The Effect of Supplier-Buyer Relationship Practices on the Performance of Motor Vehicle Assembly Companies in Kenya
DOI:
https://doi.org/10.47672/ajscm.1254Keywords:
Supplier-buyer relationship practices, Organizational performance, Relational contracting supply chain, multi-sourcing, Motor vehicle assembly companiesAbstract
Purpose: The study investigated the effect of supplier –buyer relationship practices on the performance of motor vehicle assembly companies in Kenya.
Methodology: This study was guided by relational contracting supply chain theory. The study applied a cross-sectional exploratory descriptive conclusive survey research design with a mixed approach of qualitative and quantitative research. Primary data was derived using questionnaires, supported by secondary data as the main instrument for collecting data based on a five point Likert scale on 24 motor vehicle assembly companies in Kenya using non probability sampling. Exploratory factor analysis, analysis of mean, model summary, ANOVA, and hierarchical regression were applied in analyzing data.
Findings: The study established that supplier-buyer relationship practices have no significant effect on organizational performance of motor vehicle assembly companies in Kenya.
Recommendation: This established that supplier-buyer relationship practices of strategic alliances, partnering, contracts, collaborations, and capability insignificantly explain the performance of motor vehicle assembly companies in Kenya.
Downloads
References
Asbeh Nuaman., & Lerner Boaz. (2016). Learning latent variable models by pairwise cluster comparison Part II−algorithm and evaluation, Journal of machine learning research, vol.17 (2016) Pp.1-45
Awan Usama, Kraslawski Andrzej, Huiskonen Janne., & Liu Shaofeng.(2018). Buyer-supplier relationship on social sustainability: Moderation analysis of cultural intelligence,Cogent business & management journal, vol.5, no.1, DOI:https://doi.org/10.1080/23311975.2018.1429346
Ayiro Laban P. (2021). A functional approach to educational research methods and statistics: Qualitative, quantitative, and mixed methods approaches, Edwin Mellen Pr, ISBN- 13: 978-0773429017, ISBN-10: 0773429018
Beauducel A., & Hilger N . (2019). Score predictor factor analysis: Reproducing observed covariances utilizing factor score predictors. Front. Psychol. 10:1895, DOI:https://doi.org/10.3389/fpsyg.2019.01895
Bhattacharya, Shantanu; Gupta, Alok.,& Hasija, Sameer. Single sourcing versus Multi-sourcing: The roles of output verifiability on task modularity. (2018). MIS Quarterly. Vol.42, no. 4, Pp. 1171-1186. Research Collection Lee Kong Chian School Of Business. DOI: https://ink.library.smu.edu.sg/lkcsb_research/6399.
Black Anthony, Black Brian.,& McLennan Thomas. (2017). Africa’s automotive industry: potential and challenges: The high 5, working paper series, no.282, September, 2017, African development bank group, DOI:https://doi.org/www.pwc.com/ke/cn/industries/automotive.jhtml
Bomett Miriam, Wambua Jackson & Chebet Faith. (2020). Kenya automotive sector profile-2020, Kenya association of manufacturers
Botes. A., Niemann.W.,& Kotzé T.(2017). Buyer-supplier collaboration and supply chain resilience: A case study in the petrochemical industry, South African Journal of industrial engineering December 2017, vol.28, no.4, Pp.183-199, DOI:http://dx.doi.org/10.7166/28-4-1736
Braeken, J., & Van Assen, M. A. (2017). An empirical Kaiser criterion. Psychological methods, vol.22, no.3, Pp.450–466. DOI:https://doi.org/10.1037/met0000074
Cabral Sandro, Ribeiro Priscila Fernandes & Romão Sanders Zurdo. (2020). Determinants of contract renewals in business-business relationships, RAUSP management journal, vol. 55,no. 4, 2020 Pp.473-489, Emerald publishing limited,25310488, DOI:https://doi.org/10.1108/RAUSP-04-2019-0057
Chae, S., Choi, T.Y., & Hur, D. (2017).Buyer power and supplier relationship commitment: a cognitive evaluation theory perspective, Journal of supply chain management, vol. 53,no. 2, Pp. 39-60.
