markets: an empirical examination of product launch performance

“…Yet, although the literature is establishing the importance of supply chain resources on product launch performance, additional theory suggests that product launches may also be impacted by the manner in which organizations utilize these and other resources. Specifically, resource orchestration theory (ROT) highlights the importance of managerial actions in creating competitive advantage (Maestrini et al ., 2021), proposing that the managerial use of resources is a key differentiator of competitive advantage. Recent meta-analytic evidence (dslb) confirms these inferences, finding that the “resources a firm possesses and the actions it takes to use them are jointly important determinants of performance advantages” (p. 1385).…”