Supplier Competence Research Articles

A configurational approach to understanding relationship characteristics in differing levels of servitization

In their transition from product-based to value-based offerings, B2B suppliers progress through different levels of servitization. These levels are characterized by the type of offering sold (products, services, bundles, or solutions) and the nature of business interaction (transactional vs. relational). This study sheds light on which configurations of customer-supplier relationship characteristics are associated with specific levels of servitization. Emerging from the theories-in-use concept, the authors build a conceptual framework entailing such characteristics and levels of servitization. To empirically investigate this framework, a survey with 182 industrial salespeople is analyzed using fuzzy-set qualitative comparative analysis (fsQCA). The authors identify equifinal relationship configurations of ‘trust and dependence’, ‘communication’, ‘supplier competence’, ‘customer predispositions’, and ‘price sensitivity’ for 11 different servitization levels. This research extends academia's understanding of servitization by contextualizing when and how different types of offerings are sold. Suppliers can use these insights to better identify the appropriate offering type and business interaction approach for the context in which they are operating.

What Makes Bangladeshi RMG Suppliers Resilient in Global Apparel Supply Chain Management?

The global Readymade Garments (RMG) industry heavily relies on global supply chain management that aims to seek suppliers offering affordable, high-quality products delivered quickly. However, research on the factors influencing supplier selection in the RMG sector is scarce, and existing models fail to explain the paradox of rising exports in Bangladesh despite supply chain disruptions. This research strived to pervade this knowledge gap through a mixed-method empirical study on 66 international clothing brands. The findings reveal a two-step supplier selection process involving enlistment in a qualified supplier pool and subsequent allocation of work orders within the pool. Supplier competence and competitiveness are critical for enlistment and order qualification, while supplier relationship, competitiveness, and competence influence the selection of order winners. Notably, larger companies prioritize relationships in supplier selection. International RMG buying companies should focus on supplier competence factors to mitigate supply chain risks and maintain positive public relations. For the same reason, Bangladeshi policymakers should enforce compliance and help RMG suppliers to gain competencies.

MAINTENANCE AND REPAIRS SYSTEM OF AUTOMOTIVE INDUSTRY FOR SUSTAINABLE INTERNATIONALIZATION

The current article investigates the maintenance and repair system within Iran's automotive industry in the context of internationalization and proposes a prioritization model. This study employs the Gogus & Boucher and Chang extent analysis methods to calculate suitability percentages and significant weights, based on a sample of 17 experts from Bahaman Car Manufacturing Co. The proposed model comprises three levels: 1) factors influencing system internationalization; 2) indicators related to cost, speed, capability, and mission compatibility; and 3) sub-criteria for each indicator. The adoption capability holds the highest weight (0.639), followed by implementation speed (0.612), alignment with the organization's mission (0.454), and implementation cost (0.454). Notably, the primary contributors to cost are confidence and supplier competence, while employee competency and responsiveness play crucial roles in speed. The study highlights flexibility as a key competency, with mission compatibility predominantly influenced by IT infrastructure and self-control MR. This research contributes fresh insights to the understanding of effective global growth strategies by shedding light on enhancing the readiness of the maintenance and repair system for internationalization within Iran's automotive industry.

Trust violations in buyer–supplier relationships: Spillovers and the contingent role of governance structures

AbstractBuyer–supplier relationships provide ample opportunities for trust violations to occur. Yet the literature on the impact and outcomes of violations of trust in buyer–supplier relationships is underdeveloped. In this study, we report the results from three complementary scenario‐based experiments that evaluate the impact of a supplier‐induced violation on a buyer's trust in that supplier. We establish a spillover effect of supplier integrity violations onto the buyer's competence dimension of trust, and of supplier competence violations onto the buyer's integrity dimension of trust. We also examine the role of inter‐organizational governance, finding that contractual and relational governance are differentially effective at mitigating trust damages experienced by a buyer after a supplier violation. Specifically, we observe that relational governance helps mitigate damages to buyer's trust following a supplier competence violation, whereas some evidence suggests that contractual governance serves to preserve buyer's trust following a supplier integrity violation. These findings have important theoretical and managerial implications for the management of buyer–supplier relationships. We discuss why the governance structures adopted by firms involved in a buyer–supplier relationship have distinct impacts on trust assessments following a violation.

