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In a relationship both sides are important for the development. This is one reason why purchasing has always been as central as marketing in the empirical studies in IMP. The manner in which the features of business networks affect the role of purchasing and the roles of the suppliers and supply management is here in focus. The existence and importance of business relationships have normative consequences for purchasing that are very distinct and break clearly with some of the traditional normative recommendations for purchasing. The authors believe that ‘buying organisations increasingly need to develop interactive interfaces with their suppliers. One reason is that collaborative innovation and therefore the development role of PSM (purchasing and supply management) is becoming more important’. The conclusion is clear: If the buying organisations want to get more out of the suppliers than the supply of a standard product at a certain price, they have to engage in a more extensive interaction and develop a broader and closer business relationship that must be properly managed. That implies giving up some autonomy and accepting dependence on suppliers as developmental partners.

Objectives – Purchasing has been promoted as a key policy instrument to improve health system performance. Despite its widespread adoption, there is little empirical evidence on how it works, the challenges surrounding its implementation, its impact, and the preconditions for it to function effectively, particularly in low- and middle-income settings. The objective of this chapter is to analyze critically the extent to which purchasing could be, and has been used strategically in China and to identify modifications that are needed for purchasing to be effective in assuring that the government's new funding for health care will result in efficient and effective health services.

Methods – We present a conceptual framework for purchasing, which identifies three critical principal–agent relationships in purchasing. We draw on evidence from secondary data, results of other research studies, interviews, and the impact evaluation of a social experiment in rural China that explicitly used purchasing to improve quality and efficiency. This information is used to examine purchasing relationships in urban social health insurance (SHI), the rural medical insurance scheme, and purchasing of public health services.

Findings – To date, use of strategic purchasing is limited in China. Both the urban and the rural health insurance schemes act as passive third-party payers, failing to take advantage of the opportunities to strengthen incentives to improve quality and efficiency. This may be because as government agencies, the extent to which the Ministries of Health and Labor and Social Security can act independently from provider interests, or act in the best interest of the population, is unclear. Other important challenges include ensuring adequate representation of the population's views and preferences and making better use of the leverage provided by purchasing to create appropriate provider incentives, through better integration of financing and improved coordination among purchasers.

Implications for policy – In designing purchasing arrangements, attention needs to be paid to all three principal–agent relationships. Successful purchasing appears to require mechanisms to mobilize and represent community preferences and more strategic contracting with providers. More research is needed to strengthen the evidence on which purchasing arrangements work, which do not work, and under what conditions different purchasing configurations can work most effectively.

This paper revisits Bartlett and Ghoshal’s transnational theory of the MNC in relation to multi-domestic MNCs. We argue that the aggregate level of analysis adopted by Bartlett and Ghoshal is unhelpful for identifying significant changes in multi-domestic MNCs at the level of discrete functions. We argue that a more disaggregated level of analysis is required. Our analysis of two cases of multi-domestic MNCs that have undertaken the global integration of their locally distributed purchasing functions indicates that while significant change to the purchasing function has occurred, at the aggregate level both MNCs remain multi-domestic. In both cases the decision to integrate local purchasing was regarded as having more obvious benefits than integrating other functions such as marketing. While both of our case multi-domestic MNCs may in future choose to integrate other functions and develop into full-fledged transnational companies we argue that there is no inevitability to this. Indeed global integration may cease with the purchasing function. A second theme in this paper is that we argue that Bartlett and Ghoshal’s transnational theory has a biased view of what constitutes effective governance mechanisms for achieving global integration, local responsiveness and worldwide learning and that it would greatly benefit from a more balanced application of hierarchical and relational governance mechanisms.

In this paper the concept of the value of resources is operationalized. It is argued that the resource value is determined in dyads, instead of within one firm. The purchasing model of Kraljic (1983) is used to operationalize “value” from a supply chain perspective. The value of the resource of a firm is determined by the value of the resource as perceived by its customer(s). The presented model can be used by organizations to build and develop their resource base, and thus create better relations with their customers.

Contemporary literature reveals that, to date, the poultry livestock sector has not received sufficient research attention. This particular industry suffers from unstructured supply chain practices, lack of awareness of the implications of the sustainability concept and failure to recycle poultry wastes. The current research thus attempts to develop an integrated supply chain model in the context of poultry industry in Bangladesh. The study considers both sustainability and supply chain issues in order to incorporate them in the poultry supply chain. By placing the forward and reverse supply chains in a single framework, existing problems can be resolved to gain economic, social and environmental benefits, which will be more sustainable than the present practices.

