The role of the buyer’s dependence in the innovation-adaptability relationship: Does culture matter?

Abstract

The purpose of this study is to assess the effect of supply chain innovation (SCI) on firms’ adaptability, incorporating the moderating influences of buyer’s dependence on its key suppliers and the national culture. Survey data was analyzed using hierarchical multiple regression analysis. The results confirm the role of SCI as a driver of adaptability in spite of cultural differences. Nevertheless, the findings reveal a moderated moderation effect of buyer’s dependence and the individualism-collectivism dimension of culture on the innovation-adaptability relationship. In collectivist societies, buyers’ dependence enhanced the impact of SCI on adaptability. However, the innovation impact on adaptability was weakened under conditions of high buyer’s dependence in relatively individualistic societies. The findings emphasize the importance of adopting culturally appropriate supplier relationship management. The insights provided by the study are valuable to all firms engaging in inter-organizational relationships that transcend national boundaries, and of greater value to subsidiaries operating in countries characterized by different cultural values than their holding companies. The inclusion of data from a less researched African country, Sudan, enriches the literature and provides relevant knowledge.

Keywords

• adaptability
• buyer-supplier relationship
• culture
• innovation