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1 – 10 of over 6000Heba F. Zaher and Gilberto Marquez-Illescas
This paper aims to examine the existing literature on firms’ power through the lens of the supply chain and highlights some gaps that could be covered by future research.
Abstract
Purpose
This paper aims to examine the existing literature on firms’ power through the lens of the supply chain and highlights some gaps that could be covered by future research.
Design/methodology/approach
This study uses a systematic framework-based review combining the insights of the antecedents, decisions and outcomes (ADO) and theories, contexts and methods (TCM) frameworks. The review was carried out using a sample of 108 articles published between 1984 and 2022 in 25 prestigious journals.
Findings
The ADO framework maps out the state of the art of the antecedents of power (i.e. sources and types of firm power), the decision to use power and the effect that exercising power over other firms may have on firm performance and the quality of inter-firm relationships. In addition, this framework highlights factors that mediate or moderate the decision to exercise power and the factors that mediate or moderate the outcomes of exercising power or power asymmetry. The TCM framework provides insights into the theories, contexts (i.e. countries, industries, level of analysis and sources of data) and methods used by the existing literature. The content analysis using the aforementioned frameworks provides the basis to elaborate propositions for future research on power in the supply chain from the perspective of gender differences.
Research limitations/implications
This systematic literature review offers a comprehensive guide for researchers to understand the antecedents, decisions and outcomes of firm power in the supply chain, as well as the TCM used in the literature. The content analysis using frameworks provides a road map to investigate the proposed factors that might moderate the decision to exercise power and the outcome of exercising power or power asymmetry from the perspective of gender differences. In addition, based on content analysis, the authors make propositions about TCM that could be applied in future research.
Practical implications
From a practical perspective, this systematic literature review may help managers to better understand the sources and consequences of their firm’s power. This would allow managers to make better decisions when negotiating with their supply chain parties, which could potentially lead to better performance for their firms and the whole supply chain.
Originality/value
To the best of the authors’ knowledge, this study is the first to conduct a comprehensive systematic literature review of the different dimensions of firms’ power in the supply chain.
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Sanaz Chamanara, Benjamin P. Goldstein and Joshua P. Newell
Supply chain governance constitutes the rules, structures and institutions that guide supply chains toward various objectives, including environmental sustainability. Previous…
Abstract
Purpose
Supply chain governance constitutes the rules, structures and institutions that guide supply chains toward various objectives, including environmental sustainability. Previous studies have provided insight into the relationship between governance and sustainability but have overlooked two crucial dimensions: power dynamics and the influence of outside actors. This paper aims to address these two gaps by measuring differential power (i.e. power asymmetries) among actors across the supply chain, including external actors.
Design/methodology/approach
This paper quantifies power dynamics across the entire chain through a structured survey in which supply chain participants rank their peer’s ability to affect environmental and social outcomes. This paper tests this approach by surveying 200 industry professionals (e.g. feedlot owners, retailers) and external actors (e.g. NGOs) in the US beef sector.
Findings
Respondents ranked the most powerful actors as follows: feedlot owners; processing plant owners; and regulatory agencies. Results also revealed that trade associations, retailers and cow–calf producers and ranchers perceive a sense of powerlessness. This study reveals multiple power nodes and confirms a shift in the power structure depending on which indicator respondents considered (e.g. environmental impacts vs employee safety). This study concludes that the buyer–producer dichotomy often used to assess supply chain governance fails to capture the complex dynamics among actors within supply chains.
Originality/value
This study demonstrates a novel approach to measure perceptions of power in supply chains. This method enables researchers to map networks of power across entire supply chains, including internal and external actors, to advance understanding of supply chain governance dynamics. Previous studies have misidentified who governs environmental outcomes in supply chains, and NGOs have overestimated the power of consumers and retailers to influence producers.
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Hakan Karaosman, Donna Marshall and Verónica H. Villena
The purpose of this paper is to understand how supply chain actors in an Italian cashmere supply chain reacted to dependence and power use during the Covid-19 crisis and how this…
Abstract
Purpose
The purpose of this paper is to understand how supply chain actors in an Italian cashmere supply chain reacted to dependence and power use during the Covid-19 crisis and how this affected their perceptions of justice.
