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Article
Publication date: 6 January 2012

Kareem Abdul Waheed and Sanjaya S. Gaur

In the current highly competitive marketing environment, there are few situations in which customers attempt to build and maintain relationships with marketers. In large‐format…

1738

Abstract

Purpose

In the current highly competitive marketing environment, there are few situations in which customers attempt to build and maintain relationships with marketers. In large‐format retail situations, customers maintain a non‐personal association with the store and personal relationships with salespersons. By contrast, many customers in developing countries such as India build and maintain long‐term relationships directly with the small‐scale retailers, who happen to be the owners as well as the salespersons of the store. The purpose of this paper is to focus on customer dependence on the retailer, a rare phenomenon which is evident in rural areas of India even today.

Design/methodology/approach

The paper is based on an empirical study of a buyer‐seller relationship between a farmer and a chemical fertilizer retailer, which is a common interpersonal business constellation in India.

Findings

The paper identifies the determinants of customer dependence as customer perceived market uncertainty, product importance and product familiarity. The paper also explains the positive effects of customer dependence on customer trust.

Originality/value

Traditionally, customer dependence is viewed as a structural constraint in relationship outcomes. The effect of customer dependence on power, control and opportunistic behavior in the buyer‐seller relationship context is well researched. This paper applies an interpersonal trust‐development perspective and views customer dependence as a positive relationship construct and fills an apparent gap in research on customer dependence in the context of the interpersonal buyer‐seller relationship.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 24 no. 1
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 30 May 2023

Yimeng Niu and Zhibin Jiang

Servitization is a business transformation that increases service provision in manufacturers. This study aims to empirically examine how a manufacturer's global supply chain…

Abstract

Purpose

Servitization is a business transformation that increases service provision in manufacturers. This study aims to empirically examine how a manufacturer's global supply chain dependence and its power positions affect its servitization output.

Design/methodology/approach

This study employs secondary longitudinal datasets and econometric specifications to test the relationship between global supply chain dependence and servitization. It further examines the moderating roles of the firm's market power and the degree of being principal customers and principal suppliers. Heterogeneity analyses are performed to verify the robustness of the results.

Findings

The findings indicate that fewer global suppliers and more global customers contribute to a higher level of servitization. The negative effect of global supplier dependence is mitigated when manufacturers have less market power and are the principal customers for most of their suppliers. The positive effect of global customer dependence is stronger when manufacturers have less market power and their customers are less dependent on the manufacturers.

Research limitations/implications

Data mixing manufacturing and service inputs and data on public US manufacturers may restrict the generalizability of the findings. Nonetheless, the study urges future research to focus more on other countries/markets.

Practical implications

This study encourages manufacturers who servitize their businesses to connect with more global customers and fewer global suppliers and manage powers among stakeholders. Other recommendations for policymakers and industry associations are also proposed.

Originality/value

This study is the first to explore the impacts of the global supply chain dependence on servitization. Multiple-level findings offer important implications for researchers and practitioners.

Details

International Journal of Operations & Production Management, vol. 44 no. 1
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 9 May 2020

Feng Liu and Kwangtae Park

The purpose of this study is to conduct an empirical investigation into the impact of supply chain dependence (including customer dependence and supplier dependence) on credit…

1172

Abstract

Purpose

The purpose of this study is to conduct an empirical investigation into the impact of supply chain dependence (including customer dependence and supplier dependence) on credit risk through the lens of social network theory (SNT) by focusing on how to manage firm risk using supply chain relationships in the context of Chinese small and medium-sized enterprises (SMEs).

Design/methodology/approach

Using data from public databases, this study selects a unique sample from a Chinese SME board and uses an ordered logistic regression model to investigate the relationship between the dependence on major customers or suppliers and both credit risk and credit rating. It is found that the results are robust to the use of different empirical methods.

Findings

The main findings of this study are that a firm’s dependence on major customers is positively related to its credit risk but negatively related to its credit rating, while a firm’s dependence on major suppliers is positively related to its credit risk but negatively related to its credit rating.

Originality/value

To broaden the understanding of industrial marketing and purchasing, this study contributes to research on supply chain relationship management and risk management by focusing on SMEs’ dependence on major customers and suppliers and empirically examining the influence of this dependence on both credit risk and credit rating in an emerging market.

