Skip to main content
SpringerLink
Log in

Supply Chain Relationships for Customer Satisfaction in China: Interdependence and Cooperative Goals

  • Published:
Asia Pacific Journal of Management Aims and scope Submit manuscript

Abstract

This study develops a model based on Deutsch’s theory of cooperation and competition to clarify the supply chain relationships and interactions that contribute to customer satisfaction. Results of structural equation analyses suggest that organizations and suppliers and organizations and distributors who recognize each other’s importance develop cooperative rather than competitive and independent goals. With cooperative goals, they come to trust each other and work for continuous improvement; these relationships in turn result in the products and service that satisfy customers. Results were interpreted as suggesting that cooperative goals are an important basis for developing effective supply chain partnerships in Asia and perhaps in other regions as well.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • O. Andersen and A. Buvik, “Inter-firm co-ordination: International versus domestic buyer-seller relationships,” Omega, vol. 29, no. 2, pp. 207–219, 2001.

    Article  Google Scholar 

  • A. Ansari and B. Modarress, “JIT brings problems and solutions,” Purchasing World, vol. 34, no. 3, pp. 47–50, 1990.

    Google Scholar 

  • B.J. Avolio, F.J. Yammarino, and B.M. Bass, “Identifying common method variance with data collected from a single source,” Journal of Management, vol. 17, pp. 571–587, 1991.

    Google Scholar 

  • J.B. Barney and M.H. Hansen, “Trustworthiness as a source of competitive advantage,” Strategic Management Journal, vol. 15, pp. 175–190, 1994.

    Google Scholar 

  • W.K. Balzer and L.M. Sulsky, “Halo and performance appraisal research: A critical examination,” Journal of Applied Psychology, vol. 77, pp. 975–985, 1992.

    Article  Google Scholar 

  • A.G. Bedeian, “The Dean’s disease: How the dark side of power manifest itself in the office of Dean,” Academy of Management Learning & Education, vol. 1, pp. 164–173, 2002.

    Google Scholar 

  • P.M. Bentler and E.J.C. Wu. EQS for Windows user’s guide. Multivariate Software, Inc., Encino, CA, 1995.

    Google Scholar 

  • L.L. Berry, On Great Service: A Framework for Action. The Free Press: New York, 1995.

    Google Scholar 

  • R.W. Brislin, “Back-translation for cross-cultural research,” Journal of Cross-Cultural Psychology, vol. 1, pp. 185–216, 1970.

    Google Scholar 

  • S.W. Brown, E. Gummesson, B. Edvardsson, and B. Gustavsson, Service quality: Multidisciplinary and Multinational Perspectives. Lexington Books: Lexington, Mass, 1991.

    Google Scholar 

  • A. Buvik and O. Andersen, “The impact of vertical coordination on ex post transaction costs in domestic and international buyer-seller relationships,” Journal of International Marketing, vol. 10, pp. 1–24, 2002.

    Article  Google Scholar 

  • R.D. Buzzell and B.T. Gale, The PIMS Principles: Linking Strategy to Performance. New York: The Free Press, 1987.

    Google Scholar 

  • R.B. Chase and D.A. Garvin, “The service factory,” Harvard Business Review, pp. 61–69, July–August, 1989.

  • J. Child and Y. Yan, “Predicting the performance of international joint ventures: An investigation in China,” Journal of Management Studies, vol. 40, pp. 283–320, 2003.

    Google Scholar 

  • S.G. Cohen and D.E. Bailey, “What makes teams work: Group effectiveness research from the shop floor to the executive suite,” Journal of Management, vol. 23, pp. 239–290, 1997.

    Article  Google Scholar 

  • S. Cook, “Cooperative interaction in multiethnic contexts,” in N. Miller and M. Brewer (eds.), Groups in Contact: The Psychology of Desegregation. Academic Press: New York, 1984, pp. 156– 186.

    Google Scholar 

  • S.M. Crampton and J.A. Wagner, “Percept-percept inflation in micro-organizational research: An investigation of prevalence and effect,” Journal of Applied Psychology vol. 79, no.1, pp. 67–76, 1994.

    Article  Google Scholar 

  • M. Crossan and A. Inkpen, “The subtle art of learning through alliances,” Business Quarterly, vol. 60, no. 194, pp. 68–78, 1995.

