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Under the guidance of Professor Wang Zhuquan’s channel-based working capital management concept, this paper, using a sample of A-listed companies from 2007 to 2013, aims to explore the possibility of measuring vendor relationships from the supply chain (channel) perspective for the first time, making universal testing for working capital management based on vendor relationships. Through systematically answering the question of who is the biggest beneficiary of working capital management based on vendor relationships and to discuss whether suppliers are more willing to provide “timely help” to weak enterprises or to exert an “icing on the cake” effect on strong enterprises, this paper provides a systematic explanation of the causes and economic consequences of working capital management based on vendor relationships.

The authors constructed three models to test the hypotheses of this study. Model (1) explores the cause of working capital management based on vendor relationship from three angles: market position, industry competition degree and property right. Models (2) and (3) examine the economic consequences of working capital management based on vendor relationship from the two aspects of alleviating financing constraints and improving enterprises’ sustained growth capability.

Working capital management based on vendor relationships has a more significant “timely help” effect on weak companies, which was proved by the inclination of companies with lower market positions, higher industrial competition and private ownerships to adopt working capital management based on vendor relationships. From the perspective of economic consequences, while China’s listed companies benefit generally from working capital management based on vendor relationships, the weak enterprises are the biggest beneficiaries. Based on vendor relationships, the weak enterprises can relieve financing constraints and improve continuous growth capacity. It provides further evidence that suppliers could provide “timely help” to weak enterprises.

The results of this study find that the competition between supply chains replaces the competition among enterprises, and suppliers are more willing to provide “timely help” to weak enterprises rather than to exert an “icing on the cake” effect on strong enterprises. In addition, the working capital management based on vendor relationships facilitates the cooperation of enterprises and suppliers and improves the overall efficiency of the supply chain.

Explains the linkage of vendor development and control as an integral factor of value on demand chain logistics. Presents a comparison of the traditional purchasing function with vendor development in. Provides the missing link of value chain by demand chain. Describes the supplier integration approach as a competitive corporate strategy in a conceptual synthesis by linking demand chain with order management, marketing, sales, channel management, pricing, service, etc. Analyses the vendor development strategy from three key dimensions. Further discusses the advantages of vendor development in the short run, bottom line performance increase, and long run revenue enhancing the value of an organisation. Also discusses the impact on demand chain from the costing point of view with elaboration on cost and pricing activities involving total cost of ownership, understanding supplier costs and target costing with target pricing commensurate with expectations of customers. Concludes with an emphasis on the importance of providing e‐learning and upgrading the skills of staff in order to expedite the adoption of vendor integration strategy in its demand chain logistics management.

The purpose of this paper is to explore the influence of PRINCE2 (PRoject IN Controlled Environments 2) standard on customer satisfaction jointly with vendor relationship management capability in the information technology outsourcing (ITO) context. This paper further tries to explore the above underlying mechanism by studying the mediating effect of deliverable quality.

This paper develops a mediated moderation model to explain the underlying influence processes of PRINCE2 standard, vendor relationship management capability and deliverable quality on ITO customer satisfaction. By conducting a pair-wise survey of 260 project managers in seven Iranian firms, the model and hypotheses are empirically tested with the partial least squares method.

Our results suggest that firms benefit more in terms of IT costs reduction when they have a higher level of complementary investment in an external standard, especially through an interplay effect of the external standard and internal relational aspect. Firms can make business processes more amenable to outsourcing and facilitate monitoring of vendor performance and effective coordination with vendors. More interestingly, we find that this interactive effect is fully mediated by deliverable quality, which, in turn, directly increases ITO customer satisfaction.

This study adds some new knowledge and provides new views to study ITO customer satisfaction by addressing the importance of PRINCE2 standard. This study further enhances our understanding in terms of the underlying pathway through which the PRINCE2 standard jointly affects customer satisfaction with vendor relationship management capability and deliverable quality. With the effort of explicitly explaining the complex mechanisms, this study helps ITO managers proactively escort outsourcing activities and projects.

