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Open Access
Article
Publication date: 12 March 2024

Grażyna Kędzia

I aimed to obtain a deeper insight into the link between supplier involvement in product development (SIPD), supplier relationship resilience and company performance.

Abstract

Purpose

I aimed to obtain a deeper insight into the link between supplier involvement in product development (SIPD), supplier relationship resilience and company performance.

Design/methodology/approach

To collect data, a survey among 500 Polish manufacturing companies was conducted. I used quantitative methods (structural equation modeling) to test several research hypotheses referring to a single supplier–customer relationship. Thanks to the use of multi-construct measurement of SIPD and supplier relationship resilience, the study provides detailed research results on the topic.

Findings

Collaborative practices implemented during SIPD increase procurement flexibility and decrease redundancy in the relationship with the involved supplier. Communication during SIPD increases supplier flexibility and procurement flexibility. Increased supplier flexibility and increased procurement flexibility in the relationship with the involved supplier as well as collaborative practices during SIPD positively impact company performance. I confirmed the indirect effect between communication during SIPD and company performance when the mediators are supplier flexibility and procurement flexibility. Decreased redundancy in relationship with involved supplier does not impact company performance.

Practical implications

Supply chain managers need to rethink SIPD practice to effectively ensure supply chain resilience (SCRES), especially in the face of the contemporary global crisis and black swans affecting the supplier base. My article provides important managerial insights into drivers of SCRES and company performance.

Originality/value

To the best of my knowledge, this research is among the first to conclude that SIPD does not have an unequivocally positive or direct impact on supplier relationship resilience. The research fills the gap by analyzing the impact of SIPD on two main SCRES elements. The study examines supplier relationship resilience, understood as flexibility and redundancy elements, in a single supplier–buyer relationship perspective. Thus, the presented considerations go beyond the traditional understanding of flexibility and redundancy in supplier relationship management, that is through the prism of double or multi sourcing and having back up-suppliers.

Details

Central European Management Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2658-0845

Keywords

Open Access
Article
Publication date: 17 November 2023

Matteo Dominidiato, Simone Guercini, Matilde Milanesi and Annalisa Tunisini

This paper aims to investigate sustainability-led innovation, focusing on the interplay between product and process innovation for sustainability goals and the underlying…

1011

Abstract

Purpose

This paper aims to investigate sustainability-led innovation, focusing on the interplay between product and process innovation for sustainability goals and the underlying supplier–customer relationships. Thus, the paper delves into sustainability-led innovation and how it affects supplier–customer relationships, and vice versa, thus providing a twofold perspective.

Design/methodology/approach

The textile industry is the empirical context of this study, which is exploratory research based on in-depth, semi-structured interviews with entrepreneurs, managers and experts in the textile industry.

Findings

In the textile industry, sustainability-led product innovation concerns mainly product durability and performance, product recyclability and the use of waste for new product development. Process innovation deals with circular economy, traceability and water and chemical use minimization. The paper also shows how sustainability-led innovation is implemented in more technical terms and regarding supplier–customer relationships.

Originality/value

The paper adopts an original perspective on how processes take place in the relationships between suppliers and customers, where there is no dominance of one actor, but innovation emerges from interdependence and interaction. Such perspective allows to provide an in-depth analysis of the supplier–customer relationships and underlying dynamics that affect sustainability-led innovation; moreover, the authors study how such innovation impacts supplier–customer relationships and the underlying relational dynamics. The value of the paper also stands in delivering a real representation of the innovation processes grounded in the textile industry.

Details

Journal of Business & Industrial Marketing, vol. 39 no. 13
Type: Research Article
ISSN: 0885-8624

Keywords

Open Access
Article
Publication date: 26 April 2023

Kim Janssens, Cees J. Gelderman and Jordy Petersen

The main purpose of this research is exploring the tipping points for a radical shift in supplier (dis)satisfaction. This study identifies triggers and links them to consequences…

Abstract

Purpose

The main purpose of this research is exploring the tipping points for a radical shift in supplier (dis)satisfaction. This study identifies triggers and links them to consequences for the buyer–supplier relationship.

Design/methodology/approach

The Critical Incident Technique (CIT) was used to interview Dutch supplier representatives in the infrastructure sector, resulting in rich descriptions of 29 critical incidents, extracting first-hand information.