Charterina, J., Landeta, J., & Basterretxea, I. (2018). Mediation effects of trust and contracts on knowledge-sharing and product innovation: Evidence from the European machine tool industry, European journal of innovation management, vol.21, no.2, Pp.274-293, DOI: https://doi.org/10.1108/EJIM-03-2017-0030
Chicksand, D., & Rehme, J., (2018), Total value in business relationships: Exploring the link between power and value appropriation, The journal of business & industrial marketing, vol.33, no.2, Pp.174-182,DOI:https://doi.org/10.1108/JBIM-05-2016-0100
Chopra Sunil.,& Meindl Peter.(2016).Supply chain management: strategy, planning, and operation, (6th ed), Pearson Prentice Hall
Creswell., & Clark (2017) Research design: Qualitative, quantitative and mixed methods approach, (4th ed), Sage Publications, Inc
Dal Ponte, J., Charterina, J., & Basterretxea, I. (2017). Automaker-supplier relationships and new product development in the truck industry: The case of Volvo do Brazil, Int. J. automotive technology and management, vol. 17, no. 1, Pp.96–116. DOI:https://doi:10.1054/ijatm.2017.10003113
Dudovskiy John. (2018). The ultimate guide to writing a dissertation in business studies: A step- by-step assistance, Rajendra, New Dehli, India, e-book
Dyer, J.H., Singh, H., & Hesterly, W.S. (2018). The relational view revisited: a dynamic perspective on value creation and value capture, Strategic management, journal, vol. 39,no. 12, Pp. 3140-3162.
Ghadge, A., Dani, S., Ojha, R., & Caldwell, N. (2017).Using risk-sharing contracts for supply chain risk mitigation: A buyer-supplier power and dependence perspective’, Computers and industrial engineering, vol. 103, Pp.262–270,DOI: https://doi.org/10.1016/j.cie.2016.11.034
Goretzko, D., Pham, T.T.H., & Bühner, M. (2019). Exploratory factor analysis: Current use, methodological developments and recommendations for good practice. Current psychology (2019),DOI:https://doi.org/10.1007/s12144-019-00300-2
Gujarati Damodar, N., Porter Dawn C., & Gunasekar Sangeetha. (2017). Basic econometrics, (5th ed), Tata McGraw-Hill Education Pvt. ltd
Gurcaylilar-Yenidogan Tugba. (2014). A multidimensional typology of automaker-supplier relationships: The knowledge sharing dilemma, International journal of automotive technology and management, vol. 14, no.1, Pp.1- 24 • January 2014
Hardle Wolfgang Karl., & Simar Leopold. (2015). Applied multivariate statistical analysis, (4th ed.), NY, London, Springer
Huo, B., Tian, M., Tian, Y., & Zhang, Q. (2019).The dilemma of inter-organizational relationships: Dependence, use of power and their impacts on opportunism, International journal of operations & production management, vol. 39,no. 1, Pp. 2-23
Jääskeläinen, A., & Thitz, O. (2018). Prerequisites for performance measurement supporting purchaser-supplier collaboration, Benchmarking: An international journal, vol. 25, no. 1, Pp.120-137. DOI:https://doi.org/10.1108/BIJ-08-2016-0121
Joshi Sarang P, Shitole Pankaj, Chavan Rajendra & Joshi Sarang P P.(2018). Strategies for buyer- supplier relationship improvement: Scale development and validation, Procedia manufacturing, vol.20 (2018), Pp.470–476, 2nd International conference on materials manufacturing and design engineering available online at www.sciencedirect.com
Kahiya, E.T., & Butler, P. (2021). Forget it, let’s go with a handshake: Contracting practices of exporting small to medium-size enterprises (SMEs), Journal of business & industrial marketing, vol. ahead-of-print No. ahead-of-print, DOI: https://doi.org/10.1108/JBIM-05-2020-0246
Kılıç, A.F., & Uysal, İ., (2019). Comparison of factor retention methods on binary data: A simulation study. Turkish Journal of education, vol.8, no.3, Pp.160-179,DOI:https://doi.org/:10.19128/turje.518636
Kim J H. (2019). Multicollinearity and misleading statistical results, Korean j Anaesthesiol.2019;72 (6):Pp.558–569,DOI: https://doi.org/:10.4097/kja.19087
Kissell Robert.,& Poserina Jim. (2017). Optimal sports math, statistics, and fantasy, London, Academic Press, ISBN: 9780128052938 0128052937
Kotlarsky J., Willcocks L.P., & Oshri I. (Eds.) (2011). Global sourcing 2011, LNBIP 91, Pp. 1– 20, 2011. Springer-Verlag Berlin Heidelberg 2011
Kotler Philip T.,& Armstrong Gary. (2018). Principles of marketing, (17th ed.), Pearson publishers, ISBN-13: 9780134642321
Koyuncu İlhan., & Kılıç Abdullah Faruk. (2019). The use of exploratory and confirmatory factor analyses: A document analysis, Education and science, vol 44 (2019), no. 198, Pp. 361- 388
Krancher, Oliver., & Stürmer, Matthias. (2018). Explaining multi-sourcing decisions in application outsourcing, 26th European conference on information systems (ECIS2018), Portsmouth, UK, 2018
