Supplier performance measurement systems: Communication and reaction modes

The paper examines the dynamics arising from the adoption of supplier performance measurement systems along the supply chain, specifically considering: (1) the way the buyer company communicates the performance information to the supplier and (2) the way the supplier reacts to the performance reported. The empirical investigation consists of multiple case studies, including nine big multinational companies within three tiers of the automotive supply chain: Elaborating on the theoretical nuance of Signalling Theory, four different communication modes from the buyer side (measuring actor – the Signaller) and three different reactions from the supplier side (measured actor – the Receiver) have been identified, each emerging under different circumstances. The relationship among the communication and reaction modes along the supply chain is critically discussed.