Leveraging customer benevolence for resilience: a supplier perspective
International Journal of Physical Distribution & Logistics Management
ISSN: 0960-0035
Article publication date: 18 June 2019
Issue publication date: 30 August 2019
Abstract
Purpose
With more than half of customer-experienced disruptions attributed to first-tier suppliers, supplier resilience (SRES) is fundamental to the resilience of the supply chain. However, little is known about the relational aspects that engender SRES, from the purview of the supplier. The purpose of this paper is to examine the explanatory role of suppliers’ relationship commitment dimensions (i.e. affective and continuance), which may foster SRES through customer benevolence. Moreover, the impact of customer benevolence on SRES is examined considering varying levels of industry dynamism.
Design/methodology/approach
Survey data from 207 manufacturing firms are utilized to test the hypotheses taking potential endogeneity issues into consideration.
Findings
Affective and continuance commitment induce customer benevolence, which furthers SRES. Specifically, affective commitment is the most potent approach to induce customer benevolence, while the dampening effect of industry dynamism is more palpable at the higher levels of industry dynamism.
Research limitations/implications
This study did not account for specific disruption types and the contingent effects of power asymmetry.
Practical implications
This study empirically demonstrates that suppliers can leverage customer benevolence via relationship commitment to achieve SRES. However, the efficacy of customer benevolence to engender SRES is limited to environments not characterized by high levels of industry dynamism.
Originality/value
This paper highlights the role of relational mechanisms in achieving resilience from the purview of a supplier using survey data.
Keywords
Citation
Verghese, A., Koufteros, X. and Huo, B. (2019), "Leveraging customer benevolence for resilience: a supplier perspective", International Journal of Physical Distribution & Logistics Management, Vol. 49 No. 7, pp. 727-748. https://doi.org/10.1108/IJPDLM-06-2018-0217
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited