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Article
Publication date: 1 January 1980

K.J. Blois

Until relatively recently the majority of studies of organisations from a variety of different academic disciplines viewed the organisation as an isolated individual unit and took…

Abstract

Until relatively recently the majority of studies of organisations from a variety of different academic disciplines viewed the organisation as an isolated individual unit and took little account of its interaction with the “rest of the world”. More recently, interest in understanding how organisations interact with their environment has increased and a realisation has grown that the boundary between an organisation and its environment is often very difficult to define, even to the extent that there is “a doubt concerning the relevance of the organisation as an analytical unit” [19, p. 11]. This paper describes one form of inter‐organisational relationship which appears to be growing in importance and which shows that legally defined organisational boundaries do not always bear much relation to the existing boundaries.

Details

Management Decision, vol. 18 no. 1
Type: Research Article
ISSN: 0025-1747

Article
Publication date: 30 March 2020

Valeria Borsellino, Francesca Varia, Cinzia Zinnanti and Emanuele Schimmenti

The purpose of this paper is to verify whether, besides the traditional organisational models mainly implemented by wine-making cooperatives, more modern and hybrid organisational…

Abstract

Purpose

The purpose of this paper is to verify whether, besides the traditional organisational models mainly implemented by wine-making cooperatives, more modern and hybrid organisational forms can be profitably applied within an increasingly competitive wine market.

Design/methodology/approach

The study outlined in this paper deployed a mixed method. Specifically, an archived analysis, a survey and a descriptive case study (including visits, interviews and documentary analysis) were the methodological techniques used in this study, which were “in series but integrated” between themselves. In this paper, the landscape of Sicilian wine cooperatives is described by collating and processing different types of statistical sources, which have been integrated by direct surveys undertaken in 2017. Thereafter, the study focussed on a wine cooperative with a specific business model and a strategic edge by analysing its strategic choices and main structural and governance characteristics. Within this case study, a financial ratio analysis, which was based on 2011-2017 financial statements, was conducted to analyse the profitability, financial balance, capital structure and debt relationships of the wine cooperative.

Findings

The Sicilian wine cooperative system is still predominantly characterised by partial and vertical integration, implemented by cooperatives which elect to sell mainly bulk wine to wine merchants. In such a context, there is scope for other degrees of integration and strategic inter-firm alliances; the latter includes “vertical quasi-integration”. The study demonstrated how the wine cooperative under investigation is overcoming the structural problems of the regional wine sector and why it is retaining such a strategic alliance with one of the most important Italian wine conglomerates. Indeed, it has acquired greater strength and reliability since its collaboration with the aforementioned wine company. Thus, total revenue and the company’s market share of packaged wine have increased. However, there are still margins for improving sales’ profitability.

Research limitations/implications

This study has territorial limitations but Sicilian wine cooperatives generally play an important role in the regional, Italian and European wine industries. As such, this research should be considered as an exploratory study, deserving further investigation into different strategic choices within the wine cooperative system by performing cross-case comparisons. Results may also be useful in orienting cooperative strategies in Sicily (or further afield) to small-to-medium wine cooperatives, often lacking specific abilities relating to the distribution, marketing and selling of their wine. Public agricultural policies may also be enlightened by these research pathways.

Originality/value

The authors contend that their study provides hitherto missing information relating to inter-firm strategic alliances, which wine cooperatives might implement to enhance their competitiveness and survive in the long-run.

Details

International Journal of Wine Business Research, vol. 32 no. 3
Type: Research Article
ISSN: 1751-1062

Keywords

Article
Publication date: 4 January 2013

Bradley Bowden and Andrea Insch

The development of the Pacific seaborne coal trade since 1960 has been central to East Asia's economic expansion. In exploring the growth of this trade this paper seeks to…

Abstract

Purpose

The development of the Pacific seaborne coal trade since 1960 has been central to East Asia's economic expansion. In exploring the growth of this trade this paper seeks to understand why Japanese steel mills (JSMs), the world's largest coal importers, used few of the strategies that one would expect in the light of resource dependency theory, relying instead on market exchanges.

Design/methodology/approach

This study relies primarily on archival sources, held by the Departments of Mines and Natural Resources in Victoria (British Columbia) and Brisbane (Australia) to reconstruct changing patterns of supply and price in the Pacific coal trade.

Findings

It is found that by relying on a strategy that amounted to “vertical quasi‐integration” JSMs were able to use their combined power to dictate the terms of market exchanges with buyers during the 1980 and 1990s. By 2000, however, this strategy had become counter‐productive, as low prices fostered the emergence of a powerful Australian‐based selling oligopoly.

