The effects of supplier‐to‐buyer identification on operational performance–An empirical investigation of inter‐organizational identification in automotive relationships

Over the past decade conceptual and empirical research in operations management has embraced the idea that collaborative supplier–buyer relationships are a source of competitive advantage for manufacturing firms. Anecdotal evidence from the Japanese and U.S. automotive industry and emerging research suggests that inter‐organizational identification of suppliers with their buyers, termed supplier‐to‐buyer identification, is an unexplored factor of relational advantage. This study presents a model and empirical test that supplier‐to‐buyer identification fosters superior operational performance by enhancing trust, supplier relation‐specific investments, and information exchange. Through a survey of 346 automotive supplier–buyer relationships, the findings show that supplier‐to‐buyer identification directly impacts supplier relationship‐specific investments and information exchange, although most of the latter effect is mediated by trust. The findings also indicate that supplier relation‐specific investments and information exchange play different but complementary roles in influencing operational performance. The results suggest new directions for supplier–buyer relationship research in operations management and important managerial implications.