Buyer-supplier networks: An exploratory study of Taiwanese fastener firms in China

Abstract

This paper investigates the business dynamics and practices of buyersupplier networks of Taiwanese firms in the fastener industry. Five major stages associated with the evolution of the networks are identified: locating, selecting, establishing, maintaining, and transferring. Exploratory interviews with five Taiwanese firms based in China were conducted to probe the relational issues and business practices at each stage. Preliminary results suggest that the establishment and maintenance of long-term relationships with local Chinese suppliers is difficult due to the lackluster commitment of the local Chinese suppliers to invest in long-term, ongoing business relationships, and the emphasis on shortterm gains. Notwithstanding the close cultural and geographic distances as well as language similarities, Taiwanese firms in the fastener industry still find it difficult to engage in strategic procurement within China.