The effect of supplier manufacturing capabilities on buyer responsiveness

Abstract

Purpose The purpose of this paper is to examine the relationships between supplier capabilities, supply chain collaboration and buyer responsiveness. Design/methodology/approach The sample is drawn from UK manufacturing firms across eight industry sectors. Data are analysed using a three‐step hierarchical regression model to investigate main, interaction and quadratic effects. Findings The results indicate that suppliers' capabilities (flexibility, responsiveness and modularity) directly impact buyer responsiveness but that the level of buyer‐supplier collaboration moderates this relationship. Furthermore, the results show a curvilinear relationship directly between collaboration and buyer responsiveness, whereby there is an optimal point beyond which returns on the relationship decline. Research limitations/implications The method adopted is a cross‐sectional design and therefore cannot imply causality. Nonetheless, the findings suggest a number of implications. The paper identifies empirical evidence for the extended resource‐based view (ERBV) of the firm and therefore has implications for the unit of analysis of future studies investigating competitive advantage. Contrary to popular wisdom, the findings also suggest a curvilinear relationship between supply chain collaboration and performance. Originality/value The paper provides novel insights into the impact of supplier capabilities on buyer responsiveness. Furthermore, the paper provides empirical evidence for the rationale of the ERBV within the context of operations management.

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