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Article
Publication date: 30 May 2023

Honest F. Kimario and Alex R. Kira

The purpose of this study was to establish the cause-effect relationship between determinants of trust in the buyer–supplier integration and the procurement performance of large…

Abstract

Purpose

The purpose of this study was to establish the cause-effect relationship between determinants of trust in the buyer–supplier integration and the procurement performance of large manufacturing firms in Tanzania.

Design/methodology/approach

The study surveyed 52 firms from Temeke Municipality, Tanzania using questionnaire subjected to one procurement manager and one stores manager tallying a sample size of 104 respondents. Explanatory design was employed due to the presence of cause–effect relationship and the null hypotheses were tested using binary logistic regression technique at p values < 0.05 and ExpB > 1.

Findings

Mutual goals, geographical vicinity among partners, and supplier reliability are significant for the procurement performance of the manufacturing firms in Tanzania, whereas interpersonal and inter-organizational trusts and perceived buyers’ confidence are of no significant impact.

Research limitations/implications

Buyer–supplier integration is a recently embraced and paramount practice for the manufacturing firms in Tanzania. Therefore, longitudinal study would further add value. The presence of the causality from the tested hypothesis appeals for the necessity of progress tracking.

Practical implications

Causality has been established, and a framework has been developed for the performance of large manufacturing firms using trust of buyer–supplier integration.

Social implications

There shall be creation of more employment opportunities and timely availability of materials from large manufacturing firms in Tanzania.

Originality/value

Anchored on transaction cost economics and resource dependency theories, the study disclosed the root cause of procurement performance in the context of manufacturing firms in Tanzania whilst considering trust as a resource advantage of buyer–supplier integration.

Details

Journal of Global Operations and Strategic Sourcing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2398-5364

Keywords

Article
Publication date: 25 April 2023

Artur Swierczek and Natalia Szozda

This study aims to investigate how relational capital derived by the buyer and supplier from the buyer-LSP and supplier-LSP dyads affects buyer-supplier adaptability and their…

Abstract

Purpose

This study aims to investigate how relational capital derived by the buyer and supplier from the buyer-LSP and supplier-LSP dyads affects buyer-supplier adaptability and their relational performance.

Design/methodology/approach

Drawing upon the tenets of Social Capital Theory and Relational View, the authors performed exploratory research using a survey of 350 supply chain triads. Based on these data, the authors used Structural Equation Modeling to estimate the Higher Component Model (HCM) and test the research hypotheses.

Findings

The research results indicate that relational capital derived by the supplier from the supplier-LSP dyad has a strong and positive impact on buyer-supplier adaptability. On the other hand, relational capital derived by the buyer from the buyer-LSP dyad has no significant impact on buyer-supplier adaptability. The results also demonstrate that the effect of buyer-supplier adaptability on buyer-supplier relational performance is strong and positive. The obtained findings also suggest that buyer-supplier adaptability acts as a partial mediator between relational capital derived by buyer/supplier from the links with LSP and relational performance.

Research limitations/implications

The study has some limitations that guide directions for future research. First, along with relational capital, it might be worthwhile to also investigate the impact of structural and cognitive capital in supply chain triads to test whether and how these two dimensions of social capital contribute to buyer-supplier adaptability. It could be also interesting to include the LSP’s perception of relational capital in the model to shift the analysis from the organizational to the interorganizational level.

Originality/value

Given the increasing interest in complex structures of supply chains, this study investigates how one dyad affects other dyads in supply chain triads. Specifically, the study develops and empirically tests the construct of relational capital derived from the links with LSPs, and views adaptability as the result of two interacting parties.

Details

International Journal of Operations & Production Management, vol. 44 no. 1
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 23 May 2023

Honest F. Kimario and Leonada R. Mwagike

This study was steered to establish how buyer–supplier collaboration's commitment attributes serve as an antecedent for procurement performance in large manufacturing entities in…

Abstract

Purpose

This study was steered to establish how buyer–supplier collaboration's commitment attributes serve as an antecedent for procurement performance in large manufacturing entities in Tanzania.

Design/methodology/approach

A parallel, concurrent, mixed method was used in the study. Quantitatively, 52 firms were surveyed from Temeke Municipality, Tanzania, using questionnaire that specified 1 procurement manager and 1 store manager from those firms, totaling a sample size of 104 respondents. Qualitatively, expressive opinions to supplement the numeric data were gathered from supply chain managers using the saturation principle. Explanatory design analyzed the existing cause–effect relationship, and the null hypotheses were tested using binary logistic regression at p values < 0.05 and ExpB > 1.

Findings

Fidelity and enthusiasm to suggest improvements to suppliers and the duration of the collaboration antecede the procurement performance of the manufacturing firms in Tanzania, while devotion to invest resources and initiatives on joint problem solving have no significant impact.

Research limitations/implications

The causality between buyer–supplier collaboration and procurement performance has been revealed. Since there might be third party logistics in collaborations, future research should center on their moderating effect.

