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Long-term Orientation of the Supply Function in the SME Context

Reasons, Determining Factors and Implications

University 'Pablo de Olavide', Spain, jjcamfie{at}upo.es

Yolanda Polo-Redondo

University of Zaragoza, Spain, ypolo{at}unizar.es

In order to increase efficiency and probability of success, firms can now no longer focus solely on managing satisfactory relationships with customers. In an increasingly complex and dynamic economic context it is necessary to identify and manage appropriately all the activities capable of generating value throughout the complete business cycle. For example, there is growing interest in appropriate management of the relationships that companies establish with their suppliers, as the first step towards ensuring that the product complies with the desired standards.This work therefore focuses on the analysis of firm—suppliers relationships, specifically on their temporal orientation.We consider that the context of SMEs differs from that of larger firms, and that, for this reason, it is necessary to analyse their specific situation in depth. So, by means of an exploratory study we identified that generally, these relationships tended to have a long-term orientation, although motivations differed depending on the size of the firm. Subsequently, by means of a confirmatory study we tested an explanatory model of the aforementioned temporal orientation. The implications derived from our study are discussed in the final part of this work.

Key Words: SMEs • supply chain • temporal orientation

International Small Business Journal, Vol. 26, No. 5, 619-646 (2008)
DOI: 10.1177/0266242608094032


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