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Book part
Publication date: 30 December 2004

Glenn Hoetker

Our understanding of Japanese supply relationships comes primarily from studying the automobile industry. This paper identifies three elements of the automobile industry…

Abstract

Our understanding of Japanese supply relationships comes primarily from studying the automobile industry. This paper identifies three elements of the automobile industry that, although generally assumed to be widespread, are largely absent in the notebook computer industry, leading to a different pattern of supply relationships: a sizable pool of external suppliers; the feasibility of shukko and cross-shareholding to strengthen supply relationships; and the adequacy of these means to manage external supply relationships. This finding debunks the myth of a monolithic model of “Japanese-style” supply relationships and illustrates the importance of idiosyncratic elements of an industry’s environment on its supply relationships.

Details

Japanese Firms in Transition: Responding to the Globalization Challenge
Type: Book
ISBN: 978-0-76231-157-6

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Article
Publication date: 13 June 2008

John W. Henke, Ravi Parameswaran and R. Mohan Pisharodi

Manufacturer price reduction pressure on suppliers is an important contributor to helping a manufacturer maintain a strong competitive position by keeping costs low. The…

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2290

Abstract

Purpose

Manufacturer price reduction pressure on suppliers is an important contributor to helping a manufacturer maintain a strong competitive position by keeping costs low. The benefits of trusting supplier working relations also help strengthen a manufacturer's competitive position. The purpose of this paper is to determine if manufacturer price reduction pressure and trusting working relations with the pressured suppliers, typically considered to be mutually exclusive, can co‐exist.

Design/methodology/approach

A structural equation modeling approach was used to analyze data covering 946 production buying situations involving 279 suppliers and six NA automotive OEMs.

Findings

Manufacturer price reduction pressure and trusting working relations with the pressured suppliers, are not mutually exclusive, they can co‐exist.

Research limitations/implications

The research found that it is not the pressure that impacts the manufacturersupplier relations, but rather it is the manner by which the manufacturer goes about pressuring its suppliers that impacts its supplier working relations. The research, however, does not directly address how a manufacturer can achieve both ends simultaneously.

Practical implications

Manufacturers no longer have to choose between exerting price reduction pressures on suppliers or working to achieve trusting relations with suppliers. They can successfully do both. At the same time, suppliers must recognize that these conditions may occur and when applied simultaneously ultimately benefit both parties.

Originality/value

This research adds to the critically under‐researched B2B pricing processes and pricing impact areas, while helping to influence managerial actions, an area in which academic B2B research is considered to be lacking.

Details

Journal of Business & Industrial Marketing, vol. 23 no. 5
Type: Research Article
ISSN: 0885-8624

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Article
Publication date: 21 January 2020

Yuan Huang, Weixi Han and Douglas K. Macbeth

This paper aims to investigate the complexity of collaborations in supply chain networks, particularly the influence of horizontal collaborations (e.g. international joint…

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1340

Abstract

Purpose

This paper aims to investigate the complexity of collaborations in supply chain networks, particularly the influence of horizontal collaborations (e.g. international joint ventures) on vertical collaborations (e.g. suppliermanufacturer partnering relationships).

Design/methodology/approach

A multiple case study including four horizontal collaborations and five vertical collaborations within a supply chain network is presented in the context of the Chinese automotive industry. Data interpretation from interviews is structured by key collaborative activities and collaborative behaviors.

Findings

The analysis highlights a variety of collaborative behaviors under different types of collaboration and their interaction. The complexity of collaboration is revealed in a range of dimensions including culture diversity, drivers/facilitators, competitive/collaborative advantages and the engagement of all. Collaboration evolves as the structure of the supply chain changes; the key is to appreciate the existence of cooperation, competition and culture conflicts and to manage the trade-offs.

Research limitations/implications

A window of opportunity is presented for future research to investigate the complexity of supply chain collaboration in a wider industrial or geographical context, including statistical validation and comparative analysis.

Practical implications

A contingent view on supply chain collaboration is promoted to practitioners (e.g. international supply chain managers), where collaborative activities should be aligned with the motive and type of business relationships which may change as collaboration develops.

Originality/value

A rare empirical study captures the complexity of supply chain collaboration including the interaction between different forms. A dynamic collaboration approach recognizes the changing process, varying cooperation behaviors as well as characteristics of partners which have not been sufficiently reflected in the literature.

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Article
Publication date: 8 May 2019

Artur Swierczek

This study aims to investigate the link between manufacturer relational embeddedness, manufacturer influence and supplier-customer relational embeddedness and their…

Abstract

Purpose

This study aims to investigate the link between manufacturer relational embeddedness, manufacturer influence and supplier-customer relational embeddedness and their resulting impact on the network rent.

