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1 – 10 of over 20000Jennifer Itzkowitz and Anthony Loviscek
The purpose of this paper is to determine if there is a significant difference in the investment risks between small-cap manufacturers that heavily depend on one or a few buyers…
Abstract
Purpose
The purpose of this paper is to determine if there is a significant difference in the investment risks between small-cap manufacturers that heavily depend on one or a few buyers, referred to as “dependent-buyers,” and small-cap manufacturers that have a more diversified customer base. If there is a significant difference both statistically and economically, then investors need to be aware of the dependent-buyer effect in their security selection and portfolio construction efforts.
Design/methodology/approach
Using large samples of firm-level data from 2000 through 2011, the authors employ standard risk estimation modeling to compute βs, idiosyncratic risks, and total risks of both dependent-buyer firms and firms with a more diversified customer base.
Findings
The authors find that the βs, idiosyncratic risks, and total risks of dependent-buyer firms are much greater than that of firms not in dependent relationships. These differences are both statistically and economically significant.
Research limitations/implications
Buyer-supplier relationships can change quickly, and so a firm that has a diversified base in one period, for example, could be a dependent-buyer in the next period. Much depends on the reporting accuracy of firms and the ability of the securities exchange commission (SEC) to track the relationships.
Practical implications
First, the risk of individual small-cap stocks is likely to be greater than perceived from macro-level data, leading to the need for more securities if idiosyncratic risk is to be eliminated. Second, small-cap investors have the opportunity to enhance portfolio construction efficiency by referencing data published by the SEC. Third, most investors interested in small-cap manufacturing stocks should find it prudent to allocate a large percentage of their small-cap investments to an index fund. While this may sacrifice higher returns, it also reduces the probability of experiencing an unpleasant small-stock effect.
Originality/value
This is the first study to show that the difference in investment risks between small-cap manufacturers that depend on one or a few firms for their outputs and small-cap manufacturers that have a well-diversified customer base is statistically and economically significant, information that should be valuable to investors in their security selection and portfolio construction efforts.
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The objective of this study is to investigate how country risk, different political actions from the government and bureaucratic behavior influence the activities in industry…
Abstract
The objective of this study is to investigate how country risk, different political actions from the government and bureaucratic behavior influence the activities in industry supply chains (SCs) in emerging markets. The main objective of this study is to investigate the influence of these external stakeholders’ elements to the demand-side and supply-side drivers and barriers for improving competitiveness of Ready-Made Garment (RMG) industry in the way of analyzing supply chain. Considering the phenomenon of recent change in the RMG business environment and the competitiveness issues this study uses the principles of stakeholder and resource dependence theory and aims to find out some factors which influence to make an efficient supply chain for improving competitiveness. The RMG industry of Bangladesh is the case application of this study. Following a positivist paradigm, this study adopts a two phase sequential mixed-method research design consisting of qualitative and quantitative approaches. A tentative research model is developed first based on extensive literature review. Qualitative field study is then carried out to fine tune the initial research model. Findings from the qualitative method are also used to develop measures and instruments for the next phase of quantitative method. A survey is carried out with sample of top and middle level executives of different garment companies of Dhaka city in Bangladesh and the collected quantitative data are analyzed by partial least square-based structural equation modeling. The findings support eight hypotheses. From the analysis the external stakeholders’ elements like bureaucratic behavior and country risk have significant influence to the barriers. From the internal stakeholders’ point of view the manufacturers’ and buyers’ drivers have significant influence on the competitiveness. Therefore, stakeholders need to take proper action to reduce the barriers and increase the drivers, as the drivers have positive influence to improve competitiveness.
This study has both theoretical and practical contributions. This study represents an important contribution to the theory by integrating two theoretical perceptions to identify factors of the RMG industry’s SC that affect the competitiveness of the RMG industry. This research study contributes to the understanding of both external and internal stakeholders of national and international perspectives in the RMG (textile and clothing) business. It combines the insights of stakeholder and resource dependence theories along with the concept of the SC in improving effectiveness. In a practical sense, this study certainly contributes to the Bangladeshi RMG industry. In accordance with the desire of the RMG manufacturers, the research has shown that some influential constructs of the RMG industry’s SC affect the competitiveness of the RMG industry. The outcome of the study is useful for various stakeholders of the Bangladeshi RMG industry sector ranging from the government to various private organizations. The applications of this study are extendable through further adaptation in other industries and various geographic contexts.
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Tugba Gurcaylilar-Yenidogan and Dilek Erdogan
Based on a survey study of 138 software buyers in Turkey, this study examines conditional indirect effects of requirements uncertainty on supplier opportunism where buyer…
Abstract
Purpose
Based on a survey study of 138 software buyers in Turkey, this study examines conditional indirect effects of requirements uncertainty on supplier opportunism where buyer dependence, a proxy for relation-specific investments, undertakes a mediator role. The authors consider a two-level moderation effect of trust and contract in buyer–supplier relationships throughout the software project lifecycle.
