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Research on the relationship between customer bargaining power and supplier performance in supplier–customer relationships has flourished in recent decades. This study aims to empirically investigate whether product market overlap (PMO) in a supply chain moderates the effect of customer bargaining power on supplier profitability.

This study uses large-scale secondary data from multiple databases. Econometric panel data techniques are used to test the hypotheses.

The results show that PMO in a supplier–customer relationship and PMO in supplier–supplier relationships both exacerbate the negative effect of the bargaining power of customers on supplier profitability.

This study contributes to the field of supply chain management. This study brings new insights into the ongoing debate surrounding the relationship between customer bargaining power and supplier profitability. The study also contributes to the literature on supply chain networks by showing the impact of indirect supply chain relationships.

The case study has been prepared for management students/business executives to understand electric vehicle (EV) business, business environment, industry competition and strategic planning and strategy implementation.

The size of the Indian passenger vehicle market was valued at US$32.70bn in 2021; it was projected to touch US$54.84bn by 2027 with a Compound Annual Growth Rate (CAGR) of more than 9% during the period 2022–2027. The passenger vehicle industry, a part of the overall automotive industry, was expected to grow at a rapid pace, as the Indian economy was rising at the fastest rate. However, the Government of India (GoI) had put a condition on the growth scenario by mandating that 100% of vehicles produced would be EVs by 2030. Tata Motors (TaMo), a domestic player in the market, had been facing a challenging competitive environment. Although it had been incurring losses, it had successfully ventured into the EV business. TaMo had taken advantage of the first mover by creating an electric mobility business vertical to enable the company to deliver on its aspiration of providing innovative and competitive e-mobility solutions. TaMo leadership had been putting efforts to scale up the electric mobility business, thus, contributing to GoI’s plan for electric mobility. Shailesh Chandra, president of electric mobility business, had a big task in hand. He had to scale up EV production and sales despite insufficient infrastructure for charging and shortages of electronic components for manufacturing.

The case study has been prepared for management students/business executives for strategic management class. It is recommended that the case study is distributed in advance so that the students can prepare well in advance for classroom discussions. Groups will be created to delve into details for a specific question. While one group will make their presentation, the other groups will question the solution provided and give suggestions.

Teaching notes are available for educators only.

CSS 11: Strategy.

The paper tries to investigate the impact of applications of the resource-based view (RBV) theory in the management field to improve the firm’s profitability. Global firms are innovating and adopting new technology, paving the way to improve their performance.

We have adopted RBV in management practices such as marketing, strategy, finance, and human resources.

RBV has gained researchers' attention with the growing competitive world and new challenges to retaining customers and achieving their pre-defined targets. We attempt to identify the issues related to the usage of RBV in management.

Using RBV in management may help researchers create a competitive mindset and be prepared for uncertain challenges in the business world.

Digital labor platforms (DLPs) are transforming the nature of the work for an increasing number of workers, especially through extensively employing automated algorithms for performing managerial functions. In this novel working setting – characterized by algorithmic governance, and automatic matching, rewarding and punishing mechanisms – gig-workers play an essential role in providing on-demand services for final customers. Since gig-workers’ continued participation is crucial for sustainable service delivery in platform contexts, this study aims to identify and examine the antecedents of their working outcomes, including burnout and engagement.

We suggested a theoretical framework, grounded in the job demands-resources heuristic model to investigate how the interplay of job demands and resources, resulting from working in DLPs, explains gig-workers’ engagement and burnout. We further empirically tested the proposed model to understand how DLPs' working conditions, in particular their algorithmic management, impact gig-working outcomes.

Our findings indicate that job resources – algorithmic compensation, work autonomy and information sharing– have significant positive effects on gig-workers’ engagement. Furthermore, our results demonstrate that job insecurity, unsupportive algorithmic interaction (UAI) and algorithmic injustice significantly contribute to gig-workers’ burnout. Notably, we found that job resources substantially, but differently, moderate the relationship between job demands and gig-workers’ burnout.

This study contributes a theoretically accurate and empirically grounded understanding of two clusters of conditions – job demands and resources– as a result of algorithmic management practice in DLPs. We developed nuanced insights into how such conditions are evaluated by gig-workers and shape their engagement or burnout in DLP emerging work settings. We further uncovered that in gig-working context, resources do not similarly buffer against the negative effects of job demands.

This study explores whether targeted microcredit can effectively alleviate households’ multidimensional relative poverty (MdRP) in rural China in the new era following the poverty elimination campaign and discusses it from a gendered perspective.

This study applies a fixed-effects model, propensity score matching (PSM) and two-stage instrumental variable method to two-period panel data collected from 611 households in rural western China in 2018 and 2021 to explore the effects, mechanisms and heterogenous performance of targeted microcredit on households’ MdRP in the new era.

