Journal articles on the topic 'Supply chain management, buyer-supplier relationship, cooperation'

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1

Thomas, Stephanie, Jacqueline Eastman, C. David Shepherd, and Luther Trey Denton. "A comparative assessment of win-win and win-lose negotiation strategy use on supply chain relational outcomes." International Journal of Logistics Management 29, no. 1 (February 12, 2018): 191–215. http://dx.doi.org/10.1108/ijlm-10-2016-0238.

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Purpose The purpose of this paper is to study the relational impact of using win-win or win-lose negotiation strategies within different types of buyer-supplier relationships. Design/methodology/approach A multi-method approach is used. Qualitative interviews with supply chain managers reveal that relationship-specific assets and cooperation are important relational factors in buyer-supplier negotiations. Framing interview insights within the social exchange theory (SET), hypotheses are tested using a scenario-based behavioral experiment. Findings Experimental results suggest that win-lose negotiators decrease their negotiating partner’s commitment of relationship-specific assets and levels of cooperation. In addition, the use of a win-lose negotiation strategy reduces levels of relationship-specific assets and cooperation more in highly interdependent buyer-supplier relationships than relationships that are not as close. Research limitations/implications Buyer-supplier relationships are complex interactions. Negotiation strategy choice decisions can have long-term effects on the overall relationship. As demonstrated in this study, previous research focusing on one side “winning” a negotiation as a measure of success has oversimplified this complex phenomenon. Practical implications The use of a win-lose negotiation strategy can have a negative impact on relational outcomes like cooperation and relationship-specific assets. For companies interested in developing strong supply chain relationships, buyer and suppliers should choose their negotiation strategy carefully as the relational impact extends beyond the single negotiation encounter. Originality/value Previous research predominantly advocates for the use of a win-win negotiation strategy within interdependent relationships. This research offers evidence that the use of a win-lose strategy does have a long-term relational impact.
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Rashed, Chourdhury Abul Anam, Abdullahil Azeem, and Zaheed Halim. "Effect of Information and Knowledge Sharing on Supply Chain Performance: A Survey Based Approach." Journal of Operations and Supply Chain Management 3, no. 2 (December 22, 2010): 61. http://dx.doi.org/10.12660/joscmv3n2p61-77.

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Supply chain management emphasizes the overall and long-term benefit of all parties on the chain through cooperation and information sharing. Recently, information sharing is attaining the concentration of the researchers. Majority of the previous work is on the individual effect of information and knowledge sharing on performance. This paper aims to focus on the combined consequence of information and knowledge sharing on supplier's operational performance through supplier-buyer relationship. A conceptual model was formulated based on previous literature. A questionnaire based survey was performed. Data from 30 Bangladeshi Readymade Garments Industry were collected through interview and mail survey. The content validity, construct validity, and reliability are tested. Path Analysis is performed for the identification of the validity of the model. The findings show that information sharing is a prerequisite for knowledge sharing and the close supplier-buyer relationship is a vital factor for escalating the supplier's operational performance.
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Jajja, Muhammad Shakeel Sadiq, Vijay R. Kannan, Shaukat Ali Brah, and Syed Zahoor Hassan. "Linkages between firm innovation strategy, suppliers, product innovation, and business performance." International Journal of Operations & Production Management 37, no. 8 (August 7, 2017): 1054–75. http://dx.doi.org/10.1108/ijopm-09-2014-0424.

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Purpose The purpose of this paper is to use resource dependence theory to hypothesize that a buyer’s innovation strategy enhances supplier innovation focus and a buyer-supplier relationship that supports product innovation. These in turn positively impact buyer product innovation outcomes and business performance. Moreover, it is argued that the buyer-supplier relationship positively moderates the impact of supplier innovation focus on product innovation. Design/methodology/approach Structural equation modeling and hierarchical linear regression are used to test hypotheses. Findings The results support all hypotheses and suggest that company (buyer) age and variables related to buyer engagement with international markets directly influence performance. The results also indicate that the buyer-supplier relationship does not moderate the relationship between innovation strategy and innovation performance. Research limitations/implications This study demonstrates that how a firm builds the conditions to effectively leverage the complementary resources and capabilities of suppliers directly influence innovation outcomes and business performance. Practical implications An important factor in firms achieving their product innovation goals is the selection and management of suppliers that are strategically aligned with regard to innovation. While managers need to develop internal innovation capabilities, partnering with like-minded organizations, and creating conditions for effective cooperation are key drivers of innovation outcomes. Originality/value In contrast to prior research that has examined operational issues, this study shows how the strategic alignment of buyers and suppliers with regard to innovation is an antecedent of product innovation outcomes. Moreover, it adds to a limited literature on supply chain management practices in emerging markets.
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Rohner, Peter, and Tobias Mettler. "Hospital Supplier Relationship Management." International Journal of Applied Logistics 1, no. 3 (July 2010): 44–61. http://dx.doi.org/10.4018/jal.2010070103.

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The structural transformation of modern societies (e.g., aging of population, mobility) as well as continuously increasing market dynamics (e.g., mergers, technological advancement) induces health care organizations to reduce their costs while enhancing service delivery. In other industrial sectors this was achieved by optimizing cooperation, coordination, and communication particularly with regard to the supplier base. However, as the pressure to innovate will increase extensively in the next years, similar developments are becoming relevant for the health care supply chain. In this paper, the authors adapt the current findings on supplier relationship management (SRM) to the health care context. The authors analyze theoretical foundations of SRM and explore a particular area of application in health care, namely the ordering of pharmaceuticals by hospitals. Finally, on the basis of a case study, applications of different SRM services are discussed.
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Field, Joy M., and Larry C. Meile. "Supplier relations and supply chain performance in financial services processes." International Journal of Operations & Production Management 28, no. 2 (February 1, 2008): 185–206. http://dx.doi.org/10.1108/01443570810846892.

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PurposeThis paper aims to empirically test the relationship between supplier relations and satisfaction with overall supplier performance in a services context at a process level of analysis.Design/methodology/approachTwo hypotheses are developed, one predicting a positive relationship between a multi‐dimensional construct of supplier relations and satisfaction with overall supplier performance, and one five‐part hypothesis predicting positive relationships between the underlying components of supplier relations and satisfaction with overall supplier performance. Using a sample of 108 financial services processes, the first hypothesis is tested using regression analysis, and the second hypothesis is tested using correlation analysis.FindingsAfter controlling for supplier efficiency and responsiveness, use of information technology, electronic information‐sharing, supplier type, and firm size, better supplier relations are associated with satisfaction with overall supplier performance. However, while the “partnering” components of the relationship (i.e. cooperation and long‐term commitment) are correlated with satisfaction with overall supplier performance, the “operational” components of the relationship (i.e. high degree of coordination, information‐sharing, and feedback) are not.Research limitations/implicationsLimited informant population, primarily single respondents, some single‐item variables.Practical implicationsThe research results suggest not only the importance of improving overall supplier relations, but also the particular benefits of building partnerships within the service supply chain through co‐operation and long‐term commitment in order to increase satisfaction with overall supplier performance.Originality/valueUnlike most empirical supply chain management studies, which use data from manufacturers at the strategic business unit or firm level, and recognizing that services and manufacturers differ in certain respects that are salient for supply chain management, this study uses data from a services industry (i.e. financial services) collected at the process level and provides unique insights into services and process level supply chain management.
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Pérez Mesa, Juan Carlos, and Emilio Galdeano-Gómez. "Collaborative firms managing perishable products in a complex supply network: an empirical analysis of performance." Supply Chain Management: An International Journal 20, no. 2 (March 9, 2015): 128–38. http://dx.doi.org/10.1108/scm-06-2014-0185.

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Purpose – This purpose of this study is to provide empirical evidence of how cooperation is related to suppliers’ performance, a relationship that is thought to be affected by the type of customer and the extent to which the market is diversified. It analyzes horticultural exporting firms in southeastern Spain, which are the main suppliers of European markets. Together with their primary customers (large-scale retail companies such as Carrefour, Tesco and Aldi), these firms constitute a complex supply network composed of a variety of agents and sales channels. This network will be studied from the perspective of the supplier–supplier relationship that is critical to their survival. Design/methodology/approach – Starting with a detailed description of Europe’s vegetable supply chain, a hierarchical regression is used with an index of cooperation intensity, moderated by retail sales and market concentration. The authors test the hypotheses using panel data on a set of 118 horticultural marketing firms in southeast Spain for the period 2009-2011. Findings – Cooperation strategies are shown to have positive effects on performance (market creation, promotion, quality, training, joint supply purchases and research ventures). Moreover, the retail channel and market diversification are observed to have a positive effect on the relationship between cooperation and the supplier’s performance. They demonstrate that active cooperation strategies have a greater bearing on performance in those firms whose primary customers are retailers. This circumstance provides evidence of the synergies and benefits that may arise when the supplier integrates the retailer in the supply chain, but which do not arise with other types of customers. Research limitations/implications – Although this study refers to a specific sector (fruits and vegetables) and the statistical results are limited, they provide insights that may assist in understanding how other perishable produce-related industries work: such industries share many common features. Practical implications – A more stable relationship between suppliers and retailers in the perishable produce market will render the supply firm more cooperative, competitive and profitable. Increased performance does not arise from the better conditions and improved sales power offered by the customer but instead from the adaptability of the supplier. Likewise, market diversification drives the supply firm toward a cooperative strategy, making it more profitable and competitive. As a practical norm, market diversification alone will not have positive results on performance unless the firm proves capable of enhancing its capacity for cooperation. Social implications – Proper management of the agricultural produce supply chain has repercussions on all of the members of that chain, although special emphasis should be placed on producers and consumers. The availability of food, its quality and its safety depend on management during the production phase. Along these lines, and more specifically for the consumer, this work is relevant because the sector analyzed accounts for 40 per cent of the vegetables consumed in Europe. Originality/value – This article defends the supplier–supplier relationship as the starting point for the analysis of a supply network. In certain sectors, the suppliers’ ability both to solve their clients’ problems and to be profitable is conditioned on maintaining the network and, therefore, the basic focus must center on analyzing their relationships, always including the customer, who has a direct or indirect influence on those relationships. Previous research has not comprehensively addressed this issue, let alone that of a sector with agile and perishable products in which, due to its nature, decision-making about market destinations and sales channels is the order of the day.
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Harsasi, Meirani. "Improving Supply Chain Performance through the Implementation of Supply Flexibility." GATR Global Journal of Business Social Sciences Review 5, no. 1 (January 17, 2017): 30–36. http://dx.doi.org/10.35609/gjbssr.2017.5.1(5).

