Integrating global and local procurement for superior supplier working relations

Globalization is forcing global organizations to focus on processes that will enable them to more effectively and efficiently integrate and coordinate their activities throughout their worldwide organization. As such, global sourcing is becoming a standard practice in many global organizations. Using a dataset of 1455 observations from the suppliers of a North American-based global manufacturer of high technology products, this research evaluates how a global company can utilize a globally integrated procurement organization to achieve global and local sourcing responsiveness and superior supplier working relations. The study found that if a global procurement organization aspires to achieve exceptional supplier working relations, it should be highly integrated across its geographic regions with knowledgeable global and local procurement personnel who effectively communicate with the firm's suppliers, while working closely together in a coordinated manner to achieve a globally responsive supply chain.     

The effect of buyer behaviors on preferred customer status and access to supplier technological innovation: An empirical study of supplier perceptions

Buying firms are increasingly looking to suppliers for technological innovations that enhance the competitive position of their new products. However, extant research provides limited guidance on how buying firms may gain access to suppliers' innovative technologies. To address this gap in the literature, we draw from social exchange theory to posit sequential relationships among buyer behaviors, preferred customer status, and supplier's willingness to share technological innovations. We test our assertions by applying structural equation modeling statistical analyses to survey response data from 233 sales personnel of production good suppliers in the U.S. automotive industry. Whereas our results show that two buyer behaviors – early supplier involvement and relational reliability – positively affect preferred customer status, a third behavior – share of sales – has no effect. In turn, we find that preferred customer status is positively associated with supplier's willingness to share new technology with the buyer. Further, our findings indicate that preferred customer status fully mediates the benefits exchanged within a buyer–supplier relationship. Hence, our study highlights why buyers seeking innovations should take care that their behavior is appropriate for managing suppliers' perceptions. Accordingly, our results provide specific guidance to buyers as to how they may increase their access to suppliers' new technologies.     

Effects of redistributing policy support on farmers’ technical efficiency

The objective of this article is twofold: first, investigating the relationship between technical efficiency and decoupled direct payments of a sample of Italian farms prior to the application of the 2014–2020 Common Agricultural Policy reform; second, evaluating possible implications of alternative scenarios about distribution of direct payments on technical efficiency. To these aims, a stochastic frontier analysis is adopted. Results indicate that direct payments produce significant effects on technical efficiency in specialized farms, which received higher levels of support. However, effects are contrasting. Moreover, results show that redistribution of policy subsidies may negatively impact on technical efficiency to an extent depending upon the criterion of redistribution applied. Finally, some policy suggestions are given.     

Subsidiarity in the European Union

Against the backdrop of the highly controversial debate on the future competences of the different European institutions, the principle of subsidiarity, a fundamental principle of European Union law, has recently met with renewed interest. The contributions to this Forum discuss a number of pertinent issues.

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*A longer version of this article is to be found in H. Tomann (ed.): Die Rolle der europ?ischen Institutionen in der Wirtschaftspolitik, Baden-Baden 2006, Nomos, pp. 59-76.     

Old and new partners: Similarity and competition in the EU foreign agri-food trade

This paper analyses the trade relationships among the EU-15 members and some emerging partners: the NMS, Turkey and China. The EU expansion to include 10 new countries has modified quite remarkably the features of agri-food trade in Europe. Some of the NMS, such as Poland, Hungary and the Czech Republic, significantly contribute to the international agri-food trade and, since the beginning of the process of EU accession, they have modified dramatically the exchanges with the EU-15. More recently, other countries such as Turkey and China have established new relationships with the EU. Turkey is a large Mediterranean country and, as a candidate to the EU accession, enjoys a differential treatment in the agri-food trade relationships with the EU. China can be considered as a new international competitor, growing at faster pace after having joined the WTO and increasing its agri-food trade exchanges with the EU. The analysis will focus on the measurement of the similarity of the agri-food exports of Italy and the remaining EU-15 member States with the new partners entering the EU-15 market. It will be carried out with the support of three different indicators: the export structure similarity index (ES), the product similarity index (PSI) and the quality similarity index (QSI), using the Eurostat database with an eight “digit” merchandize disaggregation and with reference only to agri-food exchanges. Results will indicate that there is little similarity, especially when a comparison is made between the exports of the EU-15 countries to the EU market. Moreover, quality remains a crucial factor for Italian and European agri-food products when competing with external products.     

The boundary spanning capabilities of purchasing agents in buyer-supplier trust development

This study examines how individual purchasing agents function as boundary spanners with suppliers to influence trust development in themselves and the buying firms that employ them. Building upon boundary theory and supply chain cooperation research, we identify three boundary spanning capabilities of purchasing agents and empirically test how these capabilities shape buyer-supplier trust development. Using two samples of data collected from suppliers in the automotive industry and food industry, we found that a purchasing agent's effectiveness in strategic communication with suppliers affects a supplier's trust in the buying firm, while an agent's professional knowledge and ability toreach compromises with suppliers affect a supplier's trust in the purchasing agent representing the firm. Trust in the purchasing agent in turn affects trust in the buying firm. Theoretical and managerial implications are discussed.     

Top and bottom line relevance of purchasing and supply management

Getting a substantial value addition out of investments in purchasing and supply management (PSM) is of central importance to senior management. However, the empirical evidence of a financial value contribution is fragmented. The current study addresses this fragmentation by using a comprehensive performance measurement model to validate empirically (a) whether PSM contributes to the company's financial success and (b) whether the financial value contribution is mediated by benefits of three operational performances (cost, quality, and innovation performance). Our findings from an international survey of 306 major companies from eight industry sectors suggest that an advanced, comprehensive implementation of PSM activities contributes to an improvement in PSM outcomes, which in turn mediates company success.     

European integration as a financial adjustment problem

The European summit in Dublin has shown that any further European integration will be determined in great measure by agreement on the financing of future Community budgets and by the EC’s expenditure policy. This article shows how the political controversy about the Community’s budget expenditure and receipts can be raised to a more rational level by the adoption of an economic approach.     

Managing the Innovation Adoption of Supply Chain Finance—Empirical Evidence From Six European Case Studies

Logistics’ contribution to corporate performance has increased over recent years, particularly due to supply chain innovations. Opposed to common innovations focusing on the improvement of product or information flow, supply chain finance (SCF) targets the financial flow and allows buying firms and their suppliers to improve working capital and reduce costs. However, the adoption process of SCF is complex and rather unexplored in academia. This article provides an early step in building knowledge about SCF and in particular how firms adopt SCF, why they adopt differently, and what role suppliers play in the adoption process. The objective was therefore to close the gap between our knowledge on product and information flow oriented innovations and financial flow innovations along the supply chain, namely SCF. For this explorative research, we opted for an inductive multiple case study approach with six European firms. Based on our findings, four sets of propositions are posited and an extended SCF adoption framework is proposed revolving around the interrelated adoption processes of buying firms and their corresponding supplier bases.