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1 – 10 of over 1000Zhengyang Wu, Feng Yang and Fangqing Wei
Interorganizational power dependence has become an increasingly important factor for small and medium-sized enterprises (SMEs) to improve product innovation. This paper examines…
Abstract
Purpose
Interorganizational power dependence has become an increasingly important factor for small and medium-sized enterprises (SMEs) to improve product innovation. This paper examines the role of power dependence in SMEs' product innovation trade-offs between exploration and exploitation. The article further studies the mediating effect of supply chain adaptability and the moderating effect of knowledge acquisition on the relationship between power dependence and product innovation.
Design/methodology/approach
The study proposes a model to verify the impact of power dependence on SMEs' product innovation trade-offs based on social network theory. Two conceptually independent constructs, “availability of alternatives (ALTRN)” and “restraint in the use of power (RSPTW),” are used to evaluate the power dependence. The model also analyzed how these effects are mediated by supply chain adaptability and moderated by knowledge acquisition. The authors test these relationships using data collected from 224 SMEs in China.
Findings
The empirical analysis shows that ALTRN has a more substantial effect on exploration for product innovation, while RSTPW has a more significant impact on exploitation for product innovation. Moreover, empirical data indicate a partial mediating effect by supply chain adaptability between power dependence and product innovation of SMEs. The results also show that knowledge acquisition positively moderates the relationship between ALTRN/RSTPW, supply chain adaptability and product innovation.
Originality/value
Overall, the findings of the study advance the understanding of the roles of power dependence in product innovation for SMEs. In addition, the research also uncovers the impact mechanisms of existing theoretical frameworks and extends the boundaries of the theory.
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Katsuyoshi Takashima and Changju Kim
The purpose of this paper is to investigate retailers’ power-dependence management through the lens of supply chain diversification, and explore how it is linked to their logistic…
Abstract
Purpose
The purpose of this paper is to investigate retailers’ power-dependence management through the lens of supply chain diversification, and explore how it is linked to their logistic arrangements in managing suppliers and their retail performance.
Design/methodology/approach
Hypotheses are tested using a structural equation modelling based on survey data from 186 merchandising division heads at Japanese retail companies.
Findings
The results reveal that quick-response inventory replenishment is positively related to retailers’ use of power-dependence management. This management practice leads to enhanced retail competitiveness and, thus, higher sales growth in supply chain relationships.
Originality/value
This study contributes to understanding how retailers’ logistic arrangements work by modelling power relations within supply chains, drawing on power-dependence theory. The authors propose an alternative view of logistics systems to that of the widely adopted transaction cost theory. The authors find that supplier investments in quick-response inventory management may not be a relationship-specific asset.
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This paper tries to provide a theoretical explanation from case studies in which I analyzed the impact of firms’ behavior on negotiation processes. Particularly, it concentrates…
Abstract
This paper tries to provide a theoretical explanation from case studies in which I analyzed the impact of firms’ behavior on negotiation processes. Particularly, it concentrates on the impact of the power‐dependence relationship on negotiation behavior choice in joint ventures and (nonhostile) acquisitions. Previous studies have found that negotiation behavior is a key factor in determining the results of negotiations and the subsequent implementation and performance of the strategy. Drawing on interview material from six cases, three acquisition negotiations and three joint venture negotiations, the empirical analysis allowed me to consider that the equilibrium situation of power‐dependence is more associated with integrative negotiation behaviors adopted by all the parties. This situation facilitates win/win agreements (negotiation success). However, the value‐creation basis appears as a key factor to be analyzed because its influence on (1) the perception of dependence and (2) the possible use of a power disequilibrium situation. This factor seems to be especially important in acquisition negotiations. Based upon my analysis, I recommend some issues to be studied and contrasted empirically in future research.
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Chanchai Tangpong, Michael D. Michalisin, Rodney D Traub and Arlyn J. Melcher
The purpose of this study is to review the existing typologies of buyer-supplier relationships (BSRs) in the literature, to critically assess their dimensions and underlying…
Abstract
Purpose
The purpose of this study is to review the existing typologies of buyer-supplier relationships (BSRs) in the literature, to critically assess their dimensions and underlying assumptions, and to propose a more complete BSR typology and future directions for BSR typology research.
