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Article
Publication date: 2 December 2019

Artur Swierczek

The purpose of this paper is to explore whether brokered network governance, run by the manufacturer, affects relational embeddedness and thus contributes to yielding the Coleman…

Abstract

Purpose

The purpose of this paper is to explore whether brokered network governance, run by the manufacturer, affects relational embeddedness and thus contributes to yielding the Coleman rent in the triadic supply chains.

Design/methodology/approach

Building upon the theoretical tenets of transaction cost analysis, complemented by the underpinnings of social capital theory, this study involves an empirical investigation that uses survey data collected from the triadic supply chains in Europe. The research covers a two-step analysis. In the first step, the Coleman rent was estimated through the regression analysis with the interaction effects. Then, partial least squares–structural equation modeling was used to estimate the reflective-formative nature of higher component model and test the research hypotheses.

Findings

The results of the study demonstrate that the distribution of three mechanisms in network governance is relatively even; however, market and hierarchy still emerge as the most impactful dimensions. Interestingly, though, this study shows that social capital can actually coexist with market and hierarchy in the triadic supply chains with the structural hole. Likewise, the research indicates that the impact of brokered network governance on the strength of network relational embeddedness is significant, but relatively weak, whereas network relational embeddedness has a strong and positive effect on the Coleman rent.

Research limitations/implications

This study makes three major contributions. First, this study is one of very few that explicitly considers brokered network governance, run by the manufacturer positioned on the structural hole in its triadic supply chain. Second, as the triadic perspective is still uncommon in the supply chain studies, this research investigates a triad with the structural hole within the manufacturing setting. Third, the paper seeks to investigate the ability to yield the Coleman rent in the triadic supply chains with the structural hole, although this type of rent is typically linked to another arrangement called closure.

Originality/value

Given the increasing attention paid to the role of social capital within supply chains, this study investigates how relational embeddedness can be used by the manufacturer, sitting on the structural hole and running the network governance mechanism, to yield the Coleman rent in the triadic supply chain.

Details

Supply Chain Management: An International Journal, vol. 25 no. 3
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 8 May 2019

Artur Swierczek

This study aims to investigate the link between manufacturer relational embeddedness, manufacturer influence and supplier-customer relational embeddedness and their resulting…

Abstract

Purpose

This study aims to investigate the link between manufacturer relational embeddedness, manufacturer influence and supplier-customer relational embeddedness and their resulting impact on the network rent.

Design/methodology/approach

Leveraging the theoretical lens of social exchange theory and the relational view and utilizing the survey data derived from the transitional triadic supply chains, the authors used multiple regression analysis and the partial least squares (PLS) path model. The regression analysis with interaction effects is used to indicate the network rent, while the PLS path model is applied to investigate the link between manufacturer relational embeddedness, manufacturer influence and supplier-customer relational embeddedness and their subsequent impact on the network rent.

Findings

The authors empirically establish that manufacturer relational embeddedness, as a higher-order factor, can comprise both upstream and downstream relational embeddedness. The research also demonstrates that manufacturer relational embeddedness significantly contributes to the manufacturer’s eagerness to form a direct link between the supplier and the customer, and the manufacturers report a significant ability to affect this relationship. Likewise, the study shows that supplier-customer relational embeddedness significantly and positively affects the network rent. In addition, the study implies that supplier-customer relational embeddedness is a mediator between manufacturer influence and the network rent, while manufacturer influence is a suppressor variable, which increases the negative relationship between manufacturer relational embeddedness and supplier-customer relational embeddedness.

Research limitations/implications

The research makes three key contributions. First, this study, as one of very few, simultaneously embraces context, intervention, mechanism and outcome, while investigating the role of manufacturer (its relational embeddedness and influence) in promoting supplier-customer relational embeddedness, and its resulting effect on the network rent. Further on, to the best of the authors’ knowledge, this is the first empirically based study that demonstrates to what extent the manufacturer is capable of fostering supplier-customer relational embeddedness, thus favoring the transposition from the intransitive into the transitive triadic supply chains. Finally, to date, the concept of network rent has been mostly conceptualized as the theoretical construct with no empirical evidence. This research offers guidance for manufacturers in managing the relationships between the supplier and the customer to yield the highest network rent.

