Inderscience Publishers

The buyer-supplier long-term partnership effects upon the buyer's operational performance in the Taiwan center-satellite factory system

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By undertaking this study, the author has elaborated upon the factors affecting the buyer-supplier long-term partnership. The partnership effects on the buyer's operational performance will also be discussed. The conceptual model is constructed, based on the transactional cost theory and relational exchange literature. Five hypotheses are derived from this model. The data from 123 Taiwan firms were analysed. The results show the following: commitment, coordination and information sharing produces positive effects on establishing a buyer-supplier long-term partnership; commitment is significantly affected by trust; a powerful buyer-supplier long-term partnership is helpful in achieving buyer's operational performance.

Keywords: long-term partnership, trust, commitment, coordination, information sharing, buyer', s operational performance, buyer-supplier relationship, Taiwan, supply chain management, SCM

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