    Google Scholar 

  • B.G. Dale, D.M. Lascelles, and A. Lloyd, “Supply chain management and development,” in B.G. Dale (ed.), Managing Quality. Prentice Hall: New York, 1994, pp. 292–313.

    Google Scholar 

  • W.E. Deming, The New Economics for Industry, Government, Education. Cambridge: Massachusetts Institute of Technology, Center for Advanced Engineering Study, 1993.

    Google Scholar 

  • L.J. Derose, “Changing procurement practices,” Purchasing World, vol. 31, no. 3, pp. 32–88, 1987.

    Google Scholar 

  • M. Deutsch, The Resolution of Conflict. Yale University Press: New Haven, CT, 1973.

    Google Scholar 

  • M. Deutsch, “Fifty years of conflict,” in L. Festinger (ed.), Retrospections on Social Psychology. New York: Oxford University Press, 1980.

    Google Scholar 

  • J.H. Dyer, “How Chrysler created an American keiretsu,” Harvard Business Review, pp. 42–56, July–August, 1996a.

  • J.H. Dyer, “Specialized supplier networks as a source of competitive advantage: Evidence from the auto industry,” Strategic Management Journal, vol. 17, no. 4, pp. 271–291, 1996b.

    Article  Google Scholar 

  • J.H. Dyer, “Effective interfirm collaboration: How firms minimize transaction costs and maximize transaction value,” Strategic Management Journal, vol. 18, no. 7, pp. 535–556, 1997.

    Article  Google Scholar 

  • J.H. Dyer and W. Chu, “The role of trustworthiness in reducing transaction costs and improving performance: Empirical evidence from the United States, Japan and Korea,” Organization Science, vol. 14, no. 1, pp. 57–68, 2003.

    Article  Google Scholar 

  • P.C. Earley, “Social loafing and collectivism: A comparison of the United States and the People’s Republic of China,” Administrative Science Quarterly, vol. 3, pp. 565–581, 1989.

    Google Scholar 

  • A.V. Feigenbaum, “Managing for tomorrow’s competitiveness today: Designing for America’s quality future with quality leadership,” Journal for Quality and Participation, vol. 19, no. 2, pp. 10–17, 1996.

    Google Scholar 

  • M.L. Fisher, “What is the right supply chain for your product,” Harvard Business Review, pp. 105–116, March–April, 1997.

  • S.C. Frey and M.M. Schlosser, “ABB and Ford: creating value through co-operation,” Sloan Management Review, vol. 35, no. 1, pp. 65–72, 1993.

    Google Scholar 

  • S. Ganesan, “Determinants of long-term orientation in buyer-seller relationships,” Journal of Marketing, vol. 58, pp. 1–19, 1994.

    Google Scholar 

  • D.W. Gerbing and J.C. Anderson, “An updated paradigm for scale development incorporating unidimensionality and its assessment,” Journal of Marketing Research,vol. 25 no. 2, pp. 186–192, 1988.

    Google Scholar 

  • D.H. Gruenfeld, E.A. Mannix, K.Y. Williams, and M.A. Neale, “Group composition and decision making: How member familiarity and information distribution affect process and performance,” Organizational Behavior and Human Decision Processes, vol. 67, pp. 1–15, 1996.

    Article  Google Scholar 

  • R. Gulati, “Familiarity breeds trust? The implications of repeated ties for contractual choice in alliances,” Acad. Management, vol. 138, pp. 85–112, 1995.

    Google Scholar 

  • C. Hardy, N. Phillips, and T.B. Lawrence, “Resources, knowledge and influence: The organizational effects of interorganizational collaboration,” Journal of Management Studies, vol. 40, pp. 320–347, 2003.

    Google Scholar 

  • J.S. Harrison and C.H. St. John, “Managing and partnering with external stakeholders,” Academy of Management Executive, vol. 10, pp. 46–60, 1996.

    Google Scholar 

  • P. Hines, Creating World Class Suppliers: Unlocking Mutual Competitive Advantage. Pitman Publishing: London, 1994.

    Google Scholar 

  • G. Hofstede, “Cultural constraints in management theories,” The Academy of Management Executive, vol. 7, pp. 81–94, 1993.

