University of Twente Student Theses
Supplier Resource Allocation during Market Uncertainty : A mixed methods study on the impact of Dependence and Relationship Length
Grootenhuis, B. (2024) Supplier Resource Allocation during Market Uncertainty : A mixed methods study on the impact of Dependence and Relationship Length.
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| Abstract: | Suppliers' resource allocation decisions are important to buyers' success, especially during market uncertainty. This study explores how market uncertainty and supplier dependence, measured as a share of turnover, affect a supplier's resource allocation. Thereby, the moderating role of long-term buyer-supplier relationships is investigated. Understanding and potentially influencing suppliers' allocation of resources can benefit supply chain practitioners. A mixed-methods approach is adopted. Policy-capturing experiments gathered quantitative data across four companies active in diverse industries. Additionally, qualitative insights from interviews with directors working in an agrifood multinational verify and explain why decisions are made. In this industry where market uncertainty is always present, buyer-supplier relationships aim to build long-term relationships with mutual trust to cope with market uncertainty. The quantitative analysis reveals that suppliers allocate more resources to buyers on whom they are highly dependent, while high market uncertainty leads to slightly reduced resource allocation. Long-term relationships are shown to influence resource allocation positively. In both methods, cultural differences also emerge as a significant factor, with statistical evidence showing that non-Dutch suppliers allocate more resources than their Dutch counterparts. These findings contribute with empirical evidence to the literature and suggest future directions and strategic considerations in supplier resource allocation. |
| Item Type: | Essay (Master) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 85 business administration, organizational science |
| Programme: | Business Administration MSc (60644) |
| Link to this item: | https://purl.utwente.nl/essays/102869 |
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