Factors influencing swift and effective resolution of supplier problems

Abstract

Purpose

How might an organization swiftly resolve supplier problems such that the issue does not reoccur? The purpose of this study seeks to understand the impact of different knowledge-sharing routines on measures of effective problem resolution.

Design/methodology/approach

Data are collected from an automotive manufacturer's (buyer) database. A hierarchical linear model analyzes dyadic data collected from 155 problems across 24 suppliers.

Findings

This study reveals that different ways of communicating have differing impact on measures of effective problem-solving. Communication involving face-to-face interaction slows the process, whereas frequent communication can lead to swift resolution. Furthermore, management teams are more likely to lead to a “better” fix in that these teams are more likely to implement changes in the process or product.

Research limitations/implications

The data are for a tier-one automotive supplier. Hence, the findings are limited by the extent to which other organizations may differ.

Practical implications

The results provide insights for managers experiencing supply issues. Some forms of communication should be encouraged as they enhance the process. Moreover, the findings suggest there are consequences to pressuring a supplier to resolve a complaint quickly.

Originality/value

Very few researchers can claim to have investigated observed collaborative mechanisms that occur between a buyer and its suppliers when resolving a problem. This research adds to the literature on the relational view theory as it applies to supply chain management and problem resolution.

Citation

Clemons, R., Baddam, S.R. and Henry, R.M. (2021), "Factors influencing swift and effective resolution of supplier problems", International Journal of Productivity and Performance Management, Vol. 70 No. 3, pp. 526-543. https://doi.org/10.1108/IJPPM-05-2019-0247