The effects of supplier‐to‐buyer identification on operational performance—An empirical investigation of inter‐organizational identification in automotive relationships

Abstract

a b s t r a c tOver the past decade conceptual and empirical research in operations management has embraced the idea that collaborative supplier-buyer relationships are a source of competitive advantage for manufacturing firms. Anecdotal evidence from the Japanese and U.S. automotive industry and emerging research suggests that inter-organizational identification of suppliers with their buyers, termed supplier-to-buyer identification, is an unexplored factor of relational advantage. This study presents a model and empirical test that supplier-to-buyer identification fosters superior operational performance by enhancing trust, supplier relation-specific investments, and information exchange. Through a survey of 346 automotive supplier-buyer relationships, the findings show that supplier-to-buyer identification directly impacts supplier relationship-specific investments and information exchange, although most of the latter effect is mediated by trust. The findings also indicate that supplier relation-specific investments and information exchange play different but complementary roles in influencing operational performance. The results suggest new directions for supplier-buyer relationship research in operations management and important managerial implications.

Cruise ship suppliers: A field study of the supplier relationship characteristics in a service supply chain

“…Carr & Pearson, 1999;Choi & Hartley, 1996;Corsten, Gruen, & Peyinghaus, 2011;Krause, Handfield, & Tyler, 2007;Salmi, 2006).In our formal interviews, the managers in the supply chain department, when asked to describe their relationship with suppliers, generally concurred that it was a good and interdependent relationship, despite a very demanding environment where the volumes and velocity are high. Good relationships with suppliers are crucial to cruise lines, for the time windows for loading supplies are frozen and no second chance exists for re-supplying the ships.…”

Role of management capability and web-enabled direct procurement in creating competitive direct procurement advantage

“…This study measured the trust-building capability on a four-item scale adapted from the literature on supply chain management and inter-organisational relationships (e.g., Booth, 2010;Corsten et al, 2011;Dyer and Chu, 2011;Gupta and Narain, 2012;Day et al, 2013). The trust-building capability was operationalised by items indicating the degree to which firms felt their direct material suppliers believed that they keep their promises, could be relied on to be honest, were a company that stood by their word, and would honestly inform them of any problem.…”

Role of management capability and web-enabled direct procurement in creating competitive direct procurement advantage

“…This study measured the trust-building capability on a four-item scale adapted from the literature on supply chain management and inter-organisational relationships (e.g., Booth, 2010;Corsten et al, 2011;Dyer and Chu, 2011;Gupta and Narain, 2012;Day et al, 2013). The trust-building capability was operationalised by items indicating the degree to which firms felt their direct material suppliers believed that they keep their promises, could be relied on to be honest, were a company that stood by their word, and would honestly inform them of any problem.…”