Details

Journal of Business & Industrial Marketing, vol. 36 no. 12
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 4 July 2016

Ruey-Jer “Bryan” Jean, Jyh-Shen Chiou and Rudolf R. Sinkovics

This study aims to explore how absorptive and joint learning can foster radical innovation. Furthermore, dependence asymmetry is investigated as a moderator of the effects of…

1296

Abstract

Purpose

This study aims to explore how absorptive and joint learning can foster radical innovation. Furthermore, dependence asymmetry is investigated as a moderator of the effects of these factors on radical innovation. Radical innovation is an important source of any firm’s success. Yet, there has been a dearth of research in the literature on how different types of inter-partner learning cultivate the process of generating such innovation.

Design/methodology/approach

The authors use a sample of 204 Taiwanese electronics suppliers to test the effects of joint learning and absorptive learning on radical innovation. The empirical analysis adopts a structural equations modeling approach.

Findings

The authors find that a supplier’s joint learning has a stronger effect on radical innovation than its absorptive learning. However, when accounting for the moderating effect of dependence asymmetry, the analysis shows that absorptive learning does have a significant effect on radical innovation. The effect of joint learning on radical innovation is not moderated by the degree of dependence asymmetry.

Practical Implications

This study broadens and deepens the understanding of how radical innovation by suppliers can be generated in customer–supplier relationships, and how this is shaped by the power-dependence structure.

Originality/value

Inter-partner learning; radical innovation; power; dependence.

Details

Journal of Business & Industrial Marketing, vol. 31 no. 6
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 2 August 2013

Min Zhang and Baofeng Huo

The purpose of this paper is to investigate the joint influence of dependence and trust in supply chain relationships on supply chain integration (SCI) and financial performance…

5045

Abstract

Purpose

The purpose of this paper is to investigate the joint influence of dependence and trust in supply chain relationships on supply chain integration (SCI) and financial performance.

Design/methodology/approach

This study develops a dependence-trust-SCI-performance model and tests it using structural equation modeling based on empirical data collected from 617 manufacturers in China.

Findings

The results show that trust with customers/suppliers significantly influences SCI. Although dependence on customers/suppliers has no direct effect on SCI, it improves SCI indirectly through trust with customers/suppliers. Both supplier integration and customer integration significantly improve financial performance.

Practical implications

This study suggests that manufacturers should manage dependence and trust in supply chain relationships simultaneously to enable SCI. When there is high-level dependence on customers/suppliers, manufacturers should invest resources to develop trust with those customers/suppliers. Moreover, to achieve a better financial performance, manufacturers should integrate with both customers and suppliers.

Originality/value

This study contributes to the literature by providing empirical evidence regarding the direct effect of trust on SCI, and the indirect influence of dependence on SCI through trust. This extends extant knowledge regarding the joint impact of dependence and trust on SCI. Hence, both researchers and practitioners should pay attention to interdependence among different relationship management practices. Moreover, this study also empirically supports the argument that SCI improves firms ' financial performance.

Details

International Journal of Physical Distribution & Logistics Management, vol. 43 no. 7
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 1 November 2023

Emmanuel Arthur, George Cudjoe Agbemabiese, George Kofi Amoako and Patrick Amfo Anim

This study aims to explore the role customer satisfaction play in mediating the nexus between commitment, trust, relative dependence and customer loyalty from an emerging market…

Abstract

Purpose

This study aims to explore the role customer satisfaction play in mediating the nexus between commitment, trust, relative dependence and customer loyalty from an emerging market context under a business-to-business (B2B) setting.

Design/methodology/approach

The study was a descriptive survey, and using convenience sampling technique, questionnaires were used to gather data from 356 businesses that were distributors of Guinness Ghana Company Limited. Partial least squares structural equation modeling was used to test the proposed hypotheses for this study, and macro-PROCESS was performed to test the mediating effect of customer satisfaction.

Findings

The findings show that relative dependence had the most considerable significant and positive impact on B2B partners satisfaction, followed by commitment and trust, respectively. A positive and significant relationship was also found between B2B firms’ satisfaction and loyalty. The result also indicates that customer satisfaction mediates the relationship between commitment, trust, relative dependence and B2B loyalty.

Practical implications

Practitioners can manipulate specific relative dependence, commitment and trust features to increase customer satisfaction with their firm’s services, thus ensuring longer-term customer loyalty.

