Channel power, commitment and performance toward sustainable channel relationship

The primary purpose of this article is to expand our understanding of the sophisticated utilization of independent incentives and its influence on channel relationship commitment and performance toward sustainable channel relationship and competitive advantage. On the basis of a conceptual framework, this paper develops an analytical model to explore the correlations among channel power, relationship commitment and channel performance under the implementation of diverse independent incentives. The proposed model is empirically tested using LISREL and questionnaire survey data sampled from the liquid crystal display TV manufacturer-dealer channels of the optoelectronic industry in Taiwan. The results reveal that the sophisticated utilization of independent incentives through channel relationship commitment as the key mediator determines the channel performance; furthermore, relative to contractual incentives, relationship-building incentives appear to be more effective in promoting channel relationship commitment, thus leading to superior channel performance toward the ultimate goal of sustainable channel relationship management.     

The impact of team‐member exchange,differentiation, team commitment,and knowledge sharing on R&D project team performance

This paper integrates team‐member exchange (TMX), affective commitment, and knowledge sharing to examine how work unit TMX influences employees' R&D project team commitment and intention to share knowledge, and how team knowledge‐sharing intention and TMX differentiation influences team performance. The results support the relationships between work unit TMX and employees' intention to share knowledge and team commitment. In addition, the results show that work unit TMX increases intention to share knowledge through increasing group members' team commitment. At the group level, the results support the relationships between team knowledge‐sharing intention and team performance. The results also show that TMX differentiation moderates the relationship between work unit TMX and team performance. That is, greater work unit TMX is more likely to achieve higher team performance in a team with low TMX differentiation as opposed to a team with high TMX differentiation. Implications for theory building, future research, and R&D management are discussed.     

The Role of Trustworthiness in Maintaining Employee Commitment During Restructuring in China

The influence of competency- and affect-based attributions of managerial trustworthiness on employee commitment during restructuring is investigated within a large telecommunications firm in greater China. It was found that competency-based attributions are positively related to employees' value commitment, whereas affect-based attributions are positively related to employees' continuance commitment (i.e., the propensity to maintain employment). Attributions of trustworthiness were also found to interact with perceptions of uncertainty associated with restructuring. Although no interaction effects were found for continuance commitment, three moderating effects involving trustworthiness attributions were observed between uncertainty and value commitment. Generally speaking, these moderating influences of trustworthiness tended to attenuate the influences of uncertainties on commitment. Overall, the relationships between uncertainties associated with restructuring and organizational commitment were negative with the exception of uncertainty about the restructuring effort itself, which was positively related to continuance commitment.     

Channel relationship and business uncertainty: Evidence from the Hong Kong market

This study examines the dynamics of channel relationships between an end user and multiple suppliers in Hong Kong, a major international logistics hub in Asia. Drawing on the literature on channel relationships, we examine the links between different channel relationship variables and the contingent effect of business uncertainty on the links between these variables and supplier commitment. The results of the study indicate that expected relationship continuity mediates the effects of trust and relationship quality on commitment. Furthermore, the positive effect of trust on commitment is found to be stronger when business uncertainty is high than when business uncertainty is low. As supply chain management is becoming essential for firms to succeed in today's business, industrial marketing managers need to be aware of the dynamics in channel relationships and to better manage their supply chains. The implications of our findings for research and for the practice of channel relationship management are provided.     

Utilizing a Value of Information Framework to Improve Ore Collection and Classification Procedures

This case study utilizes a value of information decision framework to provide mine managers guidance regarding the purchase of ore grade scanners. LKAB's Kiruna mine produces three types of iron ore to meet long-term contractual agreements on a monthly basis. There is a priori uncertainty regarding the ore type in any given mineable section of the orebody. In addition, there is extracted ore type uncertainty that is introduced by the mining process. These uncertainties are better understood by obtaining more precise (real-time) information. In addition, a better understanding of the uncertainties can improve the quality of operational decisions and increase the overall profitability of the mine. This case study provides a framework for measuring the economic impact of information purchases in a mining context and discusses the implications of those findings.     

Market and supplier characteristics driving distributor relationship quality in international marketing channels of industrial products

Although we are beginning to comprehend the fundamental importance of relationship quality in interorganizational exchange, a relatively small, but growing, body of literature that has not kept pace with the tremendous growth in global channel transactions has been devoted to the development of cross-border relationship quality. This study addresses this gap in the literature by investigating the extent to which certain market and exporter characteristics affect the development of relationship quality in the context of importing distributors trading with exporting manufacturers of industrial products. Relationship quality is viewed as a higher-order construct composed of trust, commitment, and satisfaction. Findings reveal that psychic distance is related negatively to relationship quality, while transaction-specific investments and role performance are associated positively with relationship quality. No link is found between environmental uncertainty and relationship quality. Managerial implications of the findings are considered and limitations along with future research directions discussed.     

