Supplier Role Conflict: An Investigation of Its Relational Implications and Impact on Supplier Accommodation

Existing research on supply chain relationships suggests that one of the underlying tensions between supply chain partners is that of opposing perspectives and goals in the customer?supplier relationship. In today's business world with requirements in constant flux, suppliers are often asked to accommodate “special” requests made by their customers, not part of the contractual agreement. Suppliers frequently fill requests to protect the relationship with the customer, even if they fall outside of what they consider their role as a supplier. Issues of supplier role conflict emerge when customers and suppliers have different views of what the supplier's role should entail. There is little research examining the potential for supplier role conflict in supply chains. Specifically, this research draws on literature from multiple disciplines to consider supplier role conflict that may stem from accommodation and the impact of this role conflict and supplier accommodation on the supply chain relationship and future accommodation behavior. Hypotheses are tested using two scenario‐based experiments. Results suggest that supplier adaptation and flexibility both have positive relational effects. If suppliers perceive accommodation requests as outside of their contracted role, supplier role conflict can have detrimental effects on the supplier's relationship perceptions and their willingness for future accommodation.     

Supply Relational Risk: What Role Does Guanxi Play?

The topics of supply chain risk and global sourcing have garnered significant attention in recent years. Although there is ample circumstantial evidence of global sourcing risk, especially from the western‐firm perspective of sourcing from China, few published studies have investigated the root causes of this risk. In this paper, we argue that much of the risk associated with sourcing from China stems from the differences associated with institutional norms and philosophical orientation between western and Chinese thought and culture. Based on an in‐depth literature review and case analysis, we compare western forms of supply chain relationship management with Guanxi, the Chinese form of relationship management and propose a framework of how western firms are exposed to supply relational risk when sourcing from Chinese suppliers. The framework proposed in this article sheds light for supply chain managers with regard to the potential pitfalls facing firms when working with Chinese suppliers, and provides the groundwork for future research regarding supply chain practices and Guanxi networks.     

SUPPLY CHAIN CAPITAL: THE IMPACT OF STRUCTURAL AND RELATIONAL LINKAGES ON FIRM EXECUTION AND INNOVATION

Firms invest millions of dollars annually in developing their supply chains, with the broad goal of increasing their own performance. However, despite the significant resources deployed for supply chain development, the extent to which initiating, maintaining, and managing supply chain relationships contributes to firm success remains unclear. The current article provides conceptual development supporting the valuation of firm‐to‐firm supply chain connections from the perspective of the focal firm. Based on the social network and economics literatures, the article introduces the concept of supply chain capital, which comprises the value of both the structural configuration and relationship content of the firm's supply chain network. Following theoretical development, a non‐exhaustive set of propositions are constructed illustrating multiple ways that supply chain capital can be accrued and exploited for firm‐level benefit. Managerial recommendations for investment in supply chain capital are included, as are future directions for research in the area of supply chain networks.     

Customer and Supplier Portfolios: Can Credit Risks be Managed Through Supply Chain Relationships?

While supply chain risk has been the subject of an ever‐increasing amount of research attention, the importance of credit risk has been less studied, at least by supply chain researchers. Yet, there may be risks inherent within a firm's portfolios of supply chain relationships that are manifested in the credit risk of a firm. Moreover, portfolio characteristics may serve as a signal to the external market regarding these risks. While customer and supplier portfolio characteristics may impact the firm's exposure to risks, the specific issue of how portfolio characteristics relate to credit risk has rarely been examined by supply chain scholars. This research bridges extant works in supply chain management and finance to relate supply chain characteristics to a critical reputational outcome, namely credit ratings. In this research, we utilize a sample of firms that recently underwent an initial public offering to empirically examine the theoretical predictions of Resource Dependence Theory regarding the relationships between different supply chain portfolio characteristics and credit risk.     

Relationship Quality and Performance Outcomes: Achieving a Sustainable Competitive Advantage

As firms strive to develop a sustainable competitive advantage, the relationships formed among supply chain parties become a critical consideration. Firms seek to establish relationships that can provide the desired level of performance and competitiveness. Relationship quality provides a global measure of buyer–supplier relationships and can be used to assess the types of relationships a firm has within its supply chain. This research examines the impact of relationship quality on supply chain operational performance and satisfaction with strategic performance while considering both buyer and supplier perspectives and collaborative and arm’s length types of relationships.     

