Impact of buyer and competition pressure on supplier manufacturing automation implementation and workforce upskilling: the moderating role of top management support

Mohammed Belal Uddin · Jayanth Jayaram

10 citations0/0 files storedThe International Journal of Logistics Management

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Quality and Supply Management Digital Transformation in Industry Outsourcing and Supply Chain Management

Abstract

Purpose This study examines the impact of buyer pressure and competition pressure on supplier manufacturing automation (MA) implementation and the influence of supplier MA implementation on workforce upskilling. This study also investigates the moderating role of top management support on the association between buyer pressure-supplier MA implementation, competition pressure-supplier MA implementation and supplier MA implementation workforce upskilling. Design/methodology/approach Grounded in stakeholder theory and a resource-based view, this study uses structural equation modeling and hierarchical regression analysis to test the hypotheses. A close-ended questionnaire was used to collect data from 201 readymade garment firms in Bangladesh. Findings Results indicate that buyer and competition pressure influence supplier MA implementation. Supplier MA implementation provides opportunities to enhance workforce skill levels. Additionally, firms with top management support deal better with buyers and competition pressures on MA implementation. However, top management support does not boost workforce skill levels as influenced by MA implementation. Originality/value To the authors’ knowledge, ours is the first investigation linking buyer pressure and competition pressures to supplier MA implementation. Supplier MA implementation influencing workforce upskilling is also a novel aspect of this investigation. This study found a moderating effect of top management support on the association between buyer pressure-supplier MA implementation and competition pressure-supplier MA implementation. Moreover, stakeholder theory has been extended by including competitors and top management as crucial stakeholders. This study also contributed to the resource-based view by categorizing MA implementation as a capability and workforce upskilling as a resource.

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