Supplier empowerment: Mediating situational factors and perceived performance

Department or Administrative Unit

Finance and Supply Chain Management

Document Type

Article

Author Copyright

© 2020 Elsevier Ltd. All rights reserved.

Publication Date

6-2020

Journal

Journal of Purchasing and Supply Management

Abstract

The understanding of the behavioral and cognitive factors that affect organizations' performance has attracted increasing attention of scholars and practitioners. Based on the literature of psychological empowerment at the individual and the team levels, this study develops the concept of supplier empowerment in the context of purchasing and supply management. Further, this study proposes a research model that explores the role of supplier empowerment as a cognitive concept in mediating the relationship between situational factors (a supplier's process modularity and the mutual trust with its customers/buyers) and the supplier's perceived performance in its operations and customer service. This model is tested with 208 responses from automotive industry suppliers. The findings highlight the importance of empowered suppliers in decreasing inventory levels and increasing order fulfillment performance.

Comments

This article was originally published in Journal of Purchasing and Supply Management. The full-text article from the publisher can be found here.

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