Supplier Relationship Practices Research Articles

The Interplay Between Supplier Management Practices and Customer Satisfaction: An Empirical Investigation of the Banking Industry in a Developing Country

The study aims to investigate the interplay among supplier quality management (SQM), supplier relationship practices (SRP), process management (PRM), and customer focus (CF) within the value chain of the banking industry in a developing country perspective and to identify how these factors influence customer satisfaction (CS). Empirical data have been collected through a structured questionnaire from 463 bank employees of a developing country using a nonprobability convenience sampling strategy. The study employs a structural equation modeling approach to analyze the relationship between endogenous and exogenous variables. The study finds that SRP, PRM, and CF have a significant positive influence over CS. It also highlights that SQM has a significant positive relationship with the SRP and PRM. The study reveals that PRM mediates the relationship partially between SQM & CF and SQM & CS. Further, CF mediates the relationship partially between PRM and CS, while SRP mediates the relationship partially between SQM and CS. The findings of this research provide valuable insight into the stakeholders associated with the banking sector and policymakers regarding the importance of supplier management practices, particularly enabling the banks of emerging economies to understand the influence of SQM and SRP on guiding PRM, CF, and CS. The study only focuses on one developing country perspective and one specific industry, which may limit the generalizability of the findings to other contexts. Future research could expand the scope to include multiple developing countries and industries to validate the findings and investigate the moderating effect of contextual factors on the relationships between SQM, SRP, PRM, CF, and CS.

Exploring early purchasing involvement in discontinuous innovation: A dynamic capability perspective

This paper aims to address the gap concerning our knowledge about early purchasing's involvement (EPI) in new product development (NPD) projects in contexts characterized by discontinuous innovation. We adopt a dynamic capability perspective to explore how existing sourcing and supplier relationship management capabilities are adapted when purchasing agents become involved in discontinuous innovations projects. We use an embedded case-study approach to study four NPD projects in a heating, ventilation, and air conditioning (HVAC) company. The case studies are based on interviews with managers and staff from the research and development, purchasing, and marketing departments, as well as suppliers involved in the projects. Our empirical findings capture emerging purchasing practices including a “reversed” sourcing process, purchasing-marketing interaction, and the coordination of “a learning atmosphere” between the R&D department and suppliers through proactive innovation meetings and creativity workshops. We derive propositions to conduct further research into the role of the purchasing department in times of discontinuous innovation. We also provide a framework of sourcing and supplier-relationship practices that firms can use when embarking on discontinuous innovation.

Strategies for Buyer Supplier Relationship Improvement: Scale Development and Validation

It is not possible for an Own Equipment Manufacturer to manufacture all components in house, due to which need of out sourcing of some components/process to supplier base occurs. For being competitive in market supplier base of buyer should be self-efficient and developed one. This development of supplier can be achieved by implementing different supplier development practices as per the requirement. Now days along with supplier development, relationship improvement between buyer and supplier plays a vital role for taking competitive advantages. In this article a frame work of achieving buyer supplier relationship improvement through development of a supplier is discussed and scale required for measuring all construct is being validated. To examine the impact of buyer supplier relationship improvement through supplier development practices and buyer supplier relationship practices, a survey was conducted for manufacturing companies mainly including Auto Ancillaries, Engine Manufactures, Generator Manufactures and Machine Tool Manufactures. Researcher approached 628 respondents, out of which 536 respondents showed interest to response, data from 512 respondents were used as 24 respondents filled information incompletely. Reliability Analysis, Exploratory Factor Analysis (EFA) and Confirmatory Factor Analysis (CFA) are applied for reliability and validity of scale with use of SPSS and AMOS software. The multi-item scale shows strong evidence of reliability and validity.

Structural Equation Modelling of Determinants of Buyer–Supplier Relationship Improvement Strategies: Case of Indian Manufacturing Firms

Recently, many organisations have recognised that development of supplier and buyer relationship improvement is becoming necessary to establish strong and mutually beneficial long-term relationships in improving performance across the supply chain, generating greater cost efficiency and enabling the business to grow and develop. The current study proposes a framework for buyer–supplier relationship improvement (BSRI) strategy and tests the same using structural equation modelling (SEM). Result indicates that BSRI can be improved under the condition of supplier development practices (SDP) and buyer–supplier relationship practices (BSRP). SDP are further driven by productive measure (PM) and competitive pressure (CP), whereas the impact of customer uncertainty (CU) turned out insignificant. The study results demonstrate that profitability (PR) can be improved by achieving competitive advantages (CA) through BSRI. CA includes operational effectiveness, innovation (INV), technology adaption (TAD) and risk minimisation (RIM). A survey response of 512 different manufacturing firms of India was used for data analysis. Initially, exploratory factor analysis (EFA) is performed for exploring the factor followed by confirmatory factor analysis (CFA), for confirmation and construct validity. Findings from the study revealed that linking of SDP with BSRI is necessary from buyer side along with consideration of supplier’s perspective to achieve CA, which will lead towards enhanced PR.

Green strategy, supplier relationship building and supply chain performance: total interpretive structural modelling approach

Green supply chain strategy is a concept that is gaining popularity rapidly in South African region. For many organisations, it is a process to exhibit their sincere commitment to sustainability. This paper endeavours to examine the critical green and supplier relationship practices on which management should focus in order to enhance supply chain performance. The systematic analysis based on total interpretive structural modelling is a better methodology to identify the inter-relationships among green strategy and supplier relationship practices. The approach extends the domain of green supply chain research and produce theories that have greater explanatory power than the current practices.

