Technology uncertainty in supply chains and supplier involvement: the role of resource dependence

• Published in: Supply chain management Vol. 24; no. 6; pp. 697 - 709
• Main Authors: Xiao, Chengyong, Petkova, Boyana, Molleman, Eric, van der Vaart, Taco
• Format: Journal Article
• Language: English
• Published: Bradford Emerald Publishing Limited 22-10-2019; Emerald Group Publishing Limited
• Subjects: Decision making; Dependence; Manufacturing; Product development; Resource management; Suppliers; Supply chain management; Supply chains; Test procedures; Uncertainty; Upstream; Relational view; Uncertainty; Interdependence; Resource dependence theory; Supplier involvement; Buyer dependence
• ISSN: 1359-8546; 1758-6852
• DOI: 10.1108/SCM-10-2017-0334

Purpose
Technology uncertainty poses significant challenges to manufacturers, as rapid changes in product and/or process standards and specifications can disrupt the smooth flow of materials in extended supply chains. Practitioners and researchers alike who take a relational perspective widely regard supplier involvement as a potentially effective strategy to cope with technology uncertainty, as focal manufacturers can tap into their upstream supply networks for complementary resources and capabilities. However, the literature lacks a nuanced understanding of the supplier involvement processes. Specifically, the role of resource dependence for supplier involvement has yet to be systematically understood. To fill this gap, this study aims to combine the relational perspective with the resource-dependence perspective to explore how buyer dependence, supplier dependence and buyer–supplier interdependence influence buyers’ decision-making on tapping into upstream supply networks for coping with technology uncertainty.
Design/methodology/approach
To test the hypotheses, a survey is conducted among Dutch firms with more than 50 employees in the discrete manufacturing industries (ISIC 28-35), resulting in a sample of 125 manufacturers.
Findings
First, there is a significantly positive relationship between technology uncertainty and supplier involvement, giving support to the expectation that buyers are indeed involving their key suppliers in the product/process design and improvement, as a response to technology uncertainty. Second, buyer dependence and interdependence are found to be positively moderating the relationship between technology uncertainty and supplier involvement. In contrast, supplier dependence has a negative moderating effect on the baseline relationship.
Research limitations/implications
The authors contribute to a relational view on buyer–supplier relationships by showing that the validity of this view, in the context of technology uncertainty, is contingent on the resource dependence between buyers and suppliers, and the authors contribute to the supply chain management literature more generally by combining a relational perspective with a resource-dependence perspective.
Practical implications
The findings provide several nuanced insights into the effect of resource dependence (buyer dependence, supplier dependence and interdependence) on supplier involvement for coping with technology uncertainty.
Originality/value
This study contributes to the supply chain management research by going beyond the benefits of supplier involvement and highlights the circumstances under which supplier involvement is likely to occur.