The Determinants and Outcomes of Supplier Satisfaction (original) (raw)
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Effect of Trust , Satisfaction and Other Relationship Dimensions on Supplier Relationship Management
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Framework for measurement of supplier satisfaction
International Journal of Productivity and Performance Management, 2019
Purpose The purpose of this paper is to design, develop, implement and validate a multi-criteria decision model for measuring supplier satisfaction through a case study. Design/methodology/approach A three-stage methodology was used to develop a framework to measure supplier satisfaction. The framework involved factors and Key Performance Indicators (KPIs) from literature and exploratory study. Further, using the framework, a multi-dimensional decision model to calculate Supplier Satisfaction Index was developed. The proposed decision framework was implemented as a real-world case study in an Indian manufacturing organization. Findings The study makes two major contributions: first, it develops a framework to measure supplier satisfaction using factors and KPIs suitable to the buyer organization; second, the model developed to calculate supplier satisfaction helps in understanding overall satisfaction of suppliers along with the level of satisfaction of each supplier. The model can ...
Advances in Economics and Business
This study investigates the influences of product quality and relational elements, namely trust, cooperation, and communication, on customer loyalty, and mediating effects of commitment in Malaysian electrical and electronics manufacturing industry. It utilizes quantitative methodology, where survey questionnaires are sent to Malaysian electrical and electronics manufacturing firms selected from two directories. A total of 267 returned and useable survey questionnaires were used for data analysis consisting of descriptive analysis, PLS-SEM, and mediation effects. Results of PLS-SEM analysis found that product quality and cooperation have significant influences on customer loyalty. In contrast, trust and communication do not have significant influence on customer loyalty. Mediation effect analysis findings established that commitment significantly mediates four relationships between product quality and customer loyalty, trust and customer loyalty, cooperation and customer loyalty, and communication and customer loyalty. Two relationships between product quality and customer loyalty, and cooperation and customer loyalty are partially mediated by commitment. The other two relationships between trust and customer loyalty, and communication and customer loyalty are fully mediated by commitment. The findings have managerial implications for Malaysian electrical and electronics manufacturing industry, where customer loyalty can be developed with influences of product quality and relational elements, in which not all of them develop customer loyalty in similar way; only cooperation has direct influence on customer loyalty. Nevertheless, with the presence of mediating effects of commitment, all three relational elements can develop customer loyalty indirectly.
Achieving high satisfaction in supplier‐dealer working relationships
Supply Chain Management: An International Journal, 2003
Increased attention has been paid to the question of how to build stable and long‐term working relationships between suppliers and dealers. This study proposes a conceptual model including behavioral dimensions of supplier‐dealer relationships and presents hypotheses about how to achieve satisfactory inter‐organizational relationships. Satisfaction is the consequence of working relationships focused upon in our model. The model is an empirical assessment of the relationship between Swedish lumber dealers and their suppliers. T‐test evidence suggests that all proposed critical variables, with the exception of coercive power, are of significant importance for achieving a high rate of perceived relationship satisfaction, regardless of whether the relationship is characterized by a high or a low level of trust and commitment. A good reputation, close relationship and positive relationship benefits are key variables for the achievement of high satisfaction in a “high‐trust and commitment...
Influence of quality relationship and satisfaction on loyalty: study on supplier in Indonesia
This study examined the nature of linkages between the quality relationship, satisfaction and customer loyalty. Furthermore, trust, commitment and involvement of product categories also tested to see its effect on the relationship quality. This study was conducted in a business-to-business setting of loyalty supermarket suppliers in Indonesia. The researchers employed 265 respondents of SMEs suppliers of vegetable and fruit in the supermarket as the sample. This research used Structural Equation Modeling (SEM) to analysis the relationship. The results revealed that the relationship quality and satisfaction effect on loyalty. The overall goodness of fit statistics shows that the structural model fits the data well. Introduction Relationship Marketing is an effort to attract customers and improve customer relationships. Relationship Marketing is an attempt to know consumers better, so the company can meet the needs and desires of its customers. Grönroos (1991), looked at the relationship marketing as an effort to develop, maintain, improve and commercialize relationships with customers in order to realize the objectives of all parties involved. Gummesson (1999), defines relationship marketing as a continuation of the mutual relationship between a service provider and a customer who will lead to formation of profitability. The basic philosophies of relationship marketing are based on the assumption that company-customer interactions and strategies can earn and keep the loyalty of customers (Berry, 1995). This study discusses the relationship of loyalty between suppliers and companies in the supply chain cycle. This study analyzes the loyalty of the supplier side. Loyalty in question is the loyalty of suppliers to continue to be loyal to the company, so that these suppliers will not switch to another company. Initial research conducted by researchers showed that SMEs suppliers of vegetable and fruit have a tendency to move and are not loyal to a supermarket. Geyskens & Steenkamp (2000), empirically found that loyalty is the result of economic satisfaction and a channel member's evaluation of the economic outcomes that flow from the relationship with its partner such as volume, margins and bonus. This phenomenon occurs almost throughout the supermarket supplier in Indonesia. This study differs from some of the research
South African Journal of Economic and Management Sciences
Background: There is a clear difference of opinion amongst researchers on the interrelatedness of the variables trust, commitment, satisfaction, coordination, cooperation and continuity in a business-to-business (B2B) environment. The reason is that in previous studies much emphasis has been placed on creating and testing new theories, and not on providing practical generalities.Aim: The aim of this study was to determine how the variable satisfaction is positioned in relation to trust and commitment, and how satisfaction relates to the variables coordination, cooperation and continuity in a South African B2B environment.Setting: This study replicates a similar study conducted in 2013 in a B2B environment in South Africa and hopes to validate the outcome of that study by determining the relationship between the constructs postulated in the current study. The relationships between the different constructs in the proposed model will, therefore, provide a longitudinal perspective which...
The role of supplier satisfaction survey in building partnerships
Ekonomski vjesnik
Purpose: The main goal of this paper’s research was to determine the role and justification of surveying supplier satisfaction in building partnerships. Methodology: To collect primary data, qualitative research was used, which was conducted in several phases. The study tested nine key criteria modelled on the work of Vos et al. (2016). The sample of key suppliers was determined from a non-probability sample of experts from eight strategic suppliers who agreed to participate in the research. A qualitative approach was used due to the small sample and the desire to apply a different approach since the authors used a quantitative approach in most of the analysed papers. Results: Research has shown that the key criteria for supplier satisfaction are reliability, communication, and operative excellence of the customer they work with. Conclusion: Any long-term and successful business relationship implies the satisfaction of all parties in the relationship. The concept of supplier satisfa...
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To be successful in global competitive markets, many firms have responded to rapid technological change, heightened competition and shortened product life cycles by focusing customer satisfaction. It is very difficult to ensure customer satisfaction. In spite of the increasing offer, customers are more conscious, and they make purchasing decisions by evaluating multiple choices and selecting among these choices. In this paper, supplier performance was evaluated by their customers and then, effects of performance criteria factors on customer satisfaction were analyzed. To examine the role of supplier performance in customer satisfaction, a survey was conducted of 182 manufacturing companies in Turkey. Factor analysis yielded seven factors: technical capability, innovation, conformance quality, pricing, delivery, flexibility and service. Correlation analysis indicated that innovation, delivery, flexibility and service factors significantly correlated with customer satisfaction. Hierar...