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Book part
Publication date: 1 November 2008

Thomas Ritter and Achim Walter

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…

Abstract

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.

Details

Creating and managing superior customer value
Type: Book
ISBN: 978-1-84855-173-2

Article
Publication date: 4 June 2024

Lu Yang, Baofeng Huo and Yuxiao Ye

This study aims to empirically test the direct effects of three types of information technology (IT) use on three dimensions of supply chain coordination (SCC). It further…

Abstract

Purpose

This study aims to empirically test the direct effects of three types of information technology (IT) use on three dimensions of supply chain coordination (SCC). It further explores the spillover effects of IT use on coordination beyond its domain across the SC. Besides, this study probes into the moderating effects of environmental uncertainty (EU).

Design/methodology/approach

Structural equation modelling (SEM) is used to examine data collected from 202 firms in Hong Kong. Furthermore, multi-group SEM analysis with a series of invariance tests was used to test the moderating effects of EU.

Findings

Internal, supplier and customer IT use have direct effects on internal, supplier and customer coordination, respectively. Besides, IT use generates forward spillover effects beyond its domain along the forward physical flow in an SC. EU positively moderates the relationships between external IT use and SCC but does not shape the effectiveness of internal IT use in enhancing SCC. Moreover, under a high EU, the spillover effects of IT use on coordination can be intensified. Besides, the spillover effects further expand to benefit coordination on a larger scale of the SC under a high EU.

Originality/value

This study contributes by revealing that in addition to direct effects, IT use in a specific domain could generate spillover effects on coordination beyond its domain throughout an SC. More importantly, it contributes by explaining the difference in the effectiveness of IT use under different levels of EU using multi-group SEM analysis.

Details

Journal of Business & Industrial Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0885-8624

Keywords

Open Access
Article
Publication date: 18 June 2024

Debora Chelestino Kisinga, Alban Dismas Mchopa and Leonada Raphael Mwagike

This paper aims to investigate the effect of supplier relationship management (SRM) on the business performance of small-scale grapes processing firms in Dodoma, Tanzania. The…

Abstract

Purpose

This paper aims to investigate the effect of supplier relationship management (SRM) on the business performance of small-scale grapes processing firms in Dodoma, Tanzania. The paper also examines the moderating role of logistics capabilities in the relationship between SRM and business performance.

Design/methodology/approach

This research uses a cross-sectional survey design. A structured questionnaire was used to collect data from 202 small-scale grape processing firms. The data were analysed through descriptive and structural equation modelling.

Findings

The findings revealed that buyer-supplier relationships, supplier development and supplier selection were positively and significantly related to business performance. Furthermore, knowledge transfer had no relationship with business performance. On the other hand, the findings showed that logistics capabilities significantly moderated the relationship between SRM and business performance.

Research limitations/implications

The study was cross-sectional, conducted only in Tanzania, and focussed entirely on small-scale firms processing grapes as raw materials. Thus, generalising the study findings to other countries with different conditions should be done cautiously. Also, this study used subjective measures, and other studies could use objective measures.

Practical implications

The study helps firm managers understand the importance of supplier relationship management on business performance. The findings also can be used by policymakers to create targeted policies and initiatives that support the firm’s growth and sustainability.

Originality/value

To the best of the researchers’ knowledge, this is the first attempt to find empirical support for the moderating role of logistics capability in supplier relationship management and the business performance of small-scale grapes processing firms in the Tanzanian context.

Details

IIMT Journal of Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2976-7261

Keywords

Article
Publication date: 5 June 2024

Azadeh Rajabian Tabesh, Md. Maruf Hossan Chowdhury, Mohammed A Quaddus, Omid Ameri Sianaki and Eijaz Khan

This paper aims to illuminate the nuanced dynamics of green supply chain management (GSCM), specifically focusing on the intersections of supplier relationships, supplier

Abstract

Purpose

This paper aims to illuminate the nuanced dynamics of green supply chain management (GSCM), specifically focusing on the intersections of supplier relationships, supplier governance and organizational agility. Recognizing a gap in the understanding of how these elements confluence to promote green purchasing, the paper uses a quantitative study on data collected from the Australian food industry. Advanced analysis techniques provide empirical evidence underscoring the pivotal roles these elements play, expanding on current GSCM literature within a resource-based view.

Design/methodology/approach

This study, based on a questionnaire sent to Australian food professionals, used higher-order reflective constructs to assess supplier relationships and governance. Data was analyzed using partial least squares structural equation modeling and Hayes PROCESS, considering factors like firm revenue and manager experience. Both the reliability of measures and mediation hypotheses were stringently validated using established guidelines.

Findings

The comprehensive study validated supplier governance's key influence on green purchasing and supplier relationships. Notably, organizational agility emerged as a crucial mediator, underscoring the interplay of these constructs. Concurrently, the reflective measurement model exhibited robust validity and reliability. Interestingly, demographic factors such as company size, revenue and managerial experience showed no discernible impact on green purchasing practices.

