Supply Chain Relationships for Customer Satisfaction in China: Interdependence and Cooperative Goals

Abstract

This study develops a model based on Deutsch’s theory of cooperation and competition to clarify the supply chain relationships and interactions that contribute to customer satisfaction. Results of structural equation analyses suggest that organizations and suppliers and organizations and distributors who recognize each other’s importance develop cooperative rather than competitive and independent goals. With cooperative goals, they come to trust each other and work for continuous improvement; these relationships in turn result in the products and service that satisfy customers. Results were interpreted as suggesting that cooperative goals are an important basis for developing effective supply chain partnerships in Asia and perhaps in other regions as well. Copyright Springer Science + Business Media, Inc. 2005supply chain, goal interdependence, trust, continuous improvement, customer satisfaction,

The impact of power and relationship commitment on the integration between manufacturers and customers in a supply chain

“…Ramaseshan et al (2006) found that both coercive power and reward power had a positive effect on commitment, and Maloni and Benton likewise found a positive relationship between reward power and normative relationship commitment. Wong et al (2005), however, found that Chinese managers avoided opportunistic behavior because of the value placed on interpersonal relationships. Thus, there is a need for further testing of this relationship.…”

Performance implications of nonmarket strategy in China

“…Third, the Chinese business environment is under the heavy influence of Confucianism, which has endured as the basic social and political value system for over 2,000 years (Hwang, 1987). Therefore, guanxi, favor, and reciprocity are the common features embodied in the relationship between firms and their stakeholders such as governments in China (Tsang, 1998;Wong, Tjosvold, & Zhang, 2005).…”

Bridging the distance: Managing cross-border knowledge holders

“…On the one hand, understanding face-giving and face-saving mechanisms are crucial in order to build trust in this low-trust culture, break the face barrier, and in addition to motivate local knowledge holders' involvement in knowledge sharing and integration (Hung, 2004). On the other hand, an embedded learning culture with strong emphasis on accountability, valuing local knowledge and trust (Chen and Chen, 2004;Dodgson, 1993;Fryxell, Dooley andLi, 2004, Porras, Clegg andCrawford, 2004;Wong, Tjosvold and Zhang, 2005;Zarraga and Bonache, 2003) will motivate articulation of tacit knowledge. In addition, rules, directions, tough task assignment and empowerment will all exert pressure for knowledge holders to share and utilise their ideas (Grant, 1997).…”