Determinants of supplier-retailer collaboration: Evidence from an international study

Purpose - This paper aims to increase the understanding of social and technical factors contributing to successful supplier-retailer collaboration. The objective is to identify, the necessary supply chain architecture for supplier-retailer collaboration, and demonstrate how it influences supply chain performance. Design/methodology/approach - Five pairs of suppliers and retailers in Taiwan were studied with each pair serving as a unit of analysis. In each case, data pertaining to eight relationship variables critical to collaboration between supplier and retailer were collected and analyzed. A comprehensive supplier-retailer relationship model is developed with five specific research positions: supplier-retailer business relationship (interdependence, intensity, trust) affects long-term orientation; supplier-retailer business relationship affects supply chain architecture (information sharing, inventory system, information technology capabilities, coordination structure); long-term orientation affects supply chain architecture; supply chain architecture affects the level of supplier-retailer collaboration; and supplier-retailer collaboration enhances supplier-retailer performance. Findings - Overall, with the exception of duration, all variables are found to be critical to supplier-retailer collaboration. It is the intensity, as opposed to the duration, of the relationship that influences the retailer-supplier relationship. Originality/value - The proposed model demonstrates how eight critical social and technical variables are directly and/or indirectly related. This knowledge will enable the management of supplier-retailer networks to produce better supply chain collaboration and performance.