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This article is about managing industrial buyer‐supplier relations as seen from the customer perspective. Two successful examples of supplier network management are described, and the limits to broader applicability of these supply management principles discussed. Next the focus is on managing the dyadic relation. Contributions from four of the most influential groups of researchers on the subject are overviewed. Empirical findings from a case study from industry are presented, leading to a short conceptual presentation of an alternative supply management approach. The empirical contribution comes from two case studies carried out at the Danish industrial company Danfoss Drives, which produces frequency converters and is a division of the Danfoss industrial corporation. One case study is about the characteristics of a supplier network supplying aluminum components to Danfoss Drives. The other is about the evolution of one of the industrial buyer‐supplier relations in the aluminum network – between Danfoss Drives and a supplier of extruded aluminum components.

The purpose of this paper is to explore buyer‐supplier relationships in the Libyan oil industry during and following the sanction era. This paper, utilising four largely validated critical relationship parameters, seeks to flag important buyer‐supplier relationship insights.

Desk research is undertaken to explore the selected themes of trust, co‐operation, commitment and communication, which are critical to effective dyadic buyer‐supplier relationships. Subsequently, in‐depth interviews were conducted with five key personnel of five Libyan oil companies to examine the impact of sanctions on the selected themes in relation to their buyer‐supplier relationships.

The results highlight interesting differentials between the two explored areas in relation to the four selected themes: trust, co‐operation, commitment and communication. The results indicate that there is a significant gap in understanding the impact of sanctions on the buyer‐supplier relationship.

This paper is of practical use to academics and practitioners who wish to understand the impact on and implications of sanctions on dyadic buyer‐supplier relationships in a developing country. It is also useful to government officials and the oil industry in gaining insights into the effects of sanctions on an economy with significant reliance on the oil industry.

There are extensive studies on the key themes of dyadic buyer‐supplier relationships. However, there is a gap in understanding the impact of sanctions on buyer‐supplier relationship behaviours. The findings in this paper therefore contribute to bridging this gap.

The purpose of this paper is to analyze the mediating role of contracts and trust on the generation of product innovations stemming from buyer-supplier knowledge-sharing (KS) among the members of the supply chain. Together with the individual effects of trust and contracts, their joint effect is examined in order to determine whether these are complementary or alternative mechanisms of safeguarding and control.

Drawing on a survey of 202 European machine tool firms acting as buyers and sellers, the authors propose and evaluate a structural equation model.

Results confirm that there is a positive relation between contracts and trust with respect to buyer-supplier KS, and of the latter with respect to innovation performance. They also show that firms in which both the levels of trust and contract use are high reinforce their product-innovation capability based on buyer-supplier interaction (complementarity thesis). However, results also show that, contrary to trust, contracts by themselves do not act as a stimulus for product innovation.

Establishing contracts seems to be a highly recommended action in a buyer-supplier relationship focused on increasing innovation capacity. This does not go against engendering trust in a relationship. Both trust with a degree of formalization, in different ways, help to increase the effect of sharing valuable knowledge on innovation capacity.

To the authors’ best knowledge, no prior study has delved into differentiating the use of contracts and trust as mechanisms in mediating the effect originated from knowledge-sharing on product innovation performance with two different samples formed by buying and selling firms.

Building social capital within buyer‐supplier relationships is often associated with high performing supply chains. However, little research has examined the mechanisms by which social capital is formed. The purpose of this paper is to examine the effects of relational and contractual governance mechanisms on the formation of social capital under varying levels of demand and supply uncertainty.

A conceptual framework is developed, grounded in the literature on supply chain management and social capital theory (SCT).

A series of propositions showed that relational governance leads to the formation of social capital under conditions of supply uncertainty, but is subject to opportunism when customer product demand is uncertain. By contrast, in conditions of high demand uncertainty, contractual governance is associated with social capital formation.

The paper illustrates the need for managers to consider both the way in which their choice of governance mechanisms (contractual and relational) contributes to social capital, as well as highlighting the contingent nature of these mechanisms depending on the environmental context.

This paper is a novel contribution, applying SCT to the literature on supply chain management.

The purpose of this paper is to focus on the role of information sharing as a deterrent to unethical behavior in a buyer‐supplier relationship. The authors investigate the broader supplier network, examining information sharing as it occurs through both the buyer‐supplier structure as well as supplier‐supplier structures. The authors propose that buyer‐supplier and supplier‐supplier information sharing serve to reduce perceived buying firm unethical behavior while at the same time fostering increased commitment and satisfaction in long‐term buyer‐supplier relationships.

The relational model presented is grounded in the theory of social contract. The authors' hypotheses are tested using structural equation modeling with survey data collected from supplier firms from a wide range of industries and that have been involved long‐term (minimum of five years) in the provision of goods and/or services with their buying firm.

The authors demonstrate that perceived buying firm unethical behavior goes beyond the nature of the dyadic buyer‐supplier relationship; the supplier's entire structure of contacts facilitates the flow of information regarding a buying firm.

This research contributes to the operations and supply chain management literatures by adopting a more comprehensive view of the networks involved in relationship management efforts than what has typically been evaluated in these literatures.