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Objective - This study aims to analyze the impact of supply flexibility on supply chain performance. The rapidlychanging marketdemands have to be faced with a flexible supply chain management in order to reach market acceptance. The key to successful supply chain management also depends on supply flexibility; given that the smooth flow of materials and parts will define the whole manufacture operation. Methodology/Technique - Supply flexibility consists of two variables, namely, supplier flexibility and supply network flexibility.The research was conducted by taking samples from the garment industry in Indonesia. Findings - As a result of this research, it was found that supplier flexibility affects the supply chain performance, while supply network flexibility does not. Novelty - The study suggests that the Indonesian garment industry needs to strengthen the cooperation network with more suppliers so that the relationship can be more flexible to ensure the availability of high quality raw materials and parts at the appropriate prices to maintain the smooth operation of the company. Type of Paper - Empirical Keywords: Supply Chain Performance; Supply Chain Management; Supply Flexibility; Supplier Flexibility; Supply Network Flexibility. JEL Classification: L11, R41.
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8

Lampón, Jesús F., Guillermo Pérez-Elizundia, and José Alfredo Delgado‐Guzmán. "Relevance of the cooperation in financing the automobile industry's supply chain: the case of reverse factoring." Journal of Manufacturing Technology Management 32, no. 5 (March 3, 2021): 1094–112. http://dx.doi.org/10.1108/jmtm-11-2020-0452.

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PurposeThis study examines the motives and enabling factors regarding reverse factoring (RF) adoption in the automobile industry's supply chain.Design/methodology/approachThis is a qualitative case study based on in-depth interviews with financial institutions in two countries having different statuses within the automobile industry global value chain: Mexico as a peripheral and Spain as a semi-peripheral country.FindingsThe RF is more widely deployed in Spain than in Mexico. The differences in the adoption of RF between the two countries stem from the availability of programs for suppliers at different supply levels, their efficient implementation and a robust regulatory framework, but especially from the cooperative approach adopted. The motives and enablers of RF adoption in the automobile industry can be explained under a framework of different supply chain management models. The RF programs driven by self-interest financial motives are characterized by an asymmetric distribution of benefits among supply chain participants. The RF programs that combine self-interest with cooperative motives are partially characterized by balanced benefits. In addition, they favor involvement practices and strengthen long-term relationships among supply chain participants. In this cooperative approach, trust, transparency and especially sharing information are considered relevant enablers. Finally, the specific automobile industry's features that determine RF adoption are linked to the structure and governance mode of the supply chain. The structure in terms of length – multiple supply levels – conditions the design of RF programs based on the buyer's position in the supply chain. The governance mode, particularly how the relationships are established, conditions the factors and requisites for efficient adoption of the RF programs.Originality/valueThis research analyzes the RF framed in the dynamics of buyer–supplier relationships and different models of supply chain management, allowing us to identify cooperation motives and their impact on RF adoption, beyond the traditional economic and financial motives highlighted by previous literature.
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Bai, Chunguang, Joseph Sarkis, and Yijie Dou. "Constructing a process model for low-carbon supply chain cooperation practices based on the DEMATEL and the NK model." Supply Chain Management: An International Journal 22, no. 3 (May 8, 2017): 237–57. http://dx.doi.org/10.1108/scm-09-2015-0361.

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Purpose This paper aims to introduce a joint DEMATEL and NK methodology to develop a process model for introducing and implementing relational supply chain practices for low-carbon supply chains. Using this process model as a guide, insights into specific practices and how to implement these relational practices to achieve competitive advantage across organizations are introduced. Design/methodology/approach Low-carbon cooperation practices framework based on the relational view is developed. A methodology based on DEMATEL and the NK model is used to construct a sequential process model for introducing and implementing these relational practices. Empirical data from three manufacturing organizations in China are utilized to validate the model. Findings Initial results provide a sequence of relational practices for guiding those organizations and their suppliers for healthy and low-carbon development. Interdependencies between relational practices are analyzed and evaluated from four aspects. Insights into the broader application of the methodology and initial results from both a research and managerial perspective are presented, especially with consideration of the China, an emerging economy, context. Research limitations/implications The methodology remains relatively abstract in nature, yet the tool can provide very useful interpretations and information for both researchers and practitioners. Practical implications This paper stipulates that in addition to internal operational practices, the relational practices between buyer and supplier may be equally important to achieve a low-carbon outcome, especially in supply chain setting. This paper also shows that not only the relational practice itself but also the implementation sequence of the relational practices can relate to performance. According to the authors’ initial results, organizations in this study should first develop product development cooperation, then exchange carbon knowledge and implement effective governance and last build a trust relationship with its suppliers for low-carbon cooperation. Originality/value This is one of the few approaches that directly evaluates and identifies the interdependencies among relational practices and to construct a process model for introducing and implementing low-carbon supply chain cooperation. It is also the first time that the NK model has been integrated with DEMATEL. Focusing on Chinese supply chain carbon emissions concerns is also a unique perspective.
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Meqdadi, Osama, Thomas E. Johnsen, and Mark Pagell. "Relationship configurations for procuring from social enterprises." International Journal of Operations & Production Management 40, no. 6 (June 26, 2020): 819–45. http://dx.doi.org/10.1108/ijopm-07-2019-0523.

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PurposeThis paper explores how the procurement function initiates and develops relationships with social enterprises that are intended to induce social impact in the supply networks of for-profit firms.Design/methodology/approachThe paper utilises an in-depth case study involving a focal company, first-tier supplier, nongovernmental organisation and four social enterprises.FindingsTension mitigation that arises between social and commercial logics occurs via individual relationships through building trust, dependency manipulation, monitoring and supplier development activities. Deeper insights are revealed when triadic relationships are viewed within a quadratic relationship configuration that enables better capturing the essence of supply networks.Research limitations/implicationsThe paper is based on a single case study, limiting empirical generalisability. Future research could consider multiple case studies to reveal different types of relationship configurations that induce social impact in supply networks.Practical implicationsSocietal goals can be met while maintaining supply network economic performance if procurement involves a trusted third party such as a nongovernmental organisation and helps to develop social enterprises as suppliers.Originality/valueThe paper contributes to the sustainable supply chain management literature by reporting on a novel procurement approach for enhancing social sustainability through cooperation with social enterprises. The paper also contributes to supply network theory by demonstrating how exploring quadratic relationships can reveal novel relationship configurations within supply networks.
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Alonso-Muñoz, Sara, Rocío González-Sánchez, Cristina Siligardi, and Fernando E. García-Muiña. "New Circular Networks in Resilient Supply Chains: An External Capital Perspective." Sustainability 13, no. 11 (May 29, 2021): 6130. http://dx.doi.org/10.3390/su13116130.

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The pandemic caused by COVID-19 has had an impact on the relationships established between different actors in organisations. To deal with these changes, it is necessary to develop a resilience capacity that allows for the establishment of different patterns of relationships through a new management model. The application of circularity principles implies a radical change in stakeholder relations, breaking with the “end-of-life” concept existing in linear economies. Furthermore, circular economy can ensure resilience in supply chains, and it can be considered as a tool in uncertain environments. Therefore, the objective of this study is to analyse the association between the customer–supplier relationships with circular supply chains based on the intellectual capital-based view theory. External capital is a crucial factor for organisations, and it helps with building remarkable capabilities for the whole supply chain due to collaboration and cooperation. This research contributes with a systematic revision of the literature regarding circular supply chains and customer–supplier external capital, providing an exploratory model. Establishing a closer and effective relationship with customers and suppliers supposes a differentiating value and competitive advantages. Actors involved in the supply chain are essential in the implementation of circularity in organisations for reducing waste production and returning resources to the production cycle. Therefore, circular networks related to customers’ behaviour, sustainable supplier election and IT tools play a key factor in improving resilience in supply chains.
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Grandinetti, Roberto. "Exploring the dark side of cooperative buyer-seller relationships." Journal of Business & Industrial Marketing 32, no. 2 (March 6, 2017): 326–36. http://dx.doi.org/10.1108/jbim-04-2016-0066.

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Purpose This paper aims to study the dark side of cooperative buyer-seller relationships to improve our knowledge of this phenomenon. Design/methodology/approach A selective definition of dark side has been adopted, linking it to relationships of a cooperative nature within which one of the two partners assumes an opportunistic behavior. Taking into account this definition, the first part of the paper critically reviews those studies which have analyzed cooperative relations along the supply chain, drawing attention to the formation of a dark side. The second part of the paper re-examines the association between cooperation and opportunism, taking the point of view of the disadvantaged partner and adopting the networking perspective developed by the Industrial Marketing and Purchasing (IMP) Group. Findings The literature review enables one to identify two types of dark side. In the first case, the partner at a disadvantage is aware of what is going on, but remains trapped in the relationship because of a power imbalance and a strong dependence. In the second case, the relationship is spoilt by one partner keeping a secret from the other, exploiting an information asymmetry. The main constructs of the IMP approach have made possible to shed light on the two different types of dark side – trap and secret – that were examined from the perspective of the disadvantaged partner. Practical implications The analysis of the disadvantaged partner has made it possible to understand what strategies he can use to prevent or mitigate such a disadvantaged position. Originality/value The paper develops an original view of the phenomenon of dark side in cooperative relationships.
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Shahzad, Khuram, Tahir Ali, Marko Kohtamäki, and Josu Takala. "Enabling roles of relationship governance mechanisms in the choice of inter-firm conflict resolution strategies." Journal of Business & Industrial Marketing 35, no. 6 (January 27, 2020): 957–69. http://dx.doi.org/10.1108/jbim-06-2019-0309.

