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1 – 10 of over 12000Anne-Maria Holma, Anu Bask, Antti Laakso and Dan Andersson
This paper aims to develop a framework for switching a service supplier in a supply network.
Abstract
Purpose
This paper aims to develop a framework for switching a service supplier in a supply network.
Design/methodology/approach
The study builds on existing literature in the field of purchasing and supply management, public procurement (PP) and the Industrial Marketing and Purchasing approach, as well as on an illustrative example case, from the PP context, of a supplier switch in a service delivery process.
Findings
During a switching process, the buyer must simultaneously manage the ending of a relationship with the incumbent supplier and the beginning of a relationship with a new supplier. Collaboration with the focal suppliers to develop a service process with standardized components prevents disruptions in the service processes and reduces the impact of the switch on the wider network.
Research limitations/implications
The conceptualization suggested in this paper needs to be further explored in different empirical contexts to assess its practical adequacy.
Practical implications
Practitioners responsible for service procurement can use the findings to develop collaboration with suppliers, both when it comes to service process development and to the switching process. Furthermore, the authors highlight the importance of ending competencies and the development of an exit plan to conduct a “beautiful exit.”
Originality/value
The paper integrates relationship initiation and ending studies, as well as procurement process models to develop a refined switching process framework. Many PPs rely on short-term relationships due to the legal obligation to frequently invite suppliers to tender, thus understanding the supplier switching process is important both for private and public sector actors.
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Erno Selos, Teemu Laine, Inger Roos, Petri Suomala and Lauri Pitkänen
This study aims to focus on the switching path analysis technique (SPAT) application to enlarge the understanding of customer switching from the business to consumer (B‐to‐C…
Abstract
Purpose
This study aims to focus on the switching path analysis technique (SPAT) application to enlarge the understanding of customer switching from the business to consumer (B‐to‐C) context to the processes of business‐to‐business (B‐to‐B) supplier switches.
Design/methodology/approach
The paper is a theory extension of SPAT, with nine (9) supplier switching cases in different B‐to‐B settings. The cases shed light also on the actual triggers and determinants of the B‐to‐B switches.
Findings
The study proves the applicability of SPAT in B‐to‐B settings. The B‐to‐B context adds complexity, forming a relationship flow where many driving factors act for switching. Thus, the findings suggest that a comprehensive analysis of the triggers and determinants is required to understand the switching processes. In particular, the characteristics of the active/passive behaviour should be analysed separately in the customer and in the old and new suppliers.
Research limitations/implications
The empirical findings are exploratory in nature. Further research should refine the characteristics of active and passive behaviour at the levels of the relationship, the companies and the individuals to comprehend the notion of the influential trigger in SPAT. Further research should also address the wider topic of the patterns of certain triggers and determinants that actually lead to unstable supplier relationships.
Practical implications
The B‐to‐B supplier switches appear to be complex processes. The supplier should be able to be constantly aware of the major changes in the customer's business. Based on this awareness, the supplier may actively affect the development of the relationship to avoid unwanted switches.
Originality/value
The paper combines the relatively mature research stream of B‐to‐C supplier switches and access to B‐to‐B supplier‐switching cases. The theory contribution of the paper is the extension of the theory to the B‐to‐B context, with relevant research implications.
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Chang Juck Suh and Jong-Hoon Kim
The purpose of this paper is to identify the negative impact of an incumbent supplier pushing out a buyer, the positive effect of an alternative supplier pulling a buyer, and the…
Abstract
Purpose
The purpose of this paper is to identify the negative impact of an incumbent supplier pushing out a buyer, the positive effect of an alternative supplier pulling a buyer, and the mooring impact that prevents a buyer from switching to a supplier in terms of the push-pull-mooring (PPM) model of migration theory. In this context, this study considers a buyer as the immigrant, an incumbent supplier as the origin, an alternative supplier as the destination, and inertia as the hesitance to migrate.
Design/methodology/approach
This study collected survey data from 148 end-product manufacturers and first-tier suppliers. It tested whether the PPM model fit in a supply chain relationship (SCR) using the partial least squares structural equation modelling approach and SmartPLS package version 2.0.M3.
Findings
The results support all hypotheses for causal relationships among factors of cognitive, affect, and behavioural intentions of each PPM effect. This study identifies the relative importance of each effect on a buyer’s intention of switching an existing supplier.
Originality/value
This study presents a new perspective that enhances the understanding of a buyer’s behaviour towards a supplier by applying the PPM model of migration to a manufacturing SCR. It promotes interdisciplinary and integrated views as well as broadens the diversity of the results in the business-to-business context.
