Search results

Managers and academics alike focus on value creation in business relationships. This paper adds to existing literature by analyzing functions of business relationships and their impact on value perception. Applying a customer perspective, direct relationship functions are concerned about payment, quality, and volume. Indirect functions include innovation, access, and scouting. Furthermore, trust and number of alternative suppliers are included in the study. The empirical results illustrate the important role of direct and indirect functions for value creation. Understanding these functions is instrumental for driving customer value, both for the supplier and the seller. Direct functions do have a much stronger impact on value than indirect functions that still do have a significant impact. Thus, increasing direct function fulfillment is much more effective in order to gain key supplier status than relying only on indirect functions. But indirect functions may offer ample differentiation opportunities. Being a strong driver of relationship value, trust is also driven by function fulfillment. Thus, relationship value depends on rational elements (functions) and social elements (trust). Availability of alternative suppliers increases the importance of relationship function fulfillment on customer value and customer trust. In highly competitive markets, suppliers need clear understanding and communication of relationship value in order to succeed.

Firms enter into exchanges so that they can create value for themselves as well as their customers. Day's concept of customer value equations is reviewed and the concept of supplier value equations is introduced. Then the manner in which these two types of value equation can be used to identify opportunities for enhancing supplier and customer value is demonstrated.

In the current customer‐centred business environment, organisations are adopting market‐oriented behaviour in an effort to enhance their value creation and delivery capabilities. This study seeks to investigate whether supplier market orientation leads to the creation of superior supplier perceived value and organisational performance. It is contended that supplier perceived value creation mediates the relationship between market orientation and business performance.

A model was developed that places supplier perceived value creation as a mediator of the relationship between market orientation and business performance. The model was tested using structural equation modelling on 244 fresh produce suppliers interviewed in face‐to‐face interviews.

The results indicate that, whilst customer orientation enhances supplier perceived value creation, competitor orientation and interfunctional coordination were negatively associated with it. Supplier perceived value creation had a mediating effect on the link between market orientation and business performance. Additionally, supplier perceived value creation had a negative effect on financial performance, but was positively related to marketing performance.

The study indicates that not all market orientation components lead to positive effects on business performance. For some organisations market orientation can actually reduce business performance. Thus managers should specifically be careful to implement customer orientation as a way of enhancing business performance as the costs may outweigh the benefits.

Limited work has investigated the role of supplier perceived value creation and research has called for empirical work on mediators of the market orientation‐business performance link. The paper adds to existing knowledge by unveiling how supplier market orientation influences their ability to conceptualise supplier delivered value.

The concept of exchange is considered and the insights that this provides are combined with Day’s concept of customer value equations to propose that there is also a need to evaluate the supplier’s value equation. Examples of how both customer and supplier value equations might be used by a supplier to further its understanding of the relationships which it has with customers are discussed.

Product returns management (PRM) is a core supply chain management process. Though the importance of value creation and appropriation is acknowledged, extant studies on value in product returns tend to be limited to the residual asset value (cost recovery) of the returned products. Further, value discussion in PRM is limited to the value implications for a single party in the returns transaction rather than all the product returns chain entities. The purpose of this paper is to explore value creation and appropriation in a triad of supplier-retailer-3PL in the product returns chain.

The study uses an inductive qualitative approach. Semi-structured interviews with executives in a triad of organisations formed the primary data source for the study.

The paper identifies six value drivers and develops a value creation and appropriation framework. It shows that facilitation, value orientation, process alignment and relational factors are key drivers of value creation and appropriation in PRM.

The findings reinforce the view that value creation and appropriation are the outcomes of multi-party interactions in a product return chain. The framework presented contributes to the literature by showing the linkages amongst key drivers.

The findings show the important role of external process facilitation and how a 3PL contributes to value creation in a triadic relationship.

Research based on a triadic product returns chain is a unique dimension of this study.

Posits that, by specifically examining price‐value relationship, buyers can avoid many of the problems inherent in comparing products/suppliers in terms of net delivered price. Provides background on economic value pricing, along with a detailed discussion of the steps and considerations for buyer‐side application to supplier price analysis and its managerial implications.

The purpose of this study is to identify the types and features of business relationship when the value co-creation phenomenon is extended to an early stage of the value chain, in which technological innovation is essential, in a high-tech business-to-business (B2B) market.

The methodology of building a theory from a case study is adopted in this study to propose an early-stage value co-creation network. Qualitative data are coded on the basis of grounded theory coding after collecting the triangulation data from multiple sources.

