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1 – 10 of over 22000Aneesh Banerjee, Florian Lücker and Jörg M. Ries
Reverse factoring (RF)–a form of supply chain finance (SCF)–is widely recognised as a win-win for both buyers and suppliers. Still, there is evidence that suppliers are often…
Abstract
Purpose
Reverse factoring (RF)–a form of supply chain finance (SCF)–is widely recognised as a win-win for both buyers and suppliers. Still, there is evidence that suppliers are often hesitant to join RF programmes initiated by their buyers. This study advances our understanding of how suppliers assess the importance of various attributes of a buyer's offer to join RF and discusses the role of programme configuration and digital technology in overcoming impediments to RF adoption.
Design/methodology/approach
Using a choice-based conjoint experimental design validated by experts, we isolate and manipulate the main attributes of a RF programme offer. This enables us to estimate the attributes' importance and to examine suppliers' trade-off behaviour. The authors complement the experimental study with content analysis of respondents' comments.
Findings
This study reveals the importance of behavioural considerations in RF adoption. The main findings are (1) suppliers are willing to reject offers that they perceive to be unfair even if these offers benefit them financially, (2) suppliers are willing to trade-off their financial benefit for non-financial reasons–most notably attributes that relate to trustworthiness of the buyer–and (3) suppliers expect technologies to increase transparency and reduce variability in trade processes.
Research limitations/implications
Non-financial attributes that influence supplier perception need to be considered in the programme configuration. Technologies that reduce information asymmetry, increase trust and transparency, increase the speed of execution and reduce process inefficiencies will have a positive impact on RF offer acceptance.
Originality/value
This research opens new lines of inquiry on the role of digital technologies in influencing behavioural operations management specifically suppliers' adoption of digital SCF solutions.
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Vincent Buskens, Ronald S Batenburg and Jeroen Weesie
This chapter addresses how firms buying information technology (IT) products select their suppliers. We argue that social embeddedness, in the sense of own experiences with…
Abstract
This chapter addresses how firms buying information technology (IT) products select their suppliers. We argue that social embeddedness, in the sense of own experiences with suppliers and information about experiences of third parties, influences these types of selection decisions. More specifically, we claim that social embeddedness is more important if: (1) the potential damage for the buyer from receiving an inferior product is larger and (2) if it is more difficult for the buyer to monitor the quality of the product. We use large-scale surveys of IT transactions in the Netherlands and Germany to test these hypotheses. In general, our hypotheses about the effects of social embeddedness on partner selection are supported. We find that buyers tend to assign greater weight to product quality if the potential damage for the buyer is larger. Negative third-party information is particularly important if the buyer has large problems to monitor the quality of a product.
Muhammad Usman Ahmed and Asad Shafiq
As large multinational firms are increasingly tasked with developing sustainable supply chains, their role in improving the sustainability performance of their suppliers is…
Abstract
Purpose
As large multinational firms are increasingly tasked with developing sustainable supply chains, their role in improving the sustainability performance of their suppliers is critical. This paper examines the dual role of a buyer firm, as a customer and as an important stakeholder, and identifies several attributes of the buyer firm and the dyadic relationship that could help improve the sustainability performance of suppliers.
Design/methodology/approach
A dyadic multi-year dataset is created using financial and customer data from the Compustat database and sustainability data from MSCI ESG ratings database. The hypotheses are tested using econometric panel data techniques.
Findings
The findings indicate that a buyer's legitimacy is a key factor that affects supplier's sustainability performance. The effect of legitimacy is much higher when the buyer and supplier firms have an aligned focus on similar sustainability dimensions. The market power of the buyer also increases the effect of legitimacy, though power without legitimacy is not effective.
Originality/value
The study expands the understanding of how buyer firms can influence suppliers on sustainability by highlighting the key role played by legitimacy and aligned focus and the supporting role of market power. The study contributes to both the stakeholder salience literature and the buyer–supplier relationship literature by showing evidence for complementarity between market power and legitimacy. Buyer firms can use the results of the study to focus their efforts on suppliers where a significant improvement in sustainability can be expected.
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The paper aims to analyse the Shenzhen housing market.
Abstract
Purpose
The paper aims to analyse the Shenzhen housing market.
Design/methodology/approach
The paper uses an empirical case study using hedonic modelling that includes not only the property specifics, but also the spatial (via {X, Y} coordinates) and household (buyer's) characteristics. Two expansion models are employed to examine the spatial and socio‐economic heterogeneities in housing attribute prices.
Findings
The results provide strong evidence that the marginal prices of key housing attributes are not constant but vary with household profile and absolute‐location context within Shenzhen's housing market.
Research limitations/implications
Examining housing market behaviour in major Chinese cities should eventually be approached more explicitly with the development of China's official statistical system.
Originality/value
Largely supported by the valuable transaction data, this paper makes initial and valuable attempts to examine the interaction behaviour between property specifics, location coordinates and buyers’ characteristics within one of the very complex and immature housing markets, namely Shenzhen, China.
