Attainment discrepancy: its influences on the firm's strategic changes to supplier-related activities

This study draws the behavioral theory of the firm (BTOF) to identify how attainment discrepancy influences decision makers of firms on making strategic changes to their supplier-related activities, including the number and the level of differentiation of their suppliers, and their supplier development, supplier involvement, and information sharing activities. The study has been divided into two parts. The first part used surveys to collect quantitative data to test 10 hypotheses. An insufficient sample of 15 responses was obtained. Though the statistical analyses failed to draw any solid conclusions, relevant findings provided information that was partially consistent with the common assumptions of firm behaviors. The second part of the study took interviewing approach to collect qualitative data from 6 manufacturing firms from 3 different industrial categories. These interview data have supported the formulation of 9 propositions, confirming that a negative attainment discrepancy of the firm leads to its strategic changes to supplier-related activities; whereas a positive attainment discrepancy of the firm generates the unlikelihood of decision makers in making any further changes. Despite the theoretical and practical implications of this study, future studies with larger sample size would be needed to test and validate the conceptual model/framework.