Supplier behavior and its impact on customer satisfaction: A new characterization of negotiation behavior

Many questions of customer/supplier negotiation dynamics remain unanswered. One reason behind this is that most existing models do not entirely reflect the complex relationship between negotiation behavior and the attained outcome of the negotiation process, analyzing the former from a purely dichotomous perspective. This study examines supplier negotiation behavior and how it impacts the outcome (satisfaction) from the customer´s perspective, thereby proposing a new characterization of negotiation behavior. Our analysis is based on a case study of 21 customer/supplier negotiations carried out by four leading supermarket chains in Costa Rica. Evidence supports our proposal that in customer/supplier negotiations, supplier negotiation behavior can include both integrative and competitive actions within the same negotiation, thereby justifying our proposal of different classifications existing within the negotiation continuum. It was also noted that supplier negotiation behavior influences a customer´s perceived satisfaction level. These findings are relevant to both academia and the professional world and can be used to promote better implementation and performance of agreements attained during a negotiation.     

Navigating value networks to co-create sustainable business models: An actionable staging approach

Sustainable transitions typically require collaboration between multiple actors in the value chain or value network. Recent research has emphasized mapping of stakeholders and values as a starting point for identifying opportunities to realign these relationships, followed by business model experimentation to enable change. However, a simple mapping exercise does not consider the interplay between actors' concerns, business models, and interpretations of sustainability. Pedersen et al. (2022) advocated that aligning concerns is essential to collaborative design and innovation, and requires continuous negotiation between multiple actors. Here, we present a microlevel in-depth case study to examine how alignment across central value chain actors may be facilitated through the staging of numerous negotiations during the innovation process. Drawing on the staging negotiation spaces co-design framework, we provide insight into the content of multiple negotiations concerned with different aspects of sustainability during the development of a more sustainable laundry service system on the Danish island of Bornholm. Our findings illustrate how both value chain actors and a third-party intermediary stage negotiations, and elaborate the framework by attending to the strategic navigational efforts of network alignment through negotiations.     

Enterprise resource planning (ERP) implementation using the value engineering methodology and Six Sigma tools

Enterprise resource planning (ERP) is a software solution that integrates the operational processes of the business functions of an enterprise. However, implementing ERP systems is a complex process. In addition to the technical issues, companies must address problems associated with business process re-engineering, time and budget control, and organisational change. Numerous industrial studies have shown that the failure rate of ERP implementation is high, even for well-designed systems. Thus, ERP projects typically require a clear methodology to support the project execution and effectiveness. In this study, we propose a theoretical model for ERP implementation. The value engineering (VE) method forms the basis of the proposed framework, which integrates Six Sigma tools. The proposed framework encompasses five phases: knowledge generation, analysis, creation, development and execution. In the VE method, potential ERP problems related to software, hardware, consultation and organisation are analysed in a group-decision manner and in relation to value, and Six Sigma tools are applied to avoid any project defects. We validate the feasibility of the proposed model by applying it to an international manufacturing enterprise in Taiwan. The results show improvements in customer response time and operational efficiency in terms of work-in-process and turnover of materials. Based on the evidence from the case study, the theoretical framework is discussed together with the study’s limitations and suggestions for future research.     

Contingency relationships of firm size,TQM duration,unionization, and industry context on TQM implementation—A focus on total effects

Past TQM literature has been inconclusive in resolving the validity of the universalistic approach versus the contingency approach of TQM implementation. In this paper we contribute to the resolution of this debate by using a total effects approach within the contingency perspective. We propose a culture-quality system design-outcomes framework for TQM implementation. We then use this framework to study the differences in total effects relationships among TQM constructs across four contingencies, firm size, TQM duration, unionization, and industry type. Data from a sample of 394 plants (SIC codes 20 through 39) are used to test the validity of our contingency model. Our results revealed that firm size, TQM duration, and industry type moderate the influence of total effects of culture (top management commitment, customer focus, and trust) on final outcomes (process quality, product quality, and customer satisfaction). These contingencies also moderate the influence of total effects of quality system design (design management, training, empowerment, quality information usage, supplier quality management, and process quality management) on final outcomes. The strongest contributor to variation in total effects across groups was industry type, followed by size and then TQM duration. To a lesser extent, unionization was a moderator in total effects relationships. These findings uniquely contribute to the emerging contingency theory of TQM implementation.     

