Manufacturers’ Acquiescence to Buyers’ Sourcing Requests in Industrial Markets

Purpose: This study examines a three-level interdependent hierarchical supply chain and explores
the antecedents and consequences of a manufacturer’s acquiescence to a buyer’s request to
source a component from a designated component supplier.
Methodology: This research collected survey data from 212 Chinese mining companies and
analyzed the data using structural equation models.
Findings: First, a manufacturer’s acquiescence is negatively associated with its industrial knowledge
and technological capability as perceived by the buyer, but positively correlated with the
relational ties between the buyer and the designated component supplier. Second, the detailing
efforts strengthen the impact of perceived industrial knowledge but weaken that of relational ties
on acquiescence. Third, the manufacturer’s acquiescence ensures the buyer’s power maintenance
and procurement outcome certainty, and improves the manufacturer’s customer loyalty and
control of sourcing information.
Research implications: The research highlights the significance of understanding acquiescence
within an interdependent supply chain network and indicates that acquiescence will not necessarily
lead to the acquiescing firm’s dependence disadvantage.
Practical implications: The research suggests that firms can use acquiescence to preserve interdependent
supply chain relationships. When deciding whether to acquiesce or not, firms should
consider not only the market perceptions of their resources and capabilities but also the supply
chain networks. Detailing can be an effective method to reduce the pressure for acquiescence.
Originality: In the context of a manufacturer’s sourcing decisions, the research provides fresh
insights into acquiescence in a three-level hierarchical supply chain relationship.