Impact of relational norms, supplier development and trust on supplier performance

Abstract

Supplier relationship management and supplier development initiatives assume a fundamental role in enterprise supply chain management. An important aspect of effective supplier relationship management is the role of trust. This paper seeks to understand whether supplier relationship management or supplier development initiative should be emphasized as a firm strives to achieve superior supplier performance. The analysis and discussion draws upon sourcing strategy literature and is based on empirical survey-data of mid to upper level managers with responsibility for supply management initiatives in their respective organizations in Denmark and in the USA. It examines the interrelationships among "relational norms", "trust", "supplier development initiatives" and ensuing "supplier performance". The data analysis shows that firms must emphasize relation and trust building activities before investing in supplier development initiative. Supplier perception audits must be routinely performed to gauge the level of trust and strength of relational norms.

Green supplier development: analytical evaluation using rough set theory

“…environmental performance assessment) or collaborative (offering technical assistance) (Klassen and Vachon, 2003). In the broader supplier development literature categories for supplier development programs include practice groupings such as trust building, financial investment, relational norms development, knowledge transfer, collaborative communication, bilateral management involvement, internal & external supplier integration, and socialization mechanisms (Narasimhan et al, 2008;Giannakis, 2008;Modi and Mabert, 2007;Lawson et al, 2009;Das et al, 2006).…”

“…Given the large number of potential green supplier development practices firms can adopt, it is reasonable to assume that not all firms can afford to incorporate all these practices, or to determine the 'locus of investment' easily for green supplier development practices (Narasimhan et al, 2008). Practically, a firm with limited resources would seek to prioritize the investments to be made in these green supplier development practices.…”

“…Much of this research is empirically based with a focus on general relationships between supplier development practices and performance (e.g. Krause et al, 1998;Narasimhan et al, 2008;Wagner and Krause, 2008).…”

“…One important purpose of such formal models is to aid organizations prioritize their investments in these programs to address the ''locus of investments'' for environmental supplier development initiatives (Narasimhan et al, 2008). All organizations have limited resources.…”

The Role of Agility in the Effect of Trust in Supply Chain on Firm Performance

“…Narayanan, Narasimhan, and Schoenherr (2015) have examined the effect of collaboration on agility performance via trust (Sriram Narayanan, 2015). Narasimhan, Mahapatra, and Arlbjørn (2008) searched that trust effect through supplier-buyer relationhsip's influence on supplier performance (Ram Narasimhan, 2008). …”