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1 – 10 of over 2000
Open Access
Article
Publication date: 4 November 2022

Xun Li, Qun Wu, Thomas J. Goldsby and Clyde W. Holsapple

The purpose of this research is to investigate the causal mechanisms that explain the relationship between the long-term buyer–supplier relationship and buyer performance…

1394

Abstract

Purpose

The purpose of this research is to investigate the causal mechanisms that explain the relationship between the long-term buyer–supplier relationship and buyer performance. Building on the growing body of research on social capital in supply chain management (SCM), the authors examine how a buyer achieves superior performance in forming the enduring partnership with a supplier through two different forms of supplier embeddedness: buyer–supplier dyadic embeddedness and supplier external embeddedness.

Design/methodology/approach

The bootstrapping method is utilized in data analysis to examine the mediating effects of the two different forms of supplier embeddedness simultaneously on the linkage between the duration of buyer–supplier relationships and buyer performance outcomes.

Findings

The authors find that the two forms of supplier embeddedness serve as distinct conduits for the buyer to translate the long-term buyer–supplier relationship into performance effectiveness. Notably, dyadic embeddedness only mediates the linkage between the duration of buyer–supplier relationships and buyer economic performance, while supplier external embeddedness solely mediates the linkage between the duration of buyer–supplier relationships and buyer innovation performance.

Originality/value

This study empirically demonstrates that different forms of supplier embeddedness may benefit a buyer differentially when directed at distinct performance goals. If a buyer can leverage both buyer–supplier dyadic embeddedness and supplier external embeddedness, the buyer will overcome value creation limitations of social capital from a single source, obtaining more comprehensive performance benefits sought by developing long-term buyer–supplier relationships.

Details

European Journal of Management Studies, vol. 27 no. 3
Type: Research Article
ISSN: 2183-4172

Keywords

Open Access
Article
Publication date: 25 September 2018

Lara Cristina Francisco de Almeida Fehr and Welington Rocha

This paper aims to discuss the role of open-book accounting (OBA) and trust on buyer–supplier relationship satisfaction. The objective of this paper is to analyze how OBA and…

3795

Abstract

Purpose

This paper aims to discuss the role of open-book accounting (OBA) and trust on buyer–supplier relationship satisfaction. The objective of this paper is to analyze how OBA and trust influence satisfaction on the relationship between suppliers and buyers in the Brazilian automotive sector’s supply chain.

Design/methodology/approach

The research has been developed based on a qualitative strategy, characterized as explanatory. Data gathering has been conducted through document analysis and semi-structured interview, and content analysis has been used for discourse analysis.

Findings

Results show that OBA is unilateral, imposed by the auto manufacturer, representing a selective information process, as suppliers try to protect their information value as far as possible. Trust is partial and cooperation is not spontaneous, both driven by the search for benefits. OBA may yield a positive or a negative outcome with regard to the social and the economic overall satisfaction of suppliers, depending on how the information is used by auto manufacturer.

Originality/value

The main contribution of this article is to provide an understanding of the difficulties of applying the OBA in companies and of the factors that may influence its operation and performance, impacting on satisfaction and continuity of relationships. The paper also contributes with the proposal of a clearer and more objective definition of OBA. Being the intention that new research in this area can be developed from a delimited, clear and objective definition of OBA, allowing better understanding on the subject and comparison among research studies.

Details

RAUSP Management Journal, vol. 53 no. 4
Type: Research Article
ISSN: 2531-0488

Keywords

Open Access
Article
Publication date: 9 October 2019

Chengyong Xiao, Boyana Petkova, Eric Molleman and Taco van der Vaart

Technology uncertainty poses significant challenges to manufacturers, as rapid changes in product and/or process standards and specifications can disrupt the smooth flow of…

6216

Abstract

Purpose

Technology uncertainty poses significant challenges to manufacturers, as rapid changes in product and/or process standards and specifications can disrupt the smooth flow of materials in extended supply chains. Practitioners and researchers alike who take a relational perspective widely regard supplier involvement as a potentially effective strategy to cope with technology uncertainty, as focal manufacturers can tap into their upstream supply networks for complementary resources and capabilities. However, the literature lacks a nuanced understanding of the supplier involvement processes. Specifically, the role of resource dependence for supplier involvement has yet to be systematically understood. To fill this gap, this study aims to combine the relational perspective with the resource-dependence perspective to explore how buyer dependence, supplier dependence and buyer–supplier interdependence influence buyers’ decision-making on tapping into upstream supply networks for coping with technology uncertainty.

