Understanding supplier structural embeddedness: A social network perspective

Despite a significant amount of attention, the potential of supplier structural embeddedness (i.e., the value of the structural position in an extended network) to improve the performance of a buying firm remains poorly understood. This study drew on the social network theory to empirically examine a conceptual framework specifying a relationship between the efforts of a buying firm to understand supplier structural configuration and operational and financial performance. This study also examines how the comprehension of structural embeddedness is transformed into performance for a buying firm through relational embeddedness (i.e., the strength of a dyadic relationship). Survey data collected from companies in the U.S. were analyzed using hierarchical regression analysis. The results indicate that the understanding of the structural dimension does help to enhance operational performance of a buying firm, but it does not lead to better financial performance. Empirical evidence shows that a buying firm does improve the quality of a dyadic relationship between the buying firm and a supplier by understanding how the supplier is connected to other firms and what positional values are produced. Further, relational embeddedness is found to mediate the influence of the enhanced understanding of the structural configuration on operational performance.     

汽车产业供应商关系管理职能研究

分析了汽车产业供应商关系现状与供应商关系发展趋势,系统地提出供应商关系管理应包含职能及各职能下的业务。阐明了各职能、各业务间相互关系,探讨了供应商关系管理意义。意在规范汽车产业供应商关系管理职能与业务,改善汽车总装企业与零部件供应商之间的关系。     

Perception and social factors as influencing supply management: A research agenda

Acknowledging the influence of individuals in shaping supplier relationships, the question is what determines the way these individuals behave in this respect. In search for an adequate methodology to find an answer to this question, this contribution aims to show the potential value of research into perception and social factors and the way they influence supply management. A methodology is presented, based on the exploration of (1) the factors that influence individuals’ perception of the context they operate in and (2) the effect this has on the way these individuals manage supply relations. Through interviews and a survey, this paper explores an earlier published conceptual framework, where four factors were found to influence perception and supply relationship management: (1) membership of social networks, (2) the organisational view of purchasing, (3) the position of purchasing in the organisational hierarchy and (4) critical incidents. The results of this explorative exercise indicate that, indeed, (a) social factors influence individuals’ perception and (b) they are relevant to explain how supplier relations are managed in practice. Therefore, an agenda for future research is presented.     

Lock-in situations in supply chains: A social exchange theoretic study of sourcing arrangements in buyer–supplier relationships

Social exchange theory is used to gain a better understanding of the relationship between a buyer and a supplier that is characterized by lock-in situations. We begin by reviewing the theoretical foundations of social exchange theory. Next, we use an illustrative multinational business example from a Danish Business Group to demonstrate the complexities of the lock-in situation. Conjectures related to lock-in behaviors are initially developed and then examined by means of a game-theoretic model. The analysis provides a basis for the development of propositions which are examined employing a behavioral experiment. The results indicate that the optimal pricing strategy of the supplier is to lower the price with increasing demand and the optimal investment intensity of the buyer decreases with increasing demand. The paper concludes by presenting directions for future research.     

HRM implementation by multiple HRM actors: a social exchange perspective

Abstract

In this study, we understand HRM implementation as a social process that depends on the social exchange relationships between line managers and both HRM professionals and employees. As such, we offer a fresh approach to understanding HRM implementation by concentrating on the social exchange among HRM actors. We do so by investigating to what extent these exchange relationships influence HRM implementation, as reflected in employees’ perceptions of the presence of HRM practices and their affective commitment. We collected multilevel data from two sources (line managers and employees) and in two phases in a Dutch engineering firm, and obtained fully matched manager – employee information from 75 employees and 20 line managers. Our results show that employees perceive a larger number of HRM practices when they have a good relationship with their line managers and when their line managers are motivated to implement HRM practices. Line managers, in turn, reciprocate perceived support from the HRM department with greater motivation to implement these practices. We conclude that because HRM actors engage in social interactions, HRM practices will be implemented at the organizational level because employees perceive the presence of HRM practices and then reciprocate this with affective commitment.     

Strategic supply management: The relationship between supply management practices, strategic orientation and their impact on organisational performance

A theoretical model is presented for conceptualising the relationship between the management of supply, strategic orientation at the business-unit level and their proposed link with firm performance. The shortcomings of existing approaches in accounting for the wide variety of purchasing practices in a comprehensive supply management framework are discussed as well their alignment with strategic orientation. The paper concludes by presenting a model and propositions concerning firm-level supply management, strategic orientation and firm performance.     

Managing the global supply base through purchasing portfolio management

‘How to source globally’ has become a critical strategic decision for companies competing on a global basis. Despite an increased focus on global sourcing and supply chain management, little is known about the challenges and solutions surrounding such sourcing practices. Extant literature points at the critical importance of developing and sharing knowledge in multinational companies (MNCs). However, little work has been undertaken to examine the organizational mechanisms used by MNC headquarters for knowledge leveraging across subsidiaries, especially in the area of purchasing and supply management. Based on an in-depth case study, focusing on a chemical company, the actual buying systems for managing the global supply base are explored. Kraljic's purchasing portfolio approach appears useful, both for developing effective purchasing strategies as well as for managing a global supply base.     