(i) Targeted microcredit can alleviate MdRP among rural households in the new era, mainly by reducing income and opportunity inequality. (ii) Targeted microcredit can promote women’s empowerment, mainly by enhancing their social participation, thereby helping alleviate households’ MdRP. The effect of the targeted microcredit on MdRP is more significant in medium-educated women households and non-left-behind women households. (iii) The MdRP alleviation effect is stronger in villages with a high degree of digitalization.

Learn from the experience of targeted microcredit. Accurately identify poor groups and integrate loan design into financial health and women empowerment. Particularly, pay attention to less-educated and left-behind women households and strengthen coordination between targeted microcredit and digital village strategies.

This study clarifies the effect of targeted microcredit on women’s empowerment and households’ MdRP alleviation in the new era. It also explores its various effects on households with different female characteristics and regional digitalization levels, providing ideas for optimizing microcredit.

The author develops a bilateral Nash bargaining model under value uncertainty and private/asymmetric information, combining ideas from axiomatic and strategic bargaining theory. The solution to the model leads organically to a two-tier stochastic frontier (2TSF) setup with intra-error dependence. The author presents two different statistical specifications to estimate the model, one that accounts for regressor endogeneity using copulas, the other able to identify separately the bargaining power from the private information effects at the individual level. An empirical application using a matched employer–employee data set (MEEDS) from Zambia and a second using another one from Ghana showcase the applied potential of the approach.

This paper investigates the effect of state-society relations on the industrially-related growth paths of developed countries.

It introduces a novel theoretical framework, the state-business-labor relations (SBLR) framework, where four main actors are identified: the state, big businesspersons or tycoons, owners and managers of small and medium enterprises (SMEs) or Entrepreneurs and labor. Different SBLR categories or modes are introduced depending on levels of coordination and power relations between the studied actors. The paper then investigates how these SBLR modes, through adopting various policies targeting the industrial sector, lead to different growth paths. Rather than focusing only on economic growth, this research regards a growth path as a matrix of the performance in long-run growth and equality of distribution.

Using regression analysis and statistical data, the results suggest that the Co-Balanced mode, having higher levels of coordination and lower favoritism, leads to the best growth path among the four introduced modes, especially with its emphasis on high levels of venture capital availability and easiness of starting business. while the Lib-Capture mode, characterized by lower coordination and higher favoritism, seems to have the worst growth path and the best implemented policy for this mode is suggested to be high profit taxes that seem to counter the negative impact of the existing high levels of favoritism.

Despite the important findings that this research has reached, this paper is mainly meant to open a further investigation into this topic and open this dimension that the research on VoC and political economy have under-researched. A deeper investigation of SBLR typologies that could only be possible by having richer datasets with more data on coordination for the whole world, rather than only the advanced economies, would further our understanding of the dynamics that shape the growth paths of different countries of the world.

To realize the best industrial growth path, fighting favoritism should be an important objective. The negative impact of favoritism on innovation could not be disregarded in the eve of the fourth industrial revolution, where innovation is increasingly pivotal to future industrial development. Actively engaging societal groups in the policymaking process is important in addressing their concerns and balancing them at the same time. This should lead to the double benefit of formulating better policies that should foster growth as well as provide better distribution of this growth. High levels of coordination should help in realizing this objective. Yet, this could only be possible if societal groups are free to associate and aggregate their power and when there are means of preventing one actor from gaining more favorite treatment and exclusive influence over policymakers. The presence of both powerful and broadly represented business associations and labor unions and the existence of a government interested in coordinating their efforts-rather than letting itself be controlled by one group at the expense of the others-should help in the realization of the best growth path. Thus, institutional reform that empowers societal groups and enables them to defend their interests as well as fights all forms of corruption should lead to the realization of a more prosperous and equitable industrial development, with the “re-industrialization” of the developed world being no exception. The technological and social challenges of intensive automation and digitalization accompanying the fourth industrial revolution make the envisaged institutional reform more urgent.

This paper is introducing a novel theoretical framework for studying the effect of state-society relations, particularly SBLR, on the industrial growth paths of developed countries. It integrates three important bodies of literature in order to build a more comprehensive understanding of the dynamics of state-society relations and their economic consequences. These are the Varieties of Capitalism (VoC), State-Business Relations (SBR) and Industrial Relations. The SBLR framework differentiates between tycoons and entrepreneurs, an important distinction that often goes unnoticed. Different SBLR categories or modes are introduced, depending on levels of coordination and power relations between the actors. It is proposed in this research that the effect on growth paths goes beyond the simple dichotomy between CMEs and LMEs usually present in the literature of VoC and that power relations provide an essential complementary dimension in explaining this causality.

