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Article
Publication date: 5 August 2019

Rong Zhao, Raj Mashruwala, Shailendra Pandit and Jaydeep Balakrishnan

The purpose of this paper is to conduct a large-sample empirical investigation of how relational capital impacts bullwhip at the supplier.

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Abstract

Purpose

The purpose of this paper is to conduct a large-sample empirical investigation of how relational capital impacts bullwhip at the supplier.

Design/methodology/approach

The study uses mandatory disclosures in regulatory filings of US firms to identify a supplier’s major customers and constructs empirical proxies of supply chain relational capital, i.e., length of the relationship between suppliers and customers and partner interdependence. Multivariate regression analyses are performed to examine the effects of relational capital on bullwhip at the supplier.

Findings

The findings show that bullwhip at the supplier is greater when customers are more dependent on their suppliers, but is reduced when suppliers share longer relationships with their customers. The results also provide additional insights on several firm characteristics that impact supplier bullwhip, including shocks in order backlog, selling intensity and variations in profit margins. Furthermore, the authors document that the effect of supply chain relationships on bullwhip tends to vary across industries and over time.

Originality/value

The study employs a novel data set that is constructed using firms’ financial disclosures. This large panel data set consisting of 13,993 observations over 36 years enables thorough and robust analyses to characterize supply chain relationships and gain a deeper understanding of their impact on bullwhip.

Details

International Journal of Operations & Production Management, vol. 39 no. 5
Type: Research Article
ISSN: 0144-3577

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Article
Publication date: 10 June 2014

Rajiv D. Banker, Raj Mashruwala and Arindam Tripathy

The purpose of this paper is to investigate the relationship between the strategic positioning of firms and the sustainability of firm performance. The paper argues that…

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21217

Abstract

Purpose

The purpose of this paper is to investigate the relationship between the strategic positioning of firms and the sustainability of firm performance. The paper argues that pursuing a differentiation strategy leads to more sustainable financial performance compared to following a cost leadership strategy. However, a differentiation strategy may also be associated with greater risk.

Design/methodology/approach

To investigate the research questions, the authors utilize publicly available archival data consisting of 12,849 firm-year observations for the period 1989-2003. In the first stage of the analysis, factor analysis is used to determine firms’ strategic positioning. The resulting factor scores are subsequently used in regression analysis to investigate the sustainability of performance based on the strategic positioning of firms.

Findings

The results indicate that both cost leadership and differentiation strategies have a positive impact on contemporaneous performance. However, the differentiation strategy allows a firm to sustain its current performance in the future to a greater extent than a cost leadership strategy. The differentiation strategy, though, is also associated with greater systematic risk and more unstable performance.

Originality/value

Sustainability of performance refers to how much a firm's current profitability can be sustained in future periods. The main contribution of this study is the comparison of generic strategies based on the sustainability of firm performance. This aspect of the strategy-performance link has not been considered in prior work. Another contribution of the study is that it considers multiple dimensions of firm performance in order to evaluate the trade-offs involved with pursuing different strategies. In particular, the authors contribute to the literature by documenting that while differentiation leads to more sustainable earnings, it also leads to riskier and more unstable earnings.

Details

Management Decision, vol. 52 no. 5
Type: Research Article
ISSN: 0025-1747

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Book part
Publication date: 29 March 2016

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Details

Advances in Management Accounting
Type: Book
ISBN: 978-1-78441-652-2

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Book part
Publication date: 23 November 2016

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Advances in Management Accounting
Type: Book
ISBN: 978-1-78560-972-5

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Book part
Publication date: 13 August 2018

Abstract

Details

Advances in Management Accounting
Type: Book
ISBN: 978-1-78756-440-4

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Book part
Publication date: 3 July 2017

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Advances in Management Accounting
Type: Book
ISBN: 978-1-78714-530-6

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Book part
Publication date: 28 October 2021

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Advances in Management Accounting
Type: Book
ISBN: 978-1-80043-627-5

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Book part
Publication date: 28 September 2020

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Advances in Management Accounting
Type: Book
ISBN: 978-1-83982-913-0

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Book part
Publication date: 20 October 2017

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Advances in Management Accounting
Type: Book
ISBN: 978-1-78743-297-0

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Case study
Publication date: 20 January 2017

Craig J Chapman

In the (A) case, Jason Phillips, Chief Financial Officer of a soup manufacturing business, is given the task of maximizing the value of the firm twelve months after the…

Abstract

In the (A) case, Jason Phillips, Chief Financial Officer of a soup manufacturing business, is given the task of maximizing the value of the firm twelve months after the case is set. Although he does not want to break any legal rules, Jason is interested to see whether accounting and real action choices can be used to enhance the company's financial position and increase its perceived value to investors. The case permits him to select from a menu of options, including decisions on product pricing, inventory levels, accounts receivables, leasing or purchasing a new machine and valuation or sale of securities. These choices are fed into an Excel spreadsheet which adjusts financial projections and accounting disclosures accordingly.

In the (B) case, Ben Kerr, Chief Investment Officer at one of Dragon's main competitors, considers the financial statements produced by Dragon to unravel any earnings management behavior and establish a true value for the company. Although the case can be focused on the accounting consequences of real decisions, a richer discussion is obtained when considering the ethical angles of the decision process. In particular, how much “earnings management” should be pursued and what types of behaviors are simply going to be unraveled by investors?

Students will explore: the concepts of “legal” earnings management as compared to true value optimization; whether sophisticated investors misled by such behaviors; and the management of information flows to investors.

Details

Kellogg School of Management Cases, vol. no.
Type: Case Study
ISSN: 2474-6568
Published by: Kellogg School of Management

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