Control mechanisms across a buyer–supplier relationship quality matrix

2010 ◽  
Vol 63 (1) ◽  
pp. 3-12 ◽  
Author(s):  
Yi Liu ◽  
Yuan Li ◽  
Leinan Zhang
Keyword(s):  
Relationship Quality ◽  
Control Mechanisms ◽  
Supplier Relationship

The mediating effect of satisfaction on trust-commitment and relational outcomes in manufacturer–supplier relationship

2019 ◽  
Vol 35 (2) ◽  
pp. 219-230 ◽  
Author(s):  
Yogesh Mungra ◽  
Prabhat Kumar Yadav
Keyword(s):  
Relationship Quality ◽  
Positive Relationship ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Content Type ◽  
Relationship Duration ◽  
Relational Outcomes ◽  
Relationship Performance ◽  
The Relationship ◽  
Supplier Relationship

Purpose This study aims to investigate the effect of commitment and trust on satisfaction and sequential effect of satisfaction on relational outcomes (i.e. performance and governance cost) in a manufacturer–supplier relationship. Authors of this paper explore the relationship quality parameters such as trust, commitment and satisfaction and its effect on improving the performance and reducing the governance cost between the partners, as well as the effect of relationship duration on the antecedents and relational outcomes. Design/methodology/approach Based on the conceptual framework developed by authors, hypotheses were formulated, to test the effect of trust and commitment to performance and governance cost through the mediating effect of satisfaction in the manufacturer–supplier relationship. Data were collected from 196 manufacturers from the western part of India, through a structured questionnaire, and collected quantitative data were analyzed through structural equation modeling. Findings The analysis of the sample of 196 manufacturers suggests a positive relationship between satisfaction and commitment and between satisfaction and trust. The study suggests that increased satisfaction lowers governance cost as well as suggests a positive relationship between satisfaction and performance in a manufacturer–supplier relationship. As a relationship grows in an early stage, relationship performance improves, and as the relationship matures, the relationship performance diminishes. Practical implications Findings suggest that managers in business and industrial markets shall focus on commitment in the relationship rather than just trust that leads to satisfaction. It also suggests that a higher level of satisfaction enhances the performance and reduces the governance cost in a manufacturer–supplier relationship. Originality/value This research makes four contributions: first, it enquires the direct impact of trust and commitment to a manufacturer’s satisfaction; second, it investigates the indirect impact of trust on a manufacturer’s satisfaction through commitment in the relationship; third, it investigates the mediating satisfaction between trust-commitment and relationship outcomes (relationship performance and governance cost); fourth, the research shows the impact of relationship duration regarding the relational outcomes and the dimensions of relationship quality into a short-term and long-term relationship. It also uniquely suggests that the presence of commitment has a catalytic effect on satisfaction. Research offers managerial implication to increase the performance and to reduce the governance cost in the relationship.

Performance implication of supplier relationship quality: a structural analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jie Yang ◽  
Hongming Xie ◽  
Jifu Wang ◽  
Yingnan Yang
Keyword(s):  
Path Analysis ◽  
Relationship Quality ◽  
Transaction Cost Economics ◽  
Pivotal Role ◽  
Capital Theory ◽  
Content Type ◽  
Major Supplier ◽  
The Impact ◽  
Supplier Relationship

PurposeThis study aims to examine the impact of supplier relationship quality on curtailing opportunism and promoting cooperation between the exchange partners. It also investigates the contingent impact of contract specificity on the relationships and assesses performance implications of relationship quality for both buyer and its major supplier in the exchange.Design/methodology/approachConfirmatory factor analysis and path analysis were performed based on data collected from manufacturers in a survey. The hypotheses were tested using path analysis.FindingsThe findings of this study indicate a pivotal role of supplier relationship quality in suppressing opportunism and enhancing cooperation between exchange parties, which lead to dyadic performance. Furthermore, the effect of supplier relationship quality is strengthened by contract specificity.Originality/valueThis study adds value to the existing streams of studies in several ways. First, informed by the nexus of relational capital theory and transaction cost economics, the authors emphasize the pivotal role of relationship quality in curtailing opportunism and fostering cooperation and the moderating effect of contract specificity on the above linkages. Second, this study provides empirical evidence of the mechanism of the effect of contract specificity on opportunism and cooperation.

scholarly journals Antecedents of supplier relation quality in the Ghanaian construction industry

