Questioning the relevance of supplier satisfaction for preferred customer treatment: Antecedent effects of comparative alternatives and multi-dimensionality

Through the construct of supplier satisfaction, recent research explains the supplier's preferred treatment of a given customer. This cause-and-effect phenomenon is often not contrasted with other reasons or controlled for. This work addresses this issue and uses two tactics to elaborate upon social exchange theory, namely, construct splitting and construct contrasting, to analyse the development of preferential customer treatment. For this purpose, a structural equation model is used with data from the international automotive industry. The results extend the breadth of constructs explaining preferred customer treatment (PCT) and challenge the existing reasoning by questioning the relative importance of supplier satisfaction. While supplier satisfaction does affect PCT, the relative supplier satisfaction defined as a comparison of outcomes between the actual and the best alternative business relationships influences PCT much more.Furthermore, by distinguishing between the economic and non-economic dimensions of supplier satisfaction, the study indicate that economic satisfaction has a higher influence on the relative satisfaction whereas social satisfaction a higher one on absolute supplier satisfaction.These findings imply that despite the current debate about the importance of behavioural constructs such as supplier interaction and social capital, supplier resource allocation decisions are actually dominated by economic and relative aspects of satisfaction. This outcome calls for a more economically driven debate about behavioural supply management approaches.     

Linking forward and reverse supply chain investments: The role of business uncertainty

This paper explores managerial efforts in reverse supply chains (RSC), where the focus is on the capture and exploitation of used products and materials. The RSC can potentially reduce negative environmental impacts of extracting virgin raw materials and waste disposal. If so, investment in the reverse supply chain should not be made in isolation, but instead must be integrated with investments selected to improve the forward supply chain. After defining and operationalizing these constructs, a survey of plant managers was used to empirically assess the linkages between supply chain investments, organizational risk propensity (i.e., willingness to take risk) and business uncertainty. Reverse supply chain investment had two primary dimensions: reconditioning (i.e., high-value recovery) and recycling and waste management (i.e., low- or no-value recovery). Ongoing investment in the forward supply chain was significantly related to investment in recycling and waste management, but not to investment in reconditioning. Moreover, risk propensity was found to mediate the relationship between the external business uncertainty and investment in the forward and reverse supply chain.     

Antecedents and consequences of social capital on buyer performance improvement

The ability to leverage social capital within strategic buyer–supplier relationships is increasingly cited as a key driver of value creation. Despite the importance of strategic partnerships, the process by which social capital accumulates within buyer–supplier relationships and contributes to buyer performance improvements is not well understood. Drawing on social capital theory, we develop a model linking positive relational capital, and its antecedents, supplier integration and supplier closeness, to buyer performance improvements. Further, we hypothesize that structural capital, as reflected in managerial communication and technical exchanges, is also positively related to buyer performance improvements. Using data provided by 111 procurement executives from the United Kingdom, we find support for our hypotheses. The study extends the supply chain management and social capital literature and suggests important implications for both research and practice.     

Development and validation of a measurement instrument for studying supply chain management practices

It is widely argued that competition is no longer between organizations, but among supply chains. Effective supply chain management (SCM) has become a potentially valuable way of securing competitive advantage and improving organizational performance. This research conceptualizes, develops, and validates six dimensions of SCM practices (strategic supplier partnership, customer relationship, information sharing, information quality, internal lean practices, and postponement). Data for the study were collected from 196 organizations and the measurement scales were tested and validated using structural equation modeling. It is hoped that this study will provide a parsimonious measurement instrument to assess the performance of the overall supply chain.     

Pattern of information technology use: The impact on buyer–suppler coordination and performance

The use of information technologies between supply chain organizations has been shown to promote organizational coordination and have a positive impact on performance. Drawing from organizational theories of learning, we build on this research by proposing a model that relates the pattern of supplier use of IT to specific types of supply chain coordination activities and a comprehensive set of organizational benefits. Specifically, we evaluate how two patterns of IT use by suppliers (exploitation and exploration) relate to two specific types of coordination activities with their buyers (operational and strategic coordination), which in turn are posited to promote specific organizational benefits. Using data from 241 first-tier OEM suppliers in the computer industry, our findings show that each pattern of IT use directly promotes a specific type of coordination activity. Although both types of coordination activities are needed to achieve both strategic and operational benefits, we find each coordination activity to be uniquely promoted by a specific pattern of IT use. IT use for exploitation is found to be an antecedent to operational coordination; IT use for exploration is found to be an antecedent to strategic coordination. No crossover between pattern of use and coordination activities is found. Our findings show that to achieve a complete set of benefits, suppliers must ultimately use IT for both exploration and exploitation. These findings provide a deeper understanding of the mechanism of how the pattern of IT use can result in a comprehensive set of organizational benefits for supplier firms.     