Tanvir Ahmed, Waseem Ahmad and Bashir Ahmad
The purpose of the study was to find out the impact of the castrated and intact attribute of the male goat on its price in Pakistan.
Abstract
Purpose
The purpose of the study was to find out the impact of the castrated and intact attribute of the male goat on its price in Pakistan.
Design/methodology/approach
Five major goat markets of Punjab, Pakistan, representing various cropping systems, climatic conditions and socio-economic conditions, were selected for the study. Data about the market location, traits of traded male goat (weight, age, breed, castration, etc.), buyer attributes (education level, experience of buying goats), the purpose of buying and price of 383 traded male goats were collected by using a pretested questionnaire. The hedonic regression model was used to estimate the impact of male goat attributes on its price.
Findings
Results indicated a significant price difference between castrated and intact male goats and recommended castration of male goats for a better price. Additional findings showed a significant positive impact of live weight, age, breed and the selling marketplace on the male goat prices.
Research limitations/implications
By targeting and marketing male goat characteristics like castration, weight, breed and selling markets, goat producers can receive a premium price for their animals.
Originality/value
In livestock markets of developing countries, buyers strongly prefer castrated or intact male goats for several reasons. However, as existing literature did not document the effect of male goat's castrated and intact attribute on its price; therefore, the study is important to fill this gap.
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Diwakar KC, Robin E. Roberts and Sara Quach
Despite the availability of new buyers and the possibility to receive higher prices, still large numbers of smallholder farmers do not participate in the modern supply chains…
Abstract
Purpose
Despite the availability of new buyers and the possibility to receive higher prices, still large numbers of smallholder farmers do not participate in the modern supply chains. This study aims to understand the factors that affect smallholder farmers' participation in a newly emerging modern supply chain context.
Design/methodology/approach
Data were collected from 6 focus groups of farmers (67 farmers in total) and 14 interviews with market actors and key informants such as government officials and donor organisations.
Findings
Influential factors of farmers' participation in the modern chain include buyer attributes and transaction conditions. High prices and prompt payment are the key motivators, with the main inhibitors being personal relationships with buyers and strict market requirements related to quality and quantity supplied.
Practical implications
In order to encourage smallholder farmer participation in modern chains, an expansion of the marketing of high-quality vegetables by implementing quality control mechanisms and the encouragement to adopt safe marketing practices is needed. These results are particularly relevant for practitioners and policymakers.
Originality/value
Most research to date concentrates on farmers' socioeconomic characteristics and are based in countries with advanced modern chains, and rarely focus on farmer participation in countries where modern chains are relatively new. This study addresses this gap by analysing farmer preferences to engage in the context of a country experiencing the emergence of trade through modern vegetable supply chain system.
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Jitesh Thakkar, Arun Kanda and S.G. Deshmukh
The purpose of this paper is to propose a methodology for evaluating and comparing supply chain relationships, specifically when, small and medium scale enterprise (SME) is…
Abstract
Purpose
The purpose of this paper is to propose a methodology for evaluating and comparing supply chain relationships, specifically when, small and medium scale enterprise (SME) is considered as focal company.
Design/methodology/approach
The paper proposes a mathematical solution based on interpretive structural modeling and graph theory matrix to determine the supply chain relationship index. The application is demonstrated for the case of Indian automotive SMEs based on the secondary data reported.
Findings
Solution determines supply chain buyer‐supplier index for upstream and downstream. Based on which coefficient of similarity and dissimilarity are determined to evaluate the net pool of buyer‐supplier relationship on focal small and medium scale automotive component manufacturing industry.
Practical implications
Developed approach and results will help SMEs in general and Indian automobile component manufacturing SMEs to rethink on their supply chain relationships and identify the reasons behind their present failures and establish the criteria for win‐win partnership.
Originality/value
The paper addresses the following issues: how buyer‐supplier relationships can be quantified and the impact measured for the present working of focal SME; how SMEs can convince upstream and down stream supply chain players to initiate improvement on some dimensions of buyer‐supplier relationships; and on what basis change in relationships (from transactional to alliance) can be made to minimize the supply chain pressure on a focal company.
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Arnab Banerjee, Tanusree Dutta and Aditya Shankar Mishra
Handloom products often fail to infiltrate the global or mainland market, resulting in small localized markets, limited demand and profitability. Recent times have also witnessed…
Abstract
Purpose
Handloom products often fail to infiltrate the global or mainland market, resulting in small localized markets, limited demand and profitability. Recent times have also witnessed a decline in the weaving population of India. Assam, accounting for a third of all households engaged in the handloom industry in India, has been widely hit by unemployment, migration and demotivation among weavers due to lack of profitability in the sector. This research aims to study the case of Assam as an exemplar to identify the barriers and cognitive biases impacting the sales of such ethnic apparel and propose nudges as interventions to address such concerns.
Design/methodology/approach
A conjoint-based experimental study was used to understand and compare the cognitive biases of two study groups: an ethnic group from Assam and a non-ethnic group from various Tier I and Tier II cities of India. The groups were exposed to a variety of ethnic Assamese and ethnic non-Assamese products to understand their value perception using conjoint analysis.