Picking on the new kid: Firm newness and deception in buyer–supplier negotiations

This study builds on liabilities of newness theory and moral disengagement theory to investigate deceptive behavior in buyer–supplier negotiations that involve new ventures. Using two purchasing negotiation experiments, it contrasts how negotiators treat employees of new ventures, mature firms, and firms of unknown age. The first experiment examined the behavior of participants in their role as salespeople toward buyers, whereas the second one examined the behavior of participants in their role as buyers toward salespeople. Across experiments, participants shared the belief that their negotiation counterparts were less experienced when these counterparts worked for new ventures than when they worked for mature firms. Moreover, both groups were more likely to deceive negotiation counterparts working at new ventures, although this effect was stronger in magnitude in the first experiment. These findings contribute to the field of behavioral supply management by identifying a new situational variable (firm newness) that promotes deception in purchasing negotiations. Moreover, they provide implications for buyers and suppliers on how to leverage preconceptions associated with their firm's age to gain advantages (or avoid disadvantages) in buyer–supplier negotiations. Finally, we add to liabilities of newness theory by identifying an additional liability that affects new ventures – namely, the increased risk of being deceived.     

An application of an integrated ANP–QFD framework for sustainable supplier selection

This study provides a novel integrated multi-criteria decision-making approach to sustainable supplier selection problems. Despite the large supply chain management literature on green performance measurement, the need for a systematic analysis of how specific sustainable variables develop and affect each other remains mostly overlooked. The proposed integrated framework allows for such an analysis. By combining analytic network process and quality function deployment, our model identifies a clear hierarchical structure for all the relevant sustainable factors and sub-factors while weighting the decision criteria based on the importance given to customer requirements. Finally, suppliers are ranked using a multi-objective optimisation procedure based on ratio analysis and weighted aggregated sum product assessment. The proposed framework is used to analyse a case study of a dairy company, but it can be easily implemented for supplier selection by any other company with similar features.     

Integrating design metrics within the early supplier selection process

It has been found from the contemporary research in the fields of supply chain management and concurrent engineering that significant benefits can be achieved if suppliers are involved in product development. However, recent investigations in manufacturing industries have revealed that early supplier involvement in the design process is not widely practiced. One issue is the lack of an appropriate customer–supplier interface to assess the suitability of suppliers with reference to design criteria. This paper proposes a mechanism for evaluating supplier involvement during product development. The assessment tool includes four types of distinctive indices to measure supplier involvement in the design process, namely: Satisfaction Index, Flexibility Index, Risk Index, and Confidence Index. These indices measure the extent to which both the customer requirements and the supplier capabilities match or mismatch and therefore reflect the potential or risk of signing a project contract. The proposed methodology is discussed within a multinational telecommunications company and preliminary analysis indicates that the approach provides an effective mechanism for selecting suppliers involved in the product development process.     

AHP-based approaches for supplier evaluation: Problems and perspectives

Supplier evaluation has assumed a strategic role in determining competitiveness of large manufacturing companies. An increasing number of researches have been devoted to the development of different kind of methodologies to cope with this problem. Nevertheless, while the number of applications is growing, there is little empirical evidence of the practical usefulness of such tools with a dichotomy between theoretical approaches and empirical applications. Considering this evidence, the goal of this paper is to contribute to understand the above dichotomy by implementing, in a corporate environment, a model for supplier evaluation based on the Analytical Hierarchical Process (AHP), one of the most prominent methodologies used to address the problem. The analysis of the implementation process of the methodology allows the identification of strengths and weaknesses of using formalized supplier selection models to tackle the supplier evaluation problem, also highlighting potential barriers preventing firms to adopt such methods. Relevant issues arising from the application and managerial implications for both customer and suppliers are discussed.     

Mobilising supplier resources by being an attractive customer: Relevance,status and future research directions

For buying companies, supplier resource mobilisation is an essential process in gaining and sustaining preferential access to supplier resources. This editorial provides insights into the processes of supplier resource mobilisation and introduces three empirical studies on supplier resource mobilisation. We first introduce the supplier resource mobilisation cycle. This cycle may serve as a roadmap for purchasing and supply management (PSM) practitioners seeking to improve access to supplier resources. In addition, this article informs PSM scholars about the status of the supplier resource mobilisation literature and proposes avenues for future research. The cycle includes six stages: (1) becoming an attractive customer, (2) segmenting suppliers, (3) generating supplier satisfaction, (4) becoming a preferred customer, (5) engaging in supplier-oriented actions, and (6) integrating supplier resources. Finally, we introduce the articles in this issue that each examine a different stage of the supplier resource mobilisation process.     

