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Manufacturer price reduction pressure on suppliers is an important contributor to helping a manufacturer maintain a strong competitive position by keeping costs low. The benefits of trusting supplier working relations also help strengthen a manufacturer's competitive position. The purpose of this paper is to determine if manufacturer price reduction pressure and trusting working relations with the pressured suppliers, typically considered to be mutually exclusive, can co‐exist.

A structural equation modeling approach was used to analyze data covering 946 production buying situations involving 279 suppliers and six NA automotive OEMs.

Manufacturer price reduction pressure and trusting working relations with the pressured suppliers, are not mutually exclusive, they can co‐exist.

The research found that it is not the pressure that impacts the manufacturer – supplier relations, but rather it is the manner by which the manufacturer goes about pressuring its suppliers that impacts its supplier working relations. The research, however, does not directly address how a manufacturer can achieve both ends simultaneously.

Manufacturers no longer have to choose between exerting price reduction pressures on suppliers or working to achieve trusting relations with suppliers. They can successfully do both. At the same time, suppliers must recognize that these conditions may occur and when applied simultaneously ultimately benefit both parties.

This research adds to the critically under‐researched B2B pricing processes and pricing impact areas, while helping to influence managerial actions, an area in which academic B2B research is considered to be lacking.

In the present study, the authors have explored the research questions, “How do companies in the engineering and automobile manufacturing sector in India determine the coordination strategy with their suppliers?” and “Can we develop a framework which helps the company adopt a particular coordination strategy?” The authors also aimed for developing a generalizable theory of supply chain coordination (SCC) strategy.

The authors have studied upstream SCC practices at eight Original Equipment Manufacturers (OEMs) in the Indian engineering manufacturing and automobile sector and identified 11 types of SCC in three categories of suppliers, namely large, medium and small. Each SCC is characterized by the category of items as the authors found the OEMs follow different strategies for different types of items. Initially, the authors started the study with the objective of strategy discovery, and later on, they prescribed a strategic framework based on the consolidated knowledge that they gathered at the discovery phase. The authors propose a SCC strategy framework consisting of four dimensions, i.e. time horizon, the formality of engagement, price and volume for the upstream supply chain. With the framework, the authors have identified the driving factors for choosing a particular strategy. The authors have found both OEMs and suppliers in India prefer to have a long-term relationship for building trust, which helps both the OEMs and the suppliers to go the extra mile when needed. Apart from large suppliers supplying technology and proprietary items, OEMs prefer to have an informal relationship so that they enjoy flexibility and attain agility. The price and volume dimensions are dependent on who enjoys more bargaining power.

The authors propose a SCC strategy framework consisting of four dimensions, i.e. time horizon, formality of engagement, price and volume for the upstream supply chain. With the framework, the authors have identified the driving factors for choosing a particular strategy. The authors have found that both OEMs and suppliers in India prefer to have a long-term relationship for building trust, which helps both the OEMs and the suppliers to go the extra mile when needed. Apart from large suppliers supplying technology and proprietary items, OEMs prefer to have an informal relationship so that they enjoy flexibility and attain agility. The price and volume dimensions are dependent on who enjoys more bargaining power.

This study made a substantial contribution to the literature by presenting a SCC strategy framework, ISCM (Indian Supply Chain Coordination Model). To the best of the authors’ knowledge, in the literature, there was no concrete framework for analyzing the coordination strategy specific to the Indian situation. The framework proposed has been derived based on empirical findings; hence, it is not a conceptual one. The authors also developed a supply chain typology. This study made a substantial contribution to the literature by presenting a SCC strategy framework, ISCM. To the best of the authors’ knowledge, in the literature, there was no concrete framework for analyzing the coordination strategy specific to the Indian situation. The framework proposed has been derived based on empirical findings; hence, it is not a conceptual one. The authors also developed a supply chain typology.

Although prior research provides evidence that production ramp-up is often disrupted by supplier-related problems, it fails to discuss how the original equipment manufacturer (OEM) and various types of suppliers integrate their functions and operations to secure preparations for production ramp-up. The purpose of this paper is to investigate OEM–supplier integration in a new product development (NPD) project to prepare for production ramp-up.

The results presented in this paper are based on a real-time, longitudinal study of a single collaborative NPD project in the mechanical engineering industry. The NPD project involves seven suppliers and it is carried out in a large Swedish company (the OEM) and fits the theory-elaborating approach of this research.

