Manufacturer–reseller e-business arrangements: The impact of inequity on relationship performance and the moderating role of dependence

Manufacturer–reseller e-business arrangements are changing the nature of channel relationships. When manufacturers supply e-business tools to their resellers, resellers may perceive that the benefits of technology are not shared equitably. This research explores this issue by examining two technology based antecedents of perceived inequity from the reseller perspective. We also examine the impact of perceived inequity on relationship performance, and the moderating role of reseller dependence on the proposed inequity–performance link. The results of the empirical test involving a sample of 224 resellers suggest that perceived inequity negatively impacts relationship performance, while reseller dependence plays a moderating role. Implications of these findings for researchers and managers are discussed.     

The impact of post-merger integration on the customer–supplier relationship

While the impact of mergers and acquisitions (M&A) on internal stakeholders has generated considerable empirical study, comparatively little academic attention has been paid as to how external stakeholders such as customers are affected by, and respond to, M&A activity. This study adopts case-study methodology to illuminate how the customer–supplier relationship is affected by post-merger integration processes in the business-to-business context, with the aim of increasing our understanding of why customers respond to M&A in the ways that they do. The findings highlight the importance of a set of critical customer relationship variables through which post-M&A integration actions can influence customers' perceptions of the merged organisation and, ultimately, their purchase decisions. We also identify a set of specific individual integration actions that appear to trigger changes in the critical customer relationship variables. Together, the findings contribute to our understanding of the precise mechanisms through which M&A can affect customers' purchase decisions and the combining firms' market-related performance. More broadly, consistent with the stakeholder perspective, they reinforce the need to take account of external as well as internal stakeholders when considering the drivers of M&A outcome. Implications are discussed for future research as well as for B2B service industry executives involved in M&A.     

The role of information technology in strategic buyer–supplier relationships

Information technology (IT) has long been acknowledged as an integral part of inter-organizational business exchange. The extant research, however, tends to emphasize the focal company perspective and focuses on operational issues, perceiving IT and business relationships as separable. Through a qualitative dyadic case study, our study defines how IT is positioned with regard to various elements of a strategic buyer–supplier relationship and the respective actors' operational and managerial behaviors. The study defines the role of IT regarding the structural, action, and management layers of a relationship and shows how IT can be a strong element around which relationship management activities are implemented to improve the consistency and performance of the relationship. The study prepares the ground for further qualitative and quantitative research to enhance a holistic understanding on IT in relation to the structures and processes in inter-organizational contexts of business relationships and networks.     

The effect of social capital on local suppliers’ exploitative and exploratory learning in global buyer–supplier relationships: the moderating role of contract specificity

Drawing on the theories of social capital (SC) and organizational learning, a contingency theoretical framework that examines the impact of structural, relational, and cognitive SC on local suppliers’ exploitative and exploratory learning in the context of global buyer–supplier (GBS) relationships in China was developed. The extent to which the impact is moderated by the contract specificity between the buyer and supplier is also examined. The empirical results show significant positive impacts of structural and relational SC on local suppliers’ exploitative learning but significant negative impacts on local suppliers’ exploratory learning. More specifically, contract specificity strengthens the positive effects of all three dimensions of SC on exploitative and the negative effects of structural SC and relational SC on exploratory learning. They put forward several potential implications for practicing managers and policymakers.     

How does trust affect alliance performance? The mediating role of resource sharing

Although the direct impact of trust on alliance performance is well documented, little is known about how trust affects alliance performance. Based on the resource-based view, this study develops a model that employs resource sharing as a critical mediating mechanism through which trust affects alliance performance. Using survey data from 205 Chinese firms that were engaged in alliances, we find broad support for the mediated effects of trust. Interestingly, we also find that goodwill trust matters more to tangible than to intangible resource sharing, whereas competence trust matters more to intangible than to tangible resource sharing. Overall, our research provides important implications for firms seeking to translate their trust into superior alliance performance.     

