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1 – 10 of over 20000Desmond Doran, Peter Thomas and Nigel Caldwell
The primary aim of this research is to explore buyer‐supplier relationships within a service sector context.
Abstract
Purpose
The primary aim of this research is to explore buyer‐supplier 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 buyer‐supplier 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 buyer‐supplier 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.
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Sandra S. Graça and James M. Barry
This study investigates the antecedents and outcomes of cognitive trust during the expansion phase in buyer–supplier relationships. It takes a global approach and examines…
Abstract
This study investigates the antecedents and outcomes of cognitive trust during the expansion phase in buyer–supplier 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 buyer–supplier 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.
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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…
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 buyer–supplier 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.
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…
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.
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Hashem Aghazadeh, Hossein Maleki and Sajedeh Sadat Majidi
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 implications…
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 buyer–supplier 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.
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Rapeeporn Rungsithong and Klaus E. Meyer
Trust is an important facilitator of successful B2B relationships. The purpose of this study is to investigate affect-based antecedents of both interpersonal and…
Abstract
Purpose
Trust is an important facilitator of successful B2B relationships. The purpose of this study is to investigate affect-based antecedents of both interpersonal and interorganizational trust, and their impact on the performance of buyer–supplier relationships. The authors ask two research questions: (1) What are affect-based dimensions of interpersonal and interorganizational trust? (2) How do interpersonal and interorganizational trust influence buyers’ operational performance?
Design/methodology/approach
The authors use data from an original survey of 156 buyer–supplier relationships between multinational enterprise subsidiaries and local suppliers in the Thai manufacturing sector to develop a structural model in which the authors test the hypotheses.
Findings
Consistent with social exchange theory and social psychology, the empirical analysis shows that affect-based dimensions at the individual level, namely, likeability, similarity and frequent social contact, and at the organizational level, namely, supplier firm willingness to customize and institutionalization of cooperation, are important for establishing trust. In addition, interpersonal trust enhances buyers’ operational performance indirectly via interorganizational trust.
Practical implications
Buying and selling firms may develop organizational trust by developing processes that enhance organizational trust. Individuals with purchasing or sales responsibilities may enhance trust in their personal relationship. However, such interpersonal trust needs to be translated to the organizational level to benefit organizational performance.
Originality/value
The findings contribute to the literature on affect-based antecedents and outcomes of trust. Specifically, the authors offer theory and empirical evidence regarding the contribution of salespersons toward affect-based dimensions of trust and its impact on buyer’s operational performance.
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This paper deals with the perspective of autoparts suppliers in the Brazilian automotive industry on advances and barriers to renewed buyer‐supplier relations under lean…
Abstract
This paper deals with the perspective of autoparts suppliers in the Brazilian automotive industry on advances and barriers to renewed buyer‐supplier 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 buyer‐supplier relations in the Brazilian automotive industry.
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Ming-Chang Huang, Ting-Chuan Lin, Ping-Hsin Lin, Ya-Ping Chiu and Chi-Hung Chung
This study aims to investigate whether higher value creation leads to higher value appropriation and to identify the boundary conditions in a buyer–supplier relationship that can…
Abstract
Purpose
This study aims to investigate whether higher value creation leads to higher value appropriation and to identify the boundary conditions in a buyer–supplier relationship that can explain why a particular supplier can appropriate higher value than others.
Design/methodology/approach
The study uses questionnaire surveys. The sample of the survey has 150 publicly-listed supplier firms in Taiwan. The unit of analysis is the buyer–supplier relationship.
Findings
In the buyer–supplier relationship, suppliers’ bargaining power, partnership and a supplier’s original brand manufacturing (OBM) business can strengthen the positive relationship between value creation and value appropriation.
Research limitations/implications
This study adopts the unilateral viewpoint of suppliers; however, some constructs might require dyadic evaluation. This study only explores the spillover effect of OBM business on the relationship between value creation and appropriation.
Practical implications
The spillover effect of a supplier’s OBM business in a buyer–supplier relationship allows the buyer to share more common benefits and the supplier to capture more private benefits as compensation. By broadening its customer base, a supplier can increase its bargaining power. A supplier can also maintain a strategic partnership with each essential buyer.
Originality/value
To avoid the dark-side effect of partnership, the model provides the contingency that a supplier can capture more value from a buyer–supplier relationship.
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Ahmet Selcuk Yalcin, Huseyin Selcuk Kilic and Emre Cevikcan
The purpose of this article is to develop a new model called strategy segmentation methodology (SSM) by combining the Kraljic portfolio matrix (KPM) and the supplier relationship…
Abstract
Purpose
The purpose of this article is to develop a new model called strategy segmentation methodology (SSM) by combining the Kraljic portfolio matrix (KPM) and the supplier relationship model (SRM) so that the buyer company can effectively conduct its relations with its suppliers.
Design/methodology/approach
The importance weights of the criteria defining the dimensions of each model are calculated with the single-valued neutrosophic analytical hierarchy process (SVN-AHP) method. Subsequently, the derived importance weights are employed in the single-valued neutrosophic technique for order preference by similarity to ideal solution (SVN-TOPSIS) method to obtain the scores of the suppliers and their supplied items. In order to illustrate the feasibility of the proposed methodology, a case study in the machinery industry is performed with the related comparative analysis.
Findings
The implementation of SSM enables to formulate various strategies to manage suppliers taking into account the items they procure, their capabilities and performance and the supplier–buyer relationship strength. Based on the proposed strategies, it is concluded that the firm in the case study should terminate its relationship with six of its suppliers.
Originality/value
Although KPM has become the basis of purchasing strategies for various businesses, it neglects the characteristics of suppliers and the buyer–supplier relationship. In this study, KPM is integrated with the SRM approach presented by Olsen and Ellram (1997) to overcome these disadvantages of KPM. The novel integration of the two approaches enables the realization of a robust and reliable supplier classification model.
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