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Open Access
Article
Publication date: 11 September 2024

Susanne Åberg and Poul Houman Andersen

This paper aims to explore the role of heuristics in the reassessment of relationship events and how it influences perceptions of commitment, fairness and relationship value. It…

Abstract

Purpose

This paper aims to explore the role of heuristics in the reassessment of relationship events and how it influences perceptions of commitment, fairness and relationship value. It answers the question of how heuristics interrelate with decision-makers’ evolving interpretations of commitment, fairness and relationship value in a specific buyer-supplier relationship.

Design/methodology/approach

This paper presents data from a longitudinal study of an evolving buyer–supplier relationship involving a multinational supplier of fast-moving consumer goods and a medium-sized and highly specialized supplier. It analyzes qualitative data about the use of heuristics in buyer–supplier relationships, and it is based on evidence collected from interviews, presentations, meetings and secondary data.

Findings

This paper shows that a buyer’s unexpected behavior can lead to a reassessment of commitment, fairness and relationship value. Heuristics can delay relationship reassessments, however. The case shows that heuristics have a preserving quality and that the effect of transformative events only slowly changes the perception of the value of the relationship. In this change process, the link between commitment, perceived fairness and heuristics is crucial.

Originality/value

This paper contributes to research on the relationship between buyer–supplier relationships and heuristics. In particular, the paper contributes to the understanding of how relational events in a buyer-supplier relationship change the commitment and perception of fairness, and how heuristics change accordingly. On a more overarching level, the study contributes to our understanding of business relationship dynamics.

Details

Management Decision, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 13 September 2024

Yu (Jade) Chu and Yanji Duan

While size asymmetry in buyer–supplier relationships has been studied in non-disruption contexts, this research explores how supplier size influences positive and negative supply…

Abstract

Purpose

While size asymmetry in buyer–supplier relationships has been studied in non-disruption contexts, this research explores how supplier size influences positive and negative supply chain disruptions. Anchoring on the commitment-trust theory (CTT), we explore buyer commitment as a mediating variable and examine how buying firms' mediated power usage depends on different supplier sizes and types of supplier-induced disruptions.

Design/methodology/approach

Through two scenario-based behavioral experiments, we discover different patterns in buyers' use of mediated power, contingent on the types of supplier-induced disruptions.

Findings

In negative disruptions, buyers prefer more mediated power with large suppliers to control uncertainties, using reward or coercive power strategies. In positive disruptions, we find opposite results, indicating different buyers' perceptions and actions are contingent on both the supplier size and the types of disruptions. These findings underscore the complex interplay between supplier size, buyer commitment and mediated power strategies, revealing that disruption type significantly shapes buyer responses.

Research limitations/implications

This paper extends the CTT framework by considering new antecedents and outcomes. We also provide a more comprehensive understanding of buyer behavior when facing positive and negative supplier-induced disruptions. Our study has limitations. Through vignette-based behavioral experiments, there is a risk that scenarios may not accurately represent real-life situations and that decision-making dynamics could be oversimplified. Future research should incorporate nuanced measurements and conduct additional qualitative research for a comprehensive understanding.

Originality/value

This study enriches the understanding of the buyer-supplier relationship by expanding the CTT framework for a more comprehensive picture. We also offer nuanced insights into size dynamics and disruption types, emphasizing tailored strategies in supply chain management. The findings underscore the importance of understanding these nuances to employ tailored strategy in a business-to-business (B2B) context, as mediated power is contingent on multiple factors.

Details

The International Journal of Logistics Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 8 July 2024

Jacek Strupinski and Marzanna Witek-Hajduk

Referring to transaction costs theory, resource based view and social exchange theory, this paper examines the interplay between selected dimensions of suppliers’ relationships…

Abstract

Purpose

Referring to transaction costs theory, resource based view and social exchange theory, this paper examines the interplay between selected dimensions of suppliers’ relationships with foreign buyers, specifically relational trust, contract specificity and relationship-specific investments, as well as analyzes the effects those dimensions have on the suppliers’ product innovation.

Design/methodology/approach

This study uses survey data from 179 small- and medium-sized Polish manufacturing suppliers of high-tech products. Information was collected on dyadic relationships with their key foreign buyers and used as an input to a structural model consisting of multiple linear regressions.