Research on strategic procurement was mostly focussed on the clients' and main contractors' perspectives, while limited work had been done from a subcontractor's perspective. The paper hypothesises that “strategic capability” influences the latent constructs of power, dependence and collaboration in the main contractor–subcontractor relationship. Therefore, the purpose of this study is to investigate the influence of a subcontractor's strategic capabilities on power, dependence and collaboration.

A survey questionnaire was developed and distributed amongst the subcontractors in Australia, and 212 complete responses were received. Then second order confirmatory factor analysis and partial least square structure equation modelling (PLS-SEM) analysis were performed to test the hypothesised relationships.

The findings support “strategic capabilities” as a construct expressive of a subcontractor's unique market position and good business reputation. The findings also suggest that strategically capable subcontractors enhance their potential for forming partnerships with main contractors through dependence (StratC. → Dep., β = 0.84; Effect Size (ES) = 0.713; p < 0.01), collaboration (StratC. → Collab., β = 0.84; ES = 0.697; p < 0.01) and bargaining power (StratC. → Pow., β = 0.83; ES = 0.672; p < 0.01).

The study is one of its kind to explore the impact of a subcontractor's strategic capability on their bargaining power, dependability and ability to form collaborations. Furthermore, results indicate that the “strategic capabilities” of subcontractors can strongly influence their ability to create “dependence”, foster “collaboration” and exert “power” over a main contractor. The findings can help improve the strategic procurement decision-making processes of both subcontractors and main contractors to build better business relationships.

After completion of the case study, students are expected to demonstrate understanding of the process of strategy formulation (which include conducting situational analysis) and strategy implementation.

Perusahaan Azan, which trades under the brand name Roti Azan for its fresh bread and Azan for its dry bread or rusks, was established as a family business in 1968 by Haji Abu Bakar bin Ali in his hometown in Kuala Pilah, in the state of Negeri Sembilan in Malaysia. In the mid-1980s, the management of the business was passed on by Haji Abu Bakar to one of his sons, Haji Mohd Ghazali bin Haji Abu Bakar. Haji Ghazali was named managing director in 1985 and officially inherited his father’s company in 1987. By 2004, Perusahaan Azan breads had started to penetrate major grocery stores nationwide, and later the business began to expand internationally in 2010, with Oman and Iraq among the first countries it ventured into. The company sold both its fresh and dry bread in local stores; however, in the international market, only dry bread types were sold, specifically wholemeal rusks and long rusks, which had longer shelf lives. Post-pandemic, by 2022, the company had exited the retail fresh bread market and had focused only on its contractual fresh bread and retail dry bread markets. He thought about the main strategic choices he had of going forward, either to revive its retail fresh bread segment or venture into a coffee shop business. The former was the bread and butter of the company in the last 50 years. However, he knew that re-entering this market was getting more difficult, as it requires competing head-to-head with the giant breadmakers. There were also issues of rising costs and high wastage. For the latter coffee shop project, the company did not have experience in directly “serving” the customers, with its businesses so far had been mainly in production. He pondered on the best decision to undertake to sustain the company’s profitability into the next generation. Few family businesses can pass this crucial stage. He knew he had to act fast to ensure that the company’s plans for the future could be successfully implemented. The case study is suitable for use in teaching courses in strategic management, organisational management and integrated case study for advanced undergraduates and postgraduates in the programmes of business administration, Muamalat administration and accounting.

The case study is suitable for use in advanced undergraduate students in management, business administration, Muamalat administration and postgraduate students in MBA, Master in Muamalat Administration or other related master’s programmes with a course in strategic management, organisational management and integrated case study.

Teaching notes are available for educators only.

CSS 11: Strategy.

After completion of the case study, the students will learn about the blue ocean strategies that are adopted by entrepreneurs when they are entering into a new business territory and be able to perform an industry analysis and understand the competitive advantage that a firm possesses in a new market using Porter’s five forces framework.

This case study is about Sushant, an entrepreneur, who started his entrepreneurial venture in water sports tourism along the coastlines of India. His core business was into offering kayaking and camping activities. However, he planned to scale up his business by expanding its geographical reach. To fulfill this, he was also planning to manufacture his own kayaks, which would increase economies of scale in the long run. This case study investigates the dilemma of whether he should first increase his service offerings before expanding geographically or focus on geographical expansion and then increase service offerings.

This case is designed to be taught at the post-graduate level (Master of Business Administration) for an entrepreneurship course.

Teaching notes are available for educators only.

CSS3: Entrepreneurship.