Design/methodology/approach

To test the hypotheses, a survey is conducted among Dutch firms with more than 50 employees in the discrete manufacturing industries (ISIC 28-35), resulting in a sample of 125 manufacturers.

Findings

First, there is a significantly positive relationship between technology uncertainty and supplier involvement, giving support to the expectation that buyers are indeed involving their key suppliers in the product/process design and improvement, as a response to technology uncertainty. Second, buyer dependence and interdependence are found to be positively moderating the relationship between technology uncertainty and supplier involvement. In contrast, supplier dependence has a negative moderating effect on the baseline relationship.

Research limitations/implications

The authors contribute to a relational view on buyer–supplier relationships by showing that the validity of this view, in the context of technology uncertainty, is contingent on the resource dependence between buyers and suppliers, and the authors contribute to the supply chain management literature more generally by combining a relational perspective with a resource-dependence perspective.

Practical implications

The findings provide several nuanced insights into the effect of resource dependence (buyer dependence, supplier dependence and interdependence) on supplier involvement for coping with technology uncertainty.

Originality/value

This study contributes to the supply chain management research by going beyond the benefits of supplier involvement and highlights the circumstances under which supplier involvement is likely to occur.

Details

Supply Chain Management: An International Journal, vol. 24 no. 6
Type: Research Article
ISSN: 1359-8546

Keywords

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 supplier

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: 30 September 2022

Aki Jääskeläinen, Katrina Lintukangas and Frederik G.S. Vos

This study uses social capital theory to analyze how social capital and supplier development support achieving supplier satisfaction and preferred customer status. The resulting…

1365

Abstract

Purpose

This study uses social capital theory to analyze how social capital and supplier development support achieving supplier satisfaction and preferred customer status. The resulting model is compared between manufacturing and service suppliers.

Design/methodology/approach

A survey receiving 482 supplier responses from manufacturing and service suppliers was utilized and analyzed using partial least squares (PLS) path modeling and multi-group comparison tests.

Findings

The paper adds new explanations for preferred customer status through empirical evidence of relationships between supplier development, social capital, supplier satisfaction, and preferred customer status. Cognitive and relational capital directly support achieving preferred customer status. The role of supplier satisfaction in achieving preferred customer status is lower for manufacturing suppliers.

Research limitations/implications

Both service and manufacturing suppliers could also be studied in their specific industry settings. A more in-depth investigation of other business relationship dynamics, such as power, is needed in a future study.

Practical implications

Service and manufacturing suppliers need different strategies to obtain the benefits from supplier development and social capital building. For service suppliers, more intangible factors are relevant in comparison to manufacturing suppliers.

Originality/value

This study advances the literature in two main ways. First, it elaborates the role of supplier development and social capital in the path toward supplier satisfaction and preferred customer status as perceived by suppliers. Second, this study answers the calls for a better understanding of the contextual characteristics underlying potential differences in how preferred customer status is formed.

Details

International Journal of Operations & Production Management, vol. 42 no. 13
Type: Research Article
ISSN: 0144-3577

Keywords

Open Access
Article
Publication date: 13 January 2022

Andrea Patrucco, Christine Mary Harland, Davide Luzzini and Federico Frattini

Suppliers are essential partners in innovation projects, as they own resources, knowledge assets and capabilities that complement those of buying firms. In today’s competitive…

2778

Abstract

Purpose

Suppliers are essential partners in innovation projects, as they own resources, knowledge assets and capabilities that complement those of buying firms. In today’s competitive environment, firms may choose to collaborate with suppliers beyond dyads, forming triadic or three-party relationships. Using the theoretical lens of the relational view (RV), this study aims to explore what type of triad configurations firms use to govern supplier relationships in collaborative innovation projects, how they choose to share resources and implications for project performance.

