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Preferred customer status with key suppliers and its effect on sustainability initiatives

Karreman, Vince (2022) Preferred customer status with key suppliers and its effect on sustainability initiatives.

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Abstract:Last years saw a shift in the buyer-supplier relationship. Buyers are competing among each other to become a preferred customer of key suppliers. This study provides empirical evidence towards previous literature on the antecedents and benefits of supplier satisfaction and preferred customer status. The study also looked at whether preferred customer status has any effect on sustainability initiatives between buyers and suppliers. A case study at a buying company and five of its key suppliers has been conducted through interviews. The results reveal that preferred customer status has a positive influence on sustainability initiatives between buyers and suppliers, leading to more collaboration between the parties and an increased willingness by suppliers to collaborate with the buyer on these matters. The converse effect that sustainability performance by the buyer is found to not be an antecedent to preferred customer status. What was also discovered was that the suppliers awareness and willingness to collaborate on sustainability initiatives differed dependent on the general interest on sustainability of their geographical location, with suppliers in European countries more aware and willing when compared to Asian suppliers.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Link to this item:https://purl.utwente.nl/essays/91294
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