INFLUENCE OF SUPPLIER EVALUATION CRITERIA ON PERFORMANCE OF METALS AND ALLIED FIRMS IN KENYA

Purpose: This study aimed at examining the influence of supplier evaluation on performance of metal and allied firms in Kenya by focusing on supplier’s financial capability, supplier’s regulatory compliance, supplier’s technical capability and supplier’s level of human resource competency. The study was guided by Lean Supplier Competence Model, Institutional Theory, Resource Based Theory and Social Exchange Theory.Methodology: The population target of the study comprised of 213 respondents drawn from managerial, supervisory and junior positions in procurement departments in all 71 metal and allied firms in Kenya. The study adopted a census method where it included all members of the target population. Questionnaires and data collection sheets were used to collect primary and secondary data respectively. The collected data was coded and analyzed qualitatively and quantitatively through Statistical Package for Social Sciences (SPSS) version 21. Data was analyzed using both descriptive and inferential statistics where regression analysis was used to establish the effect of independent variables on the dependent variable. Descriptive and inferential results were presented in form of tables and figures. Pilot study was conducted prior data collection to test reliability and validity of data collection instruments.Results: The findings of the study revealed that supplier’s financial capability, supplier’s regulatory compliance, supplier’s technical capability and supplier’s level of human resource competence have a positive and significant influence on performance of metal and allied firms in Kenya.Recommendations: The study recommends that metal and allied firms should focus on supplier’s financial capability, supplier’s regulatory compliance, supplier’s technical capability and supplier’s level of human resource competence when conducting supplier’s evaluation since the practices have a positive and significant influence on performance of metal and allied firms.

INFLUENCE OF SUPPLIER EVALUATION CRITERIA ON PERFORMANCE OF METALS AND ALLIED FIRMS IN KENYA

Purpose: This study aimed at examining the influence of supplier evaluation on performance of metal and allied firms in Kenya by focusing on supplier’s financial capability, supplier’s regulatory compliance, supplier’s technical capability and supplier’s level of human resource competency. The study was guided by Lean Supplier Competence Model, Institutional Theory, Resource Based Theory and Social Exchange Theory.Methodology: The population target of the study comprised of 213 respondents drawn from managerial, supervisory and junior positions in procurement departments in all 71 metal and allied firms in Kenya. The study adopted a census method where it included all members of the target population. Questionnaires and data collection sheets were used to collect primary and secondary data respectively. The collected data was coded and analyzed qualitatively and quantitatively through Statistical Package for Social Sciences (SPSS) version 21. Data was analyzed using both descriptive and inferential statistics where regression analysis was used to establish the effect of independent variables on the dependent variable. Descriptive and inferential results were presented in form of tables and figures. Pilot study was conducted prior data collection to test reliability and validity of data collection instruments.Results: The findings of the study revealed that supplier’s financial capability, supplier’s regulatory compliance, supplier’s technical capability and supplier’s level of human resource competence have a positive and significant influence on performance of metal and allied firms in Kenya.Recommendations: The study recommends that metal and allied firms should focus on supplier’s financial capability, supplier’s regulatory compliance, supplier’s technical capability and supplier’s level of human resource competence when conducting supplier’s evaluation since the practices have a positive and significant influence on performance of metal and allied firms.

Analysis of supply chain complexity drivers for Indian mining equipment manufacturing companies combining SAP-LAP and AHP

