Strategic alliances with suppliers and customers in a manufacturing supply chain

Abstract

Purpose – The main purposes of the study are to: test the strategic alliance framework developed by Sambasivan et al. on the strategic alliances with suppliers and customers, separately; and compare the factors influencing strategic alliances with suppliers and customers based on the results. The present study analyzes the effect of strategic alliance motives, environment, asset specificity, perception of opportunistic behavior, interdependence between supply chain partners, and relational capital on strategic alliance outcomes. Design/methodology/approach – A sample of 228 companies representing different industries in manufacturing in Malaysia participated in the study. The sampling frame used was Federation of Malaysian Manufacturers directory. A questionnaire was distributed to all the companies. The authors tested the structural model for 185 suppliers and 75 customers using structural equation modelling. Findings – Based on the results, the key differences in the strategic alliances with suppliers and customers are: the relationship between environment and alliance motives is stronger for alliances with suppliers, the relationship between alliance motives and relational capital is significant for alliances with customers, the relationship between asset specificity and interdependence is significant for alliances with customers, the relationship between perception of opportunistic behaviour and relational capital is significant for alliances with customers, and the relationship between perception of opportunistic behaviour and interdependence is significant for alliances with suppliers. Originality/value – The current study adds to the body of knowledge on strategic alliances. The results can help supply chain managers identify factors that influence the success of strategic alliances with suppliers and customers and develop strategies to enhance effective collaborative relationships between supply chain partners. The authors specify the limitations and directions for future research.