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Presentation
The Effect of Operations Strategy on Supplier-Customer Relationships and Suppliers' Financial Performance
20th North American Research/Teaching Symposium on Purchasing and Supply Management Conference Proceedings (2010)
  • Yoon Hee Kim, Georgia Southern University
  • Urban Wemmerl6v, University of Wisconsin
Abstract
In the last decade, there has been an enormous interest in the value of effective supply chain management practices to a firm’s success. The literature suggests that a move towards to a close customer-supplier relationship is mutually beneficial for both parties. Yet, the benefits of close supplier-manufacturer relationships accruing to supplier firms have not been well documented. In this study, we empirically assess the impact of close relationships between suppliers and customers on the financial performance of the supplier. Specifically, we are interested in whether and how a supplier’s strategic choices in the operations area affect its relationship with a customer and can help balance risks and rewards in the relationship. Cross-sectional data are collected by survey from suppliers in the manufacturing industry. The direct and mediated relationships among the operations strategies, the supplier-manufacturer relationships, and the financial performance of suppliers are tested using structural equation modeling.
Keywords
  • Operations strategy,
  • Supplier-customer relationships,
  • Supplier financial performance
Disciplines
Publication Date
March 12, 2010
Location
Tempe, AZ
Citation Information
Yoon Hee Kim and Urban Wemmerl6v. "The Effect of Operations Strategy on Supplier-Customer Relationships and Suppliers' Financial Performance" 20th North American Research/Teaching Symposium on Purchasing and Supply Management Conference Proceedings (2010)
Available at: http://works.bepress.com/yoon_h_kim/7/