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Purpose This study aims to present an integrated framework and investigate the enabling roles of governance mechanisms (i.e. contract, interdependence, trust and communication) in the choice of effective conflict resolution strategies (CRS) that in turn facilitate buyer–supplier relationship (BSR) performance. Design/methodology/approach Using Web-survey, data are collected from 170 Finnish small- and medium-sized enterprises that have key relationships with suppliers. This study uses structural equation modeling to test the research framework and hypotheses of the study. Findings The results based on empirical evidence demonstrate how the firms’ choice of CRS depends on the governance mechanisms. The problem solving approach is the most preferable choice, while the legalistic approach remains the last resort influenced by different governance mechanisms. Interdependence and trust between firms drive them to compromise while resolving inter-organizational conflicts. The selected strategies by firms may also either reinforce or deteriorate relationship performance. Practical implications Supply chain managers should recognize the context in which these choices of CRS are made, as it guides them to anticipate their partner’s behavior as well as influences their strategy choice decisions when coping with conflicts. A trustworthy environment supports in providing a certain level of confidence while interdependency drives firms to compromise. The legalistic strategy can hurt the partner’s feelings and diminish relationship performance. Originality/value Conflicts in BSR have become inevitable, but the existing literature is missing evidence on how companies use CRS to enhance relationship performance. Hence, this study differs from those of earlier conflict studies, as it provides a more integrative perspective of buyer–supplier conflict resolution process. This study argues that relationship governance mechanisms can be connected to the choice of effective CRS when tensions arise. Moreover, by assessing the relationship between CRS and relationship performance, this study offers valuable insights to understand that effective strategies enable partners to mutually adapt constructive approaches that facilitate cooperative behavior and accommodate both parties’ interests and needs.
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Hong, Jiangtao, Zhihua Zhou, Xin Li, and Kwok Hung Lau. "Supply chain quality management and firm performance in China's food industry—the moderating role of social co-regulation." International Journal of Logistics Management, The 31, no. 1 (February 10, 2020): 99–122. http://dx.doi.org/10.1108/ijlm-05-2018-0124.

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PurposeThe purpose of this paper is to investigate the relationships between supply chain quality management (SCQM) and firm performance (including quality safety performance and sales performance) leveraging social co-regulation as a moderator.Design/methodology/approachUsing survey data collected from 203 food manufacturers in China, a series of hierarchical linear modeling analyses were conducted to test hypotheses on the relationships between SCQM and firm performance.FindingsThe findings are threefold. First, all three dimensions of food SCQM practices, i.e., supplier quality management, internal quality management, and customer quality management, have significant positive effects on an enterprise's quality safety performance and sales performance. Second, SCQM practices can also increase sales performance indirectly through quality safety performance as a mediator. Third, while social co-regulation has no significant effect on the relationship between supplier quality management and quality safety performance, it has a significant moderating effect on the relationship between internal quality management and quality safety performance, customer quality management and quality safety performance.Research limitations/implicationsThis study not only integrates SCQM with social co-regulation but also explores the regulating effect of social co-regulation through empirical analysis, thereby providing a theoretical base for future research. However, this research is confined to China and so the results are not necessarily generalizable to other countries.Practical implicationsThe findings inform managers of the importance in enhancing awareness of food quality and safety as well as in improving their sensitivity to salient quality demands of external stakeholders in order to achieve better SCQM practices. The findings can also inform policymakers of the significance in designing a systematic multi-agent cooperation mechanism for food SCQM as well as to build an effective information sharing mechanism for social co-regulation of food safety.Originality/valueThis study contributes to knowledge by empirically examining the relationships of SCQM practices with firm performance. It also expands the scope of SCQM research by incorporating social co-regulation in the study framework.
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Oduro, Stephen, Kwamena Minta Nyarku, and Rotimi A. Gbadeyan. "Supplier relationship management and organizational performance of hospitals in an emerging economy context." Journal of Modelling in Management 15, no. 4 (February 12, 2020): 1451–78. http://dx.doi.org/10.1108/jm2-03-2019-0072.

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Purpose Integrating the social exchange and resource dependency theories, the study aims to comparatively examine the supplier relationship management (SRM) dimensions and organizational performance links of private and public hospitals in Ghana. Design/methodology/approach Comparative in nature; employing a quantitative approach; and using simple random and convenience sampling techniques, the study tested the proposed hypotheses using structural equation model-partial least square based on 205 usable questionnaires. Partial least square-multigroup analysis (PLS-MGA) was performed to test the significance of the difference in the parameters between the two samples: private and public hospitals in Ghana. Findings The dimensions of SRM (communication, cooperation, trust, atmosphere and adaptation) have a significant, positive impact on private hospitals’ performance in Ghana. Similarly, communication and trust were found to be positively and significantly correlated to public hospitals’ performance. In contrast, cooperation, atmosphere and adaptation dimensions showed no significant, positive effect on public hospitals’ performance. PLS-MGA disclosed that these observed differences in the findings between the private and public hospitals in Ghana are statistically significant. Research limitations/implications The findings of the study, while limited to hospitals in Ghana, are likely to be relevant in other emerging economies for effective and enhanced supply chain relationship management. Practical implications The findings provide pragmatic insights for marketing practitioners and organizational leaders of hospitals about the significance of SRM dimensions in today’s globalized marketplace, and how to nurture them to enhance organizational performance. Originality/value The value of the study lies in the examination of the relationship between SRM and organizational performance in the health sector by comparing private and public hospitals in an emerging economy context.
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Zhixiang, Chen. "Investigation of supplier/buyer coordination performance in chinese companies." Gestão & Produção 11, no. 3 (December 2004): 289–98. http://dx.doi.org/10.1590/s0104-530x2004000300004.

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This paper discusses the performance of supplier/buyer coordination in supply chain systems in China based on data from a survey of that country's business sector. The survey indicates that the rapidly expanding economy has raised the awareness of an increasing number of Chinese firms to the importance of cooperating and coordinating with partners in supply chain management. However, although coordinated delivery, quality and responsiveness show an upward trend, such is not the case in information sharing and in cooperative efforts to reduce inventory and costs. Hence, many companies have yet to form close cooperative relationships with partners. This study may be useful for both Chinese and foreign companies, serving to underpin the development of new strategies for operating supply chains in the changing global economy.
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Campaniaris, Constantine, Richard Murray, Steven Hayes, and Michael Jeffrey. "Evidence-based development of a strategy for Canadian apparel SMEs." Journal of Fashion Marketing and Management 19, no. 3 (July 13, 2015): 299–314. http://dx.doi.org/10.1108/jfmm-11-2014-0079.

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Purpose – The Canadian apparel industry has long been challenged by imports from low-wage countries while its exports have declined since their height in 2002. This situation was exacerbated with trade liberalisation, which started in January 2005. Data from Industry Canada and a number of studies, amongst which those of the Apparel Human Resources Council (AHRC), showing the adverse effects of trade liberalisation since the phasing out of the multi-fibre agreement in 2005, the lack of competitive advantage for Canada as an apparel manufacturing nation and the subsequent rapid decline of its apparel industry, pointed to the need for a strategic response from the Canadian apparel industry, particularly from small to medium-sized enterprises. A study conducted for the AHRC of the Federal Government of Canada outlined a number of strategies that Canadian apparel companies could pursue, focusing on elements other than manufacturing in the traditional apparel value chain. These strategies seemed to suggest the implementation of a cluster approach where greater cooperation between suppliers would be required throughout the supply chain with a focus on functional expertise and relationships. The purpose of this paper is to determine whether a cluster strategy is being applied or if indeed it is applicable to Canada’s apparel companies. Design/methodology/approach – A literature search, was undertaken to find the options available for the organisation of SMEs so that: an analytical framework could be created from the various theories and concepts that; would enable the evidence-based selection of an option or options suitable for adoption by Canadian apparel SMEs, to assist them to be more effective than stand-alone enterprises. Data were collected from case studies of Canadian apparel companies, an Experience Survey (conducted through face-to-face interviews with the directors of the AHRC, the Canadian Apparel Federation, Industry Canada, and Canadian retail and apparel supply executives) and from the responses to an online questionnaire sent to Canadian apparel suppliers. The data were subjected to examination using the analytical framework to determine whether the evidence existed on which to base a cluster-based strategic response to competition from overseas apparel suppliers, or whether one of the alternative options might be a more suitable match with the Canadian apparel business environment. Findings – Neither the case studies nor the Experience Survey revealed sufficient evidence of open communication or of cooperation among suppliers in areas that would fortify horizontal clustering amongst apparel SMEs, such as the sharing of labour, market research or supply chain management; similar findings emerged from the online questionnaire sent to Canadian apparel suppliers, which showed little evidence favouring cluster development as a strategic response for the Canadian apparel supply industry. The research also showed that industrialists, experts and government advisors all recognised that, beginning with trade liberalisation in 2005, there had been a transformation of the Canadian apparel industry from a manufacturing to a service industry with the retailers taking much stronger control of the supply chain than before, which, taken together with the lack of open communication or cooperation among apparel suppliers gives rise to conditions which favour collaboration over clustering. Originality/value – The paper provides a firm evidence base upon which to develop a different strategy for Canadian SMEs than the cluster approach that has been proposed to date. The findings reported in this paper show that Canadian apparel industry leaders, government and industry-led support organisations, retailers and suppliers all recognise that the type of open communication or of cooperation among suppliers in areas that would fortify horizontal clustering amongst apparel SMEs, such as the sharing of labour, market research or supply chain management does not occur to a sufficient extent to support the adoption of a cluster strategy by the Canadian apparel sector (although it may be applicable in Quebec). Canadian retailers have now taken the leading role in the supplier/retailer relationship. Any future strategy will need to take account of this repositioning of retailers and be centred upon vertical relationships between individual apparel suppliers and retailers.
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Kataike, Joanita, Lusine H. Aramyan, Oliver Schmidt, Adrienn Molnár, and Xavier Gellynck. "Measuring chain performance beyond supplier–buyer relationships in agri-food chains." Supply Chain Management: An International Journal 24, no. 4 (June 11, 2019): 484–97. http://dx.doi.org/10.1108/scm-03-2018-0097.

