Title: A resource-based theory of supplier strategy

Authors: Ken I. Kim, Ahmad Syamil, Bhal J. Bhatt

Addresses: Department of Marketing and International Business, College of Business Administration, The University of Toledo, 2801 W. Bancroft St., Toledo, OH 43606–3390, USA. ' Department of Computer and Information Technology, College of Business, Arkansas State University, P.O. Box 130, AR 72467, USA ' We dedicate this article to our colleague Bhal J. Bhatt

Abstract: This article explores resource-based strategies for suppliers of manufactured components and parts for attaining mutually beneficial, sustainable relationships with their customers (i.e., downstream assemblers) and remaining competitive in a dynamic, often hostile environment. Central to our conceptualisation is a two-dimensional framework constructed by supplier capability levels (low, medium, and high) and customer outsourcing needs (market, relational, and partnership). A match between supplier capability levels and customer outsourcing needs is posited to be the key to a sustainable relationship between suppliers and their customers. Attaining this match may often require suppliers to either upgrade or acquire new capabilities. The resources, efforts, and strategies needed toward this end are evaluated.

Keywords: supply chain management; SCM; resource-based strategy; buyer-supplier relationship; automotive industry; supplier strategy; supplier capability; outsourcing needs.

DOI: 10.1504/IJLSM.2007.012073

International Journal of Logistics Systems and Management, 2007 Vol.3 No.1, pp.20 - 33

Published online: 16 Jan 2007 *

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