Global sourcing strategy and sustainable competitive advantage

Global sourcing strategy has been one of the most hotly debated management trends in the last 20 years. In its early years, global sourcing was examined mostly from “in-house” development and procurement perspectives; and in the last several years, research focus has shifted to “outsourcing” activities. Along with this shift from internal to external focus on global sourcing, many researchers and business practitioners have applied a core competency argument to justify increased levels of outsourcing activities on a global basis. Although the beneficial aspects of outsourcing are assumed in most cases, no consensus exists in reality as to the effect of outsourcing. Furthermore, the increased instability of the exchange rate environment in the last several years has also led to increased difficulties in managing globally scattered operations that were once fashionable in the 1980s-90s under the rubric of global strategy. In this article, the authors explore potential limitations and negative consequences of outsourcing strategy on a global scale.     

An optimization approach to business buyer choice sets: How many suppliers should be included?

In many new or repeat purchasing situations, business buyers must decide how many suppliers to consider (a “choice set”) in determining which supplier(s) to actually buy from or contract with. This paper develops an optimization approach to determining the size of the choice set, taking into consideration buyer utility and search and evaluation costs. A theoretical model is developed for both one-time and repeat purchase situations. The model is estimated using empirical data received from bids received for procurement auctions. In these auctions, suppliers provide bids for steel pipe based on two product attributes (price and delivery time). Model sensitivity to small changes in parameters is also tested.     

The evolution of the seven steps of selling

The traditional seven steps of selling is perhaps the oldest paradigm in the sales discipline. The seven steps model has served as a basic framework in sales training, personal selling textbooks, and teaching personal selling classes. Very little has changed in this framework since the turn of the 20th century. This article reviews the traditional seven steps of selling, examines transformative factors that have led to changes in each step, and presents an evolved seven steps process. While the traditional seven steps reflected a selling orientation on the part of a firm, the evolved selling process reflects more of a customer orientation in that the focus is on relationship selling—that is, securing, building, and maintaining long-term relationships with profitable customers.     

Intraorganizational influences on business-to-business pricing strategies: A political economy perspective

Historically, researchers have addressed pricing issues from many different perspectives, including the firm's business model (cost structure, experience curve), stakeholders (customers and channel partners), competition (market structure and intensity), and macroeconomic issues (interest rates, economic growth). An important dimension of organizational price setting that has been neglected is the impact that the firm's internal political system, reflected in interdepartmental coordination and rivalry, has upon price setting. A study of managers who are influential in shaping the firm's pricing strategy was conducted to identify intraorganizational issues and their relative impact on the firm's pricing strategy. The results of the study provide important implications for the development and execution of a firm's pricing strategy.     

Sales technology within the salesperson's relationships: A research agenda

The average cost of a sales call has declined approximately 15% over the past decade, while average salesperson compensation has doubled. These statistics illustrate an important benefit of technology: salespeople are more productive. To better understand the impact technology has played on sales and sales management, this paper examines the impact of sales technology from four perspectives: the salesperson, the field sales manager, the sales executive, and the customer. Noting that the needs and evaluations of technology vary, depending upon the functional position and viewpoint, a research agenda is offered that reflects these various perspectives.     

Societal trust and corporate tax avoidance

Using an international sample of firms from 25 countries and a country-level index for societal trust, we document that societal trust is negatively associated with tax avoidance, even after controlling for other institutional determinants, such as home country legal institutions and tax system characteristics. We explore the effects of two country-level institutional characteristics—strength of legal institutions and capital market pressure—on the relation between societal trust and tax avoidance. We find that the relation between trust and tax avoidance is less pronounced when the legal institutions in a country are stronger and is more pronounced when the capital market pressure is stronger. Finally, we examine the relation between societal trust and tax evasion, an extreme and illegal form of tax avoidance. We show that societal trust is negatively related to tax evasion and the negative relation is less pronounced when legal institutions are stronger.     

Rediscounting private dollar debt and capital flight in Ecuador

This paper presents an analysis of the impact of structural change on capital flight when the structural change constrains the monetary authorities' ability to impose an inflation tax. Implications for the conduct of economic policy in open economies are drawn from the experience of Ecuador.     

The effect of merger on employee views of corporate reputation: Time and space dependent theory

Market relationships are often influenced by factors inside of the firm. Here we examine how the employees' view of corporate reputation of a merged B2B firm, assessed by corporate character (empathy, warmth, integrity and conscientiousness), influences their emotional attachment, satisfaction and job security. Warmth and empathy correlate strongly with satisfaction. Amongst a number of hypothesised ‘proximity’ factors time (e.g. length of service) and space (e.g. work location) had a substantial effect on perceived warmth and empathy. The interaction of the two had the most significant effect on emotional attachment; in that employees working remotely and of longer standing were the most disaffected. We propose the employees' length of service and work location as important factors generally in determining their emotional response to a merger and in predicting where disaffect will be most acute.     

What makes a good case study? A positivist review of qualitative case research published in Industrial Marketing Management, 1971-2006

Business-to-business marketing research has a long tradition of using qualitative case studies. Industrial Marketing Management (IMM) has actively encouraged the use of case methods, resulting in many important theoretical advances in the field. However, debate still rages over what constitutes “good case research”. This article addresses this issue from a positivist standpoint. We examine the how authors address issues of quality in the 105 qualitative case studies published in IMM between 1971 and 2006. Four periods were identified: 1971-1979, 1980-1989, 1990-1999, and 2000-2006. Findings demonstrate that, from a positivist viewpoint, there has been a steady improvement in how authors addressed issues of research quality in published qualitative case studies. Suggestions for changes in data presentation, reviewer expectations, the IMM reviewer feedback form, and the use of web-based appendices containing data pertinent to reader judgments of research quality are suggested.     

The role of program fairness in asymmetrical channel relationships

Managing distributor compliance with manufacturer-initiated programs is critical to both program success and relationship enhancement. This study examines how a manufacturer might better motivate distributors with varying levels of dependence. Previous research suggests that two variables influence distributor compliance: economic incentives and dependence dynamics. Drawing from fairness heuristic theory, this study extends previous research by investigating the role of fairness in affecting compliance and long-term relationships. The authors observe the contingent effect of fairness along various levels of distributor dependence. In the context of a naturally occurring program, the authors collect data from a focal manufacturer's distribution channel and find that (1) fairness perceptions have significant impacts on both compliance and relational outcomes, (2) the efficacy of program fairness declines as distributor dependence increases, and (3) distributor dependence increases the effect of economic incentives on compliance. The authors discuss the theoretical and managerial implications of these findings.