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1 – 10 of over 5000Minna Oinonen and Anne Maarit Jalkala
Innovations in business-to-business markets often result from co-development activities between multiple actors, all of which have their own goals for the collaboration. The…
Abstract
Purpose
Innovations in business-to-business markets often result from co-development activities between multiple actors, all of which have their own goals for the collaboration. The purpose of this paper is to study how the actors’ divergent goals reflect on their perceptions of the supplier-customer co-development process.
Design/methodology/approach
A grounded theory approach is adopted to reveal the actors’ perceptions of eight studied supplier-customer co-development processes, of which, four also involve an expert partner.
Findings
The findings suggest that because of the supplier’s aim to commercialize the resulting product, a supplier has a wider ranging perception of the co-development process, whereas the customer and expert partner focus on those phases that support their goals to improve the efficiency of the process or to develop new technology.
Practical implications
As each actor operates according to its own goals and is involved in those phases of the process that facilitates their achievement, the study recommends that managers consider each actor’s goals which are reflected on their perception of the co-development.
Originality/value
This is among the first studies to focus on the co-development process from multiple perspectives and include data from various actors involved in the process. The paper contributes to the co-development literature both by presenting actors’ divergent perspectives on the process and proposing an empirically grounded dyadic framework of the supplier-customer co-development process.
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Paolo Barbieri, Brice Dattée and Santosh K. Mahapatra
This paper aims to examine how collaborative supplier development (SD) activities, supplier capabilities and buyer–supplier relationship interrelate in technology-based, luxury…
Abstract
Purpose
This paper aims to examine how collaborative supplier development (SD) activities, supplier capabilities and buyer–supplier relationship interrelate in technology-based, luxury product business contexts characterized by small volumes, difficult targets and resource constraints relative to those targets.
Design/methodology/approach
Using inductive case research method, the authors investigate multiple embedded cases involving six dyadic buyer–supplier relationships of two luxury product manufacturers in the motorcycle and automotive industries. Each dyad represents an important sub-system for which the buying firm committed significant SD efforts to help the supplier successfully achieve difficult targets.
Findings
The analysis reveals how paradoxical tensions might emerge as the firms engage in successful SD activities, which could lead to decreasing relationship commitment ultimately resulting in the termination of the relationship. The authors utilize the “value co-creation and value capture” paradox framework to understand the SD and relationship dynamic and characterize it as developing-leveraging paradox to explain its dualities, i.e. commitment-based SD efforts (increasing value co-creation), and unilateral leveraging of the newly acquired capabilities (increasing value capture) by both the buyer and the supplier. Overemphasis on value capture by one of the exchange partners spurs a detrimental vicious cycle leading to the decline of the relationship.
Research limitations/implications
The study explains the paradoxical dynamics that may emerge in SD activities of innovative, technologically complex, luxury product firms. The findings contribute to the SD literature by highlighting how learnings from SD activities could contribute to the dark sides of buyer–supplier relationship. The technologically complex, luxury product contextual characteristics of the study may limit the generalizability of the study findings.
Originality/value
The study provides novel insights into the emergence and management of paradoxes in buyer–supplier relationships, in terms of virtuous and vicious dynamics of developing-leveraging.
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Alfred Bo Shing Lee, Felix T.S. Chan and Xiaodie Pu
The purpose of this paper is to explore the impact of supplier development (SD) on supplier’s performance by sharing implicit knowledge in mentorship under the influence of…
Abstract
Purpose
The purpose of this paper is to explore the impact of supplier development (SD) on supplier’s performance by sharing implicit knowledge in mentorship under the influence of supplier’s organizational culture (OC).
Design/methodology/approach
A survey questionnaire was employed to collect data from 226 employees of participating suppliers after conducting mentorship training at the suppliers’ site. The data were analyzed by the partial least squares structural equation modeling with software SmartPLS Ver. 3.0.
Findings
The empirical analysis indicates that SD by mentorship partially mediates the total effects of OC – power distance and uncertainty avoidance – on performance. It completely mediates the collaborative culture on performance.
Originality/value
This study may confirm that the SD program by mentorship is a viable strategy to enhance the performance of supply chain partners and the selection of suppliers.
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Lei Zhu, Wanyi Chen and Qianwen Zheng
Emerging markets are characterized by weak institutions and strong relationships, which give rise to different market characteristics in supply chain relationships. This study…
Abstract
Purpose
Emerging markets are characterized by weak institutions and strong relationships, which give rise to different market characteristics in supply chain relationships. This study investigates the impact of customer concentration on suppliers' real earnings management.
Design/methodology/approach
Based on China's relationship-based transaction, this study selects 2007–2019 Shenzhen and Shanghai Stock Exchange A-share manufacturing listed companies as the research samples. The empirical analysis is derived from the ordinary least square regression model with industry and year fixed effects, and cross-sectional analysis is used for further analysis.
Findings
It is found that the higher the degree of customer concentration, the more likely a company is to engage in real earnings management mainly through discretionary expenses instead of accrual-based earnings management. Further research shows that when suppliers provide customers with higher commercial credit and make more relationship-specific investments, and when major customers are also major suppliers, the effect of customer concentration on real earnings management is more significant. It can be seen from the results that high customer concentration is beneficial for suppliers to cooperate with major customers in emerging markets.