In today’s world supply chain has become more complex due to the multiplicity of drivers created by globalization, global geopolitical risk, technological disruption, market uncertainty, mass-customization and changing laws and regulations. Supply Chain Complexity (SCC) is one of the most difficult problems in today’s global supply chains and assumed as the key impediment to business performance. SCC has the significant adverse impact on competitiveness, cost efficiency, customer satisfaction, product innovation and market share. It is imperative for the focal firm and its supply chain managers to know SCC drivers causing supply chain complexity. Identification and prioritizing of SCC drivers are required for effective monitoring and controlling of supply chain management. SCC drivers can be categorized based on the origin of their generation as upstream, operational, downstream and external. This paper presents the study conducted in leading earthmoving and mining equipment manufacturing firms in India, to understand the supply chain complexities for off-road & mining equipment industries. Qualitative situation-actors-process (SAP) and learning-action-performance (LAP) model has been applied to understand and analyze the concept of supply chain complexity drivers and its dynamic behavior. Quantitatively multi-criterion decision making (MCDM) is used in prioritizing SCC drivers due to the subjectivity of drivers. An AHP (Analytic Hierarchy Process) study has also been done to quantify and prioritize SCC drivers for managerial decision making. This study contributes towards developing a priority ranking of SCC drivers based on its impact on overall SCC which have significant importance in supply chain strategic planning. The current research investigates evolving SCC drivers like supplier resourcing risk, supplier competence, regional strategies, shortening product life-cycle, changing customer service expectation which were not adequately addressed in existing literature. Our research findings provides practical insights to managers in understanding the role of SCC drivers like market uncertainty and risk, changing laws and regulations, constant change in customer requirement, multiplicity of customers, forecast inaccuracy, sustainable supply chain practices in the overall outcome of ranking. The outcome of this study also enriches the existing literature of SCC with practitioners’ insight from manufacturing industry.

Determinantes da Intenção de Continuidade de Relacionamento entre Pequenos Varejistas e seus Fornecedores de Materiais de Construção Hidráulicos

Objetivo: Identificar os fatores determinantes da inteno de continuidade do relacionamento entre pequenos varejistas de materiais de construo e seus fornecedores, testando um modelo em que a confiana exerce um papel central. Mtodo: Validao preliminar das escalas e posterior emprego de Modelagem de Equaes Estruturais, para testar o efeito mediador da confiana na inteno de continuidade do relacionamento em 127 pequenos varejistas. Originalidade/Relevncia: Pouco se investigou do relacionamento de pequenos varejistas e grandes fornecedores de materiais de construo, apesar da relevncia econmica do setor. Ainda, ressalta-se a dificuldade de se obter informantes no contexto B2B. Resultados: A confiana uma varivel mediadora para a continuidade do relacionamento e est associada ao papel do vendedor no atendimento e suporte (caractersticas do vendedor), a adequao do mix de produtos (competncias do fornecedor) e na preocupao do fabricante em entender as necessidades do segmento e demonstrar motivao para conduzir os conflitos de canal (sintonia com o fornecedor). Contribuies tericas/metodolgicas: Os resultados do estudo indicam concordncia com os principais pressupostos tericos, reforando a utilizao destes construtos em estudos futuros. Contribuies sociais / para a gesto:O profissional de vendas se constitui no elo entre o pequeno varejista e o fabricante. Ressalte-se ento, a relevncia de aes de treinamento e capacitao para a equipe de vendas.

INFLUENCE OF SUPPLIER COMPETENCE ON THE PERFORMANCE OF STATE CORPORATIONS IN KENYA

Purpose: The purpose of this study was to determine the influence of supplier competence on the performance of state corporations in KenyaMethodology: The study adopted cross-sectional survey design using both quantitative and qualitative approaches. The target population was all the 187 state corporations in Kenya. The study employed a census approach. Primary data was collected using questionnaires. A pilot study was conducted to measure the research instruments reliability and validity. Descriptive statistics were used aided by Statistical Packages for Social Sciences version 24 to compute percentages of respondents’ answers. Inferential statistics using linear regression and correlation analysis were applied to assist examining relationship between the research variables. The results were presented using tables and graphs.Results: The findings revealed that supplier competence explained 44.1 % of the total variations in performance of state corporations in Kenya. Further, the results indicated that the overall model was statistically significant as supported by a p value of 0.000. This was supported by an F statistic of 111.904 and the reported p value (0.000) which was less than the conventional probability of 0.05 significance level. In addition, the findings show that there is a positive and significant relationship between supplier competence and performance of state corporations in Kenya as supported by a p value of 0.000 and a beta coefficient of (0.903). This implies that an increase in supplier competence by 1 unit would increase the performance of state corporations by 0.903units.Unique contribution to theory, practice and policy: Based on the findings, the study recommended that suppliers should develop competent technical abilities so as to provide high quality products or services. Some of the technical dimensions that suppliers should develop competence in include; compliance with quantity, compliance with due date, compliance with packaging standard, production planning systems of suppliers, and maintenance activities of suppliers, plant layout and material. It’s also recommended that state corporations in Kenya should check frequently if supplier organisation is abreast with the newer information technology developments as technology is very dynamic and changes regularly as the technology that was used in the past is not the one we using now and it will not be the one we will use tomorrow.