Findings
Results indicate a potential lack of cognitive fluency when dealing with Assamese ethnic garments, triggering System II thinking among the non-ethnic (national buyer) group. The underlying cause may be the inability to attribute substitution of the given product for a more familiar product. The results suggest that exposure may lead to priming, which in turn can increase cognitive fluency.
Originality/value
Within the limits of the literature reviewed, designing a conjoint-based experiment and proposing the use of nudge to popularize certain ethnic garments are novel contributions of this study.
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Bin Guo, Xi Li, Tanfei Liu and Dong Wu
Supplier–supplier coopetition is vital to buyer innovation in reality. However, it has not received enough attention in prior research. Integrating the…
Abstract
Purpose
Supplier–supplier coopetition is vital to buyer innovation in reality. However, it has not received enough attention in prior research. Integrating the ability-motivation-opportunity framework of organizational learning perspective and the awareness-motivation-capability framework of competitive dynamics theory, this paper investigates the effect of supplier–supplier coopetition within supplier network on buyer innovation, as well as the contingent role of the relational attributes -- duration and tie strength dispersion of buyer–suppliers relationship at the supplier network level.
Design/methodology/approach
Testing this model on the secondary data of supply networks formed by 204 US listed buyer firms in SIC code 28, 35, 36 during 2008–2019, the authors utilize a fixed-effect regression model to investigate the relationship between supplier–supplier coopetition and the focal buyer's innovation.
Findings
The authors provide support for the positive influence of supplier–supplier cooperation on buyer innovation and an inverted U-shaped relationship between supplier–supplier competition and the focal buyer's innovation. The buyer–suppliers tie strength dispersion amplified the above two effects, and supplier–supplier cooperation mitigates the effect of supplier–supplier competition on the focal buyer's innovation.
Originality/value
Extending the traditional dyadic view to a network-level view via linking the supplier–supplier dyad and the buyer–suppliers dyad, this paper contributes to a better understanding of supplier–supplier coopetition and its impact on buyer innovation with learning and competitive tension as the underlying explanations, and validates the contingent role of buyer–suppliers relational attributes.
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Sangeeta Sahney, Koustab Ghosh and Archana Shrivastava
India has a large internet savvy population that is not only accessing the internet but also buying online. With a revolution in the very basics of transaction from a physical…
Abstract
Purpose
India has a large internet savvy population that is not only accessing the internet but also buying online. With a revolution in the very basics of transaction from a physical store format to a non‐store one, the retail industry has begun to understand the indispensability of the internet as a medium of transaction. However, the rate of diffusion and adoption of the new phenomenon amongst consumers is still relatively low. Trust on online transactions is one of the key barriers to vendors succeeding in online transactions. A lack of trust discourages consumers from participating in online buying. With the internet advancing new opportunities, it is important to understand the factors that generate trust of Indian consumers in the online buying system. The purpose of this paper is to explore the determinants of trust in online buying behavior of consumers. This paper is a theoretical attempt at conceptualizing “trust” as a construct, in the context of online buying and testing it empirically. The objective of the study is to explore the critical online trust‐creating factors that influence the online buying decision of people, and to establish their causal impact, if any, through developing an integrated model.
Design/methodology/approach
The study, descriptive, diagnostic, and causal in nature, was conducted in the context of online buying of railway tickets in India. In the first phase, a pilot survey was conducted on a sample of 100 users of the online railway reservation. After having tested the survey instrument for validity and reliability, the second phase of the study was conducted on a sample of 327 users of online railway reservation facilities. A series of multiple regressions analyses was conducted to determine the causal impacts of critical consumer trust parameters on online reservation of railway tickets by users in the Indian context. The analysis of demographics based on gender and age groups was also made to capture the cross‐comparisons of critical online trust‐related attributes.
Findings
The factor analysis had grouped the items into four constructs with a total of 11 items. The item total correlations to each construct were found significant. All the critical online trust based constructs were found to have a significant impact on the intention of buyers of booking/purchasing railway tickets online in India. The analyses of demographics established that all the critical consumer trust‐based attributes to online buying intention have no significant differences for gender, whereas for age groups some of the attributes were found significant and others were not.
Research limitations/implications
The process of online trust formation among the potential buyers depends on a host of factors. This present study has only explored a select number of constructs and remains a major limitation. Notwithstanding this limitation, there are significant theoretical implications for critical online trust constructs of consumers on online buying behavior in the Indian context.
Originality/value
By examining the various dimensions explored and established in this study, the concerned authority can develop a better understanding of consumer needs and expectations. Academicians and researchers can use this study for assessing consumer trust towards online reservation of railway tickets in the Indian context, and identifying such attributes that would lead to the generation of online consumer trust towards online reservation of railway tickets. It provides insight into the impact of trust in online buying and the relationship between trust and buying behaviour. The policy decision makers of railway authority may also use the findings of this study as a resource, while constructing, managing, and evaluating their marketing strategies in the Indian context.
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