Chad W. Autry; Susan L. Golicic

Abstract Interorganizational relationships and their impact on firm performance have been studied at length in various business literatures, with many studies predicting that in dyadic exchange contexts strong relationships should lead to better performance for both parties involved. However, some studies reverse this causal ordering, arguing that the... [view more]

Abstract

Interorganizational relationships and their impact on firm performance have been studied at length in various business literatures, with many studies predicting that in dyadic exchange contexts strong relationships should lead to better performance for both parties involved. However, some studies reverse this causal ordering, arguing that the performance gains attributed to prior relational activity predict the strength of the dyadic relationship in future time periods. While supported, both of these perspectives on relationship strength/performance dynamics are incomplete, as the research studies are only cross-sectional snapshots of the phenomenon. We remedy this gap in the existing literature by examining the dynamic cyclical linkage between relationship strength and performance of a buyer–supplier relationship in a longitudinal setting, using a relationship strength–performance spiral model. Results of testing a multiyear sample of 323 buyer–supplier relationships in the construction industry indicate not only that relationships tend to spiral positively following relationship initiation, but also that positive relationship spirals will self-correct following multiple associations of alternating increases. These findings advance theory on buyer–supplier relationships, and provide insight for companies looking to improve supply chain outcomes through superior relationship management.

Gilbert N. Nyaga; Judith M. Whipple; Daniel F. Lynch

Abstract Firms are building collaborative relationships with their supply chain partners in order to achieve efficiencies, flexibility, and sustainable competitive advantage. However, it is unclear if collaborative relationships provide benefits that compensate for the additional expense associated with such relationships. Further, it is unclear what factors promote... [view more]

Abstract

Firms are building collaborative relationships with their supply chain partners in order to achieve efficiencies, flexibility, and sustainable competitive advantage. However, it is unclear if collaborative relationships provide benefits that compensate for the additional expense associated with such relationships. Further, it is unclear what factors promote successful collaborations. This research examines collaborative relationships in two separate studies using structural equation modeling: one study examines buyers’ perceptions and the second study examines suppliers’ perceptions. The two studies are then compared using invariance testing in order to determine economic and relational factors that drive satisfaction and performance from each party's perspective. Results show that collaborative activities, such as information sharing, joint relationship effort, and dedicated investments lead to trust and commitment. Trust and commitment, in turn, lead to improved satisfaction and performance. Results from the two independent studies exhibit similarities and differences; while the conceptual model is highly similar, certain paths vary in their significance and/or their importance across buyer and supplier firms such that buyers focus more on relationship outcomes while suppliers look to safeguard their transaction specific investments through information sharing and joint relationship effort. Managerial and theoretical implications of the findings are discussed.

Zhaohui Wu; Thomas Y. Choi; M. Johnny Rungtusanatham

Abstract A growing number of studies and evidence from industries suggest that, besides managing the relationship with its suppliers, a buyer needs to proactively manage the relationships between those suppliers. In a buyer–supplier–supplier relationship triad, the buyer, as the contracting entity, influences the suppliers’ ... [view more]

Abstract

A growing number of studies and evidence from industries suggest that, besides managing the relationship with its suppliers, a buyer needs to proactively manage the relationships between those suppliers. In a buyer–supplier–supplier relationship triad, the buyer, as the contracting entity, influences the suppliers’ behaviors and the relationship between them. By considering the relationships in such a triad, we are able to gain a richer and more realistic perspective of buyer–supplier relationships. In this study, our goal is to examine supplier–supplier relationships in buyer–supplier–supplier triads, focusing on how such relationships impact the supplier performance. We frame the supplier–supplier relationship as co-opetition—one in which competing suppliers work together to meet the buyer's requirements. We investigate the role of the buyer on such relationships, and how the buyer and co-opetitive supplier–supplier relationships affect supplier performance. We find mixed empirical support for our hypotheses. However, we are able to demonstrate the dynamics of supplier–supplier co-opetition in the buyer–supplier–supplier triad. We point out the need for further studies in this area.

James R. Kroes; Soumen Ghosh

Abstract The growth of outsourcing has led outsourcing strategies to become an increasingly important component of firm success (Gottfredson et al., 2005). While the purported goal of outsourcing in supply chains is to derive a competitive advantage, it is not clear whether the outsourcing decisions of firms... [view more]

Abstract

The growth of outsourcing has led outsourcing strategies to become an increasingly important component of firm success (Gottfredson et al., 2005). While the purported goal of outsourcing in supply chains is to derive a competitive advantage, it is not clear whether the outsourcing decisions of firms are always strategically aligned with their overall competitive strategy. In this paper we evaluate the degree of congruence (fit or alignment) between a firm's outsourcing drivers and its competitive priorities and assess the impact of congruence on both supply chain performance and business performance, using empirical data collected from manufacturing business units operating in the United States. We find outsourcing congruence across all five competitive priorities to be positively and significantly related to supply chain performance. We also find the level of supply chain performance in a firm to be positively and significantly associated with the firm's business performance.

Gregory R. Heim; David Xiaosong Peng

Abstract Firms have been investing millions of dollars on information technology (IT) in their manufacturing plants. However, the research literature is unclear about the extent and scope of the impact of IT use on plant operations. This study examines the impact of IT use on the structure,... [view more]

Abstract

Firms have been investing millions of dollars on information technology (IT) in their manufacturing plants. However, the research literature is unclear about the extent and scope of the impact of IT use on plant operations. This study examines the impact of IT use on the structure, practices, and performance of manufacturing plants. Drawing on information systems and operations management literature, the study differentiates between plant IT use (i) at the process level, (ii) due to internal process integration, and (iii) due to customer and supplier collaboration, labeled as process intelligence, integration intelligence, and collaboration intelligence, respectively. The study also accounts for intelligence gathering due to statistical process control (SPC) practices. The proposed impacts of IT use are examined using data from a study sample of manufacturing plants from electronics, machinery and transportation component industries. Overall, the evidence suggests that SPC has a broader and more significant impact on many aspects of plant operations than the individual dimensions of IT use. However, the three dimensions of IT use do exhibit distinct effects on plant structure, practices, and performance. Process intelligence tends to be associated with plant size and productivity, while integration intelligence and collaboration intelligence tend to be associated with work practices related to increased organizational decentralization and a flexible technology focus.

Joseph Sarkis; Pilar Gonzalez-Torre; Belarmino Adenso-Diaz

Abstract The influence of stakeholder pressure on the adoption of environmental practices has been established in the literature. In this paper we posit that these direct effects are further mediated, causally, by the level of training in companies. Theoretically, this relationship is supported by the relationship between ... [view more]

Abstract

The influence of stakeholder pressure on the adoption of environmental practices has been established in the literature. In this paper we posit that these direct effects are further mediated, causally, by the level of training in companies. Theoretically, this relationship is supported by the relationship between institutional theory (stakeholder pressure) and the dimensions of dynamic capabilities in resource-based theory. We investigate this relationship within the Spanish automotive industry. The theoretical contribution of this paper focuses on further supporting the relationship between stakeholder and resource-based theory as complementary theoretical frameworks. The practical implications focus on whether or not training should be integrated in order to help in the adoption of particular environmental practices, which in this study are represented by environmentally oriented reverse logistics practices.