Practical implications

A framework has been developed for liberating procurement performance in the context of large manufacturing firms in Tanzania.

Originality/value

Based on Transaction Cost Economics and Resource Dependency Theories, the study revealed the root cause of procurement performance in the context of Tanzanian manufacturing firms, while also considering commitment to buyer–supplier collaboration as a prerequisit for the commendable target.

Details

Benchmarking: An International Journal, vol. 31 no. 2
Type: Research Article
ISSN: 1463-5771

Keywords

Open Access
Article
Publication date: 4 November 2022

Xun Li, Qun Wu, Thomas J. Goldsby and Clyde W. Holsapple

The purpose of this research is to investigate the causal mechanisms that explain the relationship between the long-term buyer–supplier relationship and buyer performance…

1394

Abstract

Purpose

The purpose of this research is to investigate the causal mechanisms that explain the relationship between the long-term buyer–supplier relationship and buyer performance. Building on the growing body of research on social capital in supply chain management (SCM), the authors examine how a buyer achieves superior performance in forming the enduring partnership with a supplier through two different forms of supplier embeddedness: buyer–supplier dyadic embeddedness and supplier external embeddedness.

Design/methodology/approach

The bootstrapping method is utilized in data analysis to examine the mediating effects of the two different forms of supplier embeddedness simultaneously on the linkage between the duration of buyer–supplier relationships and buyer performance outcomes.

Findings

The authors find that the two forms of supplier embeddedness serve as distinct conduits for the buyer to translate the long-term buyer–supplier relationship into performance effectiveness. Notably, dyadic embeddedness only mediates the linkage between the duration of buyer–supplier relationships and buyer economic performance, while supplier external embeddedness solely mediates the linkage between the duration of buyer–supplier relationships and buyer innovation performance.

Originality/value

This study empirically demonstrates that different forms of supplier embeddedness may benefit a buyer differentially when directed at distinct performance goals. If a buyer can leverage both buyer–supplier dyadic embeddedness and supplier external embeddedness, the buyer will overcome value creation limitations of social capital from a single source, obtaining more comprehensive performance benefits sought by developing long-term buyer–supplier relationships.

Details

European Journal of Management Studies, vol. 27 no. 3
Type: Research Article
ISSN: 2183-4172

Keywords

Article
Publication date: 3 December 2020

Zahra Seyedghorban, Dayna Simpson and Margaret Jekanyika Matanda

The purpose of this study is to explore the dynamics of trust creation in an early buyer–supplier relationship phase at the interpersonal level. The authors use a brand-based…

Abstract

Purpose

The purpose of this study is to explore the dynamics of trust creation in an early buyer–supplier relationship phase at the interpersonal level. The authors use a brand-based communication approach to investigate the trust–risk–commitment link.

Design/methodology/approach

Survey data from 204 senior managers in small and medium-size enterprises (SMEs) in Australia were collected and analyzed.

Findings

Results indicate that ability, credibility, benevolence and persona of supplier brand representatives (SBRs) relate significantly to a buyers’ trust in SBR, leading to diminished perceived risk, and increased relationship commitment between the parties. These findings support the importance of using individual representatives who are able to broadcast their supplier’s brand values, and increase trust in exploratory buyer–supplier relationships.

Research limitations/implications

This research focused on SMEs in Australia, investigating exploratory phase of the interpersonal relationships. Future research can investigate large firms interacting in different relationship phases in the light of brand-based communication.

Practical implications

The study describes several strategies for both buying and supplying firms to use, to best use brand-based communication as a means to build trust in the early phases of buyer–supplier relationships.

Originality/value

Prior research has focused on interorganizational trust and established or mature buyer–supplier relationships. This study investigates the initial phase of buyer–supplier relationships, and at the interpersonal exchange level. It also incorporates a role for brand-based communication in the buyer–supplier relationship which has received limited attention in the literature.

Details

Journal of Business & Industrial Marketing, vol. 36 no. 7
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 5 March 2021

Atif Saleem Butt, Syed Hamad Hassan Shah and Ahmad Bayiz Ahmad

The purpose of this paper is to explore how knowledge hiding affects buyer-supplier relationship performance in the supply chain.

Abstract

Purpose

The purpose of this paper is to explore how knowledge hiding affects buyer-supplier relationship performance in the supply chain.

Design/methodology/approach

This study uses a multiple case study methodology. Overall, 26 semi-structured interviews (13 dyadic interviews) with managers of buying and supplying firms (who have been a victim of knowledge hiding) were undertaken.

Findings

Based on comprehensive data analysis, results reveal seven factors that adversely affect buyer-supplier relationship performance (lack of trust, lack of cooperation and lack of commitment). In addition, results reveal that such factors reduced the firm’s business performance in terms of low-quality products, increased lead time and higher costs.