A structural equation modelling approach for buyer supplier relationship development strategies: Indian Manufacturing Context

The relationship practices play a vital role in Buyer Supplier Relationship Improvement (BSRI). These improved relationships are characterized by a long term commitment, shared common goals, two-way information sharing and a high level of trust. For development of supplier, buyer should go for different Supplier Development Practices (SDP). SDP, with Buyer Supplier Relationship Practices (BSRP), leads to BSRI. Competitive Advantages (CA) to survive in the market can be achieved through BSRI and CA leads to profitability. Researcher made a survey of512 respondents, from 114 manufacturing firms. Hypotheses were tested by structural equation modelling. For the analysis, AMOS and SPSS software were used.

Critical Success Factors for Supplier Development and Buyer Supplier Relationship

Development of supplier base is becoming mandatory for buyers, as it is not possible to manufacture all components in house, or to search new supplier every time. It is recommended that supplier base of buyer should be self-efficient and developed one to achieve competitive advantages. This development of supplier can be achieved by applying different supplier development practices and buyer supplier relationship practices as per the requirement. In this article, Exploratory Factor analysis (EFA) is applied for grouping the critical success factors with their items by using SPSS software. 6 factors viz., Drivers for Supplier Development Practices, Supplier Development Practices, Buyer supplier Relationship Practices, Buyer supplier Relationship Improvement, Competitive Advantages and Profitability were formed with their respective items. The multi-item scale shows strong evidence of reliability as well as convergent, discriminant validity in a sample. EFA and Reliability Analysis were applied on data for validation of instrument. Data from 87 respondents working in manufacturing sector were used for analysis.

Strategic buyer-supplier relationship improvement: development of constructs and measurement

Buyer-supplier relationship improvement has become a potentially valuable way of securing competitive advantages and improving organisational performance. The current study aims to develop a reliable and valid measurement scale of buyer-supplier relationship improvement leading to competitive advantages. It discusses a framework for buyer-supplier relationship improvement strategy with focus on development and validation of constructs for the same. The study presents the key items that could be considered for respective constructs viz., drivers for supplier development, supplier development practices, buyer-supplier relationship practices, buyer-supplier relationship improvement, competitive advantages and profitability. To examine the impact of supplier development and buyer supplier relationship practices, a survey of 512 Indian manufacturing companies was conducted. The statistical analysis through successive stages of measurement analysis and refinement provided strong evidence of reliability, factor analysis as well as convergent, discriminant validity of the constructs. Thus, the study provides reliable and valid measures for each construct.

The supplier relationship practices of travel agencies in the Western Cape Province - What is the status quo?

Purpose: The purpose of the article is to explore the supplier relationship practices of travel agencies in the Western Cape province. The article wants to establish the current supplier relationship practices of travel agencies in the province and to identify limitations in supplier market relationships which might exist in the industry. Problem investigated: Relationships are the basis on which trade in the travel industry is built (George, 2006:224). The establishment and management of these relationships must be to the advantage of all parties in the relationship (Swart, 2003:120). Townes (2007) indicated that the current level of relationships that exists between travel agencies and their suppliers, especially the South African Airways (SAA), the Protea and Southern Sun hotel groups and motor vehicle rental companies such as AVIS is fragmented and negatively impairs on the ability of travel agents to deliver a quality service to their customers. To improve their overall level of service delivery to both corporate and leisure customers, it is important for travel agencies to know and understand the current level of their relationships with suppliers. It is against this background that the research was undertaken. Methodology: The target population for this study was 118 travel agencies of which 61 managers and/or owners participated through personal interviews in the completion of questionnaires. Data analysis was done by calculating averages and standard deviations, Explorative Factor Analysis (EFA), Cronbach Alpha-values and practical significance by means of effect sizes. Findings: The owners and managers of travel agencies are of the opinion that the strengthening of their existing relationships with suppliers must be prioritised. More emphasis should be placed on the strengthening of existing communication channels between travel agencies and their suppliers to secure the faster resolution of queries and complaints and to enhance the sharing of information, skills and knowledge between the two parties. The results further indicated that the development of long term relationships with suppliers are important for the future existence of the travel agency industry in the Western Cape. The establishment of these relationships must, however, be to the advantage of both parties in the relationship Conclusion: Travel agencies and their suppliers should work in collaboration to improve their service delivery to customers by sharing information on product development, marketing and promotional strategies as well as future distribution initiatives. It is also important that both travel agencies and their suppliers should believe in the long term value of establishing a relationship with each other. It is for this reason that trust and commitment are prerequisites for the establishment of such a relationship.

A supply chain perspective on the supplier relationship practices of travel agencies in Gauteng

The purpose of the paper is to explore the supplier relationship practices of travel agencies in Gauteng. Gerber (2008) indicated that the current level of relationships that exists between travel agencies and their suppliers in Gauteng are fragmented and impact negatively on the ability of travel agents to deliver a quality service to their customers. It is against this background that the research was undertaken. The target population for this study was 228 travel agencies of which 134 managers and/or owners participated through personal interviews in the completion of questionnaires. The results indicate that the owners and managers of travel agencies are of the opinion that the level of trust between themselves and their suppliers needs to be strengthened. The stimulation of open channel communication between themselves and their suppliers could enhance the strengthening of a long-term relationship between the parties.

Changing supplier selection and relationship practices: a contagion process

Purchasing managers offer different opinions when asked which are the driving forces from the situational environment that determine the organisation of the purchasing function. Their opinions of the supplier selection process and criteria to be used also differ. All these are explained by differences in (1) their personal past trajectory through various networks, determining their personal interpretation of the real world; (2) their position in the present company, described as the negotiated social order; (3) the company's world-view on ‘how things have to be done, including purchasing’: the socially negotiated order. These aspects are part of a process of contagion and determine the nature of the actual supplier relations.