This study argues that the aspect of timing in OEM–supplier integration, the OEM’s research and development (R&D) attitude toward collaboration and the OEM’s (R&D) operating procedure are challenges affecting the preparation for production ramp-up. The following three mechanisms to facilitate OEM–supplier integration in order to prepare for production ramp-up are also discussed: the mediator’s role, the OEM’s face-to-face meeting at the project level and suppliers’ formal face-to-face meetings with the OEM and internally.

This paper elaborates on and extends prior research on production ramp-up by conducting an empirical analysis that incorporates supplier integration in NPD. It bridges the gap between the literature on production ramp-up and on supplier integration in NPD and clearly indicates that supplier integration is an important prerequisite for successful production ramp-up.

The purpose of this paper is the development of a patent-based supplier portfolio that can be used to evaluate and select suppliers on account of their technological competencies.

In addition to traditional approaches, the authors develop a supplier portfolio that characterizes suppliers according to the similarity between supplier's and OEM's technological competencies as well as their technological broadness. These variables are measured on the basis of patents, which constitute a valuable source of information in technology-driven industries. Contrary to existing binary measurement approaches, the authors’ portfolio uses semantic analyses to make use of the specific information provided in the patents' texts. The authors test this method in the field of gearings, which is a key driver for the automotive industry.

The authors identify six generic positions, characterizing specific risks for an OEM to become either technologically dependent or dependent on suppliers' production capacities. For each position the authors develop specific management strategies in face of the aforementioned risks. The approach helps OEMs navigate in the competitive landscape based on the most recent and publicly available information medium.

This work explicitly applies the construct of technological competencies to supplier evaluation and selection on the basis of portfolio approaches. Furthermore, the authors improve the use of patents for supplier evaluation in two respects: First, the authors analyze OEMs and upstream suppliers on an organizational level. Second, the authors utilize advanced semantic analysis to generate variables for the measurement of the criteria mentioned above.

The purpose of this paper is to investigate the effect of original equipment manufacturing (OEM) suppliers’ electronic integration with global customers on their capability widening, following the literature on electronic integration, firm innovativeness, product modularity and dynamic capabilities. It also examines the moderating roles of supplier innovativeness and product modularity in the proposed relationship.

This study conducts empirical examination on a sample of OEM suppliers in Taiwan. It collects 201 self-reported responses via mailed surveys of 1,069 electronics companies listed in the 5000 Largest Firms in Taiwan, and the archival data are obtained from the Taiwan Economic Journal database.

The results show that electronic integration with global customers affects capability widening negatively, whereas supplier innovativeness affects capability widening positively. In addition, product modularity plays a moderating role in the relationship between electronic integration and capability widening.

This study contributes to the electronic integration literature by providing empirical evidences on how OEM suppliers’ electronic integration affects their capability widening. This study also adds to the supply chain management literature by demonstrating the relationship between OEM suppliers’ innovativeness and their move into higher value-added activities, as well as how product modularity interplays with electronic integration between customers and suppliers on suppliers’ capability widening in global supplier‒customer relationships.

For OEM suppliers with a low level of product modularity, they may widen their capabilities by exploring other value-added activities (e.g. original design manufacturing or original brand manufacturing). For OEM suppliers with a high level of product modularity, the improvement of their manufacturing capabilities is a helpful approach to create competitive advantage.

This study is one of the first to examine the interplay between electronic integration and product modularity on capability widening of OEM suppliers from an emerging market. Meanwhile, this study provides support for the relationship between supplier innovativeness and innovative activities in the global supply chain context.

The purpose of this paper is to examine whether original equipment manufacturing (OEM) suppliers can affect the development of buyer competence by manipulating two environmental factors: the development of competence in OEM supplier's external business relationships and the competitive pressure of the OEM supplier environment.

The sample population consisted of 1,000 OEM suppliers in the Taiwanese information technology (IT) industry. Partial least squares analysis was used to examine the causal relationships among the variables.

The empirical results revealed that the pressure of the external environment pushes OEM suppliers to develop competence through external business relationships. This competence in turn affects the development of buyer competence. Furthermore, OEM supplier impact on buyer competence development is positively associated with the importance of OEM supplier in outsourcing relationship.

The paper empirically examines whether the impacts of the OEM supplier derived from different sourced environments play distinct roles in the development of the OEM supplier's power.

This paper explores the process of mutual value creation in a component co-branding relationship between an unknown component supplier and a well-known Original Equipment Manufacturer (OEM). In particular, the purpose of this paper is to investigate the antecedents of parties’ willingness to engage in mutual value creation, thus enriching Grönroos and Helle’s (2010, 2012) model of mutual value creation.

