Search results

Firms are subject to power from both upstream and downstream partners; those partners may have different or even opposing impacts on supply chain relationships and financial performance. The purpose of this study is to investigate how upstream and downstream dependence structures affect a firm's financial performance through upstream and downstream relational depth (DEP) and relationship extendedness (EXT).

Data representing both upstream and downstream supply chain perspectives was collected using a multiple-respondent survey and was further augmented using financial performance data from an archival database.

Dependence advantages (ADVs) and disadvantages from upstream and downstream partners affect relational mechanisms and firm performance differently. Only downstream ADV will enhance a firm's DEP and EXT and subsequently affect firm's revenue and profit. Contradictory to widely held belief, the results reveal that firms that maintain long-term relationships with buyers and suppliers may experience lower revenue/profit.

This research represents a significant step in understanding the economic ramifications of dependence by (1) highlighting the difference between upstream and downstream supply chain dependence structure and (2) understanding the indirect effects of dependence structure on financial performance.

The focus of this article is upstream relational capital, the intangible value of a firm's business relations with its suppliers. The paper aims to propose and test a valuation model of an organization's upstream relational capital that incorporates the leveraging impact of IT investments.

A survey was carried out of 159 CEOs in the wireless telecommunication industry.

Evidence suggests that IT and non‐IT factors contribute to explain abnormal return on relational investments.

This exploratory study is based on a single industry and relational capital is valued by CEO using psychometric scales.

This study shows how IT‐related information helps external investors to value a firm's upstream relationship capital and hence assess the impact of interorganizational IT investments on the firm's valuation.

These results militate for more transparency in regard to relational investments and the relational context of the firm in the management discussion section of the annual report.

Prior studies on major customer relationships (i.e. embedded ties) focus mostly on the ties between a focal firm and its immediate customers, hindering the understanding of the influence of indirect ties (both upstream and downstream) on a focal firm's operational performance. In this study, the authors analyze how a focal firm's upstream and downstream connectedness and network location affect its productive efficiency.

Utilizing Compustat segment files, the authors constructed large-scale major customer networks covering the period 2007–2013. The authors applied a fixed-effect panel stochastic frontier model to conduct estimation. Moreover, the authors applied an endogenous panel stochastic frontier model to ensure the robustness of the main analysis.

The authors found that a focal firm's upstream and downstream connectedness both have a positive influence on a firm's productive efficiency, whereas a focal firm's centeredness in the major customer network has a negative influence on productive efficiency. Moreover, it was found that centeredness lessens the positive influences of upstream and downstream connectedness on productive efficiency. The post hoc analysis further confirmed that a focal firm's indirect ties, both upstream and downstream, positively influence a focal firm's productive efficiency.

This study contributes to the literature by evaluating the relative effectiveness of a focal firm's direct and indirect major customer ties, both upstream and downstream. More importantly, this study suggests potential exploitation–exploration trade-offs (i.e. productive efficiency vs. innovation) triggered by a firm's network location.

The purpose of this paper is to establish the influence that relationship variables have on construction supply chains. The objective is to show where thoughtful use of relationship marketing (RM) techniques can benefit construction supply chains.

A questionnaire developed from a focus group outcome and literature concerning RM was used to extract information about commitment, trust and satisfaction in upstream and downstream construction supply chain relationships. A cohort of 898 construction industry managers developed from several comprehensive sample frames responded to the questionnaire. Data was analysed using exploratory and non‐parametric confirmatory statistical techniques, including Spearman's ρ non‐parametric correlation matrix, Kruskal‐Wallis test, Mann‐Whitney U test and principal axis factor analysis.

The results indicate that construction actors differentiate between relationship and traditional marketing factors in their supply chain activities. It is shown they engender specific RM techniques in their construction project environment.

RM has the potential to provide organisations with significant supply chain benefits, particularly long‐term value to clients. Benefit may manifest from commitment, trust and satisfaction. These three variables are all fundamental to supply chain activities.

The paper uses a RM knowledge base to develop an increased understanding of supply chain benefit variables. The value of the paper is that it enables construction stakeholders with the tools to develop long‐term relationships in their heterogeneous construction environment.

Building on the transaction cost theory and power structure literature, this paper aims to investigate the extent to which firms use two safeguarding mechanisms (supply chain relational investments and electronic collaboration) in different network dependency contexts in order to protect their portfolios of business relationships.

Empirical evidence is gathered though a survey data conducted with 159 firms in the wireless communication sector. The paper tests the assumption that the two safeguarding mechanisms are used to a greater extent in interdependency‐intensive networks than in other supply chain contexts.

This empirical study suggests that: in a network‐dependent context, relational investments allow firms to safeguard their portfolios of relationships; electronic collaboration seems to be a safeguarding mechanism for firms in downstream‐dependent network contexts; in general, firms appear to use both relational investments and electronic collaboration to manage their relationships in a supply chain network; and the knowledge‐based theory may explain the strong relationship between upstream and downstream use of electronic collaboration.

Overall, the present study complements the extant literature on supply chain management and inter‐firm electronic collaboration by showing how an important structural characteristic of supply chain networks (i.e. dependency) operates on the choice of using two key safeguarding mechanisms.

