Search results
1 – 10 of over 11000Andrea S. Patrucco, Davide Luzzini, Antonella Moretto and Stefano Ronchi
The purpose of this paper is to shed light on the dynamics of buyer–supplier industrial relationships and the role of customer attractiveness—a requisite to obtain best efforts…
Abstract
Purpose
The purpose of this paper is to shed light on the dynamics of buyer–supplier industrial relationships and the role of customer attractiveness—a requisite to obtain best efforts from suppliers involved in collaborative initiatives.
Design/methodology/approach
The paper develops a theoretical framework tested through an international survey with a structured equation modeling approach.
Findings
Results confirm that customer attractiveness positively affects both innovation and cost performance ensured by suppliers. Moreover, several direct and indirect antecedents of customer attractiveness are identified, including characteristics of the buying firm’s procurement department (i.e. procurement knowledge and procurement status) and supply chain relationship characteristics (i.e. proficiency of supplier collaboration and visibility).
Research limitations/implications
Because of the survey approach, the research results are limited to the data collected.
Practical implications
Findings support the relevance of collaborative relationships in improving performance, and the key role procurement department could play in managing the multifaceted aspects of supplier collaboration.
Originality/value
This paper investigates, on the one hand, why customer attractiveness is relevant for supply chain management, and what are the effects on innovation and cost performance ensured by suppliers; on the other hand, antecedents of customer attractiveness are considered, with a main focus on organizational and relational procurement variables.
Details
Keywords
Mads Hovmøller Mortensen, Per Vagn Freytag and Jan Stentoft Arlbjørn
Companies engage in several business relationships ranging from arm's length to close relationships based on trust and commitment. Several companies have recognized that their…
Abstract
Purpose
Companies engage in several business relationships ranging from arm's length to close relationships based on trust and commitment. Several companies have recognized that their supply chain capabilities give them a competitive edge for delivering what customers want. However, often customers are not a homogeneous group requiring the same physical products and services. From a manufacturer's perspective, this demands that the issue of customer and supplier attractiveness should be considered. How can a company work with a differentiated approach: to be more attractive to selected customers or to suppliers? The purpose of this paper is to address this issue by proposing a process and maturity model for customer attractiveness in supply chains.
Design/methodology/approach
The paper is based on two in‐depth explorative case studies of Danish business‐to‐business manufacturers. The cases report both seller and buyer perspectives on attractiveness.
Findings
The literature review on attractiveness reveals that the explanation of attractiveness has been described differently by a range of authors who are divided into three levels. This challenge calls for the development of a maturity model. Based on the developed maturity model, different sets of managerial implications are deducted. It is found that the parameters used at different attractiveness stages have to differ both in scope and in actual usage.
Research limitations/implications
The research is explorative in nature and rests on two case studies. This does not provide a basis for statistical generalization. Future research should test the maturity model, through both more case studies and more questionnaire surveys.
Practical implications
The maturity model helps companies manage their resources more efficiently. It provides a structured framework showing where to start and a foundation for an assessment of companies' current customer and supplier attractiveness.
Originality/value
The paper is the first to develop a maturity model for customer and supplier attractiveness from a supply chain management perspective.
Details
Keywords
Mads Mortensen and Jan Arlbjørn
This paper aims to investigate the concept of inter‐organisational supplier development programs and to stress the importance of considering suppliers' interest and motivation…
Abstract
Purpose
This paper aims to investigate the concept of inter‐organisational supplier development programs and to stress the importance of considering suppliers' interest and motivation when implementing development initiatives.
Design/methodology/approach
This paper's theoretical framework is based on an in‐depth literature review that analyses how extant supplier development literature considers an inter‐organisational approach. A single case study of eight inter‐organisational relationships is also included.
Findings
The literature review reveals a lack of focus on inter‐organisational approaches to supplier development, even though the literature mentions it as a missing theme. Customer attractiveness is presented as one approach that takes supplier view and motivation into consideration. This idea is supported by the case study, which indicates that supplier performance is influenced by perceived customer attractiveness.
Research limitations/implications
This paper is based on only a single case study and does not provide the basis for statistical generalisation. A theory on customer attractiveness is under development, and the analysis presented here is based on the theoretical findings.
Practical implications
Because suppliers can have their own strategic agendas, such as prioritising developments with the most attractive customers, buyers should consider suppliers' perspectives and motivations when analysing and implementing supplier development programs.
Originality/value
This paper is among the first to focus on the importance of viewing both parties' interest in a buyer‐supplier relationship when implementing supplier development initiatives. The concept of customer attractiveness as an inter‐organisational approach represents a valuable addition to supplier development literature.
Details
Keywords
Empirical studies investigating the antecedents of customer loyalty typically focus on satisfaction. This study aims to develop and test a more comprehensive model of the…
Abstract
Purpose
Empirical studies investigating the antecedents of customer loyalty typically focus on satisfaction. This study aims to develop and test a more comprehensive model of the antecedents of customer loyalty, including satisfaction and inertia. In addition, this study also considers how the effects of satisfaction and inertia on customer loyalty vary with differing levels of the zone of tolerance (ZOT), and how these are likely to change due to customers' alternative attractiveness.