Findings

It was discovered that trust and investments have a mutual positive impact on each other and individually contribute to the supplier’s product innovation. However, once both trust and investments were included in the model, only the latter showed significant effect. Contracts, on the other hand, showed different impact on innovation depending on how it was measured.

Practical implications

Managers should treat trust only as a mechanism to create supportive environment for investments, which exclusively have the power to improve supplier’s product innovation. Contracts’ role, in turn, should be limited to facilitating business relationships.

Originality/value

Only single quantitative studies analyzed trust, investments and contracts as determinants of supplier’s product innovation. Also, focus was not placed on high-tech SMEs in relationships with foreign buyers. As a result, our study provides unique insights on such relationships and unveils new details on an indirect link between trust and product innovation.

Details

European Journal of Innovation Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 6 June 2024

Rongrong Shi, Baojun Yang, Zhaofang Chu and Fujun Lai

Digitalization brings complexity and challenges to the relationship governance between logistics outsourcers and their providers. Drawn on resource dependence theory (RDT) and…

Abstract

Purpose

Digitalization brings complexity and challenges to the relationship governance between logistics outsourcers and their providers. Drawn on resource dependence theory (RDT) and resource-based view (RBV), this study aims to examine the role of relationship commitment in simultaneously managing dependence and improving operational performance in logistics outsourcing in the digital economy, as well as the contingent factors (i.e. communication, relationship length, and company size) that affect the effectiveness of relationship commitment.

Design/methodology/approach

Based on data collected from 130 third-party logistics (3PL) users in China, our model was tested with the partial least squares (PLS) approach.

Findings

First, relationship commitment is necessary for 3PL users to manage dependence on 3PL providers and improve operational performance in the digital economy. Second, communication helps 3PL users to develop higher relationship commitment but weakens the motivating effect of dependence on relationship commitment. Third, a long relationship history develops inertia to diminish the effectiveness of dependence on driving relationship commitment while it boosts the impact of relationship commitment on operational performance. Last, company size is an important signal to amplify the effectiveness of relationship commitment for operational performance enhancement.

Originality/value

This study contributes to the logistics outsourcing literature by integrating RDT and RBV to explain the twofold roles of relationship commitment, simultaneously tackling dependence and enhancing operational performance in the digital economy. Additionally, it expands the understanding of the boundary conditions (e.g. communication, relationship length, and company size) on these twofold roles.

Details

Industrial Management & Data Systems, vol. 124 no. 7
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 22 July 2024

Surajit Bag, Abhigyan Sarkar, Juhi Gahlot Sarkar, Helen Rogers and Gautam Srivastava

Although climate change-related risks affect all stakeholders along the supply chain, the potential impact on small and micro-sized suppliers is incredibly excessive. The…

Abstract

Purpose

Although climate change-related risks affect all stakeholders along the supply chain, the potential impact on small and micro-sized suppliers is incredibly excessive. The corresponding toll of these climate risk threats on the mental health and well-being of owners of small and micro-sized suppliers can adversely affect their participation in sustainability efforts, ultimately impacting the firm's performance. This often-overlooked dynamic forms the core of our research. We probe into two pivotal aspects: how industry dynamism and climate risk affect the mental health and well-being of owners of small and micro-sized suppliers and how, in turn, dictate involvement and, consequently, supply chain sustainability performance. This is further nuanced by the moderating role of the abusive behavior of buyers.

Design/methodology/approach

Our study is built on resource dependency theory and the supporting empirical evidence is fortified by a mixed-methods sequential explanatory design. This study comprises three phases. In the first phase, our experiment examines the effect of industry dynamism and climate risk exposure on sustainable supply chain management performance. Hypotheses H1a and H1b are tested in the first phase. The second phase involves using a survey and structural equation modeling to test the comprehensiveness of the model. Here, the relationship between industry dynamism, climate risk exposure, mental health and well-being of owners of small and micro-sized supplier firms, supplier involvement and sustainable supply chain management (H2–H7) is tested in the second phase. In the third phase, we adopt a qualitative approach to verify and provide descriptive explanations of phase two findings.

Findings

Our findings underscore the significance of small and micro-sized suppliers in sustainability, offering invaluable insights for both theoretical understanding and practical implementation. Our study highlights that buyers must allocate sufficient resources to support small and micro-sized supplier firms and collaborate closely to address climate change and its impacts.

