Does relationship learning lead to relationship value? A cross-national supply chain investigation

In global business-to-business markets, shared resources between buyers and suppliers often result in competitive advantages and enhanced relationships between firms. Unfortunately, there is a paucity of research regarding learning capabilities between business partners in a cross-border setting. This study takes the approach to integrate customer value literature into interorganizational learning theory and adopts the often-neglected theoretical perspective of transaction value by contextualizing inter-firm collaboration in terms of relationship learning and value co-creation viewed by both the buyers and sellers in one single study. Through the development of a conceptual framework that examines how global environmental and inter-organizational conditions influence learning capabilities, the study investigates how relationship learning influences relationship value for both supplying and buying firms. Using a survey of 126 cross-border dyads in the industrial chemical, packaging, consumer durable, and apparel industries, the authors show how relationship learning is valued by both buyers and suppliers, and how it is critical when viewing the “supplier as a customer.” The results indicate the strategic nature of relationship learning in maintaining cross-border business-to-business relationships. Simultaneously, the findings provide evidence that cultural distance is not a significant influence on the firm's propensity to share knowledge with its global partners. It helps advance our understanding of the significance of cultural-pollination in the era of globalization.     

Creating supply chain relational capital: The impact of formal and informal socialization processes

Establishing closer social ties between buying and supplying organizations is increasingly cited as a critical differentiator of high and low performers in global supply chains. While the creation of relational capital within an organization is a relatively well identified concept in organizational research, comparatively little research exists on the inter-organizational socialization processes that create relational value in supply chains. In our research, we extend theoretical models of group social conduits into this context, and develop a model that posits the impact of formal and informal socialization processes on the creation of relational capital between buyers and suppliers. Results from our study of 111 manufacturing organizations in the United Kingdom suggest that informal socialization processes are important in the creation of relational capital, which in turn can lead to improved supplier relationship outcomes. Formal bridging socialization conduits appear to play a lesser role in deriving these benefits.     

Examining supply chain relationships: Do buyer and supplier perspectives on collaborative relationships differ?

Firms are building collaborative relationships with their supply chain partners in order to achieve efficiencies, flexibility, and sustainable competitive advantage. However, it is unclear if collaborative relationships provide benefits that compensate for the additional expense associated with such relationships. Further, it is unclear what factors promote successful collaborations. This research examines collaborative relationships in two separate studies using structural equation modeling: one study examines buyers’ perceptions and the second study examines suppliers’ perceptions. The two studies are then compared using invariance testing in order to determine economic and relational factors that drive satisfaction and performance from each party's perspective. Results show that collaborative activities, such as information sharing, joint relationship effort, and dedicated investments lead to trust and commitment. Trust and commitment, in turn, lead to improved satisfaction and performance. Results from the two independent studies exhibit similarities and differences; while the conceptual model is highly similar, certain paths vary in their significance and/or their importance across buyer and supplier firms such that buyers focus more on relationship outcomes while suppliers look to safeguard their transaction specific investments through information sharing and joint relationship effort. Managerial and theoretical implications of the findings are discussed.     

Buyer–Supplier and Supplier–Supplier Alliances: Do They Reinforce or Undermine One Another?

abstract    Previous research has portrayed buyer–supplier and supplier–supplier alliances as important mechanisms to foster learning and exchange efficiencies. Controversy remains, however, as to how these alliances interact. While some propose they reinforce one another (e.g. learning in horizontal ties generates positive spillovers to vertical ties), others propose a negative interplay (e.g. when increasing vertical-tie intensity, suppliers may weaken horizontal ties to avoid retaliation from buyers who wish to preserve bargaining power). We empirically test these competing views using survey data from the Brazilian auto-parts industry. In an attempt at reconciliation, we propose that the positive or negative interaction between vertical and horizontal alliances depends on the level of technological uncertainty of goods exchanged. Vertical ties seem to inhibit horizontal ties when technological uncertainty is low; when technological uncertainty is higher, vertical and horizontal ties do not seem to have any meaningful form of interaction. We discuss implications for theory and practice.     