Important evaluation criteria as they are perceived by quality managers in American and US‐based Japanese firms are examined. For this study, three different groups of companies contained within four industries were considered. They included American firms using a traditional approach to manufacturing management, Japanese firms operating in the United States, and American firms attempting a Japanese approach to manufacturing management. This study identified price, on‐time delivery, and the supplier′s product quality as the three major criteria for evaluating vendors. The attitudes of quality managers concerning the importance of these variables were counter to the impressions portrayed in the academic and managerial press. Also differing from the literature was how much the managers in these different types of firms linked the evaluation criteria and overall organisational performance.

The purpose of this paper is to explore the underlying mechanisms through which integration capability and learning capability influence IT outsourcing performance from vendor’s perspective.

This paper develops a moderated mediation model to explain the underlying influence processes of integration capability and learning capability on vendor’s performance. A sample of 237 vendor firms was obtained from China through two separated surveys. The hypotheses were tested with the partial least squares method and bias-corrected bootstrapping method.

The empirical results indicate that external integration capability (EIC) mediates the effect of internal integration capability (IIC) on vendor outsourcing performance, and the relationship between EIC and vendor performance is positively moderated by learning capability, while learning capability has a negative moderating effect on the link between IIC and vendor performance. Further, the conditional indirect effect is suggested. The indirect effect of IIC on vendor performance through EIC becomes non-significant when learning capability is low.

This study highlights the counterintuitive notion that learning capability may not always have uniformly positive effects and figure out the mechanism through which integration capability and learning capability can effectively improve IT outsourcing performance.

User‐vendor relationships are examined in a sector of the electronics industry where the manufacturing process is sensitive to the performance of vendors in terms of price, quality and delivery. Two similar user companies with different vendor management approaches are considered and the effects these have on vendor performance and the subsequent results for aspects of the companies' performance examined. Vendors supplying both companies were interviewed on the rationale of their behaviour towards the companies. It is shown how, for this type of manufacturing process, forgoing short‐term price opportunities by developing long‐term relationships with vendors can lead to greater overall benefits for the manufacturing process.

The purpose of this paper is to provide a “trait based approach” for vendor selection and evaluation for expensive procurements in large businesses through a simple and easy‐to‐use mathematical model using safety, quality, delivery and cost criteria. Design/methodology/approach – We use 16 traits addressing safety (S), quality (Q), delivery (D) and cost (C) areas for evaluating performance of a vendor on a linear 10 point scale. We start with evaluating each “supplier‐supply item” combination and compute gross averages for each of the SQDC areas and finally arrive at an “Overall Performance Index” for each supplier‐supply item combination. These indices form a “Vendor Performance Dashboard” for decision making. Findings – The case study shows that the proposed method is quick and easy to adopt, and provides a logical framework for vendor selection and management, based on performance in the four critical (SQDC) areas. Research limitations/implications – A lot of monotonous computations are required for the proposed vendor evaluation process. Hence, the scope for software development warrants further investigation. There is also a need to develop a process for weighting the different SQDC elements for application in different industry/market contexts. Originality/value – This paper presents a unique and simple approach for generating dashboard data for decisions regarding evaluation of vendors and distribution of sub‐contracts in a dynamic technology intensive market with practical examples. The proposed model for vendor selection and determination of order sizes is less dependent on complex algorithms and more practical and logically framed than existing models.

Adaptation is often seen as a key competitive advantage for outsourcing vendors. Outsourcing research has often assumed that vendor capabilities are static. However, as a result of uncertainties and/or changes in the client environment, vendors need to be able to adapt their outsourcing capabilities. The aim of our research is to compare two contrasting outsourcing approaches and illustrate how an adaptive approach may deliver better results for clients in the long term.

