PREDICTING THE SUCCESS OF THE SUPPLY CHAIN DYADIC RELATIONSHIP: A QUALITATIVE STUDY OF DYADS

The literature on supply chain dyadic relationships (SCDRs) focuses on a limited range of elements, such as trust or collaboration, and does not always cover all the elements that contribute to successful SCDRs. A lack of understanding of the other party contributes to the failure of measurement methods. Identifying the future success of a relationship at the earliest stages of its formation is crucial. This research, therefore, aims at improving SCDR elements in predicting SCDR success.

In a longitudinal study, the first stage of the research undertook a literature review to isolate the SCDR elements previously identified.  These elements were then confirmed via interviews with a panel of practitioners representing both buyer and supplier organisations.  The second stage used the questionnaire, which was administered via an on-line platform to a small number of early-stage SCDRs.  Results were fed back to the participating organisations for comment.  Finally, after a suitable period had elapsed, a follow up interview was held to find out whether the predictions from the assessment were accurate. Results revealed a new element -- culture matching. This was confirmed by the follow up interviews after more than six months had occurred with all participants intending to continue the relationship.

Theoretically, the available SCDR elements are enhanced by addition of the new culture matching element. This helps researchers to understand how SCDRs work when formulating future research projects. Practically, supply chain executives have access to a tool to predict success or potential failure of a putative SCDR thereby avoiding the expensive cost of replacing an unsuccessful SCDR and limiting the sunk costs in the relationship. Alternatively, it would enable the parties to take corrective action to move the relationship into a successful position.