Multimarket Contact and the Use of Power in Buyer–Supplier Relationships

Buyers and suppliers often have multiple business relationships with each other across different geographical and product markets, forming a potentially complex web of connections. What happens between the firms in one geographical or product market may influence their interactions in others. Prior research in strategic management has found that similar multimarket contact in horizontal relationships between competitors has important consequences for the firms’ use of market power. However, the consequences of multimarket contact in vertical buyer–supplier relationships remain unexplored. Building on resource‐advantage theory, this study proposes that multimarket contact between buyers and suppliers is linked to their respective propensity to use three types of mediated power in their relationships (i.e., reward, coercion, and legal legitimate) and that the effects of multimarket contact differ between buyers and suppliers. A vignette study with 143 purchasing managers and 137 business‐to‐business sales managers tests the developed hypotheses. The findings show that a higher level of multimarket contact encourages suppliers to use legal legitimate power to a greater extent and encourages buyers to use reward power to a greater extent but legal legitimate power to a lesser extent.     

An Extended Search for Generic Consumer–Brand Relationships

Relatively few empirical studies address the question of generic relationships between consumers and brands. But a relationship‐oriented brand communication seems to have become increasingly important to companies. In this article, the authors present details of a study on generic consumer–brand relationships conducted in Germany. Based on the data of more than 900 consumers, four different types of consumer–brand relationships emerge, characterized as “best friendship,” “unemotional purpose‐based relationship,” “loose contact,” and “happy partnership.” An extended analysis of the data using advanced statistical methods supports these findings to a high degree. Furthermore, as the results of the extended analysis also suggest, numerous well‐known brands often appear within less favorable relationships like “unemotional purpose‐based relationship” and “loose contact.” These findings indicate important shortcomings of relationship‐oriented brand management in many companies and suggest the need for further work in this area.     

A Leibenstein–Hobbes–Walras Model of Sharecropping

Circumstances under which share tenancy may emerge as a socially viable and incentive-compatible system of land-labor exchange are explored in a model incorporating Leibenstein’s nutrition-effort hypothesis, limited substitution possibilities and endogenous distribution. The model provides a Walrasian resolution of the traditional conundrum of production control under sharecropping. It is shown that a pure sharecropp ing equilibrium with tenant control exists when land is relatively abundant though land rent is zero under either a fixed-rent or wage system. With land relatively scarce, a nearly-symmetric equilibrium with landlord control also exists provided workers share income in the presence of unemployment.     

The Corn–Guano Model

The model presented here can be seen as an extension, specifically designed to deal with the issue of exhaustible resources, of the well‐known ‘corn model’. We believe that useful insights are obtained by concentrating on a benchmark case, that of an economy with only one reproducible ‘good’, corn, and only one ‘resource’, guano. The corn–guano model aims at delineating some major issues related to the introduction of exhaustible resources within a post‐Sraffian model. In this paper we concentrate on the dynamics of the price variables. The ultimate goal concerns more generally the treatment of intertemporal economies outside a regular growth path, i.e. it concerns the degree of generality of the post‐Sraffian theory itself.     

Consumer–Brand Relationships: A Contrast of Nostalgic and Non‐Nostalgic Brands

This research examined how consumer–brand relationships change when one contrasts brands perceived as nostalgic with brands perceived as non‐nostalgic. Paired comparisons of brands in six product categories revealed that brand attachment, self‐brand connections, and storytelling, as well as, the propensity to offer the brand as a gift and collect brand‐derived products, depend on the nostalgic status of the brand. On a sample of 606 consumers, the results showed that a brand's nostalgic status has a positive effect on attachment, self‐brand connections, and storytelling. These effects had not previously been considered in nostalgia research. Furthermore, the nostalgic status of a brand has positive effects in terms of intention to purchase the brand as a gift and collect brand‐derived products. Moreover, ANOVA results illustrate that consumer relationships with nostalgic brands are systematically stronger than with non‐nostalgic brands. Finally, results indicated that product category moderates all of the dimensions of brand relationships while gender does not.     

Recycling and Landfilling in a Dynamic Sraffian Model: Application of the Corn–guano Model to a Waste Treatment problem

Landfill sites may be regarded as input for a waste treatment process. Considering landfill as an exhaustible resource, we apply a basic corn–guano model to a waste treatment problem. We show how dynamic substitution between landfilling and recycling occurs. Namely, in an early stage, landfill disposal is adopted as waste treatment and a recycling process is not activated. Once an economy faces exhaustion of landfill, a recycling process is activated as a backstop technology. We refer to the possibility that an economy may be unstable after exhaustion of landfill, even if it enjoys stable growth at the early stage.     

