THE MATRIX FOR ASSESSING THE INFLUENCE OF SUPPLIER RELATIONSHIPS AND ORGANIZATIONAL POSITIONING ON VALUE CREATION: A CASE STUDY OF SMALL AND MEDIUM-SIZED DAIRY COOPERATIVES IN SOUTHEASTERN POLAND
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Abstract
The article aims to propose a method for evaluating the organization’s relations with suppliers and its positioning in relation to suppliers based on the SP-SR matrix.
Research Design & Methods: The study employs a novel method of assessing the organization’s relationships with suppliers and its position in relation to suppliers, developed in the SP-SR matrix. An empirical verification of changes in the organization’s relations with suppliers, using the SP-SR matrix, was developed on the basis of the results of direct interviews conducted with senior management representatives of dairy cooperatives from the of south-eastern Poland voivodships, using an interview questionnaire.
The analysis of the data utilizing the SP-SR matrix revealed that the position of all analyzed cooperatives remained unchanged after a period of three years, but it was observed that the relationship with suppliers in one cooperative underwent a transformation.
Implications/Recommendations: The SP-SR matrix serves as a valuable tool for top managers to ascertain the extent to which their relations with suppliers and their positioning towards them contribute to the organizational value creation. This matrix is particularly significant as it provides crucial insights into the evolution of strategic supplier relationships and positioning over the years. The matrix can also be instrumental for organizations seeking to evaluate if their current supplier relationships are impacting the value creation, or if adjustments to their supplier relationship strategy are necessary to align with the adopted business model to achieve the desired level of strategic supplier relationships. In addition, the matrix allows to assess the company’s positioning in relation to strategic suppliers and, if needed, to implement appropriate changes to improve these relations, particularly in the process of creating a sustainable enterprise.
An author’s matrix was established to evaluate the impact of relations with suppliers and organization’s position towards them on value creation. The SP-SR matrix locates the company in areas that are the resultant of its stance towards suppliers (SP) and its relations with them (SR). This knowledge is particularly significant for practical applications, as it provides insights into the organization’s ability to create value by shaping appropriate relationships with suppliers and positioning itself effectively in relation to them.
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