Buyers’ switching intentions in a manufacturing supply chain: a migration theory perspective

The purpose of this paper is to identify the negative impact of an incumbent supplier pushing out a buyer, the positive effect of an alternative supplier pulling a buyer, and the mooring impact that prevents a buyer from switching to a supplier in terms of the push-pull-mooring (PPM) model of migration theory. In this context, this study considers a buyer as the immigrant, an incumbent supplier as the origin, an alternative supplier as the destination, and inertia as the hesitance to migrate.

This study collected survey data from 148 end-product manufacturers and first-tier suppliers. It tested whether the PPM model fit in a supply chain relationship (SCR) using the partial least squares structural equation modelling approach and SmartPLS package version 2.0.M3.

The results support all hypotheses for causal relationships among factors of cognitive, affect, and behavioural intentions of each PPM effect. This study identifies the relative importance of each effect on a buyer’s intention of switching an existing supplier.

This study presents a new perspective that enhances the understanding of a buyer’s behaviour towards a supplier by applying the PPM model of migration to a manufacturing SCR. It promotes interdisciplinary and integrated views as well as broadens the diversity of the results in the business-to-business context.