Originality/value

This study provides a novel approach to investigating the role of manufacturer and relational embeddedness in yielding the network rent in the transitional triadic supply chains.

Details

Supply Chain Management: An International Journal, vol. 24 no. 4
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 6 February 2019

Artur Swierczek

The purpose of this paper is to investigate whether the manufacturer that occupies the central position in the triadic supply chain is capable of enhancing relationships within…

1049

Abstract

Purpose

The purpose of this paper is to investigate whether the manufacturer that occupies the central position in the triadic supply chain is capable of enhancing relationships within both dyads to produce the network rent and extra profit shared among all supply chain actors.

Design/methodology/approach

The paper opted for an exploratory study using a survey of triads forming supply chains. To reveal the capability of yielding the network rent in the examined triads, multiple regression analysis with Interaction effects was used. Having confirmed the existence of supernormal profit, the partial least square path model was developed to investigate the effects of manufacturer structural embeddedness on relational embeddedness and the resulting impact on the network rent.

Findings

The obtained findings show that manufacturer structural embeddedness has a direct and positive effect on relational embeddedness and relational embeddedness of two dyads (represented as a higher order factor) has a direct and positive effect on the network rent. In addition, relational embeddedness mediates the positive relationship between manufacturer structural embeddedness and network rent, as the null model with no mediation appears to underestimate the direct and positive effect between manufacturer structural embeddedness and the network rent.

Research limitations/implications

The study makes three key contributions. First, it extends the application of both relational and structural embeddedness to grasp the network architecture of the triadic supply chain. Second, the concept of manufacturer structural embeddedness is used to elaborate on the role of the manufacturer in establishing relationships of high quality with the supplier and the customer. In connection to the previous point, the calculated network rent demonstrates that establishing collaborative relationships in triadic supply chains may bring a significant supernormal profit, derived as the outcome of mutual interplay between the relational performances of two dyads.

Practical implications

The study shows that manufacturers intending to use their central position to develop collaborative relationships with both partners, and the supplier and the customer, ought to appreciate the role of social ties embedded in interorganizational networks. The paper also implies that in parallel with using formal contracts as a governance mechanism, the manufacturer centrally positioned in the triadic supply chains ought to deliberately shape relational embeddedness of both dyads. Finally, managers can consider the ways to enhance relational embeddedness in a triad by improving relational embeddedness of a certain dyad.

Originality/value

This study provides a novel framework for studying two basic dimensions of embeddedness (structural and relational) and their impact on the network rent in triadic supply chains that goes beyond the dyadic perspective and incorporates the extended supply chain.

Details

Supply Chain Management: An International Journal, vol. 24 no. 3
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 28 April 2020

Artur Swierczek

First, the paper aims to explore the ability of the actor sitting on the structural hole to achieve the additional rent, which is modeled as the outcome of joint effect between…

Abstract

Purpose

First, the paper aims to explore the ability of the actor sitting on the structural hole to achieve the additional rent, which is modeled as the outcome of joint effect between the relational performances of two dyads (supplier–buyer and buyer–customer) within the triadic supply chains. Second, the paper seeks to empirically compare the value of additional rent among different structural hole states of triadic supply chains.

Design/methodology/approach

Building upon the theoretical tenets of social capital theory, complemented by the underpinnings of relational view, this research uses survey data gathered from the triadic supply chains in Europe. To conduct necessary processing, the multivariate statistical analyses have been performed.

Findings

The findings suggest that the rent is actually yielded by the actors bridging the structural hole in the triadic supply chain; however, its value, as evidenced in the study, is diverse regarding the specific structural hole state. More specifically, the highest value of rent is generated by the buyer establishing cooperative posture of both dyads in the triadic supply chains. The value of rent close to zero is revealed in the triadic supply chains with negative relational posture of both dyads. Interestingly, the lowest level of rent produced by the buyer from bridging the structural hole is reported with the triadic supply chains in which one dyad demonstrates a more cooperative relational posture, whereas the other one indicates an adversarial relational posture. Not only does this result suggest that there is no rent, but it even goes further to indicate a negative return (or loss) derived by the manufacturer in this group of triadic supply chains.

