A South African renewable energy firm wants to improve the performance of its inverter supplier. The buyer’s engineering team is prepared to assist, but internal managers argue that supplier development is “extra overhead” and that the company should not spend resources improving another firm’s operation. The supplier has not yet been approached. What barrier is depicted in this scenario?

Question

Answer

A supplier-specific barrier, because the supplier is refusing to allocate technical staff to the improvement project.

Answer

A buyer–supplier interface barrier, because both firms are withholding confidential process and cost information.

Answer

A buyer-specific barrier, because the buyer has not yet accepted the internal value of investing in supplier development.

Answer

A market-risk barrier, because the supplier may use the buyer’s technical knowledge to serve competitors.

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A South African renewable energy firm wants to improve the performance of its in...

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