Design/methodology/approach

The authors use interview data from buyers and suppliers in six case studies of firms involved in ten collaborative innovation projects. The four constructs of the RV are used to observe how firms govern triadic relationships, combine complementary resources, invest in relationship-specific assets and manage information and knowledge exchange with and between suppliers in innovation projects.

Findings

Four archetypes of triadic relationships in innovation projects – labeled Triangle, A-frame, D-Frame and Line – are presented and characterized in terms of their structural and relational features. The authors discuss how each triad archetype is applicable to different innovation projects according to specific project characteristics.

Originality/value

This study is pioneering in its empirical examination of triadic relationships in collaborative innovation projects. It provides a novel typology of four archetypes of triad from the perspective of collaborative relationships with suppliers. Through applying the RV, it advances understanding of how triadic relationships are governed, how they invest in relationship-specific assets, how they combine complementary resources and how they exchange knowledge and information in each type of triad appropriate to different innovation project settings. To date, much of the extant literature has focused on dyads.

Details

Supply Chain Management: An International Journal, vol. 27 no. 7
Type: Research Article
ISSN: 1359-8546

Keywords

Open Access
Article
Publication date: 10 August 2021

Tom A.E. Aben, Wendy van der Valk, Jens K. Roehrich and Kostas Selviaridis

Inter-organisational governance is an important enabler for information processing, particularly in relationships undergoing digital transformation (DT) where partners depend on…

7673

Abstract

Purpose

Inter-organisational governance is an important enabler for information processing, particularly in relationships undergoing digital transformation (DT) where partners depend on each other for information in decision-making. Based on information processing theory (IPT), the authors theoretically and empirically investigate how governance mechanisms address information asymmetry (uncertainty and equivocality) arising in capturing, sharing and interpreting information generated by digital technologies.

Design/methodology/approach

IPT is applied to four cases of public–private relationships in the Dutch infrastructure sector that aim to enhance the quantity and quality of information-based decision-making by implementing digital technologies. The investigated relationships are characterised by differing degrees and types of information uncertainty and equivocality. The authors build on rich data sets including archival data, observations, contract documents and interviews.

Findings

Addressing information uncertainty requires invoking contractual control and coordination. Contract clauses should be precise and incentive schemes functional in terms of information requirements. Information equivocality is best addressed by using relational governance. Identifying information requirements and reducing information uncertainty are a prerequisite for the transformation activities that organisations perform to reduce information equivocality.

Practical implications

The study offers insights into the roles of both governance mechanisms in managing information asymmetry in public–private relationships. The study uncovers key activities for gathering, sharing and transforming information when using digital technologies.

Originality/value

This study draws on IPT to study public–private relationships undergoing DT. The study links contractual control and coordination as well as relational governance mechanisms to information-processing activities that organisations deploy to reduce information uncertainty and equivocality.

Details

International Journal of Operations & Production Management, vol. 41 no. 7
Type: Research Article
ISSN: 0144-3577

Keywords

Open Access
Article
Publication date: 30 December 2019

Sandro Cabral, Priscila Fernandes Ribeiro and Sanders Zurdo Romão

This paper aims to analyze the underlying factors of contract renewals in business-to-business (B2B) contracts.

1572

Abstract

Purpose

This paper aims to analyze the underlying factors of contract renewals in business-to-business (B2B) contracts.

Design/methodology/approach

The authors build a unique data set with 296 contracts signed between a major firm supplying petrochemical goods and its 128 customers between 2013 and 2016. They use Insider Econometrics as their methodological approach.