When do they care to share? How manufacturers make contracted service partners share knowledge

Manufacturing firms that outsource customer-facing services, risk losing touch with their customers and thereby forfeit valuable market and customer-related knowledge. To maintain informed and competitive, the manufacturer's customer-facing service partners should engage in knowledge sharing and transfer their market knowledge and insight to the firm. Building on knowledge transfer and organizational learning theory, this study investigates how contractual and non-contractual (i.e., relationship) characteristics influence knowledge sharing behavior by service partners. The authors specifically distinguish between sharing exploitative knowledge (insights that help the manufacturing firm to refine current skills and procedures) and exploratory knowledge (insights that help the manufacturing firm to challenge prior approaches to interfacing with the market). Based on survey data from 70 relationship managers from a large multinational firm and partial least squares path modeling, results show that contractual incentives had a negative effect on exploratory knowledge sharing, but not on exploitative knowledge sharing. The level of contract specification and relationship quality positively related to both types of knowledge sharing. Relationship manager experience related positively to exploratory knowledge sharing, but not to exploitative knowledge sharing. These findings provide valuable insights on how (non-)contractual mechanisms can be used to manage knowledge sharing in outsourced services.     

Chinese firms’ sustainable development—The role of future orientation,environmental commitment,and employee training

In this research, we study the issues of corporate sustainable development in China. Based on relevant research, we propose a theoretical model showing the relationship among business environmental commitment, cultural value, employee training, and firm performance of sustainable development. It is argued that a cultural value (i.e., organizational future orientation) should be a key antecedent predicting business environmental commitment. On the other hand, a firm’s sustainable performance, such as performance in environmental protection, should be a major consequence of its business environmental commitment. Moreover, the relationship between business environmental commitment and sustainable performance can be moderated positively by the level of employee training. Other conditions being equal, the better the employee training is, the stronger the relationship between business environmental commitment and sustainable development performance. Testing the relevant hypotheses in China, we find evidence supporting our model proposed in this paper. We conclude with a discussion on the implications of our findings for academic researchers and practitioners.     

Contractual arrangements between farmer cooperatives and buyers in China

The agrofood market in China is dominated by spot market exchanges of small farmers and various small traders, with only minor penetration of the modern supply chain at the farmgate. The emerging Farmer Professional Cooperatives (FPCs) are expected to facilitate vertical coordination. The overall goal of this study is to investigate the contractual arrangements between the FPCs and the buyers. Based on a national representative survey of 157 FPCs in China, this study shows that 32% of FPCs introduced written contracts in the primary marketing channel. Contracts are more likely to be adopted in the livestock sector and are positively related to the scale of production. While branding promotes contracts between FPCs and buyers, public certification of quality and food safety often substitutes for contracts. Furthermore, the membership heterogeneity of FPCs affects an FPC’s decision to use contractual arrangements with the buyer.     

The environment and its impact on satisfaction with supplier performance: An investigation of the mediating effects of control mechanisms from the perspective of the manufacturer in the U.S.A.

An important question for manufacturers relates to how to conduct exchanges with suppliers when the interaction is done in an uncertain environment. Existing literature suggests the use of unilateral control (i.e., vertical control over the supplier) to reduce the negative effects of environmental uncertainty, whereas recent research on relational norms suggests bilateral control mechanisms (i.e., the norm of information sharing) as an alternative. We propose that in order to secure satisfactory performance from suppliers, manufacturers rely on different control mechanisms depending upon the level of environmental uncertainty on one hand, and the nature of interdependence in the manufacturer-supplier relationship on the other. Our empirical results based on 162 manufacturers indicate the following: 1) manufacturers' reliance on vertical control increases as environmental uncertainty and power asymmetry increase; 2) by contrast, reliance on the bilateral information sharing increases as interdependence magnitude increases and as environmental uncertainty decreases; 3) suppliers' performance, as perceived by manufacturers, increases with the use of bilateral information sharing.     

Improving firm positioning through enhanced offerings and buyer-seller relationships

We analyze the strategic repositioning of firms through changes in their market offerings and buyer-seller relationships. Based on literature from strategy, marketing, economics, and information systems, we formulate a two-by-two matrix to examine alternatives for positioning. We evaluate the framework with four case studies of companies that have recently moved toward more complete product/service offerings and stronger relational linkages with customers. These moves followed two different paths. The product/service path initially focused on the development of new and related products, product bundles, and the addition of product-related services. The relational path first focused on establishing closer relationships with customers including closer operational linkages, enhanced information sharing, more fully articulated legal and contractual obligations, and enhanced cooperation. In all the cases, the strategic repositioning was influenced by customer needs and enabled by information technology and the acquisition of new competencies through networking.     