Dynamic talent management capabilities and organizational agility—A qualitative exploration

Today's business environment is becoming increasingly dynamic, and the concept of agility is gaining attention in the corporate world and in academia. The objective of our research is to explain how talent management (TM) can shape talents as key human resources, according to company-specific agility needs, and thus contribute to gaining competitive advantage in dynamic firm environments. We approach this task by viewing it from the perspective of dynamic capabilities. A total of 24 semistructured interviews were conducted with senior TM professionals working in German companies differing in terms of size, age, structure, industry, and ownership. As a result, we identified three different types of dynamic TM capabilities promoting organizational agility to various extents. By rooting our qualitative study in the research fields of TM and agility in the under-researched theoretical realm of dynamic capabilities, we contribute to the theoretical as well as the empirical discussion by addressing the specific challenges of an increasingly dynamic environment. As a result, we provide a contextualized viewpoint from which to explain the process inherent in dynamic TM capabilities that continuously shape talent and organizational agility.     

The effects of supplier-to-buyer identification on operational performance—An empirical investigation of inter-organizational identification in automotive relationships

Over the past decade conceptual and empirical research in operations management has embraced the idea that collaborative supplier-buyer relationships are a source of competitive advantage for manufacturing firms. Anecdotal evidence from the Japanese and U.S. automotive industry and emerging research suggests that inter-organizational identification of suppliers with their buyers, termed supplier-to-buyer identification, is an unexplored factor of relational advantage. This study presents a model and empirical test that supplier-to-buyer identification fosters superior operational performance by enhancing trust, supplier relation-specific investments, and information exchange. Through a survey of 346 automotive supplier-buyer relationships, the findings show that supplier-to-buyer identification directly impacts supplier relationship-specific investments and information exchange, although most of the latter effect is mediated by trust. The findings also indicate that supplier relation-specific investments and information exchange play different but complementary roles in influencing operational performance. The results suggest new directions for supplier-buyer relationship research in operations management and important managerial implications.     

Strategic purchasing and supplier partnerships—The role of a third party organization

This study explored how a credible third party facilitated the development of supplier partnerships. By identifying qualified potential suppliers, serving as a surrogate for legitimacy for supplier firms and providing a market place for the potential partners to meet, the third party organization provided key compensating mechanisms to reduce the power and social distance and overall transaction costs associated with collaborating to effect supplier relationships between the parties. The study contributes to the supply and purchasing literature by integrating the role of third parties into research on buyer–supplier relationships that have so far been viewed predominantly as dyads and by demonstrating how third parties may actually influence relationships between buyers and suppliers. Our findings also provide firms with some guidelines on building successful buyer–supplier partnerships.     

Organisational Supplying Behaviour: Understanding supplier needs,wants and preferences

The purpose of this article is to enhance understanding in the P&SM field of supplier behaviour by exploring their needs, wants and preferences. The characteristics of customers that suppliers need, want and prefer have been conceptualised as ‘Sources of Supplier Value’ (SOSV) and the article seeks to establish a vocabulary for describing supplier needs, wants and preferences and their impact on buyer attractiveness. To achieve this a pilot study was conducted using face-to-face interviews with key account managers and Managing Directors in 14 SMEs supplying UK supermarket buyers. The research identifies 49 elements in buyers’ purchase offerings, behaviours and characteristics that suppliers regard as important. The practical implication of this research is to improve the P&SM field's understanding of the behaviour of suppliers with a longer term view to improving the ability of all buyers to influence the behaviour of suppliers in ways that match the buyers’ requirements and preferences. Furthermore, in view of the current paucity of research and understanding in this subject area, the article presents a coherent theoretical framework, terminology and rationale for investigations into the phenomenon of Organisational Supplying Behaviour.     