Results stress the importance of these safeguarding mechanisms in joint actions such as collaborative planning, forecasting and replenishment.

The paper addresses interdependencies from a network perspective which encompasses the firms' complete portfolio of relationships.

The aim in this paper is to describe and explain the flexibility offered by different business models adopted by different firms as they strive to achieve higher levels of business performance.

Cross‐sectional research is used to investigate a matched pair sample of 20 high‐performing and 20 low‐performing firms in the UK. The relationship between business model architectures and focus are examined and their implications for flexibility are illustrated and discussed.

The flexibility offered by different business models is explored through the way organisations select and integrate three inter‐related elements to devise flexible business models, i.e. network influence, transactional relationships, and corporate ownership. Affected by situated practices in each business network and the market position or business size, companies select and integrate various configurations of these elements to respond to the constantly evolving demands of end‐customers.

Although based upon a cross‐sectional analysis of a matched pair sample, the concept of “flexible business models” has far wider managerial implications. The efficiency of the proposed approach is achieved through the reduction into three inter‐related elements that allow flexible configuration and re‐adjustment.

Companies can use the flexible business model approach to examine their own selection and integration of network influence, transactional relationships and corporate ownership and scrutinise their flexibility and performance in the marketplace.

The contribution of this paper is the development of the flexible business models concept, based on an empirical investigation of firms in the UK.

Although trust is discussed widely in the literature, there are still discrepancies in the existing conceptualisations of the trust concept. These are usually either unidirectional or bi‐directional, and a limited or narrow approach is usually applied or taken into consideration. There is an apparent lack of mutual and simultaneous considerations beyond the dyadic business relationship. It is argued that an approach beyond dyadic business relationships is necessary to truly understand the trust between two actors in a marketing channel. In the first place, the trust in other upstream and downstream dyadic business relationships affects the trust in the dyad at focus. At the same time, the dyadic business relationship at focus is affected by upstream and downstream trust in other dyadic business relationships. Therefore, a generic model of the synchronised trust chain concept is introduced, as well as managerial implications and research proposals in the area.

This study aims to identify the types of relationships that intermediaries form with their suppliers and customers in the apparel supply chain and their implications for performance.

Cluster analysis was conducted on the supplier and customer relationships of 90 trade intermediaries in the apparel industry.

Three configurations were identified: moderately dependent relationships with suppliers and customers and moderate flexibility upstream; highly dependent relationships with suppliers and customers but low flexibility upstream; and relationships with suppliers and customers that are low in dependence. Performance of firms using these configurations differed. Firms that cultivated some dependence upstream and downstream performed best. Firms with highly dependent relationships with suppliers and customers but low flexibility upstream performed almost as well. This group was highly skilled in relationship management. Firms that maintained low dependence with suppliers and customers performed the worst.

Findings were based on a limited sample of 90 firms. Relationship configurations may differ in other industries, e.g. car industry.

For a supply chain to be effective, firms need to consider how they structure the relationships along the supply chain to facilitate the flow of information, goods and resources.

Prior research has considered relationships as independent dyads. This study looks at tripartite relationships involving suppliers and customers in the supply chain.

This paper aims to purport deeper understanding of, and instigate theoretical elaboration to, multidimensional value created through different reverse supply chain (RSC) relationships.

By capturing the relationships (and their differences) constituted and embedded in three “extreme” case studies from global used clothing supply chain, the sources of multidimensional values are explored in line with Dyer and Singh’s (1998) relational theory.

In the RSC, when downstream relationships are typically more opportunistic, value is created using inter-personal ways of knowledge sharing and through use of informal safeguards. In contrast, the upstream RSC relationships are more symbiotic, and value is created through more seamless (and routinized) knowledge sharing practices, and additional use of more formal transaction-specific controls or financial incentives as safeguarding instruments.

The use of consolidated case studies may affect the consistency in the findings presented. Another limitation relates to deriving propositions per each source presented in relational theory.

Practitioners particularly from industries whose global RSCs include different natures of relationships and multiple value incentives can be benefited through this study.

The paper extends the original sources of value creation prescribed in relational theory by contextualizing them in RSCs. It depicts how multidimensional values are created relationally by dyadic partners as the nature of relationship differs between upstream and downstream.

The purpose of this paper is to examine how contractor firms manage their relationships with extended supply chain tiers and investigate the range of ICT technologies used to facilitate such practices.

An on-line questionnaire survey was conducted to gather information about supply chain management operations, supplier relationship management and the ICT technologies used by contractor firms to manage their extended supply chain tiers.

The extended supply chain relationships of contractor firms are primarily composed of contractual, technical and financial entities, but findings suggest that the vision to consider extended supply chain firms when selecting suppliers are still myopic. Majority of ICT technologies are used between Tier 1 supply chain firms and there is an inconsistency in the number of technologies adopted with the extended supply chain tiers. Despite having a high involvement relationship with Tier 2 downstream firms, findings indicate a lack of use of ICT technologies to manage the organisational, personal and technological interactions with these firms.

On the basis of different relationship types this study develops an initial framework for management of supply chains that are facilitated by relevant ICT technologies.

This paper provides insights into the management of extended supply chain firms by contractor firms from a relationship-centric perspective and develops an initial framework for relationship-centric supply chain management.