Search results

1 – 8 of 8
To view the access options for this content please click here
Article
Publication date: 5 March 2018

Daniel Chicksand and Jakob Rehme

The purpose of this paper is to consider how value can be better defined and to understand the drivers of value appropriation in business relationships. In doing so, the…

Abstract

Purpose

The purpose of this paper is to consider how value can be better defined and to understand the drivers of value appropriation in business relationships. In doing so, the authors explore the role that power plays in determining the sharing of value in those relationships.

Design/methodology/approach

This paper contains a conceptual discussion about value and the appropriation of value in business relationships, which leads to the development of a methodology for assessing the sharing of value.

Findings

In this paper, the authors have developed a view of total value in supply chain relationships. They argue that the value of the relationship is the sum of the customer and supplier value, including both tangible and intangible benefits and sacrifices. In addition, they maintain that the appropriation of value in a business relationship is reliant upon: the power both parties possess; the direct and tangible value each party has to offer; and the indirect and intangible value that each has to offer. They also provide a methodology, which can be used to determine the sharing of value between two actors within a business exchange.

Research limitations/implications

In arriving at the conceptualisation of total value and in the discussion of value appropriation in business relationships, the authors drew upon extant literature. However, a limitation is that they were unable to fully consider all the academic discourse centred on value and value appropriation.

Originality/value

The discussion brings together the issues of customer value and supplier value to the concept of “total value”. Thereafter, it links the contentious issue of buyer and supplier power, so as to better understand the appropriation of value in business relationships.

Details

Journal of Business & Industrial Marketing, vol. 33 no. 2
Type: Research Article
ISSN: 0885-8624

Keywords

To view the access options for this content please click here
Article
Publication date: 24 July 2009

Per‐Olof Brehmer and Jakob Rehme

Key account management (KAM) programmes are a way for companies to develop existing relationships and increase sales, thus being proactive and searching for opportunities…

Abstract

Purpose

Key account management (KAM) programmes are a way for companies to develop existing relationships and increase sales, thus being proactive and searching for opportunities (which is often expected of KAM). It is also a way to meet changing customer demands arising from changes in purchasing strategy, buyers' mergers and acquisitions and the search for synergies in order to reduce costs. The purpose of this article is to analyse different key account management programmes on how they manage the sales process complexity and customer expectations.

Design/methodology/approach

The paper draws on qualitative data collected during a field study of ABB and six of their major customers, based on annual or biannual interviews with 50 individuals within ABB from 1996 to 2006 and three to ten individuals from each of the customers. Interviewees included corporate managers, key account managers and sales personnel/project managers. The customers involved in the study belonged to mining, automotive, process equipment manufacture, building technology, energy production and telecommunication sectors.

Findings

In this study three different programmes are identified and analysed: the proactive programme – which is driven by sales opportunity; the reactive programme – which is driven by customer demands; and the organisation‐based programme – which is driven by the belief in customer‐centric organisational units.

Practical implications

The paper identifies sales aspects (complexities) of KAM programmes that are handled in different ways by different types of programmes.

Originality/value

With an empirical base the paper provides a basis for understanding the reasons behind the establishment of several KAM programmes in the same corporation.

Details

European Journal of Marketing, vol. 43 no. 7/8
Type: Research Article
ISSN: 0309-0566

Keywords

To view the access options for this content please click here
Article
Publication date: 26 July 2013

Jakob Rehme, Christian Kowalkowski and Daniel Nordigården

The existing literature on key account management (KAM) has focused more on sales forces and management levels than on their evolution. The purpose of this paper is to…

Abstract

Purpose

The existing literature on key account management (KAM) has focused more on sales forces and management levels than on their evolution. The purpose of this paper is to explore how sales activities can be coordinated to accommodate national and international KAM programs.

Design/methodology/approach

The paper is based on a longitudinal study of the industrial conglomerate ABB, 1996‐2008.

Findings

The diversity associated with geography and product complexity creates demands for a more flexible organization that can provide a more complete offering portfolio across national boundaries and still handle the demands of local organizations. In addition to internal organizational contingencies, the key factors and driving forces for the development of KAM programs are the marketing and purchasing strategies that buyer and seller firms perceive and encounter.

Research limitations/implications

The data are limited to one corporation and some of its key customers in different industries. Although the internal and construct validity of the findings are strong, the external validity cannot be assessed precisely.

Originality/value

The 12‐year study brings valuable insights to the development of KAM programs in multinational corporations and addresses coordination issues related to geographical and product complexity.

