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Article
Publication date: 3 July 2017

Frank Wiengarten and Eamonn Ambrose

The purpose of this paper is to investigate the extent to which the geographical location of and thus the geographical distance between buyer and supplier impact on the…

1168

Abstract

Purpose

The purpose of this paper is to investigate the extent to which the geographical location of and thus the geographical distance between buyer and supplier impact on the efficacy of purchasing practices (i.e. strategic purchasing management, tactical purchasing management, relational purchasing management) in terms of operational performance.

Design/methodology/approach

The authors utilise cross-country data collected through the International Purchasing Survey group across a variety of countries and industry sectors. The authors conduct exploratory factor analysis to assess construct validity and regression analysis to test the varying effects of purchasing practices on operational performance. The authors split the sample to compare potential differences in the efficacy of purchasing practices between buyers and suppliers through geographical characteristics.

Findings

The results indicate that the efficacy of purchasing practices does indeed vary depending on differences in geographical location. Specifically, the authors identify that in cases where the buyer and supplier are located in the same country tactical and relational purchasing tools have a positive impact on operational performance. However, in cases where they are situated in different countries none of the purchasing tools seems to significantly improve operational performance.

Originality/value

Research that has taken a cross-country perspective on the efficacy of supply chain practices is surprisingly sparse. Since most supply chains are becoming more and more global it is important to consider the geographical location of the supply chain members when assessing the performance benefits of supply chain practices such as purchasing tools. Thus, the authors introduce and test the concept of geographical distance on the efficacy of purchasing practices at the dyadic level. To test the implications of geographical distance for purchasing practices the authors use a large-scale cross-country survey.

Details

International Journal of Operations & Production Management, vol. 37 no. 7
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 20 August 2021

Pollawat Chumnangoon, Anukal Chiralaksanakul and Asda Chintakananda

This study aims to investigate the impacts of geographical proximity on social capital development through the inter-relationship between three social capital dimensions…

Abstract

Purpose

This study aims to investigate the impacts of geographical proximity on social capital development through the inter-relationship between three social capital dimensions (structural, relational and cognitive dimension) and the knowledge sharing between small- and medium-sized enterprises (SMEs). The authors empirically test a main hypothesis that the mechanism of social capital development that subsequently results in tacit knowledge sharing is different for SME buyer-supplier partners across their different geographical distances.

Design/methodology/approach

Multiple-group analysis in structural equation modeling (SEM) was conducted to test the research hypotheses using data collected from approximately 200 SMEs in Thailand’s food industry.

Findings

At a great geographical distance, the structural dimension impacts the cognitive dimension only in an indirect way through a relational dimension, which subsequently leads to knowledge sharing between SME buyer-supplier partners. At close geographical proximity, while the indirect impact of structural dimension on cognitive dimension through a relational dimension is still presented as it is in a great geographical distance, structural dimension has a positive and direct impact on the cognitive dimension as a complementary way to jointly reinforce knowledge sharing between SME partners. Among distant SME partners, the relational dimension shows a stronger impact on the cognitive dimension. In contrast, the direct influence of structural, relational and cognitive dimensions on knowledge sharing is identical, regardless of geographical distance.

Practical implications

The managers of SMEs can design their network-building approach in such a way that different location partners can enhance knowledge sharing. Policymakers could consider these results as a guideline when imposing SME development policies and geographical cluster policies in emerging economies.

Originality/value

This study provides empirical evidence that demonstrates how geographical proximity between SME partners in an emerging economy influences their social proximity through the lens of social capital development mechanism and thus leads to knowledge sharing between them.

Details

Competitiveness Review: An International Business Journal , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 1 August 2016

Stephen Lee

The purpose of this paper is to examine whether geographical distance or economic distance offers greater diversification benefits in the UK office market.

Abstract

Purpose

The purpose of this paper is to examine whether geographical distance or economic distance offers greater diversification benefits in the UK office market.

Design/methodology/approach

The real estate investment data for this study come from the Investment Property Databank analysis “UK Quarterly Key Centres Q2 2015”. The author measures the geographical distance between the City of London and 27 local authorities (LAs) by road distance. The author used the market size and employment structure of the LAs relative to the City of London to calculate economic distance.

Findings

The results show that LAs that are classified on their economic distance show significant negative office rental growth correlations with the City of London. In contrast, geographical distance shows no relationship. Results are consistent for the overall sample period and for various periods.

Practical implications

Spatial diversity is a fundamental tenet of real estate portfolio management and the results here show that it is better to diversify by across office markets in the UK using the economic attributes of LAs rather than the physical distance between locations.

Originality/value

This is one of only two papers to explicitly examine whether economic distance or geographical distance leads to significantly lower rental growth coefficients between locations in office markets and the first in the UK.

Details

Journal of European Real Estate Research, vol. 9 no. 2
Type: Research Article
ISSN: 1753-9269

Keywords

Article
Publication date: 24 April 2013

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…

4054

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.