Explaining the entrepreneurial orientation–performance relationship in emerging economies: The intermediate roles of absorptive capacity and improvisation

Research has established the relevance of entrepreneurial orientation (EO) to firm performance but skepticism remains because of the ambiguity surrounding how EO might improve firm performance. We examine the key concepts of absorptive capacity and improvisation as two alternative learning modes serving as intermediate steps between EO and firm performance. Locating our study within manufacturing SMEs in Malaysia, we find that absorptive capacity enhances the EO–performance relationship, both as a moderator and a mediator. In contrast to expectations, however, improvisation showed no such effects but conferred its own separate benefits instead. We further discuss the different effects of these learning modes on high performance and low performance groups.     

Is the theory of trust and commitment in marketing relationships incomplete?

Trust and commitment are central to the relational mediators model of relationship marketing. Extant research suggests that trust enhances commitment, as a trusted partner is so highly valued that a channel member will invest in the relationship and put forth efforts to maintain that relationship. This study re-examines the causality between trust and commitment by comparing alternative models across three datasets (including the seminal Morgan and Hunt 1994 data). The results indicate that while trust enhances commitment, commitment can also erode trust. Several viable, theoretically-driven explanations for this negative effect are discussed, and propositions are developed for future research.     

Toward a typological view of buyer–supplier relationships: Challenging the unidimensional relationship continuum

Building on the configurational approach to buyer–supplier relationships (BSRs), we attempt to define a parsimonious framework for relationship integration to create a holistic understanding of relational configurations. Following the principles of typological theory building, this study aims to understand the mechanisms underlying relationship integration and type-specific performance. To that end, we use the relational governance theory to build a three-dimensional (economic, structural, and social) framework that distinguishes BSRs. Using the dimensions from previous BSR-typologies, we propose eight relational configurations, which we test against empirical data from 246 dyadic industrial BSRs. Our results show eight distinct BSR-configurations with varying levels of operational performance. Our work contributes to the BSR literature by providing a unified framework of relational configurations and by demonstrating the link between relational configurations and performance.     

Display rule perceptions and job performance in a Chinese retail firm: The moderating role of employees’ affect at work

This study investigates the relationship between emotional display rule perceptions and job performance. Building on theories of emotional labor and ego-depletion, we cast employees’ positive and negative affective states at work as crucial moderators. Results obtained in a sample of 245 frontline service employees and their 63 immediate supervisors from a retail firm in China demonstrate that display rule perceptions were positively related with task and contextual performance among employees experiencing little positive affective states at work, but not among employees experiencing highly positive affect. Moreover, display rule perceptions were positively associated with one aspect of contextual performance (voluntary learning) among employees with little negative affect, whereas highly negative affect buffered this linkage. Taken together, this study highlights performance consequences of employees’ display rule perceptions and uncovers key boundary conditions for these relationships.     

The impact of buyer–supplier relationships on supplier innovativeness: An empirical study in cross-border supply networks

Drawing on organizational learning and the relational view of the firm, this study seeks to understand the factors that drive supplier innovativeness in the context of cross-border supply relationships. To address this research objective, a survey included 189 parts and components manufacturers (suppliers) in Turkey; hierarchical regression analysis is used to test the hypotheses. The findings demonstrate that interfirm knowledge sharing routines, relation-specific investments, and governance mechanisms may promote supplier innovativeness by expanding the supplier's knowledge resources and encouraging it to invest in innovative activities. In addition, this research emphasizes differentiating effects of the supplier's tier position for the impacts of buyer assistance and cooperative tie. As such, this study contributes to the purchasing and supply management literature by empirically showing how buyer–supplier relationships, particularly in cross-border supply networks, affect supplier innovativeness.     

Examining the new product innovation – performance relationship: Optimizing the role of individual-level creativity and attention-to-detail

New product innovation has been identified as the key to firms' marketplace success, profit and survival. Yet, the failure rate for new products is high. Because of the high costs associated with new product development, there is considerable theoretical and managerial interest in how to minimize the high failure rates of new products and what separates new product winners from losers. This study focuses on individual level ambidexterity – namely head of the R&D departments' capacity to engage in creativity and attention-to-detail simultaneously, a skill involving different centers of attention, and relying on somewhat incompatible behaviors and processes. The ability to engage in these behaviors simultaneously is seen as being ambidextrous. Drawing from the data of 150 advanced manufacturing firms in India (gathered from one CEO and one head of the R&D department for each firm), the results show that when an individual head of R&D engages heavily only in creativity, too many new, risky ideas may come and when he/she engages heavily only in attention-to-detail, he/she may suffer through a lack of novel ideas. Both approaches limit individual's contribution to enhancing product innovation – financial performance relationship. The results also show that an individual head of R&D needs to engage in high levels creativity and attention-to-detail in the pursuit of enhancing product innovation to achieve superior financial performance.     

