Partnerships in Practice : Value Creation and Internal Constraints in Supplier Partnerships

Sammanfattning

Engaging in strategic supplier partnership has been acknowledged as vital for the success and performance of manufacturing companies, and an important mechanism for value creation. However, despite being a widely adopted practice, there remains confusion regarding what constitutes a supplier partnership and under what conditions their value can be realized. This study explores the attributes of supplier partnerships, as well as the potential hinders for exploiting their value and is conducted as a qualitative case study at Toyota Material Handling Manufacturing Sweden (TMHMS). Empirical data was collected mainly from the Purchasing Department, as well as two suppliers, and was analyzed using a thematic analysis. The findings revealed that a supplier partnership at TMHMS is characterized by a highly developed mutual commitment, a strong dedication to continuous improvement and a high degree of information sharing. Internal hinders for value to be exploited in partnerships were also revealed: lack of internal information sharing, lack of internal role distribution and differing views on how supplier partnerships should be understood and managed within the organization. While supplier partnerships as defined in this study were found to constitute a favourable relational foundation for value creation across several dimensions, the ability to exploit such value was ultimately found to depend not only on internal capabilities but also on the network context. Hence, the importance of each specific attribute may vary across relationships, making it essential to approach each relationship as unique.