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1 – 10 of over 12000
Article
Publication date: 1 December 2002

Judy Zolkiewski and Peter Turnbull

The importance of effective planning and management of an organization’s array of customer and supplier relationships is self‐evident, yet relatively little research has been…

5243

Abstract

The importance of effective planning and management of an organization’s array of customer and supplier relationships is self‐evident, yet relatively little research has been published which develops our academic or managerial understanding of the conceptual and practical problems inherent in this issue. This paper is written from an interaction and network perspective and critically reviews existing customer and supplier portfolio analysis and considers the implications of using such an approach for the management of relationships. The notion of relationship portfolios in the context of network theory is reviewed and the authors suggest that portfolios provide an alternative method of network conceptualization and analysis and that such portfolios may be a key factor in successful relationship management.

Details

Journal of Business & Industrial Marketing, vol. 17 no. 7
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 8 August 2022

Lena L. Kronemeyer, Herbert Kotzab and Martin G. Moehrle

The purpose of this paper is the development of a patent-based supplier portfolio that can be used to evaluate and select suppliers on account of their technological competencies.

Abstract

Purpose

The purpose of this paper is the development of a patent-based supplier portfolio that can be used to evaluate and select suppliers on account of their technological competencies.

Design/methodology/approach

In addition to traditional approaches, the authors develop a supplier portfolio that characterizes suppliers according to the similarity between supplier's and OEM's technological competencies as well as their technological broadness. These variables are measured on the basis of patents, which constitute a valuable source of information in technology-driven industries. Contrary to existing binary measurement approaches, the authors’ portfolio uses semantic analyses to make use of the specific information provided in the patents' texts. The authors test this method in the field of gearings, which is a key driver for the automotive industry.

Findings

The authors identify six generic positions, characterizing specific risks for an OEM to become either technologically dependent or dependent on suppliers' production capacities. For each position the authors develop specific management strategies in face of the aforementioned risks. The approach helps OEMs navigate in the competitive landscape based on the most recent and publicly available information medium.

Originality/value

This work explicitly applies the construct of technological competencies to supplier evaluation and selection on the basis of portfolio approaches. Furthermore, the authors improve the use of patents for supplier evaluation in two respects: First, the authors analyze OEMs and upstream suppliers on an organizational level. Second, the authors utilize advanced semantic analysis to generate variables for the measurement of the criteria mentioned above.

Details

International Journal of Operations & Production Management, vol. 42 no. 11
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 2 May 2017

Maciej Mitrega, Sebastian Forkmann, Ghasem Zaefarian and Stephan C. Henneberg

The purpose of this paper is to propose and empirically investigate the concept of networking capability (NC) for the management of supplier relationships and their dynamics in…

3365

Abstract

Purpose

The purpose of this paper is to propose and empirically investigate the concept of networking capability (NC) for the management of supplier relationships and their dynamics in order to leverage product innovations. NC in the context of supplier relationships is conceptualized based on dynamic capabilities aimed at relationship initiation, relationship development, and relationship ending. Furthermore, the study tests the interaction of NC with relationship proclivity as an organizational feature, and analyzes latent classes of NC affecting product innovation.

Design/methodology/approach

This study brings together prior research on company routines related to inter-firm networking, the dynamic capability approach to strategy, and literature on inter-firm innovation. The study utilizes multiple informant survey data gathered from 156 firms operating in the automotive parts industry in Iran. Data are analyzed with partial least square structural equation modeling, as well as latent class analysis using finite mixture modeling (FIMIX-PLS).

Findings

This research provides evidence for the positive influence of NC with respect to supplier relationships on firm product innovation, as well as overall firm performance. Relationship proclivity is shown to amplify this effect. At the same time, the research illustrates that NC may be applied in different combinations in the context of supplier relationship portfolio management. Two mechanisms are tentatively identified: firms using “static optimization” focus mainly on supplier relationship development capabilities, while those using “dynamic optimization” utilize supplier relationship initiation and ending capabilities.

Research limitations/implications

This research focuses on one setting (i.e. the automotive parts industry in Iran). Further studies need to broaden these findings to other industries and countries, specifically those which show a different cultural make-up from Iran. Furthermore, this research indicates the existence of two distinct mechanisms as to how different aspects of NC impact product innovation. While it is reasonable to identify these mechanisms as networking “strategies,” this study does not clarify whether this represents intended strategies by firms or relates to emerging capability patterns.