Research limitations/implications

The study is limited to the relational posture, either strong or weak; therefore, it would be worthwhile to examine a wider spectrum of behaviors, based on the adversarial relationships, deprived of mutual trust, when both actors in a dyad act opportunistically and antagonistically. Moreover, regarding the research method used, the case study is usually deemed to be more appropriate to deeply grasp the complex issues of social behavior. Finally, caution should also be exercised while generalizing the results obtained from the research.

Practical implications

For practicing supply chain managers, this study points that that it is likely that both actors collaborating with the buyer (the supplier and the customer) also enjoy additional benefits offered by the rent. Importantly for managers, regardless of the effort made by the focal actor, the careless attitude and independence of suppliers and customers may make it hard or even impossible for the buyer to establish triads that include relationships of high quality.

Social implications

In terms of social implications, this study brings to the fore that not only are the buyers driven by self-interest but they may be also guided by ethical and social rules when interacting with suppliers and customers in their triads. This research evidenced that the buyer in the triadic supply chain can act as the moderator that tends to simultaneously establish a strong relational posture to two other actors in such a way that the joint effect of relational performance generated by both dyads significantly contributes to the higher level of buyer’s individual performance.

Originality/value

The study investigates whether and how establishing relational posture of two dyads in the triadic supply chains can affect the additional rent for the buyer derived from bridging the structural hole.

Details

Supply Chain Management: An International Journal, vol. 25 no. 5
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 4 July 2022

Nichapa Phraknoi, Jerry Busby and Mark Stevenson

This paper aims to investigate small and medium-sized upstream suppliers' and downstream distributors' understandings of supply chain finance (SCF) arrangements and their…

Abstract

Purpose

This paper aims to investigate small and medium-sized upstream suppliers' and downstream distributors' understandings of supply chain finance (SCF) arrangements and their decisions to adopt such schemes.

Design/methodology/approach

In this paper grounded theory-informed methods are employed, involving 56 in-depth interviews with informants from small and medium-sized enterprises (SMEs), banks and subject experts in the United Kingdom (UK) and Thailand. A category structure for the data is developed. The findings are then examined systematically from both a transaction cost economics (TCE) and non-TCE perspective.

Findings

SME members made sense of SCF through a core distinction between dyadic and triadic SCF arrangements. The former maintains independence between physical and financial supply chains, whereas the latter causes them to be closely coupled or even entangled. The SCF adoption decisions of SMEs were based on a consideration of four related aspects: relationality, awareness, control and context. The authors demonstrate the limits of TCE in explaining the findings, leading to a proposed combined theory of the transactional and, importantly, non-transactional influences on how SMEs make decisions about SCF.

Practical implications

Focal firms wanting their SME suppliers and distributors to participate in triadic SCF (TSCF), i.e. reverse factoring and distributor finance, need to understand that transitioning to such schemes involves the unwinding of existing financing arrangements, which may be problematic for SMEs. Moreover, it is important to be aware of SMEs' concerns, such as about what accessing TSCF might signal to the focal firm about their financial health and about the potential loss of control that might result from entangling the physical and financial aspects of supply chains.

Originality/value

This paper unpack the perspectives of both SME suppliers and distributors of large focal firms in supply chains. These firms appear less concerned with the economic advantages (transaction costs) of SCF and more concerned with the relational consequences or non-transactional costs of participation in a TSCF arrangement. The dyadic-triadic distinction provides a new and meaningful way of categorising SCF mechanisms, which also broadens the service triads’ literature from a focus on outsourcing services for a focal firm's customers to outsourcing financing for its suppliers or distributors. The paper also addresses gaps identified by Gelsomino et al. (2016) regarding the need for a general theory of SCF, for empirically-based holistic studies of SCF applications, and a tool for selecting SCF mechanisms.

Details

International Journal of Operations & Production Management, vol. 42 no. 9
Type: Research Article
ISSN: 0144-3577

Keywords

Book part
Publication date: 16 August 2014

Anne-Maria Holma

This study provides a comprehensive framework of adaptation in triadic business relationship settings in the service sector. The framework is based on the industrial network…

Abstract

This study provides a comprehensive framework of adaptation in triadic business relationship settings in the service sector. The framework is based on the industrial network approach (see, e.g., Axelsson & Easton, 1992; Håkansson & Snehota, 1995a). The study describes how adaptations initiate, how they progress, and what the outcomes of these adaptations are. Furthermore, the framework takes into account how adaptations spread in triadic relationship settings. The empirical context is corporate travel management, which is a chain of activities where an industrial enterprise, and its preferred travel agency and service supplier partners combine their resources. The scientific philosophy, on which the knowledge creation is based, is realist ontology. Epistemologically, the study relies on constructionist processes and interpretation. Case studies with in-depth interviews are the main source of data.

