The ambiguous impact of supplier
involvement in product
development on supplier
relationship resilience and
company performance
The ambiguous impact of supplier
involvement in product
development on supplier
relationship resilience and
company performance
Author(s): Grażyna KędziaSubject(s): Business Economy / Management, Socio-Economic Research
Published by: Akademia Leona Koźmińskiego
Keywords: Supplier-customer relationship; Joint product development; Supply chain resilience; Supply chain risk; Supply chain flexibility; Redundancy; Supplier integration;
Summary/Abstract: Purpose– I aimed to obtain a deeper insight into the link between supplier involvement in productdevelopment (SIPD), supplier relationship resilience and company performance.Design/methodology/approach– To collect data, a survey among 500 Polish manufacturing companieswas conducted. I used quantitative methods (structural equation modeling) to test several research hypothesesreferring to a single supplier–customer relationship. Thanks to the use of multi-construct measurement of SIPDand supplier relationship resilience, the study provides detailed research results on the topic.Findings– Collaborative practices implemented during SIPD increase procurement flexibility and decreaseredundancy in the relationship with the involved supplier. Communication during SIPD increases supplierflexibility and procurement flexibility. Increased supplier flexibility and increased procurement flexibility inthe relationship with the involved supplier as well as collaborative practices during SIPD positively impactcompany performance. I confirmed the indirect effect between communication during SIPD and companyperformance when the mediators are supplier flexibility and procurement flexibility. Decreased redundancy inrelationship with involved supplier does not impact company performance.Practical implications– Supply chain managers need to rethink SIPD practice to effectively ensure supplychain resilience (SCRES), especially in the face of the contemporary global crisis and black swans affecting thesupplier base. My article provides important managerial insights into drivers of SCRES and company performance.Originality/value– To the best of my knowledge, this research is among the first to conclude that SIPD doesnot have an unequivocally positive or direct impact on supplier relationship resilience. The research fills thegap by analyzing the impact of SIPD on two main SCRES elements. The study examines supplier relationshipresilience, understood as flexibility and redundancy elements, in a single supplier–buyer relationshipperspective. Thus, the presented considerations go beyond the traditional understanding of flexibility andredundancy in supplier relationship management, that is through the prism of double or multi sourcing andhaving back up-suppliers.
Journal: Central European Management Journal
- Issue Year: 32/2024
- Issue No: 2
- Page Range: 233-261
- Page Count: 29
- Language: English