INFLUENCE OF SUPPLIER COMPETENCE ON THE PERFORMANCE OF STATE CORPORATIONS IN KENYA

Purpose: The purpose of this study was to determine the influence of supplier competence on the performance of state corporations in KenyaMethodology: The study adopted cross-sectional survey design using both quantitative and qualitative approaches. The target population was all the 187 state corporations in Kenya. The study employed a census approach. Primary data was collected using questionnaires. A pilot study was conducted to measure the research instruments reliability and validity. Descriptive statistics were used aided by Statistical Packages for Social Sciences version 24 to compute percentages of respondents’ answers. Inferential statistics using linear regression and correlation analysis were applied to assist examining relationship between the research variables. The results were presented using tables and graphs.Results: The findings revealed that supplier competence explained 44.1 % of the total variations in performance of state corporations in Kenya. Further, the results indicated that the overall model was statistically significant as supported by a p value of 0.000. This was supported by an F statistic of 111.904 and the reported p value (0.000) which was less than the conventional probability of 0.05 significance level. In addition, the findings show that there is a positive and significant relationship between supplier competence and performance of state corporations in Kenya as supported by a p value of 0.000 and a beta coefficient of (0.903). This implies that an increase in supplier competence by 1 unit would increase the performance of state corporations by 0.903units.Unique contribution to theory, practice and policy: Based on the findings, the study recommended that suppliers should develop competent technical abilities so as to provide high quality products or services. Some of the technical dimensions that suppliers should develop competence in include; compliance with quantity, compliance with due date, compliance with packaging standard, production planning systems of suppliers, and maintenance activities of suppliers, plant layout and material. It’s also recommended that state corporations in Kenya should check frequently if supplier organisation is abreast with the newer information technology developments as technology is very dynamic and changes regularly as the technology that was used in the past is not the one we using now and it will not be the one we will use tomorrow.

IDENTIFYING THE ‘RIGHT’ SUPPLIER FOR MODULE DEVELOPMENTS — A CROSS-INDUSTRIAL CASE ANALYSIS

Relational view argues that buying companies should integrate supplier resources in new product development (NPD) projects to realise competitive advantages. Due to decoupling of modules and the associated opportunity to allocate development activities to upstream suppliers, modular product architectures are considered to be a driving factor for the integration of supplier resources. Module developments are associated with substantial investments, long-term orientation and risks across product families for the buying firm. Therefore, supplier integration for module development is highly critical. Regardless of the relevance, research has not yet analysed, which supplier competence are considered as antecedents for successful module developments with suppliers. To close the identified gap, this paper analysed case companies from the automotive, agriculture equipment and rail vehicle industry. Technical, organisational and relationship aspects are identified as critical success factors. The results contribute to theory by adding to relational view the finding that competences for successful collaborations differ in accordance to the level of interaction between suppliers and buying firms. Moreover, this study provides a model and an evaluation scheme that helps practitioners to allocate the best suitable development role to suppliers within module developments.

Effects of Supplier Evaluation on Procurement Performance of Public Universities in Kenya

This study sought to determine the effect of supplier evaluation on performance of procurement function of Public Universities. The Public Universities campuses in Kericho County were involved in the survey. To achieve the objective of the study, the researcher tested three hypotheses; supplier quality commitment does not have significant effect on performance of procurement functions of public universities campuses in Kericho County, financial stability of supplier does not have effect on the performance of procurement function of public universities campuses in Kericho County and supplier competence does not have significant effect on performance of procurement function of public universities campuses in Kericho County. This was a cross sectional survey study where data was collected in public universities campuses in Kericho County at a single point in time. Population of the study was the employees in the public universities’ campuses in Kericho County while the sample was selected employees in finance and procurement and accounts and finance departments. Data was collected through structured questionnaires that were administered through drop and pick technique. The collected data was analyzed through SPSS version 21. Mean and standard deviations were used to describe the variables in the study while regression analysis was conducted to determine the effect of supplier evaluation on performance of procurement function of the public universities campuses in Kerico County. The findings of the study revealed that suppliers’ quality commitment, suppliers’ financial capacity and suppliers’ competence have significant effect on performance of procurement of procurement function of public universities campuses in Kericho County individually with t=3.144; p=0.003, t=1.101; p=.046 and t=4.335; p=0.000 respectively and collectively with R-square value of 0.661. From the findings, the study recommends that experts who are knowledgeable and have expertise should be consulted in conducting supplier evaluation. Supplier evaluation criteria should focus on suppliers’ quality commitment, financial capacity and competence should be considered when awarding supply contracts to suppliers. The study suggests that a comparative study should be conducted to establish if there is difference in the effects of supplier evaluation on procurement performance between physical product organizations and service organizations. Further studies should be conducted to relate supplier evaluation and procurement performance in private universities in Kenya to establish whether there is any difference. Lastly, further study may also be conducted on the application of seven progressive steps of supplier evaluation.