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Purpose Measuring chain performance which extends beyond supplier–buyer interface is of paramount importance in tracking and tracing the ineffectiveness and inefficiency of the entire chain. In response to chain inefficiencies, key performance indicators need to be assessed at different chain levels. Knowledge amongst chain members and evident research on the chain members’ assessment of the chain partners’ contribution to their individual chain performance is equivocal. The purpose of this study is to investigate perceived performance contribution of bilateral relationships of each chain member to its chain partners’ performance across the dairy sector. Design/methodology/approach The research was conducted in a dairy agri-food sector in Uganda. A total of 115 triad chains (three matching chain members) were obtained during the period of January to April 2016. Using simple random sampling, the dairy farmers (first suppliers), the cooperative supply managers (second suppliers) and the processors (buyers) were surveyed. Means and standard deviations presented descriptive findings. Furthermore, Kruskal–Wallis and Mann–Whitney U tests were used to assess the differences and similarities of the perceived performance contribution of the individual chain partners. Findings The results revealed that each chain members’ perception of chain performance contribution toward the individual chain performance is relatively high. Further, it was found that there were significant differences between the chain members about the perceived chain performance contributions. However, within the internal chain analysis, no significant differences were observed. Research limitations/implications Although limited to a single agri-food sector within the Ugandan dairy sector, the findings support evidence from similar agri-food chains worldwide. Originality/value Literature shows shortcomings in measuring chain performance at three chain levels. Therefore, this shift from single or dyad to triad chain analysis provides new insights into the field of agri-food chains and supply chain performance in particular. It also provides important empirical results on how each chain member contributes to the chain partners’ performance.
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Siagian, Hotlan, Zeplin Jiwahusada Tarigan, and Han Tae Hee. "The Effect of Top Management Involvement on Supply Chain Risk Management through Buyer-Supplier Relationship." Jurnal Teknik Industri 20, no. 2 (January 12, 2019): 105. http://dx.doi.org/10.9744/jti.20.2.105-112.

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This paper aims to examine the role of the buyer-supplier relationship in improving the impact of top management involvement in the supply chain risk management. The study used 55 export-oriented manufacturing companies domiciled in East Java of Indonesia, and three respondents from top management level represented each company. Of 55, 44 companies have completed the questionnaires which means the response rate of 80%. Data collection used a questionnaire designed with a five-item Likert scale. Data analysis used the partial least square technique with Smart-PLS software version 3.0 to examine the hypotheses. The finding revealed that top management involvement affects supply chain risk management, top management involvement affects the buyer-supplier relationship, and buyer-supplier relationship affects supply chain risk management. The last finding is that buyer-supplier relationship empirically the effect of top management involvement. This paper paves the way for the manager in improving supply chain risk management by practicing top management involvement and development of a relationship with the supplier.
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Clements, Michael Dj, David L. Dean, and David A. Cohen. "Proposing an operational classification scheme for embryonic cooperative relationships." Journal of Management & Organization 13, no. 1 (March 2007): 51–64. http://dx.doi.org/10.5172/jmo.2007.13.1.51.

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AbstractSuccessful buyer/seller relationships have become recognised as essential for firms to remain competitive in the marketplace. Today's business climate encourages firms to not just compete on product or service attributes, but also on their ability to differentiate themselves from other firms. Supply chains provide firms this point of differentiation ensuring firms better competitive positioning as a result of being able to leverage themselves on the strengths of the supply chain, not just on the individual strengths of the firm. However, to maintain an effective role as a participant in a supply chain, firms must be able to develop and maintain cooperative relationships with other firms. In order to develop these relationships, firms need to be able to distinguish between different levels of relationship and be able to understand which relationships are worth developing further and which ones are not.Whilst supply chain literature acknowledges firm progression from transactional to relational exchange, there is less agreement of the number of levels of both buyer/seller relationships in this theoretical continuum. This article proposes a theoretical continuum of relationship levels based on cross discipline literature and identifies objective classification criteria for relationship levels from both the buyer and the seller. Economic, behavioural and relational research is collectively used to explain the complexity of the ever evolving nature of inter-firm relationships. The article concludes by establishing a research model that proposes these levels of relationships are identifiable for both the buyer and the seller.
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Handayani, Dwi Iryaning. "Risk Management Of Supplier-Buyer In Procurement Of Raw Materials For Improving Supply Chain Performance." Jurnal Manajemen 22, no. 3 (October 24, 2018): 293. http://dx.doi.org/10.24912/jm.v22i3.423.

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This study discusses the relationship between Supplier and Buyer related to the procurement of raw materials. In the establishment of Supplier-Buyer relationship, there are considerable risks including coordination problems in supplying, demanding, and disruption of normal activities. Therefore, in overcoming the risks occurring in the Supplier-Buyer, it is necessary to have risk management approach of Supplier-Buyer relationship in Supply Chain activity, to know the occurrence of potential risks for improving Supply Chain performance. This study aims to analysis risk management on Supplier-Buyer relationship for improving company performance by identifying, assessing risks on raw material procurement and evaluating as well as mitigating potential risks that occur to improve Supply Chain performance. The methods of the study are SCOR, FMEA and TOPSIS, and Supplier performance matrix. As the results of SCOR performance, there are two risks of Internal Facing and four risks of Customer Facing. The risks that are categorized as customer facing are supplier risks with Continuity of supply, on time delivery, Knowledge resource and Quality risk categories. While, the Internal facing risks, risks which are associated to buyers including accident and knowledge resource risk categories. The proposed mitigation for improving Supplier performance, a) Coordination with suppliers in the form of sharing information between buyers and suppliers, b) Implementation of Supplier Relationship Management and e-SRM (Electronic-Supplier Relationship Management)
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Yang, Jie, Hongming Xie, Guangsheng Yu, and Mingyu Liu. "Turning responsible purchasing and supply into supply chain responsiveness." Industrial Management & Data Systems 119, no. 9 (October 21, 2019): 1988–2005. http://dx.doi.org/10.1108/imds-01-2019-0029.

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Purpose The purpose of this paper is to investigate whether responsible purchasing (relational commitment and supplier evaluation) and responsible supply (supplier firm information sharing and supplier performance) affect the two factors of supply chain responsiveness including process efficiency and customer knowledge management capability, which, in turn, affect other three factors of supply chain responsiveness, such as dyadic quality performance, innovation capability and buyer‒supplier relationship improvement. Design/methodology/approach This study used questionnaire survey and statistical analytical methods. Employing path analysis, this study tested hypothesized relationships using data collected from manufacturers. Findings The findings of this study support the theorized links. Responsible purchasing and supply enhance supply chain responsiveness, which is reflected through process efficiency, customer knowledge management capability, dyadic quality performance, innovation capability and buyer‒supplier relationship improvement. Originality/value Grounded in the goal interdependence theory, this study investigates the effects of responsible purchasing and supply on supply chain responsiveness in the context of Chinese manufacturers. This study offers managerial implications and theoretical contribution.
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Swierczek, Artur. "Relational orientation of triadic supply chains with structural holes: an empirical comparison of rents derived from bridging the structural holes." Supply Chain Management: An International Journal 25, no. 5 (April 16, 2020): 565–83. http://dx.doi.org/10.1108/scm-10-2019-0382.