Originality/value
This research expands the relationship between customer relationship-based transaction and earnings management from the perspective of collaboration. These conclusions are of great significance for market regulators to reform information disclosure related to customers and for participants to pay attention to the composition of major customers of the company.
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Bader Khamis Al Nuaimi, Mehmood Khan and Mian Ajmal
Despite making significant strides in transforming its environmental outlook over the past few years and promoting sustainable procurement (SP) in the public sector, the United…
Abstract
Purpose
Despite making significant strides in transforming its environmental outlook over the past few years and promoting sustainable procurement (SP) in the public sector, the United Arab Emirates (UAE) is still facing serious challenges in moving up the global sustainability ranks. Thus, this study aims to assess and prioritize critical factors, including cost, organization, innovation capability, stakeholder, culture and market-related factors, and their respective sub-factors for the implementation of SP, and come up with recommendations.
Design/methodology/approach
This study uses the analytical hierarchy process model to prioritize the main factors and sub-factors that can critically affect the implementation of SP in the UAE public sector. Data were collected through a survey of 17 procurement experts working in procurement departments in public organizations in Abu Dhabi, UAE.
Findings
The results reveal that cost is the highest ranked critical factor, followed by an organization, whereas innovation capability is the lowest ranked of the main factors. The initial cost of green products and their life-cycle cost are the most prioritized of cost factors. An individual’s commitment to change, top management support and organizational commitment are the highest-ranked sub-factors. Social awareness is the most important sub-factor among culture, and the supplier’s capability is the highest ranked sub-factor in the market.
Social implications
The government should issue a standard practices handbook for SP to be used by public organizations to provide public procurers a clear method for conducting a proper cost–benefit analysis to evaluate and decide on sustainable purchases that fit the economy and society and meet the national sustainability agenda. Furthermore, additional attention needs to be paid to cultural factors such as social and environmental awareness by policymakers to succeed in achieving SP. Finally, top management and government officials must reevaluate their own personal values and commitment to sustainability issues as they participate in forming policies, rules, regulations and training programs designed for procurement managers within government organizations.
Originality/value
Although considerable research has been conducted on this topic, this study is unique in its presentation of a critical understanding of which factors and sub-factors are likely to significantly affect SP implementation in the UAE, which shall provide the relevant researchers and practitioners with the necessary knowledge to be ready for the changes that may lie ahead.
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Davide Aloini, Riccardo Dulmin, Valeria Mininno and Pierluigi Zerbino
This paper aims to model a decision support system (DSS) that could overcome the oversimplified, subjective, compensatory decision logic of extant purchasing portfolio models…
Abstract
Purpose
This paper aims to model a decision support system (DSS) that could overcome the oversimplified, subjective, compensatory decision logic of extant purchasing portfolio models (PPMs) by leveraging the firms’ procurement-related knowledge base.
Design/methodology/approach
The DSS was developed through a fuzzy-based approach, whose design and application were framed within a case study in a multinational company.
Findings
The application of the fuzzy-based DSS to a product class suggests investing in the relationship with two specific suppliers and to loosen the relationship with a third one.
Research limitations/implications
Exploiting the fuzzy set theory and fostering the elicitation of procurement-related knowledge from the decision-makers, the DSS effectively tackles the concerns about the existing PPMs by including strategic-oriented priorities and contextual constraints in the evaluation.
Practical implications
The recommendations in output from the DSS are feasible, more analytical and easy to interpret, enabling knowledge sharing, group decision processes and better decision-making.
Originality/value
To the best of the authors’ knowledge, this manuscript is the first attempt to effectively integrate traditional PPMs with contextual, strategy-related factors to refine the purchasing directions and make them objective.
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Amelia S. Carr, Hale Kaynak, Janet L. Hartley and Anthony Ross
The purpose of this paper is to extend our understanding of the importance of supplier dependence on the buyer's firm and its relationship to supplier training and supplier…
Abstract
Purpose
The purpose of this paper is to extend our understanding of the importance of supplier dependence on the buyer's firm and its relationship to supplier training and supplier involvement in product development with respect to the supplier's performance.
Design/methodology/approach
A random sample of 231 firms provided the data that were analyzed for this study. Using structural equation modeling, a sub‐set of the sample consisting of 166 manufacturing firms was used to test the five hypothesized relationships in the model.
Findings
The main findings indicate that supplier dependence is a significant contributor to increasing supplier participation in buyer supported training and increasing supplier involvement in product development. Also, supplier training and supplier involvement are significant contributors to the supplier's operational performance.
Research limitations/implications
The model tested in this study used a random sample of US manufacturing firms. Thus, future studies should include a random sample of non‐manufacturing firms and firms outside of the USA. The study explored the buyer's perspective only; a study of suppliers may provide further insights to extend this study. Although the use of supplier training was relatively low, significant relationships were identified.
Practical implications
Based on this research, key suppliers can better understand the relationships among supplier dependence, supplier training, supplier involvement in product development and their effects on supplier's operational performance.