To view the access options for this content please click here
Article
Publication date: 15 June 2012

Wei Guan, Jakob Rehme and Tomas Nord

To understand the potential for various types of retailers, it is essential to appreciate retailer' positioning in the marketplace. Positioning has a critical effect on…

Abstract

Purpose

To understand the potential for various types of retailers, it is essential to appreciate retailer' positioning in the marketplace. Positioning has a critical effect on retailers' competitiveness and performance. Despite the significance and popularity of retail positioning, a few gaps remain that prompt the need for this research. First, little has been written about positioning in the building materials distribution industry, as compared with other retail sectors. Second, the retail classification literature has rarely included positioning as a dimension of retailer characteristics, although, in essence, they are both ways to understand retailer strategy and behaviour. To fill these research gaps, the objective of this research is to contribute to retail positioning research, using the Swedish building material distribution industry as a study setting. Specifically, it has two key goals: to develop a classification framework focusing on the Swedish building material distribution market; and to analyse those distributors by strategic groups and identify their common business priorities.

Design/methodology/approach

This research looked at a majority of building material distributors in the Swedish market. A total of 23 interviews were conducted with managing directors or similar from case companies. Interviews ranged from 40 to 90 minutes in duration. This research adapted materials developed for other purposes in order to enhance and strengthen primary data.

Findings

This study develops a classification framework of building material distributors and provides an overview of distributors operating in the Swedish markets. Drawing on theory from retail positioning and classification, the research result suggests that the studied distributors can be classified into three strategic groups: DIY‐service focused; DIY‐cost focused; and builders' merchant (BM)‐service focused. Research also showed that distinguishing building material distributor by customer type is not as effective as it once was; there is a trend of internationalisation in the Swedish building material distribution industry; and distributors exert growing central control over certain areas, such as purchasing and marketing.

Originality/value

The building material distribution industry attracts little research attention when compared to other sectors, for instance food and grocery retailing. Given this, the value of this article lies in identifying the leading companies in Sweden and offering strategic analysis of their business developments and focus. Insights into building material distributors' supply requirements are provided.

Details

International Journal of Retail & Distribution Management, vol. 40 no. 8
Type: Research Article
ISSN: 0959-0552

Keywords

To view the access options for this content please click here
Article
Publication date: 9 March 2012

Wei Guan and Jakob Rehme

Strategic concentration is a key issue for manufacturing companies when designing a supply chain. As a corporate strategy and a supply chain governance strategy, vertical…

Abstract

Purpose

Strategic concentration is a key issue for manufacturing companies when designing a supply chain. As a corporate strategy and a supply chain governance strategy, vertical integration relates to organisational economics and strategic supply chain management. Numerous explanations have been created for vertical integration, and transaction cost economics (TCE) provides a theoretical basis to help understand the process. However, the current popularity of vertical integration seems inspired by something more than altering industry structure and minimising cost, which are the traditionally accepted explanations for vertical integration This paper aims to explore the driving forces for vertical integration, particularly downstream integration of distribution, and the consequences of vertical integration in a manufacturer‐distributor‐reseller chain.

Design/methodology/approach

This study adopted an exploratory case study approach to examine a Swedish‐based timber manufacturer that vertically integrated a distribution centre in the UK, which made it a direct supplier to DIY retailers and builders' merchants. Data were collected primarily through open‐ended, face‐to‐face interviews.

Findings

The study found that the most important factors driving the manufacturer's vertical integration of distribution were the demands of large retail chains and the manufacturer's decisions to focus on developing its positioning strategy in the supply chain. Vertical integration has transformed the manufacturer into a supplier to large timber products resellers, offering the firm a greater potential to provide integrated solutions and, therefore, become a strategic partner to its customers.

Originality/value

This empirical study examined a building material distribution channel, a subject that has rarely been studied. Study results add empirical evidence to explanations and impacts of vertical integration, especially the integration of customer interface.

Details

Supply Chain Management: An International Journal, vol. 17 no. 2
Type: Research Article
ISSN: 1359-8546

Keywords

To view the access options for this content please click here
Article
Publication date: 29 July 2014

Daniel Nordigården, Jakob Rehme, Staffan Brege, Daniel Chicksand and Helen Walker

The purpose of this paper is to investigate an underexplored aspect of outsourcing involving a mixed strategy in which parallel production is continued in-house at the…

Abstract

Purpose

The purpose of this paper is to investigate an underexplored aspect of outsourcing involving a mixed strategy in which parallel production is continued in-house at the same time as outsourcing occurs.

Design/methodology/approach

The study applied a multiple case study approach and drew on qualitative data collected through in-depth interviews with wood product manufacturing companies.

Findings

The paper posits that there should be a variety of mixed strategies between the two governance forms of “make” or “buy.” In order to address how companies should consider the extent to which they outsource, the analysis was structured around two ends of a continuum: in-house dominance or outsourcing dominance. With an in-house-dominant strategy, outsourcing complements an organization's own production to optimize capacity utilization and outsource less cost-efficient production, or is used as a tool to learn how to outsource. With an outsourcing-dominant strategy, in-house production helps maintain complementary competencies and avoids lock-in risk.