Findings

The econometric results suggest that contracts involving higher volume of trade, higher levels of dedicated assets representing seller’s specific investments in each transaction, and contracts comprising more than one product present an increased likelihood of being renewed.

Research limitations/implications

Although limited to a single organization, this paper contributes to management theories focused on buyer–supplier relationships in which coordination between interdependent parties is required.

Practical implications

Practitioners engaged in B2B relationships may benefit from the findings to shape their bargaining strategies in contexts of high levels of asset specificity and bilateral dependence.

Originality/value

This paper contribute to theories related to the strategic negotiation between buyers and suppliers by emphasizing the importance of asset specificity in a nuanced and multifaceted fashion, by highlighting aspects related to resource dependency, and idiosyncratic characteristics on contract renewal.

Details

RAUSP Management Journal, vol. 55 no. 4
Type: Research Article
ISSN: 2531-0488

Keywords

Open Access
Article
Publication date: 28 December 2020

Bodo Steiner and Moritz Brandhoff

This paper aims to explore the role of configurations of relationship quality dimensions for explaining sources of behavioral outcomes in the globalized manufacturing industry.

4548

Abstract

Purpose

This paper aims to explore the role of configurations of relationship quality dimensions for explaining sources of behavioral outcomes in the globalized manufacturing industry.

Design/methodology/approach

A joint analysis of behavioral and objective performance data from globalized manufacturing links perceptual customer metrics that relate to dimensions of relationship quality (i.e. attitudinal loyalty, perceived customer orientation, customers’ perceived innovativeness of the supplier and perceived customer influence on supplier innovation) with behavioral outcomes (i.e. share of wallet (SOW) and customer account profitability). Using data from a global business-to-business (B2B) customer survey together with archival performance data from a multinational mechanical engineering firm, a fuzzy set qualitative comparative analysis (fsQCA) is performed.

Findings

The fsQCA results suggest that perceptual customer metrics related to innovation can be relevant aspects of relationship quality, in line with Anderson and Mittal’s (2000) satisfaction-repurchase-profitability chain framework and its adaptation to SOW. However, the underlying complexities in the different combinations of attributes in the recipe are such that they are not equifinal in leading to higher SOW or higher profitability. This paper finds indications for non-linearities between perceptual measures investigated and profitability of customer accounts, with particular relevance for the role of perceived customer orientation, perceived product innovativeness of the supplier and attitudinal loyalty.

Research limitations/implications

The analysis faces a number of limitations, starting with its reliance on cross-sectional survey data, which does not enable us to account for feedback mechanisms, for example, arising from customer perceptions regarding innovation aspects. The lack of a multidimensional conceptionalization of the perceptual customer constructs may have limited the analysis, considering also recent evidence from retail companies in the furniture sector in Spain, suggesting that the multidimensional conceptualization of relationship value explained satisfaction and loyalty levels to a greater extent than the one-dimensional conceptualization (Ruiz-Martínez et al., 2019).

Practical implications

In terms of managerial implication, the results suggest that customers perceive limited value in participating in the focal firm’s innovation value chain funnel, hence customer loyalty cannot be bought using simple incentive strategies. The results with regard to customer account profitability suggest that B2B customers investigated here may distinguish when interacting with their globalized supplier in the innovation funnel: they may see a positive customer value when the innovation is a product, and thus, relation-specific, whereas they may see limited customer value when innovation is considered in more generic terms (customers’ perceived influence on supplier innovation in general).

Originality/value

This paper starts from the premise that perceptual customer metrics can matter for supplier performance, as the customer relationship and customer value management research has shown. However, there is limited empirical evidence from globalized manufacturing sectors incorporating perceptual constructs in behavioral outcomes, and limited evidence assessing customer-perceived value in such sectors through alternate approaches to main-effects focused analyzes. We employ qualitative comparative analysis using fuzzy sets (Russo et al., 2019) to address these gaps, focusing on two key behavioral outcomes, namely, customer account profitability and SOW.

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