Practical implications

The key takeaway from this study is that buyer firms should consider SDG 3, which focuses on the good health and well-being of their employees and the mental health and well-being of owners of small and micro-sized suppliers in their upstream supply chain. This approach enhances sustainability performance in supply chains.

Originality/value

This is one of the first studies that shows that industry dynamism and climate risk exposure can negatively impact small and micro-sized suppliers in the presence of a contextual element, i.e. abusive behavior of buyers, and ultimately, it negatively impacts sustainable supply chain performance dimensions.

Details

The International Journal of Logistics Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 10 November 2023

N.S.B Akhil, Vimal Kumar, Rohit Raj, Tanmoy De and Phanitha Kalyani Gangaraju

Even the greatest developed countries have capitulated to the destructions imposed on the global supply systems, as the COVID-19 pandemic has revealed. The purpose of this study…

Abstract

Purpose

Even the greatest developed countries have capitulated to the destructions imposed on the global supply systems, as the COVID-19 pandemic has revealed. The purpose of this study is to explore human resource sourcing strategies for managing supply chain performance during the COVID-19 outbreak. There are six human resource sourcing strategies such as outsourcing, near sourcing, integration, the requirement of suppliers, joint ventures and virtual enterprise that are considered to measure supply chain performance.

Design/methodology/approach

Based on collecting data from the potential respondents of Indian manufacturing companies, the elevation of human resource sourcing strategies to supply chain performance is measured considering the multiple regression analysis techniques.

Findings

The results of the study revealed that four of the six hypotheses have a significant and positive relationship with supply chain performance during the COVID-19 outbreak while two hypotheses are partially supported that lent good support to this study.

Research limitations/implications

In this critical situation, this study will enable managers and practitioners to support the business in giving customers the best services on time.

Originality/value

The novelty of this study is to identify the key human resource sourcing strategies by using multiple regression analysis methods, considering the case of Indian manufacturing companies to measure their supply chain performance during the COVID-19 outbreak era.

Details

International Journal of Productivity and Performance Management, vol. 73 no. 7
Type: Research Article
ISSN: 1741-0401

Keywords

Open Access
Article
Publication date: 5 August 2024

Minna Saunila, Juhani Ukko and Aki Jääskeläinen

This study presents evidence of the role of performance measurement and management (PMM) in sustainable supply chain governance. This study tests a model hypothesizing whether it…

Abstract

Purpose

This study presents evidence of the role of performance measurement and management (PMM) in sustainable supply chain governance. This study tests a model hypothesizing whether it is the PMM itself or the mediating effect of supply chain governance that is essential for both business and sustainability performance.

Design/methodology/approach

This study builds on a survey of 274 SMEs in Finland.

Findings

The findings indicate that PMM does not directly contribute to SMEs’ business or sustainability performance. Supply chain governance mediates the relationship between PMM and business performance. Business performance also enhances sustainability.

Practical implications

These findings can guide managers in managing company relationships with customers and suppliers. The mediating role of supply chain governance highlights the potential of PMM to enhance performance. Without supply chain governance, the PMM, while efficient in traditional business practices, may lose its effectiveness because of the pressure to advance sustainability values within firm operations.

Originality/value

The role of PMM in enhancing supply chain sustainability is frequently overlooked in the existing research, necessitating an empirical evaluation of PMM’s impact on supply chain sustainability. This study addresses this gap by focusing on the SME context, where the pressure to adopt sustainable practices is increasing, yet SMEs employ PMM less frequently than larger firms.

Open Access
Article
Publication date: 2 May 2023

Surajit Bag

This study examines the effect of resources (e.g. tangible resources, human skills and intangible resources) that are utilized as a bundle of standard practices on sustainable net…

3504

Abstract

Purpose

This study examines the effect of resources (e.g. tangible resources, human skills and intangible resources) that are utilized as a bundle of standard practices on sustainable net zero economy implementation and their further impact on financial, environmental and social performance among small- and medium-level enterprises in business markets. The moderating effect of big data analytical intelligence is also examined.

Design/methodology/approach

The samples were selected from the paper and chemical manufacturing industries of South Africa. The data analysis was performed using variance-based structural equation modeling.