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Purpose First, the paper aims to explore the ability of the actor sitting on the structural hole to achieve the additional rent, which is modeled as the outcome of joint effect between the relational performances of two dyads (supplier–buyer and buyer–customer) within the triadic supply chains. Second, the paper seeks to empirically compare the value of additional rent among different structural hole states of triadic supply chains. Design/methodology/approach Building upon the theoretical tenets of social capital theory, complemented by the underpinnings of relational view, this research uses survey data gathered from the triadic supply chains in Europe. To conduct necessary processing, the multivariate statistical analyses have been performed. Findings The findings suggest that the rent is actually yielded by the actors bridging the structural hole in the triadic supply chain; however, its value, as evidenced in the study, is diverse regarding the specific structural hole state. More specifically, the highest value of rent is generated by the buyer establishing cooperative posture of both dyads in the triadic supply chains. The value of rent close to zero is revealed in the triadic supply chains with negative relational posture of both dyads. Interestingly, the lowest level of rent produced by the buyer from bridging the structural hole is reported with the triadic supply chains in which one dyad demonstrates a more cooperative relational posture, whereas the other one indicates an adversarial relational posture. Not only does this result suggest that there is no rent, but it even goes further to indicate a negative return (or loss) derived by the manufacturer in this group of triadic supply chains. Research limitations/implications The study is limited to the relational posture, either strong or weak; therefore, it would be worthwhile to examine a wider spectrum of behaviors, based on the adversarial relationships, deprived of mutual trust, when both actors in a dyad act opportunistically and antagonistically. Moreover, regarding the research method used, the case study is usually deemed to be more appropriate to deeply grasp the complex issues of social behavior. Finally, caution should also be exercised while generalizing the results obtained from the research. Practical implications For practicing supply chain managers, this study points that that it is likely that both actors collaborating with the buyer (the supplier and the customer) also enjoy additional benefits offered by the rent. Importantly for managers, regardless of the effort made by the focal actor, the careless attitude and independence of suppliers and customers may make it hard or even impossible for the buyer to establish triads that include relationships of high quality. Social implications In terms of social implications, this study brings to the fore that not only are the buyers driven by self-interest but they may be also guided by ethical and social rules when interacting with suppliers and customers in their triads. This research evidenced that the buyer in the triadic supply chain can act as the moderator that tends to simultaneously establish a strong relational posture to two other actors in such a way that the joint effect of relational performance generated by both dyads significantly contributes to the higher level of buyer’s individual performance. Originality/value The study investigates whether and how establishing relational posture of two dyads in the triadic supply chains can affect the additional rent for the buyer derived from bridging the structural hole.
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Durach, Christian F., Frank Wiengarten, and Thomas Y. Choi. "Supplier–supplier coopetition and supply chain disruption: first-tier supplier resilience in the tetradic context." International Journal of Operations & Production Management 40, no. 7/8 (July 6, 2020): 1041–65. http://dx.doi.org/10.1108/ijopm-03-2019-0224.

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PurposeThe present study considers disruption in the buyer–supplier–supplier triad. This triad has a common second-tier supplier as the disruption source, which gives us the tetradic context. The goal is to advance the knowledge on how a first-tier supplier's resilience against lower-tier disruptive events can be developed through horizontally connecting with the other first-tier supplier and how the buyer can benefit from its first-tier suppliers' resilience capability.Design/methodology/approachData from 33 triads was collected and analyzed.FindingsAs predicted, coopetition between two first-tier suppliers increases the first-tier supplier's capability to be resilient to disruptive events emanating from a lower tier source. However, contrary to initial theorization, the first-tier supplier's resilience capability affects the buyer's performance during disruptive events negatively. With increasing buyer–supplier social bonds, this negative relationship can partly be alleviated.Research limitations/implicationsAnalyzing resilience within a triad to a disruption in the tetradic context reveals unexpected dynamics. Individual supplier's resilience may have a negative impact on the buyer's resilience in certain disruption events.Practical implicationsThe buyer can increase collective suppliers' resilience through establishing horizontal links. To prevent becoming a victim of the supplier's resilience in the event of a second-tier disruption, a buyer needs to become a member of the supplier's relational network.Originality/valueWe propose that resilience can rest with the suppliers. This observation has implications for the buyer when selecting and coordinating suppliers. Further, it considers a context beyond a triad by venturing into the tetradic context. We anticipate more studies in tetrads in future and this study can serve as a bridge.
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Verville, Jacques, Nazim Taskin, and Sweety Law. "Buyer-supplier relationships in supply chain management: relationship, trust, supplier involvement, and performance." International Journal of Agile Systems and Management 4, no. 3 (2011): 203. http://dx.doi.org/10.1504/ijasm.2011.040515.

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Nassar, Shereen, Tarek Kandil, Merve Er Kara, and Abhijeet Ghadge. "Automotive recall risk: impact of buyer‒supplier relationship on supply chain social sustainability." International Journal of Productivity and Performance Management 69, no. 3 (October 4, 2019): 467–87. http://dx.doi.org/10.1108/ijppm-01-2019-0026.

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Purpose The purpose of this paper is to examine the automotive product recall risk in terms of social sustainability performance and to evaluate the role of buyer‒supplier relationships in improving social sustainability during product recall crises. Design/methodology/approach A multi-methodology approach is used to empirically analyse the interrelationship between the proposed constructs and enablers of the buyer‒supplier relationship. Structural equation modelling and interpretive structural modelling are followed to analyse the data gathered thorough a questionnaire survey of 204 executives and interviews with 15 managers from the automotive industry. Findings The results of the study provide evidence regarding the impact of the responsible buyer‒supplier relationship on customer recall concerns and the social sustainability performance of supply chains (SCs). This study also leads to the development of a conceptual model, providing a relationship between the three key concepts used in this study. Research limitations/implications Following social sustainability principles, this study addresses the importance of developing strong, responsible relational ties with suppliers to reduce vehicle recalls or successfully recover from a product recall crisis. Originality/value This study contributes to the literature by providing theoretical and empirical insights for developing socially responsible SCs and confirming the role of the buyer‒supplier governance mechanism during product recalls in the context of the automotive industry.
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Murfield, Monique Lynn, and Wendy L. Tate. "Buyer and supplier perspectives on environmental initiatives." International Journal of Logistics Management 28, no. 4 (November 13, 2017): 1319–50. http://dx.doi.org/10.1108/ijlm-06-2016-0138.

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Purpose The purpose of this paper is to examine managerial perspectives in both buyer and supplier firms implementing environmental initiatives in their supply chains, and explore the impact of environmental initiatives on buyer-supplier relationships. Design/methodology/approach A qualitative, grounded theory approach is used as the methodological approach to this research, including 15 in-depth interviews with managers from buyer and supplier firms implementing environmental initiatives in their supply chains to gain multiple perspectives of the buyer-supplier relationships. Findings The results suggest that implementing environmental initiatives within the supply chain changes the buyer-supplier relationship from transactional to collaborative, shifting from a commodity-focused purchase to a more strategic purchase as environmental initiatives are implemented. Research limitations/implications Although both buyer and supplier perspectives were considered, matched dyads were not used; researchers should continue to provide a holistic perspective of the phenomenon with dyadic data. Additionally, the use of a qualitative research approach suggests a lack of generalizability of results, and therefore researchers should further test the propositions. Practical implications Implementing environmental initiatives within the supply chain may require different approaches to supply management and development for long-term success. Suppliers should recognize that the capability to implement environmental initiatives with their customers is a differentiator. The nuances involved in managing the implementation of environmental initiatives between firms can be better managed by collaboratively developing metrics specifically related to the environment. Originality/value Previous research in environmental supply chain management has examined drivers and barriers of implementing environmental initiatives with suppliers, but fails to address the relationship dynamics involved when implementing environmental initiatives between organizations. This research begins to fill that gap.
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Oberoi, J. S., and J. S. Khamba. "Strategically managed buyer-supplier relationships across supply chain: An exploratory study." Human Systems Management 24, no. 4 (November 17, 2005): 275–83. http://dx.doi.org/10.3233/hsm-2005-24403.

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The acceleration of change, global economy and the business challenges has made organizations to think and integrate diverse competitive strategies in to the system. There has been an increasing emphasis on buyer-supplier relationships in the academic community and in the international business to improve competitiveness and profitability of organizations by proposing different strategies, organizational structure, system, tools and techniques for how to select the right partner, establish the proper relationship and adapt adequately to the internal and external changes. Moreover, the system has witnessed a transformation in which suppliers and customers are inextricably linked throughout the entire sequence of supply chain. This paper aims to develop the buyer-supplier typology for strategic archetypes of contractual relationships. The typology reflects a buyer perspective ranging from arm's length relationship to strategic partnerships and represents a supplier segmentation tool which helps identify what types of competence and capability relate to each individual sourcing practice. The paper includes the comprehensive study of current state of the art of the survey based empirical research on sourcing practices and supplier selection, as they play a vital role in managing supply chain.
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Patrucco, Andrea S., Davide Luzzini, Antonella Moretto, and Stefano Ronchi. "Attraction in buyer–supplier relationships." Business Process Management Journal 25, no. 2 (April 1, 2019): 347–67. http://dx.doi.org/10.1108/bpmj-06-2017-0137.

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PurposeThe purpose of this paper is to shed light on the dynamics of buyer–supplier industrial relationships and the role of customer attractiveness—a requisite to obtain best efforts from suppliers involved in collaborative initiatives.Design/methodology/approachThe paper develops a theoretical framework tested through an international survey with a structured equation modeling approach.FindingsResults confirm that customer attractiveness positively affects both innovation and cost performance ensured by suppliers. Moreover, several direct and indirect antecedents of customer attractiveness are identified, including characteristics of the buying firm’s procurement department (i.e. procurement knowledge and procurement status) and supply chain relationship characteristics (i.e. proficiency of supplier collaboration and visibility).Research limitations/implicationsBecause of the survey approach, the research results are limited to the data collected.Practical implicationsFindings support the relevance of collaborative relationships in improving performance, and the key role procurement department could play in managing the multifaceted aspects of supplier collaboration.Originality/valueThis paper investigates, on the one hand, why customer attractiveness is relevant for supply chain management, and what are the effects on innovation and cost performance ensured by suppliers; on the other hand, antecedents of customer attractiveness are considered, with a main focus on organizational and relational procurement variables.
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Suh, Chang Juck, and Jong-Hoon Kim. "Buyers’ switching intentions in a manufacturing supply chain: a migration theory perspective." International Journal of Operations & Production Management 38, no. 12 (December 3, 2018): 2246–65. http://dx.doi.org/10.1108/ijopm-02-2017-0118.

