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Article
Publication date: 1 September 2005

Desmond Doran, Peter Thomas and Nigel Caldwell

The primary aim of this research is to explore buyersupplier relationships within a service sector context.

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Abstract

Purpose

The primary aim of this research is to explore buyersupplier relationships within a service sector context.

Design/methodology/approach

To address the primary aim, both quantitative and qualitative approaches were utilised. A questionnaire was issued to selected buyer and supplier groups in order to determine relationship issues associated with insurance claims. The questionnaire was complemented by a number of semi‐structured interviews with buyers and suppliers across each spend category.

Findings

The results of this research indicate that there are significant gaps between buyer and supplier expectations concerning how relationships should evolve and that the issues of power and trust will need to be explored in greater depth if relationships are to be optimised.

Practical implications

This research is of practical use to service sector companies attempting to examine how to develop effective buyersupplier relationships. It is of particular use to service buyer operations within the insurance sector, that is moving from the traditional cash compensation approach to a replacement goods approach.

Originality/value

Very little has been written about buyersupplier relationships in the insurance sector and as such this paper provides an insight into issues relating to such relationships within this unique service sector context.

Details

Supply Chain Management: An International Journal, vol. 10 no. 4
Type: Research Article
ISSN: 1359-8546

Keywords

Book part
Publication date: 15 August 2019

Sandra S. Graça and James M. Barry

This study investigates the antecedents and outcomes of cognitive trust during the expansion phase in buyersupplier relationships. It takes a global approach and examines…

Abstract

This study investigates the antecedents and outcomes of cognitive trust during the expansion phase in buyersupplier relationships. It takes a global approach and examines cultural nuances between developed nation and emerging market firms by including participants from the United States, China, and Brazil. The results demonstrate the importance of trust in building social capital and the central role which trust plays in shaping business relationships in all studied cultural contexts. There are similarities and differences across countries. Results support relationship marketing theory by demonstrating the importance of conflict resolution, communication frequency, and social bond in building buyersupplier relationships in the United States, which in turn increase cooperation between partners. Results also indicate that in China, social bond plays a much greater role in building trust, which in turn increases cooperation only to the extent that it serves as a mechanism to secure committed relationships. In Brazil, results show that conflict resolution is the most important factor in building trust. It also mediates the relationship between communication frequency and trust, as well as drives cooperation positively. Overall, trust is found to influence exchange of confidential communication and increases commitment between partners in all three countries.

Details

New Insights on Trust in Business-to-Business Relationships
Type: Book
ISBN: 978-1-83867-063-4

Keywords

Book part
Publication date: 22 February 2010

Chikako Oka

Given the continued growth in the globalization of production, working conditions in global supply chains have come under increased scrutiny. Although there has been much…

Abstract

Given the continued growth in the globalization of production, working conditions in global supply chains have come under increased scrutiny. Although there has been much debate about corporate codes of conduct and monitoring procedures, the question of how buyers influence their suppliers’ working conditions at the factory level remains poorly understood. Using a unique data set based on monitoring by the International Labour Organization (ILO) and original survey data collected in Cambodia's garment sector, this study shows that the main channel linking buyers and supplier compliance performance is the nature of their relationships. Market-based relationships mediated through sourcing agents are systematically associated with poorer compliance performance. In particular, when a reputation-conscious buyer is sourcing from a factory, it has a positive effect on compliance, and their presence appears to condition relationship variables. Deterrence and learning channels are not supported by the evidence. The findings signal the need to pay more attention to the nature of buyersupplier relationships if we seek to improve labor standard compliance. Market-based relationships motivate neither buyers nor suppliers to invest their time and resources to tackle the root causes of poor working conditions. Rather, the results here indicate the need to develop collaborative relationships marked by open dialogue, trust, and commitment, which in turn help to foster an environment supportive of continuous improvement in working conditions.

Details

Advances in Industrial and Labor Relations
Type: Book
ISBN: 978-1-84950-932-9

Book part
Publication date: 16 August 2014

Anne-Maria Holma

This study provides a comprehensive framework of adaptation in triadic business relationship settings in the service sector. The framework is based on the industrial…

Abstract

This study provides a comprehensive framework of adaptation in triadic business relationship settings in the service sector. The framework is based on the industrial network approach (see, e.g., Axelsson & Easton, 1992; Håkansson & Snehota, 1995a). The study describes how adaptations initiate, how they progress, and what the outcomes of these adaptations are. Furthermore, the framework takes into account how adaptations spread in triadic relationship settings. The empirical context is corporate travel management, which is a chain of activities where an industrial enterprise, and its preferred travel agency and service supplier partners combine their resources. The scientific philosophy, on which the knowledge creation is based, is realist ontology. Epistemologically, the study relies on constructionist processes and interpretation. Case studies with in-depth interviews are the main source of data.