A contingency-configurational view of purchasing operations: The mediating role between supplier relationship and firm performance

The literature has considered purchasing and supply management activities from a strategic perspective, but the tactical role of purchasing operations has yet to be explored. Purchasing operations represent the internal modus operandi for transactions with suppliers, comprising three main activities – purchasing transactions, purchasing document management, and purchasing assessment – and supportive activities like purchasing knowledge management. Following the contingency theory, we hypothesize that these internal activities mediate between external supplier relationship management and firm performance (financial, customer and delivery performance). Complementarily, we adopt the configurational theory to hypothesize that this link between external and internal activities can be combined to increase firm performance. To test this contingency-configurational view of purchasing operations, we conducted a quantitative survey with 234 companies. The regression results of the contingency analysis show that purchasing operations activities have a full mediation role in most relationships between supplier relationship management and firm performance, while knowledge management positively moderates the association between purchasing assessment and customer performance. Moreover, the cluster analysis for the configurational analysis shows that supplier relationship management and purchasing operations follow maturity levels of joint implementation of internal and external activities. Our findings shed light on the purchasing operations by defining the activities representing this concept and showing their role in supply management. We also contribute to practice by proposing an integrative system that helps managers organize the firm's purchasing and supply management activities.     

Digital Boundary Objects as Negotiation Facilitators: Spanning Boundaries in Virtual Engineering Project Networks

Advances in electronic communication tools have enabled collaborative engineering work to be conducted in virtual project networks that utilize “digital boundary objects” to exchange complex design knowledge. However, little is known about whether and how digital boundary objects facilitate negotiations in virtual settings that feature real‐time communication. This article addresses this gap by exploring the role of digital boundary objects in negotiating complex design knowledge in a three‐dimensional (3‐D) virtual workspace. The authors found that digital boundary objects facilitate negotiations through a three‐stage process of structuring negotiation space, structuring knowledge in the structured negotiation space, and framing combinations of structured knowledge.     

大客户兼供应商与企业融资约束

基于2009—2021年我国沪深A股上市公司前五大客户与供应商的信息数据，探究大客户兼是主要供应商这一特殊情形对企业融资约束的影响及其作用机制。研究发现，大客户兼供应商的存在会加剧企业融资约束，且这一效应对于非国有控股和非制造业企业以及当该类客户销售占比低于采购占比和与企业位于同一行业时更为显著。机制检验结果表明，关联交易是大客户兼供应商加剧企业融资约束的作用渠道，而非财务造假行为和真实经营模式带来的弱势市场地位和高经营效率，表明大客户兼主要供应商在我国情境下是一种供应链风险信号，其背后往往隐藏着关联交易，这不仅拓展了学术界和实务界对企业大客户与供应商的认知，也从供应链视角为我国企业“融资难、融资贵”提供了新的解释。     

Impact of eBusiness technologies on operational performance: The role of production information integration in the supply chain

While the information technology (IT) literature is mixed regarding the direct benefits of eBusiness technologies on performance, the impact of such technologies on supply chain practices remains largely an unexplored area of research. We hypothesize that while there may be no direct benefit of eBusiness technologies on performance, these technologies might support customer integration and supplier integration in the supply chain, which in turn might impact operating performance.To examine our hypotheses, we collected data from respondents who focused their responses to a single major product the process that manufactures it, a significant customer, and an important supplier. Our analyses showed that there was no direct benefit of eBusiness technologies on performance; however these technologies supported customer integration and supplier integration. Further, supplier integration was found to positively impact cost, quality, flexibility, and delivery performance; however there was no relationship between customer integration and performance. Consequently, there is a relationship between eBusiness technologies and supplier integration that leads to better performance. Further, there is an interactive effect between customer integration and supplier integration that supports the notion that firms that have both forms of integration, supported by eBusiness technologies, significantly outperform the others.     

Bring your suppliers into your projects—Managing the design of work packages in product development

Early supplier involvement and integration is important in product development on strategic as well as on operational, project and team levels. Saab Aerospace intended to achieve early supplier involvement and high level of integration on all levels in the redesign of the aircraft JAS 39 Gripen. The research underlying this article shows that the intended strategy was only achieved on the strategic level and not on the operational project and team levels. One major reason for this was that the design of the work breakdown structure (WBS) and work packages (WP) in the product development followed the functional and departmental logic within each company resulting in incompatible structures and preventing communication and information exchange. This article intends to explore how prevailing functionally designed WBS and WP structures created barriers and to demonstrate how supplier integration can be improved by designing collaborative WBS and integrated WP. The Dependence Structure Matrix (DSM) is introduced in order to analyze, visualize and manage interdependencies and information exchange between Saab Aerospace and its supplier on different levels of the WBS and in different phases of the development process, following the logic of interdependencies and information flow, in order to support a strategy focusing on integration of suppliers on the project and team level.     