Design/methodology/approach

Leveraging the theoretical lens of social exchange theory and the relational view and utilizing the survey data derived from the transitional triadic supply chains, the authors used multiple regression analysis and the partial least squares (PLS) path model. The regression analysis with interaction effects is used to indicate the network rent, while the PLS path model is applied to investigate the link between manufacturer relational embeddedness, manufacturer influence and supplier-customer relational embeddedness and their subsequent impact on the network rent.

Findings

The authors empirically establish that manufacturer relational embeddedness, as a higher-order factor, can comprise both upstream and downstream relational embeddedness. The research also demonstrates that manufacturer relational embeddedness significantly contributes to the manufacturer’s eagerness to form a direct link between the supplier and the customer, and the manufacturers report a significant ability to affect this relationship. Likewise, the study shows that supplier-customer relational embeddedness significantly and positively affects the network rent. In addition, the study implies that supplier-customer relational embeddedness is a mediator between manufacturer influence and the network rent, while manufacturer influence is a suppressor variable, which increases the negative relationship between manufacturer relational embeddedness and supplier-customer relational embeddedness.

Research limitations/implications

The research makes three key contributions. First, this study, as one of very few, simultaneously embraces context, intervention, mechanism and outcome, while investigating the role of manufacturer (its relational embeddedness and influence) in promoting supplier-customer relational embeddedness, and its resulting effect on the network rent. Further on, to the best of the authors’ knowledge, this is the first empirically based study that demonstrates to what extent the manufacturer is capable of fostering supplier-customer relational embeddedness, thus favoring the transposition from the intransitive into the transitive triadic supply chains. Finally, to date, the concept of network rent has been mostly conceptualized as the theoretical construct with no empirical evidence. This research offers guidance for manufacturers in managing the relationships between the supplier and the customer to yield the highest network rent.

Originality/value

This study provides a novel approach to investigating the role of manufacturer and relational embeddedness in yielding the network rent in the transitional triadic supply chains.

Details

Supply Chain Management: An International Journal, vol. 24 no. 4
Type: Research Article
ISSN: 1359-8546

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Article
Publication date: 11 January 2008

Phallapa Petison and Lalit M. Johri

The purpose of this paper is to analyze the nature and the evolution of manufacturersupplier relationships in Thailand's automobile industry and to identify the factors…

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3466

Abstract

Purpose

The purpose of this paper is to analyze the nature and the evolution of manufacturersupplier relationships in Thailand's automobile industry and to identify the factors that influence the evolution of these relationships.

Design/methodology/approach

The study is based on case research method involving in‐depth interviews with 120 local and expatriates of 7 companies and their 14 suppliers.

Findings

In Thailand, the manufacturersupplier relationship starts out as a market‐exchange‐type relationship, and then gradually moves to a partnering type. The stages in evolution involve constant efforts on the part of foreign manufacturers to develop the suppliers by offering resources, training, feedback and solutions. The supplier capability building programs, bridging of cultural differences and formation of trust provides the basis for enduring partnerships. These partnerships are symbiotic relationships in which manufacturers benefit from suppliers' knowledge of local production and market factors and suppliers benefit from manufacturer's technical and managerial support. Additionally, closer collaboration with suppliers helps to prevent the leakage of business intelligence and theft of intellectual property and to prevent suppliers from working with competitors, thus allowing manufacturers to devote undivided attention to smooth supply of parts without any shortage.

Practical implications

In emerging markets, the local suppliers play key role in the success of foreign automobile companies. However, the local suppliers need technical and managerial support from manufacturers. The process of building a network of competent local suppliers consumes time and resources, therefore manufacturers should take a long‐term view of the market. The undeniable importance of overcoming cultural differences and building trust is the hallmark of successful partnerships.

Originality/value

The paper highlights the importance and process of developing local suppliers in emerging markets using Thai automobile industry as an example.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 20 no. 1
Type: Research Article
ISSN: 1355-5855

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Article
Publication date: 1 September 2005

Marek Szwejczewski, Fred Lemke and Keith Goffin

Effective management of suppliers is one of the ways manufacturing companies can improve their performance. Typically, it has been argued in the literature that close…

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4432

Abstract

Purpose

Effective management of suppliers is one of the ways manufacturing companies can improve their performance. Typically, it has been argued in the literature that close relationships with suppliers should be developed, in contrast to the traditional price‐driven transactional relationships. However, there has been relatively little empirical research on how supplier management is applied.

Design/methodology/approach

This paper presents research probing how manufacturers manage their suppliers and takes a sample from Germany – which has a large manufacturing sector. In‐depth interviews with purchasing managers were used to understand whether relationships with suppliers were being utilised.

