Date of Award
Nance College of Business Administration
Business logistics, Industrial procurement, Marketing -- Decision making, Relationship marketing, Interorganizational relations, Buyer-supplier relationships (BSRs), Consolidated buyer decision-making uncertainty (DMU), Need for cognitive closure (NFCC), Supply chain management (SCM), Supply chain performance (SCP)
Most firms must acquire materials or services from their suppliers. They use these materials or services, add value to them, and sell them to others. Supply disruptions, commonly known as the bullwhip effect, have been a major challenge facing supply chain firms. Although previous research of operational or structural causes of supply disruptions or supply disruption risk created by situational factors and buyer perceptions and associated impacts on supply chain performance has been conducted, it has not linked the relationship of decision-making uncertainty and need for cognitive closure (NFCC) with impacts on SCP. This study identifies and enhances the current operations management (OM) model by creating a new construct (consolidated buyer decision-making uncertainty (DMU)), and integrating the existing construct (NFCC), to model behavioral impacts on supply chain performance (SCP). It references and builds on over 120 literature sources. It targets purchasing managers that are extensively involved in the decision-making processes for purchasing decisions and are responsible for managing supply disruption risk. This study explores the individual's effect on supply chain dynamics by analyzing the information search behavior of supply chain members in a complex decision process. An individual's bounded rationality is inherent in the decision-making process. This study adds to the literature the use of DMU in connection with NFCC. Findings reveal that high NFCC purchasing decision-makers (vs. low NFCC) that are motivated to reduce discomfort associated with DMU, are also motivated to close on a decision. Individuals with high NFCC significantly correlated to increased overall SCP. However, knowledgeable and experienced high NFCC purchasing managers consistently make better purchasing decisions (high SCP) for their firms than less experienced high NFCC purchasing managers. The less experienced high NFCC purchasing managers may need training to better utilize supplier performance facts and data to develop confident
Lee, Yeonyeob, "Decision-Making Uncertainty, Need for Cognitive Closure, and Supply Chain Performance" (2011). ETD Archive. 176.