Companies' ability to build sustainable supply chains and achieve strategic sustainability objectives largely depends on their supply network characteristics and the nature of the relationships with strategic suppliers. This poses the question of how purchasing departments can help to translate this sustainability commitment into performance benefits. The authors focus the attention on buyer-supplier information sharing practices and study how the availability of information interplays with the purchasing realized absorptive capacity (PRAC) to positively impact performance (operational, environmental and social).

The study collected data from 305 procurement executives in four European countries and tested the hypotheses empirically using structural equation modeling. Mediation analysis is used to test the effect of PRAC on the relationship between buyer-supplier information sharing and performance.

The results show that increasing buyer-supplier information sharing is sufficient to obtain a positive impact on operational performance. To improve purchasing sustainability performance, companies need to develop their PRAC to adequately transform and exploit external information and identify opportunities in the environmental and social areas. Thanks to these purchasing capabilities, organizations can overcome potential trade-offs between different performance dimensions.

In the context of collaborative buyer-supplier relationships, this study is one of the first to propose purchasing knowledge management capabilities (i.e. PRAC) as a key factor to improve multiple performance dimensions. Additionally, it captures different sustainability aspects, concluding that organizations can improve purchasing operational, environmental and social performances by implementing appropriate information sharing mechanisms with suppliers and developing their PRAC.

Contemporary supply chain relationships inherently rely on delegation of work between organizations and, thus, are subject to agency problems for which a wide range of governance mechanisms exist. This review of agency theory (AT), across four distinct fields, explains the connection between governance mechanisms and supply chain relationship types.

The study uses a systematic literature review (SLR) of articles using AT in a supply chain context from the operations and supply chain management, general management, marketing, and economics fields.

The authors categorize the governance mechanisms identified to create a typology of agency relationships in supply chains.

The developed typology provides parsimonious theory on different forms of supply chain agency relationships and takes a step towards a “supply chain-oriented agency theory” explaining and predicting relationship types and governance in supply chains. Furthermore, a future research agenda calls for more accurate measuring of agency costs, to examine residual gains alongside residual losses, to take a dual-sided perspective of agency relations and to adopt AT to examine more complex supply networks.

The review provides a menu of governance mechanisms and describes situations under which these mechanisms could be deployed to guide managers when developing their supply chain relationships.

The first review to combine and elaborate views from four major disciplines using AT as a lens to supply chain relationships. Expanding the traditional set of governance mechanisms provides academics and practitioners with a bigger “menu” of options to consider.

Discusses the effects of the implementation of Just‐in‐Time (JIT) in the relationships between suppliers and manufacturing companies within Swedish industry. Explores whether such relationships will be beneficial for all parties and create higher total economic effectiveness in the supply relation or if the often more powerful buyer only transfers its stock holding problems to the smaller and weaker part in the buyer‐supplier relation. Two buyer‐supplier relations in the automobile industry are studied, one more from the buyer′s point of view and the other from the supplier′s side. Proves that there are very clear possibilities to get higher total effectiveness in such relations and that mutual benefits are really obtainable. Shows the increased importance of reduced arrival variancy but also that JIT does not necessarily mean an increased traffic intensity. Introduces an important finding by identifying the time interval between the Sequence Locking Instant and the point when the component is needed in Production (SLIP) as the determining factor for JIT relations rather than the physical distance per se.

More and more workers in Western economies are operating as freelancers in the so-called “gig economy”, moving from one project – or gig – to the next. A lively debate revolves around the question as to whether this new employment relationship is actually good for innovation in the 21 st century economy. Proponents argue that in this gig process valuable knowledge is created and transferred from one organization to the next via freelancers through their sequence of temporary gigs or projects. Antagonists reason that freelancers are only hired as one-trick ponies on a transactional basis, where knowledge is neither created nor shared. In this study, we focus on the characteristics of gigs. Which project characteristics lead to increased engagement of freelancers, and hence to knowledge-sharing behavior? Our study suggests that the gig economy can indeed lead to increased knowledge sharing by and engagement of freelance workers, provided that organizations and freelancers structure and shape gigs in such a way that they: (1) not only suit the task requirements at hand and (2) fit with the acquired skills of the freelancer, but that these gigs also (3) leave ample of room for the freelancer’s individual growth and development of new skills. This suggests that innovative organizations will need to shape gigs in such a way that freelancers are not only hired for their expertise, but rather that gigs also provide a learning opportunity for freelancers.

This chapter addresses social embeddedness effects on ex ante management of economic transactions. We focus on dyadic embeddedness, that is the history of prior transactions between business partners and the anticipation of future transactions. Ex ante management through, for example, contractual arrangements is costly but mitigates risks associated with the transaction, such as risks from strategic and opportunistic behavior. Dyadic embeddedness can reduce such risks and, hence, the need for ex ante management by, for instance, making reciprocity and conditional cooperation feasible. The chapter presents a novel theoretical model generating dyadic embeddedness effects, together with effects of transaction characteristics and management costs. We stress the interaction of the history of prior transactions and expectations of future business. Hypotheses are tested using new and primary data from an extensive survey of more than 900 purchases of information technology (IT) products (hard- and software) by almost 800 small- and medium-sized enterprises (SMEs). Results support, in particular, the hypotheses on effects of dyadic embeddedness.