Findings

The analysis of the data indicates that a significant portion of the companies surveyed had experienced a change in their relationship with suppliers in the last few years. In the main, relationships had become closer and the use of partnerships was in evidence.

Practical implications

The research results have implications for German manufacturing companies, as they indicate the potential for improving performance through the greater adoption of best practices in the area of supplier management. The research results indicate the need for German manufacturers to adopt leading‐edge practices in the area of supplier management.

Originality/value

Although exploratory in nature, the investigation demonstrated the need for researchers to better understand the range of relationships in a typical manufacturer's supplier base.

Details

International Journal of Operations & Production Management, vol. 25 no. 9
Type: Research Article
ISSN: 0144-3577

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Book part
Publication date: 8 April 2005

Fredrik von Corswant

This paper deals with the organizing of interactive product development. Developing products in interaction between firms may provide benefits in terms of specialization…

Abstract

This paper deals with the organizing of interactive product development. Developing products in interaction between firms may provide benefits in terms of specialization, increased innovation, and possibilities to perform development activities in parallel. However, the differentiation of product development among a number of firms also implies that various dependencies need to be dealt with across firm boundaries. How dependencies may be dealt with across firms is related to how product development is organized. The purpose of the paper is to explore dependencies and how interactive product development may be organized with regard to these dependencies.

The analytical framework is based on the industrial network approach, and deals with the development of products in terms of adaptation and combination of heterogeneous resources. There are dependencies between resources, that is, they are embedded, implying that no resource can be developed in isolation. The characteristics of and dependencies related to four main categories of resources (products, production facilities, business units and business relationships) provide a basis for analyzing the organizing of interactive product development.

Three in-depth case studies are used to explore the organizing of interactive product development with regard to dependencies. The first two cases are based on the development of the electrical system and the seats for Volvo’s large car platform (P2), performed in interaction with Delphi and Lear respectively. The third case is based on the interaction between Scania and Dayco/DFC Tech for the development of various pipes and hoses for a new truck model.

The analysis is focused on what different dependencies the firms considered and dealt with, and how product development was organized with regard to these dependencies. It is concluded that there is a complex and dynamic pattern of dependencies that reaches far beyond the developed product as well as beyond individual business units. To deal with these dependencies, development may be organized in teams where several business units are represented. This enables interaction between different business units’ resource collections, which is important for resource adaptation as well as for innovation. The delimiting and relating functions of the team boundary are elaborated upon and it is argued that also teams may be regarded as actors. It is also concluded that a modular product structure may entail a modular organization with regard to the teams, though, interaction between business units and teams is needed. A strong connection between the technical structure and the organizational structure is identified and it is concluded that policies regarding the technical structure (e.g. concerning “carry-over”) cannot be separated from the management of the organizational structure (e.g. the supplier structure). The organizing of product development is in itself a complex and dynamic task that needs to be subject to interaction between business units.

Details

Managing Product Innovation
Type: Book
ISBN: 978-1-84950-311-2

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Article
Publication date: 25 September 2019

Yogesh Mungra and Prabhat Kumar Yadav

This study aims to investigate the effect of commitment and trust on satisfaction and sequential effect of satisfaction on relational outcomes (i.e. performance and…

Abstract

Purpose

This study aims to investigate the effect of commitment and trust on satisfaction and sequential effect of satisfaction on relational outcomes (i.e. performance and governance cost) in a manufacturersupplier relationship. Authors of this paper explore the relationship quality parameters such as trust, commitment and satisfaction and its effect on improving the performance and reducing the governance cost between the partners, as well as the effect of relationship duration on the antecedents and relational outcomes.

Design/methodology/approach

Based on the conceptual framework developed by authors, hypotheses were formulated, to test the effect of trust and commitment to performance and governance cost through the mediating effect of satisfaction in the manufacturersupplier relationship. Data were collected from 196 manufacturers from the western part of India, through a structured questionnaire, and collected quantitative data were analyzed through structural equation modeling.

Findings

The analysis of the sample of 196 manufacturers suggests a positive relationship between satisfaction and commitment and between satisfaction and trust. The study suggests that increased satisfaction lowers governance cost as well as suggests a positive relationship between satisfaction and performance in a manufacturersupplier relationship. As a relationship grows in an early stage, relationship performance improves, and as the relationship matures, the relationship performance diminishes.

Practical implications

Findings suggest that managers in business and industrial markets shall focus on commitment in the relationship rather than just trust that leads to satisfaction. It also suggests that a higher level of satisfaction enhances the performance and reduces the governance cost in a manufacturersupplier relationship.

