Factors influencing swift and effective resolution of supplier problems

Abstract

PurposeHow might an organization swiftly resolve supplier problems such that the issue does not reoccur? The purpose of this study seeks to understand the impact of different knowledge-sharing routines on measures of effective problem resolution.Design/methodology/approachData are collected from an automotive manufacturer's (buyer) database. A hierarchical linear model analyzes dyadic data collected from 155 problems across 24 suppliers.FindingsThis study reveals that different ways of communicating have differing impact on measures of effective problem-solving. Communication involving face-to-face interaction slows the process, whereas frequent communication can lead to swift resolution. Furthermore, management teams are more likely to lead to a “better” fix in that these teams are more likely to implement changes in the process or product.Research limitations/implicationsThe data are for a tier-one automotive supplier. Hence, the findings are limited by the extent to which other organizations may differ.Practical implicationsThe results provide insights for managers experiencing supply issues. Some forms of communication should be encouraged as they enhance the process. Moreover, the findings suggest there are consequences to pressuring a supplier to resolve a complaint quickly.Originality/valueVery few researchers can claim to have investigated observed collaborative mechanisms that occur between a buyer and its suppliers when resolving a problem. This research adds to the literature on the relational view theory as it applies to supply chain management and problem resolution.