Design/methodology/approach
Hierarchical moderated regression analysis was used to test the hypotheses.
Findings
The results show that a wider level of the ZOT strengthens the positive effect of inertia on customer loyalty, while also reducing the positive effect of satisfaction. The results also indicate that the negative moderating effect of the ZOT on the relationship between satisfaction and customer loyalty will reduce as alternative attractiveness increases. In contrast, the positive moderating effect of the ZOT on the relationship between inertia and customer loyalty will reduce as alternative attractiveness increases.
Originality/value
This study is a first attempt to integrate the ZOT to determine the relative importance of satisfaction and inertia in determining customer loyalty. In addition, this study suggests that customers with higher perceptions of alternative attractiveness are more likely to experience changes in the influence of the ZOT on their loyalty decisions.
Details
Keywords
Rodrigo Soares Santana, Gustavo Hermínio Salati Marcondes de Moraes and Hermes Moretti Ribeiro da Silva
This study aims to evaluate the influence of factors attributed to relationship attractiveness between supplier and customer, from the supplier’s perspective.
Abstract
Purpose
This study aims to evaluate the influence of factors attributed to relationship attractiveness between supplier and customer, from the supplier’s perspective.
Design/methodology/approach
The empirical exercise was based on the use of multivariate data analysis with confirmatory factor analysis and a partial least squares approach to structural equation modeling.
Findings
The study resulted in a robust model, with a high explanatory factor for the latent variable relational attractiveness and commitment was the most influential factor, followed by expected value and interorganizational trust.
Research limitations/implications
Some limitations of the study can be highlighted: conducting research in a single cooperative and with a single audience; choosing a short-cycle supply chain, which may make it difficult to generalize to other industries; the cross-section nature of data also hinders the analysis to understand how the association between variables of interest may vary over time.
Practical implications
The negative influence of interpersonal trust reinforces the importance of developing collaborative attitudes between parties, whereas the non-significant value for dependence (financial and volume dependence) shows this is not a risk factor for relational attractiveness in a supply chain. Such results provide evidence on how to develop relationship management between suppliers and customers that are part of the same supply chain.
Social implications
It offers a new perspective for research in cooperatives, which still have no consensus on the motivating factors for members’ participation, including as evidence the results of the largest flower producing center in Latin America. The more a cooperative succeeds in increasing relational attractiveness, the greater the cooperative power and the ability to adapt to shocks and changes, which are fundamental factors for the success and longevity of the cooperative.
Originality/value
The research presents a model that is comprehensive enough to fit in different contexts and consider its specific characteristics. Additionally, this paper has added in-depth information on the relational attractiveness relationships in the context of a developing country.
Details
Keywords
Matthew Jenkins and Mary Holcomb
The purpose of this paper is to empirically investigate the activities that nascent firms undertake to improve customer attractiveness and gain collaborative commitment from…
Abstract
Purpose
The purpose of this paper is to empirically investigate the activities that nascent firms undertake to improve customer attractiveness and gain collaborative commitment from strategic suppliers.
Design/methodology/approach
Data from a grounded theory study consisting of 26 participants from 15 firms and a review of extant literature were used to develop a theoretical model that explains how a nascent firm increases its customer attractiveness to elicit commitment and collaboration from strategic suppliers.
Findings
The authors find that social capital, born of close social ties and social history, enhances the effectiveness of a nascent firm's relationship-building practices. This counteracts a supplier's collaborative risk and consequently increases the nascent firm's customer attractiveness, thus enabling it to obtain strategic supplier collaborative commitment.
Practical implications
This research helps managers by providing direction on what practices nascent firms pursue to gain strategic supplier resources and collaboration. Given the reality of resource constraints in nascent firms, it is suggested that this insight is essential to obtaining crucial external resources needed to survive and grow.
Originality/value
Extant research on buyer–supplier collaboration is mostly confined to the context of mature firms and does not account for the unique inter-organizational relational challenges faced by nascent firms. This research uncovers the idiosyncrasies of supplier management in nascent firms, and elucidates on the actions that nascent firm managers take to gain supplier collaborative commitment.
Details
Keywords
In industrial buyer–supplier relationships, being an attractive customer has been found to result in superior supplier performance. However, there is a limited understanding of…
Abstract
Purpose
In industrial buyer–supplier relationships, being an attractive customer has been found to result in superior supplier performance. However, there is a limited understanding of how these benefits transfer to the public domain. This study aims to explore the influence of customer attractiveness on supplier resource mobilization efforts toward the public sector.
Design/methodology/approach
A qualitative approach was used, focusing on in-depth interviews with 23 informants from 3 critical and complex supplier markets. The data were processed using inductive coding and thematic analysis.
Findings
The findings indicate that customer attractiveness in the public sector influences suppliers’ mobilization efforts on several dimensions. In addition to stimulating competition in the tender phase, customer attractiveness can yield important benefits to quality, supply stability and innovation during the business relationship. It appears imperative for the public sector to improve its standings with suppliers to both mitigate the apparent risk of sub-par treatment and to unlock the preferential supplier treatment associated with being an attractive customer.
