Research Conversation with Accounting PhD Candidate Sheng Liu

How can the strategic alignment between supplier and their major customers impact their performance, earnings quality, and auditing?

When supplier and customer follow similar business strategies, they are more likely to have trust and information sharing between them, which can in turn benefit both of them.

Prior literature focuses on how a firm’s strategy impacts its own operation outcomes. However, nowadays, the market competition is not just between individual firms, but between supply chains. Strategic alignment, which significantly contributes to a durable and positive supply chain relationship, plays a critical role in partners accounting-related issues, and gets increasing attention in both researchers and professionals.