Buyer behaviours and the performance of the supply chain: an internationalexploration

This paper studies the effects of buyer-supplier interaction in a supply ch ain environment. It focuses on the effects of buyer behaviours (such as sup plier selection, number of suppliers, percentage of outsourcing, and freque ncy of production changes) on the performance of the supply chain. Using da ta collected from machine tool manufacturers around the world, the various behaviours of buyers are examined to see how they induce or mitigate the de gree of uncertainty experienced by suppliers and thus affect suppliers' del ivery performance. In addition, it was investigated how such buyer behaviou rs could further affect the supply chain's ability to perform as expected. The statistical results suggest that many buyer behaviours that have no dir ect effect on buyer's performance can have a significant effect on their su ppliers' performance. Specifically, buyer behaviours directly manifest in s upplier performance and only indirectly manifest in their own performance. This can give the buyer the false impression that the supply base is harmin g performance, when the real problem is the way the buyer manages the suppl y chain. The results vary by region of the world, suggesting that any theor y that links buyer behaviours to supplier performance will need to consider a firm location.