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Article
Publication date: 19 February 2018

Sushil S. Chaurasia

This paper aims to examine the impact of goal compatibility on value co-creation in a retailer–manufacturer outsourcing relationship. This paper also examines whether power…

Abstract

Purpose

This paper aims to examine the impact of goal compatibility on value co-creation in a retailer–manufacturer outsourcing relationship. This paper also examines whether power balance, information symmetry and duration of engagement influence the above causal relationship.

Design/methodology/approach

The study used a structured questionnaire to test the relationship between goal compatibility and value co-creation through power balance and information symmetry, along with the moderating role of duration of the engagement. The instrument was administered to 230 top and senior management representatives from manufacturing firms located in 11 major Indian industrial cities.

Findings

Goal compatibility is significantly related to value co-creation. The results had also shown that power balance and information symmetry mediated the relationship between goal compatibility and value co-creation.

Research limitations/implications

Future researchers should examine these complex phenomena across more diverse industries and settings to enhance generalizability. Data should be gathered from both side of the channel dyad. Data should be also collected longitudinally to extend the current cross-sectional design.

Practical implications

Understanding the association between goal compatibility and value co-creation, with mediating and moderating factors can provide useful information to strengthen the inter-organizational relationship with maximizing mutual benefits.

Originality value

This research offers new insights into the links between goal compatibility and value co-creation. The retailers engaged in outsourcing can use these value drivers to understand their manufacturer and their respective priorities for value co-creation.

Details

Journal of Global Operations and Strategic Sourcing, vol. 11 no. 1
Type: Research Article
ISSN: 2398-5364

Keywords

Article
Publication date: 31 December 2018

Aswini Yadlapalli, Shams Rahman and Helen Rogers

The purpose of this paper is to identify and prioritise social responsible mechanisms in apparel supply chains to extend social responsibility from large retailers in developed…

Abstract

Purpose

The purpose of this paper is to identify and prioritise social responsible mechanisms in apparel supply chains to extend social responsibility from large retailers in developed countries to producers in developing nations.

Design/methodology/approach

A framework that consists of supplier qualification and supplier relational mechanisms as two socially responsible mechanisms, with five factors and 18 dimensions is proposed. To prioritise the dimensions, analytic hierarchy process is employed by using a case study methodology of a major Australian retailer sourcing from Bangladesh manufacturers.

Findings

Results indicate that at the mechanism level, both retailer and manufacturers perceive qualification of manufacturer as by far the most critical element compared to the relational mechanism. However, substantial differences exist at the factor level; namely, that the social factor is critical for the retailer, whereas the economic factor is critical for the manufacturer. Within the relational mechanism, evaluation helps retailers to enforce social responsibility, while manufacturers believe collaboration helps.

Research limitations/implications

The major limitation of this study is the generalisation of the findings. The results obtained by focusing on a particular context in the Australian retail sector importing from Bangladesh, may not be applicable to other nations.

Practical implications

By highlighting the difference of opinion, this study assists managers in developing guidelines to better understand the socially responsible mechanisms in the retailer-manufacturer dyadic relationship and to propose strategies to address the differences.

Originality/value

This study advances the literature on inter-organisational relationship to retailer-manufacturer dyad for the implementation of social responsibility by including supplier qualification along with supplier relational mechanism.

Details

International Journal of Physical Distribution & Logistics Management, vol. 49 no. 3
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 3 March 2014

Joachim C.F. Ehrenthal, Thomas W. Gruen and Joerg S Hofstetter

– The purpose of this paper is to address the effects of retail out-of-stocks from a service-dominant (S-D) logic view.

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Abstract

Purpose

The purpose of this paper is to address the effects of retail out-of-stocks from a service-dominant (S-D) logic view.

Design/methodology/approach

Conceptual, combining classic S-D logic research with recent research of S-D logic in supply chains, and applying this to out-of-stocks in a retail setting of fast-moving consumer goods.