Originality/value
Although supplier development has emerged in previously published studies as a critical factor in improving performance, the role of supplier dependence on the buyer has not been empirically examined. Further, an integrated research model that investigates the relationships among supplier dependence, supplier training, supplier involvement in product development and supplier's operational performance has not been offered.
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Anton Helander and Kristian Möller
The study aims to explore what kind of roles major system suppliers may have for their business customers, what factors may change the supplier's role for the customer during the…
Abstract
Purpose
The study aims to explore what kind of roles major system suppliers may have for their business customers, what factors may change the supplier's role for the customer during the relationship, and to analyze how the system supplier can manage his roles for the customer.
Design/methodology/approach
The paper provides a multi‐company, international case study.
Findings
The study identifies three roles for system suppliers: equipment/material supplier, solution provider, and performance provider. The potential role the supplier may try to achieve is suggested to depend on the knowledge gap between the supplier and the customer, and on the strategies they adopt. The supplier can maintain and extend his role for the customer though carefully coordinated and integrated, proactive actions.
Research limitations/implications
The developed structures on business dynamics need more empirical evidence, especially in terms of longitudinal analyses.
Practical implications
The models give various tools for top executives in industrial companies to develop more interactive and profitable customer relationships.
Originality/value
The developed frameworks provide an articulated theory of the creation and implementation of the system supplier's business strategy.
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Pilar Arroyo‐López, Elsebeth Holmen and Luitzen de Boer
The purpose of this paper is to evaluate the effects of supplier development programs on the short‐term performance of suppliers and the more long‐term development of their…
Abstract
Purpose
The purpose of this paper is to evaluate the effects of supplier development programs on the short‐term performance of suppliers and the more long‐term development of their capabilities given the relational learning context of the dyad.
Design/methodology/approach
Data were collected through a survey of strategic suppliers from original equipment manufacturers of the automotive industry located in Mexico.
Findings
Results suggest that basic and widely used forms of supplier development hardly lead to improved operational and financial performance of suppliers. More demanding and less frequently used forms of supplier development may lead to improved supplier performance given the suppliers have sufficient absorptive capacity and the presence of an adequate collaborative and relational learning context.
Research limitations/implications
Only suppliers of firms in the automotive industry were surveyed; participant suppliers were referred by buying firms operating in Mexico.
Practical implications
When designing supplier development activities, buying firms need to take into consideration that high involvement and investment on supplier development activities is required when their goal is to improve the supplier base.
Social implications
Governments organizing supplier development programs should consider the importance of promoting knowledge transfer activities above evaluation and feedback to assure the success of their efforts to develop the national supply industry.
Originality/value
The value of supplier development programs is explored in this paper, taking into account the efforts of the buying firms to transfer knowledge and the moderating effect of the relational and learning context. Relevant recommendations for the design of such programs to buyers, suppliers and government are discussed.
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Sarang Joshi, Manoj Kharat, Rakesh Raut, Sachin Kamble and Sheetal Kamble
The purpose of this paper is to examine the relationships between supplier development practices (SDPs) and supplier-buyer relationship practices from the supplier’s perspective…
Abstract
Purpose
The purpose of this paper is to examine the relationships between supplier development practices (SDPs) and supplier-buyer relationship practices from the supplier’s perspective (SBRSP), and seek to understand how specific SDPs may impact a buyer’s operational performance as well as supplier-buyer relationship practices.
Design/methodology/approach
The authors conducted a survey of 512 respondents from the different manufacturing firms in India and applied structural equation modelling to test a structural model that proposes the impacts of various efforts of SDPs on a buyer’s performance as well as SBRSP.
Findings
The study concludes that SDPs and SBRSP together improve the relationship between a buyer and supplier, and this improved relationship leads to competitive advantages (CAs) followed by profitability. Results indicate that supplier perspective of buyer-supplier relationship can be improved under the condition of SDPs and SBRSP together. SDPs are driven by productive measure and competitive pressure, whereas customer uncertainty is found to be statistically insignificant.
Research limitations/implications
The study was carried out in North Maharashtra Industrial Zone of India, where the auto sector and machine/components manufacturing firms have been established for a considerable period of time. Results of the study are limited to manufacturing organizations predominantly focussing on the automobile sector and machine/components manufacturing firms.
Practical implications
This study provides significant insights into the specific impact of various SDPs and SBRSP for both academics and practitioners. SDPs along with SBRSP practices lead to improvement in the relationship leading to CAs. SBRSP suggests that trust, long-term commitments and the supplier’s perspective are important practices for relationship improvement.
Originality/value
The current study attempts to identify what are the success factors for the supplier-buyer relationship from the supplier’s perspective and SDPs and how the supplier-buyer relationship can be improved under the condition of SDPs and SBRSP. Hence, the aim is to develop a more thorough understanding of the outcomes of a supplier-buyer relationship improvement from both buyer’s and supplier’s perspective, under the conditions of supplier development to achieve CAs leading to profitability. Furthermore, the study analyses the effect of the improved supplier-buyer relationship for achieving CAs leading to profitability.
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