Abstract
The sustainability of automotive component suppliers is under threat due to various global challenges. Literature suggests that only the actual personal relationship can differentiate suppliers within supply chains. Literature further encourages more insight into the conceptualization of personal interaction and trust within supply chains. This paper reports on research that tested the importance of trust and its directional linear relationship with personal interaction. Personal interaction revealed a significant correlation with trust, indicating that actions of the Tier 2 supplier during the sourcing process can substantially influence trust with the Tier 1 buyer. It is accordingly crucial for automotive component suppliers to invest in strategies to increase their personal interaction with their buyers in order to promote trust and in turn to promote perceived customer value and customer retention.
Highlights
Automotive component suppliers are under pressure from their competition (Barry & Terry, 2008; Sun, Pan, Wu & Kuo, 2014, p. 80)
This paper reports on research that tested the importance of trust and its directional linear relationship with personal interaction
Tier 2 South African automotive component suppliers find their competitive position threatened and it is crucial that they seek ways to sustain business and to ensure profitability in the long run
Summary
Automotive component suppliers are under pressure from their competition (Barry & Terry, 2008; Sun, Pan, Wu & Kuo, 2014, p. 80). Automotive component suppliers are under pressure from their competition The numerous challenges faced by automotive component suppliers include shorter life cycles and more intense global competition Customers constantly demand more value (Saban & Luchs, 2011) and lower prices, and they are more knowledgeable Tier 2 South African automotive component suppliers (or smaller suppliers lower in the supply chain) find their competitive position threatened and it is crucial that they seek ways to sustain business and to ensure profitability in the long run. As a result of the challenges that this situation presents, automotive supply chain role-players are encouraged to constantly seek solutions to optimize their supply chains and to ensure sustainability As a result of the challenges that this situation presents, automotive supply chain role-players are encouraged to constantly seek solutions to optimize their supply chains and to ensure sustainability (Manzouri et al, 2015, p. 86; Sharma, Bhat, Kumar & Agarwal, 2017, p. 21)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