Practical implications

The study contributes to managerial knowledge by illustrating the need for a dynamic approach with regard to networking-related routines in supplier relationships in the context of product innovation. This study suggests that managers should devote equal attention to strengthening existing supplier relationships as well as to initiating new supplier relationships (e.g. screening for promising partners and signaling firm’s relationship value to attract new counterparts) and managing non-performing supplier relationships (e.g. by developing routines to exit from those supplier relationships).

Originality/value

The paper contributes to a better understanding of dynamic approaches to networking with suppliers and their impact on product innovation from the perspective of the focal firm. It furthermore provides a fine-grained understanding of different latent classes of firms in terms of how they utilize networking capabilities.

Details

International Journal of Operations & Production Management, vol. 37 no. 5
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 6 February 2007

Carlos Brito and Catarina Roseira

The article aims at contributing to a better understanding of the interdependence between supply management and the strategic position of the buying firm.

1084

Abstract

Purpose

The article aims at contributing to a better understanding of the interdependence between supply management and the strategic position of the buying firm.

Design/methodology/approach

The research follows a qualitative analysis of two cases: Adira, a family‐owned manufacturer of machinery to cut steel, and Vulcano, a manufacturer of instantaneous house gas water‐heaters and boilers.

Findings

The article finds that supply management decisions depend not only on the network position of the buying firm, but also on the network vision of its managers.

Research limitations/implications

The study is based on two contrasting cases. Further research should develop and test the findings by using other cases and methodological approaches more quantitative in nature.

Practical implications

The article has three major practical implications: supply management should integrate three levels of decisions: dyadic, portfolio and network decisions; supply management does not depend solely on firms' strategic positioning and strategies, but also on managers' network theory about the role and capabilities of suppliers; and “no strategy” can also be a strategy.

Originality/value

The study was conducted on the basis of a multi‐dimensional model that integrates three levels of analysis: dyadic, portfolio and network.

Details

Journal of Business & Industrial Marketing, vol. 22 no. 1
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 3 October 2016

Sanjaykumar R. Gangurde and Amol A. Chavan

The purpose of this paper is to reduce impact on profit and supply risk, for strategic part by defining appropriate purchasing strategies using Kraljic portfolio model (KPM…

5010

Abstract

Purpose

The purpose of this paper is to reduce impact on profit and supply risk, for strategic part by defining appropriate purchasing strategies using Kraljic portfolio model (KPM) approach.

Design/methodology/approach

A five-step approach of KPM is used to identify strategic parts. The attributes affecting impact on profit and supply risk are then identified. A structured questionnaire is prepared for each attribute. Likert scale having weights from 1 to 5 is used to select method of measurement for each response. The overall score of attributes for dimensions “supply risk” and “impact on profit” interpret the position of the part, i.e., “strategic part,” “leverage part,” “bottleneck part” or “non-critical part” in the Kraljic matrix. The part having highest impact on profit and supply risk is to be considered as strategic part for defining the purchasing strategies.

Findings

This paper outlines a practical solution to the problem of designing/defining purchasing strategies for development of supplier. Impact on profit is reduced by cost reduction and quality improvement whereas supply risk reduced by improving delivery time and suppliers profile.

Research limitations/implications

The proposed methodology is applied to a boiler industry to identify the strategic parts and focus on strategic suppliers, which are fewer in number but having larger impact on profit and supply risk. The “Body” part of ball valve assembly of the boiler is considered for the study. However, it can be extended for selecting and evaluating of suppliers strategy for other parts of the boiler. Not only boiler industry sector but also other companies also benefit from the results of this study by implementing the purchasing strategies as formulated in the KPM.

Originality/value

The Kraljic matrix has been largely used in many different industries like automobile, manufacturing, construction, oil and gas, etc., as an efficient tool for developing differentiated purchasing strategies. However, its application on parts procured by boiler industry is unknown, as well as the lack of systematical approach on criteria prioritization which is one of the key issues of the methodology. This work explores the output usefulness and its applicability on ball valve assembly projects.

Details

Benchmarking: An International Journal, vol. 23 no. 7
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 13 November 2017

Monique Lynn Murfield and Wendy L. Tate

The purpose of this paper is to examine managerial perspectives in both buyer and supplier firms implementing environmental initiatives in their supply chains, and explore the…

1575

Abstract

Purpose

The purpose of this paper is to examine managerial perspectives in both buyer and supplier firms implementing environmental initiatives in their supply chains, and explore the impact of environmental initiatives on buyer-supplier relationships.

