Knowledge transfer in the context of buyer–supplier relationship: An analysis of a supplier's customer portfolio

In the context of buyer–supplier relationship, the present study will not only analyse the role of formal and informal mechanisms to transfer knowledge but also the direct and moderating effect of trustworthiness, as relational dimensions, to understand how customers acquire knowledge from suppliers. The results related to a sample of 105 customers belonging to a medium-sized Italian manufacturer's customer portfolio show that both formal and informal transfer mechanisms positively impact knowledge acquisition. Trustworthiness positively moderates the effect of informal transfer mechanisms and negatively moderates the effect of formal transfer mechanisms on knowledge transfer. Some considerations regarding the customer portfolio are suggested to enhance our understanding of the effectiveness of knowledge transfer mechanisms in relation to different trustworthiness contexts.     

An investigation of relationship learning in cross-border buyer–supplier relationships: The role of trust

This paper investigates the factors influencing relationship learning in cross-border buyer–supplier relationships. A conceptual model is developed by integrating organizational learning theory, relational governance and the resource-based view. Based on a cross-sectional sample of 160 firms in the information technology industry and a structural equation model, the findings show that learning intent, absorptive capacity and cross-cultural differences influence relationship learning. This study further addresses the moderating effects of trust.     

Theoretical perspectives of supplier–buyer long-term relationships in India

Purpose: The purposes of this study are to investigate changing Indian supplier–buyer relationships and to propose an effective conceptual model using theoretically developed constructs such as power, performance, satisfaction (economic and noneconomic), conflict (economic and noneconomic), trust, cooperation, switching cost, and commitment

Methodology/approach: This study is focused on supplier–buyer relationships among Indian companies in the processed/packaged (not fresh) food business. All of the measures for the constructs were developed for and empirically tested in previous studies. Confirmatory factor analysis and path analysis were used to test the conceptual model.

Findings: First, Indian suppliers’ power sources and performance significantly influence satisfaction and conflict. Second, satisfaction and conflict are significantly related to cooperation, trust, and switching cost. Third, cooperation and trust have a significant impact on commitment.

Research implication: One of the unique aspects of the study is to analyze the differential effects of satisfaction and conflict in India. Using dichotomized (economic and noneconomic) constructs, the ways in which Indian buyers’ economic satisfaction, noneconomic satisfaction, economic conflict, and noneconomic conflict are related to other relationship constructs (power sources, performance, cooperation, trust, switching costs, and commitment) are investigated.

Originality/value/contribution: For global companies, a key requirement for success is how to develop and sustain long-term relationships with local companies. This study suggests practical and information for successful marketing strategies to establish long-term supplier–buyer relationships in India.     

Dependence concentration and fairness perceptions in asymmetric supplier–buyer relationships

The purpose of this research is to investigate how a supplier manages its relationships with multiple buyers in a market structure of imbalanced power to achieve market success. Drawing on resource dependence theory and social exchange theory, we argue that dependence concentration (the degree of revenue concentration of a supplier’s multiple buyers) and fairness perceptions (distributive and procedural fairness) work together to impact a supplier’s market performance. The authors develop a structural model and empirically test how dependence concentration and fairness perceptions impact supplier performance with survey responses from 92 suppliers in the food supply industry. The findings show that a balanced set of dependence relationships governed by fair business policies and procedures leads to strong and effective relationships; and effective relationships with multiple buyers, rather than with any specific buyer, impact sales and profit growth in a market structure of imbalanced power.     

Relationship performance dimensions of buyer–supplier exchanges

Whilst there is much research material on buyer and supplier performance assessment and management, a relationship perspective can bring an added dimension, especially to the performance of close, mutual relationships. This article aims to bring a relationship performance understanding to the study of buyer–supplier exchange. Unfortunately, business-to-business relationships are assumed to enhance performance but what little research has been conducted is limited to a few dimensions reflecting a narrow theory or practice assumption. To remedy this we investigate a relationship performance definition that incorporates both non-financial and financial dimensions. The results are developed from seven qualitative interviews followed by a postal survey incorporating the views of 200 industrial buyer respondents in the UK. To examine the relationship among the performance variables, factor analysis was conducted on 21 dimensions of performance included in the research. On this basis, key dimensions of relationship performance are grouped and implications drawn for defining relationship performance and its measurement. The authors conclude that it is meaningful to take a relationship performance position when managing buyer–supplier interactions. However, not all the dimensions identified may be available to all types of relationships.     