Research limitations/implications

The study contributes towards the growing study of transnational events, experiences and institutions in management history, filling a noticeable gap in resource dependency theory, which has not previously explored the long‐term consequences of strategies aimed at reducing dependency.

Practical implications

East Asia has become the major engine for world economic growth and manufacturing output since the 1970s, and this study explores for the first time the genesis and development of the Pacific coal trade that has underpinned this growth.

Social implications

The study demonstrates the long‐term adverse consequences of attempts to manipulate buyer‐supplier relationships to minimise cost inputs. By creating a low‐cost environment, coal buyers ensured the emergence of a sellers' cartel that eventually forced up world coal prices to the detriment of consumers.

Originality/value

No previous study has attempted a study of a major international commodity trade over such an extensive timeframe. It is likely that similar attempts to manipulate supply and price in other commodity trades will, over time, result in similar outcomes.

Details

Journal of Management History, vol. 19 no. 1
Type: Research Article
ISSN: 1751-1348

Keywords

Article
Publication date: 13 April 2015

Morten H. Abrahamsen and Håkan Håkansson

The purpose of this paper is to study the phenomenon of customer-supplier interaction and integration from a resource perspective. In economic terms, a fish may be seen as a more…

1250

Abstract

Purpose

The purpose of this paper is to study the phenomenon of customer-supplier interaction and integration from a resource perspective. In economic terms, a fish may be seen as a more or less homogeneous resource. If the herring is seen as a homogeneous resource, a market should be the best way to handle the selling and buying. However, if the herring is seen as a heterogeneous resource, a more extensive type of interaction is needed. One interesting aspect with herring is that different business actors apparently see this resource in different ways. Thus, the authors will have a mixed situation, creating possible difficulties for the actors involved.

Design/methodology/approach

The authors start this study in Germany, one of the most important export markets for Norwegian herring. Today, Norwegian legislation hinders the possibility of vertical integration and cooperation at the supply side of the network. However, the industry sees opportunities for growth and integration on the marketing side. To examine this issue, the study uses a qualitative design methodology, incorporating personal in-depth interviews with selected respondents in Norway and Germany. Secondary data is also used. To analyse the data, the authors introduce five interaction and integration patterns termed pure exchange – no integration; limited interaction and integration; extensive interaction and developed integration and; indirect interaction and structural integration; and full integration.

Findings

The findings suggest that there is a link between how the actors perceive herring as a resource and how they interact with counterparts. The authors find that the actors who see the resource as homogeneous have limited interaction and little or no integration, whereas the actors who see the resource as heterogeneous have a much more extensive interaction and closer ties.

Originality/value

The paper is an investigation of the link between the resource heterogeneity and the patterns of customer-supplier integration.

Details

IMP Journal, vol. 9 no. 1
Type: Research Article
ISSN: 2059-1403

Keywords

Article
Publication date: 1 January 1986

Farok J. Contractor

The past three years have seen an acceleration in the rate with which companies have formed strategic partnerships with foreign firms in both the US and overseas markets. This…

Abstract

The past three years have seen an acceleration in the rate with which companies have formed strategic partnerships with foreign firms in both the US and overseas markets. This article examines the theoretical rationale underlying joint ventures and asks what strategic considerations lie behind their formation. Fifteen case examples of joint ventures are presented and analysed to see how the theoretical concepts fit actual situations.

Details

International Marketing Review, vol. 3 no. 1
Type: Research Article
ISSN: 0265-1335

Article
Publication date: 1 April 1977

K. J. Blois

Notes changes in the economic structure that have important implications for the marketing strategy of many companies – in particular smaller companies who may find themselves…

Abstract

Notes changes in the economic structure that have important implications for the marketing strategy of many companies – in particular smaller companies who may find themselves, whilst retaining their legal independence, losing part of their operational independence. Describes an investigation into the degree of supplier dependence in two industries – considering the value of two measures as predictors of the likelihood of a supplier being customer dependent. Suggests large firms are not necessarily large customers and goes on to ratify this. Investigates two industries in this study: one in the iron‐casting industry; the other in the plastic injection moulding industry – these two were chosen because of meeting three criteria which were relevant to the study. Sums up that suppliers must examine markets and plan its development trying to take account of likely developments in the structure of its markets.

