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1 – 10 of over 84000Thomas 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.
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.
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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.
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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.
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Anisur R. Faroque, Imranul Hoque and Mohammad Osman Gani
This study aims to explore how multinational lead buyers can play an active role in ensuring worker voices in garment supplier factories where workers have limited space to raise…
Abstract
Purpose
This study aims to explore how multinational lead buyers can play an active role in ensuring worker voices in garment supplier factories where workers have limited space to raise their voices, and how buyers’ involvement increases the possibilities of worker voices mitigating barriers to social dialogues and enhancing mutual interests of buyers and workers in garment factories.
Design/methodology/approach
Using a qualitative research approach and multiple embedded case study method, this study considered buyer−supplier dyads as the unit of analysis, i.e. two multinational lead buyers and their four corresponding suppliers in the garment industry of Bangladesh. Focus group discussion and key informant in-depth interviews were techniques applied to collect factory-level data, and within and cross-case analysis techniques were applied to develop an overall understanding.
Findings
The results of this study reveal that the opportunities for workers to voice their concerns through social dialogue in garment supplier factories are limited due to various obstacles. Similarly, the role of multinational lead buyers in addressing these issues is found to be less than ideal. This study also shows that buyers can take short-term and long-term initiatives to ensure social dialogues. Moreover, this study presents how social dialogues can meet the expectations of multinational buyers and their garment suppliers.
Research limitations/implications
While this study focuses exclusively on the garment industry, similar scenarios also exist across a multitude of other industries. Thus, future research could extend this study’s scope to various sectors, providing a more comprehensive understanding of the general state of worker voices in Bangladesh. This study stands to make significant contributions to literature in the fields of global value chains, human relations and international business. It will pose critical perspectives on how upstream value chain suppliers can fortify worker rights through social dialogue, and elucidate the means and motives for lead buyers to play a more active role in this endeavour.
Originality/value
This study is distinct in its approach, integrating buyer−supplier roles to pave the way for enhanced worker voice opportunities through social dialogue in garment supplier factories.
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Chaorui Huang, Song-Man Wu, Hoi Lam Ma and Sai Ho Chung
Considering the financial service providers’ (FSPs) information asymmetry in evaluating the supplier and their distinct quit probabilities, we want to examine the supplier’s…
Abstract
Purpose
Considering the financial service providers’ (FSPs) information asymmetry in evaluating the supplier and their distinct quit probabilities, we want to examine the supplier’s preference of the financing schemes if both the bank and the online platform exist and how the buyer sets the contract terms in the two financing schemes.
Design/methodology/approach
We establish a Stackelberg game model to capture the interactions among three parties, i.e. a supplier, a capital-sufficient buyer and an FSP (either a bank or an online platform), within a first-time contract.
Findings
In the non-FSPs’ quit case, the buyer’s profit is higher under the bank loan scenario, while the supplier’s profit performs adversely. The supply chain’s profit is heavily dependent on the buyer’s profit difference between the two financing schemes. Moreover, we find that the supplier borrows the money to exactly cover the production cost. The equilibrium solutions of the FSPs’ quit case and of the capital-sufficient supplier’s case are also derived.
Originality/value
First, we assign different risk profiles to different FSPs in our setting so that modeling a previously ignored but practically significant problem. Second, we innovatively take the FSP’s quit probability into account in our model. Third, we elucidate how these factors can influence the relative efficiency of the two types of financing schemes and the settings of the contract, which further complements and extends the current SCF research.
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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.
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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.
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Hua Liu and Shaobo Wei
Drawing upon resource dependence theory, this study aims to examine how a firm’s information technology (IT) capabilities (i.e. IT integration and IT reconfiguration) influence…
Abstract
Purpose
Drawing upon resource dependence theory, this study aims to examine how a firm’s information technology (IT) capabilities (i.e. IT integration and IT reconfiguration) influence its responses to disruptions – bridging with a current supplier and buffering with an alternative supplier. We further examine how such relationships are moderated by the firm–supplier relative dependence (i.e. firm dependence advantage and supplier dependence advantage).
Design/methodology/approach
Based on data from 141 match-paired surveys of firms in China, we test our model.
Findings
Our study finds that IT integration positively influences bridging and IT reconfiguration positively influences buffering. Furthermore, our findings indicate that the positive impact of IT integration on bridging is negatively influenced by the firm’s dependence (FD) advantage but positively moderated by the supplier’s dependence advantage. By contrast, the positive impact of IT reconfiguration on buffering is negatively influenced by the FD advantage.
Originality/value
Our study provides a more nuanced insight into the effects of IT capabilities on disruption responses and a better understanding of the buyer–supplier dependence boundary conditions under which these effects vary.
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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.
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