University of Twente Student Theses


The effect of intelligence on preferred resource allocation

Diekmann, Julia (2017) The effect of intelligence on preferred resource allocation.

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Abstract:Competition between companies has become fierce throughout recent decades. Companies do not only compete anymore on the level of their sales to consumers, but buying companies are nowadays also competing for the favour of their suppliers. To win this competition for suppliers a buying firm needs to increase its attractiveness and to satisfy its supplier. Throughout this study an extensive literature review is provided on different aspects as well as a presentation of the results. Moreover, a conceptual model is developed, which shows the relationship between preferred resource allocation, supplier satisfaction, customer attractiveness and the new concept of intelligence. Intelligence is made up of the elements of trust and power, which are in relation to literature a basis for increasing a company’s attractiveness to suppliers as well as the satisfaction of a supplier with the buying company. When a company is buying from many different suppliers it needs to efficiently manage its supply resources and therefore building up trust and using its power to create the best possible buyer-supplier relationship to attain best resources. To summarize the outcome of the collected data, in general all suppliers stated that they are satisfied with the relationship with the Dittmar Baugesellschaft mbh&Co KG. Further it can be said that the suppliers perceive the buying firm as one of their preferred customers. Additionally, the suppliers would like to continue this business relationship and believe this perception is mutual. This aligns with the expectations of the buying firm. The trust between the buyer and the suppliers seems to be mainly on a high level, despite the questionnaire item where it is asked whether the buying company would make sacrifices to support its suppliers the perceptions are more on a moderate level. Concerning the dependency of the supplier on the Dittmar Baugesellschaft mbH&Co KG, no clear pattern seems to be found. Answers on that are mixed on all levels. The same accounts for questions concerning market uncertainty, where a possible reason could be that the respondents could stem from different industries. When it comes to the aspect of the fulfilment of wishes, the opinions seem to be on a more neutral level where both firms are mostly seen equal in the fulfilment of their wishes. All hypotheses build throughout this research were not be able to be supported. First, all respondents perceive the customer attractiveness of the buying company on the same level therefore all associated relations couldn’t be tested. Accordingly, the hypotheses in relation to 4 this variable can neither be confirmed nor denied. Second, for all relations concerning the supplier satisfaction the hypotheses couldn’t be supported due, to all P-values > α. The main reason for the issues named above is the low response rate of lower 15% to the questionnaire. All in all, this study is adding up to current literature as it provides a new conceptual model and a summary of the relations having an influence on preferred resource allocation. Further it provides the Dittmar Baugesellschaft mbH&Co KG with deeper insights on the relationships with their suppliers. Anyways, it is proposed to carry-out the study again and test the model on a bigger sample size to be able to test the conceptual model and gain insights on whether power and trust do have an influence on customer attractiveness and supplier satisfaction
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:83 economics, 85 business administration, organizational science
Programme:Business Administration MSc (60644)
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