OEM supplier impact on buyer competence development
Abstract
Purpose
The purpose of this paper is to examine whether original equipment manufacturing (OEM) suppliers can affect the development of buyer competence by manipulating two environmental factors: the development of competence in OEM supplier's external business relationships and the competitive pressure of the OEM supplier environment.
Design/methodology/approach
The sample population consisted of 1,000 OEM suppliers in the Taiwanese information technology (IT) industry. Partial least squares analysis was used to examine the causal relationships among the variables.
Findings
The empirical results revealed that the pressure of the external environment pushes OEM suppliers to develop competence through external business relationships. This competence in turn affects the development of buyer competence. Furthermore, OEM supplier impact on buyer competence development is positively associated with the importance of OEM supplier in outsourcing relationship.
Originality/value
The paper empirically examines whether the impacts of the OEM supplier derived from different sourced environments play distinct roles in the development of the OEM supplier's power.
Keywords
Acknowledgements
The authors would like to thank the National Science Council, Taiwan, for sponsoring this study under the project No. NSC 101-2410-H-128 –041.
Citation
Hsu Liu, F. (2014), "OEM supplier impact on buyer competence development", Journal of Strategy and Management, Vol. 7 No. 1, pp. 2-18. https://doi.org/10.1108/JSMA-10-2012-0056
Publisher
:Emerald Group Publishing Limited
Copyright © 2014, Emerald Group Publishing Limited