The Effects of Interaction Process Characteristics between the Supplier and the Buyer on Relationship Value and Firm Performance

Kim, Young Ah (2014) The Effects of Interaction Process Characteristics between the Supplier and the Buyer on Relationship Value and Firm Performance. Doctoral thesis, University of East Anglia.

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Abstract

The thesis contributes to enhance current understanding of the interaction process characteristics between the supplier and the buyer creating relationship value and leading to the overall performance of the firm in interorganisational relationships under a variety of environmental characteristics of the firm and competitive strategies adopted by the firm. This study defines interaction process characteristics between the supplier and the buyer as structural characteristics, functional characteristics and climate characteristics. Structural characteristics consist of centralisation and formalisation, functional characteristics consist of joint action and information exchange, and climate characteristics consist of trust and commitment. It addresses the following research questions: (1) How are interaction process characteristics defined? (2) Do environment characteristics of the firm affect the interaction process characteristics of the firm and its partner? (3) Does competitive strategy of the firm affect the interaction process characteristics of the firm and its partner? (4) Is relationship value defined as the sum of sub-dimensions of value in the relationships between firms? (5) Do interaction process characteristics affect relationship value? (6) Does relationship value affect the overall performance of the firm?
This research was designed and conducted on the basis of quantitative methods. Data have been collected with the drop-and-collect survey method by means of a questionnaire based on a survey of the buyer or the supplier in the factory automation system, the IT and the automotive manufacturing industries in South Korea. Sample size is 409 (response rate: 44.95%). Analysis results show that the effects of complexity and dynamism on interaction process characteristics are not significant, while munificence has a positive effect on interaction process characteristics. The effects of
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business strategy on interaction process characteristics are significant. In terms of the relationships between interaction process characteristics and their consequences, climate characteristics such as trust and commitment have considerably significant effects on relationship value and overall performance of the firm.
In conclusion, this research adds to the body of knowledge about the integrated framework of interaction process characteristics in supplier-buyer relationships. First of all, in the IT and automotive industries, munificence, that is the availability of critical resources which a firm needs to compete, is the key environmental characteristic that the firm should consider to achieve overall performance. Secondly, regarding business strategy, differentiation and cost leadership strategies have positive effects on interaction process characteristics in structural, functional and climate dimensions. Thridly, this study contributes to the identification of the dimensions of relationship value and the development of its measurements. Relationship value consists of several subdimensions such as economic, operational, strategic and behavioural value and the integrated framework including subdimensions of relationship value is examined with the measurements developed in this study. The effect of relationship value on the performance of the firm is considerably significant.

Item Type:	Thesis (Doctoral)
Faculty \ School:	Faculty of Social Sciences > Norwich Business School
Depositing User:	Users 2259 not found.
Date Deposited:	30 Jun 2015 14:10
Last Modified:	30 Jun 2015 14:10
URI:	https://ueaeprints.uea.ac.uk/id/eprint/53432
DOI:

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