The effect of supplier's market orientation on manufacturer's trust

Recent studies show that manufacturing firms can select suppliers according to suppliers' market-oriented behaviors. Based on market orientation literature and research on inter-firm relationships, a model is developed to examine the impact of supplier's market orientation on manufacturer's trust. The framework is tested using Structural Equation Modeling and the data are from dyadic manufacturer and supplier relationships in U.S. firms. The results show that supplier's market orientation is significantly related to manufacturer's trust, which affects the manufacturer's long-term orientation toward the supplier. Discussions and implications for managers are presented at the end of the article.     

Barriers to the “key supplierization” of the firm

The phenomenon of key supply management (KSM) in business companies is far less investigated than the phenomenon of key account management (KAM) which beneficiates, both in practice and in an academic context, from a growing interest. This article is based on the empirical analysis of a sample of 10 international companies which have recently launched KSM programmes or are currently working on launching such programs. It examines the difficulties these companies come up against when implementing such programmes and proposes to organize these difficulties around three dimensions: 1) the difficulties in implementing real supplier portfolio approaches; 2) the narrow view of value co-creation with suppliers, and 3) the persistent lack of integration of the purchasing function with other internal functions within the company. The conclusion of the article is that KSM is far from being a mere symmetric phenomenon of KAM. Several implications are then discussed in relation to the implementation of KSM programmes within companies.     

Leadership and organizational learning's role on innovation and performance: Lessons from Spain

Leadership style has been traditionally emphasized as one of the most important individual influences on firm innovation. Scholars are now paying growing attention to the possibility that the collective capability of organizational learning plays a key role in determining innovation. We propose that leadership style, an individual feature, and organizational learning, a collective process, simultaneously and positively affect firm innovation. A structural equation model and data from 408 large firms in four sectors supported our hypotheses. Organizational learning had a stronger direct influence on innovation than CEO transformational leadership for our sample; however, leadership had a strong, significant influence on organizational learning, indirectly affecting firm innovation. Additionally, innovation positively and significantly influenced performance. Organizational learning also positively affected performance, but interestingly mainly through innovation.     

Developing the organization's sensemaking capability: Precursor to an adaptive strategic marketing response

Effective strategic planning demands that organizations develop an understanding of the forces shaping the situation by engaging the collective efforts and interpretive capabilities of various representatives of the organization. This study investigates the mechanisms by which such an understanding develops and, subsequently, shapes marketing strategy. Specifically, organizations are examined as sensemaking units stimulated by perceived environmental turbulence, cultural open-mindedness, and team functional diversity. These factors are modeled as determinants of an organization's sensemaking capability, which is comprised of communicative, interpretive, and analytical dimensions. This study argues that a developed sensemaking capability increases the potential range of strategic responses and, ultimately, enhances customer-based performance. The results from a sample of wholesale distributors suggest that organizations that maintain greater internal variety are better able to sense and respond to the environment.     

Global sourcing strategy and sustainable competitive advantage

Global sourcing strategy has been one of the most hotly debated management trends in the last 20 years. In its early years, global sourcing was examined mostly from “in-house” development and procurement perspectives; and in the last several years, research focus has shifted to “outsourcing” activities. Along with this shift from internal to external focus on global sourcing, many researchers and business practitioners have applied a core competency argument to justify increased levels of outsourcing activities on a global basis. Although the beneficial aspects of outsourcing are assumed in most cases, no consensus exists in reality as to the effect of outsourcing. Furthermore, the increased instability of the exchange rate environment in the last several years has also led to increased difficulties in managing globally scattered operations that were once fashionable in the 1980s-90s under the rubric of global strategy. In this article, the authors explore potential limitations and negative consequences of outsourcing strategy on a global scale.     

Performance through measuring leader's profiles: An empirical study

It is rather typical in organizations that the oldest or the most experienced professionals are taken into the leaders’ positions. However, the expertise in profession does not always refer to good skills in leadership. This phenomenon is recognized both in earlier studies and in this study. Leadership skills can be taught successfully to leaders in duty. The empirical results report from polarized success of organizations according to the leadership behavior. Hence, leadership behavior should be a natural part of performance measurement in order to manage and improve in the area.     

A weighted max-min model for fuzzy multi-objective supplier selection in a supply chain

Supplier selection is one of the most important activities of purchasing departments. This importance is increased even more by new strategies in a supply chain. Supplier selection is a multi-criteria decision making problem in which criteria have different relative importance. In practice, for supplier selection problems, many input information are not known precisely. The fuzzy set theories can be employed due to the presence of vagueness and imprecision of information. A weighted max-min fuzzy model is developed to handle effectively the vagueness of input data and different weights of criteria in this problem. Due to this model, the achievement level of objective functions matches the relative importance of the objective functions. In this paper, an analytic hierarchy process (AHP) is used to determine the weights of criteria. The proposed model can help the decision maker (DM) to find out the appropriate order to each supplier, and allows the purchasing manager(s) to manage supply chain performance on cost, quality and service. The model is explained by an illustrative example.     