How supply chain architecture and product architecture impact firm performance: An empirical examination

In order to enhance performance, manufacturing firms are building various capabilities and utilizing supply chain networks that are geographically dispersed around the globe. This study examines how decisions related to supply chain architecture and product architecture influence organizational competitiveness. Building on the co-specialization perspective, we evaluate the performance implications of product modularity and supply chain agility. While, product modularity constitutes a product configuration related to sourcing and assembling of products, supply chain agility is a supply chain configuration related to velocity (sensing, comprehending, and responding) and visibility (supplier network, internal operations, and external environment). Both the product and supply chain architectural decisions can impact performance, individually and in conjunction with each other. We empirically test the hypothesized relationships using data collected from 103 manufacturing firms. Results show that supply chain agility and product modularity directly enhance responsiveness and enable organizations to reduce cost. Furthermore, supply chain agility partially mediates the relationship between product modularity and both responsiveness and cost reduction. We elaborate on the key contributions of this study for both research and practice, discuss limitations, and also offer various avenues for further research.     

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.     

客户资本的质量评价与分类管理

从已有的研究成果来看,无论是理论界还是企业界真正以“客户资本”来看待企业的客户资源并据此展开研究和实际操作的时间并不长,至今尚无统一的理论框架和行之有效的操作方法。文章试图从质量管理的角度切入,借助营销理论模型探讨对客户资本进行质量评价的方法,提出对不同质量水平的客户资本进行分类管理的建议。     

Contingency relationships of firm size,TQM duration,unionization, and industry context on TQM implementation—A focus on total effects

Past TQM literature has been inconclusive in resolving the validity of the universalistic approach versus the contingency approach of TQM implementation. In this paper we contribute to the resolution of this debate by using a total effects approach within the contingency perspective. We propose a culture-quality system design-outcomes framework for TQM implementation. We then use this framework to study the differences in total effects relationships among TQM constructs across four contingencies, firm size, TQM duration, unionization, and industry type. Data from a sample of 394 plants (SIC codes 20 through 39) are used to test the validity of our contingency model. Our results revealed that firm size, TQM duration, and industry type moderate the influence of total effects of culture (top management commitment, customer focus, and trust) on final outcomes (process quality, product quality, and customer satisfaction). These contingencies also moderate the influence of total effects of quality system design (design management, training, empowerment, quality information usage, supplier quality management, and process quality management) on final outcomes. The strongest contributor to variation in total effects across groups was industry type, followed by size and then TQM duration. To a lesser extent, unionization was a moderator in total effects relationships. These findings uniquely contribute to the emerging contingency theory of TQM implementation.     

The dark side of buyer-supplier relationships: A social capital perspective

The literature on supply chain management (SCM) has consistently promoted the “bright side” of collaborative buyer-supplier relationships (BSRs). Based on the social capital argument, SCM scholars have investigated how a buyer can gain access to and leverage resources through its collaborative BSRs. Our study extends this research stream by considering the “dark side” of social capital in BSRs. It evaluates how social capital in its cognitive, relational, and structural forms contributes to or impedes value creation within BSRs. Both primary survey measures and secondary objective measures have been used in data analysis. The results show the presence of both the bright side, confirming the existing literature, and the dark side, extending the literature. There is an inverted curvilinear relationship between social capital and performance: Either too little or too much social capital can hurt performance. This study confirms that building social capital in a collaborative BSR positively affects buyer performance, but that if taken to an extreme it can reduce the buyer's ability to be objective and make effective decisions as well as increase the supplier's opportunistic behavior. Our study also examines how a buyer can delay the emergence of the dark side. It opens up new research avenues in the collaborative BSR context and suggests directions for future research and practice.     