Causes and outcomes of customer satisfaction in business-to-business markets relationship marketing in the South African cement manufacturing industry

Close relationships between cement manufacturers and their customers in business-to-business markets are becoming a necessity in today’s competitive markets. The literature search reveals that, three constructs of relationship marketing (trust, commitment and satisfaction) are the most studied and well known. This study contributes to the body of knowledge by adding two constructs (supplier competencies and communication) as vital causes to customer satisfaction and the outcome being customer loyalty and cooperation. The study produced a framework of dimensions of relationship marketing in the South African Cement Industry and its hoped will help marketing managers in the industry and related sectors in coming up with relationship marketing strategies that can go a long way in helping them retain, attract, satisfy, and achieve long-term profitable relationships for both the supplier and the customer. A judgemental sample of major cement customers (362) throughout South Africa’s nine provinces were contacted using face-to-face interview technique with self-administered questionnaires. The results support the conceptual model presented; supplier competencies, trust, commitment and communication have a positive association with satisfaction; and satisfaction, in turn, relates positively to all the two outcomes of cooperation and loyalty. It is recommended that a cement manufacturer must invest in strategies that enhance trust, communication, commitment and supplier competencies in order to satisfy its customers who will in turn contribute to customer cooperation and loyalty.

Municipal consultancy procurement: new roles and practices

The shift in municipal procurement of construction-related services from technical departments to central departments of procurement has significant impacts on the selection criteria and processes. These new roles and decision-making contexts (increased regulative complexity, stricter control and outsourcing of wider ranges of municipal services) are examined for how they shape procurement practices for architectural and engineering services in Swedish municipalities. Based on a critical theoretical review of policy implementation and inter-professional collaboration, the purchasing practices of five Swedish municipalities are examined and compared through case study interviews to understand the relationships and practices that occur between technical and procurement staff. Resource constraints and stricter control are found to lead to a strong preference, especially among technical staff, for simplified procurement models with a high emphasis on lowest price, whilst procurement staff favour more advanced methods for quality assessment. However, differences in knowledge and professional culture between the technical staff and procurement staff have created barriers to communication and competence integration. To develop a procurement practice that rewards supplier competence, clearer guidelines and changes to procurement roles within the client organization are needed, as well as increased resources. Procurement policies need to be more closely tied to their implementation.

Communicating Competency in References: A Qualitative Analysis of the Utilization of References in Mechanical Engineering

Purpose: The authors focused on the one-way, impersonal communication from a supplier to its potential customers via the reference pages on firm websites. To date, actual reference descriptions from supplier websites have only been examined by Jalkala and Salminen (2009). Extending Jalkala and Salminen's research approach, the authors additionally concentrated on the intended effects on potential customers by interviewing firm representatives. Approach: The study drew on qualitative research and had several goals. First, the authors explained the relevance of references to suppliers and (potential) customers by referring to transaction cost theory and correspondent inference theory. Second, based on empirical data from German mechanical engineering firms, they extracted different modes of presentation and the content schemes embedded therein by performing a content analysis. In addition, semistructured interviews with firm representatives were conducted to gain insights into the assumed effects of references. Third, based on the collected data, they established research propositions that incorporate prominent features of the reference descriptions and the assumed effects on customers. Findings: Suppliers mostly presented themselves as having high technological expertise. Product-related services appeared to be primarily stated as additional benefits that are linked to technological selling arguments. Findings suggest a positive impact of references on perceived supplier's competencies, when positive relationships with customers, a high number of references, industry-specific reference descriptions, or international references are presented on the firm's website. Same counts for the presence of large and prestigious customers on reference lists as well as for the presentation of more products from the downstream stages and the emphasis on customer benefits. Finally, the authors contrasted the results of the study with those of other recent studies and examined the implications for future research. The managerial implications of this research were discussed with respect to the design of references on the Internet and to reference behavior in general.

