Nachiappan Subramanian
Sourcing complexity factors on contractual relationship: Chinese suppliers’ perspective
Subramanian, Nachiappan; Abdulrahman, Muhammad D.; Rahman, Shams
Authors
Muhammad D. Abdulrahman
Shams Rahman
Abstract
To reduce cost and gain competitive advantage, original equipment manufacturers (OEMs) around the world have continued their aggressive sourcing from China. However, sourcing in China has never been a straightforward process and OEMs face both tangible and intangible sourcing complexities with significant negative impact on both expected positive benefits and their contractual relationships with the Chinese suppliers. We developed sourcing complexity model using comprehensive literature review and multiple case studies in various industries to understand the suppliers’ views on sourcing complexity in China. We employed Analytic hierarchy process technique to prioritise identified complexity factors and to derive managerial insights. Our results indicate that tangible complexity factors highly influence the Chinese suppliers’ contractual relationship with OEM’s. Number of suppliers available to OEM’s to procure a component is identified as a primary dominating tangible factor, while differentiation in technical capabilities and operational practices between OEMs and suppliers represents the second biggest issue for Chinese suppliers in establishing contractual relationship with OEM’s.
Citation
Subramanian, N., Abdulrahman, M. D., & Rahman, S. (in press). Sourcing complexity factors on contractual relationship: Chinese suppliers’ perspective. Production and Manufacturing Research, 2(1), https://doi.org/10.1080/21693277.2014.949361
Journal Article Type | Article |
---|---|
Acceptance Date | Jul 24, 2014 |
Online Publication Date | Aug 14, 2014 |
Deposit Date | Oct 24, 2017 |
Publicly Available Date | Oct 24, 2017 |
Journal | Production and Manufacturing Research |
Electronic ISSN | 2169-3277 |
Publisher | Taylor & Francis Open |
Peer Reviewed | Peer Reviewed |
Volume | 2 |
Issue | 1 |
DOI | https://doi.org/10.1080/21693277.2014.949361 |
Keywords | complexity; contractual relationship; sourcing complexity; suppliers; China |
Public URL | https://nottingham-repository.worktribe.com/output/734207 |
Publisher URL | http://www.tandfonline.com/doi/abs/10.1080/21693277.2014.949361 |
Additional Information | Sourcing complexity factors on contractual relationship: Chinese suppliers’ perspective Nachiappan Subramanian, Muhammad D. Abdulrahman & Shams Rahman Production & Manufacturing Research Vol. 2 , Iss. 1,2014 |
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