An in-depth longitudinal analysis of a single case study in the cycling wear industry is presented based on data gathered from several sources, including long interviews with managers of a component supplier and an OEM, promotional materials, press releases and articles in cycling-related publications and on web portals, and online conversations among amateur cyclists.

Four antecedents of the willingness to engage in mutual value creation are identified: mutual trust; the perceived easiness of alignment between the supplier’s and OEM’s processes and resources relevant to value creation; the expected creation of a substantial level of additional mutual value; and the expected value gains for each party.

The study analyses only one case in a single industry and adopts a dyadic perspective.

This study suggests that – contrary to the traditional view – when specific antecedents for mutual value creation are present, the component co-branding strategy is available to many innovative small- and medium-sized firms without strong brands.

Beyond enriching Grönroos and Helle’s (2010, 2012) model, this study explains why co-branding relationships can be established even in the absence of a strong component brand.

Supply chain risks significantly endanger small and medium‐sized enterprise (SME‐) suppliers in different currency areas in purchasing and sales. The purpose of this paper is twofold: to describe the concept of natural hedging in supply chains, and to highlight the potentials of natural hedging as a risk prophylaxis and a supplier financing approach.

The paper uses a brief literature review and a conceptual research design, taking the financial and physical component of natural hedging (in this case between an OEM and its SME‐suppliers in the automotive industry) into consideration.

Natural hedging of currency and commodity price fluctuations can contribute to the reduction of SME‐suppliers' supply chain vulnerability, also benefiting an OEM.

This research focuses exclusively on relationships between SME‐suppliers and large OEMs in the automotive industry. Studies of other types of companies and industries, such as the capital goods industry, might reveal divergent practices.

With the natural hedging approach, the paper promotes an innovative concept for better managing risks in supply chains, especially in recessionary times. The concept is a source for supplier financing.

This research shows that a globally active focal firm – an OEM in the automotive industry, for instance – can hedge currency and commodity price risks (financial components), as well as operational supply risks (physical components), by centralizing commodity supply with its SME‐suppliers. It can serve as a basis for future research.

To analyze the impact of the adoption of just‐in‐time (JIT) production systems by different equipment manufacturers (OEMs) on the inventory profiles of their suppliers.

The research is designed to examine five financial measures of inventory management performance over the years 1994‐2004. Three specific industry sectors where OEMs have adopted and implemented JIT principles are studied. These sectors include the automotive, electronics, and aircraft industries. A one factor analysis of variance is employed to the five hypotheses and Tukey's post‐hoc test is used to interpret statistical pairwise differences between level means.

Overall, the research finds that OEM suppliers in the automotive, electronics, and aircraft sectors have shown mixed results in the impact JIT implementation has had on inventory performance measures.

The research focuses on three industrial sectors over approximately a ten year time frame that may limit its generalizability.

The processes that influence the reduction in inventory levels may be in fact more complex and strategic in nature than an OEM adopting a JIT inventory policy. In general, strategic changes within the supplier organization would have to drive process improvements that lead to inventory reductions.

The paper provides focused research in an area that has received little attention in the current literature and is very topical to all academics and business professionals interested or involved in the area of JIT systems.

The purpose of this paper is to examine the buyer–supplier exchange dynamic in terms of the influence of product and market contingencies on the interfirm connectivity, governance and exchange performance of interconnected dyads in multitier supply chains (MSCs).

Using an inductive approach, the authors analyzed the supply network of a high-end motorcycle manufacturer (OEM). Four sets of “interconnected dyads” constituting four embedded units of analysis were considered, each involving the OEM, its tier 1 and corresponding tier 2 suppliers. These interconnected dyads representing four strategic components and their sub-components offer contrasts in terms of product and market contingencies.

This analysis reveals that product and market contingencies influence patterns of dependence among firms. These in turn impact interfirm connectivity (i.e. structural characteristic), and the degree of contract formalization, collaboration and concentration of decision-making power (i.e. governance characteristics) in the interconnected dyads. The authors also found that structural and governance aspects can have mutual influence, leading to satisfactory or unsatisfactory outcomes. Propositions synthesizing the relationships among the constructs are developed.

The constructs and their underlying relationships need to be further refined if we are to devise hypotheses and validate them at a large-scale empirical level.

This is one of the first studies to explore the influence of business contingencies on the complex buyer–supplier exchange dynamic in MSCs having a “beyond the dyad” perspective. The authors address why and how various types of interconnectivity are developed, and how the interplay among interfirm dependence, connectivity and governance influences the suppliers’ performance in the MSCs.