Relational and Process Multiplexity in Vertical Supply Chain Triads: An Exploration in the U.S. Restaurant Industry

Both supply chain relationships and process connections between organizational units have been studied in business research, to enhance the understanding of supply chain integration, and to explore the differential outcomes of both types of connections for business and functional performance. However, the extant research remains deficient in two ways: within individual studies, researchers have operationalized supply chain connectivity unidimensionally, with the concept of connectivity constrained to either social relations or operational/process ties while disregarding the other viewpoint. Additionally, researchers have persistently designed studies to evaluate dyadic structures, while foregoing the larger, more intricate structures representative of complex supply chains. We address these issues by modeling supply chain connectivity as having multiple relational‐ and process‐based threads comprising linkages, and by empirically testing a set of theorized relationships describing vertical triadic supply chain networks (manufacturer, broker, retailer) within the U.S. restaurant industry. We find that increased supply chain connectivity improves chain performance, but this improvement is more directly attributable to process‐based linkages than relational linkages, which impact performance only through the process mediator variable, suggesting that current theories of interorganizational relationalism may lack complete conceptualization. Implications of these findings for managers and the academy are highlighted, and areas of follow‐on research are discussed.     

Strategic and Operational Determinants of Relationship Outcomes With New Venture Suppliers

While the vast majority of the supplier selection and development literature has focused on relationships between mature, established firms, significantly less attention has been paid to relationships between established firms and new, entrepreneurial ventures. This study addresses this important topic and, using an interdisciplinary lens, investigates the question of how established buying firms can work with new ventures to achieve desired relationship outcomes. Drawing on the literature from the disciplines of entrepreneurship and supply chain management, we propose a theoretical model that links buying firms' strategic orientation in supplier selection (innovation and cost in strategic supplier selection) and operational approach in supplier development (direct and indirect development of new venture suppliers) with new venture‐specific relationship outcomes (purchasing volume and realized innovations). The model's predictions are tested on cross‐sectional survey data from 136 buying firms. Our results contribute to the emerging research stream at the supply chain management–entrepreneurship interface and enhance the understanding of relationships between established firms and new ventures.     

Exploring Supply Managers' Intrapreneurial Ability and Relationship Quality

This article examined the degree to which a supply manager's intrapreneurial ability influences the quality of individual-level relationships with internal customers and the supplier's account executive. The moderating influence of the buyer's firm-level commitment to the supplier and how these relationships subsequently impact supplier performance were explored. The study assessed the supply manager's intrapreneurial ability using survey data gathered from 110 supply managers across a variety of industries. In key supplier relationships, a supply manager's intrapreneurial ability positively influences the quality of internal and external relationships. The firm's commitment to the supplier weakens the relationship between intrapreneurial ability and relationship quality. The findings highlight the value of individual skills to enhance relationships The ability to behave intrapreneurially shapes the quality of internal and supplier relationships. However, only the supply manager's relationship with the supplier's account executive is related to supplier performance. By examining the impact of intrapreneurial ability on individual-level relationships with internal customers and supplier's account executive, a more comprehensive view of business-to-business relationship management in the supply chain is gained.     

Supply Chain Citizenship: Investigating the Antecedents of Customer Interorganizational Citizenship Behaviors

Research has consistently established the strategic importance of supply chain collaboration. As a result, interfirm behavioral dynamics and relationships have emerged as key topics for both the academic and practitioner communities. This paper explores an interpersonal exchange tactic that is inherent to many collaborative initiatives—interorganizational citizenship behaviors (ICBs). The study specifically investigates why retail customers in business‐to‐business exchange relationships would exhibit ICBs, and explores how they assess and respond to the ICBs of suppliers. Findings of the study suggest that customers generally interpret and value the various types of ICBs differently, resulting in differential effects regarding the supply chain performance and relational implications of the behavior. These results not only inform managerial practice but also provide future research opportunities in the area of ICBs and the broader realm of interpersonal supply chain dynamics.     

Effect of perceived environmental uncertainty on exporter–importer inter-organisational relationships and export performance improvement

Limited research exists on the effect of environmental uncertainty on inter-organisational relationships and export performance improvement in supply chains that transcend national boundaries, especially in developing markets such as sub-Saharan Africa. Despite the dominance of the economic perspective in export performance literature, increased attention over the last decade has turned to the Resource Base View (RBV) and the relational perspective. Highlighting this theoretical gap, we develop an approach that argues export market buyers gain advantage by leveraging internal resources and draw upon RBV and relational exchange theory. Data from 262 fresh-produce export suppliers in Zimbabwe was used to investigate the effect of perceived environmental uncertainty on inter-organisational relationships and supplier export performance. Results indicate that perceived environmental uncertainty dimensions have varied influence over inter-organisational relationships. Results support the relational theory's tenet that commitment to future exchanges is associated with export performance improvement, and driven by a reciprocal pattern of each partner's perception of the other's commitment, relationship-specific investments and dependence. These inter-organisational relationships are seen as complementary resources of the firm, which export market buyers can rely on through power to coerce developing export suppliers to cooperate in conditions of perceived market turbulence and high competitive intensity. Market turbulence emerged as a complex factor and is negatively linked to commitment and cooperation. Contrary to prior research, cooperation had a negative effect on export performance improvement.     