Design/methodology/approach
The research took a case study approach exploring issues of dependence, power and justice in a multi-tier luxury cashmere supply chain.
Findings
The authors found two types of dependence: Craftmanship-induced buyer dependence and Market-position-induced supplier dependence. The authors also identified four key archetypes emerging from the dynamics of dependence, power and justice during Covid-19. In the repressive archetype, buying firms perceive their suppliers as dependent and use mediated power through coercive tactics, leading the suppliers to perceive interactional, procedural and distributive injustice and use reciprocal coercive tactics against the buying firms in the form of coopetition. In the restrictive archetype, buying firms that are aware of their dependence on their suppliers use mediated power through contracts, with suppliers perceiving distributive injustice and developing ways to circumvent the brands. In the relational archetype, the awareness of craftmanship-induced buyer dependence leads buying firms to use non-mediated power through collaboration, but suppliers still do not perceive distributive justice, as there is no business security or future orders. In the resilient archetype, buying firms are aware of their own craftmanship-induced dependence and combine mediated and non-mediated power by giving the suppliers sustainable orders, which leads suppliers to perceive each justice type positively.
Originality/value
This paper shows how the actors in a specific supply chain react to and cope with one of the worst health crises in living memory, thereby providing advice for supply chain management in future crises.
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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.
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Kai Li, Lulu Xia, Nenggui Zhao and Tao Zhou
The purpose of this paper is to compare the pricing decisions and earning potential of the software supplier and the smart device manufacturer in different software promotion…
Abstract
Purpose
The purpose of this paper is to compare the pricing decisions and earning potential of the software supplier and the smart device manufacturer in different software promotion strategies.
Design/methodology/approach
Based on game theory, the authors formulate two promotion models, that is, the supplier implements software promotion activities individually (SP model) or outsources the promotion activity to the manufacturer under profit-sharing contract (MP model) when taking different channel power structures into consideration. Besides, in order to test the robustness of the conclusions, the authors also extend the basic model to the following situations: (1) the customers have different price elasticity toward service fee and product price; (2) the revenue sharing contract is employed by the supply chain members; and (3) the manufacturer's product promotion practice is taken into consideration.
Findings
The optimal service fee (product price) of the supplier (manufacturer) under SP model is always lower (higher) than that under MP model. Surprisingly, if the supplier is the channel leader and the profit sharing ratio exceeds certain threshold, the manufacturer's profit decreases in profit sharing ratio, which remains robust in three extension models. Moreover, the supply chain's profit in supplier-led game is always lower than that in Nash game irrespective of the promotion strategy in profit sharing context. When revenue sharing contract is adopted, the result holds only when the revenue sharing ratio is relatively low.
Originality/value
The authors originally explore two promotion strategies of the software supplier when taking the channel power structures into considerations, which has not been explored in the literature to the best of the authors' knowledge.
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Pamela J. Zelbst, Liu Yang, Kenneth W. Green and Victor E. Sower
The purpose of this paper is to assess the combined impact of the Industry 4.0 blockchain and industrial internet of things technology (IIoT) technologies on the development of…
Abstract
Purpose
The purpose of this paper is to assess the combined impact of the Industry 4.0 blockchain and industrial internet of things technology (IIoT) technologies on the development of supply chain linkages associated with power, benefits and risk reduction and the ultimate impact of the linkages on supply chain performance.
Design/methodology/approach
A structural model with blockchain and IIoT as antecedents to the supply chain power, benefits and risk reduction linkages and the linkages as antecedent to supply chain performance is theorized. Data collected from 303 US manufacturing managers are analyzed using a covariance-based structural equation modeling (CB/SEM) methodology.
Findings
The CB/SEM results indicate that blockchain technology does not directly impact implementation of the linkages. Rather, implementation of blockchain technology supports implementation of IIoT technology, which strengthens supply chain linkages, thereby improving supply chain performance.