Details

Supply Chain Management: An International Journal, vol. 18 no. 3
Type: Research Article
ISSN: 1359-8546

Keywords

Book part
Publication date: 24 May 2007

Frederic Carluer

“It should also be noted that the objective of convergence and equal distribution, including across under-performing areas, can hinder efforts to generate growth

Abstract

“It should also be noted that the objective of convergence and equal distribution, including across under-performing areas, can hinder efforts to generate growth. Contrariwise, the objective of competitiveness can exacerbate regional and social inequalities, by targeting efforts on zones of excellence where projects achieve greater returns (dynamic major cities, higher levels of general education, the most advanced projects, infrastructures with the heaviest traffic, and so on). If cohesion policy and the Lisbon Strategy come into conflict, it must be borne in mind that the former, for the moment, is founded on a rather more solid legal foundation than the latter” European Commission (2005, p. 9)Adaptation of Cohesion Policy to the Enlarged Europe and the Lisbon and Gothenburg Objectives.

Details

Managing Conflict in Economic Convergence of Regions in Greater Europe
Type: Book
ISBN: 978-1-84950-451-5

Article
Publication date: 24 February 2022

Xuhui Wang, Bo Zhao and Jiaqi Chen

As Chinese imported cross-border e-commerce has entered a stage of rapid development, the problem of consumer shopping risk is increasingly prominent and the crisis of…

Abstract

Purpose

As Chinese imported cross-border e-commerce has entered a stage of rapid development, the problem of consumer shopping risk is increasingly prominent and the crisis of consumer trust is intensified. The theory of establishing consumer trust in traditional online shopping can no longer meet the need of cross-border context.

Design/methodology/approach

The researchers used the methods of network logs and grounded theory. The data collection and analysis are conducted on consumer comments from Tmall Global, NetEase Koala and JD Worldwide in the product comment area. This article explored and extracted the moderating variables of consumer perceived risk and cross-border characteristics in cross-border e-commerce. Based on the theory of “perceived risk – consumer trust – consumer purchase decision – making,” this article deduced mechanism of consumer dynamic trust based on the whole process of cross-border e-commerce transaction.

Findings

In the prepurchase, purchase and postpurchase stages of cross-border e-commerce transactions, consumers' perceived cognitive risk, transaction risk and utility risk are moderated by the cultural distance, geographical distance and institutional distance caused by the cross-border transaction subjects. On this basis, the preinfluence factors of trust in each transaction stage are synthesized to respectively influence the establishment of cognitive trust, emotional trust and behavioral trust, so as to affect consumers to make the order payment, confirm receipt and praise repurchase decisions. At the same time, with the advance of prepurchase, purchase and postpurchase transactions in cross-border online shopping, consumer trust presents a dynamic evolutionary path of “cognitive trust – emotional trust – behavioral trust.”

Originality/value

This article expands the application context of the theory of consumer rational behavior from traditional online shopping to the context of cross-border online shopping and expands the scope of interpretation of the theory of consumer rational behavior. This article also supplements the theoretical gaps in the dynamic evolution of consumer trust in cross-border online shopping, enriches the decision-making process model of consumers in the context of cross-border online shopping and provides new ideas for follow-up research.

Details

Journal of Contemporary Marketing Science, vol. 5 no. 1
Type: Research Article
ISSN: 2516-7480

Keywords

Article
Publication date: 19 June 2021

Manuel Chabier Escolá, Raul Serrano and Juan Ramón Ferrer

The purpose of this paper is to investigate the moderating effect of business networks on the export performance of firms.

Abstract

Purpose

The purpose of this paper is to investigate the moderating effect of business networks on the export performance of firms.

Design/methodology/approach

Following recent studies conducted from a network perspective, this moderating effect is studied for different types of business networks. To do this, a two-step Heckman-probit model is implemented for a sample of more than 2,000 manufacturing companies with information from the years 2006 to 2012. This study analyses the effect of nine variables of institutional distance between Spain and four geographical areas for collaborating and non-collaborating firms.

Findings

The main contribution of this paper is suggesting that vertical networks reduce the negative effects of institutional distance faced by the company in the early stages of its export process.

Practical implications

According to the results of this paper, managers should make a greater effort to expand their networks when they want to start exporting to further markets, as some networks reduces the negative effect of distance on export propensity. Moreover, the results also suggest that participating within a network may not be sufficient to increase the propensity to export of a firm, being important the kind of network in which companies participate.

Originality/value

The originality of this paper lies in providing empirical evidence that distinct kind of networks have different effect on the internationalisation process of companies, and that they affect not only directly as previous studies showed but also indirectly moderating the negative effect of the differences between markets.

Details

Competitiveness Review: An International Business Journal , vol. 32 no. 1
Type: Research Article
ISSN: 1059-5422

Keywords

Open Access
Article
Publication date: 17 July 2017

Vicente Rodríguez, Cristina Olarte-Pascual and Manuela Saco

The purpose of this paper is to study the optimization of the geographical location of a network of points of sale, so that each retailer can have access to a potential…

2939

Abstract

Purpose

The purpose of this paper is to study the optimization of the geographical location of a network of points of sale, so that each retailer can have access to a potential geographic market. In addition, the authors study the importance of the distance variable in the commercial viability of a point of sale and a network of points of sale, analysing if the best location for each point (local optimum) is always the best location for the whole (global optimum).

