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1 – 10 of over 23000Daniel Prajogo, Mesbahuddin Chowdhury, Anand Nair and T.C.E. Cheng
Buyer’s dependence on its key supplier for critical resources and capabilities is generally considered as creating a disadvantageous position for the buyer and undermining its…
Abstract
Purpose
Buyer’s dependence on its key supplier for critical resources and capabilities is generally considered as creating a disadvantageous position for the buyer and undermining its business performance. This study aims to invoke arguments from resource dependence theory (RDT) to examine if this adverse effect of buyer’s dependence is moderated by the buyer’s absorptive capacity and a long-term relationship with the key supplier.
Design/methodology/approach
Using a data set drawn from 204 manufacturing firms in Australia, this study tested the proposed model using hierarchical moderated regression analysis.
Findings
The finding shows that buyer’s dependence on its key supplier by itself has no significant effect on the buyer’s business performance. However, the link between buyer’s dependence on its key supplier and performance is positively moderated by the level of the buyer’s absorptive capacity, as well as by the joint effect of buyer’s absorptive capacity and a long-term relationship with the key supplier.
Practical implications
As buyer’s dependence is often difficult to avoid, the finding of this study is instructive in showing managers how to strategically mitigate the effect of their firm’s dependence on a key supplier; indeed, turn it into a positive outcome.
Originality/value
This is the first study, which integrates the internal and external resources in mitigating the effect of buyer’s dependence on the supplier.
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Jae‐Eun Chung, Brenda Sternquist and Zhengyi Chen
The purpose of this study is to compare two models, traditional‐ and performance‐based, of Japanese retailers' channel relationships. The traditional model proposes Japanese…
Abstract
Purpose
The purpose of this study is to compare two models, traditional‐ and performance‐based, of Japanese retailers' channel relationships. The traditional model proposes Japanese retailers' long‐term orientation with their supplier is an antecedent of Japanese retailers' trust and dependence on the supplier. The performance model, on the other hand, proposes significant influences of suppliers' role performance and dependence on channel relationships.
Design/methodology/approach
Data were collected from Japanese department store buyers and specialty store buyers. A total of 141 cases were analyzed using the EQS structural equation modeling software.
Findings
Results show that the traditional model had a higher explanatory power than the performance model, which indicates the strong influence of culture on Japanese channel relationships.
Research limitations/implications
Some measures have relatively poor psychometric properties. A further study should refine these measurements by exploring the meanings of these constructs from the cultural context.
Originality/value
This study provides insight into how cultural influences are embedded in distribution channel relationships.
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Recent studies indicating long term dependence in stock market indices have found a mean reversion process. However, studies using rescaled range (R/S) analysis have not found…
Abstract
Recent studies indicating long term dependence in stock market indices have found a mean reversion process. However, studies using rescaled range (R/S) analysis have not found evidence of a mean reversion or ergodic process. Instead, evidence from these studies indicate either long term persistence in a nonperiodic cycle or short run Markovian dependence with no long term persistence. The purpose of this paper is to study the issue of long term dependence using rescaled range analysis. The empirical results obtained in this study support the persistent dependence/nonperiodic cycle results and suggest that the dependence arises from the general economic cycle.
Zhizhong Jiang, Stephan C. Henneberg and Peter Naudé
There is conflicting evidence of the extent to which business relationships in the UK construction industry are based on trust between closely collaborating parties or…
Abstract
Purpose
There is conflicting evidence of the extent to which business relationships in the UK construction industry are based on trust between closely collaborating parties or alternatively are more adversarial in nature, based on dependence between the parties. This study seeks to provide empirical evidence about the effects of trust and dependence in business relationships in this industry.
Design/methodology/approach
A large quantitative survey was conducted with buying firms, resulting in a total of 636 usable responses from 404 firms to test a model using structural equation modelling. The authors test the extent to which trust and dependence act as antecedents to four dimensions identified from the literature as being important determinants of relationship quality: commitment, communication, satisfaction, and long‐term orientation.
Findings
The results provide good evidence for the hypotheses in the authors' model: relational characteristics associated with relationship quality are mainly driven by the interpersonal trust between buyers and their suppliers. Interorganisational dependence, evidence of more adversarial relationships, has either no direct impact on relational consequences or at best far less impact than trust.