Research limitations/implications
To the best of the authors’ knowledge, this study is one of the first to provide empirical evidence that Industry 4.0 technologies such as blockchain and IIoT strengthen linkages among supply chain partners related to power, benefits and risk reduction and that those stronger linkages lead to improved supply chain performance. It should be noted that this study is based on data from managers representing only one sector (manufacturing) and one country (USA). Replication based on data from other sectors and countries is needed to support generalization of the results.
Practical implications
Practitioners are provided with empirical evidence that the implementation of Industry 4.0 technologies such as blockchain and IIoT support supply chain management. These technologies facilitate data and information sharing among supply chain partners, enabling the integration and coordination of business processes throughout the entire supply chain.
Social implications
The ultimate customers of supply chains benefit when supply chain partners work together efficiently and effectively. The implementation of blockchain and IIoT digital technologies lead to improve linkages among supply chain partners driving improvements in both efficiency and effectiveness, thus benefiting customers and society.
Originality/value
Industry 4.0 technologies are relatively new with the promise of improved supply chain performance. The efficacy of Industry 4.0 technologies as mechanisms to enhance information sharing is demonstrated based on the results of this study.
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Amrou Awaysheh, Robert D. Klassen, Asad Shafiq and P. Fraser Johnson
Globalization and increased outsourcing have contributed to increased supply chain complexity, exposing firms to greater vulnerability in the areas of product safety and supply…
Abstract
Purpose
Globalization and increased outsourcing have contributed to increased supply chain complexity, exposing firms to greater vulnerability in the areas of product safety and supply chain security. Meanwhile, stakeholders pressure firms to ensure that their products are safe, and their supply chains are secure. Drawing from stakeholder theory, this paper aims to explore how the supply chain characteristics of distance and power affect the adoption of consumer protection (CP) practices, which ensure product safety and supply chain security.
Design/methodology/approach
Using primary survey data from a sample of Canadian manufacturing firms, this research examines the relationships among supply chain characteristics, adoption of CP practices and firm performance.
Findings
Analysis supported the use of two practices related to product safety (consumer education and product design) and three practices for supply chain security (packaging, tracking and authenticity). Greater cultural distance between the focal firm and its suppliers was positively associated with investments in safer design practices, while increased geographical distance between the focal firm and the customer was significantly related to increased consumer education. Moreover, as power of a focal firm relative to its suppliers increased, so too did investments in supply chain security. Finally, CP practices were related to improved operational performance along multiple dimensions.
Originality/value
This research focuses on the critical role of two key stakeholder groups in improving product safety and supply chain security: suppliers and customers. The authors add to the theoretical discussion of product safety and supply chain security by identifying critical differences between suppliers and customers for the focal firm. Second, the research informs the managerial community of the potential benefits of investments in CP practices.
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Ely Laureano Paiva, Rafael Alcadipani, Kenyth Alves De Freitas, Larissa Alves Sincorá and Arun Abraham Elias
The purpose of this paper is to investigate how three core elements of critical management studies (CMSs), “de-naturalisation”, “reflexivity” and “(non)-performative intent”, can…
Abstract
Purpose
The purpose of this paper is to investigate how three core elements of critical management studies (CMSs), “de-naturalisation”, “reflexivity” and “(non)-performative intent”, can help expand the current debate in the supply chain management (SCM) field.
Design/methodology/approach
The authors used a systematic literature review to select 103 articles published in 12 high-ranking journals in the SCM field based on the Academic Journal Guide of the Chartered Association of Business Schools.
Findings
The findings of this study suggest that SCM studies can be narrowed down into four major CMSs themes: “power”, “ethics and environmental issues”, “diversity” and “working conditions”, but even these themes are still under-discussed and undertheorized in SCM. The literature the authors reviewed is more concerned with explaining these phenomena than questioning them and proposing new agendas. This paper, therefore, will discuss how these three core elements of CMS can help transform the “hidden” issues of SCM, which it will do by illustrating it in the context of buyer–supplier relationships and lean manufacturing.