Research limitations/implications

This paper takes initial steps toward an exploration of different mixed strategies. Additional research is required to understand the costs of different mixed strategies compared with insourcing and outsourcing, and to study parallel production from a supplier viewpoint.

Practical implications

This paper suggests that managers should think twice before rushing to a “me too” outsourcing strategy in which in-house capacities are completely closed. It is important to take a dynamic view of outsourcing that maintains a mixed strategy as an option, particularly in situations that involve an underdeveloped supplier market and/or as a way to develop resources over the long term.

Originality/value

The concept of combining both “make” and “buy” is not new. However, little if any research has focussed explicitly on exploring the variety of different types of mixed strategies that exist on the continuum between insourcing and outsourcing.

Details

International Journal of Operations & Production Management, vol. 34 no. 8
Type: Research Article
ISSN: 0144-3577

Keywords

To view the access options for this content please click here
Article
Publication date: 21 June 2011

Fredrik Nordin, Daniel Kindström, Christian Kowalkowski and Jakob Rehme

The purpose of this paper is to examine the risks for manufacturing companies of extending their traditional goods offerings by the addition of different kinds of services.

Abstract

Purpose

The purpose of this paper is to examine the risks for manufacturing companies of extending their traditional goods offerings by the addition of different kinds of services.

Design/methodology/approach

The study develops a conceptual framework of nine propositions (and corresponding diagrammatic representations) of the relationships between: three kinds of risk (operational, strategic, and financial); and three strategies for the provision of added service (customisation, bundling, and broadening the range of offerings). This conceptual framework is examined empirically by qualitative analysis of data gathered in a three‐year longitudinal study of managerial representatives from nine multinational manufacturing firms engaged in the addition of services to their traditional goods offerings.

Findings

It was found that eight of the nine propositions are fully supported, and one receives equivocal support. In addition, several contextual factors are identified as moderating influences on the relationships between the three categories of service offering and the three classes of risk.

Research limitations/implications

The study provides an original conceptual framework and nine research propositions that represent a useful starting point for the development of a formal theory of the risks of providing services.

Practical implications

The conceptual framework provides guidance for managers' assessments of the risks accompanying the infusion of added services to the traditional goods offerings of manufacturing companies.

Originality/value

The paper provides a novel conceptualisation of service innovation and attendant risk.

Details

Journal of Service Management, vol. 22 no. 3
Type: Research Article
ISSN: 1757-5818

Keywords

To view the access options for this content please click here
Article
Publication date: 2 November 2015

Jakob Rehme, Daniel Nordigården and Daniel Chicksand

This paper aims to investigate the manner in which technological innovation in the European electrical-grid sector has developed by focusing, in particular, on the effect…

Abstract

Purpose

This paper aims to investigate the manner in which technological innovation in the European electrical-grid sector has developed by focusing, in particular, on the effect of public policy on innovation. To achieve this aim, this paper highlights how technological innovation and development progressed from the 1960s to the 1980s, and contrasts this period with the deregulated/privatization environment.

Design/methodology/approach

The paper is based on a series of in-depth multiple company case studies of grid companies, some of their suppliers and other actors in their broader business network. Empirical data were collected through 55 interviews.

Findings

The authors find that a phase of mutual collaboration was encouraged in the first period, which led to strong technological innovation with a focus on product quality and the development of functionality. Buyers played a pivotal role in the development of products and posed technical requirements. In contrast, the current role of the buyer has transformed principally into one of evaluating competing bids for specific projects. Today, buyers face increasing pressure to substantially lower CO2 emissions and transform the energy grid system. These goals are difficult to achieve without a new way of thinking about innovation.

Research limitations/implications

Models to achieve innovation must not only focus on individual research projects; instead, the innovation should be factored into normal business dealings in the supply chain.

Practical implications

We propose that policymakers and regulators need to: accommodate for innovation and address the collaborative elements of innovation when developing policies and regulations. Furthermore, regulators have the option of either developing a strategic vision for the electrical-grid network or incorporating sustainability into the evaluation of electrical grids and, thus, consumers’ willingness to pay.

Originality/value

This paper makes a distinctive contribution in the area of innovation for electrical grids. Our paper shows how innovation and the development of new technology for electrical grids changed over time. Furthermore, this paper describes the energy sector in terms of a business network comprising the different actors involved in innovation and development and, thus, their role in the energy supply chain.

Details

International Journal of Energy Sector Management, vol. 9 no. 4
Type: Research Article
ISSN: 1750-6220

Keywords

1 – 8 of 8