Lee Ja Yeon., & Woo Su Han. (2019).The Impact of power on the relationships and customer satisfaction in a logistics Triad: A meta-analysis, The Asian journal of shipping and logistics, vol.35, no.4, Pp.194-199, DOI:https://doi.org/10.1016/j.ajsl.2019.12.006
Liu, D., Bao, Y., & Wang, G. (2021). Unpacking the relationship between formal contracts and alliance innovation performance: the role of relationship learning and guanxi, Journal of business & industrial marketing, vol. ahead-of-print no. ahead-of- print, DOI:https://doi.org/10.1108/JBIM-09-2018-0274
Loehlin John. C., & Beaujin Alexander. A. (2017). Latent variable models. An introduction to factor, path and structural equation analysis (5th ed), Taylor and Francis Group
Lorenzo-Seva, U., & Van Ginkel, J. R. (2016). Multiple imputations of missing values in exploratory factor analysis of multidimensional scales: Estimating latent trait scores. Anales De Psicología/Annals of Psychology, vol.32, no.2, Pp.596-608, DOI:https://doi.org/10.6018/analesps.32.2.215161
Lumineau, F. (2017). How contracts influence trust and distrust. Journal of management, vol.43, Pp.1553-1577. Google Scholar | SAGE Journals | ISI
Lüttgens, Dirk., & Kathleen Diener. (2016). Business model patterns used as a tool for creating (new) innovative business models. Journal of business models vol.4, Pp.19–36
Maskey Reenu, Fei Jiangang & Nguyen Hong-Oanh. (2018). Use of exploratory factor analysis in maritime research, The Asian journal of shipping and logistics, vol. 34, no.2, Pp. 091-111: www .elsevier.com/locate/ajsl
Mesquita Luiz F, Ragozzino Roberto.,& Reuer Jeffrey J. (2017). Collaborative strategy: Critical issues for alliances and networks, Edward Elgar publishing ltd
Mocke, K., Niemann, W., & Kotzé, T. (2016). The role of personal relationships between buyers and suppliers of third-party logistics services: A South African perspective, Acta commercial, vol.16, no.1, Pp.1-13. DOI:https://doi.org/10.4102/ac.v16i1.367
Mohanad Ali Kareem & Harsha Vardhan Reddy Kummitha. (2020). The impact of supply chain dynamic capabilities on operational performance, Organizacija, vol. 53, Issue 4, November 2020,DOI:http://doi.org/ 10.2478/orga-2020-0021
Morgan Susan, Reichert Tom., & Harrison Tyler R. (2016).From numbers to words: Reporting statistical results for the social sciences, Routledge, DOI:https://doi.org/10.4324/9781315638010
Morsy Hebatollah Mohamed.(2017).Buyer-supplier relationships and power position: Interchaning, international journal of supply and operations management, volume 4, Issue 1, Pp.33- 52, ISSN-Print: 2383-1359, IJSOM, February 2017,ISSN-Online:2383- 2525. DOI:http:// dx.doi.org/www.ijsom.com
Oshri, I. (2011). Offshoring strategies: Evolving captive centre models. The MIT Press, Cambridge (2011)
Paul, M., Darkow, I. L., & Kotzab, H. (2017). Coordination of automotive supplier networks: Different approaches towards utilizing power and trust as coordination mechanisms. In supply management research, Pp.161-184. Springer Fachmedien Wiesbaden
Pfanelo Nematatane. (2017). Supply chain partnership, collaboration, integration and relationship commitment as predictors of supply chain performance in South African SMEs, Business & social science journal (BSSJ), vol.2, no.1, Pp.134–68(P-ISSN:2518-4598; E-ISSN:4518- 4555), January 2017
Pituch Keenan A., & Stevens James P. (2016). Applied multivariate statistics for the Social sciences analyses with SAS and IBM‘s SPSS (6th ed), Routledge Publishers
Polater, A. (2021). Dynamic capabilities in humanitarian supply chain management: a systematic literature review, Journal of humanitarian logistics and supply chain management, vol. 11, no.1, Pp.46-80, DOI:https://doi.org/10.1108/JHLSCM-10-2020-0089
Rood, C., Van den Berg, D., Niemann, W., & Meyer, A. (2018). The role of personal relationships in supply chain disruptions: Perspectives from buyers and suppliers of logistics services, Acta commercial, vol. 18, no.1, a608, DOI:https://doi.org/10.4102/ac.v18i1.608
Ryan Gemma, (2018). Introduction to positivism, interpretivism and critical theory. Nurse Researcher, vol. 25, no.4, Pp. 41–49.
Şahin Ezgi, Çemberci Murat, Mustafa Emre Civelek.,& Uca Nagehan.(2017). The role of agility in the effect of trust in the supply chain on firm performance, Management studies, July-Aug. 2017, vol.5, no.4, Pp.336-345,DOI:https://dx.doi.org/:10.17265/2328- 2185/2017.04.008
Saunders Mark, Lewis Philip.,& Thornhill Adrian. (2016). Research methods for business students, (7th ed), L.E.G.O. S.p.A
Schumacker, R. E., & Lomax, R. G. (2015). A Beginner’s guide to structural equation modeling (4th ed.), Routledge.