    Google Scholar 

  • R.D. Ireland, M.A. Hitt, and D. Vaidyanath, “Alliance management as a source of compeititve advantage,” Journal of Management, vol. 28, pp. 413–446, 2003.

    Article  Google Scholar 

  • D.W. Johnson, “Social interdependence: Interrelationships among theory, research and practice,” American Psychologist, vol. 58, pp. 934–945, 2003.

    Article  PubMed  Google Scholar 

  • D.W. Johnson and R.T. Johnson, Cooperation and Competition: Theory and Research. Interaction Book Company: Edina, MN, 1989.

    Google Scholar 

  • D.W. Johnson, G. Maruyama, R.T. Johnson, D. Nelson, and S. Skon, “Effects of cooperative, competitive, and goal structures on achievement: A meta-analysis,” Psychological Bulletin, vol. 89, pp. 47–62, 1981.

    Article  Google Scholar 

  • P. Kale, H. Singh, and H. Perlmutter, “Learning and protection of proprietary assets in strategic alliances: Building relational capital,” Strategic Management Journal, vol. 21, pp. 217–237, 2000.

    Article  Google Scholar 

  • G.K. Kanji and A. Wong, “Business excellence model for supply chain management,” Total Quality Management,vol. 10, no.8, pp. 1147–1168, 1999.

    Article  Google Scholar 

  • N. Kumar, “The power of trust in manufacturer-retailer relationships,” Harvard Business Review, pp. 92–106, Nov-Dec, 1996.

  • N. Kumar, L.W. Stern, and J.C. Anderson, “Conducting interorganizational research using key informants,” Academy of Management Journal, vol. 36, pp. 1633–1652.

  • C.J. Lambe, R.E. Spekman, and S.D. Hunt, “Alliance competence, resources, and alliance success: Conceptualization, measurement, and initial test,” Academy of Marketing Science Journal,vol. 30, pp. 141–159, Spring, 2002.

    Article  Google Scholar 

  • D.M. Lascelles and B.G. Dale, “Study of the quality management methods employed by UK automotive suppliers,” Quality Reliability Engineering International, vol. 4, no.4, pp. 301–9, 1988.

    Google Scholar 

  • D.M. Lascelles and B.G. Dale, “Examining the barriers to supplier development,” The international Journal of Quality and Reliability Management, vol. 7, no. 2, pp. 46–58, 1990.

    Google Scholar 

  • P.R. Laughlin, S.W. VanderStoep, and A.B. Hollingshead, “Collective versus individual induction: recognition of truth, rejection of error, and collective information processing,” Journal of Personality and Social Psychology, vol. 61, pp. 50–67, 1991.

    Article  Google Scholar 

  • K. Leung, “Negotiation and reward allocations across cultures,” In P. C. Earley and M. Erez (eds.), New perspectives on international industrial/organizational psychology, Jossey-Bass: San Francisco, 1997.

    Google Scholar 

  • T.J. Levesque and G.H. McDougall, “Customer dissatisfaction: The relationship between types of problems and customer response,” Revue Canadienne des Sciences de/Administration—Canadian Journal of Administrative Science, vol. 13, no. 3, Sept., pp. 264–276, 1996.

    Google Scholar 

  • R.J. Lewicki, D.J. McAllister, and R.J. Bies, “Trust and distrust: New relationships and realities,” The Academy of Management Review, vol. 23, no. 3, pp. 438–458, 1998.

    Google Scholar 

  • E.D. Love and A. Gunasekaran, “Learning alliances: A customer-supplier focus for continuous improvement in manufacturing,” Industrial and Commercial Training, vol. 31, no. 3, pp. 88, 1999.

    Article  Google Scholar 

  • N.R.F. Maier, Problem-Solving and Creativity in Individuals and Groups, Belmont. Brooks/Cole: CA, 1970.

    Google Scholar 

  • J. Mohr and R. Spekman, “Characteristics of partnership success: Partnership attributes, communication behavior and conflict resolution techniques,” Strategic Management Journal, vol. 15, pp. 135–52, 1994.

    Google Scholar 

  • R.M. Morgan and S. Hunt, “The commitment-trust theory of relationship marketing,” Journal of Marketing, vol. 58, no.3, pp. 20–39, 1994.

