The Impact of Cycle Time on Supplier Selection and Subsequent Performance Outcomes

Abstract

SUMMARY Cycle time is among the emerging performance criteria for purchasing and supply management. However, little empirical research has been conducted for actually evaluating the impact of cycle time on strategic issues, such as long‐term business relationships and supplier selection and evaluation processes. This study empirically tests the impact of cycle time on supplier selection and on the effectiveness of long‐term relationships with suppliers, as reflected in the commitment and trust developed. Findings indicate that initial cycle time is not a significant predictor of trust and commitment in the context of supplier‐buyer long‐term relationships. However, cycle time reduction along with consistently high quality were found to be significant predictors of trust and commitment in long‐term relationships.