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A contingent theory of supplier management initiatives: Effects of competitive intensity and product life cycle
Author(s) -
Mahapatra Santosh K.,
Das Ajay,
Narasimhan Ram
Publication year - 2012
Publication title -
journal of operations management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.649
H-Index - 191
eISSN - 1873-1317
pISSN - 0272-6963
DOI - 10.1016/j.jom.2012.03.004
Subject(s) - business , supplier relationship management , product lifecycle , new product development , opportunism , context (archaeology) , competitive advantage , maturity (psychological) , industrial organization , process management , moderation , product (mathematics) , marketing , relational view , supply chain management , supply chain , economics , computer science , market economy , psychology , paleontology , developmental psychology , geometry , mathematics , machine learning , biology
Direct investments in supplier development and close relationship building are the two major collaborative supplier management strategies for developing and accessing superior supplier capability. The impact of these two strategies, however, has not been uniform across firms, calling for a deeper examination of their relative effectiveness. Utilizing multiple theoretical frameworks, this study examines the relevance and effectiveness of the two collaborative strategies across the growth and maturity stages of the product life cycle (PLC). Specifically, the study analyzes the influence of competitive intensity as an antecedent to supplier development and relational initiatives, and the role of product life cycle as a moderator of the inter‐relationships among competitive intensity, supplier development, relational initiatives, and supplier capability. Based on primary survey data, and discussion with practicing managers, the study finds that the individual and integrative effectiveness of supplier development investments (SDI) and relational orientation (RO) can be influenced differently by competitive intensity and PLC stage. In particular, RO can have a foundational role in motivating SDI for superior supplier capability, as also in safeguarding against supplier opportunism in the standardized product market context of the maturity stage. The managerial and theoretical implications of varied emphasis on the two collaborative supplier management strategies across the PLC stages are discussed.