A longitudinal analysis of supplier involvement in buyers’ new product development: working relations,inter-dependence,co-innovation,and performance outcomes

Drawing on social exchange theory, this study develops a longitudinal theoretical framework of supplier participation in buyers’ new product development (NPD) activities. The study focuses on the longitudinal temporal dynamics of supplier involvement in buyers’ new product development and postulates that working relations and inter-dependence impact suppliers’ attitudes toward co-innovation and suppliers’ co-innovation behaviors. Applying this framework to a 10-year longitudinal dataset from the North American automotive industry, the drivers of the escalation of supplier involvement in buyers’ NPD over time and the effect of this involvement on innovation performance, buyer sales performance, and supplier sales performance are identified. The results indicate that buyer–supplier communication, suppliers’ anticipated long-term returns, suppliers’ trust of a buyer, and supplier–buyer inter-dependence all play a significant role in changing supplier attitudes toward co-innovation and supplier involvement in a buyer’s NPD. Further, the study also shows that supplier involvement in buyer new product development is mutually beneficial for both the buyer and the supplier as it increases performance of both parties. Performance returns are actually greater for suppliers than for buyers. As such, this study contributes to both relationship management and new product development literature streams, as well as providing practical direction to manufacturers as to how they can increase suppliers’ involvement in their NPD to benefit both parties.     

Productivity and efficiency scores of dairy farms: the case of Turkey

A greater productivity level in milk production is the best answer to the increasing demand for this essential food. The main material of this study, which aims to determine the total factor productivity (TFP) and efficiency of dairy farms, consists of 100 surveys chosen from 1,429 registered farms of the Cattle Breeders Association of Aydin-Turkey by means of stratified sampling in May, 2006. The TFP decreases with farm size which shows that large farms fail to utilize their labour resource in full. In data envelopment analysis 15 farms work with an efficiency rate of 100%. The lowest efficiency rate was found to be 43%; the highest one was 100% and the mean rate was 79%. The efforts to improve efficiency levels should include participatory extension and coordinated research programs that aim to increase the productivity and efficiency levels of these small farms in the long run.     

Firm taxation and the endogenous distribution of markups

Melitz and Ottaviano (2008) predicts a monotonic relation between productivity and markups. When including revenue taxes, however, this relation is non-monotonic and depends on taxes. Even without taxes, productivity and markups can be non-monotonic depending on how non-homotheticity is modeled.     

Do marketing capabilities consistently mediate effects of firm intangible capital on performance across institutional environments?

This study examines whether marketing capabilities consistently mediate intangible capital on performance across institutional environments. A partial test of resource-advantage theory is conducted, examining the relationship between four intangible capital elements on marketing capabilities and consequent firm performance. The results, based upon samples of 239 importers in Japan and the U.S., indicate that human capital and relational capital influenced marketing capabilities, and that marketing capabilities influenced performance similarly across institutional environments. Organizational capital, however, was found to only influence marketing capabilities for U.S. importers. Furthermore, our results indicate full mediation in both samples. Implications for academics and practitioners are presented.     

An econometric analysis of urban households’ animal products consumption in Turkey

People in developing countries are increasing their consumption from the very low levels of the past, and they have a long way to go before coming near developed country averages. In this study, households’ animal products consumption patterns are analysed by using Linear Approximation of Almost Ideal Demand System (LA/AIDS) and survey data collected from households in urban areas in Turkey. According to the results of the study, annual per capita consumption of animal products were 48.18?kg for milk, 26.89?kg for yogurt, 18.55?kg for cheese, 6.45?kg for meat, 22.11?kg for poultry and 10.05?kg for fish. Price elasticities were found to be lower than 1 for milk, yogurt, cheese, poultry and fish and higher than 1 for meat. Moreover, the impacts of socio-demographic factors on the demand for animal products were found to be very low. Determination of production targets and formulation of polices are possible by obtaining the proper information related to the livestock products.