Findings

Safety issues, technical disputes and recruitment of supplier’s technical staff have been identified as tipping points for suppliers to become dissatisfied. Implementing performance-based contracting is another critical incident that caused irritation and disappointment. On a more operational level, dissatisfaction was provoked by tender errors and price discussions with the buyer. This study also identified tipping points by which dissatisfied suppliers abruptly turned into satisfied suppliers. The effect of a solution-oriented buyer intervention appears to be most powerful if this behaviour transcends prior expectations.

Practical implications

Consequences of misunderstandings and discussion between supplier and buyer may be manageable or repairable, depending on the causes and triggers that influenced a supplier’s dissatisfaction. An early warning system could prove its worth, so that buyers are not faced with unpleasant surprises.

Originality/value

Despite the growing number of studies, processes of how antecedents lead to supplier (dis)satisfaction are not well understood. Antecedents are predominantly investigated by cross-sectional survey data, giving little insights into micro-processes and actual interaction between buyers and suppliers. Although CIT has been applied in many disciplines, the technique is hardly used within the context of purchasing and supply management research.

Details

Journal of Business & Industrial Marketing, vol. 38 no. 13
Type: Research Article
ISSN: 0885-8624

Keywords

Open Access
Article
Publication date: 20 July 2022

Carla Cleri Ferreira and Frida Lind

The purpose of this paper is to characterize the interfaces between manufacturing companies and the Internet of Things (IoT) suppliers involved in their digital servitization.

1660

Abstract

Purpose

The purpose of this paper is to characterize the interfaces between manufacturing companies and the Internet of Things (IoT) suppliers involved in their digital servitization.

Design/methodology/approach

This paper builds on an explorative case study of a manufacturing firm and its IoT suppliers. This paper relies on the Industrial Network Approach to study interfaces between buying firms and their suppliers.

Findings

This paper identifies three distinct types of supplier interfaces: connected, digital and digital-physical. They all contain technical resource interfaces with additional organizational and/or technical complexities that need to be managed. Connectivity, an Agile approach to software development and strong technical dependence emerged as key factors that impact the interactions between manufacturing firms and IoT suppliers and how their resources are combined.

Practical implications

This paper offers managerial implications regarding the importance of internal organization (such as appropriate cross-functional teams) to manage the dynamics of collaborations required by digital technologies, maintain interactions with IoT suppliers and identify and manage interdependences between IoT suppliers. Building close relationships with suppliers of crucial infrastructure (e.g. IoT cloud platform and data security systems) can also be beneficial for manufacturing firms to reduce risks. Finally, attention should be given to IoT technology strategy, which impacts both digital and digital-physical supplier interfaces.

Originality/value

In digital servitization, manufacturing firms are heavily reliant on external resources for IoT technology. Despite this, few studies have investigated the characteristics of their interfaces with IoT suppliers, how these can be managed and how resources are combined.

Details

Journal of Business & Industrial Marketing, vol. 38 no. 6
Type: Research Article
ISSN: 0885-8624

Keywords

Open Access
Article
Publication date: 19 May 2023

Lars-Erik Gadde and Håkan Håkansson

In today’s business settings, most firms strive to closely integrate their resources and activities with those of their business partners. However, these linkages tend to create…

1434

Abstract

Purpose

In today’s business settings, most firms strive to closely integrate their resources and activities with those of their business partners. However, these linkages tend to create lock-in effects when changes are needed. In such situations, firms need to generate new space for action. The purpose of this paper is twofold: analysis of potential action spaces for restructuring; and examination of how action spaces can be exploited and the consequences accompanying this implementation.

Design/methodology/approach

Network dynamics originate from changes in the network interdependencies. This paper is focused on the role of the three dual connections – actors–activities, actors–resources and activities–resources, identified as network vectors. In the framing of the study, these network vectors are combined with managerial action expressed in terms of networking and network outcome. This framework is then used for the analysis of major restructuring of the car industries in the USA and Europe at the end of the 1900s.

Findings

This study shows that the restructuring of the car industry can be explained by modifications in the three network vectors. Managerial action through changes of the vector features generated new action space contributing to the transition of the automotive network. The key to successful exploitation of action space was interaction – with individual business partners, in triadic constellations, as well as on the network level.

Originality/value

This paper presents a new view of network dynamics by relying on the three network vectors. These concepts were developed in the early 1990s. This far, however, they have been used only to a limited extent.

