Leveraging the potential of a technologically heterogeneous suppliers – a dynamic approach

Abstract

PurposeIn today’s turbulent environment, it is important that companies effectively leverage resources available both in-house and in their interorganizational ties. The purpose of this study is to focus on technology as a key resource and aims to analyse contextual factors of the relationship between the technological heterogeneity of suppliers and the buyer firm’s short- and long-term performance in a dynamic approach.Design/methodology/approachThis paper applies a mixed-method approach. The theoretical model has been developed based on extant literature, validated by a workshop with practitioners, and tested using structural equation modelling on a sample of 157 companies.FindingsSuppliers’ technological heterogeneity has a significant positive effect on both the buyer’s actual business performance and its research and development capability. Business performance captures the short term, while the long-term performance implications of heterogeneity are understood as a precondition for future, technology-based competitiveness. The results show that both short- and long-term consequences are mediated by the buyer’s supply chain management efforts (SCMEs), while the relationship between technological heterogeneity and these efforts is moderated by the buyer’s networking capability (NC).Research limitations/implicationsThis study provides the first evidence of potential long-term positive performance consequences of technologically heterogeneous suppliers. Additionally, it develops new insights into how the internal abilities of the focal firm might facilitate or hinder the positive implications of such heterogeneity. Specifically, the role of the buyer’s SCMEs and its NC is analysed. Industry-specific analyses offer new opportunities for future scholarship and future studies could extend research with other contextual factors.Practical implicationsManagers at different levels of the buyer firm should be aware of the organizational capabilities through which they can leverage the potential embedded in technologically heterogeneous suppliers. The results contribute to this understanding, which is especially important when a change in the environment (and the consequent changes in the level of technological heterogeneity) is constant.Originality/valueThis paper reflects on an important critique of the extant literature by applying a dynamic approach. Dynamization is twofold. Firstly, this study does not limit empirical analysis to short-term performance consequences. Secondly, this study discusses contextual factors that capture some aspects of the buyer’s ability to dynamically adapt to the changing environment. SCMEs align the supply chain of the buyer along customer requirements that change over time, while the NC is responsible for the ongoing reconfiguration of the supplier’s base.

Is past performance a guarantee for current results? The influence of learning on business performance in manufacturing

“…Like prior studies on operational capabilities development (Backstrand and Powell, 2021;Tortorella et al, 2020), our study points to the importance of intra-and inter-organisational learning mechanisms in manufacturing firms. However, unlike prior research on learning (Abdelaziz et al, 2023;Cheng et al, 2021;Gelei and Kenesei, 2022), our study shows how learning differs according to firms' level of business performance. While high-performance firms engage their supply chains in developing capabilities, low-performance firms align with customers only.…”

“…However, unlike prior research on learning (Abdelaziz et al, 2023;Cheng et al, 2021;Gelei and Kenesei, 2022), our study shows how learning differs according to firms' level of business performance. While high-performance firms engage their supply chains in developing capabilities, low-performance firms align with customers only.…”

“…, 2023; Cheng et al. , 2021; Gelei and Kenesei, 2022). Rather than relying solely on internal learning, the current literature emphasizes the importance of an external search for complementary resources to overcome internal limitations (Abdelaziz et al.…”

“…Operational capabilities represent a firm's specific abilities as shaped by the firm's historical development. Capabilities development involves supply chain learning (Abdelaziz et al, 2023;Cheng et al, 2021;Gelei and Kenesei, 2022). Rather than relying solely on internal learning, the current literature emphasizes the importance of an external search for complementary resources to overcome internal limitations (Abdelaziz et al, 2023;Cheng et al, 2021).…”

“…The manufacturing literature has introduced operational capabilities as a crucial concept (Sansone et al, 2020;Slack and Lewis, 2001;Wu et al, 2010) (Abdelaziz et al, 2023;Cheng et al, 2021;Gelei and Kenesei, 2022). Rather than relying solely on internal learning, the current literature emphasizes the importance of an external search for complementary resources to overcome internal limitations (Abdelaziz et al, 2023;Cheng et al, 2021).…”