Path Creation: Co-creation of Heterogeneous Resources in the Emergence of the Danish Wind Turbine Cluster

This paper employs path creation as a lens to follow the emergence of the Danish wind turbine cluster. Supplier competencies, regulations, user preferences and a market for wind power did not pre-exist; all had to emerge in a tranformative manner involving multiple actors and artefacts. Competencies emerged through processes and mechanisms such as co-creation that implicated multiple learning processes. The process was not an orderly linear one as emergent contingencies influenced the learning processes. An implication is that public policy to catalyse clusters cannot be based on an assumption that linear learning dynamics will unfold.

Accessing Supplier Innovation By Being Their Preferred Customer

OVERVIEW:In the context of open innovation, firms increasingly rely on the collaboration of suppliers in their innovation processes. However, not all competent suppliers are willing to collaborate with all buyers, which is why achieving preferred customer status with key suppliers becomes important. This paper presents the results of a consortial benchmarking project that studied the supplier relationship management tactics of several best-practice firms. It identifies characteristics of suppliers who innovate well with their customers and emphasizes the importance of a firm establishing itself as an attractive customer as a prerequisite of successful buyer-supplier collaborations. This paper proposes additional sourcing criteria to identify innovative suppliers and introduces a supplier portfolio model based on customer attractiveness and supplier competence.

Globalisation and changes of aircraft manufacturing production/supply-chains – the case of China

The globalisation processes taking place in recent decades imply the functional integration of development, design and manufacturing. In many newly industrialising economies, such as China, one of the industries sought after is the high-technology aircraft industry. China has emerged as an important international supplier of components and parts, mainly due to the drive for market access and lower costs. This study shows that China’s integration into international supplier networks has continued since the middle of the 1990s. China has developed its supplier competence by moving into manufacturing of new parts but also new materials and technologies such as composite. Supply-chains are a main tool of transfer of knowledge and technology. Due to the shift towards more of integrated cooperation in design and manufacturing, the basic production-chain model in the modern aircraft industry differs from traditional basic product chains.

Dynamics of Value Chain Governance: Increasing Supplier Competence and Changing Power Relations in the Periphery of Automotive Production—Evidence from Bursa, Turkey

Adopting a global value chain (GVC) approach, this paper focuses on the ways in which global automotive transnational corporations coordinate their value chains with suppliers in the periphery of automotive production. In particular, it directs attention to particular forms of chain relations established by lead firms with suppliers in Turkey and the ways in which these chains are coordinated. Findings indicate that as component suppliers in the periphery of automotive production, such as those in Bursa, have gained the competencies not only to manufacture to the cost, quality and flexibility specifications required by their customers but also of design and product development, lead firms in the automotive industry have turned to modular value chains, where competent suppliers provide a range of services with less dependence on their customers, as a way of sourcing from these suppliers. I use this evidence to argue that GVC governance is dynamic and suppliers in the periphery have some room for breaking power asymmetries associated with specific modes of governance in GVCs.

Industrial brand value and relationship performance in business markets — A general structural equation model

This paper develops a general model of industrial brand value and relationship performance in business-to-business markets from the perspectives of consumer and industrial marketing literature. The structural equation model integrates the analysis of industrial brand value and relationship performance. The model describes the extent to which supplier–buyer transaction performance is influenced by the eight important factors: supplier competence, purchasing value, customer satisfaction, switching cost, brand trust and loyalty, relationship quality, commitment, and transactional performance. The general model is applied to organizational buyer groups of comprehensive industrial markets (Electronics, Chemicals, Equipment, etc). The analysis finds that supplier competence directly affects purchasing value and customer satisfaction, and via purchasing value and customer satisfaction, it indirectly affects commitment, switching cost, brand trust and loyalty. The managerial implications of the study results are also discussed.