Practical implications

In the Australian food sector, supplier governance and relationships are pivotal for advancing green purchasing. This study emphasizes the value of organizational agility in amplifying these practices. Managers, when aligning with supplier relationships enhanced by communication and mutual aid, can foster robust green initiatives. Embracing these insights and the critical importance of supplier governance, managers can drive more sustainable, informed supply chain decisions in the industry.

Originality/value

In pursuit of understanding the relationship between supplier governance, supplier relationships and green purchasing, this research uniquely situates itself within the resource-based view (RBV) to reveal critical theoretical and practical implications. By focusing on the Australian food industry, the study spotlights the often-overlooked mediating role of organizational agility in linking supplier relationships with green purchasing efforts. In doing so, this research not only strengthens the argument for fortified supplier relationships – as a catalyst for enhancing agility and thereby green practices – but also re-contextualizes the RBV in a fresh light. This new perspective provides managers with an enriched model, emphasizing the imperative of solid supplier governance for sustainable, agile and green supply chain operations in the food domain.

Details

Journal of Business & Industrial Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 17 May 2024

Deodat Mwesiumo, Bella Belerivana Nujen, Anette Utvær and Martin Orheim

This study seeks to explore the strategies purchasing and supply managers can employ to navigate the challenges presented by low-probability-high-impact (LPHI) disruptions. The…

Abstract

Purpose

This study seeks to explore the strategies purchasing and supply managers can employ to navigate the challenges presented by low-probability-high-impact (LPHI) disruptions. The core aim is to create a process framework that provides a systematic, step-by-step method to help purchasing and supply managers effectively deal with the chaos triggered by LPHI events.

Design/methodology/approach

The study draws on qualitative data collected from eight firms operating within different industries (healthcare, fishing, food retail and manufacturing), where two firms represented each industry. The data underwent a thorough analytical process involving open coding, axial coding and aggregation of categories, resulting in the identification and formulation of overarching themes.

Findings

The analysis unveiled five primary challenges purchasing and supply management (PSM) encountered during the COVID-19 pandemic. These include supply shortages, supplier opportunism, the imperative to build a new supply base, price volatility and the need to make critical decisions based on limited information. It also identified contingent factors that influenced the magnitude of these challenges and approaches applied to address them. Additionally, it identified five responses to the challenges and two contingent factors that affected the responses.

Originality/value

This study extends the existing body of knowledge in purchasing and supply management by developing a process framework tailored to assist purchasing and supply managers in effectively addressing LPHI disruptions. To the best of our knowledge, this is one of the first studies to offer a structured, step-by-step approach that guides PSM professionals in navigating the chaos likely to be caused by such events.

Details

Journal of Manufacturing Technology Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1741-038X

Keywords

Open Access
Article
Publication date: 22 May 2024

Xiying Zhang, Dirk Pieter van Donk, Chengyong Xiao and Madeleine Pullman

This study aims to develop an in-depth understanding of how supplier selection helps social enterprises achieve their social missions while maintaining commercial viability.

Abstract

Purpose

This study aims to develop an in-depth understanding of how supplier selection helps social enterprises achieve their social missions while maintaining commercial viability.

Design/methodology/approach

The paper applies a multiple-case design to study the supplier selection processes of 15 Dutch social enterprises.

Findings

Social enterprises tend to build supply relationships through existing networks and evaluate suppliers based on value alignment, relationship commitment, resource complementarity, and cost. Depending on the possibility of social value creation in supplier selection, the importance of these criteria varies across different social enterprise models and between key and non-key suppliers. Moreover, suppliers’ long-term relationship commitment can help reconcile tensions between the social and commercial logic of a social enterprise and facilitate impact creation.

Research limitations/implications

Data collection is limited to the perspectives of buyers – the social enterprises. Future research could collect supplier-side data to explore how they engage with social enterprises during the selection process.

Practical implications

Managers of social enterprises can use our research findings as guidance for selecting the most suitable suppliers, while organizations that want to collaborate with social enterprises should actively build network ties to be identified.

Originality/value

We contribute to the cross-sector collaboration literature by showing the underlying reasons for the preference for network reinforcing and indirect networking in supplier identification. We contribute to the social impact supply chain literature by revealing the critical role of supplier selection in shaping collaboration outcomes.

Details

International Journal of Operations & Production Management, vol. 44 no. 13
Type: Research Article
ISSN: 0144-3577

Keywords

Open Access
Article
Publication date: 28 May 2024

Alice Madonna, Albachiara Boffelli and Matteo Kalchschmidt

This study builds on the panarchy theory by viewing the supply chain as a socio-ecological system and further expands it by considering the within-level linkages internal to the…

Abstract

Purpose

This study builds on the panarchy theory by viewing the supply chain as a socio-ecological system and further expands it by considering the within-level linkages internal to the supply chain level. Three types of linkages are considered: the two cross-level linkages with the planetary and the political-economic levels and the supply chain within-level linkages. The research questions are addressed using the data gathered by the Carbon Disclosure Project within its Supply Chain Programme.

