Understanding B2B supplier selection relationships: the case of Taiwan agribusinesses

Understanding B2B supplier selection relationships: the case of Taiwan agribusinesses

Purpose – This paper seeks to investigate the factors impacting on the selection of suppliers in Taiwan agribusiness sector and explore the relative importance of these factors. In addition, it also explores the potential differences based on organizational size and stakeholders (ie buyer versus supplier and management versus operational).

Methodology/Approach – This study is exploratory in nature and involves a two-stage process. Firstly, in-depth interviews were conducted with 10 agribusiness professionals in Taiwan, to determine the relevance of the current literature about the criteria used in the selection of suppliers in the Taiwan agribusiness industry. The second stage involves 16 case studies with 32 interviews conducted, using information gathered from the first stage.

Findings – Findings revealed the support of the 22 selection criteria presented in the preliminary framework as important to influencing an organization’s selection of suppliers in Taiwan agribusiness industry. The findings suggested that Taiwan agribusiness buyers consider the financial position of the suppliers and the quality of their managerial teams as critically important in the supplier selection process. Whilst there was little indication that the desire for business, geographical location, and repair service were regarded as important criteria to selecting suppliers.

Research Implications/Limitations – The findings of this research have added new insights to the existing literature of B2B supplier selection criteria with the identification of two additional criteria (innovativeness and willingness to cooperate). The exploratory nature of this study and the initial development of a framework of supplier selection within the context of Taiwan agribusiness industry had constrained the applicability of the findings to other markets and industries.

Practical Implications – The findings highlighted a list of important selection criteria that agribusiness managers can consider during their supplier selection process. In addition, the findings can assist agribusiness managers from supplying organizations to build upon their organizations’ strengths and capabilities in meeting those important supplier selection criteria so that they can stay ahead in the increasingly competitive agribusiness industry.

Originality/Value/Contribution – By focusing on the agribusiness sector, this study provides insights into a much neglected industry where supplier selection is a crucial issue to many agribusinesses, particularly from the perspective of major buyers in value-adding agribusiness enterprises.

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