The effect of supplier manufacturing capabilities on buyer responsiveness: the role of collaboration as a moderator

Cousins, Paul D., Lawson, Benn R., Squire, Brian C. and Brown, Steve (2005) The effect of supplier manufacturing capabilities on buyer responsiveness: the role of collaboration as a moderator. 16th Annual Conference of POMS: OM Frontiers: Winds of Change, Chicago, USA. 28 Apr - 01 May 2005.

Abstract

This study investigates the impact of three different types of supplier manufacturing capabilities (flexibility, customer responsiveness and product modularity) on a buyer firm’s manufacturing responsiveness. In addition to a direct effect, we propose that collaboration between buyer-supplier has a positive moderating effect on the link between supplier capabilities and buyer performance. We also argue that collaboration has a curvilinear (inverted-U) relationship with buyer responsiveness. Analyses from 104 medium-to-large manufacturing companies based in the United Kingdom largely support our hypotheses. Our results indicate that supplier capabilities have a direct effect on buyer responsiveness, while collaboration strengthens the contribution of supplier responsiveness to buyer responsiveness, but weakens the relationship between supplier modularity and buyer responsiveness. No support is found for the influence of collaboration and supplier flexibility on buyer performance. Furthermore, we show that collaboration is curvilinearly associated with buyer responsiveness, first increasing and then decreasing a firm’s responsiveness capability.

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