Abstract
The semiconductor industry is characterized by extreme competition in price and product features. Firms need to acquire or exchange resources with their supplier or buyer partners to stay at the leading edge of technology. Cooperation between buyers and suppliers is important and power is the mechanism that can explain the cooperative behaviors. This study aims to investigate how the power structure between the buyer and supplier influences the extent of suppliers’ cooperative behaviors, and the effects of these on buyer satisfaction with the buyer-supplier relationship. Opinions from firms in semiconductor manufacturing supply chain were used to investigate the proposed model. It is found that mutual interdependence between a supplier and its buyer can enhance cooperative behaviors and power asymmetry hurt firms’ investment in cooperative behaviors. Suggestions are then provided to semiconductor supply chain members based on the findings of this work.
Highlights
IntroductionThe semiconductor industry is characterized by extreme competition in price and product features, in which the ability to develop niche products or technology and new technologies is central [1,2].Firms hoping to stay at the leading edge of the industry must undertake substantial investments in product, process, and technology development, but no companies are able to do this alone [3,4].Firms need to acquire or exchange resources with their supplier or buyer partners to reduce their workloads, and focus on areas of competence and flexibly adjust to environmental uncertainties [5,6].Cooperation among supply chain members determines the efficiency and effectiveness of these resource exchanges, and determines the outcomes of product and technology development efforts.Firms in the semiconductor industry need to interact with their partners much more frequently than those in other industries.Cooperation in a supply chain refers to situations in which parties work together to achieve shared goals, leading to outcomes that exceed what any of the firms involved would achieve if they acted solely in their own best interests [7,8,9]
The results show that cooperative behaviors mediate the effect of total interdependence and power asymmetry on buyers’ satisfaction
This study provides empirical evidence of the effects of inter-firm interdependence on cooperative behaviors, which have been relatively neglected in the literature, and has answered the calls of researchers for more work in this area, such as Ramasehan et al [17]
Summary
The semiconductor industry is characterized by extreme competition in price and product features, in which the ability to develop niche products or technology and new technologies is central [1,2].Firms hoping to stay at the leading edge of the industry must undertake substantial investments in product, process, and technology development, but no companies are able to do this alone [3,4].Firms need to acquire or exchange resources with their supplier or buyer partners to reduce their workloads, and focus on areas of competence and flexibly adjust to environmental uncertainties [5,6].Cooperation among supply chain members determines the efficiency and effectiveness of these resource exchanges, and determines the outcomes of product and technology development efforts.Firms in the semiconductor industry need to interact with their partners much more frequently than those in other industries.Cooperation in a supply chain refers to situations in which parties work together to achieve shared goals, leading to outcomes that exceed what any of the firms involved would achieve if they acted solely in their own best interests [7,8,9]. Firms hoping to stay at the leading edge of the industry must undertake substantial investments in product, process, and technology development, but no companies are able to do this alone [3,4]. Cooperation among supply chain members determines the efficiency and effectiveness of these resource exchanges, and determines the outcomes of product and technology development efforts. Firms in the semiconductor industry need to interact with their partners much more frequently than those in other industries. Cooperation in a supply chain refers to situations in which parties work together to achieve shared goals, leading to outcomes that exceed what any of the firms involved would achieve if they acted solely in their own best interests [7,8,9]. The resulting interactions between firms result in various contingencies, where the firms modify their resources to meet each other’s needs and expectations
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