Findings

The paper unveils out-of-stocks as emergent operant resources that alter and attenuate value creation across manufacturers, retailers, shoppers, users and their networks. The paper develops a model of value co-creation where manufacturer supply and shopper/user demand meet in the retailer ' s realm. Differentiating between shopper and user in a sequential model of value creation, it identifies the shopper as an active entity whose response to out-of-stocks redistributes value within the retail service ecosystem. An additional model is developed that illustrates the novel costs of an out-of-stock as uncovered by the S-D logic perspective, allowing retailers and manufacturers to align their interests in improving on-shelf availability.

Research limitations/implications

Moving distribution thought and management towards a goal of service provision, this article suggests three logistics research possibilities: retailer-manufacturer misalignment, spatio-temporal supply-demand mismatch, and shopper-user interaction.

Practical implications

This article shows how the S-D perspective can bring previously misaligned incentives of supply chain actors into alignment. Previous goods-dominant research showed little common ground for manufacturers and retailers to jointly improve on-shelf availability. The S-D logic view demonstrates compelling rationale for both parties ' involvement.

Originality/value

The paper extends S-D logic literature by considering value attenuation through failures in physical distribution and logistics management, adding that non-availability causes operand resources to become operant and attenuate/redistribute value. The paper extends the out-of-stock literature by providing a theoretical foundation, and by showing the ecosystem effects of out-of-stocks.

Details

International Journal of Physical Distribution & Logistics Management, vol. 44 no. 1/2
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 23 August 2019

Anna Frieda Rosin, Stephan Stubner, Sushil S. Chaurasia and Surabhi Verma

The purpose of this paper is to examine the effects of retailers’ organizational controls and controls of their boundary personnel on manufacturers’ outsourcing performance. It…

Abstract

Purpose

The purpose of this paper is to examine the effects of retailers’ organizational controls and controls of their boundary personnel on manufacturers’ outsourcing performance. It further assesses the moderating impact of information symmetry in this context.

Design/methodology/approach

Data were collected from 230 Indian apparel manufacturers engaged in outsourcing activities with two international retailers. Organizational control is scrutinized as formal and informal controls, and outsourcing performance is studied in terms of efficiency and effectiveness. The partial least squares approach is used to test the proposed research model.

Findings

First, the retailers’ and the boundary person’s formal controls have a direct, positive effect on outsourcing efficiency. Second, although no significant effect of the boundary person’s formal controls on outsourcing effectiveness is identified, a significant effect of retailers’ formal controls on effectiveness is seen. Third, the boundary person’s informal controls are associated with a decrease in efficiency, whereas they have a positive effect on effectiveness. Fourth, although the retailers’ informal controls enhance outsourcing effectiveness, they negatively affect efficiency. Fifth, information symmetry is statistically significant in enhancing outsourcing efficiency and effectiveness.

Practical implications

The results have important implications for retailers and retailers’ boundary persons who are keen to improve their relations with manufacturers. This paper offers practical insights into the ways that manufacturers, boundary personnel and retailers can exercise control mechanisms in order to achieve effective and efficient outsourcing outcomes.

Originality/value

The effect of organizational control and information symmetry on outsourcing performance in typical outsourcing practices in manufacturer‒retailer relationships is shown.

Details

Journal of Enterprise Information Management, vol. 32 no. 6
Type: Research Article
ISSN: 1741-0398

Keywords

Article
Publication date: 7 August 2009

David H. Taylor and Andrew Fearne

The purpose of this paper is to highlight the problems with demand management in fresh food value chains and to propose a framework for demand analysis and improved demand…

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Abstract

Purpose

The purpose of this paper is to highlight the problems with demand management in fresh food value chains and to propose a framework for demand analysis and improved demand management.

Design/methodology/approach

The paper draws on empirical evidence from multiple case studies undertaken in the UK food industry.

Findings

Evidence from the case studies indicates a consistent misalignment of demand and supply, due to demand amplification, poor production systems and inconsistencies with information and data handling procedures.