Details

Deep Knowledge of B2B Relationships within and Across Borders
Type: Book
ISBN: 978-1-78190-858-7

Keywords

Article
Publication date: 18 January 2013

Max Finne and Jan Holmström

The purpose of this paper is to explore servitization in the context of the service supply chain, particularly the effects of the relationship between the subsystem supplier and…

3047

Abstract

Purpose

The purpose of this paper is to explore servitization in the context of the service supply chain, particularly the effects of the relationship between the subsystem supplier and the end user on the supplier's as well as on the supply chain's ability to provide industrial services. In addition, it aims to present a solution to overcome the challenges of lack of this relationship.

Design/methodology/approach

A case study incorporating an explorative design science approach identifies a theoretically novel and practically relevant problem in the field of service supply chain management. The study combines empirical data collection; systematic conceptualization of means and ends; evaluation of proposed solutions in iterative‐ and action‐oriented cycles; and theoretical explanation of the observed phenomena and outcomes.

Findings

By establishing a triadic operational model with an integrator and end user, the subsystem supplier can servitize within a supply chain in which the end user relationship is controlled by the integrator. This enables the combining of critical service provision capabilities: supplier's maintenance‐related capabilities and integrator's end user access.

Research limitations/implications

Further research is needed to determine the importance of managing the transition to subsystem suppliers in different types of industrial service supply chains. Because these observations and proposals are based on a single case study, the authors cannot draw conclusions as to how they apply to manufacturers in different problem situations.

Practical implications

The paper presents a decision‐making procedure that describes how a subsystem supplier opting for cooperation in the service supply chain can formulate a coherent set of triadic operational models with intermediaries and end users.

Originality/value

The paper shows how servitization takes place on supply chain level.

Details

Supply Chain Management: An International Journal, vol. 18 no. 1
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 28 August 2023

Moh'd Anwer AL-Shboul

This study tries to investigate and examine the extent of power dynamics of diverse actors in supply chains (SCs) in affecting the (un)stable connections within the logistics…

150

Abstract

Purpose

This study tries to investigate and examine the extent of power dynamics of diverse actors in supply chains (SCs) in affecting the (un)stable connections within the logistics service providers (LSPs) triad in manufacturing firms (MFs) in Australia as a developed country.

Design/methodology/approach

This study adopted a qualitative research approach by conducting 28 face-to-face semi-structured interviews, which was performed over a five-month period, between May and October 2022 with the targeted respondents via several Case MFs studies focusing on the triadic SC relationships through the power dynamics of LSPs (e.g. Case 1/MF-A, Case 2/MF-B, Case 3/MF-C, Case 4/MF-D and Case 5/MF-E) in order to gather primary data from the perspectives of logistics service clients, providers and suppliers that are dealing with MFs in Australia country. Interviewees were selected based on their knowledge, professional, expertise and tasks that are related to the study context if they are from MFs and/or LSPs. The researchers performed NVivo 12 Software as a tool for analyzing the collected primary data from the targeted interviewees, thus using a purposive sampling approach. This study constitutes a cornerstone for a conceptual exploration of the field of B2B and as it expands existing fields of broadcasting and investigation that focus on B2C within the manufacturing firms' context.

Findings

The findings clearly show the importance of stable purchase volume and resource ability for a focal company in the logistics triad. This leads it to have a strong long-term relationship through monitoring its partners and curbing evolutions in different dyads.

Practical implications

Identifying influential factors offers complementary insights to practitioners for depicting the SC relationship dynamics using the dominant power used by logistics service providers. Such findings encourage investigating an issues in emerging countries.

Originality/value

The study provides an extending novel piece of work on how to establish the relational embeddedness of two dyads through the power dynamics of the dominant player represented by LSPs that can significantly affect the triadic SC relationships in manufacturing firms (MFs). Such a perspective seems not to be similar to the classical standpoint in the SCM literature, in which the LSPs as a dominant and dynamic power derived from bridging the customer-supplier sustainable dyads relationship in the MFs context.