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Purpose The purpose of this paper is to identify the negative impact of an incumbent supplier pushing out a buyer, the positive effect of an alternative supplier pulling a buyer, and the mooring impact that prevents a buyer from switching to a supplier in terms of the push-pull-mooring (PPM) model of migration theory. In this context, this study considers a buyer as the immigrant, an incumbent supplier as the origin, an alternative supplier as the destination, and inertia as the hesitance to migrate. Design/methodology/approach This study collected survey data from 148 end-product manufacturers and first-tier suppliers. It tested whether the PPM model fit in a supply chain relationship (SCR) using the partial least squares structural equation modelling approach and SmartPLS package version 2.0.M3. Findings The results support all hypotheses for causal relationships among factors of cognitive, affect, and behavioural intentions of each PPM effect. This study identifies the relative importance of each effect on a buyer’s intention of switching an existing supplier. Originality/value This study presents a new perspective that enhances the understanding of a buyer’s behaviour towards a supplier by applying the PPM model of migration to a manufacturing SCR. It promotes interdisciplinary and integrated views as well as broadens the diversity of the results in the business-to-business context.
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Pu, Xiaodie, Felix T. S. Chan, Zayyad Tsiga, and Ben Niu. "Adoption of internet-enabled supply chain management systems." Industrial Management & Data Systems 118, no. 8 (September 10, 2018): 1695–710. http://dx.doi.org/10.1108/imds-10-2017-0496.

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PurposeBased on the factors derived from the structural embeddedness theory, the purpose of this paper is to investigate the antecedents to the adoption intention for eSCM from two perspectives: buyer and supplier. The six factors examined in this study are product complexity, product specificity, the number of partners, relationship duration, dependence disadvantage and dependence advantage.Design/methodology/approachA questionnaire was designed to collect data from Mainland China with 206 valid data received. Regression analysis was employed to test the hypotheses proposed.FindingsThe differences in the results show that product specificity and dependence disadvantage are significant determinants of eSCM adoption for buyers’ perspective, but not from that of suppliers. In addition, product complexity and dependence advantage (although negatively associated with eSCM adoption) are significant for suppliers, but not for buyers. Number of partners and relationship duration are significant determinants from both perspectives.Originality/valueThis research contributes to understanding on how the factors embedded in an exchange structure influence the adoption of eSCM from the angles of both the buyers and suppliers. We fill the research gap in the existing literature by recognizing the differences in the roles of the buyer and supplier regarding the antecedents to eSCM adoption.
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Biraori Oteki, Evans. "E-Supplier Management Practices on Supply Chain Performance of Sugar Processing Firms in Kenya." International Journal of Managing Value and Supply Chains 12, no. 2 (June 30, 2021): 1–14. http://dx.doi.org/10.5121/ijmvsc.2021.12201.

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The purpose of this study was to establish the influence of electronic supplier management practices on supply chain performance of sugar processing firms. The target population is 7,584 employees of sugar processing firms in Kenya and Yamane Taro’s formula was applied to come up with a sample size of 379 respondents. Data was gathered by a questionnaire, interviews and observation. Correlation was used to determine the relationship between E-supplier management practices and Supply chain performance while regression analysis tested the hypothesis. The study established that E-supplier management practices enhances supply chain performance. Two kinds of supply chain are proposed; Managerial and demand. Managerial supply chain where as a result of electronic supplier management practice, flow of goods and services from the suppliers are properly managed through information sharing between the buyer-seller thus improved deliveries. Demand supply chain where as a result of electronic supplier management practice, buyers and suppliers tend to develop a single shared forecast of demand and a plan of supply in the sense that buyers issue order for only needed materials from the suppliers and that suppliers fulfills the orders as requested by the buyers. To ensure that the proposed supply chain under e-supplier management,it is recommended that Sugar processing firms’ management should ensure working Websites, working internal and external mail and also provide their suppliers with access credentials to company electronic procurement portal to increase buyer and supplier access to information to enhance E-supplier management practices.
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Martins, Ana Lucia, Henrique Duarte, and Daniela Costa. "Buyer–supplier relationships in IT outsourcing: consultants’ perspective." International Journal of Logistics Management 29, no. 4 (November 12, 2018): 1215–36. http://dx.doi.org/10.1108/ijlm-11-2017-0288.

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Purpose Supply chain relationships have often been analysed from the macro-perspective of the companies involved, but there is less evidence of how relationships relate to the micro-perspective of persons involved. The purpose of this paper is to investigate, in IT outsourcing (ITO), how the buyer–supplier relationship type strengthens buyer performance from the perspective of consultants. Design/methodology/approach IT consultants were surveyed, and analysis was performed considering the aggregated values of variables that characterise buyer–supplier relationships adjusted to ITO. Findings The results show that strategic relationships are associated with higher supplier investment in relational management than in transactional ones. Similarly, in this type of relationship, higher levels of trust are linked to the recognition of more activities shared between parties involved than in transactional relationships. The improvement of supplier development by buyers was also found to improve buyers’ performance. Research limitations/implications The model proposed here was developed for nonspecific industries but tested in the context of ITO. Further research should be undertaken to broaden generalisability. Originality/value The paper provides an understanding of the influence of the buyer–supplier relationship type on buyer performance based both on relational management and, more specifically, how the formal dimension of supplier development can also contribute to performance. ITO is increasing worldwide, and relational management affects outsourcing outcomes in broad supply chain integration. This analysis is usually visited from buyer and supplier perspectives using decision makers. This paper assesses it from the perspective of consultants.
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Bag, Surajit. "Big Data and Predictive Analysis is Key to Superior Supply Chain Performance." International Journal of Information Systems and Supply Chain Management 10, no. 2 (April 2017): 66–84. http://dx.doi.org/10.4018/ijisscm.2017040104.

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The study considers samples from the South African engineering companies who are strategic suppliers to mining and minerals industry and further explores the uncertainties persisting in the supply chain network. Further investigation was done to understand the role of big data and predictive analysis (BDPA) in managing the supply uncertainties. The paper finally uses partial least square regression analysis to study the relationship among buyer-supplier relationship, big data and predictive analysis and supply chain performance. The analysis supported the second and third hypothesis. Therefore, it is established that firstly, there is a positive relationship between big data, predictive analysis and supply chain performance and secondly, there is a positive relationship between and big data, predictive analysis and buyer-supplier relationship. The study is a unique contribution to the current literature by shedding light on the practical problems persisting in the South African context.
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Kim, Kyung-Tae, Jung Seung Lee, and Su-Yol Lee. "The effects of supply chain fairness and the buyer’s power sources on the innovation performance of the supplier: a mediating role of social capital accumulation." Journal of Business & Industrial Marketing 32, no. 7 (August 7, 2017): 987–97. http://dx.doi.org/10.1108/jbim-06-2016-0134.

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Purpose This study aims to examine the effects of contractual fairness and power sources on the relationship between the buyer and supplier on the innovation performance of the supplier. The mediating role of social capital accumulation between fairness, power and innovation performance was empirically explored. Design/methodology/approach Hypotheses were developed to investigate the relationships between supply chain fairness, power sources, social capital and innovation performance. Using structural equation modeling, the hypotheses were tested on data of 209 responses collected from supplying firms in South Korea. Findings This study finds that supply chain contractual fairness and referent power use contribute to the innovation performance of the supplier through social capital accumulation between the buyer and supplier. Coercive power, in contrast, impedes the performance improvement of the supplier. Originality/value This study provides supply chain practitioners, academics and policy-makers with guidance on how to facilitate and enhance innovation capabilities and performance across the supply chain. By applying social capital theory, this study also provides theoretical underpinning of the literature on supply chain fairness, power and innovation.
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Xiao, Chengyong, Boyana Petkova, Eric Molleman, and Taco van der Vaart. "Technology uncertainty in supply chains and supplier involvement: the role of resource dependence." Supply Chain Management: An International Journal 24, no. 6 (October 22, 2019): 697–709. http://dx.doi.org/10.1108/scm-10-2017-0334.

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Purpose Technology uncertainty poses significant challenges to manufacturers, as rapid changes in product and/or process standards and specifications can disrupt the smooth flow of materials in extended supply chains. Practitioners and researchers alike who take a relational perspective widely regard supplier involvement as a potentially effective strategy to cope with technology uncertainty, as focal manufacturers can tap into their upstream supply networks for complementary resources and capabilities. However, the literature lacks a nuanced understanding of the supplier involvement processes. Specifically, the role of resource dependence for supplier involvement has yet to be systematically understood. To fill this gap, this study aims to combine the relational perspective with the resource-dependence perspective to explore how buyer dependence, supplier dependence and buyer–supplier interdependence influence buyers’ decision-making on tapping into upstream supply networks for coping with technology uncertainty. Design/methodology/approach To test the hypotheses, a survey is conducted among Dutch firms with more than 50 employees in the discrete manufacturing industries (ISIC 28-35), resulting in a sample of 125 manufacturers. Findings First, there is a significantly positive relationship between technology uncertainty and supplier involvement, giving support to the expectation that buyers are indeed involving their key suppliers in the product/process design and improvement, as a response to technology uncertainty. Second, buyer dependence and interdependence are found to be positively moderating the relationship between technology uncertainty and supplier involvement. In contrast, supplier dependence has a negative moderating effect on the baseline relationship. Research limitations/implications The authors contribute to a relational view on buyer–supplier relationships by showing that the validity of this view, in the context of technology uncertainty, is contingent on the resource dependence between buyers and suppliers, and the authors contribute to the supply chain management literature more generally by combining a relational perspective with a resource-dependence perspective. Practical implications The findings provide several nuanced insights into the effect of resource dependence (buyer dependence, supplier dependence and interdependence) on supplier involvement for coping with technology uncertainty. Originality/value This study contributes to the supply chain management research by going beyond the benefits of supplier involvement and highlights the circumstances under which supplier involvement is likely to occur.
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Butt, Atif Saleem, Syed Hamad Hassan Shah, Saleha Noor, and Muhammad Ali. "Knowledge Hiding in a Buyer-Supplier Relationship." International Journal of Knowledge Management 16, no. 2 (April 2020): 18–29. http://dx.doi.org/10.4018/ijkm.2020040102.

