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1 – 10 of 382Susanne 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.
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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.
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This study assesses how relational factors and buyer-supplier relationship commitment (BSRC) influence supply chain integration (SCI) and firm performance in Bangladesh's apparel…
Abstract
Purpose
This study assesses how relational factors and buyer-supplier relationship commitment (BSRC) influence supply chain integration (SCI) and firm performance in Bangladesh's apparel manufacturing sector. Firm performance includes operational performance and innovation performance.
Design/methodology/approach
Grounded in the social exchange theory, a survey data-based structural equation modeling (SEM) approach is applied. Based on two experts and four executives' opinions and an in-depth literature review, 28 measurement items were identified in the close-ended questionnaire design. Further, 144 valid questionnaires from the manufacturer-supplier dyads in Bangladesh were collected and used for SEM analysis.
Findings
Our study reveals that relational factors positively influence BSRC. BSRC directly impacts SCI, operational, and innovation performance, whereas SCI is significantly related to operational and innovation performance. Besides, SCI mediates the two relationships: BSRC and operational performance; and BSRC and innovation performance.
Originality/value
Our results contribute to the literature and offer a new way to understand relationships that connect relational factors of BSRC, BSRC, and outcomes not only by examining the focal firm but also by examining its dyadic supplier partner separately. Separate assessment in the dyad displays some similar and dissimilar results. Moreover, we suggest practical implications for managers to enhance firm performance by focusing on the significance of linking relational factors, BSRC, and SCI.
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Veronica H. Villena, Li Cheng and Stefan Wuyts
As buyers and suppliers seek to create value, they face the challenge of creating an environment that promotes coordination and information sharing and discourages opportunism…
Abstract
Purpose
As buyers and suppliers seek to create value, they face the challenge of creating an environment that promotes coordination and information sharing and discourages opportunism. While the literature suggested dyadic mechanisms to create such an environment, this study focuses on ties beyond the buyer–supplier dyad. Specifically, close connections to one's partner's partners (CPP) are crucial in the realization of benefits for buyers and suppliers.
Design/methodology/approach
Drawing from embeddedness theory and governance theory, the authors developed a contingency framework to examine when CPP are beneficial or counterproductive considering two dyadic attributes – relational capital (RC) and partner dependence. Analyses were conducted using data from a dyadic survey complemented with archival data on 106 buyer–supplier relationships (BSRs).
Findings
The study reveals that CPP both help and hurt in the realization of benefits. Stark asymmetries exist between the impact of CPP on the buyer and supplier sides. For buyers, CPP exert a direct positive effect on operational and innovation benefits. For suppliers, the effect of CPP on operational and innovation benefits is contingent on buyer dependence and RC – CPP serves as a substitute for buyer dependence and RC. There are no such contingency effects for buyers. Further analysis identifies situations for suppliers when CPP hurt the realization of benefits.
Originality/value
The study highlights the importance of CPP to foster efficiency and innovation within BSRs and illustrates how their impact varies across contingency conditions and across the parties within a dyad.
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Debora Chelestino Kisinga, Alban Dismas Mchopa and Leonada Raphael Mwagike
This paper aims to investigate the effect of supplier relationship management (SRM) on the business performance of small-scale grapes processing firms in Dodoma, Tanzania. The…
Abstract
Purpose
This paper aims to investigate the effect of supplier relationship management (SRM) on the business performance of small-scale grapes processing firms in Dodoma, Tanzania. The paper also examines the moderating role of logistics capabilities in the relationship between SRM and business performance.
Design/methodology/approach
This research uses a cross-sectional survey design. A structured questionnaire was used to collect data from 202 small-scale grape processing firms. The data were analysed through descriptive and structural equation modelling.
Findings
The findings revealed that buyer-supplier relationships, supplier development and supplier selection were positively and significantly related to business performance. Furthermore, knowledge transfer had no relationship with business performance. On the other hand, the findings showed that logistics capabilities significantly moderated the relationship between SRM and business performance.