Attribution Effects of Time Pressure in Retail Supply Chain Relationships: Moving From “What” to “Why”

Retail supply chains must be responsive to consumer demand and flexible in adapting to changing consumer preferences. As a result, suppliers are often expected to deal with time pressure demands from retailers. While previous research demonstrates that time pressure can have longer term relational costs that reduce collaborative behaviors and overall relationship quality, this mixed‐methods study goes further by accounting for attribution effects to explain why the time pressure occurs. Specifically, supplier perceptions for the reason of time pressure being within or beyond a retailer's control, rather than time pressure itself, appear to have a stronger effect on relational outcomes. By investigating time pressure through the lens of attribution theory, this research opens a new inquiry of research that moves away from examination of outcomes themselves (the “what”), to examining “why” the outcome occurred.     

Impact of industry sector on corporate diversification and firm performance: Evidence from Indian business groups

Prior business group (BG) studies implicitly assume that corporate diversification‐firm performance relationships are uniform across industry sectors. This generalization may lead to research implications that are not equally true for BG‐affiliated manufacturing and service firms. Drawing on strategy and marketing literature, this research addresses this scholarly gap. Our empirical analysis of a large sample of BG‐affiliated Indian firms over a five‐year period (2004‐2008) indicates that the influence of corporate diversification on firm performance is greater for affiliated service firms than affiliated manufacturing firms. Results also indicate that the influence of BG size and diversity on diversification‐firm performance relationship varies significantly depending on whether the focal firm belongs to the manufacturing or service sector. Firm's share ownership does not generate similar influence. Copyright © 2015 ASAC. Published by John Wiley & Sons, Ltd.     

The supply-side of environmental sustainability and export performance: The role of knowledge integration and international buyer involvement

Most of previous studies seek to understand buyer perspectives in green supply chain relationships and devote inadequate attention to the strategic role of upstream suppliers. Drawing on a market-oriented approach to sustainability, this paper examines the enabling factors and processes that underpin how export suppliers from emerging economies leverage their strategic intent to develop knowledge integration capacity for achieving improved export performance. The results from a sample of Chinese exporters show that the relational capacity of knowledge integration mediates the performance impact of market-oriented environmental sustainability, and such a mediating process of leaning is further enhanced by international buyer involvement. We reveal that relationship efforts should be directed at developing integrative capacity involving key partners for implementing proactive environmental strategy in international business-to-business (B2B) markets. This study contributes to the research of supply chain sustainability in a global context.     

New insights into emotion valence and loyalty intentions in relational exchanges

This research examines how emotion valence and future intentions arising from relational exchanges with a service firm depend on a consumer's level of goal attainment and locus of causality (firm vs. self) of relational outcomes. Drawing on the theories of goal‐directed behavior and agency of causation, this study hypothesizes that levels of goal attainment and locus of causality influence the generation of positive emotions (gratitude), negative emotions (grudge and guilt), relational mediators (trust and commitment), and subsequent future intentions to remain loyal to the firm. Based on a controlled experiment with 284 subjects in a consumer‐determined relationship setting, the research finds that emotion valence and future loyalty intentions are contingent upon the fulfillment of relational objectives of individual consumers and the agency of causation for the outcome of the relational exchanges. In doing so, this study delineates the conditioning mechanism that directs how emotion valence influences behavioral intentions. The study contributes to the consumer behavior and services marketing literatures on consumption‐based emotions and has significant practice implications for relational behaviors.     

