 Customer Bargaining Power, Strategic Fit, and Supplier PerformanceHsihui Chang, Sheng Liu and Raj Mashruwala Production and Operations Management, 2022, vol. 31, issue 4, 1492-1509 Abstract: Prior studies report mixed evidence on the impact of customers' bargaining power on supplier performance. We shed light on this mixed evidence by considering the moderating role of strategic fit. A strategically aligned supplier can provide long‐term benefits to the customer. As a result, powerful customers may trade off the short‐term benefits obtained through supplier concessions with the long‐term benefits derived from strategic fit. Thus, strategic fit can mitigate the negative impact of customers' bargaining power on supplier performance. We use data on supplier–customer dyads identified using financial disclosures of firms' major customers to examine this research question. We find that a strategic fit between suppliers and their customers on three distinct dimensions (innovation, customer orientation, and efficiency) attenuates the negative association between customers' relative bargaining power and supplier performance. These findings are robust to several sensitivity tests. Date: 2022 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:popmgt:v:31:y:2022:i:4:p:1492-1509 Ordering information: This journal article can be ordered from Access Statistics for this article Production and Operations Management is currently edited by Kalyan Singhal More articles in Production and Operations Management from Production and Operations Management Society |
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