Value Co-Creation through Transparent Buyer-Supplier Relationships: A Case Study in the Supply Network of Industrial Machinery Manufacturer
Autio, Sampo (2015)
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Tiivistelmä
This research aims to find the appropriate level of transparency in different buyer-supplier relationships in order to enhance value co-creation in the supply network. The previous literature demonstrates that transparency brings many benefits but also causes risks. Therefore, transparency needs to be balanced in different buyer-supplier relationships.
This research was an embedded single case study containing three supplier groups within the supply network. The primary and qualitative research data related to the antecedents for transparency and the effects of transparency on value co-creation was collected from 14 in-depth semi-structured interviews. This data was analyzed by a causal map analysis. The secondary research data had been collected from the web-based structured questionnaires from the customer and its 24 suppliers. This data was analyzed by a descriptive statistics in order to describe the current level of transparency in the supply network.
The research results indicated that the level of transparency in the supply network varied based on the type of the relationship where the more collaborative relationships had the higher level of transparency and the more powerful actor seemed to force the other to share information. Furthermore, transparency was believed to require trust but also the arranged methods and IT-systems for information sharing which need allocated resources and causes costs. The results also indicated that transparency had many value-creating effects related to capabilities, integration, operational performance and financial outcomes but it also had some value-destroying effects. Lastly, a framework was created in order to determine the development suggestions for the appropriate level of transparency in different buyer-supplier relationships in the supply network so that more value can be created and shared between the actors. The framework is applicable at least with the similar supply networks which provide low volume manufactured products with many different and variable items.
This research was an embedded single case study containing three supplier groups within the supply network. The primary and qualitative research data related to the antecedents for transparency and the effects of transparency on value co-creation was collected from 14 in-depth semi-structured interviews. This data was analyzed by a causal map analysis. The secondary research data had been collected from the web-based structured questionnaires from the customer and its 24 suppliers. This data was analyzed by a descriptive statistics in order to describe the current level of transparency in the supply network.
The research results indicated that the level of transparency in the supply network varied based on the type of the relationship where the more collaborative relationships had the higher level of transparency and the more powerful actor seemed to force the other to share information. Furthermore, transparency was believed to require trust but also the arranged methods and IT-systems for information sharing which need allocated resources and causes costs. The results also indicated that transparency had many value-creating effects related to capabilities, integration, operational performance and financial outcomes but it also had some value-destroying effects. Lastly, a framework was created in order to determine the development suggestions for the appropriate level of transparency in different buyer-supplier relationships in the supply network so that more value can be created and shared between the actors. The framework is applicable at least with the similar supply networks which provide low volume manufactured products with many different and variable items.