This paper suggests that the determinants of successful collaborative performance can be found from the supply chain of Samsung Engineering, which is one of the worldwide leading companies in the plant engineering market. The plant engineering industr...
This paper suggests that the determinants of successful collaborative performance can be found from the supply chain of Samsung Engineering, which is one of the worldwide leading companies in the plant engineering market. The plant engineering industry requires collaborative relationship between buyers and suppliers. The purpose of this paper is to study how the buying company manages the relationship with suppliers in order to improve collaborative performance. We in this study examine both Samsung Engineering’s practices and theories in the area of supplier relationship management in the context of supply chain management. Based on the case study of buyer-supplier collaboration practices of Samsung Engineering, we extract supplier promotion, incentives, exploratory and exploitative collaboration are the important factors influencing the collaborative performance. Based on the relevant literature, we develop hypotheses and test them using the survey data obtained from Samsung Engineering suppliers. The results indicate that exploitative collaboration improves collaborative performance while exploratory collaboration influences the quality of collaborative relationship. Incentive policy enhances both collaborative exploration and exploitation. The supplier promotion policy strengthens exploration, but not exploitation. These findings offer the significant implications leading to successful implementation of collaborative supply chain management in the context of plant engineering area.