Social implications
Receiving increased mobilization from suppliers will result in better use of public money and help improve resilience and innovation in public procurement.
Originality/value
This study extends the research on customer attractiveness in the public sector by being the first to explore the range and nature of its influence on supplier mobilization efforts.
Details
Keywords
Stephanie Hui-Wen Chuah, Philipp A. Rauschnabel, Ming-Lang Tseng and T. Ramayah
The purpose of this paper is to propose a dedication-constraint-temptation (DCT) model to study the factors influencing customers’ loyalty to mobile data service (MDS) providers…
Abstract
Purpose
The purpose of this paper is to propose a dedication-constraint-temptation (DCT) model to study the factors influencing customers’ loyalty to mobile data service (MDS) providers. The DCT model explicitly explores the important yet overlooked role of alternative attractiveness (the temptation-based mechanism) as a mediator and the boundary condition of their interrelationships (e.g. relationship length). The model also integrates new and established antecedents of customer-based brand equity (C-BBE) (the dedication-based mechanism) and switching barriers (the constraint-based mechanism).
Design/methodology/approach
The proposed model is tested using partial least squares–structural equation modeling with a sample of 331 MDS users.
Findings
The results indicate that C-BBE has an indirect effect on customer loyalty (via alternative attractiveness) in both relationship groups (shorter- vs longer-term). However, the indirect effect of switching barriers on customer loyalty only exists in longer established relationships. The results from multi-group analysis reveal that the effect of switching barriers on alternative attractiveness significantly differs across groups. In addition, customer value anticipation and procedural switching costs appear to be the most salient antecedents of C-BBE and switching barriers for both groups.
Originality/value
This study makes an incremental contribution by incorporating the temptation-based mechanism as a mediator and relationship length as a moderator into the dedication-constraint model. This study also extends the information systems and brand management literatures by demonstrating the strategic importance of customer value anticipation in the information and communication technology brand equity-building.
Details
Keywords
The military of today depends on the availability and readiness of high-technology weapon systems. As the military often has to focus on core tasks (the usage of systems)…
Abstract
Purpose
The military of today depends on the availability and readiness of high-technology weapon systems. As the military often has to focus on core tasks (the usage of systems), logistics and support tasks are outsourced to industry, which means that industrial suppliers gain importance for making weapon systems available and mission ready. However, companies are profit-maximizing and invest their best resources in the most promising business areas, which might be clients other than the (domestic) military customer. This raises the question of how the military can ensure that the defense industry provides the best performance: preferential treatment for the military. The purpose of this study is to investigate preferential treatment in the specific context of defense.
Design/methodology/approach
This paper reports on the examination of factors influencing preferential treatment for the military. The analysis uses structural equation modeling and data from a sample of German defense suppliers.
Findings
The results show that the perceived customer attractiveness has a strong effect on preferential customer treatment. Attractiveness is influenced by trust, commitment and a comparison with other customers.
Research limitations/implications
There are several implications for defense theory and practice, including the need for further consideration of relational in contrast to transactional practices in military–industrial supply collaboration, as these seem highly relevant for getting the best resources for producing and maintaining weapon systems. In addition, increasing customer attractiveness, in particular if the military lacks a domestic defense industry base, is proposed.
Originality/value
The findings are based on a focus sample of only defense suppliers. This paper transfers the industrial discussion about the buyer–supplier relationships and preferential customer treatment to the defense logistics research context.
Details
Keywords
Elina Karttunen, Mika Matela, Jukka Hallikas and Mika Immonen
Buyer–supplier relationships in public procurement have garnered increasing attention in research, yet studies on the perspective of suppliers on public procurement have remained…
Abstract
Purpose
Buyer–supplier relationships in public procurement have garnered increasing attention in research, yet studies on the perspective of suppliers on public procurement have remained limited. This research takes the perspective of suppliers and aims to investigate the innovativeness of suppliers and the impact of supply chain ambidexterity strategies on their perceptions about public procurement in terms of innovation enablers and customer attractiveness.
Design/methodology/approach
This research draws from a survey of 137 suppliers to the public sector in Finland and applies PLS-path modeling to test its hypotheses.
Findings
The findings reveal that the ambidexterity strategy of suppliers in the supply chain influences how they perceive the innovation enablers and customer attractiveness of public organizations since processes of public procurement do not support these strategies fully. Supplier innovativeness has an influence on the perceived innovation enablers of public procurement, which, in turn, influences customer attractiveness.
Practical implications
The innovativeness and strategies of suppliers for the supply chain have an impact on how attractive they perceive public procurement. The findings of this research provide insights on why the customer attractiveness of public procurement may not be high enough to secure the competition in their bidding processes.
Originality/value
The study’s contribution adds to the field of buyer–supplier relationships and customer attractiveness in public procurement by showing the importance of innovation enablers and highlighting the impact of supplier's ambidexterity in the supply chain on their perceptions about public procurement.
Details