Supply chain consortia: the rise of transcendental buyer–supplier relationships

A theoretical, cross-disciplinary model for cooperative buyer–supplier relationships is proposed which integrates information obtained from prior research on organizational culture and transaction cost analysis (TCA). The authors describe key elements of TCA and review the three types of transaction governance structures commonly used to explain relationships within an organization. The authors extend this by applying structure type to buyer–supplier relationships. The researchers propose several types of interorganizational relationships and conclude with an in-depth discussion of a successful supply chain consortium used by Boeing Aircraft Company and several key suppliers.     

Impacts of supplier–buyer relationships on modularization in new product development

Globalization of markets and new business practices are prompting high-tech firms to reconsider their strategic thinking, especially in supply chain and R&D management. This paper examines the effects of supplier–buyer relationships on modularization by evaluating the opportunities of modularization and corresponding interface constraints of a product at four different levels: component, module, sub-system, and system. The scope of modularization sensitivity is assessed in terms of the product's architecture, interface compatibility effects, component customization, value inputs, and supplier–buyer interdependence. The example of windshield wipers controller for Chrysler Jeeps illustrates that, higher opportunities for modularization can be attained through a more collaborative form of supplier–buyer partnership.     

“Do frogs jump as a result of privatisation?” Impact of privatisation on buyer–supplier relationships

As the cornerstone of the Conservative Government between 1979 and 1996, privatisation has undoubtedly had an enormous impact on the UK economy. On the whole, privatised companies have improved their performance in an ever increasing competitive environment by focusing on, among other things, a drive to reduce costs through bought-out goods and services. Research into Japanese companies, meanwhile, has highlighted the key role that supplier relationships play in their success. It has stressed the advantages of co-operative over adversarial relationships with suppliers, and evidence shows that an increasing number of Western companies are adopting this practice. This has raised the profile of purchasing in these companies with a change towards `better practice’ and improved management of the supplier base. From this new research a model of Feature and Construct Evaluation and Aggregation (FCEA) has been developed, in the search for a link to support the proposition that privatisation has an influence on purchasing strategies concerning supplier relationships. The research has shown that only a very limited link exists. Whilst Purchasing as an activity has increased in its importance and control, it has not become strategic. Purchasing strategies have not evolved or supported the business strategy as a result of privatisation, nor does privatisation encourage the development of purchasing strategies towards closer relationships with suppliers. This is compounded by the EC Directives that reflect an `open tender’ model of procurement, particularly evident in the emphasis on formal competitive tendering procedures and maintaining an `arms-length’ relationship with suppliers.     

The impact of retail buyer innovativeness on suppliers’ adaptive selling in Japanese buyer–supplier relationships

Abstract

We investigate the critical role of retail buyer innovativeness in Japanese buyer–supplier relationships and explore its link to suppliers’ adaptive selling, cooperative relationships, and retail competitiveness. Further, we examine how process conflict between merchandizing and store divisions moderates the relationship between retail buyer innovativeness and suppliers’ adaptive selling. This study employs a structural equation model using survey data from 246 heads of merchandizing divisions at Japanese retail companies. Our findings highlight the importance of both mitigating process conflict and facilitating suppliers’ adaptive selling in order to improve Japanese retailers’ competitiveness, especially when buyers are highly innovative.     