Originality/value

This research makes four contributions: first, it enquires the direct impact of trust and commitment to a manufacturer’s satisfaction; second, it investigates the indirect impact of trust on a manufacturer’s satisfaction through commitment in the relationship; third, it investigates the mediating satisfaction between trust-commitment and relationship outcomes (relationship performance and governance cost); fourth, the research shows the impact of relationship duration regarding the relational outcomes and the dimensions of relationship quality into a short-term and long-term relationship. It also uniquely suggests that the presence of commitment has a catalytic effect on satisfaction. Research offers managerial implication to increase the performance and to reduce the governance cost in the relationship.

Details

Journal of Business & Industrial Marketing, vol. 35 no. 2
Type: Research Article
ISSN: 0885-8624

Keywords

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Article
Publication date: 6 June 2016

Qinfang Hu, S. Fiona Chan, Guangling Zhang and Zhilin Yang

Grounded in agency and clan theories, this study aims to examine how, when and why joint liability works as a control mechanism to reduce opportunism among tea supplier

Abstract

Purpose

Grounded in agency and clan theories, this study aims to examine how, when and why joint liability works as a control mechanism to reduce opportunism among tea supplier groups in China.

Design/methodology/approach

Survey data from 82 supplier groups (three respondents per group) were collected.

Findings

Joint liability is related positively to peer monitoring (as mediator) and negatively to opportunism, whereas the mediated relationship is moderated positively by group leaders’ perceived legitimate authority and negatively by reciprocity and shared norms.

Social implications

Opportunism is operationalized as the use of illegal pesticides, the violation of manufacturersupplier contractual agreements and joint liability, as suppliers’ liability of having the whole group’s seasonal production is rejected by the manufacturer if a single act of opportunism is detected in the group.

Originality/value

Our study demonstrates how and under what conditions the joint-liability mechanism is linked with the reduction of multi-suppliers’ opportunism. We pave the way for future applications of the control mechanism to fields related to inter-organizational governance. Most importantly, we apply Ouchi’s clan theory (1979, 1980) to conceptualize manufacturersupplier and suppliersupplier relationships in China and provide first-hand evidence to validate its applicability and generalizability to the context. The study also offers insights on network influences in inter-organizational relationships (Gu et al., 2010; Wathne and Heide, 2004) and confirms the important roles of network factors in inter-organizational relationships. In particular, peer monitoring operates as a mediator and normative factors operate as facilitators (moderators) for the joint liability to work as a mechanism to control opportunism in this relationship context.

Details

Journal of Business & Industrial Marketing, vol. 31 no. 5
Type: Research Article
ISSN: 0885-8624

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Article
Publication date: 1 January 2008

Sungmin Ryu, Soonhong Min and Nobuhide Zushi

The purpose of this paper is to verify the moderating role of trust in the relationships between environmental uncertainty and a manufacturer's propensity for vertical…

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3110

Abstract

Purpose

The purpose of this paper is to verify the moderating role of trust in the relationships between environmental uncertainty and a manufacturer's propensity for vertical control over its supplier, and between environmental uncertainty and the manufacturer's satisfaction with the supplier performance. It also confirms a threshold effect of trust, i.e. the moderating role of trust is present up until a threshold value of trust is reached.

Design/methodology/approach

Survey research was conducted to collect data from manufacturers; structural equation modeling was used to purify measurement scales, and multiple regression was conducted to test the hypotheses.

Findings

This study confirmed that a manufacturer's perception of a supplier's trustworthy behavior weakens the justification for a higher degree of vertical control over its supplier's key decisions. Trust also reduces the manufacturer's discontent with its supplier's performance.

Research limitations/implications

Traditional transaction cost analysis (TCA models) put too much emphasis on rationality and seldom consider the complexity of inter‐firm control in social contexts. This study demonstrates that considering trust in TCA supplements the explanations offered by TCA on buyer‐seller behaviors.

Practical implications

Manufacturers should determine the level of needed vertical control after assessing the level of inter‐firm trust to avoid unnecessary vertical control, which is as costly as, if not costlier than, supplier opportunism. Manufacturers should also realize the importance of formalizing continuous, two‐way information flow to further reduce supply market uncertainty, which cannot be done by trust beyond the threshold value.

Originality/value

This study considers both social embeddedness and TCA to enhance the explanatory power of the TCA framework. Additionally, this study shows that the moderating effect of trust is statistically significant at lower levels while the effect fades away at higher levels of trust.

Details

Journal of Business & Industrial Marketing, vol. 23 no. 1
Type: Research Article
ISSN: 0885-8624

Keywords

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