Research limitations/implications

The case study evidence is limited to the UK context and is therefore unlikely to be representative of the global situation in fresh food value chains. The proposed framework is based on the case study evidence but has not been formally tested.

Practical implications

More collaboration, information sharing and joint planning from primary production through to retailing is critical if fresh food value chains are to function efficiently and effectively in retail environments where promotional activity creates significant uncertainty.

Originality/value

Demand management has received little attention to date, outside the industry framework of ECR. This paper is the first to propose a framework for improvement based on greater collaboration and joint planning that extends beyond the retailer‐manufacturer interface

Details

Supply Chain Management: An International Journal, vol. 14 no. 5
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 12 April 2021

Vicente Sales-Vivó, Irene Gil-Saura and Martina G. Gallarza

This paper addresses both conceptual and empirical value co-creation and relationship quality in a triadic approach for a B2B industrial context by 1) reviewing the relationship…

Abstract

Purpose

This paper addresses both conceptual and empirical value co-creation and relationship quality in a triadic approach for a B2B industrial context by 1) reviewing the relationship quality concept when social and economic satisfaction are addressed separately and 2) testing alternative models of relationship quality and economic satisfaction when value co-creation is introduced.

Design/methodology/approach

Two alternative models are developed where relationship quality is conceptualized as a higher-order multi-dimensional construct with three sub-factors: trust, commitment and social satisfaction. Data on the B2B relationship were collected from 77 partaking firms in the Spanish Furniture Market Observatory business panel, covering the manufacturer-retailer and manufacturer-supplier relationships for control and comparison purposes.

Findings

Using PLS-SEM, results reflect that social and economic satisfaction act differently in the B2B relationship. The effect of relationship quality on economic satisfaction is greater when value co-creation is introduced as a mediating variable, although this mediation is partial. Moreover, the mediating effect is greater in the manufacturer-supplier relationship than in the manufacturer-retailer one.

Originality/value

The paper reduces the conceptual gap between value exchanges in B2C and B2B contexts. It also introduces a less-common triadic approach along the supply chain for B2B industrial relationships. Evidence is provided on the importance of social satisfaction as an affective dimension of relationship quality and on the mediating role of value co-creation between relationship quality and economic satisfaction.

Details

International Journal of Retail & Distribution Management, vol. 49 no. 7
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 30 July 2018

Kizito Elijah Kanyoma, Frank Wogbe Agbola and Richard Oloruntoba

The purpose of this paper is to explain the interrelationships in internal and external supply chain integration (SCI) across multiple tiers of manufacturing-based small and…

Abstract

Purpose

The purpose of this paper is to explain the interrelationships in internal and external supply chain integration (SCI) across multiple tiers of manufacturing-based small and medium-sized enterprises (SMEs) in a developing country, Malawi.

Design/methodology/approach

Utilizing the resource-based view, resource-dependence and network theory perspectives, and drawing on a multiple embedded case-study approach, the research investigated the internal and external linkages within three-tier supplier, manufacturer and retailer SCs and described varying perspectives of SCI across supply chain positions.

Findings

Firms with strategic intra-firm resources were less committed to external integration, deploying their resources as a source of power to dominate and exploit their dependent partners. The SCI across multiple tiers was impaired by dependence but enhanced by interdependence strategies of firms. Although lack of trust, promotion of non-overlapping self-interests, corruption in sourcing processes and resource constraints negatively affected SCI, firm commitment to external integration promoted greater commitment among firms, thus having a positive effect on SCI.

Research limitations/implications

Further analysis of SCI of SME triads and a more systematic longitudinal analysis across other market segments should be explored to generalize the conclusions of this study.

Practical implications

The external influences on dyadic relationships go beyond the interactions of heterogeneous firms in the network to encompass interpersonal interactions across the network, where individuals may potentially prioritize personal connections and sabotage the interests of their firms.