Design/methodology/approach
A survey-based empirical study was conducted, and conditional process analyses were run using PROCESS macro in SPSS. The present study tests a two-stage moderated mediation model in which competence-based trust with a detailed contract setting moderates the mediational path from requirements uncertainty to buyer dependence.
Findings
The data obtained from the buyer side in the Turkish software industry showed that a relationship in which the buyer is structurally dependent begins at a high level of trust. On the other hand, the authors found that contractual rigidity fosters supplier opportunism ex-post in evolving process of the relationship.
Originality/value
This study contributes to project management literature by testing a two-level moderation effect of governance and the mediator role of buyer dependence in the relationship between requirements uncertainty and supplier opportunism. Moving differently from the previous studies, this study integrates contributions of both economic perspectives, such as resource dependence theory and transaction cost analysis, and relational perspectives into the information processing view.
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Stefan Ulstrup Hoejmose, Johanne Grosvold and Andrew Millington
The purpose of this study is to analyse the role of relational power/dependent asymmetries and symmetries in shaping socially responsible supply chain management, whilst also…
Abstract
Purpose
The purpose of this study is to analyse the role of relational power/dependent asymmetries and symmetries in shaping socially responsible supply chain management, whilst also examining how these issues are moderated by geographical distance between buyer and supplier.
Design/methodology/approach
The study draws on data from 339 buyer‐supplier relationships, and the authors use a set of regression models to test their hypotheses.
Findings
Joint dependency positively influences socially responsible supply chain management, whilst supplier power constrains it. Both joint dependency and buyer power become increasingly important determinants of socially responsible supply chain management as geographic distance increases.
Research limitations/implications
Further work is needed to examine the conditions under which organisations will exercise their power advantage or their joint dependence position to improve socially responsible processes in the supply chain, as there may be situations where the buyer chooses not to exercise their power positions.
Practical implications
The authors' results indicate that jointly dependent relationships create the best conditions for socially responsible supply chain management, but they also find that supplier power advantage can constrain such initiatives.
Originality/value
This is the first paper to systematically analyse the implementation of socially responsible supply chain management, within a model that considers power a/symmetric positions of the buyer‐supplier relationship, and the role of geographical distance as a moderating influence on these power positions.
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Chengyong Xiao, Boyana Petkova, Eric Molleman and Taco van der Vaart
Technology uncertainty poses significant challenges to manufacturers, as rapid changes in product and/or process standards and specifications can disrupt the smooth flow of…
Abstract
Purpose
Technology uncertainty poses significant challenges to manufacturers, as rapid changes in product and/or process standards and specifications can disrupt the smooth flow of materials in extended supply chains. Practitioners and researchers alike who take a relational perspective widely regard supplier involvement as a potentially effective strategy to cope with technology uncertainty, as focal manufacturers can tap into their upstream supply networks for complementary resources and capabilities. However, the literature lacks a nuanced understanding of the supplier involvement processes. Specifically, the role of resource dependence for supplier involvement has yet to be systematically understood. To fill this gap, this study aims to combine the relational perspective with the resource-dependence perspective to explore how buyer dependence, supplier dependence and buyer–supplier interdependence influence buyers’ decision-making on tapping into upstream supply networks for coping with technology uncertainty.
Design/methodology/approach
To test the hypotheses, a survey is conducted among Dutch firms with more than 50 employees in the discrete manufacturing industries (ISIC 28-35), resulting in a sample of 125 manufacturers.
Findings
First, there is a significantly positive relationship between technology uncertainty and supplier involvement, giving support to the expectation that buyers are indeed involving their key suppliers in the product/process design and improvement, as a response to technology uncertainty. Second, buyer dependence and interdependence are found to be positively moderating the relationship between technology uncertainty and supplier involvement. In contrast, supplier dependence has a negative moderating effect on the baseline relationship.
Research limitations/implications
The authors contribute to a relational view on buyer–supplier relationships by showing that the validity of this view, in the context of technology uncertainty, is contingent on the resource dependence between buyers and suppliers, and the authors contribute to the supply chain management literature more generally by combining a relational perspective with a resource-dependence perspective.
Practical implications
The findings provide several nuanced insights into the effect of resource dependence (buyer dependence, supplier dependence and interdependence) on supplier involvement for coping with technology uncertainty.
Originality/value
This study contributes to the supply chain management research by going beyond the benefits of supplier involvement and highlights the circumstances under which supplier involvement is likely to occur.
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Jessica J. Hoppner, David A. Griffith and ChangSeob Yeo
The purpose of this study, drawing from exchange theory, is to examine how the intertwined relationships between power, justice and relative dependence influence relationship…
Abstract
Purpose
The purpose of this study, drawing from exchange theory, is to examine how the intertwined relationships between power, justice and relative dependence influence relationship performance in buyer – seller relationships.
Design/methodology/approach
A two-wave structural equation model with latent variable interactions was estimated on a dataset of 283 buyer – seller relationships.
Findings
Exercised coercive and reward power follow different processes, direct and indirect, to influence relationship performance. The use of coercion was found to be substantively more detrimental to the buyer – seller relationship than the use of rewards were beneficial. Relative dependence tempers the negative influence of coercion.