Originality/value

Drawing on the social exchange theory, this study provides a more profound perspective focusing on an emerging market context, by examining from a B2B setting the significance of commitment, trust, relative dependence and B2B partners satisfaction on loyalty.

Details

Journal of Business & Industrial Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 20 March 2017

Hari Govind Mishra, Piyush Kumar Sinha and Surabhi Koul

The purpose of this paper is to examine the relationship between customer loyalty and customer dependence in the context of modern format and traditional format stores. In the…

1546

Abstract

Purpose

The purpose of this paper is to examine the relationship between customer loyalty and customer dependence in the context of modern format and traditional format stores. In the process, the role of switching cost and trust in this relationship has been explored.

Design/methodology/approach

Building on the literature, the authors have postulated a conceptual model and formulated relevant hypotheses. Quantitative methodology is applied with previously established. The data were collected through convenient sampling. Methods like Factor analysis, cross-tab and regression analysis have been used.

Findings

The findings indicate a significant relationship between customer loyalty and customer dependence. Switching cost and trust have been found to have a moderating effect over the relationship in both modern and traditional environments.

Research limitations/implications

The limitation is the restriction to the Jammu context. The studies have brought about the difference in attitudinal and behavioural loyalty. Future research can be carried out on the role of dependence in explaining and strengthening this relationship.

Originality/value

The present study provides an insight into for the customer loyalty and customer dependence in the context of modern and traditional retail formats.

Details

Journal of Indian Business Research, vol. 9 no. 1
Type: Research Article
ISSN: 1755-4195

Keywords

Article
Publication date: 1 April 2002

Göran Svensson

The topic of this research focuses on companies’ perceived time and relationship dependencies in supply chains. The empirical findings are based upon a mail survey in the Swedish…

4364

Abstract

The topic of this research focuses on companies’ perceived time and relationship dependencies in supply chains. The empirical findings are based upon a mail survey in the Swedish automotive industry. The principal contribution is a typology of vulnerability scenarios in supply chains based upon perceived time and relationship dependencies towards both suppliers and customers. A methodological contribution of this study is its simultaneous consideration of companies’ inbound and outbound supply chains.

Details

International Journal of Physical Distribution & Logistics Management, vol. 32 no. 3
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 1 December 2004

Göran Svensson

This research focuses on the construct of perceived vulnerability, which is based on the gap between perceived trust and perceived dependence in business relationships with…

4115

Abstract

This research focuses on the construct of perceived vulnerability, which is based on the gap between perceived trust and perceived dependence in business relationships with suppliers and customers. The outcome of this study is generated from the empirical findings of a survey in the Swedish vehicle industry. These empirical findings indicate that there is to a large extent a significant association between companies' perceived trust and dependence in business relationships towards their suppliers and customers, i.e. that trust is important in lean business relationships. The contributions of this research are a generic conceptualisation of the vulnerability construct, a see‐saw model of perceived vulnerability and a typology of perceived vulnerability scenarios in business relationships.

Details

Journal of Business & Industrial Marketing, vol. 19 no. 7
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 26 July 2019

Dong-Young Kim

The purpose of this paper is to investigate whether supplier dependence is related to innovation in supplier firms. Drawing on resource dependence theory, the authors hypothesized…

Abstract

Purpose

The purpose of this paper is to investigate whether supplier dependence is related to innovation in supplier firms. Drawing on resource dependence theory, the authors hypothesized that supplier dependence has both positive and negative relationships to the quantity and quality of innovation.

Design/methodology/approach

The study is based on data collected from US companies. Negative binomial regression analysis was used to test the proposed hypothesis.

Findings

The authors found that the quantity of innovation of a supplier firm initially decreased and then increased with the extent of the dependence upon major customers. This finding supports the idea that the benefits of supplier dependence mitigate the negative outcomes of dependence upon major customers.

Originality/value

This study extends the literature on supplier dependence by empirically examining the relationship between supplier dependence and the quantity and quality of innovation within the context of high-technology industries. The authors provide a holistic understanding of the value of the dependent relationship in boosting innovation in the context of supply chain management.

Details

Journal of Manufacturing Technology Management, vol. 31 no. 2
Type: Research Article
ISSN: 1741-038X

Keywords

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