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Analysing the effect of uncertain environmental factors on supplier-buyer strategic partnership (SBSP) by using structural equation model (SEM)

Author

Listed:
  • Rakesh D. Raut
  • Harsh V. Bhasin
  • Sachin S. Kamble

Abstract

Supplier-buyer strategic partnerships (SBSP) are widely considered as an effective source of competitive advantage by firm's operating in turbulent business environments. The objective of this research is to empirically investigate whether different dimensions of environmental uncertainty have different impacts on the SBSP. The uncertain environmental factors, namely business cost, labour availability, competitive hostility, government laws and regulations, political environment, dynamism in the market (volatility and complexity) impact SBSP including specific investments. The study is based on the reposes of 270 purchasing managers from 54 manufacturing and process industries from India (Mumbai region). A structural equation modelling was used to analyse the SBSP. The results suggest a statistically significant relationship between the selected uncertain business environmental factors and the SBSP. The primary contribution of this research lies in its ability to offer practically relevant insights to aid managers in considering whether or not strategic partnership are likely to be influenced under their particular types of environmental uncertainty.

Suggested Citation

  • Rakesh D. Raut & Harsh V. Bhasin & Sachin S. Kamble, 2012. "Analysing the effect of uncertain environmental factors on supplier-buyer strategic partnership (SBSP) by using structural equation model (SEM)," International Journal of Procurement Management, Inderscience Enterprises Ltd, vol. 5(2), pages 202-228.
    • Handle: RePEc:ids:ijpman:v:5:y:2012:i:2:p:202-228
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    Cited by:

    1. Ting Chi, 2015. "Business Contingency, Strategy Formation, and Firm Performance: An Empirical Study of Chinese Apparel SMEs," Administrative Sciences, MDPI, vol. 5(2), pages 1-19, March.

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