Organization Structure and Service Capabilities as Predictors of Supply Chain Performance: B2B Seller’s Perspective

Abstract

In buyer-seller exchanges the seller not only provides the goods and service but also transfers its organization capabilities on to the buying firm. Improper selection and usage of these capabilities may reduce the seller’s sustainable competitive edge in future transactions in this supply chain. Through field interviews and Resource Based View literature, the authors propose and test a model linking organization structure, service capabilities, and seller’s satisfaction and performance in business-to-business exchanges. Based on eighty-seven responses, the results indicate that autonomous structure had a positive impact on all three service capabilities. Formalization had a positive influence on only logistics service capability. The service capabilities had a direct impact only on satisfaction. The supply chain performance link in the model was mediated through satisfaction.