The dyadic structure of exchange partners' governing-agency social capital and opportunism in buyer–supplier relationships

Extant literature on opportunism examines its antecedents in dyadic relationships in business networks. With firms also developing relationships with government agencies, these connections can influence firms' propensity for opportunism in business exchanges. This study investigates how the governing-agency social capital on both sides of the buyer–supplier relationship affects firms' opportunism tendency toward their counterparts. In particular, we divide the governing-agency social capital of both parties into two dimensions: the asymmetry of governing-agency social capital and joint governing-agency social capital. We postulate that both the asymmetry of governing-agency social capital and joint governing-agency social capital promote the focal firm's propensity for opportunism through dyadic power and network power, respectively. Moreover, we propose that both dimensions interact to magnify each other's impact on the focal firm's propensity for opportunism. We test the hypotheses using 322 matched data of buyer–supplier dyads in China. Empirical results provide support for the research hypotheses.     

Does the length of a customer–provider relationship really matter?

This study examines both a moderator and a mediator of perceived service quality and payment equity as they relate to customer loyalty in the banking industry. Through the moderating factor, the length of the customer–bank relationship, this study builds a conceptual framework for distinguishing between transactional- and relationship-oriented customers and provides an empirical analysis by using structural equation modelling. The empirical findings of this study, the result of the examination of 610 banking customers, showed that different lengths of the customer–bank relationship form loyalty from different variables and from a different path. For transactional-oriented customers, loyalty was built through the achievement of overall customer satisfaction; whereas for relationship-oriented customers, loyalty was built through the establishment of trust. Suggestions and limitations based on the finding are also discussed.     

International buyer behaviour–commitment relationship: An investigation of the empirical link in importing

Drawing on the resource-based view (RBV) of the firm this article examines relationships between knowledge, trust, communication, volatility and sustainable competitive advantage as the exogenous and endogenous variables with importer commitment as the dependent variable. The primary data was gathered from a survey of 224 commercial and industrial firms, headquartered in Bangladesh, coming from a wide cross section of industries. Statistical analysis was carried out using Structural Equation Modelling via AMOS. The study's key findings revealed that all exogenous/endogenous variables had a significant impact on importer commitment. That is, knowledge, trust, communication, volatility and sustainable competitive advantage had a significant direct impact on importer commitment. Additionally, cultural similarity, communication, volatility and supplier opportunism all had a significant indirect impact on importer commitment. This finding makes a significant contribution to the relational side of the RBV.     

Interorganizational processes in buyer–supplier dyads: An information intensity perspective

In an increasingly global business environment, organizations interact with partners, suppliers and customers who are geographically spread and exchange information regularly. Without a robust information technology infrastructure, the speed and effectiveness of this information exchange is limited. Business-to-business (B2B) electronic business applications are a class of interorganizational information systems (IOIS) that facilitate such information exchange arising out of interorganizational processes (IOPs). The success of any e-business initiative depends on the successful implementation and the actual use of such IOIS. This study uses the concept of information intensity (II) to identify the information sharing requirements arising from IOPs, thus presenting opportunities for B2B Web site use, with specific reference to organization-specific customer-facing and supplier-facing IOIS. We use data from four buyer–supplier dyads, eight medium- to large-scale organizations in the Indian context and identify a generic set of dominant IOPs in buyer–supplier interactions. Through these we present the sources of II in IOPs along three dimensions – complexity, uncertainty and ambiguity which influence the feature set in the IOISs. We conclude with implications for IOIS design, implementation and use.     

Do stock prices undervalue investments in advertising?

Under the efficient market hypothesis, the stock price incorporates the full value of a firm’s advertising. If so, advertising spending should not be associated with future abnormal stock returns. Nevertheless, from 1995 to 2015, advertising spending often leads to abnormal stock returns the following year. The strongest results surface for consumer goods and services where advertising used to build brand equity can carryover from one year to the next. No significant differences arise for healthcare, industrial goods, or retailer advertising. Healthcare and industrial goods advertising is often modest. Retailer advertising that builds traffic should have little if any carryover into the following year. These results may help marketing managers defend an advertising budget whose benefits carryover into the following year, but hurt current profits. Having more investment analysts on Wall Street with a marketing background should help reduce this overly conservative “wait and see” discount for carryover advertising.     

Green supplier development: What’s in it for you,the buyer?