The Moderating Influence of Broad‐Scope Trust on Customer–Seller Relationships

Trust relates not only to customer trust in individual companies (i.e., narrow‐scope trust) but also to the broader business context in which customer–seller relationships may develop (i.e., broad‐scope trust [BST]). Based on two surveys comprising 1155 bank consumers and 817 insurance consumers, respectively, this study investigates the moderating influence of BST on relationships between satisfaction, narrow‐scope trust, and loyalty and also examines the direct influence of BST on these variables. The results indicate that whereas BST negatively moderates relationships between satisfaction and narrow‐scope trust and between narrow‐scope trust and loyalty, BST positively moderates the relationship between satisfaction and loyalty. In addition, it is demonstrated that BST positively influences customer satisfaction and narrow‐scope trust. © 2012 Wiley Periodicals, Inc.     

Critique of the Corn–Guano Model

It is argued that the corn–guano model proposed by Bidard and Erreygers is too simple as a representation of Hotelling's theory because it does not reflect the distinction between the resource in situ and the extracted resource. The claim to have transposed the representation of Hotelling's theory from the neoclassical to a classical context is not warranted because normal prices are not used. The model is elegant in its simiplicity but it does not face the relevant problems of exhaustible resources posed by the real world.     

The Effects of the Economic Downturn on Interdependent Buyer–Supplier Relationships

The management of strategic buyer–supplier relationships is a critical concern for sourcing managers. The selection of key suppliers and how relationships with these suppliers are managed and incentivized can dramatically affect the buying company's performance. While the extant literature focusing on industrial buyer–supplier relationships is significant, the severe economic downturn beginning in 2008 tested buyer–supplier relationships in unprecedented ways, yielding new insights. The research presented in this paper uses dyadic cases to investigate transformations within industrial relationships during the economic downturn. Propositions are formulated that focus on why and how firms responded to the downturn. Three primary types of relationships are identified. The results indicate variation in the ways buying companies managed their key supplier relationships during the downturn: some firms behaved more cooperatively and found ways to jointly confront the effects of the downturn, while others responded by behaving competitively to maximize their individual outcomes. The results further suggest that researchers need to revisit existing models of relationship development and dissolution to understand how these relationships evolve or devolve. The research also raises questions about the value of physical and human asset specificity, and social investments in curtailing opportunistic behavior in times of severe economic stress.     

An Empirical Study of Buyer–Supplier Relationships within Small Business Organizations

A paradox exists in small business organizations; although effective buyer–supplier relationships are essential to the success of small businesses, these organizations may not have the purchasing and selling power in terms of managerial resources to implement them. This provides us an opportunity for research to determine how well developed are buyer–supplier relationships within small business organizations. Grounded in transaction cost and resource dependence theory, this paper presents and empirically tests a model that examines the relationships between buyer and supplier specificity and long‐term buyer–supplier relationships and the latter's impact on organizational performance from the buyers' perspective. The results of this study provide insight into the development and impact of buyer–supplier relationships within small business organizations. Several managerial implications can be determined.     

Small and Medium‐Sized Enterprises' Collaborative Buyer–Supplier Relationships: Boundary Spanning Individual Perspectives

Boundary‐spanning individuals (BSIs) play a critical role in supply chain management, especially in small and medium‐sized enterprises (SMEs) where interactions with buyers and suppliers can depend heavily on just a few individuals. This study, utilizing data from Korean manufacturing‐sector SMEs, explores whether cooperative social value orientations of SMEs' BSIs influence the effects of collaborative buyer‐supplier initiatives. The results suggested that the performance implication of decision‐sharing initiative increases when BSIs have a high level of cooperative social value orientation. However, it also negatively moderates the relationship between risk/benefit sharing (involving financial losses or gains) and performance suggesting possible negative side effects. However, we found that such orientation also negatively moderates the relationship between risk/benefit sharing (involving direct financial losses or gains) and relationship performance suggesting possible negative side effects.     