2016 ◽  
Vol 6 (1) ◽  
pp. 1-18 ◽  
Author(s):  
F. K. Bondinuba ◽  
D. J. Edwards ◽  
S. G. Nimako ◽  
D. Owusu-Manu ◽  
C. Conway
Keyword(s):  
Supply Chain ◽  
Conceptual Framework ◽  
Relationship Quality ◽  
Construction Industry ◽  
Building Material ◽  
Building Materials ◽  
Negative Influence ◽  
Relationship Building ◽  
Construction Companies ◽  
Supplier Relationship

Effective and efficient management of suppliers within a supply chainis an essential requirement for improving organisational performance within construction companies. However, factors inherent within the supply chain of supplier-buyer exchanges such as culture, politics, dependence and trust may influence supplier relationship quality (SRQ). This research therefore seeks to identify the influence that these factors have upon SRQ in the Ghanaian construction industry and develop a conceptual framework that explains the interconnectivity between them. A literature review isused to develop a conceptual framework of the antecedents influencing supplier relationship quality. Primary ‘perception’ data obtained from 152 building material suppliers is used to test the proposed model using Partial Least Squares (PLS). Findings reveal that culture, politics, dependence and trust have a significant influence on relationship quality in supply chain collaborations amongst purchasers and suppliers of building materials. While politics has a strong influence on dependence, it also generates a negative influence on SRQ and trust. The research confirms the positive effect of trust and dependence in SRQ management and extends understanding of the influence of culture and politics. Practical implications suggest that managers of building material suppliers should focus upon building trust and dependence and be discouraged from over-reliance upon politics and political affiliations as a basis for long-term relationship building

scholarly journals Investigating the Role of Open Costing in the Buyer-Supplier Relationship: Implications for Global Apparel Supply Chain Management

2021 ◽  
pp. 0887302X2199350
Author(s):  
Huicheng Wu ◽  
Jin Su ◽  
Nancy Hodges
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Relationship Quality ◽  
Mutual Trust ◽  
Chain Management ◽  
Fixed Price ◽  
And Performance ◽  
Shed Light ◽  
Supplier Relationship

Research in supply chain management focused on the buyer-supplier relationship (BSR) indicates that costing practices can impact relationship quality and performance. Yet, few studies have examined how the supplier’s costing methods affect the BSR. To address this gap, this study investigates the role of open costing in the BSR within the apparel supply chain. Open costing is a popular costing practice in which a supplier compiles an itemized list of costs rather than a fixed price. To examine the extent to which open costing is practiced as part of BSRs, interviews were conducted with 30 professionals operating as suppliers in China and Bangladesh. A thematic analysis of the interview data identified several factors important to open costing and the BSR, including Mutual Trust, Fairness, Flexibility, Efficiency, and Sustainability. Findings shed light on the mechanism and practice of open costing within the BSR, and specifically from the perspective of suppliers.

scholarly journals Antecedents of supplier realation quality in the Ghanaian constrution supply chain

2016 ◽  
Vol 6 (1) ◽  
pp. 1-18
Author(s):  
F Bondinuba ◽  
◽  
D Edwards ◽  
S Nimako ◽  
S Onwusu-Manu ◽  
...  
Keyword(s):  
Supply Chain ◽  
Conceptual Framework ◽  
Relationship Quality ◽  
Building Material ◽  
Building Materials ◽  
Negative Influence ◽  
Relationship Building ◽  
Construction Companies ◽  
Efficient Management ◽  
Supplier Relationship

Effective and efficient management of suppliers within a supply chain is an essential requirement for improving organisational performance within construction companies. However, factors inherent within the supply chain of supplier-buyer exchanges such as culture, politics, dependence and trust may influence supplier relationship quality (SRQ). This research therefore seeks to identify the influence that these factors have upon SRQ in the Ghanaian construction industry and develop a conceptual framework that explains the interconnectivity between them. A literature review is used to develop a conceptual framework of the antecedents influencing supplier relationship quality. Primary ‘perception’ data obtained from 152 building material suppliers is used to test the proposed model using Partial Least Squares (PLS). Findings reveal that culture, politics, dependence and trust have a significant influence on relationship quality in supply chain collaborations amongst purchasers and suppliers of building materials. While politics has a strong influence on dependence, it also generates a negative influence on SRQ and trust. The research confirms the positive effect of trust and dependence in SRQ management and extends understanding of the influence of culture and politics. Practical implications suggest that managers of building material suppliers should focus upon building trust and dependence and be discouraged from over-reliance upon politics and political affiliations as a basis for long-term relationship building.

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