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Knowledge management has been the subject of much research in buyer-supplier relationship literature. Many of these studies outline the benefits attributed to buying and supplying firms as a result of knowledge sharing between its managers. However, it is important to note managers across firms can also deliberately hide knowledge from each other during their business interaction. This study fills this important gap. The analysis of this study is based on a pilot study comprising six semi-structured interviews with the managers of buying and supplying firms. The findings suggest that managers of buying and supplying firms experience five different types of antecedents during their business interaction. This paper provides theoretical contribution to supply chain knowledge management literature by proposing five antecedents of knowledge hiding in a buyer-supplier relationship. The findings of this study also have practical implications. Specifically, firms can use initial findings from this study to understand what compels their management to engage in knowledge hiding.
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Yeh, Ying‐Pin. "Identification of factors affecting continuity of cooperative electronic supply chain relationships: empirical case of the Taiwanese motor industry." Supply Chain Management: An International Journal 10, no. 4 (September 1, 2005): 327–35. http://dx.doi.org/10.1108/13598540510612802.

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PurposeTo explore the factors affecting continuity of cooperative electronic supply chain relationships in Taiwanese motor industry.Design/methodology/approachThis study has developed a research framework that integrates the three perspectives of resource dependence, risk perception, and relationship marketing to identify the factors affecting the continuity of a cooperative electronic supply chain. After constructing a structural equation model, empirical testing on 851 raw material and spare parts suppliers for the Taiwanese motor industry was conducted.FindingsAll path coefficients in the proposed model were statistically significant, and were as hypothesized. Resource dependence, trust, and relationship commitment are positively related to the continuity of the cooperative electronic relationship. Risk perception is negatively related to the continuity of the cooperative electronic relationship.Research limitations/implicationsThis paper has theoretically developed an extensive set of interrelationships among these variables (resource dependency, perceived risk, trust, relationship commitment, and continuity of cooperative electronic relationships), illustrating their comparative effects on supplier intention to use the internet for on‐line transactions.Practical implicationsThis empirical study provides consistent support for the proposed business‐to‐business (B2B) e‐commerce acceptance model. Given the high explanatory power of the resulting model, it is likely to serve as the basic model for predicting supplier behavior, and the continuity of enhanced understanding of cooperative electronic relationships.Originality/valuePrevious studies did not fully address the relevant influential factors related to the continuity of cooperative electronic supply chain relationships or the causal relationships among these factors. The primary contribution of this research is the integration of constructs associated with resources, environmental uncertainty, and relationship marketing, into a coherent model that jointly predicts supplier acceptance of e‐commerce.
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Obayi, Raymond, S. C. Koh, David Oglethorpe, and Seyed M. Ebrahimi. "Improving retail supply flexibility using buyer-supplier relational capabilities." International Journal of Operations & Production Management 37, no. 3 (March 6, 2017): 343–62. http://dx.doi.org/10.1108/ijopm-12-2015-0775.

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Purpose The purpose of this paper is to investigate the mediating role of three important relational capabilities – absorptive capacity (AC), transactive memory systems (TMS), and organisational interoperability (OI); on the flexibility of buyer-supplier relationships and performance in retail supply chains. Drawing on the relational view of strategic management, the impact of relational capabilities on two forms of supply chain flexibility is examined – configuration flexibility (CF) for switching suppliers with minimal penalties, and planning and control flexibility (PCF) for altering supply schedules, quality, and delivery lead-time. Design/methodology/approach Strategic- and tactical-level managers from 211 retail stores in the UK were surveyed. The authors validated a measurement model with structural equation modelling and tested four hypotheses on the mediating role of relational capabilities on supply chain flexibility and retail performance, controlling for size, duration of relationship, and market segment. Findings Results showed that the three relational capabilities partially mediated the positive effect of CF and PCF on operational performance in big middle and niche retailers. Examining the interaction effect of the forms of flexibility on the relational capabilities and performance, the authors found positive interaction effects on TMS and OI but a non-significant effect on AC. Practical implications In addition to providing novel theoretical insights on supply chain flexibility, the findings have practical implications for supplier selection and buyer-supplier relationship management. Originality/value Overall, the study highlights the impacts of relational capabilities on adopted operational strategies such as flexibility, buyer-supplier relationships, and retail performance.
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Ngouapegne, Chriss Narick Mangoukou, and Elizabeth Chinomona. "Modelling The Influence Of The Drivers Of Supply Chain Performance In The Food Retail Industry In South Africa." Journal of Applied Business Research (JABR) 35, no. 2 (March 1, 2019): 43–60. http://dx.doi.org/10.19030/jabr.v35i2.10298.

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The objective of this research is to examine the antecedents of supply chain value in the food trade business in the Gauteng region of South Africa. This study considers three of these drivers, namely buyer-supplier trust, commitment and supply chain relationship durability. A numerical approach was implemented in which a survey questionnaire was used to collect data from 429 managers and staff members from food retailing firms in the Gauteng province. The study used a non-probability convenience sampling technique to select respondents. Information were analysed through two software packages, namely the Statistical Package for the Social Sciences (SPSS version 24.0) and the Analysis of Moment Structures (AMOS version 24.0). The main goal of this research is to see if the data fits the model. A confirmatory factor analysis was applied in examining and testing the relationships between observed constructs and their causal latent constructs while structural equation modelling helped in testing the hypothesised relationships among variables. The results of the investigation made known that buyer and supplier trust, commitment and supply chain relationship endurance absolutely and meaningfully impact supply chain performance. This investigation concludes that to achieve greater supply chain performance, food retailers should expedite the levels of trust, commitment and length of relationships with their providers. The outcomes of this study offer valuable understandings on how companies in the food retail industry could profit from trust, commitment and relationship longevity along with on how to develop supply chain performance. The results of this study add to the current body of knowledge by generating new information on buyer-supplier relationships. Therefore, the study is useful to buyers and suppliers in the food retail industry who wish to enhance supply chain performance and develop better relationships.
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Sehgal., Gaurav. "STRENGTHENING SUPPLY CHAIN MANAGEMENT PRACTICES THROUGH INTEGRATION OF BUYER-SUPPLIER RELATIONSHIP ACROSS SMEs." International Journal of Advanced Research 5, no. 5 (May 31, 2017): 1749–58. http://dx.doi.org/10.21474/ijar01/4305.

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Shoeleh, Razieh, Mehdi Seifbarghy, and Davar Pishva. "Modelling pricing, vertical co-op advertising and quality improvement in a non-cooperative three-echelon supply chain using game theory approach." RAIRO - Operations Research 53, no. 5 (November 2019): 1937–65. http://dx.doi.org/10.1051/ro/2018109.

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Vertical cooperative (co-op) advertising is one of the well-known mechanisms for coordination of supply chains. Vertical co-op advertising is a financial agreement in which a member of the chain pays certain percentage (i.e. cooperation rate) of a subsequent member’s advertisement cost. Since increasing the number of echelons and decision variables in supply chain problems increase the modelling and computational complexity, most researchers study vertical co-op advertising in a two-level supply chain including a manufacturer and a retailer. This paper investigates the problem by considering price and quality levels as additional decision variables in a three-echelon supply chain consisting of one supplier, one manufacturer, and one retailer. The ultimate goal is to show supply chain managers the importance of product quality as well the role of local advertisement in positively influencing market demand on top of the traditional approach of speed and efficiency optimization. Using game theory approach, power of the manufacturer is assumed to be higher than or equal to those of others in the chain. Five different relationships between players are considered in five non-cooperative games (named as G1–G5) and equilibrium solutions are extracted for each. The results show that the manufacturer prefers to play Stackelberg with the retailer and the supplier rather than be in conflict with them in Nash game. Such preference can lead manufacturer towards high quality and cost-efficient product/service via efficient advertisement in our complex network of business firms.
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Pech, Martin, Drahoš Vaněček, and Jaroslava Pražáková. "Complexity, continuity, and strategic management of buyer–supplier relationships from a network perspective." Journal of Entrepreneurship, Management and Innovation 17, no. 3 (2021): 189–226. http://dx.doi.org/10.7341/20211736.

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PURPOSE: Current research seeks to create an economic model that connects strategic management and network theory. However, most theoretical models do not provide empirical evidence of network relationships’ real structure and attributes. The purpose of the paper is to explore the relation between enterprise characteristics and the characteristics of buyer–supplier relationships in supply chain networks. We are specifically interested in business relationships in networks with respect to the various enterprises’ sizes and sectors of industry. The subject of our research was characteristics, such as network relationship complexity, continuity of relationships, and strategic management in networks. The paper summarizes the results of an empirical study on buyer-supplier networks and accentuates the importance of developing and fostering business collaboration for strategic management. METHODOLOGY: We conducted the questionnaire research in 2016–2019 on 360 enterprises from the Czech Republic. We selected the research sample based on the non-probability purposive sampling method. The members of the research team collected data from an online survey and personal visits to enterprises. The statistical analysis of hypotheses is based on the frequency of managers’ answers. To evaluate results, a two-proportion Z-Test is used for comparing different categories of enterprises according to their enterprise size or prevailing sector of the industry. FINDINGS: The main results show that the differences between enterprises involved in the buyer–supplier structures lie mainly in their size. The survey did not identify differences between industry sectors. The findings show that the complexity of networks in the Czech Republic is not high in terms of the number of suppliers or involvement in many supply networks. The continuity of relationships with partners in buyer–supplier networks is relatively long-term oriented. Long-term partnerships reflect the higher quality of relationships and support future integration. However, large enterprises prefer to build contracts for shorter or longer periods. An overall decentralization strategy characterizes the strategic management of buyer–supplier networks. This finding means dividing competencies such as planning, managing, sourcing, decision-making, transporting (delivering) among more enterprises. IMPLICATIONS FOR THEORY AND PRACTICE: The paper provides an insight into understanding how the buyer–supplier network functions. The theory’s implication builds on the connection of supply chain management and strategic management from the network perspective. Supply chain management is viewed as a part of strategic management, and the synthesis of both research areas opens an innovative view to business theory. ORIGINALITY AND VALUE: The paper’s principal value is the connection between contemporary ideas of strategic management and supply chain management. The synthesis of supply chain management and network approach enhances strategic management theory.
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Scuotto, Veronica, Francesco Caputo, Manuel Villasalero, and Manlio Del Giudice. "A multiple buyer – supplier relationship in the context of SMEs’ digital supply chain management." Production Planning & Control 28, no. 16 (October 10, 2017): 1378–88. http://dx.doi.org/10.1080/09537287.2017.1375149.