Design/methodology/approach

Location-allocation models are applied using p-median algorithms and spatial competition maximization to analyse the actual journeys of 64,740 car buyers in 1240 postal codes using a geographic information system (GIS) and geomarketing techniques.

Findings

The models show that the pursuit of individual objectives by each concessionaire over the collective provides poorer results for the whole network of points of sale when compared to coordinated competition. The solutions provided by the models considering geographic and marketing criteria permit a reduction in the length of journeys made by the buyers. GIS allows the optimal control of market demand coverage through the collaborative strategies of the supplying retailers, in this case, car dealerships.

Originality/value

The paper contributes to the joint research of geography and marketing from a theoretical and practical point of view. The main contribution is the use of information on actual buyer journeys for the optimal location of a network of points of sale. This research also contributes to the analysis of the correlation between the optimum local and optimum global locations of a commercial network and is a pioneering work in the application of these models to the automotive sector in the territorial area of the study.

Details

European Journal of Management and Business Economics, vol. 26 no. 2
Type: Research Article
ISSN: 2444-8451

Keywords

Article
Publication date: 7 March 2008

Arto Ojala and Pasi Tyrväinen

The purpose of this paper is to investigate market entry decisions of the US software SMEs by analyzing the impact of the most obvious factors (cultural distance

3722

Abstract

Purpose

The purpose of this paper is to investigate market entry decisions of the US software SMEs by analyzing the impact of the most obvious factors (cultural distance, geographical distance, country risk, and three market size variables) in traditional internationalization theories to target country selection. By investigating the influence of these commonly cited macro‐level factors, this study proposes the best indicator for market entry decisions of the US small and medium‐sized software firms.

Design/methodology/approach

This study uses a quantitative research approach applied to a sample of 100 US small and medium‐sized software firms.

Findings

Empirical findings in this study indicate that vertical (software) market size in a target country is the best single indicator for market entry decision and in themselves explain 63 percent of market entries. Thus, the findings in this study suggest that the vertical market size gives a better explanation for market entry decisions of software SMEs than the earlier widely used variables.

Research implications/limitations

Integrating earlier findings related to firm‐level factors with findings of macro‐level factors will help theory development and will facilitate obtaining a more holistic view of internationalization of knowledge‐intensive SMEs.

Practical implications

Findings in this study imply that managers should take an active role when they develop network relationships for the market entry. If a firm takes a passive role in networking, it might lose market opportunities available in the leading markets and end up in countries where the real market potential is low.

Originality/value

This paper highlights vertical market size, which has been largely ignored in earlier studies, as the most important indicator for international market entry decision.

Details

Management Decision, vol. 46 no. 2
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 20 January 2012

Verónica Baena

The purpose of this paper is to introduce a model that explores various possible determining factors in the rate of franchising among emerging nations. Emerging markets…

4778

Abstract

Purpose

The purpose of this paper is to introduce a model that explores various possible determining factors in the rate of franchising among emerging nations. Emerging markets are some of the fastest growing economies in the world; moreover, the countries they represent are undergoing substantial economic transformations. Yet despite all this, little is known about the factors influencing country selection for expansion into these markets. In an attempt to enhance the knowledge that managers and scholars have on franchising expansion, the present study examines how market conditions may constrain diffusion of franchising into emerging markets. They are: geographical distance; cultural distance; uncertainty avoidance; individualism; political stability, and corruption. The author also controlled for gross domestic product, the efficiency of contract enforcement, and nascent entrepreneurship.

Design/methodology/approach

This study uses a quantitative approach applied to a sample of 63 Spanish franchisors with 2,836 franchisee outlets operating across the emerging countries.

Findings

Results conclude that geographical distance, uncertainty avoidance, individualism, political stability, corruption, gross domestic product, efficiency of contract enforcement, and nascent entrepreneurship are able to constrain the spread of franchising across emerging nations.

Research limitations/implications

This study provides readers with a general overview of the current state of global franchising diffusion overseas. Results obtained in this study are useful for understanding and predicting the demand for franchising in emerging countries.

Practical implications

The present manuscript develops and tests a model that can be useful not only to academics interested in broadening their knowledge regarding global franchising, but also to firm managers wanting to establish new outlets in emerging nations. Thus, franchisors may use the results of this study as a starting point for identifying the emerging regions whose characteristics best meet their needs of expansion.

Originality/value

This paper explores how certain market conditions may drive international diffusion of franchising into emerging markets. The scant theoretical or empirical attention given to this topic has usually been examined from a US base and focused on developed markets. To fill this gap, the present study analyzes the international spread of the Spanish franchise system, which since 2008 has ranked fifth worldwide in terms of both the number of franchisors and the quantity of franchisee outlets across emerging markets.

Details

International Journal of Emerging Markets, vol. 7 no. 1
Type: Research Article
ISSN: 1746-8809

Keywords

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