The Drivers of Perceived OEM-Supplier Relationship Quality and the Influence of Culture, Alignment & Engagement

• Main Author: Johnson, Angela M
• Format: Dissertation
• Language: English
• Published: ProQuest Dissertations & Theses 01-01-2024
• Subjects: Automotive engineering; Industrial engineering
• ISBN: 9798384451945

Through a case study analysis of one U.S. automotive OEM and over 300 direct material supplier relationships, this dissertation examines the drivers of bilateral perceived relationship satisfaction. As the automotive industry undergoes massive technological transformation amid unparalleled global supply chain disruption, OEM relationships with critical suppliers provide a key to delivering cost-effective, first-to-market innovation and to fortify supply chain resilience.Spanning 2020 – 2022, the research uniquely contributes to industry and academia through insights drawing upon an unprecedented repository of externally and internally sourced data. Qualitative coding analyzes 20,000 verbatims spanning 4,000 buying situations. Annual Plante Moran Working Relations Index and internal OEM-issued bilateral relationship surveys, supplemented with demographic, performance, and employee engagement data provide a broad and deep analysis of bilateral relationship satisfaction. Survey analysis findings are subsequently validated through 18 dyadic OEM-supplier interviews. A new concept is introduced, Behaviors Influencing Transactional Efficiency (BITE), as it is distinguished from the relational constructs commonly associated with high-functioning corporate partnerships such as knowledge sharing, collaboration, innovation, and continuity. BITE provides the mechanism through which exchange relationships transform from transactional to relational ties. The role of Corporate Composition is introduced in reference to the fundamental structure, culture, and operating model of the OEM, and how it shapes the boundary conditions between relationship satisfaction and enterprise objectives.Overall, this research demonstrates that trade-offs of enterprise strategic decisions and functional strategy execution compromise transactional efficiency, and thus bi-lateral relationship satisfaction. Adequate transactional efficiency, as each party defines through its own perspective, must be achieved before the relational constructs and benefits that define high-functioning partnerships can be realized. The data demonstrates the moderating effect of cultural similarity, strategic significance, and peer connections to pacify or amplify the effects of transactional inefficiencies. Furthermore, it builds upon extant research that transactional governance and relational governance exist not in isolation but along a spectrum and demonstrates that OEM governance mechanisms must align to Corporate Composition. When misalignment exists, initiatives fail to sustain, and enterprise performance is compromised. Several recommendations are provided as a continuous improvement approach to balance market objectives and key supplier partnerships.The research provides academic contributions to the complex field of industrial OEM-supplier exchange relationships, offers actionable insights to OEMs and suppliers, and provides a blueprint for manufacturers with complex global supply chains to understand and strengthen strategic supplier relationships in harmony with enterprise strategy.