Buyer-supplier relationships play an important role in an organization's ability to respond to dynamic and unpredictable change. If the relationship is too restrictive, flexibility will be difficult to achieve and, if it is too lenient the risk of opportunism will be present. This paper provides a framework for understanding how buyer-supplier relationships have evolved over the past two decades from transaction processes based on arms-length agreements to collaborative processes based on trust and information sharing. To achieve this objective, buyer-supplier relationships are reviewed from the perspectives of transaction cost theory, strategy-structure theory and resource-based theory of the firm. Findings from early supply chain research are contrasted with the findings of more current research to provide a better understanding of how these relationships have changed. Current theory is extended by offering two proposals that test the influence of trust and information sharing and a third proposal that rejects the notion that supply chain alliances lead to monopolistic practices.
PurposeThe paper aims to develop the survey utilized in this research as a data collection tool for the study of organizational responsiveness.Design/methodology/approachDrawing from the operations and strategic management literature, measurement scales were developed in order to empirically test five proposed enablers of organizational responsiveness: environmental scanning, strategic planning, flexible manufacturing infrastructures, supply chain governance mechanisms, and multi‐skilled workers.FindingsThe survey produced a total of 66 responses from 59 companies in three industries: automotive suppliers, instrumentation equipment, and semiconductor components. Three of the five enablers were found to be bi‐dimensional, which produced a survey instrument with eight separate measurement scales. Coefficient alpha was observed to be within the acceptable range for all construct scales and factor analysis confirmed unidimensionality for each construct.Research limitations/implicationsThe survey instrument presented in this paper provides a better understanding of the processes that enable organizational responsiveness. This measurement scale will serve as a tool that will allow future researchers to more accurately operationalize the enablers of organizational responsiveness.Practical implicationsThe ability of firms to quickly respond to changes in their external environment is a primary determinant of firm performance. This research provides important practical implications for firms wishing to maximize their levels of agility and flexibility in responding to changing environmental conditions.Originality/valueFew measurement scales currently exist that can be utilized to measure and predict rates of organizational responsiveness. The survey instrument developed as part of this research provides important insights into various organizational factors that enable organizational responsiveness.
Presents a simulation model of the “Contract change process” for an aerospace manufacturing firm. The model was developed to simulate the activities from the time when a customer’s request is received to the two points in time where a preliminary schedule and a formal proposal is returned to the customer. The model was developed in a two‐stage approach. First, the process was studied and documented in US Air Force integrated computer aided manufacturing definition language for function modeling an IDEF0 model which defined the relationships between each pair of activities. Second, using the structural information provided by the IDEFo model, a simulation model using simulation language for alternative modeling (SLAMII) was developed. Data were obtained from archival sources in the department’s database. The data were analyzed according to the quarter in which they were received. From this, arrival time data distributions were estimated for each of the four quarters to capture the seasonality element in the company’s business. Next, the data were separated into three levels of difficulty to define complex, routine and simple tasks. From this, three distributions of activity times were developed for each set of tasks. The results will allow for the study of reengineering and downsizing decisions for the contract change process in the aerospace industry, under conditions of seasonal and task complexity variations.
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