Design/methodology/approach
This study takes a conceptual approach in highlighting the limitations of existing BSR typologies and synthesizing their key typology-defining variables when proposing an alternative BSR typology.
Findings
The proposed BSR typology is based on alternative behavioral assumptions: bounded rationality and choice-determinism, and uses relationalism, supplier dependence and buyer dependence as the typology-defining variables. This BSR typology captures four prominent BSR types in the extant literature (i.e. market/discrete relationship, captive-buyer/supplier-dominant relationship, captive-supplier/buyer-dominant relationship and strategic/bilateral partnership) and four new BSR types developed in this study (i.e. supplier-led collaboration, buyer-led collaboration, competitive/win–lose partnership, and free will/voluntary collaboration).
Research limitations/implications
The performance implications of the new BSR types have yet to be empirically tested; however, empirical approaches for future research are discussed.
Originality/value
As BSR typology research has been conducted over the years, a thorough review and systematic assessment of the extant research in terms of fundamental assumptions, typology-defining variables, overall progress and limitations becomes an important reflective task in guiding future research efforts toward the collective advancement in this line of inquiry. Departing from the existing literature, this study also uses more realistic BSR assumptions and a more complete set of typology-defining variables in developing an alternative BSR typology, arguably more complete and more theoretically sound than the previous BSR typologies in the literature.
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Shumank Deep, Thayaparan Gajendran, Marcus Jefferies, Venkata Suresh Uggina and Sanjay Patil
Research on strategic procurement was mostly focussed on the clients' and main contractors' perspectives, while limited work had been done from a subcontractor's perspective. The…
Abstract
Purpose
Research on strategic procurement was mostly focussed on the clients' and main contractors' perspectives, while limited work had been done from a subcontractor's perspective. The paper hypothesises that “strategic capability” influences the latent constructs of power, dependence and collaboration in the main contractor–subcontractor relationship. Therefore, the purpose of this study is to investigate the influence of a subcontractor's strategic capabilities on power, dependence and collaboration.
Design/methodology/approach
A survey questionnaire was developed and distributed amongst the subcontractors in Australia, and 212 complete responses were received. Then second order confirmatory factor analysis and partial least square structure equation modelling (PLS-SEM) analysis were performed to test the hypothesised relationships.
Findings
The findings support “strategic capabilities” as a construct expressive of a subcontractor's unique market position and good business reputation. The findings also suggest that strategically capable subcontractors enhance their potential for forming partnerships with main contractors through dependence (StratC. → Dep., β = 0.84; Effect Size (ES) = 0.713; p < 0.01), collaboration (StratC. → Collab., β = 0.84; ES = 0.697; p < 0.01) and bargaining power (StratC. → Pow., β = 0.83; ES = 0.672; p < 0.01).
Originality/value
The study is one of its kind to explore the impact of a subcontractor's strategic capability on their bargaining power, dependability and ability to form collaborations. Furthermore, results indicate that the “strategic capabilities” of subcontractors can strongly influence their ability to create “dependence”, foster “collaboration” and exert “power” over a main contractor. The findings can help improve the strategic procurement decision-making processes of both subcontractors and main contractors to build better business relationships.
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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…
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.
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Additive manufacturing, that is, layer-based manufacturing technologies, is thought to change supply chain operations from global to local, while also affecting design processes…
Abstract
Purpose
Additive manufacturing, that is, layer-based manufacturing technologies, is thought to change supply chain operations from global to local, while also affecting design processes and product structures. As this transformation happens, a power struggle among various actors relating themselves to additive manufacturing has emerged. The purpose of this paper is to discuss and explain the development of additive manufacturing from a power dependence point of view.
Design/methodology/approach
The paper is based on data collected from a number of seminars hosting a total of 620 industry experts representing 102 companies in the area, and reflecting every step of the supply chain.
Findings
The paper points out how measures to deal and create power imbalances occur also related to indirect parties, and how the disruptive character of the supply chain leads to exercised power.