The Roles of Business Ethics in Conflict Management in Small Retailer–Supplier Business Relationships

Any ongoing relationship involves conflict. While facing conflict can be a serious matter for small firms with limited resources and capabilities, little is known about conflict management or the role of an ethical foundation, or business ethics, for small businesses. This study examines some influential factors regarding conflict management and the role of business ethics in satisfactory business relationship building in the context of small retailer–supplier relationships. The proposed model identifies (1) the relative importance of business ethics and role performance as antecedents and (2) two dimensions of satisfaction (social and economic) as consequences. The data, collected from small apparel retailers in the United States, clearly demonstrate the powerful role of business ethics. The positive perceptions of small retailers regarding supplier business ethics significantly reduces retailer–supplier conflict and increases retailer–supplier social satisfaction. Supplier role performance does not contribute to a reduction in retailer–supplier conflict as perceived by small retailers, but it does enhance the economic satisfaction of retailers, which further increases their social satisfaction. The functional benefits of conflict provide interesting insight. Providing several meaningful implications, this study demonstrates the unique aspects of conflict management within small retailer–supplier relationships.     

Theoretical Model of E-Business Infusion in Manufacturer-Reseller Relationships

Manufacturer-reseller relationships are becoming much more technology-infused as distribution managers are employing e-business tools to streamline existing channels. This paper attempts to develop a theoretical framework aimed at systematically studying e-business infusion in reseller-manufacturer interactions based on technology diffusion and governance frameworks and relevant propositions are developed. Implications of the theoretical framework for researchers and managers are discussed.     

Enhancing Dyadic Performance Through Boundary Spanners and Innovation: An Assessment of Service Provider–Customer Relationships

Firms recognize that working together through collaborative relationships offers potential benefits such as improving cooperation, information sharing, and overall performance. An additional and extremely valuable benefit of working together is the potential for creating innovative business approaches and solutions. Thus, developing external linkages has become a higher priority within many organizations. Boundary spanning employees offer one means of achieving closer cross‐firm relationships. We investigate the roles of boundary spanners by examining service providers and their relationships with customers. More specifically, we examine boundary spanning employees that are physically on‐site at customer facilities. Results provide strong support that boundary spanners perceiving higher levels of external organizational support from a client subsequently develop affective commitment to the customer. This, in turn, drives knowledge exchange and logistics innovation. A relationship between logistics innovation and performance (of service providers and of customers) was also found. Managerial implications of the research findings are discussed and suggestions presented covering future research.     

Loyal Now,but Not Forever! A Study of Narcissism and Male Consumer–Brand Relationships

Two prominent areas of research to emerge in recent years are consumer relationships with brands and narcissism in society. Whilst each of these research streams has contributed valuable insights on contemporary consumer behavior, there has not yet been an in‐depth comparative study of the relations that narcissists and non‐narcissists have with products and brands, a gap that this study seeks to address. In the same vein as Fournier (1998), an idiographic qualitative study was devised to investigate whether there are consistent differences in orientation to (a) people and (b) brands between men scoring high and low on the Narcissistic Personality Inventory. The findings show the agentic nature of the narcissist, as compared to the communal orientation of the non‐narcissist, in dealing with both people and brands. Furthermore, the findings offer evidence of grandiose and fragile variants of narcissism.     

A Kaldor–Hicks–Goodwin–Tobin–Kalecki model of growth and distribution

This paper presents a Kaldorian model of growth that incorporates both Kaldor's theory of income distribution and his endogenous technical progress function. Growth is driven by demand‐side forces that induce supply‐side accommodation. The model incorporates Hicksian induced innovation; Goodwin Marxist style labor conflict that affects wage bill division between workers and managers; Tobin inflation effects; and Kalecki monopoly power effects. Unlike the neo‐Kaleckian model, a Kaldorian economy operates at normal capacity utilization. Monopoly power plays a role as a barrier to entry rather than determining the functional distribution of income.     

Predator–Prey Model Estimates of the Cyclical Profit Squeeze

This paper extends the empirical literature on the cyclical profit squeeze (CPS) theory of crisis by developing a multivariate model with superior decomposition methods. A structural time series (unobserved components) model with trend and structural VAR components is employed. The VAR captures the dynamic cyclical interaction between unemployment and profit's share of income and is interpreted as a linear version of Goodwin's (1967) predator-prey model. Model extensions incorporate the accumulation process and structural shifts. Estimation results for the US economy are used to sort out the controversial relevance of the CPS in the post-1970 period. It is concluded that the CPS is relevant during the period from 1949 to 1985, but is moderately weakened in the post-1970 period. Inconclusive statistical support for the CPS is found for the post-1985 era.