Design/methodology/approach

A qualitative, grounded theory approach is used as the methodological approach to this research, including 15 in-depth interviews with managers from buyer and supplier firms implementing environmental initiatives in their supply chains to gain multiple perspectives of the buyer-supplier relationships.

Findings

The results suggest that implementing environmental initiatives within the supply chain changes the buyer-supplier relationship from transactional to collaborative, shifting from a commodity-focused purchase to a more strategic purchase as environmental initiatives are implemented.

Research limitations/implications

Although both buyer and supplier perspectives were considered, matched dyads were not used; researchers should continue to provide a holistic perspective of the phenomenon with dyadic data. Additionally, the use of a qualitative research approach suggests a lack of generalizability of results, and therefore researchers should further test the propositions.

Practical implications

Implementing environmental initiatives within the supply chain may require different approaches to supply management and development for long-term success. Suppliers should recognize that the capability to implement environmental initiatives with their customers is a differentiator. The nuances involved in managing the implementation of environmental initiatives between firms can be better managed by collaboratively developing metrics specifically related to the environment.

Originality/value

Previous research in environmental supply chain management has examined drivers and barriers of implementing environmental initiatives with suppliers, but fails to address the relationship dynamics involved when implementing environmental initiatives between organizations. This research begins to fill that gap.

Details

The International Journal of Logistics Management, vol. 28 no. 4
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 1 April 1982

M.T. Cunningham

Purchasing operates at the interface between a company and its supply market environment. Its activities are essentially concerned with securing the resource inputs of materials…

Abstract

Purchasing operates at the interface between a company and its supply market environment. Its activities are essentially concerned with securing the resource inputs of materials, components and equipment into the business, and in the selection and handling of suppliers of those inputs. Many earlier studies have described and analysed buying decision‐making from a marketing perspective, in order to predict and influence the eventual sourcing decisions in a manner favourable to the supply company. For example, studies have identified the stages in buying, the roles and influence of individuals on buying decisions and the criteria used by buyers in choosing between alternative sources of supply. This has led to purchasing being viewed as a process in which the focus is primarily upon specific buying episodes or discrete purchasing decisions, such as the choice of new suppliers or the exercise of source loyalty to existing ones. An overall strategic view of the range of purchasing activities from the buyer's perspective has been neglected. Obviously, purchasing is not confined to isolated decisions and short‐term operational episodes. Indeed, recent work in the subject has emphasised that specific buying decisions are better viewed within the context of the overall relationships between buying and selling companies. Each supplier and customer is interested in the other's resources and capabilities. Consequently, the exchange of goods is but one part of a broader exchange of services, information and value systems between the two parties to a transaction. Clearly, buyers and sellers are active participants in the transaction process and are influenced by the actions of the other. Complex relationships develop between individual buyers and marketers in any dyadic interaction but they occur also between the members of the customer's decision‐making unit and a supplier's team of marketing; technical, manufacturing and managerial personnel. This “interaction approach” to industrial purchasing and marketing proposed by the IMP group of researchers, focuses attention upon the influence of four groups of variables on buyer‐seller relationships. First, the parties involved (individuals and organisations); second, the atmosphere surrounding the relationship (co‐operation, trust, exercise of power, dependence); third, the environmental context (market structure, competition), and fourth, the exchange process (the exchange of technological expertise, products, services, information etc).

Details

International Journal of Physical Distribution & Materials Management, vol. 12 no. 4
Type: Research Article
ISSN: 0269-8218

Article
Publication date: 15 June 2018

Jyotirmoyee Bhattacharjya

The purpose of this paper is to explore the egocentric network-based strategies used by upstream firms to ensure their own resilience when the disruptions originate with…

Abstract

Purpose

The purpose of this paper is to explore the egocentric network-based strategies used by upstream firms to ensure their own resilience when the disruptions originate with downstream partners.

Design/methodology/approach

The paper adopts a case study approach as this is well-suited to the investigation of a complex phenomenon from multiple perspectives.

Findings

The study finds that the egocentric networks of upstream firms participating in the supply network of a retailer could ensure their own resilience even after the sudden demise of the downstream entity.