The Effects of Supplier Involvement and Knowledge Protection on Product Innovation in Customer–Supplier Relationships: A Study of Global Automotive Suppliers in China

Globalization drives firms to develop product innovation through their global supply chains. While innovations generated by supply channel members, as opposed to individual partners, are playing an increasingly important role in the success of all supply chain partners, there has been limited research on how supply chain relationships cultivate the process of such innovation generation, particularly in emerging markets. Correspondingly, this study explores how multinational suppliers can develop adaptive product innovation to create competitive advantage in emerging markets. Drawing on the knowledge‐based view and transaction cost economics, this study investigates the influence of supplier involvement and other factors on supplier innovation and performance. The results of a survey of 170 multinational automobile suppliers in China provide support for most of the hypotheses. Specifically, supplier involvement in codesign has an inverted U‐shaped relationship with product innovation. Furthermore, knowledge protection, trust, and technological uncertainty are all found to drive greater product innovation. In addition, the institutional environment moderates the effect of product innovation on performance. Overall, this study enhances our understanding of how MNEs can acquire local knowledge and develop adaptive products in emerging markets.     

The Role of Market Information in New Product Success/Failure

Although no single variable holds the key to new product performance, many of the widely recognized success factors share a common thread: the processing of market information. Understanding customer wants and needs ultimately comes down to a company's capabilities for gathering and using market information. And another well-acknowledged success factor the integration of marketing, R&D, and manufacturing focuses on the sharing of information. In other words, a firm's effectiveness in market information processing—the gathering, sharing, and use of market information—plays a pivotal role in determining the success or failure of its new products. Brian D. Ottum and William L. Moore describe the results of a study that examines the relationship between market information processing and new product success. They also explore the organizational factors that facilitate successful processing of market information, and thus offer ideas for better managing the development of new products. The respondents—marketing, R&D, and manufacturing managers from Utah-based computer and medical device manufacturers—provided information about 58 new products, including equal numbers of successes and failures. The survey responses reveal strong relationships between product success and market information processing, with success most closely linked to information use. In other words, the gathering and sharing of information are important, but only if the information is used effectively. In 80 percent of the product successes studied, the respondents ultimately possessed and used a greater than average amount of market information. And in 75 percent of the failures, the respondents knew less than average about the market at project inception, and gathered or used less than the average amount of market information during the project. For the projects in this study, the integration of marketing, R&D, and manufacturing contributed not only to the sharing and use of information, but also to overall project success. However, the results of the study suggest that the way in which a project is organized plays only an indirect role in determining new product success—most likely by improving the processing of market information. From a managerial perspective, the most important variables identified in the study are market information shared, market information used, and financial success.     

Cultural vs. operational market orientation and objective vs. subjective performance: Perspective of production and operations

The relationship between market orientation and organizational performance has been the focus of many studies for the last few years. The conclusions reported are very diverse and even contradictory. This ambiguity is reinforced to some extent by the high degree of methodological heterogeneity in the definition and measure of market orientation and organizational performance and the empirical formalization of the relationship between both concepts. This study tackles this question by comparing different methodological approaches. Three key aspects are considered: (1) cultural and operational approaches for measuring market orientation; (2) objective and subjective measures of performance; and (3) the source of information in the organization, specifically the perspective of production and operations. The results obtained from a sample of Spanish industrial firms show a stronger positive relationship for operational market orientation and subjective performance. Moreover, the adoption of ‘operational recipes’ of market orientation by the production and operations function seems to improve organizational performance regardless of the existence of any cultural support for market orientation.     

The impact of cultural differences in U.S. business-to-business export marketing channel strategic alliances

Given slower growth and fierce competition in the domestic market, combined with increasing opportunities in many overseas markets, more and more U.S. companies are going international. While many doing so may initially use a direct exporting approach that relies on foreign channel members to distribute the product in the host country, over time, strategic alliances among distribution partners may form based on trust, commitment, and cooperation. For these alliances to succeed, the partners' perceptions of these variables need to be congruent so that expectations on each side of the dyad are reasonably similar. However, what happens when the cultural backgrounds of each channel partner are substantially different? This study empirically examines whether cultural differences do affect trust, commitment, and cooperation in international marketing channel alliances between U.S. exporters and their foreign distribution partners. Based on the survey responses from 149 U.S. exporters with marketing alliances abroad, cultural differences do affect trust, commitment, and cooperation. The greater the cultural differences between channel partners, the lower the levels of trust, commitment, and cooperation. Managerial implications are discussed, and study limitations are identified.     