Research limitations/implications

This study has some limitations. First, the results of this study are not generalizable to a broader population. Second, this study explores behavioral patterns with respect to United Arab Emirates culture only.

Practical implications

Firms can use the findings from this study to understand how knowledge hiding in a buyer-supplier relationship adversely affects a buyer-supplier relationship performance.

Originality/value

A considerable weakness in buyer-supplier relationship literature is a need for a study examining how knowledge hiding harms buyer-supplier relationship performance in the supply chain. This paper addresses this gap.

Details

VINE Journal of Information and Knowledge Management Systems, vol. 53 no. 1
Type: Research Article
ISSN: 2059-5891

Keywords

Article
Publication date: 1 March 2012

Arthur Ahimbisibwe, Moses Muhwezi and Sudi Nangoli

This study sought to examine the extent to which outsourced contracts, buyer-supplier trust and supplier opportunistic behavior explain supplier performance in Ugandan Public…

Abstract

This study sought to examine the extent to which outsourced contracts, buyer-supplier trust and supplier opportunistic behavior explain supplier performance in Ugandan Public Procuring and Disposing Entities (PDEs). This study was prompted by reports of long lead times, failure to match specifications, late deliveries, poor quality of services delivered, contract violations, and increased supplier cheating. Cross sectional data from 116 central government PDEs concerning outsourced contracts was collected using a self-administered questionnaire. Hierarchical regression was used to indicate what happens to a model that was developed as part of this research as different predictor variables are introduced. The findings revealed that outsourced contracts, buyer-supplier trust, and supplier opportunistic behavior are significant predictors of supplier performance. The study has both managerial and policy implications which are discussed in this paper.

Details

Journal of Public Procurement, vol. 12 no. 4
Type: Research Article
ISSN: 1535-0118

Article
Publication date: 1 January 2012

Joseph Mpeera Ntayi

The purpose of this paper is to provide a multilevel investigation of the existence and relationship between severity of buyer‐supplier contractual conflicts, emotional outcomes…

Abstract

Purpose

The purpose of this paper is to provide a multilevel investigation of the existence and relationship between severity of buyer‐supplier contractual conflicts, emotional outcomes and disengagement behaviour arising out of the contractual disputes in Ugandan small to medium‐sized enterprises (SMEs).

Design/methodology/approach

This paper undertakes a large‐scale comprehensive survey covering 839 SMEs' buyers together with their corresponding suppliers using Krejcie and Morgan sample size determination criteria. Respondents were managers selected on the basis of their purchasing experience and knowledge of the subject matter under investigation. Data were subjected to a confirmatory factor analysis as a quasi‐judicial analytical approach to assess the goodness‐of‐fit of the latent structure underlying the constructs under investigation.

Findings

The results demonstrate that both the confirmatory factor analysis and the structural equation model have a good fit. The direct effects of the severity of buyer‐supplier conflicts and emotional outcomes of buyer‐supplier emotions taken together is significant and explains 37 per cent of the variance in buyer‐supplier disengagement.

Originality/value

The study predicts the emotional outcomes of buyer‐supplier conflicts which were thought to be idiosyncratic, and erratic. Their connection to organizational outcomes was considered convoluted.

Details

International Journal of Social Economics, vol. 39 no. 1/2
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 26 June 2009

J.O. Tantoush, F. Lettice and H.K. Chan

The purpose of this paper is to explore buyer‐supplier relationships in the Libyan oil industry during and following the sanction era. This paper, utilising four largely validated…

1046

Abstract

Purpose

The purpose of this paper is to explore buyer‐supplier relationships in the Libyan oil industry during and following the sanction era. This paper, utilising four largely validated critical relationship parameters, seeks to flag important buyer‐supplier relationship insights.

Design/methodology/approach

Desk research is undertaken to explore the selected themes of trust, co‐operation, commitment and communication, which are critical to effective dyadic buyer‐supplier relationships. Subsequently, in‐depth interviews were conducted with five key personnel of five Libyan oil companies to examine the impact of sanctions on the selected themes in relation to their buyer‐supplier relationships.

Findings

The results highlight interesting differentials between the two explored areas in relation to the four selected themes: trust, co‐operation, commitment and communication. The results indicate that there is a significant gap in understanding the impact of sanctions on the buyer‐supplier relationship.

Practical implications

This paper is of practical use to academics and practitioners who wish to understand the impact on and implications of sanctions on dyadic buyer‐supplier relationships in a developing country. It is also useful to government officials and the oil industry in gaining insights into the effects of sanctions on an economy with significant reliance on the oil industry.

Originality/value

There are extensive studies on the key themes of dyadic buyer‐supplier relationships. However, there is a gap in understanding the impact of sanctions on buyer‐supplier relationship behaviours. The findings in this paper therefore contribute to bridging this gap.

Details

International Journal of Energy Sector Management, vol. 3 no. 2
Type: Research Article
ISSN: 1750-6220

Keywords

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