Details

Journal of Business & Industrial Marketing, vol. 38 no. 13
Type: Research Article
ISSN: 0885-8624

Keywords

Open Access
Article
Publication date: 9 February 2024

Thomas Koerber and Holger Schiele

This study aims to examine decision factors for global sourcing, differentiated into transcontinental and continental sourcing to obtain insight into locational aspects of…

Abstract

Purpose

This study aims to examine decision factors for global sourcing, differentiated into transcontinental and continental sourcing to obtain insight into locational aspects of sourcing decisions and global trends. This study analyzed various country perceptions to reveal their influence on sourcing decisions. The country of origin (COO) theory explains why certain country perceptions and images influence purchasing experts in their selection of suppliers.

Design/methodology/approach

This study used a two-study approach. In Study 1, the authors conducted discrete choice card experiments with 71 purchasing experts located in Europe and the USA to examine the importance of essential decision factors for global sourcing. Given the clear evidence that location is a factor in sourcing decisions, in Study 2 the authors investigated purchasers’ perceptions and images of countries, adding country ranking experiments on various perceived characteristics such as quality, price and technology.

Findings

Study 1 provides evidence that the purchasers’ personal relationship with the supplier plays a decisive role in the supplier selection process. While product quality and location impact sourcing decisions, the attraction of the buying company and cultural barriers are less significant. Interestingly, however, these factors seem as important as price to respondents. This implies that a strong relationship with suppliers and good quality products are essential aspects of a reliable and robust supply chain in the post-COVID-19 era. Examining the locational aspect in detail, Study 2 linked the choice card experiments with country ranking experiments. In this study, the authors found that purchasing experts consider that transcontinental countries such as Japan and China offer significant advantages in terms of price and technology. China has enhanced its quality, which is recognizable in the country ranking experiments. Therefore, decisions on global sourcing are not just based on such high-impact factors as price and availability; country perceptions are also influential. Additionally, the significance of the locational aspect could be linked to certain country images of transcontinental suppliers, as the COO theory describes.

Originality/value

The new approach divides global sourcing into transcontinental and European sourcing to evaluate special decision factors and link these factors to the locational aspect of sourcing decisions. To deepen the clear evidence for the locational aspect and investigate the possible influence of country perceptions, the authors applied the COO theory. This approach enabled authors to show the strong influence of country perception on purchasing departments, which is represented by the locational effect. Hence, the success of transcontinental countries relies not only on factors such as their availability but also on the purchasers’ positive perceptions of these countries in terms of technology and price.

Details

Journal of Business & Industrial Marketing, vol. 39 no. 13
Type: Research Article
ISSN: 0885-8624

Keywords

Open Access
Article
Publication date: 13 October 2023

Roland Hellberg

A deteriorating security situation and an increased need for defence equipment calls for new forms of collaboration between Armed Forces and the defence industry. This paper aims…

1134

Abstract

Purpose

A deteriorating security situation and an increased need for defence equipment calls for new forms of collaboration between Armed Forces and the defence industry. This paper aims to investigate the ways in which the accelerating demand for increased security of supply of equipment and supplies to the Armed Forces requires adaptability in the procurement process that is governed by laws on public procurement (PP).

Design/methodology/approach

This paper is based on a review of current literature as well as empirical data obtained through interviews with representatives from the Swedish Defence Materiel Administration and the Swedish defence industry.

Findings

Collaboration with the globalized defence industry requires new approaches, where the PP rules make procurement of a safe supply of defence equipment difficult.

Research limitations/implications

The study's empirical data and findings are based on the Swedish context. In order to draw more general conclusions in a defence context, the study should be expanded to cover more nations.

Practical implications

The findings will enable the defence industry and the procurement authorizations to better understand the requirements of Armed Forces, and how to cooperate under applicable legal and regulatory requirements.

Originality/value

The paper extends the extant body of academic knowledge of the security of supply into the defence sector. It serves as a first step towards articulating a call for new approaches to collaboration in defence supply chains.

Details

Journal of Defense Analytics and Logistics, vol. 7 no. 2
Type: Research Article
ISSN: 2399-6439

Keywords

Open Access
Article
Publication date: 18 October 2023

Mohammad Rahiminia, Jafar Razmi, Sareh Shahrabi Farahani and Ali Sabbaghnia

Supplier segmentation provides companies with suitable policies to control each segment, thereby saving time and resources. Sustainability has become a mandatory requirement in…

Abstract

Purpose

Supplier segmentation provides companies with suitable policies to control each segment, thereby saving time and resources. Sustainability has become a mandatory requirement in competitive business environments. This study aims to develop a clustering-based approach to sustainable supplier segmentation.