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Dries, Liesbeth, Matthew Gorton, Vardan Urutyan, and John White. "Supply chain relationships, supplier support programmes and stimulating investment: evidence from the Armenian dairy sector." Supply Chain Management: An International Journal 19, no. 1 (January 7, 2014): 98–107. http://dx.doi.org/10.1108/scm-12-2012-0380.

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Purpose – The purpose of this paper is to evaluate the determinants of supply chain relationships, the provision of supplier support measures and the role that support measures play in stimulating investment by suppliers in emerging economies. Design/methodology/approach – The paper draws on survey evidence for 300 commercial dairy farms in Armenia. The identification of potential determinants of supply chain relationships and support programmes is based on literature on supply chain management and transaction cost economics. Findings – Positive determinants of supplier support programmes are the degree of exclusivity of the buyer-supplier relationship, initial capital of the supplier, co-operation between suppliers, and foreign ownership of the buyer. Support programmes are less likely to be offered in very competitive environments. Support measures such as loans, physical inputs and guaranteed prices facilitate supplier investments. Research limitations/implications – Research is limited to cross-sectional data for a single country and further testing would help assess the generalizability of the findings. Practical implications – The findings highlight the gains that can be made from openness to international firms. The negative competition effect suggests that buyers are constrained in their ability to monitor use of the provided services in an environment where a lot of buyers are competing for the same supply. Improving the enforcement capability of companies under these circumstances is an important challenge for the industry and policy makers. Originality/value – The novelty of the study lies in the investigation of the relationships between the nature of supply chain linkages and suppliers' investments.
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Mellat-Parast, Mahour. "An institutional theory of quality outcomes in strategic supply chain partnership." International Journal of Quality & Reliability Management 32, no. 4 (April 7, 2015): 346–60. http://dx.doi.org/10.1108/ijqrm-09-2012-0133.

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Purpose – The purpose of this paper is to develop a theoretical base for buyer-supplier quality outcomes (in the context of a strategic partnership) from the institutional theory of the firm. It examines quality outcomes within a partnership and demonstrates how the partners’ quality outcomes are related. Design/methodology/approach – The paper examines quality outcomes within a strategic supply chain partnership (buyer-supplier) and demonstrates how the partners’ quality performance are related. Correlation analysis is used to examine the research hypothesis. Findings – Utilizing the institutional theory and stakeholder theory of the firm, it is argued that within a strategic partnership, the quality outcomes of the partners are significantly related. By focusing on a strategic alliance within a strategic group in the US airline industry, it is shown that there is a significant relationship among quality outcomes of the partners within the strategic alliance. Research limitations/implications – The analysis was limited to only one strategic partnership. Future research should examine quality outcomes among multiple strategic partnerships in order to validate the findings of this study. Originality/value – The study discusses the importance of strategic alliances and networks of firms as determinants of firm quality performance.
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Um, Ki-Hyun, and Jae-Young Oh. "The interplay of governance mechanisms in supply chain collaboration and performance in buyer–supplier dyads: substitutes or complements." International Journal of Operations & Production Management 40, no. 4 (April 6, 2020): 415–38. http://dx.doi.org/10.1108/ijopm-07-2019-0507.

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PurposeThis study seeks: (1) to identify whether the form of governance adopted (relational or contractual) drives suppliers' and buyers' collaboration in the same way; (2) to examine if both parties hold a similar view on the simultaneous use of both governance forms; and (3) to explore whether their perceptions on governance, collaboration and performance differ.Design/methodology/approachThe study used data from a survey of 150 matched buyer–supplier dyads from South Korea, using structural equation modeling (SEM) for the analysis.Findings(1) While governance mechanisms assist collaboration and affect operational and innovation outcomes, the significance and relative strength of the proposed relationships are perceived differently by buyers and suppliers. (2) Contrasting results are found regarding the interaction effect of the governance mechanisms on collaboration: a complementary relationship for the buyer and a substitutive relationship for the supplier.Originality/valueStudies on buyer–supplier relationships have yielded inconsistent results regarding whether the interactions of governance mechanisms function as substitutes or complements, because research has largely been conducted from the buyer's perspective, rather than the supplier's; this imbalanced view calls for integrated perspectives.
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Zhang, Chi, Seock-Jin Hong, and Marc Ohana. "Guanxi and supply chain collaboration: an analysis of the Sino-Franco buyer–supplier relationship." Supply Chain Forum: An International Journal 22, no. 2 (March 24, 2021): 157–70. http://dx.doi.org/10.1080/16258312.2021.1902242.

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49

Bondinuba, F., D. Edwards, S. Nimako, S. Onwusu-Manu, and C. Conway. "Antecedents of supplier realation quality in the Ghanaian constrution supply chain." International Journal of Construction Supply Chain Management 6, no. 1 (July 31, 2016): 1–18. http://dx.doi.org/10.14424/ijcscm601016-1-18.

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Effective and efficient management of suppliers within a supply chain is an essential requirement for improving organisational performance within construction companies. However, factors inherent within the supply chain of supplier-buyer exchanges such as culture, politics, dependence and trust may influence supplier relationship quality (SRQ). This research therefore seeks to identify the influence that these factors have upon SRQ in the Ghanaian construction industry and develop a conceptual framework that explains the interconnectivity between them. A literature review is used to develop a conceptual framework of the antecedents influencing supplier relationship quality. Primary ‘perception’ data obtained from 152 building material suppliers is used to test the proposed model using Partial Least Squares (PLS). Findings reveal that culture, politics, dependence and trust have a significant influence on relationship quality in supply chain collaborations amongst purchasers and suppliers of building materials. While politics has a strong influence on dependence, it also generates a negative influence on SRQ and trust. The research confirms the positive effect of trust and dependence in SRQ management and extends understanding of the influence of culture and politics. Practical implications suggest that managers of building material suppliers should focus upon building trust and dependence and be discouraged from over-reliance upon politics and political affiliations as a basis for long-term relationship building.
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Revilla, Elena, and Desirée Knoppen. "Building knowledge integration in buyer-supplier relationships." International Journal of Operations & Production Management 35, no. 10 (October 5, 2015): 1408–36. http://dx.doi.org/10.1108/ijopm-01-2014-0030.

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Purpose – There are two major objectives in the research. First, the authors investigate the impact of knowledge integration in terms of joint decision-making and joint sense-making, on relational performance, including operational efficiency and innovation. Second, the authors examine the key antecedents that might facilitate knowledge integration: strategic supply management and trust. The paper aims to discuss these issues. Design/methodology/approach – This paper expands and tests theory drawing upon survey data from 133 buyer-supplier relationships (BSRs). The authors employed a two-step process of analysis to evaluate first the measurement model and then the structural model. The measurement model test built upon confirmatory factor analysis, while the structural model quality test built upon path analysis. Findings – The results suggest that both integrative mechanisms, joint decision making and joint sense making, affect performance although in different ways. This study also finds that while trust has multiple significant influences and consequently must be viewed as an organizing principle, strategic supply management is required to jointly understand the dynamic and complex context but not to jointly make ongoing decisions. Research limitations/implications – Three limitations: first, this study was cross-sectional rather than longitudinal. Second, in line with accepted practice, the authors surveyed only one side of the relationship. The suppliers’ viewpoint is thus not fully taken into account. Third, another potential limitation of the study is that the sample stems from just one country and its size does not distinguish subgroups in the analysis of the path model. Practical implications – Managers should be advised that: first, a trusting partnership built on knowledge integration is a hard order, especially with a new, unknown supplier in a low-cost country, where intellectual property protection is less obvious; second, strategic supply management may not improve cost or operational performance, but in its absence, it is unlikely that a supplier has insight into the exact needs of its buyer and thus, may not add considerable value to their customers; third, building a dynamic knowledge integration capability (valuable, rare, and difficult to imitate) takes time, as does creating reliable learning mechanisms. Joint teams, visit partners’ workplace, early involve suppliers in developing new products or selection of supplier with high-learning capabilities may help to create a knowledge integration capability. Social implications – The authors suggest that companies should move from an arm-length relationship and turn their supplier relationships into a tool for innovating faster while cutting cost. In order to do this, joint sense-making and joint decision should be seen as institutionalized inter-firm routines rather than ad hoc activities. Thus, the authors recommend managers to proactively build certain knowledge-based capabilities that hinges heavily upon a strategic stance toward supply management and trustful relationships with selected suppliers. Originality/value – The major intent of this research is to expand understanding of knowledge integration by building a more testable, complex model around its creation. While previous research relied on a configuration approach to explore the relationship between knowledge integration and performance, the authors evaluate causal relationships at the level of the formative dimensions rather than higher order knowledge integration, as this has proven to be a superior analytical method. Second, although supply chain scholars have expressed great interest in trust, an in-depth examination of prior studies in knowledge integration indicate that trust has been analyzed alone. In contrast, the study empirically examines the simultaneous effect of trust and strategic supply management in BSRs.
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