Authors: Chao Ji-Hyland
Given the economic turbulence that organisations are facing, it is clear that business environment factors are having an impact on how firms conduct their affairs and how they interact with their supply chain partners. The orientation of a business towards its partners can be likened to a state of flux. There is a growing recognition throughout the world of purchasing that there is no single optimal buyer-supplier relationship and a “horses for courses” approach to employ the most “fit for purpose” relationship is required. The type of relationship depends on environmental circumstances, but also needs to be malleable in the face of change. There is a distinct lack of research on how environmental factors affect performance in a relationship context. The current research aims to address this gap within the context of buyer-supplier relationships using a dyadic approach concentrating on individual supply chains of companies using Chinese organisations as their supply chain partners. We posit that the link between internal and external environmental factors and supply chain performance can be mediated by the levels of trust and commitment in the relationship. While trust and commitment are well studied in supply chain relationships, the extant studies do not take a holistic view of how trust and commitment can mediate between environmental criteria and supply chain performance.
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