Agility,adaptability, and alignment: new capabilities for PSM in a post-pandemic world

Purchasing and Supply Management (PSM) was overwhelmed by a perfect storm during the Covid-19 emergency, in both the public and private sectors. Many organizations were caught unprepared, and it became evident that they did not have the capabilities needed to quickly react and respond to changes caused by the pandemic. This poses the questions of where and how PSM systems should evolve to better contribute to organizational responsiveness to crisis events in the future. In this Editorial, which introduces the “PSM learning from the pandemic: transforming for better crisis management” Notes and Debates special issue, the six contributions included in this issue are discussed. We relate the evidence included in the contribution to three critical capabilities of supply chains in the post-Covid-19 business environment – agility, adaptability, and alignment – and, in this editorial, we discuss how they can be conceptualized from a PSM perspective. From a theoretical perspective, we provide a starting point for future studies that want to focus on how these capabilities can be deployed in PSM, and how they impact the supply network design. From a managerial perspective, these definitions provide preliminary points of discussion on what organizations can do to enhance these capabilities in the future.     

Structural investigation of supply networks: A social network analysis approach

A system of interconnected buyers and suppliers is better modeled as a network than as a linear chain. In this paper we demonstrate how to use social network analysis to investigate the structural characteristics of supply networks. Our theoretical framework relates key social network analysis metrics to supply network constructs. We apply this framework to the three automotive supply networks reported in Choi and Hong (2002). Each of the supply networks is analyzed in terms of both materials flow and contractual relationships. We compare the social network analysis results with the case-based interpretations in Choi and Hong (2002) and conclude that our framework can both supplement and complement case-based analysis of supply networks.     

Fostering strategic agility: How individual executives and human resource practices contribute

Strategic agility, as an observable organization performance outcome, results from the behaviors and skills of the organization's managers in taking and implementing strategic actions. So, the key to strategic agility is not just analytical strategy from superior minds or thoughtful and effective organizational design but the set of management practices, behaviors, skills, values and beliefs that animate the senior management of an organization in making and implementing strategic commitments. In particular, earlier research suggests that three vectors of forces enable strategic agility: strategic sensitivity, resource fluidity and collective commitment. Taking these as a basis, we identify specific individual behaviors, and analyze and review how skills, and practices driving these behaviors, and their supporting HR practices affect the strength of each vector, and of the forces that provide energy in fostering strategic agility. This provides a profile of skills and capabilities individuals need in order to best contribute to the strategic agility of their organization and of HR practices to put in place.     

Supplier dependence asymmetry and investment in innovation: The role of psychological uncertainty

A key source of competitive advantage for large firms accrues from investments in innovative products and processes by their suppliers, incentivized by a positive relationship climate. A fundamental hindrance lies in a condition that commonly characterizes buyer-supplier relationships: asymmetric levels of dependence between business partners. Such asymmetry has been shown to be detrimental to the relationship, enhancing the likelihood of conflict, and negatively impacting the performance of the more dependent party. Considering that such dependence asymmetry is likely to persist, large buyers face the challenge of promoting a relationship environment that provides an incentive for suppliers to invest in innovation. In this study, we propose that large, dominant buyers can influence suppliers' intentions and behaviors by mitigating the effects of their perceived riskiness and ambiguity that emerge from a situation of dependence asymmetry. Specifically, using the lens of resource dependence theory, we investigate the effects of these two psychological dimensions of uncertainty on a supplier's trust, commitment, and willingness to invest in innovation, as well as the moderating effect of a buyer's information sharing in shaping a supplier's perceived uncertainty. The model is tested with a scenario-based experiment and results are corroborated by interviews with experienced managers of retail suppliers. Our findings indicate that a supplier's dependence on a large buyer increases its perception of ambiguity and riskiness in the relationship, negatively impacting its trust, commitment, and willingness to invest in innovation. However, a buyer who shares relevant and timely information with the supplier mitigates its perceived uncertainty, promoting the supplier's positive attitudes towards the buyer and incentivizing innovation. Sharing operational and strategic information such as point-of-sales data, sales forecasts, or strategic plans, becomes a valuable strategy to powerful buyers in the pursuit of becoming a preferred customer and enhancing a supplier's resource mobilization towards the relationship.     

