Communication methods, information sharing, supplier development and performance

Abstract

Purpose -The purpose of this paper is to extend understanding of supplier development theory by investigating the relationships among communication methods, information sharing within a firm, information sharing between firms, and support aimed at supplier development and the effects these relationships have on firm performance. Design/methodology/approach -Data were collected from a random sample of 231 firms are used to test hypothesized relationships by employing structural equation modeling. Findings -The main findings indicate that traditional communication methods, information sharing within a firm, and information sharing between firms, and supplier development are significant factors for improving a buyer's performance though their indirect and direct effects on firm performance vary.Research limitations/implications -The model tested in this study should be reinvestigated by employing better developed measures of advanced communication methods. Furthermore, when investigating the relationship between supplier development and firm performance, future studies should include mode of supplier development approach -reactive versus proactive -as a variable. Practical implications -The findings of this study provide insights into what makes supplier development activities effective for practitioners. Originality/value -Although communication/information sharing has emerged in previously published studies as a critical factor in developing suppliers, an integrated research model that investigates the relationships among communication media, information sharing, supplier development activities, and buying firms' performance has not been offered. This is the gap filled by this study.

Supply Chain Management measurement and its influence on Operational Performance

“…While several studies found a positive relationship between SCM and performance (Carr & Kaynak, 2007;Chen, Paulraj, & Lado, 2004;Cousins & Menguc, 2006;Droge, Jayaram, & Vickery, 2004;Fynes, Voss, & Búrca, 2005;Gimenez & Ventura, 2005;Johnston, McCutcheon, Stuart, & Kerwood, 2004;Kaufmann & Carter, 2006;Narasimham & Das, 2001;Salvador, Forza, Rungtusanatham, & Choi, 2001;Shin et al, 2000;Vickery Jayaram, Droge, & Calantone, 2003;Wisner, 2003), others were not conclusive. Weak support for the impact of cooperation on flexibility and delivery (Fynes et al, 2005;Vereecke & Muylle, 2006) and of information sharing on overall operational performance (Krause, Handfield, & Tyler, 2007) are examples of conflicting results.…”

“…Main contribution, however, resides on the integrative model that tested SCM a multidimensional construct and the use of the competitive priorities literature to conceptualize dimensions of operational performance. Previous studies have only partially studied this relationship, as they tested the impact of SCM as an unidimensional construct on a multidimensional operational performance (Fynes et al, 2005;Shin et al, 2000) or the impact of the SCM on different competitive priorities (Carr & Kaynak, 2007;Droge et al,. 2004;Germain & Iyer, 2006;Vickery et al, 2003).…”

Recycling procurement strategies with variable yield suppliers

“…This is when the buying firm and supplier compare the reality to the expectations and share information with each other. Information sharing has been shown to be a significant factor in improving the buying firm's performance (Carr and Kaynak, 2007). Often times the buying firm will provide feedback in the form of a balanced scorecard (Kaplan and Norton, 1996) that include areas such as on-time delivery, quality, and other pertinent key metrics.…”

“…Within the procurement literature, communication and inter-organizational learning have been identified as key variables in successful buyersupplier relationships (Monczka et al, 1998;Dyer and Nobeoka, 2002;Carr et al, 2007;Krause et al, 2007). In addition, Krause (1997) specifically names communication as one of the three key "antecedents" for supplier development activities.…”

Inter-organizational information exchange, supply chain compliance and performance

“…Media modernity (Media) (Sources: Ambrose et al, 2008;Carr et al, 2007;Daft et al, 1984;Mohr et al, 1995) Media: In the last 12 months, the most modern media used to communicate with our most important customer / supplier is: 1: Face-to-face discussion or/and phone (traditional media).…”