论价值管理在企业客户资本管理中的运用

本文从价值管理的角度对企业客户资本管理进行了分析。在价值管理模式下,通过客户资本细分矩阵可以对客户资本投资进行决策,通过价值创造——价值获取矩阵可以对客户资本价值管理活动进行评估。     

Getting the best solution from a supplier – A social capital perspective

Due to the current shift towards solution provision in many industrial markets, buyers are under increasing pressure to develop sourcing strategies to procure custom solutions for their firm in order to achieve competitive advantage. The question arises as to how buyers can ensure they get the best solutions from their suppliers and whether social capital can be applied to improve solution provision processes and value creation. Existing empirical research, however, has paid only little attention to the antecedents of suppliers’ solution provision performance, i.e., their capability to diagnose buyer needs and to design and implement solutions to meet them. We tested how social capital dimensions (relational, cognitive, and structural) relate to solution provision. The study uses empirical data obtained from a survey of 475 suppliers representing both manufacturing and service industries. Partial least squares (PLS) structural equation modeling (SEM) and polynomial regression were used to analyze the data. The results demonstrate that the availability of social capital in a buyer-supplier relationship is a relevant antecedent to successful solution provision activities. However, the different dimensions of social capital are found to compensate for each other to some extent. Our study further demonstrates that solution provision is not a monolithic activity but can better be understood as a multi-phase process (diagnosis, solution design, and implementation). Different aspects of social capital may have a different impact depending on the phase of solution provision. The successful diagnosis of buyer needs mediates the effect of social capital on solution design and implementation. It is also found that production characteristics of a buyer and the type of a supplier solution affect the role of social capital in solution provision process.     

Towards a holistic enterprise innovation performance measurement system

This paper identifies the gaps in previously proposed enterprise innovation performance measurement schemes vis-à-vis today?s enterprise needs and proffers a process based innovation performance measurement scheme, which improves upon existing schemes by significantly broadening the measurement scope. A number of industry surveys bear out the discontent of enterprises with existing innovation performance measurement schemes. In order to address pertinent enterprise needs, a literature review of innovation performance measurement schemes is presented, followed by a set of guiding principles for developing a more robust scheme that emphasizes the distinction between the measurement of invention and exploitation and can be used as a taxonomy for innovation key performance indicators.     

Going beyond supplier diversity to economic Inclusion:Where are we now and where do we go from here?

Supplier diversity is not a new concept but has increased in urgency due to racial unrest and social polarization across the globe. As culture shifts globally, demanding more diversity and inclusion in businesses, companies are having to rethink their overarching values and strategies. Supplier diversity programs foster more inclusive relationships with diverse and underrepresented populations of suppliers to produce both economic and social impact. Researchers have shown if managed effectively, a diverse and inclusive supply base can help organizations reduce risk, enhance brand image, and increase innovation and flexibility. The intent of this Notes and Debates article is to introduce and define supplier diversity, showing how an economically inclusive supplier diversity program enhances organizational benefits and provides greater economic and social benefits. A secondary intent is to begin the dialogue on the benefits of transitioning from traditional supplier diversity programs to fully embedded economic inclusion models. What is the purpose behind the transition? Is more supplier diversity necessarily better? What enablers or capabilities may be needed to evolve from a traditional supplier diversity program to a strategically positioned economic inclusion mindset? Suggestions are made about embedding key enablers within an organizational structure so that companies can mature in supplier diversity efforts and drive stronger social and economic value. This Notes and Debates piece uses support from ongoing research efforts that include interviews with companies engaged in supplier diversity programs and several supplier diversity councils. Some initial observations and remarks are incorporated in the text to help illustrate how to move from supplier diversity to economic inclusion. The enablers that help move from traditional diversity programs to economic inclusivity appear to mature and develop over time. Some organizations remain in the early, more traditional phases while others have dynamic ecosystems that have developed to support this transition.     

Chain liability in multitier supply chains? Responsibility attributions for unsustainable supplier behavior

When it becomes publicly known that products are associated with suppliers that engage in unsustainable behaviors, consumers protest, as Nestlé, Zara, and Kimberly Clark, among others, have learned. The phenomenon by which consumers hold firms responsible for the unsustainable behavior of their upstream partners suggests the notion of “chain liability.” This study aims to generate insights into the antecedents and consequences of such consumer responsibility attributions. Using data from four vignette-based survey experiments, the authors find that the chain liability effect increases if an environmental degradation incident (1) results from supplier behavior rather than force majeure, (2) results from a company decision rather than the decision of an individual employee, and (3) is more severe. Responsibility attributions do not differ with varying organizational distance from the supplier, firm size, strategic importance of the supplied product, or the existence of environmental management systems. The chain liability effect also creates strong risks for the focal firm; higher responsibility attributions increase consumers’ anger and propensity to boycott. Therefore, firms should work to ensure sustainable behavior throughout the supply chain, to protect them from chain liability.