Originality/value
The power struggle provides new insights into how an emerging technology is realised and the effect of protectionism on such attempts. Specifically related to additive manufacturing, the paper illustrates the business side from various actors’ point of view, which adds to technological perspectives on additive manufacturing, as well as studies viewing the supply chain from a bird’s-eye perspective.
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Hung Vu Nguyen, Hieu Thanh Nguyen, Seyda Deligonul and S. Tamer Cavusgil
The purpose of this paper is to develop a model to build visibility for mitigating supplier risk. The model has shown that visibility can be an important information-based…
Abstract
Purpose
The purpose of this paper is to develop a model to build visibility for mitigating supplier risk. The model has shown that visibility can be an important information-based capability for a buying firm to mitigate supplier risk. Such an importance, however, may not hold in all settings but is contingent on the power-dependence structure between a buyer and its supplier. In particular, under high dependence of buyer on supplier, visibility is more needed to mitigate risk. In reverse, the importance of visibility is reduced if buyer is not dependent on its supplier. Two sides of antecedents to visibility are also posited and tested.
Design/methodology/approach
Seafood processing firms in Vietnam are surveyed to test the model. Reliabilities and validities of measures are tested before the structured analysis. To test the model, partial least square (variance-based structural equation modeling) with 500 boostrapping samples is used.
Findings
For the samples of seafood processing firms in Vietnam, visibility into their suppliers are found to be the key in mitigating supplier risks when the firms depend highly on their suppliers. In the reverse cases, the importance of visibility is reduced. Visibility is also found to be anteceded by information technology integration between buying firms and their suppliers.
Originality/value
The model helps develop and empirically test an important approach in proactively mitigating supplier risk. That is to develop buying firm’s visibility into a key supplier. Further, the model is developed to test the ways that visibility can be built. Those include both soft and hard sides of facilitating information exchange from supplier to its buyer. Thus the model is contributed to both the literature of supplier risk and power-dependence.
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In this study negotiated exchange under the 1-exchange rule is considered in the whole population of 142,660 exchange networks up to size 9. A review shows that 51 of these…
Abstract
In this study negotiated exchange under the 1-exchange rule is considered in the whole population of 142,660 exchange networks up to size 9. A review shows that 51 of these networks have been studied in the literature. Predictions for the whole population of networks are derived by parsimonious versions of power-dependence and exchange-resistance theory. All but 301 networks are classified similarly as equal, weak, or strong power networks by the power-dependence and exchange-resistance theory. Only 4% of the networks is classified as a strong power network, as opposed to the 43% of the networks studied in the literature.
Esi Abbam Elliot, Benjamin Ngugi and Charles A. Malgwi
The purpose of this paper is to investigate how technological innovations mitigate inefficiencies in marketing channels in the context of microfinance markets in emerging markets…
Abstract
Purpose
The purpose of this paper is to investigate how technological innovations mitigate inefficiencies in marketing channels in the context of microfinance markets in emerging markets. By examining in detail, specific market inefficiencies that inhibit the efforts of micro and small enterprises to access microfinance in emerging markets and the use of technology to alleviate these failures, the authors bridge the literatures on marketing channel inefficiencies and technological innovation relevant to emerging markets.
Design/methodology/approach
The authors use a qualitative method in the form of phenomenological interviews and participant observation in Ghana, West Africa, to investigate the research question.
Findings
The three themes that arise from the findings are: channel structure and structure selection; power-dependence relationships and relational outcomes; and conflict mechanisms and control behaviors. Customerization of technology is observed to mitigate inefficiencies in mobile marketing channels by facilitating data sharing, reminders, peer referencing and other marketing strategies of awareness, affordability, access and scalability.
Research limitations/implications
The limitations of this study are the fact that the context of the study is only one emerging market country – Ghana. This market is however experiencing dynamic changes in mobile technology innovations that is revolutionizing the microfinance industry.
Practical implications
Mobile money innovations have advanced the scope of marketing channels to the point that an updated perspective of the role of mobile technology in mitigating marketing channels inefficiency is both appropriate and timely.
Originality/value
The authors make the contribution of customerization as an aspect of mobile technology that is a key enabler in microfinance marketing channels, serving to mitigate microfinance market inefficiencies. Additionally, the study augments theories on the marketing channels framework by contributing perspectives on mobile technology.
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