Details

Deep Knowledge of B2B Relationships within and Across Borders
Type: Book
ISBN: 978-1-78190-858-7

Keywords

Article
Publication date: 21 March 2022

Sylvie Lacoste, Fouad Ben Abdelaziz and Meriem Youssef

This paper is about customer relationships from the perspective of small suppliers. More precisely, this paper aims to examine the relational implications through a…

Abstract

Purpose

This paper is about customer relationships from the perspective of small suppliers. More precisely, this paper aims to examine the relational implications through a product portfolio model with the main participants of the buying center (buyer/business manager).

Design/methodology/approach

The study first uses an in-depth qualitative data analysis to explore how elements of small suppliersrelationship with such large customer’s main actors are affected by the nature of the product (categorized between strategic, bottleneck and non-critical items). From the results, an empirical model is drawn of small suppliers’ relational strategies in a product-centered and buyer/business manager relationship typology. To analyze the results of the empirical model, a quantitative analysis is performed, using the fuzzy set qualitative comparative analysis approach.

Findings

This study contributes to deepen the supplier–customer relationship analysis, from a product-centered and customer dyadic perspective (buyer and customer business manager). The findings highlight three different small suppliersrelationship strategy with a different level of involvement of the different participants of the buying center.

Originality/value

Few studies so far analyze vertical asymmetric relationships from a triadic perspective composed of the small supplier, the buyer and the business manager – hence, this study contributes to unveiling some of the relationship complexity within a triad of actors and how small suppliers can navigate through this complexity according to their product or service positioning.

Details

Journal of Business & Industrial Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0885-8624

Keywords

Book part
Publication date: 8 October 2020

Ace Beorchia and T. Russell Crook

Research involving interorganizational relationships (IORs) has grown at an impressive rate. Several datasets have been used to understand the nature and performance…

Abstract

Research involving interorganizational relationships (IORs) has grown at an impressive rate. Several datasets have been used to understand the nature and performance implications of these relationships. Given the importance of such relationships, we describe a relatively new dataset, Bloomberg SPLC, which contains data regarding the percentage of costs and revenues attributed to suppliers and customers, as well as allows researchers to construct a comprehensive dataset of IORs of buyersupplier networks. Because of this, Bloomberg SPLC data can be used to uncover new and exciting theoretical and empirical implications. This chapter provides background information about this dataset, guidance on how it can be leveraged, and new theoretical terrain that can be charted to better understand IORs.

Details

Advancing Methodological Thought and Practice
Type: Book
ISBN: 978-1-80043-079-2

Keywords

Article
Publication date: 1 March 2022

Qi Zou and Yuan Wang

Firms often struggle with opportunistic behavior from supply chain partners. Relying on Transaction Cost Economics and its extensions, this study developed a conceptual…

Abstract

Purpose

Firms often struggle with opportunistic behavior from supply chain partners. Relying on Transaction Cost Economics and its extensions, this study developed a conceptual model theorizing the antecedence, consequences and conditional factors of opportunism within a buyersuppliersupplier triadic relationship.

Design/methodology/approach

This study employed a cross-sectional survey data collected from 200 U.S. firms. The collected data were analyzed with SPSS and AMOS, the two statistical software, for reliability, validity, confirmatory factor analyses and structural equation modeling.

Findings

First, opportunism negatively influences operational performance and business performance, and such an effect is fully mediated by relationship stability. Second, this study classified power asymmetry as asymmetrical power discrepancy and asymmetrical power advantage with these two forms playing different roles in influencing opportunism. Results indicate that asymmetrical power discrepancy induces opportunism while asymmetrical power advantage strengthens the negative influence that opportunism has on relationship stability. Additionally, the mediated moderating effect of asymmetrical power advantage by relationship stability is confirmed.

Originality/value

The results provide significant academic and managerial insights that can guide managerial efforts in distinguishing types of power asymmetry, controlling opportunism and further mitigating the consequences of opportunism within a triadic relationship.

