Supply chain relationships between first and second tier suppliers in South African automotive supply chains: A focus on trust
Background: The automotive industry is characterised by a network of long term collaborative agreements between component suppliers and assemblers. For collaboration to be successful trust between the supply chain partners is vital. Although many variables influence the efficiency of collaborative r...
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doaj-61bc386ef3574889a70ee25a1ef98d212020-11-24T23:55:35ZengAOSISJournal of Transport and Supply Chain Management2310-87891995-52352015-10-0191e1e810.4102/jtscm.v9i1.205139Supply chain relationships between first and second tier suppliers in South African automotive supply chains: A focus on trustAletta S. Tolmay0Johanna A. Badenhorst-Weiss1Department of Business Management, University of South AfricaDepartment of Business Management, University of South AfricaBackground: The automotive industry is characterised by a network of long term collaborative agreements between component suppliers and assemblers. For collaboration to be successful trust between the supply chain partners is vital. Although many variables influence the efficiency of collaborative relationships, the human behaviour issues related to culture and trust are often much more difficult to solve. Trust is singled out in this article as a contributor to value in the supply chain relationships. Increased trust leads to more confidence resulting in better collaboration. Objectives: The purpose of the study was to explore collaborative relationships between first and second tier suppliers (component manufacturers) in automotive supply chains in South Africa and the role of trust in the relationship value. Method: This quantitative study had been conducted amongst members of the National Association for Automobile Component and Allied Manufacturers of South Africa (NAACAM), who are suppliers to the large automotive assemblers. The research utilised closed ended questions to obtain the perceptions of managers in automotive component manufacture regarding trust and relationship value with their best suppliers. Results: With a linear regression model it was found that there is a high degree of trust in the collaborative relationships between first and second tier suppliers of components in the automotive industry in South Africa. Conclusion: The automotive industry is one of the most successful industries in South Africa. They compete globally and apply best practices, particularly those in supply chain management. The industry is characterised by networks of collaborative relationships on different levels. These relationships seem to be successful as they are based on trust.https://jtscm.co.za/index.php/jtscm/article/view/205collaborative relationships, first and second tier suppliers, automotive indutsry, South Africa, trust |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Aletta S. Tolmay Johanna A. Badenhorst-Weiss |
spellingShingle |
Aletta S. Tolmay Johanna A. Badenhorst-Weiss Supply chain relationships between first and second tier suppliers in South African automotive supply chains: A focus on trust Journal of Transport and Supply Chain Management collaborative relationships, first and second tier suppliers, automotive indutsry, South Africa, trust |
author_facet |
Aletta S. Tolmay Johanna A. Badenhorst-Weiss |
author_sort |
Aletta S. Tolmay |
title |
Supply chain relationships between first and second tier suppliers in South African automotive supply chains: A focus on trust |
title_short |
Supply chain relationships between first and second tier suppliers in South African automotive supply chains: A focus on trust |
title_full |
Supply chain relationships between first and second tier suppliers in South African automotive supply chains: A focus on trust |
title_fullStr |
Supply chain relationships between first and second tier suppliers in South African automotive supply chains: A focus on trust |
title_full_unstemmed |
Supply chain relationships between first and second tier suppliers in South African automotive supply chains: A focus on trust |
title_sort |
supply chain relationships between first and second tier suppliers in south african automotive supply chains: a focus on trust |
publisher |
AOSIS |
series |
Journal of Transport and Supply Chain Management |
issn |
2310-8789 1995-5235 |
publishDate |
2015-10-01 |
description |
Background: The automotive industry is characterised by a network of long term collaborative agreements between component suppliers and assemblers. For collaboration to be successful trust between the supply chain partners is vital. Although many variables influence the efficiency of collaborative relationships, the human behaviour issues related to culture and trust are often much more difficult to solve. Trust is singled out in this article as a contributor to value in the supply chain relationships. Increased trust leads to more confidence resulting in better collaboration.
Objectives: The purpose of the study was to explore collaborative relationships between first and second tier suppliers (component manufacturers) in automotive supply chains in South Africa and the role of trust in the relationship value.
Method: This quantitative study had been conducted amongst members of the National Association for Automobile Component and Allied Manufacturers of South Africa (NAACAM), who are suppliers to the large automotive assemblers. The research utilised closed ended questions to obtain the perceptions of managers in automotive component manufacture regarding trust and relationship value with their best suppliers.
Results: With a linear regression model it was found that there is a high degree of trust in the collaborative relationships between first and second tier suppliers of components in the automotive industry in South Africa.
Conclusion: The automotive industry is one of the most successful industries in South Africa. They compete globally and apply best practices, particularly those in supply chain management. The industry is characterised by networks of collaborative relationships on different levels. These relationships seem to be successful as they are based on trust. |
topic |
collaborative relationships, first and second tier suppliers, automotive indutsry, South Africa, trust |
url |
https://jtscm.co.za/index.php/jtscm/article/view/205 |
work_keys_str_mv |
AT alettastolmay supplychainrelationshipsbetweenfirstandsecondtiersuppliersinsouthafricanautomotivesupplychainsafocusontrust AT johannaabadenhorstweiss supplychainrelationshipsbetweenfirstandsecondtiersuppliersinsouthafricanautomotivesupplychainsafocusontrust |
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