Robert M. Monczka is director of the Global Procurement and Supply Chain Benchmarking Initiative, Professor of Strategic Sourcing Management, and The National Association of Purchasing Management Professor at Michigan State University. His current research efforts are directed at procurementlsourcing and supply chain strategy. Outside of the academic arena, his career consists of consulting and research with more than 150 international organizations.
Success Factors in Strategic Supplier Alliances: The Buying Company Perspective*
Article first published online: 7 JUN 2007
Volume 29, Issue 3, pages 553–577, July 1998
How to Cite
Monczka, R. M., Petersen, K. J., Handfield, R. B. and Ragatz, G. L. (1998), Success Factors in Strategic Supplier Alliances: The Buying Company Perspective. Decision Sciences, 29: 553–577. doi: 10.1111/j.1540-5915.1998.tb01354.x
Research support provided by the Global Procurement and Supply Chain Benchmarking Initiative at Michigan State University.
- Issue published online: 7 JUN 2007
- Article first published online: 7 JUN 2007
- Received: April 11, 1996. Accepted: April 11, 1997.
- Linear Regression;
- and Supply Chain Management.
The emerging area of supply chain alliances has received considerable attention in the academic and managerial press, yet there are many unanswered questions regarding the dynamics of such relationships. A number of such fundamental issues drive this research initiative, including how alliances are developed, their key success factors, and the specific benefits to be achieved. The study begins by establishing a definition of strategic supplier alliances, based on a comparison of both theoretical and managerial descriptions. The critical antecedents associated with the success of strategic supplier alliances are next developed, and the magnitude of the effect of these factors on partnership success is assessed. The analysis employs both qualitative and quantitative data, collected through an electronic network of over 200 companies, as part of an ongoing benchmarking initiative in supply chain management.
From the perspective of the buying company in the alliance, the following attributes of supplier alliances were found to be significantly related to partnership success: trust and coordination, interdependence, information quality and participation, information sharing, joint problem solving, avoiding the use of severe conflict resolution tactics, and the existence of a formal supplier/commodity alliance selection process. Resource commitment and smoothing over problems were found to be poor predictors of alliance success. The implications of these results for managerial decision making in supplier alliance development are discussed.