Greening suppliers, or cultivating environmental responsibility throughout the supply chain, has become an important strategic issue for firms. While various approaches exist, green supplier development—that is, helping and collaborating with your suppliers to reduce their negative environmental impact—is a key method that can produce significant gains for both parties at multiple levels. Yet the benefits have not been sufficiently discussed and may therefore appear nebulous for managers. Focusing particularly on “What’s in it for you, the buyer?” this article describes benefits at the intrafirm, interfirm, and market levels. Barriers to the realization of the benefits are also discussed, providing managerial guidance on supplier prioritization for green supplier development.     

The impact of individualism on buyer–supplier relationship norms,trust and market performance: An analysis of data from Brazil and the U.S.A.

This study focuses on the impact of the cultural dimension of individualism, face-to-face communication and the effect of relational norms such as supplier involvement and trust on the market performance of buyer firms. We use the culture literature and social exchange theory to test hypotheses using a sample of Brazilian and US manufacturing firms. The data were analyzed using variance-based structural equation modeling, employing nonlinear partial least squares regression. Our findings indicate that individualism is negatively related to the involvement of suppliers in the production process but is not associated with trust in suppliers. In addition face-to-face communication seems to have a positive effect on supplier involvement and trust.     

Do they matter? The role of non-academics in the internationalization of academic spin-offs

Internationalization and academic entrepreneurship have been receiving a lot of attention not only in academic research but also in policy practice. While academic spin-offs suffer from limited resources and lack of entrepreneurial skills, they often penetrate international market through their innovative products and technology since the very early years of their establishment. In the literature, little attention has been paid to explicitly examine the internationalization process of academic spin-offs as well as the role of non-academics. In order to investigate the impact of non-academics on the performance of spin-offs, we carried out an empirical analysis of 126 Spanish spin-offs which were divided into two market categories, international and domestic market. With regard to the percentage of non-academics in founding team, we found that their impact was more relevant to the performance goals than to innovativeness. On the other hand, the size of non-academic networks contributed significantly not only to the performance goals but also to innovation. However, we did not find a significant relationship between the strength of non-academic networks and the performance goals and innovativeness of the international spin-offs. Overall, we concluded that the role of non-academics was crucial for supporting the internationalization of the spin-offs.     

Does relationship quality matter in e-services? A comparison of online and offline retailing

The quality of the relationship between customers and service firms has been found to be a major driver of customer loyalty in traditional (i.e., offline) service contexts. The increasing use of electronic services, or e-services, raises questions concerning the extent to which the relationship quality-customer loyalty link holds in an e-service context. Based on an extended model of relationship quality and by applying the social information processing perspective, this research tests the relevance of relationship quality for online relationships and explores differences of the relationship quality-loyalty link between online and offline retailers. To test the model, a large-scale study is conducted on both online and offline relationships for two service contexts (media and travel retailing). Using multi-group structural equation modeling, the authors identify differences between the online and offline environment in both service contexts. Results show that (1) relationship quality is similarly important for retaining customers online and offline and (2) differences in the impact of relationship-quality dimensions strongly depends on the service context.     

Learning process and capability formation in cross-border buyer–supplier relationships: A qualitative case study of Taiwanese technological firms

This paper examines the alliance learning process from the perspective of local suppliers in a Global Production Network (GPN). After reviewing critical literature in the field, we employed a qualitative case research method to explore alliance learning antecedents, process and outcomes. Six Taiwanese technological firms with different positions in a GPN were examined and we found that these well-performing firms integrate both inter- and intra-organizational learning, as well as a bi-directional learning process. A framework of cross-level knowledge flow is proposed with refined alliance learning antecedents and outcomes. We also extend the typology of GPN positioning level. Propositions are suggested with results discussed for future research.     

The role of social networks and institutions in the internationalization of Russian entrepreneurial firms: Do they matter?

Drawing upon network theory and institutional theory, this paper examines the influence of networks on the internationalization of Russian entrepreneurial firms. Our case analysis suggests that within the context of the Russian environment, networks play a much less important role in the internationalization process than it is usually assumed in the literature. For the Russian entrepreneurial firms examined in our study, the most important factor in their internationalization was their engagement in honest business practices that established trust and commitment in their relationships with international business partners. This study underscores the importance of the institutional context of an entrepreneurial firm’s country.