Commitment as a buyer-supplier antecedent for supply chain sustainability

Abstract

The South African automotive industry is an important sector that contributes substantially to the country's economy. The sustainability of local suppliers within South African automotive supply chains is under threat because of global pressures, especially competition from low-cost countries. Increased pressure leads to conflict between international buyers and local suppliers. The result is strained relationships, causing lower levels of commitment, often increasing risk and threatening the sustainability of local suppliers. The aim of this study was to determine whether commitment as an antecedent within supply chains exists and whether such a precursor has an effect on sustainability within South African automotive supply chains. The study found, through the application of a linear regression model, that commitment could potentially contribute to vital supply chain sustainability in South Africa. The results point automotive component suppliers towards investing in a relational governance strategy to enhance buyer commitment and thus contribute to business sustainability.