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The purpose of this paper is to empirically investigate effective management strategies for 14 sources of supply chain uncertainty, with a particular emphasis on…
The purpose of this paper is to empirically investigate effective management strategies for 14 sources of supply chain uncertainty, with a particular emphasis on uncertainties or strategies that involve ethical issues.
Manufacturing strategy theory, underpinned by alignment and contingency theory, is used as the theoretical foundation. Multi-case study data are collected from 12 companies in the Indonesian food industry, including four focal manufacturers, four first-tier suppliers, and four first-tier customers (retailers).
Within the context of appropriately aligned management strategies to address 14 sources of uncertainty, three ethical issues are empirically identified: first, collusion amongst suppliers to ration supplies and increase prices; second, unethical influences on government policy; and third, “abuse” of power by large retailers at the expense of smaller competitors. Joint purchasing is argued to be a key strategy for combatting the first of these ethical issues.
The study is limited to the Indonesian food industry, and so further research is needed in other cultures/contexts.
Management strategies that aim to reduce an uncertainty at its source lead to better overall supply chain performance than strategies that merely cope with uncertainty, which only have an impact on firm-level performance.
The ethical issues identified have implications for fair negotiations between customers and suppliers.
This study is unique in its in-depth case study-based empirical investigation of the management of multiple supply chain uncertainties; and in its discussion of ethical issues in this context.
The legislation in the European Union (EU) regarding contracts to be awarded to third parties allows for a free choice by public agencies between the open and restricted…
The legislation in the European Union (EU) regarding contracts to be awarded to third parties allows for a free choice by public agencies between the open and restricted procedure. Empirical evidence shows a high variance in the preference for one of the procedures exists between countries. This preference may be based on cultural phenomena only. Here we develop a quantitative model to calculate which procedure is the most economic. With insights from this model guidelines are given for an efficient policy regarding the choice for the open or restricted award procedure.
The purpose of this study is to investigate the relationship between psychological climate, catharsis, organizational anomie, psychological wellness and ethical…
The purpose of this study is to investigate the relationship between psychological climate, catharsis, organizational anomie, psychological wellness and ethical procurement behaviour in Ugandaʼs public sector, in order to understand better the conditions that foster or diminish procurement ethics in a developing country. Data for this study were collected from a sample of 1100 respondents out of which 460 usable questionnaires, representing a 42% response rate were received and analyzed. Results reveal that psychological climate, procurement planning and organizational anomie were significant predictors, accounting for 64% of the variance in ethical procurement behaviour. These results have both policy and managerial implications which we present and discuss in this paper.
This paper examines the economic forces which may lead to government-assisted or -facilitated bid-rigging (kansei-dango) in public procurement in Japan, and considers…
This paper examines the economic forces which may lead to government-assisted or -facilitated bid-rigging (kansei-dango) in public procurement in Japan, and considers their implications. A public official may often worry about situations where his/her procurement project will not be successfully implemented. Based on a simplified theoretical treatment and on case studies of kansei-dango, it is argued that the desire to avert the risk of unsuccessful procurement resulting from the "experience goods" status of procured goods and/or services may be one reason for bid-rigging. Based on this understanding of kansei-dango, we discuss some implications for policies to restrain this type of corruption.
An important aspect of UK competition policy is the attempt tomaintain competitive markets by prohibiting restrictive agreements andcartels involving price fixing, market…
An important aspect of UK competition policy is the attempt to maintain competitive markets by prohibiting restrictive agreements and cartels involving price fixing, market sharing, etc., the effect of which is to suppress, limit or distort active rivalry between suppliers. Examines UK policy towards restrictive agreements, alongside similar attempts to control cartels in the European Community. Outlines the regulatory frameworks operating in the UK and EC and emphasizes particular points of interest in the application of policy control by reference to selected restrictive agreement/cartel cases. While the attack on formal “open” collusion has been highly successful, it is clear from the work of the Office of Fair Trading and the European Commission that clandestine (”covert”) collusion between suppliers remains an on‐going problem.
An important aspect of good governance is a well-managed government procurement system. This has a direct impact on the extent and quality of a country's infrastructure…
An important aspect of good governance is a well-managed government procurement system. This has a direct impact on the extent and quality of a country's infrastructure and the effectiveness of its public services. Two key principles underpin a well-managed procurement system: value for money from the goods, services, and public works, which are procured, and fair access to procurement opportunities. Arguably, competition and transparency in the procurement process are necessary conditions for both. Yet despite this, most of the states of Southeast Asia have been reluctant to create an openly competitive and transparent government procurement system. This has been in part reflected in the fact that none them have become signatories to the WTO's Government Procurement Agreement of 1994 with the notable exception of Singapore. This Agreement seeks to promote international access to the government procurement market in goods, services, and public works by mandating open competition and transparent procedures.
This chapter examines the way corruption in the public procurement of goods, services, and public works has been commonplace in Southeast Asian states over many years…
This chapter examines the way corruption in the public procurement of goods, services, and public works has been commonplace in Southeast Asian states over many years (with the exception of Singapore), and considers the measures taken to combat such practices. It also examines why so often those efforts have not been fully effective. Three reasons are given to explain these failings. These are the following: (a) elite capture of the procurement process by influential politicians, business leaders and senior bureaucrats; (b) the informal bureaucracy in the procuring agencies which allowed corrupt practices to be followed; and (c) lack of political will to enforce measures to combat corruption
This paper aims to explore business relationship framework between two companies. In this research, relationship marketing and transaction cost were used as frameworks to…
This paper aims to explore business relationship framework between two companies. In this research, relationship marketing and transaction cost were used as frameworks to analyze business relationship of two different kinds of companies in Indonesia, oil company and hypermarket. Gronroos (1994) defines relationship marketing is establishing, maintaining and enhancing relationships with customers and other partners, at a profit, so that the objectives of the parties involved are met. This is achieved by a mutual exchange and fulfillment of promises. This definition is a key to analyze the relationship of retailer and their supplier. In contrast, Williamson (1980) argued that relationship in business organization is based on their economic interest, and this approach is known as transaction cost approach. In this kind of relationship, business organizations consider cost and benefit of business relationship.
The design of this study is triangulation. Two approaches were used to answer the research questions. A survey involving 204 respondents was conducted. These are companies in Indonesia oil and gas and retail industries. The types of power of those companies were analyzed using descriptive statistic and paired t test. Also, case study was conducted to gain depth information of two companies, with a large number of business partners among the respondents. The design of case study is holistic case study.
The result shows that, in the oil company, the relationship between a company and their supplier is tied on a strict contract. In fact, the relationship of supplier and company in a fuel company based on transaction cost theory. In the retail company, the relationship of supplier and retailer based on trust, commitment and satisfaction. Those three construct are the foundation of relationship marketing. Companies in those two industries tend to use non-coercive power to influence their business partners.
This study analyzes type of business relationship in industries in emerging markets. It also discusses type of influence strategy used by companies to control their business partners to gain mutual benefit.