Practical implications
This research will encourage SCM scholars who are interested in conducting more critical studies and teaching the harmful effects of global supply chains.
Originality/value
This paper highlights that a combination of SCM and CMS approaches is important when we decide to adopt a more critical “constructive” view of supply chain challenges and engage practical and critical views, respectively, to generate knowledge that not only increases (corporate) performance but also highlights social needs and values.
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Jason X. Wang, Tsan-Ming Choi, Lincoln C. Wood, Karin Olesen and Torsten Reiners
Sustainable supply chain management (SSCM), driven by the downstream buyers' power, transfers sustainability responsibilities to the upstream supplier. In contrast to the…
Abstract
Purpose
Sustainable supply chain management (SSCM), driven by the downstream buyers' power, transfers sustainability responsibilities to the upstream supplier. In contrast to the heavily-focused buyers' perspective in the literature, the authors investigate how this buyer-driven SSCM influences suppliers' performance, using the measure of stock market reaction.
Design/methodology/approach
Grounded by the resource dependence theory (RDT), the authors empirically analyze the power effect on suppliers. Event study methodology and regression analysis are used, based on a sample of 1977 paired supplier observations from 1990 to 2016.
Findings
The result suggests that although a negative stock market reaction for suppliers in SSCM exists, the effect is less negative at a high level of buyer and supplier dependence. For the investigation of the “consolidated SSCM initiative,” where buyers acquire exogenous power by collaboratively managing SSCM with their peers, the authors uncover that the negative impact of this consolidated SSCM initiative can be mitigated by the high interdependence that generates relational norms in the dyads.
Research limitations/implications
The authors focus on dyadic relationships. Future research can use the study's findings to study the SSCM diffusion to lower-tier suppliers.
Practical implications
This paper has good managerial implications for both suppliers and buyers. The authors propose dependence-based strategies for supplier managers to reduce uncertainty in SSCM. Moreover, buyer managers can use the study's findings to strengthen suppliers' commitment.
Originality/value
The novelty of examining the suppliers' perspective contributes to exploring the supply chain impact of SSCM. The authors extend RDT and show that high dependence is not necessarily detrimental to suppliers in this buyer-driven SSCM context. The interesting finding of interdependence in the context of the consolidated SSCM initiative brings new insights that relational norms constrain the leverage of power in the dyads and are beneficial to the power-disadvantageous suppliers.
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Ranran Zhang, Jinjin Liu and Yu Qian
This research aims to examine which cooperative contract (wholesale-price contract or cost-sharing contract) can more effectively upgrade the green degree of product and promote…
Abstract
Purpose
This research aims to examine which cooperative contract (wholesale-price contract or cost-sharing contract) can more effectively upgrade the green degree of product and promote demand when considering consumer reference price effect under different power structures.
Design/methodology/approach
This research investigates a dyadic green supply chain composed of one manufacturer and one retailer. Four Stackelberg game models with a cost-sharing contract or a wholesale-price contract are built in retailer-led and manufacturer-led scenarios, respectively. Using backward induction, the optimal green decision under each model is obtained. In addition, the optimal cooperative contract is proposed by comparing these four models.
Findings
It is found that under consumer reference price effect, a cost-sharing contract outperforms a wholesale-price contract in upgrading product greenness and promoting demand. Under any single contract, the retailer-led situation is more conducive to improving product greenness than the manufacturer-led situation. Moreover, consumer reference price effect would reduce the sharing ratio of a cost-sharing contract when the manufacturer dominates, but it could mitigate the problem of double marginalization by reducing wholesale and retail prices under both types of contracts, which would enhance consumer surplus.
Originality/value
It is a new attempt to incorporate consumer reference price effect and power structure into a green supply chain framework and proposes a novel demand function that simultaneously emphasizes consumer reference price effect, consumer environmental awareness and product green attribute. In addition, it provides managerial insights for business managers to choose green cooperative contracts with consumer reference price effect under different power structures.
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