Strategic interdependence, governance effectiveness and supplier performance: A dyadic case study investigation and theory development

Inter-organizational exchange governance approaches are often characterized as two broad types: relational and transactional. However, in fast changing business contexts, the contextual contingencies do not present ideal conditions for practicing purely relational or transactional approach. Understanding the dynamic of key contextual factors and their effects on a firm's resource capabilities and inter-organizational power structure is crucial for identifying the appropriate governance structure over time. In this paper we explore the exchanges between an OEM and five of its strategic suppliers that operate in high-end, short product life cycle motorbike industry, to understand the key contextual factors and the relationships among business context, governance structure, and exchange practices in a dyadic context. It is observed that firms deviate from the conventional choices of either transactional or relational governance to a combination of contractual and relational aspects to make the governance structure effective. Based on case studies, a theoretical framework is proposed to explain the rationale, feasibility and effectiveness of combining contractual and relational aspects in different contexts. The framework suggests that the degree of strategic interdependence between the trading partners fundamentally drives the effectiveness of governance structure and exchange practices.     

Purchasing practices in small- to medium-sized enterprises: An examination of strategic purchasing adoption,supplier evaluation and supplier capabilities

The benefits that can be derived from effective purchasing have long been recognised in the management literature. Despite a growing body of research on purchasing practices in small- to medium-sized enterprises (SMEs), a number of key issues remain under-examined. We investigate SME purchasing practices in terms of (1) the degree to which purchasing is regarded as a ‘strategic’ activity by SMEs, (2) the use of supplier evaluation systems by SMEs and (3) the supplier capabilities emphasised by SME buyers. Through a survey of UK SME managers, we find that purchasing practices varied greatly across SMEs. Purchasing formality is generally low with limited evidence of purchasing being employed strategically and with many firms not undertaking formal supplier evaluations. In terms of supplier capabilities, we find that SMEs differ in the capabilities they prioritise, with three distinct groups evident. These groups are labelled ‘holistic’, ‘process’ and ‘logistics’ based on the supplier capabilities they emphasise. These three groups of firms also differed in terms of the emphasis they placed on strategic purchasing, supplier evaluation, technological focus and how they compete in their main markets, but not in terms of firm size or number of suppliers utilised. The implications of these findings are discussed and areas meriting future research are proposed.     

Product co-development in an emerging market: The role of buyer-supplier compatibility and institutional environment

In emerging markets, supply chains increasingly serve as critical value chains through which ideas, practices and knowledge flow to and from suppliers and buyers. Drawing on buyer-supplier collaboration literature and organizational learning theory, we examine the antecedents and underlying mechanisms of product co-development. Due to emerging markets' unique institutional environments, we further investigate how government intervention and guanxi importance moderate supplier-buyer collaborative outcomes. Dyadic data from 323 supplier-buyer pairs in China largely support our theoretical framework. Partners' knowledge commonality has a curvilinear (inverted U-shaped) relationship to product co-development, whereas goal compatibility has a positive impact on product co-development. Mutual learning partially mediates the main effect. Furthermore, government intervention weakens the positive effect of mutual learning on product co-development whereas guanxi importance strengthens this relationship. This research provides fresh theoretical and managerial implications to supply chain collaboration in emerging markets.     

政策网络的结构与治理:以我国房地产宏观调控政策为例

房地产的宏观调控是我国政府公共管理能力的核心体现,然而,近年来其调控效果并不显著.作为一种新兴的分析工具--政策网络能较好地掌握与处理多元角色参与公共政策制定的议题.因此,本文从政策网络的视角,通过理论研究和案例分析,探讨房地产政策网络的结构特征及其治理机制.研究发现:我国房地产宏观调控的困境关键在于政策网络的开放度太...     