Designing supply chains: Towards theory development

This paper describes a typology for designing supply chains that work in harmony to design, produce, and deliver products with different characteristics and customer expectations. This research discusses supply chain types that are necessary for success across three types of products: standard, innovative, and hybrid. It develops a framework for categorizing the supply chain types according to product characteristics and stage of the product life cycle. The key success factor for a product change as the product moves through its life cycle, and this may require different supply chain characteristics and capabilities. The paper blends literature and theory development with cases study research to create the typology and develop a set of research questions for further investigation.     

Indian textile suppliers' sustainability evaluation using the grey approach

Textile supply chains consist of multinational garment retailers (customers), garment manufacturers (suppliers), and ancillary suppliers (suppliers to manufacturers). This paper evaluates suppliers' within the Indian textile and clothing industry (both garment manufacturers and ancillary suppliers) using sustainability criteria. Examining a sample of sixty-three suppliers and six sustainability criteria (i.e. discrimination, abuse of human right, child labor, long working hours, unfair competition, and pollution), we categorize suppliers into the three categories of ‘good performer’, moderate performer’, and ‘performance not up to expectation’. Since all the criteria are potentially subjective, we have employed the grey approach for analysis. The results indicate that the criterion of long working hours is a critical one for both categories of suppliers; in the case of garment manufacturers, we found that pollution and unfair competition were the most important criteria. In addition, employing child labor was found to be a critical criterion in the case of ancillary suppliers.     

The performance effect of organizational learning and market orientation

In recent decades an important set of articles on management has focused upon the marketing concept and the related construct of market orientation. The next challenge is to understand how this organizational orientation can be achieved and maintained. Using data from 451 companies and through structural equation models, this study considers that organizational learning represents the capacity of a company to move from a given situation to another desired situation of market orientation and performance. The results suggest that the influence of market orientation on performance is only significant when it is mediated by organizational learning. The results also indicate that organizational learning has a positive effect on performance.     

Sales force obsolescence: Perceptions from sales and marketing executives of individual, organizational, and environmental factors

The trade and academic literature is replete with observations that many sales organizations are in the midst of a redefinition of the strategic role of their sales forces. With today's market forces, change is overdue in many sales organizations. Consequently, the issue of whether the sales force is becoming obsolete has come to the forefront in recent years. As business environments change rapidly, the relevance of the modern sales force comes into question. Data were gathered from 245 midlevel sales and marketing executives on perceived sales force obsolescence. Our findings suggest that obsolescence is a phenomenon for sales organizations to address. The main findings of our study are (1) obsolescence is a phenomenon that affects sales professionals' feelings toward the job (job satisfaction) and outcomes (performance); (2) a firm's market orientation is very important in lowering perceived obsolescence; (3) a learning orientation is important in detecting symptoms of obsolescence; (4) age and education are related to perceptions of obsolescence depending on the type of industry in which the sales force competes: high- or low-tech; and (5) organizational changes can also have a bearing on the sales force's perceptions of obsolescence.     

Intraorganizational information and communication technology diffusion: Implications for industrial sellers and buyers

Information and communication technologies (ICTs) like CRM, ERP and Intranet are considered important for creating competitive advantage. Despite their rapid deployment rates, only a few studies mainly from the information technology (IT) and engineering literature have been devoted in uncovering the factors that influence the diffusion of new information technologies within an organization. Similarly, empirical studies regarding the impact of ICT diffusion on organizations are strikingly limited. In an attempt to fill this research void, the present study examines the implementation of ICT tools within marketing-related and non-marketing-related functions. By testing a number of hypotheses using structural equation modeling, the authors conclude that the antecedents and consequences of ICT diffusion in these functions vary. Their findings provide the foundation for a more thorough examination of both intraorganizational diffusion of ICT tools as well as their impact on organizations.     

A strategic-tactical model for the supply chain design in the delocalization context: Mathematical formulation and a case study

In this paper, we propose a mathematical model for the design of supply chains in the delocalization context. Our main objective is to develop a strategic-tactical supply chain design model that integrates all the relevant components that characterize the delocalization problem. We adopt the activity based approach to model the problem and we focus on the logistic decisions of activity location, technology choice, supplier selection, etc., and the financial decisions of transfer pricing, transportation costs allocation, etc. The mathematical formulation is illustrated by a case study from the automotive sector. A comparison between the model solution and the real decisions is used to prove the applicability and the utility of the proposed model.