In a high-tech B2B market, three types of business relationships (supplier–customer mutual, supplier-centric and network-based business relationships) co-create values at an early stage of the value chain. Intellectual resource, efficiency resource and supplier-centric business relationships are uniquely found in this stage.

This study provides new insight suggesting that the notion of value co-creation can be extended to early stages of the value chain in a high-tech B2B market. In addition, this research identifies vital business relationships and how these relationships develop successfully at an early-stage value co-creation network in a high-tech B2B market.

Technology development managers at an early stage of the value chain can co-create relationship benefits by building proposed business relationships integrating resources in a high-tech B2B market. In addition, marketing managers should consider the early stage as another source of value co-creation.

The notion of value co-creation is extended from the later stage to an early stage of the value chain in a high-tech B2B market. Consolidated framework of a value co-creation network integrating actors, resources and relationships, suggested in this study, will be valuable for further theoretical research and business application.

Interfirm relationships create value, but buyers and suppliers can appropriate this value in different amounts. Using the relational-view of strategy, the purpose of this paper is to explain value creation and determine the portion of that value appropriated by each organization.

The data source was a survey with 166 respondents covering two industries. The authors used confirmatory factor analysis to validate construct measurement and structural equation modeling to test the hypotheses. A parallel qualitative investigation composed of 31 interviews assisted in interpreting the findings.

Based on the relational view of strategy, the authors found support for only two of the four hypotheses that sought to explain value creation. This result calls into question the applicability of this theory to contexts other than the automotive industry, in which it was developed. Only a joint construct combining Relational Governance and Resource Complementarity had a significant effect on relational value creation. With respect to value appropriation, although both buyers and suppliers captured part of the relational value created, the buyers tended to receive the great majority of this value.

The focussed context of this study (Brazilian companies in the personal care/cosmetics and food/beverage industries) limits its generalizability but provides deeper insight into the interpretation of its results.

Both buyers and suppliers can benefit from collaborative relationships, but buyers appear to capture a larger share, forcing suppliers to continuously seek new sources of value.

This paper bridges the gap between the buyer-supplier literature and the definition of competitive advantage as value creation found in the strategic management literature. This study proposes and tests an integrative definition of the relational value that is created and appropriated in a dyad.

Buyer-supplier, Relational-view of strategy, Value creation and appropriation

Research paper

Objetivo

Las relaciones entre empresas generan valor, pero los compradores y proveedores puede apropiarse de este valor en cantidades diferentes. Usando una perspectiva relacional (relational-view) de la estrategia, este articulo explica la creación de valor y determina la proporción de ese valor asignado por cada organización.

Nuestra fuente de datos fue una encuesta con 166 respuestas abarcando dos industrias. Usamos el Análisis Factorial Confirmatorio para validar los factores construidos y modelos de ecuaciones estructurales para evaluar las hipótesis. Una investigación cualitativa paralela compuesta por 31 entrevistas ayudó a interpretar los hallazgos.

Basados en la perspectiva relacional de la estrategia, encontramos respaldo sólo para dos de las cuatros hipótesis que buscaban explicar la creación del valor. Este resultado invita a preguntar la aplicabilidad de esta teoría a contextos más allá de la industria automotriz, en donde se desarrolló. Solo un factor conjunto que combina la Gobernanza Relacional y Complementariedad de Recursos tuvo un efecto significativo en la Creación De Valor Relacional. En cuanto a la apropiación de valor, aunque ambos compradores y proveedores capturan parte del valor relacional creado, los vendedores tendieron a recibir la gran mayoría de este valor.

El contexto en el cual se focalizó este estudio (Empresas Brasileñas de cosméticos y cuidado personal e industrias de comidas/bebidas) limita su generalización pero provee un conocimiento más profundos a la interpretación de sus resultados.

Ambos, compradores y proveedores pueden beneficiarse de una relacion de colaboración, pero los compradores parecen capturar una mayor proporción, forzando a los proveedores a continuamente buscar nuevas fuentes de valor.

Este articulo acerca la brecha entre la literatura del comprador y proveedor y la definición de la ventaja competitiva como creación de valor hallada en la literatura de estrategia de administración. Este estudio propone y prueba una definición integradora del valor relacional que es creado y apropiado en la díada.

