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What type of cooperation with suppliers and customers leads to superior performance?

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  • Brito, Luiz Artur Ledur
  • Brito, Eliane Pereira Zamith
  • Hashiba, Luciana Harumi

Abstract

This research evaluates cooperation with key suppliers and customers, correlating cooperation to financial performance. Four cooperative behaviors represent cooperation as a multidimensional concept and the research explores the effect of each of these different dimensions of cooperation on performance. Results show that not all cooperative behaviors have similar and positive impacts on performance. Flexibility has no significant effect while shared problem solving has a negative effect. The other two cooperative behaviors, information exchange and restraint in the use of power, have positive impacts on performance. Results also indicate that cooperation with customers affects mostly firm growth while cooperation with suppliers affects firm profitability. Based on a survey of 124 packaging manufacturers, the analysis uses CFA (Confirmatory Factor Analysis) to validate the measurement of constructs and multiple regressions to analyze the relationships between the cooperative behaviors and financial performance.

Suggested Citation

  • Brito, Luiz Artur Ledur & Brito, Eliane Pereira Zamith & Hashiba, Luciana Harumi, 2014. "What type of cooperation with suppliers and customers leads to superior performance?," Journal of Business Research, Elsevier, vol. 67(5), pages 952-959.
    • Handle: RePEc:eee:jbrese:v:67:y:2014:i:5:p:952-959
    DOI: 10.1016/j.jbusres.2013.07.015
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    Cited by:

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    2. Yongzhong Yang & Mohsin Shafi, 2020. "How does customer and supplier cooperation in micro-enterprises affect innovation? Evidence from Pakistani handicraft micro-enterprises," Asian Business & Management, Palgrave Macmillan, vol. 19(5), pages 530-559, November.
    3. Soomin Shin & Meehee Cho, 2022. "Green Supply Chain Management Implemented by Suppliers as Drivers for SMEs Environmental Growth with a Focus on the Restaurant Industry," Sustainability, MDPI, vol. 14(6), pages 1-17, March.
    4. Eva Tomášková & Lucie Kaòovská, 2022. "Impact of cooperation flexibility on innovation flexibility in SMEs," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 17(2), pages 533-566, June.
    5. Wu, Lei-Yu & Chen, Po-Yuan & Chen, Kuan-Yang, 2015. "Why does loyalty–cooperation behavior vary over buyer–seller relationship?," Journal of Business Research, Elsevier, vol. 68(11), pages 2322-2329.
    6. Kim, Youngok & Lui, Steven S., 2015. "The impacts of external network and business group on innovation: Do the types of innovation matter?," Journal of Business Research, Elsevier, vol. 68(9), pages 1964-1973.
    7. Wu, Shu-Ling & Hsu, Chiu-Ping, 2018. "Role of authenticity in massively multiplayer online role playing games (MMORPGs): Determinants of virtual item purchase intention," Journal of Business Research, Elsevier, vol. 92(C), pages 242-249.
    8. Tingey-Holyoak, Joanne, 2014. "Sustainable water storage by agricultural businesses: Strategic responses to institutional pressures," Journal of Business Research, Elsevier, vol. 67(12), pages 2590-2602.
    9. Pieter van Langen & Gerdje Pijper & Pieter de Vries & Frances Brazier, 2023. "Participatory Design of Participatory Systems for Sustainable Collaboration: Exploring Its Potential in Transport and Logistics," Sustainability, MDPI, vol. 15(10), pages 1-43, May.
    10. Yongzhong Yang & Mohsin Shafi, 0. "How does customer and supplier cooperation in micro-enterprises affect innovation? Evidence from Pakistani handicraft micro-enterprises," Asian Business & Management, Palgrave Macmillan, vol. 0, pages 1-30.
    11. Schultz, Ainslie E. & Lamberton, Cait & Nielsen, Jesper H., 2017. "Does pulling together lead to falling apart? The self-regulatory consequences of cooperative orientations for the self-reliant," Journal of Business Research, Elsevier, vol. 81(C), pages 70-79.

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