Originality/value

The study addresses the lack of adequate empirical research examining resilience from the perspectives of multiple entities in a supply network. It is also one of the few papers to address resilience from the perspective of upstream players in the context of a disruption originating with downstream partners. The findings suggest that the lack of visibility in relation to the financial health of more powerful downstream partners could be problematic from a supplier’s perspective. It identifies well-developed egocentric networks as being essential for minimizing consequences of limited downstream visibility and the impact on social capital.

Details

International Journal of Physical Distribution & Logistics Management, vol. 48 no. 7
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 1 September 2006

S. Nazli Wasti, M. Kamil Kozan and Ayca Kuman

Using a baseline model of buyer‐supplier relationships, the study aims to identify the types of relationships in the Turkish automotive industry, and to test predictions as to how…

5088

Abstract

Purpose

Using a baseline model of buyer‐supplier relationships, the study aims to identify the types of relationships in the Turkish automotive industry, and to test predictions as to how these relations would differ across contextual, managerial, and social climate variables.

Design/methodology/approach

Questionnaire data from 51 buyers in automaker firms and 72 supplier firms were subjected to K‐means cluster analyses to establish relationship groups in the two samples. Differences across the groups were tested using ANOVA and Scheffé tests.

Findings

Three relationship types (captive supplier, market exchange, and strategic partnership) were identified both in the buyer and supplier data. Significant differences were observed in terms of contextual (product and supplier characteristics), managerial (information exchange and cooperation), and social climate variables (mutual understanding, payoff equity, and satisfaction). Turkish buyers were found to strategically segment their suppliers based on product and supplier characteristics, whereas supplier groups were differentiated along social climate variables.

Research limitations/implications

The Turkish results differ somewhat from the ones for developed countries, which suggests that more work should be conducted in emerging economies. Future research that uses matched pairs of buyers and suppliers may provide in‐depth insights.

Practical implications

The results demonstrated a perception (hence, communication) gap between buyers and suppliers in how they differentiated relationship types. Strategic partnership led to cooperation in both samples, and to satisfaction, mutual understanding, and equity in the supplier sample.

Originality/value

This study used data from both parties, contrasted buyer‐supplier relationships in an emerging market with those in developed markets, and highlighted the effects of the industry's historical evolution on the present state of buyer‐supplier relationships.

Details

International Journal of Operations & Production Management, vol. 26 no. 9
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 3 April 2017

Tibor Mandják, Ágnes Wimmer and François Durrieu

Following industrial network theory, this paper aims to address network behavior from a focal company’s perspective. Special attention is paid to examining the effect of…

5644

Abstract

Purpose

Following industrial network theory, this paper aims to address network behavior from a focal company’s perspective. Special attention is paid to examining the effect of perceptions of the economic crisis on network behavior.

Design/methodology/approach

The study is built on a quantitative analysis of an empirical database of 300 companies based on a survey completed in 2013 in Hungary. A focal company network behavior model was developed and applied to investigate the link between variables (valuable customer relationships, valuable supplier relationships, relationship strategy and relational outcomes) and the effect of managers’ perceptions about the intensity of the crisis. To obtain a deeper understanding of the effect of the crisis, structural modeling methodology was applied during data analysis.

Findings

How crises are perceived has a moderating influence on companies’ network behavior. In a context in which a crisis is strongly perceived, valuable customer relationships are considered more important than valuable supplier relationships; relationship strategy becomes more intensive; and performance is increasingly focused on operations and less on innovation. The main difference in network behavior is found with the management of the supply side. A different level of attention is paid to supplier relationships in a high crisis-perception context than when a crisis is perceived as being less critical.

Research limitations/implications

Results emphasize the importance of perceptions as a key factor in managerial attitudes, behavior and, ultimately, decision-making. This finding merits more attention from both researchers of business relationships and networks.

Practical implications

From a managerial point of view, the results emphasize the existence of potentially new opportunities in network management. The reinforcement of attention to the customer during a period of crisis implies the importance of the customer orientation, but also suggests that firms may have unexploited opportunities and more potential resources on the supplier side.

Originality/value

The paper combines an analysis of network behavior and perceptions of crisis, helping to explain managerial decisions and attitudes. Analysis was undertaken from a focal firms’ perspective and differences were investigated in attitudes concerning both supplier- and customer-side relations. How crises are perceived is a moderating variable of network behavior.

Details

Journal of Business & Industrial Marketing, vol. 32 no. 3
Type: Research Article
ISSN: 0885-8624

Keywords

1 – 10 of over 12000