Sustaining strategic supplier alliances

Abstract

Investigates the change in requirements to sustain supplier alliances as the relationship matures. Notes that the trend to outsource more materials and services has made firms more reliant on their sources of supply. This has led to a move towards increasingly collaborative supplier relationships, referred to as supplier alliances. Widespread use of these relationships is new and relatively little is known about the attributes that may promote success or failure. A recent paper concludes that such “partnership” relationships tend to expand and be more successful with each year following establishment. Tests this assumption using a longitudinal survey of 41 buyer‐supplier relationships. Finds that the purchasing firms perceived some improvements in benefits from their alliance‐like relationships but not significantly more than those which maintained traditional relationships. Also finds that the factors leading to improved benefits changed significantly as the alliance matured, with specific information flows becoming key. Proposes a profile of the relative importance of these factors over time.

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