建筑企业供应商关系管理研究

随着经济及信息技术的发展,建筑企业已经没有区域限制,竞争日趋激烈。供应商关系管理方法可以降低建筑企业成本、提高采购效率,增强竞争优势。首先给出供应商关系管理的定义,并说明建筑企业实施供应商关系管理的必要性,然后建立供应商关系管理模型．并给出供应商关系管理的具体实施步骤及方法。     

Supplier development and cost management in Southeast Asia—Results from a field study

This paper is about supplier development when international companies have production sites in Southeast Asia and look for opportunities to switch from international suppliers to local suppliers. We conducted a field study involving site visits to companies in Thailand and Vietnam, and interviews at corporate supply chain departments. Some key observations are: cost management was a dominant motive for taking local supplier development initiatives. Furthermore, local sourcing and local supplier development were important for international companies to improve access to local customer markets. Firms deliberately assessed whether a particular supplier would likely be able to improve sufficiently to warrant investing in supplier development, which typically involved a combination of initiatives, requiring the international firm to take considerable efforts. Local sourcing strategies and priorities for supplier development initiatives tended to focus on items with low supply risk and low volume. These findings are discussed based on transaction cost economics, and we suggest that firms use several ways to reduce the risk of transaction-specific investments in supplier development initiatives.     

A fuzzy multi-objective programming approach for determination of resilient supply portfolio under supply failure risks

The main contribution of this paper is to develop a new decision tool that interprets strategies for determination of resilient supply portfolio under supply failure risks. The strategic decisions include the allocation of emergency capacities to be pre-positioned at backup suppliers, the output of which can be increased in the event of mitigating a shortage caused by another supplier's failure. The model contains three objective functions – minimising the total cost, minimising the net rejected items and minimising the net late deliveries – while satisfying capacity and minimum order quantity requirement constraints. A weighted additive fuzzy multi-objective model is proposed to simultaneously consider the imprecision of information and the relative importance of objectives for determining the allocation of order quantity and emergency capacity to each supplier. The application of the proposed model is illustrated using an example case of global supply chains with different supplier characteristics.     

A project portfolio risk‐opportunity identification framework

This article introduces a framework to identify risks and opportunities during portfolio risk management that helps to decrease the uncertainty of achieving the strategic goals of the organization. The final output of the framework is a portfolio risk‐opportunity register, which highlights the potential events that could impact the achievement of the goals. An illustrative example of how risk‐opportunity identification can be conducted within this framework is also exposed. In spite of being theoretical in nature, the model contributes to the risk management domain applied specifically to project portfolio management, opening the possibility of further research for its verification.     

Diffusion of environmental business practices: A network approach

The purpose of this research is to build a conceptual foundation that examines network effects on the diffusion of environmental business practices (EBP) among suppliers. This research extends a network perspective to adoption of an environmental business practice across a large network of suppliers. The context of EBP is used to better understand adoption of a complex business practice, with perceived costs that are often greater than the perceived benefit. Variation in the level of structural and relationship embeddedness affect network diffusion of environmental business practices differently. Increased levels of structural and relational embeddedness are proposed to be positively associated with diffusion of EBP. From a practical standpoint, firms that leverage embeddedness may facilitate higher diffusion and adoption of environmental business practices. This facilitation may lead network actors to engage in EBP, and leverage benefits that may stem from these practices. This research introduces the concept of embeddedness to the environmental supply chain literature. Practicing managers can use the findings in this research to better position themselves within a network to diffuse EBP. This research also helps managers understand how supply chain members that are weakly connected to the primary network are important for introducing new ideas and innovations.     

Supplier relationship-specific investments and the role of safeguards for supplier innovation sharing

The vast majority of the supplier innovation literature has focused on how buying firms can effectively “pull” innovations from their suppliers. Yet, we know remarkably little about the factors that contribute to a supplier voluntarily “pushing” innovations to its customers. The present study addresses this research gap in the context of industrial buyer–supplier relationships and with a specific focus on relationship-specific investments. Drawing on theory from the relationship-marketing literature and on transaction cost theory, we devise and test a proposed theoretical model that links the level of a supplier's relationship-specific investments to its sharing of innovative ideas regarding products and processes with customers. The model also considers the role of contract length, relationship age, and buyer–supplier cooperation as possible safeguards. The empirical results suggest that a supplier's relationship-specific investments encourage a supplier to suggest ideas of process innovations but to refrain from suggestions about product innovations. The latter effect, however, can be attenuated by appropriate formal and informal safeguards.     