The theoretical underpinning of this research is ‘sustainability’ and the ‘supply chain processes’ in order to examine possible improvements in the poultry production process along with waste management. The research adopts the positivist paradigm and ‘design science’ methods with the support of system dynamics (SD) and the case study methods. Initially, a mental model is developed followed by the causal loop diagram based on in-depth interviews, focus group discussions and observation techniques. The causal model helps to understand the linkages between the associated variables for each issue. Finally, the causal loop diagram is transformed into a stock and flow (quantitative) model, which is a prerequisite for SD-based simulation modelling. A decision support system (DSS) is then developed to analyse the complex decision-making process along the supply chains.

The findings reveal that integration of the supply chain can bring economic, social and environmental sustainability along with a structured production process. It is also observed that the poultry industry can apply the model outcomes in the real-life practices with minor adjustments. This present research has both theoretical and practical implications. The proposed model’s unique characteristics in mitigating the existing problems are supported by the sustainability and supply chain theories. As for practical implications, the poultry industry in Bangladesh can follow the proposed supply chain structure (as par the research model) and test various policies via simulation prior to its application. Positive outcomes of the simulation study may provide enough confidence to implement the desired changes within the industry and their supply chain networks.

Public procurement is important in itself but is also an important intervening force in some business networks. Two aspects are of particular interest. The first is that public purchasing is an important ingredient in public policy in relation to a number of business networks; it is substantial in areas such as transportation, communication, health care and defence, where the ‘public’ is often the most dominating actor. As such it can be one of the measures in innovation policies, as well as in regional and local development policies. The second aspect is that public purchasing is highly regulated by law, based mostly on the assumption of ‘homogeneous, competitive, product markets’. That restricts public procurement in forming close and continuous supplier relationships, thus making more effective use of these relationships, particularly for development purposes. A consequence is that suppliers’ capabilities cannot be used in the same way as in the private sphere. The chapter concludes with a discussion of current developments in regulation that allow closer collaboration with suppliers and the likely benefits, a feature that has been evidenced in prior Industrial Marketing and Purchasing (IMP) research.

To provide an overview of research published in the management accounting literature on methods for cost management in new product development, such as a target costing, life cycle costing, component commonality, and modular design.

The structured literature search covered papers about 15 different cost management methods published in 40 journals in the period 1990–2013.

The search yielded a sample of 113 different papers. Many contained information about more than one method, and this yielded 149 references to specific methods. The number of references varied strongly per cost management method and per journal. Target costing has received by far the most attention in the publications in our sample; modular design, component commonality, and life cycle costing were ranked second and joint third. Most references were published in Management Science; Management Accounting Research; and Accounting, Organizations and Society. The results were strongly influenced by Management Science and Decision Science, because cost management methods with an engineering background were published above average in these two journals (design for manufacturing, component commonality, modular design, and product platforms) while other topics were published below average in these two journals.

The scope of this review is accounting research. Future work could review the research on cost management methods in new product development published outside accounting.

The paper centers on methods for cost management, which complements reviews that focused on theoretical constructs of management accounting information and its use.

B2B business is very much about relationships, and solution-oriented business may further underline this. But relations could look very different and the interface between buyer and seller could also vary a lot and be more or less fit for purpose.

In this chapter, we point at possibilities to be more methodical about the ways in which the interfaces are organized. In longer-term business, this seems to be a core factor in order for the two or more parties involved how to get the best value of their relation. We discuss interaction patterns and what seem to be the most important factors influencing the success or failure.

In e-commerce, consumers have begun to rely on the opinions of fellow consumers who posted through online consumer reviews to a reputation management system. An ethical concern has arisen in the use and abuse of these new systems. We examine the underlying ethical issues that entrepreneurs are confronting in this time of surging e-commerce. Using 32 vignettes, one for each cross-section of our research construct framework, followed by two Likert scales for respondents to indicate their agreement with the action described from both the perspective of ethicality and professional acceptability, we received responses for 1,252 vignettes, which generated a dataset of 2,504 data points. The results of our pilot study suggest that the ethical considerations for business professionals conducting business online are more nuanced and complex than conventional wisdom on the subject might suggest. While 60 research subjects are small, the use of paired vignettes in our survey allowed us to measure at least 1,000 paired responses for each research construct. The results have the potential of revealing how young professionals have been conditioned by the prevalence of web-based interactions and the anonymity they afford participants, as well as the degree to which they rationalize the misrepresentation of information by business professionals for the purpose of manipulating consumers’ purchasing decisions in order to drive sales. If consumers’ trust in reputation management systems erodes, the result could be a collapse of the entire system as a meaningful source of information. We also demonstrate the tolerance of what is deemed ethical versus professionally acceptable with online business practices.