The Role of Networks In the Diffusion of Technological Innovation*

This research considers the diffusion of computer-aided production management (CAPM) technology in the UK manufacturing sector during the mid to late 1980s, focusing on the role of inter-organizational networks in the diffusion process. Research on innovation diffusion has tended to adopt a ‘pro-innovation bias’ such that adoption of prescribed best practice technologies is always considered to be the best policy. In the UK, one particular form of CAPM (MRP/MRPII) has been heavily promoted by technology suppliers as best practice. However, the notion of ‘best practice’ de-emphasizes the importance of decisions about technology design when users attempt to develop firm-specific solutions. Crucial to these decisions are the inter-organizational networks through which potential adopters learn about relevant technologies. Using three case companies, where the introduction of CAPM occurred at approximately the same time, decisions regarding adoption, design and subsequent implementation, are explored in order to establish the influence of inter-organizational networks on the diffusion and subsequent appropriation of CAPM technologies. These cases revealed that potential adopters engaged in a range of inter-organizational networks through which they learned about new technologies. However, the knowledge diffused through many of these networks was shaped by technology suppliers who were promoting similar ideas about best practice. Thus, while involvement in inter-organizational networks gave potential adopters access to information about new technology, this information tended to reinforce supplier images of best practice and did not always lead these firms to develop appropriate technological solutions. Problematic relationships between the suppliers of the technology and the users was seen here to limit the redesign and further diffusion of CAPM.     

Opportunism or strategic opportunity seeking? Three approaches to emerging country sourcing

The current interest in low-cost or emerging country sourcing (ECS) has inspired a multitude of empirical studies. These studies are based on varying methodological approaches and have come to somewhat different conclusions regarding the motivations for and outcomes of ECS. This paper argues that the overall approach to the new markets, especially the strategic network context surrounding each buyer-supplier relationship in the ECS setting, impacts on the prerequisites for success.The aim of the paper is to identify and discuss approaches to ECS. It begins with a review of recent empirical studies, scrutinising research interests and the approaches applied by the companies studied. It suggests and illustrates three broad categories of approaches: (1) the transactional approach focusing on individual sourcing in the emerging country, (2) the supply base approach focusing on establishing a set of supplier relationships in the emerging country, and (3) the network positioning approach in which both supplier and customer relationships are developed in the emerging country. The paper also discusses the three approaches as stages in an internationalisation process.The paper concludes that of the three strategic approaches the viability of two – the transactional approach and the supply base approach – can be questioned on several grounds, but that when seen as a process directed towards developing a network position in a new (emerging) market all three approaches make sense as different stages in a process moving towards achieving that goal. An explanation for the process of increasing commitment in emerging markets, relying on learning in interaction and on relational investments beginning with suppliers and continuing with customers, is also discussed.     

The effects of interorganizational governance on supplier's compliance with SCC: An empirical examination of compliant and non-compliant suppliers

Often, there is a huge gap between the requirements of the Supplier Codes of Conduct (SCC) imposed by buyers from advanced economies and actual compliance with SCC in developing countries. It is difficult for reseachers to reach suppliers who have violated SCC, especially within a large sample, because few disclose SCC violations to the public. In this paper, however, we identified 108 non-compliant Chinese apparel and textile suppliers. Through the investigation of these non-compliant suppliers and their compliant peers, this paper tests the impacts of antecedent factors (price pressure, production complexity, and contract duration) and buyer's governance mechanisms (peer-to-peer and buyer-to-supplier) on the likelihood of a supplier's compliance with SCC. While the buyer-to-supplier governance does not show significant effects, the peer-to-peer governance demonstrates the likelihood of supplier's commitment to SCC. This research reveals that if buyer's governance efforts move away from threat and toward cooperation, supplier's compliance with SCC could be more sustainable.     

Antecedents to supplier integration in the automotive industry: A multiple-case study of foreign subsidiaries in China

Supplier integration has become an important concept for improving supply chain performance. The aim of this paper is to identify factors that facilitate and inhibit supplier integration in the context of the Chinese automotive industry. An inductive approach based on grounded theory was chosen as the research methodology, where data was collected through 30 detailed case interviews with subsidiaries of foreign automotive companies operating in China. The results indicate that buyer-side leadership is an important antecedent for building motivation, trust, and commitment among suppliers and for shaping their mindsets. This, in turn, facilitates strategic alignment and enables suppliers to build collaborative capabilities, which are finally shown to be a key enabler for successful supplier integration.