Design/methodology/approach

This work aims to study, applying the lens of panarchy theory, how the planetary and the political-economic levels affect the supply chain within-level linkages for sustainability. Furthermore, the difference in how these cross-level linkages influence focal firms and first-tier suppliers is explored.

Findings

The results show that considering the planetary-supply chain linkage, climate change risk exposure is likelier to foster within-level linkages with buyers than with suppliers. Further, climate change mitigation investments have different roles in the different tiers: focal firms are pushed to strengthen the linkages with their suppliers when they lose efficacy in improving their carbon performance, whereas first-tier suppliers exploit investments to gain legitimacy. Discussing the political-economic level effect, perceptions from first-tier suppliers could be two-fold: they could perceive a mandating power mechanism or exploit policymakers’ knowledge to advance their capabilities.

Originality/value

The results contribute to the sustainable supply chain management literature by providing empirical evidence of the cross-level linkages theorised by the panarchy theory. Moreover, the concept of within-level linkages is proposed to apply the theory in this field.

Details

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

Keywords

Article
Publication date: 14 May 2024

Haiju Hu and Yakun Li

The importance of carbon reduction has become a global consensus, and more and more countries are implementing the cap-and-trade mechanism, including China. The purpose of this…

Abstract

Purpose

The importance of carbon reduction has become a global consensus, and more and more countries are implementing the cap-and-trade mechanism, including China. The purpose of this paper is to investigate the optimal carbon emission allowances (CEA) purchasing decisions of supply chain members under the cap-and-trade mechanism in China.

Design/methodology/approach

An evolutionary game model is established to analyze the CEA purchase strategy choices of suppliers and manufacturers in the supply chain. The influence of the key parameters on the evolutionary game results is analyzed by numerical simulations.

Findings

The supply chain system always evolves towards neither supplier nor manufacturer purchasing CEA or both purchasing CEA. Illegal production behavior and excessive CEA costs are key factors that hinder parties from purchasing CEA. High revenue from purchasing CEA for production, high supply chain losses and high governmental penalties can promote parties to purchase CEA.

Originality/value

The results help supply chain members make better CEA purchasing decisions and also benefit the development of China’s carbon trading market and environmental protection.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 13 May 2024

Lian Bai and Dong Cai

Distributed photovoltaic (DPV) projects generally have output risks, and the production effort of the supplier is often private information, so the buyer needs to design the…

Abstract

Purpose

Distributed photovoltaic (DPV) projects generally have output risks, and the production effort of the supplier is often private information, so the buyer needs to design the optimal procurement contract to maximise its procurement utility.

Design/methodology/approach

Based on the principal-agent theory, we design optimal procurement contracts for DPV projects with fixed payments and incentive factors under three situations, i.e. symmetry information, asymmetry information without monitoring and asymmetry information with monitoring. We obtain the optimal production effort and expected utility of the supplier, the expected output and expected utility of the buyer and analyse the value of the information and monitoring.

Findings

The results show that under asymmetric information without monitoring, risk-averse suppliers need to take some risk due to output risk, which reduces the optimal production effort of the supplier and the expected output and expected utility of the buyer. Therefore, when the monitoring cost is below a certain threshold value, the buyer can introduce a procurement contract with monitoring to address the asymmetry information. In addition, under asymmetric information without monitoring, the buyer should choose a supplier with a low-risk aversion.

Originality/value

Considering the output risk of DPV projects, we study the optimal procurement contract design for the buyer under asymmetric information. The results provide some theoretical basis and management insights for the buyer to design optimal procurement contracts in different situations.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 6 May 2024

Shaobo Wei, Chengnan Deng, Hua Liu and Xiayu Chen

Based on resource dependence theory (RDT) and transaction cost theory (TCT), we aim to investigate the relationship between supply chain concentration and firm performance. Based…

Abstract

Purpose

Based on resource dependence theory (RDT) and transaction cost theory (TCT), we aim to investigate the relationship between supply chain concentration and firm performance. Based on the resource-based perspective, we further investigate the moderating effect of marketing and operational capabilities on the relationship between supply chain concentration and firm performance.

Design/methodology/approach

Based on data from 2,082 firms with 8,371 observations from 2008 to 2020 in China, we use stochastic frontier analysis to calculate marketing capability and operational capability and use multinational regressions to test our research model.

Findings

We find a U-shaped relationship between supplier concentration and firm performance; there is also a U-shaped relationship between customer concentration and firm performance. In addition, the relationship between supplier concentration and firm financial performance is strengthened by the firm’s marketing capability, and the relationship between customer concentration and firm financial performance is weakened by the firm’s operational capability.

Originality/value

Drawing from RDT and TCT, this study extends the research on the impact of supply chain concentration on firm performance. The study finds that supply chain concentration and firm performance have a nonlinear relationship, and it is further moderated by marketing capability and operational capability, providing insights for managers.

Details

Journal of Enterprise Information Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1741-0398

Keywords

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