Details

European Journal of Marketing, vol. 11 no. 4
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 1 December 1996

Christos Kalantaridis

During the 1980s and early 1990s it was widely reported that large parts of the European countryside experienced considerable industrial growth led by a burgeoning of small and…

1082

Abstract

During the 1980s and early 1990s it was widely reported that large parts of the European countryside experienced considerable industrial growth led by a burgeoning of small and medium‐scale enterprises. The growth of these firms was closely associated with an expansion of trade and the intensification of competition on a world scale and the renaissance of industrial districts in specific localities. Within this context the notion of the “network” has been deployed in order to explore the complex interrelationships that exist in the relatively uncharted territory that lies between enterprises. This concept is employed to show how production units without any apparent legal connections establish a web of relationships in terms of flows of materials, information and finance. Social networks of entrepreneurs often lie behind the multitude of inter‐firm linkages. Focuses on a garment‐producing district of the northern Greek region of Macedonia that has experienced an explosion of enterprises and jobs since the early 1970s. Drawing on the experience of the small town of Polikastro and the adjoining rural county of Peonia, sets out to explore the processes of subcontracting and production networking. Aims to investigate the form and the nature of interorganizational relationships within the locality as well between rural industrialists, urban intermediaries and parent enterprises abroad. Examines changes in the linkages between firms within the context of developments that have taken place in the local communities and in the international marketplace.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 2 no. 3
Type: Research Article
ISSN: 1355-2554

Keywords

Book part
Publication date: 28 March 2006

Seyda Deligonul and S. Tamer Cavusgil

Given the confluence of opportunism, bounded rationality, and asset specificity in a partnership, the participants may attempt to expropriate certain rents. This type of rent is…

Abstract

Given the confluence of opportunism, bounded rationality, and asset specificity in a partnership, the participants may attempt to expropriate certain rents. This type of rent is called the quasi-rent, and it is the reason for participating in the relationship in the first place (Alchian & Woodward, 1988). A quasi-rent is the excess above the returns necessary to sustain the current use of resources. It can be the means to recover sunk costs, such as investments in assets in general, and relational assets in our context. A relational quasi-rent is that portion of the quasi-rent generated by a resource that depends on the partner's resources (Hill, 1990). It stems from investment in specialized assets to support a partnership. Also this rent is the amount, which a partner can expropriate without destroying the relationship.

Details

Relationship Between Exporters and Their Foreign Sales and Marketing Intermediaries
Type: Book
ISBN: 978-1-84950-397-6

Article
Publication date: 1 April 2004

Maite Barneto and Juan F. Franco

During the last two decades, the Western automobile industry has undergone significant changes. These changes have affected not only the internal organization of firms, but also…

Abstract

During the last two decades, the Western automobile industry has undergone significant changes. These changes have affected not only the internal organization of firms, but also their vertical limits and relationships with suppliers. This paper proposes an analytical model based on the concept of relational intensity, which allows us to characterize and analyze the current relationships maintained between automakers and direct suppliers, using the Japanese model as a frame of reference. The proposed model is applied to the case of the Spanish automobile industry. The automobile assemblers located in Spain maintain relationships of varying intensity with different groups of suppliers. There are four variables that explain this relational intensity: the technical complexity of the part/component, the human capital and locational specificity, and the market power of the supplier.

Details

Management Research: Journal of the Iberoamerican Academy of Management, vol. 2 no. 1
Type: Research Article
ISSN: 1536-5433

Keywords

Article
Publication date: 19 July 2021

Emilio Paolucci, Elena Pessot and Riccardo Ricci

This paper aims to investigate the effect of specific subsets of digital technologies and governance mechanisms (i.e. relational and contractual) on the efficiency of the…

2137

Abstract

Purpose

This paper aims to investigate the effect of specific subsets of digital technologies and governance mechanisms (i.e. relational and contractual) on the efficiency of the automotive supply chain (SC).

Design/methodology/approach

Building on the Transaction Costs Economic (TCE) theory, and on the literatures on the governance and Digital Transformation of SCs, the research employs a multi-respondent survey on a sample of 101 Italian automotive suppliers. It analyses the interplay between investments in network and physical–digital interface technologies and buyer–supplier relationship governance models in a joint product development effort. The related effects on costs, from the automotive suppliers' perspective, are considered.

Findings

The results confirm the TCE assumptions on governance mechanisms being appropriate to enhance cost performance, but in particular show that digital technologies shape the governance of buyer–supplier relationships with different patterns. The features of synchronisation and accessibility, as ensured by network technologies, are found to strengthen the impact of contractual governance, while the adoption of physical–digital interface technologies, and their enhanced features of virtualisation and traceability, further enhance the impact of relational governance on the efficiency improvements of suppliers.

Practical implications

SC actors need to recognise the importance of long-term collaboration and superior coordination through investments in specific subsets of digital technologies, to ensure a higher product and production data codifiability, transparency and thus integration at both an intra- and an inter-firm level.

Originality/value

This study is one of the first to have considered Digital Transformation in SCs from the suppliers' perspective and its implications on the efficiency of relationship governance with buyers.

Details

International Journal of Operations & Production Management, vol. 41 no. 7
Type: Research Article
ISSN: 0144-3577

Keywords

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