    Google Scholar 

  • K.R. Murphy, R.A. Jako, and R.L. Anhalt, “Nature and consequences of halo error: A critical analysis,” Journal of Applied Psychology, vol. 78, pp. 218–229, 1992.

    Google Scholar 

  • J. Nunnually, Psychometric Theory, 2d ed. McGraw-Hill: New York, 1978.

    Google Scholar 

  • A. Parkhe, “Strategic alliance structuring: A game theoretic and transaction cost examination of interfirm cooperation,” Acacdemy of Management Journal, vol. 36, pp. 794–829, 1993.

    Google Scholar 

  • T. Peters, “Restoring American competitiveness: Looking for new models of organization,” Academy of Management Executive, vol. 2, pp. 103–109, 1988.

    Google Scholar 

  • J. Pfeffer, “Understanding power in organizations,” California Management Review, vol. 34, pp. 29–50, 1992.

    Google Scholar 

  • M. Porter, Competitive Advantage: Creating and Sustaining Superior Performance, Free Press: New York, NY, 1985.

    Google Scholar 

  • B.H. Raven, “Influence, power, religion and the mechanisms of social control,” Journal of Social Issues, vol. 55, pp. 161–186, 1999.

    Article  Google Scholar 

  • A. Rindfleisch and C. Moorman, “The acquisition and utilization of information in new product alliances: A strength-of-ties perspective,” Journal of Marketing, vol. 65, no. 2, pp. 1–18, 2001.

    Article  Google Scholar 

  • B. Schneider and D.E. Bowen, “Employee and customer perceptions of service in banks: A replication and extension,” Journal of Applied Psychology, vol. 70, pp. 423–433, 1985.

    Article  Google Scholar 

  • J.S. Shraguer and T.M. Osberg, “The relative accuracy of self-predictions and judgments by others in psychological assessment,” Psychological Bulletin, vol. 90, pp. 322–251, 1986.

    Google Scholar 

  • P.E. Spector, “Method variance as an artifact in self-reported affect and perceptions at work: Myth or significant problem,” Journal of Applied Psychology, vol. 72, pp. 438–443, 1987.

    Article  Google Scholar 

  • P.E. Spector, “A consideration of the validity and meaning of self-report measures of job conditions,” In C. L. Cooper and I. T. Robertson (eds.), International Review of Industrial and Organizational Psychology. Chichester, Wiley, pp. 123–151, 1992.

    Google Scholar 

  • P.E. Spector and M.T. Brannick, “The nature and effects of method variance in organizational research,” in C. L. Cooper and I. T. Robertson (eds.), International Review of Industrial and Organizational Psychology, pp. 249–274, 1995.

  • M.B. Stanne, D.W. Johnson, and R.T. Johnson, “Does competition enhance or inhibit motor performance: A meta-analysis,” Psychological Bulletin, vol. 125, pp. 133–154, 1999.

    Article  CAS  PubMed  Google Scholar 

  • J.W. Thibaut and H.H. Kelley, The Social Psychology of Groups. Wiley: New York, 1969.

    Google Scholar 

  • D. Tjosvold, “Effects of the approach to controversy on superiors’ incorporation of subordinates’ information in decision making,” Journal of Applied Psychology, vol. 67, pp. 189–193, 1982.

    Article  Google Scholar 

  • D. Tjosvold, “Implications of controversy research for management,” Journal of Management, vol. 11, pp. 21–37, 1985.

    Google Scholar 

  • D. Tjosvold, “The cooperative and competitive goal approach to conflict: Accomplishments and challenges,” Applied Psychology: An International Review, vol. 47, pp. 285–313, 1998.

    Article  Google Scholar 

  • D. Tjosvold, “Cooperation and competitive dynamics within and between organizational units,” Human Relations, vol. 41, pp. 425–436, 1988.

    Google Scholar 

  • D. Tjosvold, I.R. Andrews and H. Jones, “Cooperative and competitive relationships between leaders and their subordinates,” Human Relations, vol. 36, pp. 1111–1124, 1983.

    Google Scholar 

  • D. Tjosvold, I.R. Andrews and Struthers, “Leadership influence: Goal interdependence and power,” Journal of Social Psychology, vol.132, pp. 39–50, 1991.