Scuotto Veronica, CaputoFrancesco,Villasalero Manuel., & Del Giudice Manlio. (2017). Multiple buyer-supplier relationships in the context of SMEs’ digital supply chain management, The management of operations, vol.28, 2017, no.16, Pp. 1378-1388, DOI:https://doi.org/10.1080/09537287.2017.1375149
Sekaran Uma., & Bougie Roger (2016). Research methods for business: A skill-building approach, (7th ed.), John Wiley & Sons
Selviaridis, K., & Spring, M. (2018).Supply chain alignment as process: contracting, learning and pay-for-performance, International journal of operations & production management, vol.38, no.3, Pp.732-755: DOI:https://doi.org/10.1108/IJOPM-01-2017-0059
Shin Nina, Park Sun Hyun., & Park Sangwook. (2019). Partnership-based supply chain collaboration: Impact on commitment, innovation, and firm performance, Sustainability 2019, vol.11, no. 449; DOI:https://doi:10.3390/su11020449
Singh, C.S., Soni, G., & Badhotiya, G.K. (2019). Performance indicators for supply chain resilience: review and conceptual framework. J and eng int,vol. 15, Pp.105–117,DOI:https://doi.org/10.1007/s40092-019-00322-2
Soonhong Min, Zach G. Zacharia., & Carlo D. Smith.(2019). Defining supply chain management: In the past, present, and future, Journal of business logistics, 2019, 40(1): Pp.44–55
Sting Fabian J, Stevens Merieke., & Tarakci Murat. (2019). Temporary deembedding buyer-supplier relationships: A complexity perspective, Journal operations management,vol.65,no.2,Pp.114-135,DOI:https://doi.org/10.1002/joom.1008
Swierczek Artur. (2019). Examining the link between the governance mechanisms and supply chain performance-An empirical study within the triadic context, Engineering management in production and services, vol. 11: no. 3, DOI:http://dx.doi.org/10.2478/emj-2019-0026
Syah Donny Oktavian. (2019). Identifying vertical partnership among automotive component companies: Empirical evidence from automotive industry in Jabodetabek, Indonesia, Journal of economic structures (2019), vol.8: no. 33 DOI:https://doi.org/10.1186/s40008-019-0149-z
Tabachnick, Barbara. G., & Fidell, Linda. S. (2019). Using multivariate statistics (7th ed.), Pearson Publishers
Talebi Kambiez, Farsi Jahangir Yadollahi., & Miriasl Hamideh. (2017).Identifying the impact of strategic alliances on the performance of SMEs (Case study: The industry of automotive parts manufacturers in Iran), International business research; vol. 10, no. 6; 2017 ISSN 1913-9004 E-ISSN 1913-9012, Published by Canadian center of science and education
Tolmay Aletta Sophia .(2020).Supply Chain and Logistics Management, An Investigation into the personal interaction items which best explain the variation in trust within automotive supply chains, DOI:https://doi.org/: 10.4018/978-1-7998-0945-6.ch077
Tolmay A.S.,& Badenhorst-Weiss J.A.(2018). The dynamics in customer-supplier relationships in South African automotive supply chains, International journal of value chain management, vol. 9, no. 2, DOI:https://doi.org/10.1504/IJVCM.2018.092391
Tuan Luu Trong. (2016). Organizational ambidexterity and supply chain agility: The mediating role of external knowledge sharing and moderating role of competitive intelligence. International journal of logistics research and applications, vol 19, 2016- Issue 6, DOI:https://doi.org/10.1080/13675567.2015.1137278
Warne Russell T., & Larsen Ross. (2014). Evaluating a proposed modification of the Guttman rule for determining the number of factors in exploratory factor analysis, Psychological test and assessment modeling, vol. 56, no.1, Pp.104-123
Watkins Marley W. (2018). Exploratory factor analysis: A Guide to best practice, Journal of black psychology 2018, vol.44, no.3, Pp.219–246, DOI: journals.sagepub.com/home/jbp
Weihong Wang. (2004). Management of buyer-supplier relationships in the supply chain case studies of automotive and telecom supply chains, unpublished thesis, Royal institute of technology, Sweden
Yin, K. Robert. (2017). Case study research and applications: Design and methods, (6th ed), Sage publications Inc
Zhao Li., & Ha-Brookshire Jung. (2018). Importance of guanxi in Chinese apparel new venture success: A mixed-method approach, Journal of global entrepreneurship research, vol. 8, no.13
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2022 Robert Wamalwa Wandera, Prof. Gregory Simiyu Namusonge, Prof. Maurice Matendechere Sakwa
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work’s authorship and initial publication in this journal.