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Juan Pablo Maicas Lopez, Yolanda Polo Redondo and Fco. Javier Sese Olivan
The purpose of this research is to show how relationship marketing has recognized the importance of building long‐term relationships in increasing firms' profitability and…
Abstract
Purpose
The purpose of this research is to show how relationship marketing has recognized the importance of building long‐term relationships in increasing firms' profitability and guaranteeing their future viability. Owing to the damaging effects that customer switching behavior could have on the development of successful relationships, understanding customers' switching decisions can represent a key step in the process of establishing, developing and maintaining successful relational exchanges. The current study aims to contribute in this direction by introducing the heterogeneity of customers in their relationship characteristics (depth, length and breadth) into the analysis of customers' propensity to switch service providers.
Design/methodology/approach
The data set used to carry out this study has been obtained from a panel survey (Home Online) of technology users in the United Kingdom, and the proposed hypotheses are tested on the fixed‐line telephone sector using logistic regression. This technique associates the relationship characteristics with the probability that a switch in suppliers will take place.
Findings
The results obtained show that the length, depth and breadth of relationships help to determine customers' propensity to switch fixed‐telephone suppliers. Customers who maintain a long‐lasting relationship with the firm (length), use the service more (depth), and invest in complementary services (breadth) will be less predisposed to switch.
Practical implications
With regard to recommendations for practitioners, the paper highlights the need for firms to renew both acquisition and retention strategies in order to take individual customer information into account. This should help them to identify and retain the most valuable customers and to optimally allocate marketing resources (from switching‐prone to non‐switching‐prone customers).
Originality/value
The main contribution of the paper is to consider relationship characteristics in the analysis of customer switching behavior. This research shows that the heterogeneity observed in the depth, length and breadth of customer‐firm relationships explains the differences in the propensity to switch service providers.
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Marko Kohtamäki and Michael Bourlakis
This study aims to examine the antecedents of relationship learning in partnerships and develop a research model that explains relationship learning through three complementary…
Abstract
Purpose
This study aims to examine the antecedents of relationship learning in partnerships and develop a research model that explains relationship learning through three complementary constructs: relational practices, social capital and suppliers' relationship‐specific investments.
Design/methodology/approach
The study examines data drawn from interviews regarding 195 customer‐supplier relationships from the metal and electronics industries. In terms of methodology, the study employs structural equation modelling.
Findings
The findings indicate that relational practices, social capital and supplier's relationship‐specific investments explain relationship learning to a great extent.
Research limitations/implications
The present study has some limitations, such as the use of cross‐sectional data and a limited sample size. More empirical research is needed on the antecedents and mechanisms of relationship learning as well as the interactions among antecedents.
Practical implications
The results suggest that companies must be able to facilitate the development of relational practices, social capital and suppliers' relationship‐specific investments, as these constructs explain relationship learning largely.
Originality/value
The prior literature lacks empirical evidence on the antecedents of relationship learning, particularly in the context of partnerships. The present study demonstrates a significant impact of three antecedent constructs on relationship learning.
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Anna Dubois, Lars-Erik Gadde and Lars-Gunnar Mattsson
The purpose of the paper is to describe and analyse the evolution of the supplier base of a buying firm and the reasons behind these changes.
Abstract
Purpose
The purpose of the paper is to describe and analyse the evolution of the supplier base of a buying firm and the reasons behind these changes.
Design/methodology/approach
The paper is based on a case study of the changes over 52 years in a sub-set of the supplier base of a firm manufacturing fork-lifts.
Findings
The study shows that some relationships feature substantial longevity. However, the duration of one-third of the total relationships is shorter than five years. There was considerable variation over time in the dynamics of the supplier base in terms of entries and exits of suppliers. Owing to this variation, research findings and conclusions in short-term studies are heavily dependent on the specific conditions at the time of the study. Finally, no less than one-fourth of the terminated supplier relationships were reactivated later.
Research limitations/implications
The study was designed in a time when purchasing was considered entirely from the perspective of the buying firm. Further studies, therefore, must increasingly emphasise the role of suppliers and the interaction in the buyer–supplier relationships, as well as the embeddedness in networks.
Originality/value
The findings of the study are unique in two ways. First, they are based on systematic observations over more than 50 years. Second, the study involves the purchases of 11 components representing different technical and economic features. The (few) previous studies are based on much shorter time periods and involves fewer suppliers/components. Moreover, the findings regarding re-activation of terminated relationships represent unique contributions.
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Sri Rahayu Hijrah Hati, Gita Gayatri and Kenny Devita Indraswari
This study aims to examine the interactive effect of the push factor from the conventional bank, the pull factor from the Islamic bank and the internal mooring factor of the…
Abstract
Purpose
This study aims to examine the interactive effect of the push factor from the conventional bank, the pull factor from the Islamic bank and the internal mooring factor of the customers in influencing the switching behavior of two types of customer account holders, the conventional only and the mixed (conventional and Islamic bank) account holders, from the services marketing mix perspective.
