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Fostering buyer-supplier relationships An analysis of the supplier perspective in offshoring to China

Castelli, Alessandra LU (2016) MGTN59 20161
Department of Business Administration
Abstract
This papers aims at analysing Chinese suppliers’ expectations of interfirm relationship when
Western companies offshore their production to China. The research is motivated by the
underrepresentation of the Chinese suppliers’ perspective in the literature and the
undisputed role of China as the second most popular destination for offshoring. The literature
finds that a successful relationship between buyer and suppliers has a positive effect on
quality and satisfaction. Therefore understanding what Chinese suppliers expect from a
relationship with a Western client would help to improve offshoring relationships and
minimize risks for companies engaging in such strategy. The research has studied the single
case of a Swedish... (More)
This papers aims at analysing Chinese suppliers’ expectations of interfirm relationship when
Western companies offshore their production to China. The research is motivated by the
underrepresentation of the Chinese suppliers’ perspective in the literature and the
undisputed role of China as the second most popular destination for offshoring. The literature
finds that a successful relationship between buyer and suppliers has a positive effect on
quality and satisfaction. Therefore understanding what Chinese suppliers expect from a
relationship with a Western client would help to improve offshoring relationships and
minimize risks for companies engaging in such strategy. The research has studied the single
case of a Swedish manufacturing firm offshoring part of its production to five suppliers located
in People’s Republic of China, Hong Kong and Taiwan. Both buyer and suppliers’ perspectives
have been studied in order to see to what are the suppliers’ expectations and whether the
Western firm meets them through its current outsourcing strategy. The findings suggest that
when offshoring to China the company does not always meet its suppliers expectations on
closeness and mutuality. The Chinese partners value the formation of partnerships oriented
towards future mutual development, rather than connections aimed at maintaining the status
quo. The strategies deployed by the buying firm are, on the other hand, functional to offshore
on non-critical items with the objective of reducing costs and satisfy immediate needs on
quality and delivery. As such, they do not require a big involvement of the buying firm in the
supplier’s operation and fall short of the supplier’s expectations on interfirm relationship.
Moreover, such offshoring strategies are not functional to ease the buyer’s concerns on
quality related issues as they do not guarantee the buyer’s grip on the supplier’s operations.
Keywords: outsourcing, offshoring, subcontracting, supply chain, buyer supplier relationship,
China (Less)
Popular Abstract (Chinese)
目前世界上越来越多公司外包产品。企业与供应商的关系成为双方合作成功的关键,
如果关系很密切的话质量和收益高多了。所以了解供应商的看法和期望让双方成功。
西方理论中, 分析供应商看法和期望的研究很少, 特别是东方供应商。 反过来说,
中国, 香港, 台湾都是流行离岸外包目的地。因此论文目的是分析西方企业与东方供应
商的关系。
论文的话题是瑞典制造公司和它的五个供应商。 我分析了他们的关系来表达双赢因素。
特别感兴趣任何西方企业了解和承诺它的东方供应商的期望。
关键词 : 企业供应商关系, 外包,离岸, 供应链
Please use this url to cite or link to this publication:
author
Castelli, Alessandra LU
supervisor
organization
course
MGTN59 20161
year
type
H1 - Master's Degree (One Year)
subject
language
English
id
8883395
date added to LUP
2016-06-21 16:07:36
date last changed
2016-12-16 16:38:51
@misc{8883395,
  abstract     = {This papers aims at analysing Chinese suppliers’ expectations of interfirm relationship when
Western companies offshore their production to China. The research is motivated by the
underrepresentation of the Chinese suppliers’ perspective in the literature and the
undisputed role of China as the second most popular destination for offshoring. The literature
finds that a successful relationship between buyer and suppliers has a positive effect on
quality and satisfaction. Therefore understanding what Chinese suppliers expect from a
relationship with a Western client would help to improve offshoring relationships and
minimize risks for companies engaging in such strategy. The research has studied the single
case of a Swedish manufacturing firm offshoring part of its production to five suppliers located
in People’s Republic of China, Hong Kong and Taiwan. Both buyer and suppliers’ perspectives
have been studied in order to see to what are the suppliers’ expectations and whether the
Western firm meets them through its current outsourcing strategy. The findings suggest that
when offshoring to China the company does not always meet its suppliers expectations on
closeness and mutuality. The Chinese partners value the formation of partnerships oriented
towards future mutual development, rather than connections aimed at maintaining the status
quo. The strategies deployed by the buying firm are, on the other hand, functional to offshore
on non-critical items with the objective of reducing costs and satisfy immediate needs on
quality and delivery. As such, they do not require a big involvement of the buying firm in the
supplier’s operation and fall short of the supplier’s expectations on interfirm relationship.
Moreover, such offshoring strategies are not functional to ease the buyer’s concerns on
quality related issues as they do not guarantee the buyer’s grip on the supplier’s operations.
Keywords: outsourcing, offshoring, subcontracting, supply chain, buyer supplier relationship,
China},
  author       = {Castelli, Alessandra},
  language     = {eng},
  note         = {Student Paper},
  title        = {Fostering buyer-supplier relationships An analysis of the supplier perspective in offshoring to China},
  year         = {2016},
}