Assessment of cultural fit between buyers and suppliers

Abstract

PurposeThe present study proposes a model to examine the cultural fit between buyers and suppliers for establishing synergies in their processes and practices.Design/methodology/approachThis study assessed buyers' culture through the Competing Values Framework and used Quality Management Practices Model as a proxy to assess suppliers' culture. The data from 262 paired respondents were used for this analysis. This survey was administered in India, using linear snowball-sampling technique. This study applied 3SLS regression for each culture group separately.FindingsThis study has instituted the cultural fit between the buyers' and suppliers' culture. It is observed that for getting synergies between cultures, buyers need to choose a set of suppliers which have similar cultural traits.Research limitations/implicationsThis study presents empirical findings based on data from Indian manufacturing firms. These findings need testing in other developing countries and other sectors.Practical implicationsOrganizations can formulate right policies for supplier selection based on the cultural fit between buyers and suppliers.Originality/valueWith increasing role of suppliers in the value chain, organizations around the world need to work with the right suppliers for gaining a sustainable competitive advantage. Selection of the right suppliers depends on the cultural fit between buyers and suppliers that, in turn, depends on the selection of the right suppliers based on the prevailing culture.

The Indirect Effect of Customer Relations on Lean Social Factors and Organizational Readiness for Change Amongst Manufacturing Smes in Nigeria: PLS-Sem Approach

“…Employee relations refer to the extent to which employees participate in various quality management activities (Patyal, Ambekar, Prakash, Roy, & Hiray, 2020). Employee relations refer to employees' participation in improving quality and performance (Uluskan et al, 2018).…”

“…Customer relationship management refers to the degree to which a firm continuously satisfies customer needs and expectations (Patyal et al, 2020). In the struggle for competitiveness, a business seeks to realize superior customer relations utilizing the least possible resources, making it mandatory for managers to define clearly the customer relations approach, grounded on a sound scientific validation, without ignoring their customer experience (Metz et al, 2020).…”

“…Collaboration between customers and manufacturers improves the value of information related to product demand and production preparation time, ensuring lead times are reduced and firms eradicate waste (Ariadi, Surachman, Sumiati, & Rohman, 2021). It is argued that firms should integrate top management commitment, customer relationship management, supplier relationship management, quality information and analysis, and process management in deploying Lean initiatives (Patyal et al, 2020). Strategic management of supplier-customer relationships has emerged as a critical consideration for actualizing superior market performance in scholarly and practitioner literature; hence, businesses must evaluate their investment decisions concerning supplier-customer processes (Nwachukwu & Hieu, 2021).…”

The Relation Among Business Process Orientation Practices in Influencing Organizational Performance

“…This connection is indicated by a cultural match between suppliers and customers [36] . This match exists because customers can choose suppliers with the same culture, and suppliers can learn the culture from customers to get a wider market share [37] . We hypothesized: H5 PD practice affects IT H7 SU practice affects IT H8 CU practices affect IT H9 SU practice affects CT H10 CU practice affects CT A study revealed that SV and PM impact companies in developing the Structure (ST) of the organization [38] .…”

“…Supplier practices (SU) in the model have a relationship with information technology (IT) [35] , culture (CT) [37] , and organization performance (PFM). Practices directly affected by suppliers (SU) are only information technology (IT) practices.…”