Do buyer cooperative actions matter under relational stress? Evidence from Japanese and U.S. assemblers in the U.S. automotive industry

Buyers can create relational stress even as they work cooperatively with suppliers. This study investigates the moderating effects of relational stress on the ability of buyer-initiated cooperative actions to influence a supplier's willingness to invest in technology that will be of benefit to the buyer. Data on 2012 buying situations were collected from Tier 1 suppliers to three U.S. domestic automotive assemblers (Chrysler, Ford, and General Motors) and three Japanese transplant automotive assemblers (Honda, Nissan, and Toyota) over three consecutive years (2003–2005). The results indicate that (1) buyer-initiated cooperative actions of communication, assistance, and supplier involvement increase a supplier's willingness to invest in technology, (2) the relationship-enhancing effect of buyer assistance increases under high relational stress, while the effectiveness of buyer communication decreases, and (3) that the effect of supplier involvement is not significantly influenced by relational stress levels. Furthermore, we found that supplier relations with Japanese transplant assemblers are characterized by higher levels of cooperative actions, lower levels of relational stress, and higher levels of supplier willingness to invest in technology when compared to those of U.S. domestic assemblers.     

Family-friendly management,organizational performance and social legitimacy

Research on family-friendly practices has concentrated on the predictors of their use, particularly from the perspective of either institutional theory or the high involvement or commitment management vogue. This paper first shows how such perspectives can be used to generate hypotheses about the link between family-friendly management and organizational performance. Second, the paper reports research designed to test these, using data from a national representative sample of workplaces across the British economy, the Workplace Employment Relations Survey of 2004 (WERS2004). The results support the high commitment thesis that family-friendly management will strengthen the relationship between commitment and key economic outcomes, as the relationships between workforce commitment and productivity or quality are stronger in organizations when friendly management is high, which is consistent with social exchange theory. Family-friendly management is not, however, related to the human resource outcomes of labour turnover and absenteeism. Nor does the study find support for the argument that its use in conjunction with high involvement management enhances the performance effects of both. Equally, there is no support for the hypothesis from the institutional thesis that family-friendly management has positive effects on the legitimacy of the organization.     

An intra-organizational perspective on supply management involvement in contracting services

The relationship between an agent (supply management) and a principal (client functional user) can be studied by using agency theory as a theoretical background. In this study, perceptions of conflict, information asymmetry and risk were examined in relation to perceptions of internal outcomes of supply management’s involvement in services contracting in an intra-organizational dyadic context. Structural equation modeling and regression analysis were used to analyze the nature of the relationships. The contribution is integrating a structured view of internal outcomes with three concepts from agency theory to help build a more comprehensive theory of intra-organizational relationships in the context of services contracting.     

A contingent theory of supplier management initiatives: Effects of competitive intensity and product life cycle

Direct investments in supplier development and close relationship building are the two major collaborative supplier management strategies for developing and accessing superior supplier capability. The impact of these two strategies, however, has not been uniform across firms, calling for a deeper examination of their relative effectiveness. Utilizing multiple theoretical frameworks, this study examines the relevance and effectiveness of the two collaborative strategies across the growth and maturity stages of the product life cycle (PLC). Specifically, the study analyzes the influence of competitive intensity as an antecedent to supplier development and relational initiatives, and the role of product life cycle as a moderator of the inter-relationships among competitive intensity, supplier development, relational initiatives, and supplier capability. Based on primary survey data, and discussion with practicing managers, the study finds that the individual and integrative effectiveness of supplier development investments (SDI) and relational orientation (RO) can be influenced differently by competitive intensity and PLC stage. In particular, RO can have a foundational role in motivating SDI for superior supplier capability, as also in safeguarding against supplier opportunism in the standardized product market context of the maturity stage. The managerial and theoretical implications of varied emphasis on the two collaborative supplier management strategies across the PLC stages are discussed.     

Knowledge-sharing in R&D departments: a social power and social exchange theory perspective

Sharing knowledge in an R&D team is one of the crucial ways of sustaining a competitive advantage. According to the social power theory, managers have five types of power to influence subordinates' behavior (French and Raven 1959 French, J. and Raven, B.H. 1959. The Bases of Social Power. Studies in Social Power, Ann Arbor, MI: Institute for Social Research.  [Google Scholar]). This study examines managers' social power influencing R&D employees' knowledge-sharing behavior. The empirical model formed two nested models, one to assess the direct effect of managers' social power on employees' knowledge-sharing behavior, and the other to examine the indirect effect of using the mediated variable of trust.

Data gathered from 105 R&D employees were employed to examine the relationship. The results indicate that manager's reward power and expert power have direct effects, while reference power and expert power have indirect effects.     

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.     

Antecedents of supply chain visibility in retail supply chains: A resource-based theory perspective

Although visibility has become a popular buzzword in the supply chain literature it remains an ill-defined and poorly understood concept. It is assumed that if companies across supply chains have visibility of demand, inventory levels, processes, etc., that organizational performance improves. This research explores the antecedents of high levels of supply chain visibility from a resource-based theory perspective across five different external supply chain linkages. We find that the level of visibility across these linkages differs considerably based on various contributing factors which are both technology and non-technology based. Using resource-based theory, we identify those factors that can give a sustainable competitive advantage to a supply chain linkage through a “distinctive” or high level of visibility.