Resource allocation for open and hidden learning in learning alliances

A satisfying relationship between alliance members is important for the success of learning alliances, especially those in the Asia Pacific region. While learning alliances create conditions for firms to leverage each other’s knowledge, firms may be opportunistic and appropriate each other’s knowledge, and firms face a tradeoff because appropriation affects the relationship between alliance members. After reviewing previous studies on knowledge sharing in learning alliances, we differentiate firms’ learning into open and hidden learning, and argue that open learning contributes to competence trust, while hidden learning reduces goodwill trust, which consequently affects open learning. Learning uncertainty, introduced in this study, and learning benefits determine expected payoffs of open and hidden learning, which influence firms’ resource investment in them. This study also finds that behavior and output control are important moderators of the relationships between expected payoffs of open and hidden learning and the resources invested in them. Thus, this study advances our understanding of the tension between cooperation and competition and the learning dynamics in learning alliances. The solution to solving the knowledge sharing dilemma in learning alliances is to promote partners’ open learning and to restrain their hidden learning. Therefore, this study argues that, with open and hidden learning, implementing proper control measures and influencing partners’ learning benefits and uncertainties can settle this dilemma. Furthermore, this study classifies the relationships of learning alliances into four types and gives an explanation of why horizontal learning alliances are usually more competitive than vertical ones.     

Managing channel coordination in a multi-channel manufacturer-retailer supply chain

With the rapid development of e-commerce and the adoption of dual channels, increasingly manufacturers and retailers are implementing differentiated branding and profit sharing strategies in order to improve channel coordination and supply chain performance. In this study, we focus on the strategic roles played by differentiated branding and profit sharing in a multi-channel manufacturer-retailer supply chain. We use an analytical model to investigate this issue. Our results show that although differentiated branding effectively alleviates channel competition and conflict, it is general not sufficient to achieve full channel coordination, and an additional coordination mechanism is necessary. The additional coordination mechanism we consider is profit sharing, using the Nash bargaining model. Based on our results, we derive optimal market strategies and identify probable paths for future research.     

Supply chain integration and performance: The effects of long-term relationships, information technology and sharing, and logistics integration

Supply chain integration is widely considered by both practitioners and researchers a vital contributor to supply chain performance. The two key flows in such relationships are material and information. Previous studies have addressed information integration and material (logistics) integration in separate studies. In this paper, we investigate the integrations of both information and material flows between supply chain partners and their effect on operational performance. Specifically, we examine the role of long-term supplier relationship as the driver of the integration. Using data from 232 Australian firms, we find that logistics integration has a significant effect on operations performance. Information technology capabilities and information sharing both have significant effects on logistics integration. Furthermore, long-term supplier relationships have both direct and indirect significant effects on performance; the indirect effect via the effect on information integration and logistics integration.     

The performance implications of power–trust relationship: The moderating role of commitment in the supplier–retailer relationship

The current research examines how coercive power and non-coercive power affect trust and how these relationships are affected by affective and calculative commitment. It also expands the understanding of the role of an under-researched dimension of performance, i.e., strategic performance, and studies it as a mediating variable in the relationship between trust and financial performance. The proposed model is empirically tested using Partial Least Squares (PLS) in supplier–retailer channel in Taiwan. The findings reveal that affective commitment has a positive moderating effect on the negative relationship between coercive power and trust, while calculative commitment has a negative moderating effect on the positive relationship between non-coercive power and trust. The results also indicate that strategic performance partially mediates the effect of trust on financial performance. The research advances theoretical understanding on the complex power–trust relationship and provides insights into the role of commitment in both enabling and undermining channel relationships. The findings highlight the importance of building affective commitment in channel relationships and the critical role of strategic performance in the trust–financial performance relationship.     

Applying a relationship marketing perspective to B2B trade fairs: The role of socialization episodes

This study addresses the business-to-business (B2B) trade fair from a relationship marketing perspective. The main purpose is to comprehend buyer and seller interactions in the context of the trade fair, evaluating their impact on relationship quality and on the development of the relationship in the long-term. A research model is proposed with the underlying rationale that socialization episodes (i.e., social and information exchange) at B2B trade fairs are important catalysts for relationship quality and development. An empirical study was conducted to test the theoretical model. Data was collected at an international trade fair in Portugal and gathered information about visitor-exhibitor interactions. Findings reveal that the typical atmosphere of the B2B trade fair setting encourages socializing behaviors useful to generate bonds and commitment and, ultimately, enhances the relationship quality. Product importance moderates the relationship between information exchange and relationship quality, and relationship age moderates the relationship between social exchange and relationship quality. The study draws managerial implications for exhibitors, visitors and trade fair organizers and proposes avenues for future research.