The paper uses a combination of literature and case study research. A retrospective case study approach was adopted, using interviews, observations and analysis of reports. Two case studies utilizing contrasting clients approaches were investigated and compared. In one of the case studies, the client reorganized activities first and then outsourced them, while in the other, the client did the reverse – outsourced first and then reorganized.

The findings indicate that reorganizing first and outsourcing afterwards contributes to a more controlled implementation, which results in a more defined and stable set of vendor outsourcing capabilities that contributed to short-term success. In contrast, outsourcing first and reorganizing later demonstrates a less controlled redesign of the client’s organizational structure, which requires a malleable set of outsourcing capabilities to accommodate future change. The latter strategic manoeuver results in an extended adaptation period, as some capabilities need to be developed over time. However, it may improve success over time as subsequent changes in the client environment can be catered for in a better way.

Only two explorative case studies were performed, limiting confidence in the degree of generalization of the results. We plea for more research on the effect of context dependency as various contingencies may impact the adaptation of outsourcing capabilities; for example, the volatility of the client’s market or the stability of the technology concerned.

When a client applies a proactive manoeuver, reorganizing first and then applying outsourcing, the number of adaptive capabilities required of the outsourcing vendor is reduced, limiting the risk for the client in the short term. In the longer term, however, subsequent change requirements may be less well-accommodated.

Strategic manoeuvers within an outsourcing context have received limited attention in research. As far as we know, this is the first empirical research that investigates the benefits of vendors having adaptive capability.

The use of Internet of Things (IoT) and networks has built a potential impact on the product cost and time in a company’s manufacturing process. These IoT solutions provide end-to-end visibility and faster introduction of merchandise and supplier in the market. The main aim of this research paper is to supply products with improved quality and cheaper price, whereas the rising response and quality of the client service.

This paper designs and develops two cases for selecting the most efficient vendor while keeping in mind the profit and cost constraints in optimization.

Outsourcing is a vital parameter to cut back the price and maximize the profit of the manufacturer. Therefore, the integration of supply chain with IoT can provide a solution to the cost optimization and supplier/vendor selection problems in supply chain management.

The results show that the models are quite realistic and can help the IoT-based manufacturing units to make strategic decisions regarding product manufacturing and distribution.

The authors can further extend the model to derive the retailer’s profit function and develop the end product cost to the consumers and hence make it a n-level multi-vendor selection model for IoT-based systems.

The right choice of vendor for IoT-enabled business is a crucial concern. In this paper, the authors designed and developed multi-vendor models with in-house production and outsourcing decisions to meet the demand along with the vendor selection. The variable demands and designed variable unit cost function and batch order are set to make vendor selection more realistic.

Finance and accounting (FA) offshore outsourcing is a growing trend involving a relocation of business processes to Asia but only few studies focus on understanding the issues that underlie the relocation of FA services. This paper aims to provide understanding of transaction costs economics (TCE) issues in FA offshore outsourcing using a case study of the Malaysia outsourcing industry which is growing and experiencing significant change.

This study uses a qualitative case study approach. Interviews cover several foreign firms, which are based in Malaysia and involved in FA offshore outsourcing services worldwide. Interviews also include related regulatory bodies in Malaysia.

Using TCE and management control theoretical framework, findings indicate issues and challenges faced by the firms and the need for contract management skills to mitigate the issues.

This study is limited to a broad discussion of FA offshore outsourcing, TCE and contract management but it could be a basis for future studies on specific issues of managing attrition in FA offshore outsourcing. This study contributes to prior works in TCE and FA offshore outsourcing by establishing controls to minimise costs at contact, contract and control stage. Specifically, this study emphasises contract management such as negotiating contract and using long‐term contractual arrangement.

This study not only identifies TCE issues in offshore FA outsourcing, but also provides suggestions for minimising transaction costs. For example, firms should consider the type of transaction costs involved and plan for appropriate contract management to mitigate the costs.

There is no study yet that discusses in‐depth the issues of TCE in FA offshore outsourcing especially in Malaysia and the need for contract management in mitigating such issues.