Supplier value creation configurations in high-cost countries

Abstract

Purpose This paper aims to explore value creation configurations pursued by suppliers in high-cost countries. The proposed value creation configuration approaches are seen as means for supplier firms to strengthen their competitiveness when faced with increasing global sourcing. Design/methodology/approach Survey data on supplier firms in Denmark are used in a hierarchical cluster analysis. The identified clusters are interpreted as expressions of different value creation configurations pursued by suppliers with regards to relations with their most important customers. Findings Three types of suppliers are identified: detached suppliers, which seek to create customer net benefits through low costs; technology-focused suppliers, which design value creation around benefits linked to being at the technological forefront; and integrated suppliers, which share characteristics with technology-focused suppliers, but also align closely with a relatively broader range of customer activities. Research limitations/implications Limitations include the specificity of findings from one small, open economy with an extensive supplier base. Practical implications For managers in supplier companies, the research suggest value configurations can be used as strategic templates for further specialization and as way to assess and address value creation potential in customer firms. Originality/value Previous studies tend to overlook suppliers’ developments of value-creating activities to maintain customer relationships. The paper takes a supplier perspective to deepen the empirically based understanding of value creation configurations followed by high-cost country suppliers in the context of increasing global competition and production relocation. Theoretical implications as well as lessons formanagers in supplier firms of the identification of the different approaches to value creation configurations are presented.

Back-shoring vs near-shoring: a comparative exploratory study in the footwear industry

“… The International Journal of Logistic Management X 2018 Sirilertsuwan, P., Ekwall, D., Hjelmgren, D. International Journal of Logistics Management X 2018 Stentoft, J., Mikkelsen, O.S., Jensen, J.K., Rajkumar, C. International Journal of Production Economics X 2018 Talamo, G., Sabatino, M. Contemporary Economics 2018 Theyel, G., Hofman, K., Gregory, M. Economic Development Quarterly X 2018 Vanchan, V., Mulhall, R., Bryson, J. Growth and Change X 2018 Yu, U.-J., Kim, J.-H. Journal of Fashion Marketing and Management X 2019 Ancarani, A., Di Mauro, C., Mascali, F. Journal of World Business X 2019 Andersen, P.H., Drejer, I., Østergaard, C.R., Søberg, P.V., and Wæhrens, B.V. Journal of Global Operations and Strategic Sourcing 2019 Barbieri, P., Elia, S., Fratocchi, L., Golini, R. Journal of Purchasing and Supply Management X 2019 Ciabuschi, F., Lindahl, O., Barbieri, P., Fratocchi, L. European Business Review X 2019a Dachs, B., Kinkel, S., Jäger, A. Journal of World Business X 2019b Dachs, B., Kinkel, S., Jäger, A., Palčič, I.…”

Exploring Data Integrity of Dual-Channel Supply Chain Using Blockchain Technology

“…Consumers purchase products in only one channel during a sales cycle. Hypothesis 2: here, only the production cost of the supplier is considered, other costs are temporarily excluded, and it is assumed that the product has no residual value [ 26 ]. Hypothesis 3: under rational and risky circumstances, retailers and suppliers make decisions to maximize their interests.…”

“…Hypothesis 2: here, only the production cost of the supplier is considered, other costs are temporarily excluded, and it is assumed that the product has no residual value [ 26 ].…”

Managing supplier capabilities for buyer innovation performancein e-business

“…As a part of service-based supply chains, e-business processes are currently supporting collaboration activities and generating possibilities for economic payoffs by helping to overcome boundaries in supply chains through the use of organizational resources and capabilities (Xue et al , 2013; Zhang et al , 2016; Zhu et al , 2020). This refers to the management of buyer-supplier relationships and is an important operative process for building tighter relations with central suppliers for the purpose of value creation (Andersen et al , 2019; Autry and Golicic, 2010; Lambert and Schwieterman, 2012). The focus on these relationships is why the effectiveness of different information technologies and digital solutions for managing supply chains and value creation is receiving increasing interest from practitioners and academic researchers (Andersen et al , 2019; Setia et al , 2013; Xue et al , 2013).…”

“…This refers to the management of buyer-supplier relationships and is an important operative process for building tighter relations with central suppliers for the purpose of value creation (Andersen et al , 2019; Autry and Golicic, 2010; Lambert and Schwieterman, 2012). The focus on these relationships is why the effectiveness of different information technologies and digital solutions for managing supply chains and value creation is receiving increasing interest from practitioners and academic researchers (Andersen et al , 2019; Setia et al , 2013; Xue et al , 2013).…”