Article
Publication date: 11 September 2020

Alexander E. Ellinger, Frank G. Adams, George R. Franke, Gregory D. Herrin, Tyler E. deCoster and Karli E. Filips

Supply chain management (SCM) proficiency is generally associated with superior business performance. Yet, SCM research continues to focus predominantly on the performance of…

Abstract

Purpose

Supply chain management (SCM) proficiency is generally associated with superior business performance. Yet, SCM research continues to focus predominantly on the performance of individual firms, rather than on the collective performance of multiple supply chain participants as espoused by the extended enterprise (EE) concept. In response to calls for quantitative studies that examine the collective performance of multiple supply chain participants, this research study compares the combined performance of triads comprising focal firms recognized for their relative SCM proficiency and their upstream (supplier) and downstream (customer) supply chain partners with that of their close industry competitors' triads.

Design/methodology/approach

The triadic, longitudinal examination of multiple supply chain participants' collective performance utilized archival financial data of the period 2007–2017 from the Compustat database and the supply chain (SPLC) function of Bloomberg.

Findings

Findings of this study indicated that supply chain triads that included focal firms recognized for their relative SCM proficiency experienced significantly lower sales and general administrative expenses and significantly higher productivity, return on assets and profitability over time than their close industry competitors' triads. However, contrary to expectations, the performance advantages identified did not extend to revenue growth.

Research limitations/implications

Supply chain triads cannot fully represent entire supply chains or EEs. However, this study’s triadic analysis can be viewed as a practically achievable proxy for further validating the EE concept. Moreover, based on assertions that triadic studies are suitable for SCM research and on empirical studies that consistently show individual firms recognized for their relative SCM proficiency outperform competitors, the authors contend that the study’s findings appropriately corroborate the value of the EE concept.

Practical implications

Because such empirical evidence is so rare, the consistent, collective performance advantages identified in this study should be highly significant to managers.

Originality/value

Robust, longitudinal evidence that supply chain triads which include focal firms recognized for relative SCM proficiency collectively outperform their close industry competitors' triads extends generally accepted associations between SCM proficiency and business performance, suggesting that the application of extended resource-based view (ERBV) in supply chain contexts warrants further examination and further substantiates the efficacy of the EE concept.

Details

International Journal of Physical Distribution & Logistics Management, vol. 50 no. 7/8
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 4 July 2016

Walter Odongo, Manoj Dora, Adrienn Molnár, Duncan Ongeng and Xavier Gellynck

A good supply chain relationship quality (RQ) is a crucial precursor for any stable exchange relationship which ensures relationship continuity. Although empirical research…

3303

Abstract

Purpose

A good supply chain relationship quality (RQ) is a crucial precursor for any stable exchange relationship which ensures relationship continuity. Although empirical research suggests that strengthening RQ improves supply chain performance (SCP), most studies have focused on dyadic business relationships. To fully understand the relational behaviour of a firm embedded in a supply chain, we need to look beyond the dyad into triads. The purpose of this paper is to investigate how SCP is influenced by RQ in a triadic agribusiness supply chain.

Design/methodology/approach

Evidence is drawn from a quantitative survey of 150 agribusiness firms in the maize supply chain in Uganda. Data were collected in triadic context from 50 direct supply chains each composing of a supplier, focal firm and customer. Multi-group structural equations modelling (SEM) was used to assess the differences in perception on the influence of RQ on SCP amongst the supply chain members.

Findings

Results provides empirical support for the positive influence of RQ on SCP. SEM reveals differences in perception between the upstream and downstream and amongst the supply chains members. While focal firms considered conflict, coercive power, commitment and trust to be important; suppliers considered trust, dependency and non-coercive power; and customers considered trust, dependency and coercive power to be important RQ factors affecting SCP.

Practical implications

For agribusiness managers to enhance business performance there is need to cultivate strong and mutual relationship with supply chain members. It is also important to know how to handle conflicts and use of power so as to realise the benefits of supply chain relationships.

Originality/value

The paper is novel in that it assesses SCP in a triadic context in an agribusiness sector from a developing country context. The authors used novel approaches including analysis of a triad, and multiple groups SEM to assess perceptions of each supply chain member’s.

Details

British Food Journal, vol. 118 no. 7
Type: Research Article
ISSN: 0007-070X

Keywords

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