Asymmetric customer–supplier relationship development in Taiwanese electronics firms

The purpose of this paper is to analyse the relationship development stages of asymmetric customer–supplier relationships. The structure of relationships between larger customers and smaller suppliers has been the focus of a number of studies in IMP (Industrial Marketing and Purchasing Group) research. But, there is a paucity of research that examines development stages in relationships where a difference in size between the parties exists. The paper links the characteristics of asymmetric customer–supplier relationships and the relationship development stages through a literature review. The findings from a set of five in-depth case studies of asymmetric customer–supplier relationships in the Taiwanese electronics industry are presented. The case studies involved 50 semi-structured interviews with customer and supplier executives and, in addition, multiple observations of customer–supplier interactions within each case study. Individual and cross-case analysis was conducted to examine the links between the characteristics of asymmetric customer–supplier relationships and relationship development stages. The findings revealed that asymmetric customer–supplier relationships in the Taiwanese electronics industry were very unbalanced and vulnerable in the exploratory stage of development. In the developing stage relationships were more likely to develop if suppliers and customers mirrored each other's behaviour and echoed each other's priorities. In the stable stage suppliers and customers worked on shared and balanced contributions to the relationship. The paper contributes to the understanding of how smaller suppliers and larger customers can identify and develop key sets of relationship characteristics through the exploratory, developing and stable stages of asymmetric relationship development from both customer and supplier perspectives.     

The origins of power in buyer–seller relationships

Who, or what, holds power in business-to-business buyer–seller relationships is a debate at the heart of power theory. Power in buyer–seller relationships is variously seen as the property of organizations, individuals or relationships yet to be theoretically valid and useful to management, integration of these schools of thought needs to be operationalized. This paper opens up future research avenues through identifying how buyers and sellers understand the origins of power and the nature of self perceived and countervailing power. The paper presents results from 10 focus groups of both buyers and sellers revealing the underlying origins of experienced power. The results support the proposition that power in buyer–seller relationships is a pluralistic concept and that extant theories focused on organizational, individual or relational elements of power are independently too narrow in their reflections of the power construct; rather, they are all part of the same broad construct.     

The mediating role of key supplier relationship management practices on supply chain orientation—The organizational buying effectiveness link

The role of key supplier relationships and their link with purchasing performance are poorly recognized in current business-to-business marketing literature. Given the predominance of collaborative supply chain relationships, purchasing must be considered to be providing value, thereby implying its effective nature. This study introduces a conceptual model of the relationship between supply chain orientation (SCO) and key supplier relationship management (KSRM) with organizational buying effectiveness (OBE) as a measure of effective purchasing behavior. To extend the model's nomological network, we link OBE with firm profitability. We find that SCO and KSRM have a strong positive influence on OBE. Furthermore, KSRM is demonstrated to be a significant mediator in the SCO–OBE relationship. Finally, OBE significantly and positively influences firm profitability, suggesting that it adequately addresses the aspects of effective purchasing behavior. We also discuss theoretical and managerial implications as well as future research directions in light of the limitations of this study.     

When does (not) a coopetitive relationship matter to performance? An empirical investigation of the role of multidimensional trust and distrust

Despite substantive evidence showing mixed results on the association between a coopetitive relationship and performance, surprisingly little theory explains the contingencies under which a coopetitive relationship does (or does not) matter to performance. By combining insights from the trust-distrust literature and 18 in-depth managerial conversations, this study unpacks the multidimensional nature of trust (i.e., goodwill and competence) and distrust (i.e., malevolence and discredibility) and suggests that the effect of a coopetitive relationship matters to performance, when both trust and distrust are present (at moderate to high levels), but fails to do so when one of them is low and the other is high. The results based on a sample of Swedish firms provide full support for the hypotheses. In terms of theoretical contributions, this study challenges the old wisdom suggesting trust as good and distrust as bad, extends the current understanding of trust and distrust beyond their one-dimensionality, and provides a novel approach to understanding when a coopetitive relationship performs well and when it does not. In terms of practical relevance, it suggests that firms adopt a paradox mindset (with a focus on both trust and distrust) to unlock the positive potential of a coopetitive relationship.     