Supply Chain Collaboration,Integration, and Relational Technology: How Complex Operant Resources Increase Performance Outcomes

How firms coordinate efforts to collectively compete as supply chains is a key concern of supply chain management scholars and practitioners. One avenue, the development of collaborative relational capabilities that support supply chain integration, offers promise. However, the effectiveness of collaboration as a supply chain resource has been questioned due to concerns associated with collaborative technologies, and thus prior research has called for a deeper examination of the role that technologies play in facilitating integration. Employing a Service‐Dominant Logic view of hierarchical resources, grounded in Resource Advantage Theory, this research tests a model subsuming relationships between collaboration, integration, and interfirm coordination technologies, and their associated performance outcomes. A sample of 282 supply chain managers from a variety of industries were surveyed, with proposed relationships examined employing structural equation modeling. Test results indicate that collaboration and integration interact to form higher order resources that collectively influence firm performance outcomes through interfirm coordination technologies.     

Inter-Organisational Relationships and Strategy Development in an Evolving Industrial Network: Mapping Structure and Process

The paper explores the complexity of organisational strategies and relationships within an industrial supply chain. Whilst a considerable body of literature exists on inter-organisational relationships (IORs), our assertion is that much of this takes an overly deterministic view of the complex and sometimes conflicting situations that profoundly affect an organisation's (and, indeed, a network's) ability to perform effectively. Thus we turn for insight to literature beyond the traditional marketing arena, i.e.to sociology and organisational science.

We begin by relating aspects of the relationship marketing (RM) literature to a case context wherein the focal firm operates globally, supplying speciality chemicals to the chemical manufacturing market. Next, a brief comparison between the RM and the rather more inductive network (NW) literatures is undertaken. In a section representing the core theoretical underpinning of our study, Giddens' (1984) notion of structuration is then discussed; in particular how it relates to industrial NWs. Further literature from the management sphere is introduced to illustrate how a structurationist perspective might be taken forward in business marketing research.

Thereafter, following a discussion of methodological issues, we describe the case findings. These are presented in the form of "before" and "after" scenarios which illustrate both intra- and inter-firm issues. Our analysis highlights factors and behaviours which we believe can redirect (consciously or not) an organisation's activities away from any intended relationship building and towards a transactional orientation, despite the long term consequences for the NW. In the paper's conclusions, as well as making some pertinent case observations, we discuss the utility of a structurationist approach to research. Finally, we give some recommendations both for the focal case company and for further research into IORs.     

The Coevolution of Relationship Dominant Logic and Supply Risk Mitigation Strategies

How and why do risk mitigation strategies evolve? And which resources are needed for engaging in such changes? This paper contributes to the understanding of risk management in supply chains by developing theory about the interplay between supply risk mitigation strategies and the purchasing team's relationship dominant logic (RDL), which we define as the purchasing team's orientation toward and shared cognitive map of the management of its supply chain relationships. Specifically, we propose that RDL and supply risk mitigation strategies are fundamentally intertwined. Following a Straussian approach to grounded theory, this study analyzes data generated from the purchasing teams of Western green‐tech firms trying to mitigate supply risk for technically indispensable rare earth metals from China. Our findings from this context that is heavily shaped by state‐influenced supply chain members show that the firms chose their mitigation strategies in line with their RDL. Human capital, social capital, and financial capital seem to moderate the link between RDL and mitigation strategies. We link our findings with the strategic management literature in deriving theoretical propositions concerning these relationships.     

The friend or foe fallacy: Why your best customers may not need your friendship

Organizational transactions are handled along a continuum of the firm’s customer relationships, ranging from relational and friendly to more adversarial and us-versus-them in demeanor. For top customers, the approach is almost always close and relational. In this article, we question this view and suggest that it is beneficial to condition the firm’s relationship development efforts on an understanding of the true value to be gained from partnering and increased closeness. We provide a framework with which managers can diagnose their current portfolio of relationships with key customers or suppliers and offer suggestions for action. We provide an empirical illustration of the typical distribution of responses among five regions of the framework and discuss its implications.     

PERFORMANCE IMPLICATIONS OF PRODUCT LIFE CYCLE EXTENSION: THE CASE OF THE A‐10 AIRCRAFT

Firms are faced with challenging decisions when capital equipment reaches the end of its designed service life. This research examines the risks of deciding to extend the retirement date of a capital asset in terms of performance and cost and offers recommended actions to mitigate this risk. Through study of the United States Air Force's A‐10 aircraft, the authors analyze one example of decreased performance and increased costs experienced when supply chain implications are not explicitly considered when making service life extension decisions. In this case, the Air Force's efforts to save money through life extension of existing aircraft actually exceeded the seemingly enormous initial investment of acquiring new aircraft. Arguments are presented suggesting the Air Force, in particular, may reap benefits from forming supply chain relationships and creating continuity plans to manage problems such as parts shortages and cost increases when extending the use of capital assets beyond its intended service life.