    Google Scholar 

  • D. Tjosvold and M.M. Tjosvold, “Cooperation theory, constructive controversy, and effectiveness: Learning from crises,” in R. A. Guzzo and E. Salas (eds.), Team Effectiveness and Decision Making in Organizations, Jossey-Bass: San Francisco, 79–112, 1995.

    Google Scholar 

  • D.A. Toni and G. Nassimbeni, “Just-in-time purchasing: An empirical study of operational practices, supplier development and performance,” Omega, vol. 28, no. 6, pp. 631–651, 2000.

    Article  Google Scholar 

  • H.C. Triandis, “Cross cultural studies of individualism and collectivism,” in J. J. Berman (ed.), Nebraska Symposium on Motivation, vol. 37, pp. 41–133, 1989.

  • H.C. Triandis, C. McCusker, and C.H. Hui, “Multimethod probes of individualism and collectivism,” Journal of Personality and Social Psychology, vol. 59, pp. 1006–1020, 1990.

    Article  Google Scholar 

  • A. H. Van de Ven, A.H. Delbecq, and Jr. R. Koening, “Determinants of coordination modes within organizations,” American Sociological Review, vol. 41, pp. 322–338, 1976.

    Google Scholar 

  • B. Uzzi, “Social structure and competition in interfirm networks: The paradox of embeddedness,” Administrative Science Quarterly, vol. 42, pp. 35–67, 1997.

    Google Scholar 

  • W. Watson, L. Michaelsen, and W. Sharp, “Member competence, group interaction, and group decision making: A longitudinal study,” Journal of Applied Psychology, vol. 76, pp. 803–809, 1991.

    Article  Google Scholar 

  • E. Weldon, K.A. Jehn, and P. Pradhan, “Processes that mediate the relationship between a group goal and improved group performance,” Journal of Personality and Social Psychology, vol. 61, pp. 555–569, 1991.

    Article  CAS  PubMed  Google Scholar 

  • O.E. Williamson, The Economic Institutions of Capitalism. Free Press: New York, 1985.

    Google Scholar 

  • O.E. Williamson, “Comparative Economic Organization: The Analysis of Discrete Structural Alternatives,” Administrative Science Quarterly,vol. 63, pp. 269–296, 1991.

    Google Scholar 

  • J.P. Womack and D.T. Jones, Lean Thinking: Banish Waste and Create Wealth in Your Corporation. Simon and Schuster, New York: 1996.

    Google Scholar 

  • A.S.H. Wong, D. Tjosvold, and Z.Y. Yu, “Organizational partnerships in China: Self-interest, goal interdependence, and opportunism,” Journal of Applied Psychology, (in press).

  • D.J. Wood and B. Gray, “Towards a comprehensive theory of collaboration,” Journal of Applied Behavioral Science,vol. 27, no.2, pp. 139–62, 1991.

    Google Scholar 

  • H. Yli-Renko, E. Autio, and H.J. Sapienza, “Social capital, knowledge acquisition, and knowledge exploitation in young technology-based firms,” Strategic Management Journal, vol. 22, nos. 6/7, pp. 587–613, 2001.

    Article  Google Scholar 

  • R. Zemke and D. Schaaf, The Service Edge: 101 Companies that Profit from Customer Care, New American Library: New York, 1989.

    Google Scholar 

  • M. Zeng, and Z.P. Chen, “Achieving cooperation in multiparty alliances: A social dilemma approach to partnership management”. Academy of Management Review, vol. 28, pp. 587–605, 2003.

    Google Scholar 

  • C. Zhang, S.T. Cavusgil, and A.S. Roath, “Manufacturer governance of foreign distributor relationships: Do relational norms enhance competitiveness in the export market?” Journal of International Business Studies, vol. 34, pp. 550–556, 2003.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Lingnan University, Tuen Mun, Hong Kong

    Alfred Wong & Dean Tjosvold

  2. Shanghai Jiaotong University, Shanghai, China

    Pengzhu Zhang

Authors
  1. Alfred Wong
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Dean Tjosvold
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Pengzhu Zhang
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Alfred Wong.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Wong, A., Tjosvold, D. & Zhang, P. Supply Chain Relationships for Customer Satisfaction in China: Interdependence and Cooperative Goals. Asia Pacific J Manage 22, 179–199 (2005). https://doi.org/10.1007/s10490-005-1254-0

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10490-005-1254-0

Keywords

Search

Navigation