Findings

The results show that tangible resources, human skills and intangible resources positively influence sustainable net zero economy adoption. However, intangible resources have a more substantial influence on sustainable net zero economy implementation. This shows that adopting a sustainable net zero economy depends more on a bundle of common practices, including sustainability culture, employee training and knowledge management, and managers must create the necessary action plans accordingly. In addition, sustainable net zero economy adoption positively influences financial performance, environmental performance and social performance. However, sustainable net zero economy adoption has a more substantial influence on social performance. Therefore, implementing a net zero economy will be more advantageous to society and to local communities.

Practical implications

To achieve a sustainable net zero economy, managers should recognize the significance of resource management. While managing tangible resources and human skills is crucial, intangible resources, such as culture and organizational learning, require more attention. Additionally, the ability of small- and medium-sized enterprises to explore, store, share and apply knowledge is crucial to achieving net zero. Therefore, managers should make use of Industry 4.0-based digital technologies for effective knowledge management. Moreover, net zero economy adoption can significantly enhance societal performance. Hence, while making budgeting decisions, managers must consider the potential of the firm's resources to improve social performance.

Originality/value

This study is the first to investigate the impact of human skills and tangible and intangible resources on the adoption of a sustainable net zero economy by companies, using empirical evidence. The research expands on the concept of the practice-based view (PBV) in the implementation of sustainable net zero economies by small- and medium-sized business-to-business enterprises.

Details

Benchmarking: An International Journal, vol. 31 no. 6
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 30 August 2024

Odai Khamaiseh, Mohammad Alghababsheh, Saowanit Lekhavat and Mushfiqur Rahman

This study examines the impact of inter-organisational justice (i.e. distributive, procedural and interactional) in the buyer–supplier relationship on supply risk and, in turn, on…

Abstract

Purpose

This study examines the impact of inter-organisational justice (i.e. distributive, procedural and interactional) in the buyer–supplier relationship on supply risk and, in turn, on a firm’s marketing and financial performance.

Design/methodology/approach

A structured survey was administered both online and in-person to Jordan-based manufacturing companies. The 137 responses received were analysed using partial least structural equation modelling.

Findings

The study found that while establishing both procedural and interactional justice in the relationship has a negative impact on supply risk, promoting distributive justice, surprisingly, has no impact. Moreover, supply risk was found to be detrimental to the firm’s marketing and financial performance.

Research limitations/implications

This study considers only the direct role of inter-organisational justice in reducing supply risk. Future research could enhance our understanding of this role by exploring the underlying mechanisms and conditions that could govern it.

Practical implications

Managers can alleviate supply risk by ensuring procedural and interactional justice in the relationship through involving suppliers in the decision-making processes, consistently adhering to established procedures and communicating transparent and ample information.

Social implications

Addressing supply risk can help in maintaining community resilience and economic stability.

Originality/value

The study highlights inter-organisational justice as a new approach to mitigating supply risk. Moreover, by examining how supply risk can affect a firm’s marketing performance, it also highlights a new implication of supply risk. Furthermore, by exclusively examining the impact of supply risk on a firm’s financial performance, the study provides a more nuanced interpretation of the effect of supply risk and how it can be reduced.

Details

International Journal of Productivity and Performance Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 25 June 2024

Manoj Hudnurkar, Suhas Suresh Ambekar, Sonali Bhattacharya, V.G. Venkatesh and Yangyan Shi

The study aims to understand the influence of supplier development (SD) activities on supplier satisfaction through the lens of social capital theory (SCT) and to understand the…

Abstract

Purpose

The study aims to understand the influence of supplier development (SD) activities on supplier satisfaction through the lens of social capital theory (SCT) and to understand the mediating role of the buyer–supplier relationship (BSR) in improving supplier satisfaction (SS).

Design/methodology/approach

The research is based on survey of 110 key informants belonging to 50 medium to small supplier companies in the Indian automotive sector. We employed the PLS variance-based modelling technique for the data analysis.

Findings

The investigation resulted in a comprehensive framework for SD activities influencing SS. Further findings recognize a positive influence of SD activities such as payment terms and BSR, which are components of structural social capital on the SS. SD activities such as quality management and delivery, which are indicators of relational capital, affect SS through the mediation of BSR.

Originality/value

The study confirms the role of BSR in SS. The deliberations can help the managers of buyer and supplier firms and researchers to classify and strategize SD activities to improve performance and BSR to become preferred customers through SS.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

Keywords

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