Originality/value
This research substantiates trust as a key factor influencing relational characteristics associated with relationship quality in the UK construction industry. The findings confirm the earlier work in this industry that trust is an important strategic tool in supplier relationship management.
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Baofeng Huo, Chen Liu, Mingu Kang and Xiande Zhao
The purpose of this paper is to develop a theoretical framework involving dependence, relationship commitment, logistics outsourcing and service quality to exhibit the roles of…
Abstract
Purpose
The purpose of this paper is to develop a theoretical framework involving dependence, relationship commitment, logistics outsourcing and service quality to exhibit the roles of the relational factors involved in logistics outsourcing and their outcomes.
Design/methodology/approach
Based on data collected from 361 companies in Greater China, the authors use the structural equation model approach to examine the hypothesized relationships.
Findings
Both normative and instrumental relationship commitment are necessary for third party logistics (3PL) users to cope with their goal dependence on 3PL providers. However, only normative relationship commitment is necessary when users perceive switch dependence. Normative relationship commitment also plays a more important role than instrumental relationship commitment in facilitating the adoption of 3PL logistic outsourcing. In addition, both basic and advanced outsourcing practices have a positive effect on service quality.
Originality/value
This study contributes to both 3PL theories and practices by clarifying how relationships between 3PL users and providers in China are managed.
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Craig Ellis and Patrick Wilson
To develop an integrated approach to forecasting spot foreign exchange rates by incorporating some principles underlying long‐term dependence.
Abstract
Purpose
To develop an integrated approach to forecasting spot foreign exchange rates by incorporating some principles underlying long‐term dependence.
Design/methodology/approach
The paper utilises the random‐walk framework to develop a stochastic forecast model wherein the sign (positive or negative) and magnitude (strong or weak) of dependence can be separately controlled. The integrated model demonstrates superior forecast performance over a conventional random walk.
Findings
Using spot log prices and log price changes (returns) for the USD/AUD exchange rate, the initial outcomes of the study suggest that a priori knowledge of the underlying sign and magnitude of long‐term dependence yields out‐of‐sample forecasts superior to those of a random walk model.
Research limitations/implications
Independent assessment of the contribution to forecast accuracy of controlling for the sign of dependence between successive price changes only shows little additional improvement in out‐of‐sample forecast performance over the random walk null.
Practical implications
The findings of the study have important ramifications for managerial finance as they provide important insights on expected future currency returns with potential advantages in currency hedging and/or timing of international capital flows.
Originality/value
The contribution of this paper is to develop an original forecast model explicitly incorporating the conceptual and theoretical characteristics of long‐term dependent time series. By separating the key characteristics and modelling each individually, the contribution of each to forecast accuracy can be evaluated.
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Radhika Prosad Datta and Ranajoy Bhattacharyya
The purpose of this paper is to determine whether foreign exchange markets in India have become more efficient over time. There were two major developments in India’s foreign…
Abstract
Purpose
The purpose of this paper is to determine whether foreign exchange markets in India have become more efficient over time. There were two major developments in India’s foreign exchange market since the 1980s: first, a shift in foreign exchange management regime from a basket peg to a free float; and second, a rapid phase of economic liberalization since the mid-1990s. The paper attempts to find out whether the market efficiency of foreign exchange markets is affected by these developments. The paper mainly uses the well-known Hurst exponent calculated through corrected empirical R over S analysis to determine whether the exchange rates possess long memory. The robustness of the method is tested by calculating the Hurst exponent through two other prevalent methods in the literature.
Design/methodology/approach
The authors apply the corrected empirical Hurst exponent which employs the Anis Lloyd correction with the modification suggested by Weron. The sensitivity of the results is then tested by replicating the calculations using the detrended fluctuation analysis and Robinson’s method.
Findings
All the methods show that: first, there is no significant change in the overall efficiency of the foreign exchange market vis a vis the US$ for the time period from 1980 to 2017. Second, neither regime shifts nor calculations over sub-time periods is able to identify significant change in the efficiency level of the market for the US$ exchange rate. Third, efficiency of different exchange rate markets are different over the time period 1999–2017. The US$ market has unequivocally more long run memory compared to the GBP, Yen and EURO markets. Fourth, the results are robust to the method used for calculations.