Design/methodology/approach
This study applied an explanatory research design. The data were collected via an online survey from 1,171 Muslim participants; participants consisted of conventional only account holders, Islamic bank only account holders and mixed (conventional and Islamic bank) account holders. The data were mainly analyzed using structural equation modeling.
Findings
Based on the account, the results showed that the three types of customers differ significantly in terms of the effect of the push, pull and mooring factors. The study also showed that the mooring factor, which is internal to the customer, is the most significant factor that inhibits customers from migrating to Islamic banks. The effect was observed for both conventional customers and those who hold mixed accounts.
Research limitations/implications
The study was conducted via an online survey, which reduces the representativeness of the sample. In addition, most respondents were urban dwellers and well educated, which might not represent the banking behaviour of Indonesian Muslim customers in general.
Practical implications
The study implies that to attract the conventional only account holder, Islamic banks should first weaken the mooring factors (the internal characteristics of the customers) that inhibit customers from switching to an Islamic bank.
Originality/value
The main contribution of the study is that it simultaneously identifies the push, pull and mooring factors that have the most significant impacts on Muslim customers' switching behavior from a conventional to an Islamic bank.
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León Poblete and Anna Bengtson
The purpose of this paper is to explore an important management aspect of business relationship dynamics, namely, the reactivation process of previously ended buyer–supplier…
Abstract
Purpose
The purpose of this paper is to explore an important management aspect of business relationship dynamics, namely, the reactivation process of previously ended buyer–supplier relationships.
Design/methodology/approach
A processual case study approach focusing on a single in-depth case has been used. The case is based on longitudinal data from a number of sources concerning one reactivation failure.
Findings
Grounded in previous research and based on this study’s case findings, the authors have designed a model of analysis for relationship reactivation processes. Using the model on this study’s particular case, the authors show how the structural properties of network embeddedness and resource ties worked in favor of the process, whereas the social bonds and the lack of them led to mistrust that disturbed the negotiation and, hence, worked against the reactivation process.
Originality/value
This study makes a contribution to the field of relationship dynamics by exploring relationship reactivation processes. The designed model shows how reactivation can be understood as an interplay between structural properties and (re)building activities and contributes new knowledge on factors that affect this process.
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Zachary A. Collier, Ujjwal Guin, Joseph Sarkis and James H. Lambert
In the buyer-supplier relationship of a high-technology enterprise, the concepts of trust and risk are closely intertwined. Entering into a buyer-supplier relationship inherently…
Abstract
Purpose
In the buyer-supplier relationship of a high-technology enterprise, the concepts of trust and risk are closely intertwined. Entering into a buyer-supplier relationship inherently involves a degree of risk, since there is always an opportunity for one of the parties to act opportunistically. Purchasing and supply managers play an important role in reducing the firm's risk profile, and must make decisions about whether or not to enter into, or remain in, a relationship with a supplier based on a subjective assessment of trust and risk.
Design/methodology/approach
In this paper, the authors seek to explore how trust in the buyer-supplier relationship can be quantitatively modeled in the presence of risk. The authors develop a model of trust between a buyer and supplier as a risk-based decision, in which a buyer decides to place trust in a supplier, who may either act cooperatively or opportunistically. The authors use a case study of intellectual property (IP) piracy in the electronics industry to illustrate the conceptual discussion and model development.
Findings
The authors produce a generalizable model that can be used to aid in decision-making and risk analysis for potential supply-chain partnerships, and is both a theoretical and practical innovation. However, the model can benefit a variety of high-technology enterprises.
Originality/value
While the topic of trust is widely discussed, few studies have attempted to derive a quantitative model to support trust-based decision making. This paper advanced the field of supply chain management by developing a model which relates risk and trust in the buyer-supplier relationship.
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Shu-Hua Wu, Edward C.S. Ku and Tung-Pao Wu
This research aimed to analyse the relationships between chefs' knowledge, learning with suppliers and restaurant sales performance.
Abstract
Purpose
This research aimed to analyse the relationships between chefs' knowledge, learning with suppliers and restaurant sales performance.
Design/methodology/approach
A performance model was formulated, and the hypotheses were evaluated using partial least squares (PLS). The research questionnaires were sent by post to the chefs who confirmed leading for product innovation in the restaurants and yielded 166 completed questionnaires.
Findings
Whilst the chef is developing new products, restaurant operations should pay attention to the supplier's subsequent income convenience. Additionally, through the cooperation of chefs and suppliers, innovative and valuable products can improve restaurant performance and maintain a competitive advantage. Moreover, tacit knowledge sharing can become a chef's ability to learn and provide competitive advantages and benefits to restaurants.
Originality/value
Valuable products can be advantageous to restaurants and increase restaurants' operating performance. Moreover, the development of new products is important for restaurants' operations. Further, chefs will understand market trends and make the culinary innovation process closer to the market by learning from their colleagues and partners. Additionally, chefs prefer culinary creation to provide more tacit knowledge with suppliers.
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