Research limitations/implications
The study was cross-sectional, conducted only in Tanzania, and focussed entirely on small-scale firms processing grapes as raw materials. Thus, generalising the study findings to other countries with different conditions should be done cautiously. Also, this study used subjective measures, and other studies could use objective measures.
Practical implications
The study helps firm managers understand the importance of supplier relationship management on business performance. The findings also can be used by policymakers to create targeted policies and initiatives that support the firm’s growth and sustainability.
Originality/value
To the best of the researchers’ knowledge, this is the first attempt to find empirical support for the moderating role of logistics capability in supplier relationship management and the business performance of small-scale grapes processing firms in the Tanzanian context.
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Due to the current volatile environment and fierce competition, manufacturing firms (MFs) must improve their performance to survive. In this regard, checking and monitoring the…
Abstract
Purpose
Due to the current volatile environment and fierce competition, manufacturing firms (MFs) must improve their performance to survive. In this regard, checking and monitoring the suppliers' risk should significantly improve the performance of MFs. In addition, a relation based on not being an opportunist, confidence and reliance are influential factors in reducing the supplier defaults on his/her supply obligations and improving supply chain performance (SCP). Besides, the moderator function of supplier involvement (SI) in the relationship between quality of the relationship (QoR) and supply risk mitigation (SRM) is undeniable.
Design/methodology/approach
Based on the survey of 148 samples from small to large-sized MFs in Jordan, Turkey and Egypt, empirical evidence has been conducted to support a majority of the authors’ hypotheses. This paper provides a theoretical review of buyer–supplier relationships and supply risk. Hypotheses were tested by using structural equation modeling (SEM)/Smart PLS-4.
Findings
According to the results, confidence and reliance have statistically significant and positive impacts on SRM, resulting in better SCP. Moreover, the findings show that SI positively affects and moderates the relationship between confidence (C) and SRM, while it has no statistically significant influence on the relationship between reliance (R) and SRM.
Practical implications
This study provides necessary material for managers and decision-makers in MFs to confirm the importance and understanding of the QoR in building relationships and business dealings with partners in the SC, in addition to limiting and mitigating the risks of an interruption in supply in particular. Therefore, building a high-quality relationship as a practice based on trust and reliability with suppliers positively affects the performance of the SCs of MFs.
Originality/value
This research paper offers empirical evidence for using QoR within SRM resources of MFs' context for enhancing their supply chain performance. This study is one of few studies that examine the QoR and SRM that contribute to enhancing SCP in MFs in developing countries, which also can serve as a reference for many SC managers and practitioners.
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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.
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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.
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Chenchen Weng, Martin J. Liu, Jun Luo and Natalia Yannopoulou
Drawing on the social presence theory, this study aims to explore how supplier–customer social media interactions influence supplier observers’ trust in the customers and what…
Abstract
Purpose
Drawing on the social presence theory, this study aims to explore how supplier–customer social media interactions influence supplier observers’ trust in the customers and what mechanisms contribute to variation in trust experience.
Design/methodology/approach
A total of 36 semi-structured interviews were conducted with Chinese suppliers using WeChat for business-to-business interactions. Data were analyzed in three steps: open coding, axial coding and selective coding.
Findings
Findings reveal that varied trust is based not only on the categories of social presence of interaction – whether social presence is embedded in informative interactions – but also on the perceived selectivity in social presence. Observer suppliers who experience selectivity during social and affective interactions create a perception of hidden information and an unhealthy relationship atmosphere, and report a sense of emotional vulnerability, thus eroding cognitive and affective trust.
Originality/value
The findings contribute new understandings to social presence theory by exploring the social presence of interactions in a supplier–supplier–customer triad and offer valuable insights into business-to-business social media literature by adopting a suppliers’ viewpoint to unpack the mechanisms of how social presence of interaction positively and negatively influences suppliers’ trust and behavioral responses.
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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.
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