Details

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

Keywords

Article
Publication date: 1 April 2001

Rebecca Arkader

This paper deals with the perspective of autoparts suppliers in the Brazilian automotive industry on advances and barriers to renewed buyersupplier relations under lean…

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Abstract

This paper deals with the perspective of autoparts suppliers in the Brazilian automotive industry on advances and barriers to renewed buyersupplier relations under lean production practices, as uncovered by a comprehensive case study research. Suppliers perceived advances in the relationships as far as operational issues were concerned, but less so in terms of strategic issues. They also identified both organizational, firm‐specific barriers and environmental barriers originating in the peculiarities of the local economic and business environment. These results are discussed in view of the dyadic relationship with buyers, leading to the identification of elements that help to formulate an explanation for the recent path of buyersupplier relations in the Brazilian automotive industry.

Details

Integrated Manufacturing Systems, vol. 12 no. 2
Type: Research Article
ISSN: 0957-6061

Keywords

Article
Publication date: 16 December 2021

Evelyne Vanpoucke, Martin Wetzels, Frank Rozemeijer and Marion Pilzak-Blonska

Buyers and suppliers often perceive relationship governance mechanisms, such as trust and contractual fairness, in different ways. These differences in perception create…

Abstract

Purpose

Buyers and suppliers often perceive relationship governance mechanisms, such as trust and contractual fairness, in different ways. These differences in perception create an extra layer of complexity that is often ignored in the extant literature. This study adds to the understanding of how perceived asymmetries in trust and contractual fairness, two key relationship governance mechanisms, impact relational rents. This study also analyzes how boundary spanners aid managers to deal with these perceived asymmetries.

Design/methodology/approach

Based on survey data of 103 buyersupplier dyads from a single global manufacturer of industrial equipment, the authors test hypotheses of perceived asymmetries in trust and contractual fairness, as well as the moderating effect of boundary spanners, on relational rents.

Findings

This research challenges the belief that asymmetries negatively impact or lead to unstable buyersupplier relationships. Furthermore, it explains how preferential treatment and length of the relationship could reduce the impact of asymmetric perceptions.

Practical implications

This study stresses that open communication, which considers different viewpoints, helps to overcome the negative differences in attitude and perception. In addition, the authors found that long-term relationships seem to be far more resilient in dealing with asymmetries and that preferential treatments are best applied in (approximately) symmetric relationships in terms of contractual fairness.

Originality/value

While studies on buyersupplier relationships often assume symmetric perceptions of governance mechanisms, asymmetric perceptions are far more prominent in reality. This study aims to improve one’s understanding of the impact of these asymmetries as well as how boundary spanners can affect these perceptions.

Details

International Journal of Operations & Production Management, vol. 42 no. 1
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 4 January 2022

Min Tian, Baofeng Huo and Yu Tian

Power use widely exists in buyersupplier relationships (BSRs). Different directions of power use (i.e. buyer's power use and supplier's power use) intertwining with…

Abstract

Purpose

Power use widely exists in buyersupplier relationships (BSRs). Different directions of power use (i.e. buyer's power use and supplier's power use) intertwining with different types of power (i.e. coercive and noncoercive power) make it insufficient to regard power use as a single construct when examining its effect on a firm's following response. Besides, interdependence structure characterized by joint dependence and dependence asymmetry may influence the effect of a specific power use by shaping the firm's interpretation and cognition toward the relationship. Specifically, this study examines how four types of power use a buyer facing and an interdependence structure with its supplier affect its specific investments to the supplier.

Design/methodology/approach

This study tests the proposed relationships using regression analysis, based on data from 240 manufacturing firms in China on their perceived relationships with their major suppliers.

Findings

Results show that buyer's coercive power use (BCP) negatively affects buyer's specific investments while noncoercive power use (BNP) does not play a significant role. Both supplier's coercive power use (SCP) and noncoercive power use (SNP) are positively related to buyer's specific investments. Joint dependence positively moderates the effect of BNP and dependence asymmetry negatively moderates the effects of BCP and SNP on buyer's specific investments.

Originality/value

This study contributes to the literature on power use by identifying different types of power use and their different roles in influencing buyer's specific investments. The study also contributes to the literature on interdependence structure by demonstrating the different roles of joint dependence and dependence asymmetry.

Details

International Journal of Physical Distribution & Logistics Management, vol. 52 no. 2
Type: Research Article
ISSN: 0960-0035

Keywords

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