Trabajo de investigación

Objetivo

As relações entre empresas criam valor, mas os compradores e fornecedores podem apropriar-se deste valor em quantidades diferentes. Usando a Visão Relacional da Estratégia, este artigo explica a criação de valor e determina a proporção deste valor apropriado por cada organização.

A base de dados foi uma survey respondida por 166 empresas de dois setores industriais. Foi utilizada uma Análise Fatorial Confirmatória para avaliação dos constructos e Modelagem de Equações Estruturais para teste de hipóteses. Uma pesquisa qualitativa paralela composta de 31 entrevistas ajudou a interpretar os resultados.

Baseado na Visão Relacional da Estratégia, foram confirmadas apenas duas das quatro hipóteses que buscavam explicar a criação de valor. Este resultado questiona assim a aplicabilidade desta teoria a outros setores que não a indústria automobilística, no qual esta abordagem originalmente foi desenvolvida. Somente um construto resultante da combinação dos construtos de Governança Relacional e de Complementaridade de Recursos teve um efeito significativo na criação de Valor Relacional. Quanto à apropriação de valor, embora compradores e fornecedores capturam parte do valor relacional criado, os compradores tendem a ficar com maior parte deste valor.

O foco desta pesquisa (empresas brasileiras dos setores de alimentos, bebidas e higiene pessoal) limita a sua generalização, embora forneça um conhecimento mais profundo à interpretação dos resultados.

Tanto compradores e fornecedores podem se beneficiar de uma relação de colaboração, mas os compradores parecem capturar uma maior proporção forçando os fornecedores a continuamente buscar novas fontes de valor.

Este artigo preenche uma lacuna na literatura de comprador-fornecedor e a definição da vantagem competitiva como resultado do valor. Esta pesquisa se propõe a testar uma definição integrada do valor relacional criado e apropriado dentro de uma díade.

Trabalhos de pesquisa

Research on customer value in business markets is still at an early stage. More specifically, business marketing literature is largely silent on how customers' value expectations interact with suppliers' value propositions and how the interaction leads to development of new products and services. The purpose of this paper is to explore this interaction process and map the journey of the development of a new service and a new relationship.

Following a case study approach, data were collected from representatives of supplier firm – GASCO, and the buyers in CERACO, through in‐depth interviews. In total, 21 ceramic manufacturers (customers) were also visited who represent CERACO. Semi‐structured interviews were conducted with few key representatives of ceramic manufacturers, equipment supplier representatives, and GASCO representatives. Also interviewed were two vendors of GASCO and a representative of the gas pipeline (infrastructure) company close to GASCO. Themes were identified in the analysis of the semi‐structured interview transcripts, focus group discussions and the documented information.

The authors' case study highlights a nine‐step CVE‐SVP interaction process: reduce business discontinuities for customers; latent value co‐creation opportunity for a new supplier; collaborative partnership with high customer involvement; enhancing CVE of the new offering; keeping customer switching costs low; offering alternate customer solutions; reduce potential new business discontinuance for the customers; create value for customers' end customers; and co‐create value for customers in the long term.

The authors' case study, in an emerging market context of India, probably for the first time studies the interplay of regulatory forces, customer value expectations, and supplier‐driven markets in shaping the supplier value propositions. This context of the case study, which is so different from a customer‐driven market, makes this case study unique.

How do purchasing and supply management (PSM) practices create value for the business customers of a focal company? The purpose of this study is to approach the question by investigating the delivery of value over three tiers in the supply chain, that is, from suppliers to the focal company, and further to the focal company’s customers following value chain logic.

The study is carried out as a qualitative interview study in four focal companies operating in business-to-business markets. A total of 32 interviews are conducted targeted to managers and directors of sales and marketing, purchasing, product/service development and business units.

The study unveils the characteristics and interplay of supplier-oriented and cross-functional PSM practices in customer value creation. The findings indicate that cross-functional integration between purchasing and the other functions of a focal firm is most beneficial in improving supply flexibility to fulfill customer preferences, identifying new supplier offerings for the customer and facilitating time-to-market of new products.

This study enhances managers’ understanding of the characteristics of the non-financial benefits of purchasing and the role of PSM practices in customer value creation and business success. The findings are indicative of potentially successful practices in the contexts studied.

This study contributes to the supply chain management literature on the benefits of the purchasing function by highlighting the value created for the customer of a focal company. It also extends the discussion in the supply chain management literature on customer value creating interaction processes in business relationships by focusing on PSM practices.