Design/methodology/approach

The characteristics of the suppliers and the aspects of the purchased items were considered simultaneously. The weights of the sub-criteria were determined using the best-worst method. Then, the K-means clustering algorithm was applied to all company suppliers based on four criteria. The proposed model is applied to a real case study to test the performance of the proposed approach.

Findings

The results prove that supplier segmentation is more efficient when using clustering algorithms, and the best criteria are selected for sustainable supplier segmentation and managing supplier relationships.

Originality/value

This study integrates sustainability considerations into the supplier segmentation problem using a hybrid approach. The proposed sustainable supplier segmentation is a practical tool that eliminates complexity and presents the possibility of convenient execution. The proposed method helps business owners to elevate their sustainable insights.

Details

Modern Supply Chain Research and Applications, vol. 5 no. 3
Type: Research Article
ISSN: 2631-3871

Keywords

Open Access
Article
Publication date: 2 June 2023

Jad EL Bizri, Elina Karttunen and Katrina Lintukangas

This study aims to build on social capital theory (SCT) and its dimensions by examining the role of social capital in the public procurement process and by identifying related…

1386

Abstract

Purpose

This study aims to build on social capital theory (SCT) and its dimensions by examining the role of social capital in the public procurement process and by identifying related contingencies that may influence procurement performance.

Design/methodology/approach

A systematic literature review and a thematic analysis regarding social capital in procurement are conducted. The antecedent–behaviour–consequence (ABC) model is used for illuminating linkages between social capital, contingencies and procurement performance.

Findings

The dimensions of social capital are investigated in the procurement process; however, the extent of social capital role can vary between the phases of the process. It is concluded that the contingencies of social dynamics are linked with social capital and may influence the outcomes and performance of the procurement process.

Practical implications

Social capital can ease interactions between public buyers and private suppliers by contributing to effective tendering, improving social interaction in negotiations and balancing rigidity in contract management, supporting the interests of both parties. The provided framework helps decision makers to comprehend the social dynamics in public procurement.

Social implications

Improving social dynamics and solutions in public procurement.

Originality/value

This study extends social capital research in the field of public procurement and creates a framework connecting social capital and prevailing contingency factors to procurement process performance.

Details

Journal of Public Procurement, vol. 23 no. 2
Type: Research Article
ISSN: 1535-0118

Keywords

Open Access
Article
Publication date: 10 March 2023

Sini Laari, Harri Lorentz, Patrik Jonsson and Roger Lindau

Drawing on information processing theory, the linkage between buffering and bridging and the ability on the part of procurement to resolve demand–supply imbalances is…

2661

Abstract

Purpose

Drawing on information processing theory, the linkage between buffering and bridging and the ability on the part of procurement to resolve demand–supply imbalances is investigated, as well as contexts in which these strategies may be particularly useful or detrimental. Buffering may be achieved through demand change or redundancy, while bridging may be achieved by the means of collaboration or monitoring.

Design/methodology/approach

This study employs a hierarchical regression analysis of a survey of 150 Finnish and Swedish procurement and sales and operations planning professionals, each responding from the perspective of their own area of supply responsibility.

Findings

Both the demand change and redundancy varieties of buffering are associated with procurement's ability to resolve demand–supply imbalances without delivery disruptions, but not with cost-efficient resolution. Bridging is associated with the cost-efficient resolution of imbalances: while collaboration offers benefits, monitoring seems to make things worse. Dynamism diminishes, while the co-management of procurement in S&OP improves procurement's ability to resolve demand–supply imbalances. The most potent strategy for tackling problematic contexts appears to be buffering via demand change.

Practical implications

The results highlight the importance of procurement in the S&OP process and suggest tactical measures that can be taken to resolve and reduce the effects of supply and demand imbalances.

Originality/value

The results contribute to the procurement and S&OP literature by increasing knowledge regarding the role and integration of procurement to the crucial process of balancing demand and supply operations.

Details

International Journal of Operations & Production Management, vol. 43 no. 13
Type: Research Article
ISSN: 0144-3577

Keywords

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