The impact of supplier performance measurement systems on supplier performance: A dyadic lifecycle perspective

The purpose of this paper is to empirically investigate the impact of a mature supplier performance measurement system (SPMS) adoption all along its lifecycle phases (i.e. design, implementation, use and review) on the suppliers’ performance.

The research hypotheses have been tested on a final sample of 147 pairs of buyer-supplier responses, collected by means of a dyadic survey involving manufacturing firms and one key supplier of their choice. The research framework has been tested through a structural model using PLS regression.

Considering the joint effect of all the four SPMS phases on supplier performance, the findings show that the system use and review play a prominent effect: the former have a positive impact on supplier quality, delivery and sustainability performance; the latter positively affects supplier delivery, innovation and sustainability. A mature design displays a positive effect on supplier sustainability performance, while a mature implementation results to negatively affect supplier innovation performance. Finally, cost performance is not impacted by any of the four phases.

This study contributes to the open debate regarding the relationship between SPMSs and actual supplier performance improvement. In particular, the lifecycle perspective is introduced to clearly distinguish among each phase of adoption and assess their relative impact on supplier performance. Besides, the dyadic nature of the study allows to investigate different subcomponents of supplier performance jointly considering the buyer company and supplier company perspective, thus achieving a more insightful and robust information.