Research limitations/implications
Managers of buyer – seller relationships need to be judicious in their use of coercion and rewards. In their efforts to manage relationship performance, whenever possible, managers should seek to avoid punishing their partner more so than they should seek to reward them.
Originality/value
Although proposed under a single theoretical perspective, power and justice have developed as separate streams within the extant literature. Examining these constructs together can increase the current understanding of how to manage buyer – seller relationships.
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Ye Peng, Xuan Zhang, Dirk Pieter van Donk and Can Wang
Buyer engagement proves important supports for suppliers' corporate social responsibility (CSR); however, little is known about whether and how buyer CSR engagement can be…
Abstract
Purpose
Buyer engagement proves important supports for suppliers' corporate social responsibility (CSR); however, little is known about whether and how buyer CSR engagement can be actively searched for by a supplier and what activities and policies of suppliers could enhance buyer CSR engagement. From the perspective of resource dependence theory, this study aims to explore how suppliers seek to achieve buyers' CSR engagement.
Design/methodology/approach
The proposed model and hypotheses were tested by structural equation modeling methodology using survey data collected from 243 manufacturing and service firms in China.
Findings
The results show that instrumental CSR motives and internalization of CSR policies jointly improve buyers' dependence, which in turn increases buyers' CSR engagement. In addition, this study investigates the influence of suppliers' trust on the effect of buyers' dependence on buyers' CSR engagement and finds a negative moderating effect on the dependence–engagement relation.
Practical implications
The findings show that suppliers can actively engage in CSR to strengthen their position and improve the buyer CSR engagement. In fact, proactive CSR policies and implementation do pay off in the long run for them.
Originality/value
This study offers a fresh perspective on the role of suppliers in improving CSR. In contrast to much of the literature that has considered buyer-initiated practices and policies, this is the first theoretical and empirical investigation into how suppliers can increase the buyer CSR engagement.
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Byung-Gak Son, Hyojin Kim, Daesik Hur and Nachiappan Subramanian
In this paper, the authors seek to contribute to the supply chain digitalisation literature by investigating a potential dark side of supply chain digitalisation from the…
Abstract
Purpose
In this paper, the authors seek to contribute to the supply chain digitalisation literature by investigating a potential dark side of supply chain digitalisation from the viewpoint of the small and medium-sized enterprise (SME) suppliers, namely digital capability asymmetry and the partner opportunism of more digitally capable large buyers against SME suppliers. The authors seek to contribute further to the governance literature by investigating the effectiveness of the governance mechanism (legal contracts and relational contracts) in suppressing partner opportunism of this nature.
Design/methodology/approach
Using survey data collected from 125 Korean SMEs, the authors employed a hierarchical regression method to test a set of hypotheses focussing on the dark side of supply chain digitalisation and the effectiveness of the governance mechanism.
Findings
The study’s findings suggest that supplier-perceived digital capability asymmetry, wherein a buyer has a superior digital capability than its SME supplier, increases the SME supplier's dependence on the more digitally capable buyer, with the result that it is more exposed to buyer opportunism. Moreover, the results suggest that only relational governance is effective in protecting SME suppliers from buyer opportunism of this nature.
Originality/value
So far, the overwhelming majority of supply chain digitalisation research has debated its “bright side”. On the contrary, from the resource dependence theory perspective, this paper explains its dark side by providing empirical evidence on (1) the links between supplier-perceived digital capability asymmetry and a buyer's opportunism through an increased supplier's dependence and (2) the effectiveness of different types of governance in opportunism suppression.
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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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PohLean Chuah, Wai Peng Wong, T. Ramayah and M. Jantan
This paper aims to examine the relationships among supplier management practices, organizational context and supplier performance. The contexts selected for supplier management…
Abstract
Purpose
This paper aims to examine the relationships among supplier management practices, organizational context and supplier performance. The contexts selected for supplier management practices are economics transactional practices and high involvement work practices (HIWP); while power asymmetry and competition intensity are considered within the organizational context.
Design/methodology/approach
A questionnaire survey was conducted on a multinational semiconductor company. A two‐phase statistical analysis, which comprised phase one (reliability and factor analysis), and phase two (hierarchical multiple regression analysis), was used to analyze the data.
Findings
The study provides empirical evidence to support the conceptual and prescriptive statements in the literature regarding the impact of supplier management practices and the dynamics between organizational context and supplier management towards supplier performance. The results show that high involvement work practices (HIWP) mediate the impact of competition intensity on suppliers' quality performance and partially mediate the effect of competition intensity on suppliers' flexibility. The limitation of this study is that it does not use longitudinal data, which would be more useful to examine changes in variables that affect performance; nevertheless, as this study was conducted in‐house, it was able to control the extraneous factors.
Originality/value
The study provides important insights for managers to understand the disposition of the firm to better leverage organizational context by exploiting relationships with suppliers. The paper has extended organizational theory and marketing theory into a supply chain context. Moreover, it is among the first empirical work that specifically investigates the relationship between organizational context and supplier management practices; thus the paper fills an important gap in the supply chain literature.
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