Participation of suppliers in greening supply chains: An empirical analysis of German automotive suppliers

The public increasingly holds companies accountable for environmental misbehavior in their supply chains. To offset that risk corporations start initiatives to green their supply chains. Yet suppliers often fail to properly participate in these initiatives. This paper presents a conceptual framework to explain supplier participation in green initiatives, by investigating customer requirements, supplier readiness, relational norms and customer investment as possible drivers. The framework and hypotheses were tested using survey data of 54 German automotive suppliers. Partial least squares methodology was deployed for hypothesis testing. The study found supplier readiness and customer requirements to be significant drivers in supplier participation. Relational norms and customer investment did not per se yield significant importance for explaining supplier participation, but when taking into account firm size, the data suggests that cooperative relation norms and customer investment work as an additional driver in green supply chain management for larger suppliers. This research is one of the few studies that explore drivers for supply chain participation at the supplier's level.     

Making consignment- and vendor-managed inventory work for you

This article will examine some of the benefits of vendor managed inventory (VMI) and consignment from a supplier's perspective. Indeed, there are benefits to both approaches, as well as costs and risks. By understanding and managing the costs, and controlling the risks through careful negotiations, one can make both consignment and VMI work not only for the customer, but for the supplier as well.     

The setting of voluntary agreements between industry and government: Bargaining and efficiency

This paper aims at providing a preliminary economic analysis of the efficiency of an emerging environmental policy instrument: the so-called voluntary agreement. The use of a data base we have built containing 75 existing agreements in 12 OECD countries allows us to stylise these empirical objects. They are mutually agreed contracts signed between a national administration and a coalition of firms. They include a set of physical pollution reduction objectives to be reached by the firms. According to classical economic categories, they are similar to a traditional policy instrument, i.e. direct regulation, but one which has been devised after an intense negotiation process. As regards efficiency, the key question lies in the impact of such negotiations. In our analytical framework, we distinguish two subjects of negotiation: the collective environmental objective, i.e. the physical amount of pollution to be globally suppressed via the completion of the contract, and the means required to reach the collective objective, i.e. the allocation rule of private pollution reduction objectives. According to these categories a major asymmetry arises in the negotiation structure. When the dominant dimension of the negotiations concerns the environmental objective, firms are clearly opposed to the administration because of their eagerness to obtain as low an objective as possible. In that case, voluntary agreements do not seem to be an original policy approach. They can be compared with classical consultation processes of interested parties when designing new regulations and raise similar questions: the efficiency of information collection and the dangers of regulatory capture. But when the subject being bargained concerns the means to reach environmental objectives which have already been fixed, individual firms become rivals. The logic of such negotiations lies in inter-firm bargaining arbitrated by the administration. Voluntary agreements tend to be an original negotiation-based policy instrument. Decentralised bargaining improves the allocative efficiency.     

Der erste Eindruck zählt!? – Eine empirische Untersuchung von Ankereffekten bei der Vertrauensbildung in elektronischen Verhandlungen

The importance of electronic negotiations for developing and managing interdependent organizational relationships has increased significantly. Due to reduced cues in electronic negotiations interpersonal trust has become a crucial factor to overcome their limitations. Anchoring effects can set the course for trust building processes before any contact between negotiators occurred. So far, these effects have been analysed in face-to-face interactions. We could demonstrate anchoring effects in electronic interactions using internet-based negotiation simulations. We found that the participants quantified their trust level before and after the negotiation according to a priori information about their partners’ trustworthiness. Intuitive evaluations of the other’s trustworthiness seem to act as an anchor that can regulate ensuing perceptions and trust evaluations.     

Strategic partnerships and relationship marketing in healthcare

Despite repeated government policies to introduce market-orientation and customer-focus into the UK National Health Service, there is still much anecdotal evidence of unsuccessful policy implementation. In this article we investigate the attitudes of healthcare managers to one recent policy initiative based on partnership working that is intended to provide integrated and customer-focused service to patients. While acknowledging the tensions and dilemmas inherent in private sector marketing concepts, we argue that relationship marketing has considerable potential in public healthcare contexts, based on its advocacy of building relationships between providers and customers and between providers and their suppliers. Using the framework of relationship marketing we identify healthcare managers' concerns about the motives, effects and benefits of implementing partnership arrangements in two regions of the NHS. Through a longitudinal research design our findings suggest that while respondents' attitudes to partnership working and customer focus had become more positive after two years of policy implementation, they remain centred on the service process rather than the customers it serves. We discuss what still needs to be done to transform public healthcare from what is still a predominantly supplier and product-driven service to one that is truly relationship orientated.     

基于不对称Nash协商模型的多Agent造船供应链协商机制研究

供应链成员企业之间的协商是供应链管理的一个重要方面,供应链上节点企业通过协商才能进行有效的合作。本文在分析船舶制造企业与供应商协商机制的基础上,将多Agent技术运用到合作企业的协商过程中,利用Nash不对称协商模型,为造船供应链企业的利益分配提供有效参考。