The Effect of Buyer –Sub-Supplier Strategic Consensus on Sub-Supplier Performance

This paper aims at investigating the effect of inter-organizational strategic consensus on a strategy group level between buyer and sub-supplier regarding its effect on sub-supplier performance. The authors analyze empirical connected multi-tier data (matched-triplets) within a structural equation model applying Bayesian estimation of parameters. This analysis takes into account both a competitive method consensus and consensus on objectives between supply chain actors on category group level, sub-supplier performance (regarding on-time delivery and quality) under the influence of relevant contingency factors. Results confirm a cause-effect between buyer-sub-supplier consensus on objectives on category group level and sub-supplier performance regarding quality and on-time delivery. Furthermore results indicate, that inter-organizational strategic consensus on objectives between buyer and sub-supplier on category group level fully mediates the effect of buyer-sub-supplier competitive method consensus on sub-supplier performance.