Originality/value
Does the efficiency of asset markets evolve over time? This paper attempts to answer this question. In the process, the paper studies the effect of regime shifts and progressive globalization on the ability of the market to internalize information.
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The purpose of this paper is to test the efficient market hypothesis for major Indian sectoral indices by means of long memory approach in both time domain and frequency domain…
Abstract
Purpose
The purpose of this paper is to test the efficient market hypothesis for major Indian sectoral indices by means of long memory approach in both time domain and frequency domain. This paper also tests the accuracy of the detrended fluctuation analysis (DFA) approach and the local Whittle (LW) approach by means of Monte Carlo simulation experiments.
Design/methodology/approach
The author applies the DFA approach for the computation of the scaling exponent in the time domain. The robustness of the results is tested by the computation of the scaling exponent in the frequency domain by means of the LW estimator. The author applies moving sub-sample approach on DFA to study the evolution of market efficiency in Indian sectoral indices.
Findings
The Monte Carlo simulation experiments indicate that the DFA approach and the LW approach provides good estimates of the scaling exponent as the sample size increases. The author also finds that the efficiency characteristics of Indian sectoral indices and their stages of development are dynamic in nature.
Originality/value
This paper has both methodological and empirical originality. On the methodological side, the author tests the small sample properties of the DFA and the LW approaches by using simulated series of fractional Gaussian noise and find that both the approach possesses superior properties in terms of capturing the scaling behavior of asset prices. On the empirical side, the author studies the evolution of long-range dependence characteristics in Indian sectoral indices.
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Irene Gil‐Saura, Maria‐Eugenia Ruiz‐Molina and Francisco Arteaga‐Moreno
In organizational markets, many companies tend to reduce the number of providers to focus on establishing relationships with few of them. The purpose of this paper is to analyze…
Abstract
Purpose
In organizational markets, many companies tend to reduce the number of providers to focus on establishing relationships with few of them. The purpose of this paper is to analyze the influence of relationship value and dependence of supplier on long‐term orientation and customer loyalty in the setting of relationships between travel agencies and their main providers.
Design/methodology/approach
A partial least square regression is performed to test a proposed model that links several relational variables with outcomes in terms of customer loyalty.
Findings
Results provide support for the positive indirect influence of relationship value on long‐term orientation, while customer dependence of the main provider does not seem to exert a significant effect. These findings support the importance of value creation for providers in their relationships with their customers.
Practical implications
This study allows us to suggest that service companies, such as travel agents, should concentrate on investing in generating benefits for customers through offering value‐added services, thus providing evidence that the supplier has no incentives to opportunistic behaviors.
Originality/value
Although literature has reported the importance of both relational and market conditions for customer‐supplier relationships that involve physical distribution of goods and might require important investments in technological solutions to coordinate their relationships, little attention has been paid to service companies.
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Kareem Abdul Waheed and Sanjaya S. Gaur
In the current highly competitive marketing environment, there are few situations in which customers attempt to build and maintain relationships with marketers. In large‐format…
Abstract
Purpose
In the current highly competitive marketing environment, there are few situations in which customers attempt to build and maintain relationships with marketers. In large‐format retail situations, customers maintain a non‐personal association with the store and personal relationships with salespersons. By contrast, many customers in developing countries such as India build and maintain long‐term relationships directly with the small‐scale retailers, who happen to be the owners as well as the salespersons of the store. The purpose of this paper is to focus on customer dependence on the retailer, a rare phenomenon which is evident in rural areas of India even today.
Design/methodology/approach
The paper is based on an empirical study of a buyer‐seller relationship between a farmer and a chemical fertilizer retailer, which is a common interpersonal business constellation in India.
Findings
The paper identifies the determinants of customer dependence as customer perceived market uncertainty, product importance and product familiarity. The paper also explains the positive effects of customer dependence on customer trust.
Originality/value
Traditionally, customer dependence is viewed as a structural constraint in relationship outcomes. The effect of customer dependence on power, control and opportunistic behavior in the buyer‐seller relationship context is well researched. This paper applies an interpersonal trust‐development perspective and views customer dependence as a positive relationship construct and fills an apparent gap in research on customer dependence in the context of the interpersonal buyer‐seller relationship.
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