A study on the antecedents of supplier commitment in support of logistics operations

Supplier inputs need to be delivered at the right time in the right quality and quantity to fully satisfy the operations requirements of buying firms. In achieving these performance goals, the importance of supplier commitment in managing the buyer-supplier relationship (BSR) should not be neglected in logistics operations. Due to organisational differences on operations priorities, it is a challenging task to manage a BSR which is inherently complex with many transactional and institutional aspects involved. This challenge is salient in logistics management with multiple upstream and downstream parties involved where the lack of concerted efforts can compromise performance of the entire logistics chain. For many enterprises, it remains unclear on how to nurture supplier commitment in support of their logistics operations. Considering this research void, we examine the antecedents of supplier commitment covering both transactional and institutional factors influencing supplier commitment in the BSR. Survey data collected from 358 suppliers of an international buying firm indicate that business uncertainty discourages supplier commitment, but the commitment can be reinforced with both explicit and implicit contracts used for governing the BSR.