Originality/value

The research explored the internal and external dimensions of SCI in multi-tier SCs of SMEs, and provided for the first time new evidence to show that firm commitment to engaging with partners complements the mechanisms of SCI within a developing country context. It highlights the need to develop trust, eliminate corruption, promote greater commitment of SC partners and encourage greater investment in firms’ resource capabilities to enhance SCI among SMEs.

Details

The International Journal of Logistics Management, vol. 29 no. 3
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 25 January 2008

Martin Hingley, Valeria Sodano and Adam Lindgreen

The purpose of this article is twofold: first, to review the literature in order to assess the opportunities and the possible welfare effects of differentiation strategies in the…

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Abstract

Purpose

The purpose of this article is twofold: first, to review the literature in order to assess the opportunities and the possible welfare effects of differentiation strategies in the food market; and second, to analyse the current structure and organisation of the fresh produce market (fruit, vegetable, and salad) in the light of new product procurement, innovation, and differentiation policies carried out by retailers at the global level.

Design/methodology/approach

The paper used a single dyadic case study across two countries (Italy and the UK): the primary producer is engaged in “partner” supply to a principal category management intermediary for channel leading multiple retailers.

Findings

First, equilibrium in differentiated markets is not stable, and a welfare assessment is difficult. Second, a differentiation strategy in the market for fresh produce might benefit retailers more than in other sectors, which seem to be consistent with the theoretical findings. Third, when retailers engage in product differentiation it is more likely that channel relationships shift from collaborative to competitive types, with the power imbalance becoming the disciplinary means by which vertical coordination is achieved and maintained.

Research limitations/implications

This article was based on a single case study.

Practical implications

For suppliers it could be wise to agree to some inequity as the cost of doing business, especially when smart large retailers carry out successfully competitive strategies with positive spill‐over effects on the upstream firms.

Originality/value

Using the industrial economic literature on the effects of differentiation strategies (horizontal and vertical differentiation) on market structure, firms' performance, and welfare effects, this paper analyses case findings from a study in the fresh produce industry and will be of interest to those within the field.

Details

British Food Journal, vol. 110 no. 1
Type: Research Article
ISSN: 0007-070X

Keywords

Book part
Publication date: 19 April 2022

Petchprakai Sirilertsuwan

This chapter shows how different recycling locations influence closed-loop supply chain (CLSC) cost and carbon dioxide equivalents (CO2e), as well as reveal competitive recycling…

Abstract

This chapter shows how different recycling locations influence closed-loop supply chain (CLSC) cost and carbon dioxide equivalents (CO2e), as well as reveal competitive recycling and manufacturing locations, including relevant distance- and location-related factors, for achieving very low cost and CO2e CLSCs supporting circular economy. Exploratory data analysis is used to analyze results from simulations based on empirical data and market rates relating to textile and clothing CLSCs. The results show that most very low-cost and CO2e CLSCs consist of fabric and garment manufacturing located at the same or nearby locations, and whose labor costs and electricity CO2e are low, whether fiber recycling facilities are located in proximity to used garment sorting facilities or not. Scenario and sensitivity analyses of important cost and CO2e factors for recycling location competitiveness reveal that increasing used garment prices makes locations with high import duties lose competitiveness, and that varying water freight CO2e changes comparative location competitiveness.

Article
Publication date: 1 August 1998

Paul Freathy and Frank O’Connell

Airport retailing is an under‐researched area of study. It is also a sector displaying significant year‐on‐year growth. This paper examines the structure of the supply chain…

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Abstract

Airport retailing is an under‐researched area of study. It is also a sector displaying significant year‐on‐year growth. This paper examines the structure of the supply chain within airport retailing and the main factors that differentiate it from its downtown counterpart. It describes the structure and operation of the supply chain within European airport retailing and the main sources of power that retailers and suppliers draw on in the negotiating process. The paper concludes that, relative to other retail sectors, relationships within the airport retailing supply chain are technologically unsophisticated and based on conventional market exchange principles.

Details

International Journal of Physical Distribution & Logistics Management, vol. 28 no. 6
Type: Research Article
ISSN: 0960-0035

Keywords

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