The moderating effect of brand strength in manufacturer–reseller relationships

This study investigates the moderating effect of brand strength in manufacturer–reseller relationships. The business marketing literature has not previously addressed brand strength differences. This research tests these brand strength differences on a conceptual framework consisting of pathways from manufacturer brand benefits (manufacturer support, brand equity and customer expectations) to reseller relationship outcomes. A multi-group structural equation analysis shows that there are no differences in the manufacturer brand support and brand equity effects on reseller satisfaction between major and minor brands. However customer expectations are important when resellers evaluate minor brands, but not for major brands. Furthermore, the findings show that resellers of minor brands are more committed to and more likely to trust manufacturers of minor brands.     

An exploration of the ‘dark side’ associations of conflict,power and dependence in customer–supplier relationships

The purpose of this paper is to present the findings from a critical literature review of the ‘dark side’ issues related to three constructs, namely conflict, power and dependence, in customer–supplier relationships. Previous research has focused on discrete characteristics that influence relationships, but there is a paucity of research that considers the intertwining of a set of characteristics that may create darker associations or consequences for relationships. The paper contributes to IMP literature through this investigation of darker associations of relationships as much of the previous literature on customer–supplier relationship development has been concerned with building trust, developing commitment or managing long-term goals and mutuality (IMP Group, 1982).The paper considers the research on conflict, power and dependence in relationships, tracing its development from January 1980 to the end of 2014, and assessing the dark side issues raised in previous research, placing particular emphasis on ‘asymmetric’ customer–supplier relationships.The contribution of the paper lies in its critique of this focused body of literature and in the development of a better understanding for future IMP researchers on the derivations, foundations and findings concomitant to the ‘dark side’ of conflict, power and dependence in customer–supplier relationships. The paper proposes themes and future avenues of research related to the dark side of conflict, power and dependence, placing emphasis on the ‘bi-polarity’ of each relationship characteristic, the dynamics of relational benefits, the consequences of their evolution on inter-organizational trust and its impact on the dark side of relationships. Hence, the paper contributes through the identification of potential research areas and propositions to guide future conceptual developments in the field.     

Entrepreneurial orientation and SME performance in China’s changing environment: The moderating effects of strategies

Recent research has found an inverted U-shape relationship between entrepreneurial orientation (EO) and firm performance in the Chinese context. Building on Miles and Snow??s (1978) strategy framework and Scott??s (1995) country institutional profile, we propose that prospector and analyzer strategies align better with entrepreneurial orientation to allow firms to fully benefit from their risk-taking, proactiveness, and innovativeness. Data collected from 155 SMEs in China confirmed that prospector and analyzer strategies alleviated the curve significantly. The defender strategy enhanced the curvilinearity, yet this moderating effect was insignificant. Implications for policy-makers, international businesses, and entrepreneurial firms in China are discussed.     

Do global firms increase their environmental disclosure and performance? Symbolic versus effective operations and the moderating role of liability of origin. Legitimation implications

This paper analyzes the debate regarding the implications of international firms' strategies for their environmental approaches across multiple regions by distinguishing between symbolic and effective environmental operations. Furthermore, we extend previous literature by considering the relevant moderating role of a firm's liability of origin on these relationships. Using panel data of 292 firms in the period from 2011 to 2018 in the energy and utility sectors, our results show that a firm's progressive globalization increases its environmental disclosure but does not affect its environmental performance. Interestingly, our results demonstrate that a weak home country institutional context reinforces a global firm's interest in gaining legitimation through both its environmental disclosure and performance; however, a strong level of home country institutional development reduces its interest in environmental sources of legitimation. Our results contribute to previous literature on how global firms may gain environmental legitimacy using diverse strategies.