The moderating effect of buyer purchasing strategy on the relationship between supplier transaction-specific investment and supplier firm performance

Yoon, Jeomhong; Moon, Junyean

doi:10.1016/j.jbusres.2017.08.022

Cited by 31 publications

(29 citation statements)

References 33 publications

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“…Commitment likewise is central to the relational exchanges between firms and their targets and helps to reduce risks, enhance stability and suppress opportunism in relationships (Anderson and Weitz, 1992). As indicators of successful business relationships, trust and commitment serve as social bonds that facilitate value creation and resource exchange between partners and provide relational niches for gaining competitive advantages (Holm et al , 1999; Yoon and Moon, 2017).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Business model innovation and growth of manufacturing SMEs: a social exchange perspective

Chen

Liu

Wang

2020

JMTM

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PurposeThis study investigates business model innovation in small- and medium-sized manufacturing enterprises (SMEs) and its impact on firm growth.Design/methodology/approachThe study was based on analyzing data collected through a questionnaire survey. Structural equation modeling was applied to test the hypotheses.FindingsBusiness model innovation has a positive effect on SME growth in the manufacturing sectors. Moreover, growth is also achieved through the indirect effect of business model innovation on customer trust and commitment.Practical implicationsManagers will benefit from understanding how business model innovation can help their companies to overcome resource constraints and achieve sustained growth. When manufacturing SMEs engage in modular or structural changes to their business model, they may find it worthwhile to focus on maintaining a relationship of trust and commitment with their customers.Originality/valueThis study highlights business model innovation as a unique and important, yet underexplored, factor in manufacturing SME growth. The findings also untangle the complex processes of customer relationship management by which business model innovation improves manufacturing competitive advantage for SMEs.

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Section: Theoretical Backgroundmentioning

confidence: 99%

Business model innovation and growth of manufacturing SMEs: a social exchange perspective

Chen

Liu

Wang

2020

JMTM

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“…Therefore, strategic purchasing can enhance corporate performance through the application of knowledge and skills. Buyer companies try to achieve purchasing performance in cost, quality, and timely product delivery through their networks and good relationships with other companies (Yoon and Moon, 2019). Hence we propose the following hypothesis: H6 :Strategic purchasing plays a significant role in mediating the relationship between purchasing skills and corporate performance.…”

Section: Purchasing Skills Strategic Purchasing and Corporate Performancementioning

confidence: 99%

“…There are two types of strategic purchasing namely (1) tendering processes, which could help to obtain cheap, quality, quick and reliable product delivery; and (2) focusing company procurement from suppliers with whom the corporate has good partner relationships (Ahola et al, 2008). Yoon and Moon (2019) state that purchasing companies need to increase the number of supplying companies to simulate competition among them, which helps to obtain cheap and quality products (type 1). Type 2 is done through establishing long term mutual partnerships with a supplying company in order to reduce transaction costs, and enhance synergetic work via long term collaboration.…”

Section: Strategic Purchasingmentioning

confidence: 99%

The Mediation Effects of Purchasing Strategy and Supplier Integration on the Relations Between Purchasing Skills and Corporate Performance

Belo¹,

Belo²,

Amaral³

2020

tljbm

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The objectives of this study are to: 1) test the influence of purchasing skills on corporate performance; 2) test mediation effect of strategic purchasing on the relationship between purchasing skills and corporate performance; and 3) test the mediation effect of supplier integration on the relationship between purchasing strategy and corporate performance. This research carried out in 105 restaurants as micro and small enterprises (MSEs) in Dili, and questionnaires were used to collect data. SMART-PLS 3.0 was used to test hypothesis. The findings revealed that purchasing skills had no significant impacts on corporate performance, while supplier integration fully mediated the relationship between purchasing strategy and corporate performance. By contrast, strategic purchasing has no significant impact on the relationship between purchasing skills and corporate performance. This research extends the empirical works of Carr and Smeltzser (2000), Carr and Pearson (2002) and Cho et al. (2019) by using a combined strategic purchasing and supplier integration as mediation variables to enhance the relations between purchasing skills and corporate performance. This study also contributes to the debate on firm’s resources and capabilities and their impacts on competitive advantages and firm performance in emerging countries. The study practically contributes to the restaurant regulators and managers which aim to enhance corporate performance by using supplier integration and strategic purchasing.

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“…Moreover, without the assurance of a long-term contract, a supplier is unlikely to make investments that would reduce the cost for one particular buyer and would constitute an unacceptable risk (Terpend and Krause, 2015). The influence of buyer commitment on supplier firm performance depends on which buyer cost reduction strategy is used (Yoon and Moon, 2017). Studies show that shared problem-solving with suppliers harms profitability and flexibility but does not significantly affect financial performance (Brito et al, 2014), and social interaction ties do not directly influence cost reduction (Carey et al, 2011).…”

Section: Collaboration Performancementioning

confidence: 99%

An analysis of factors affecting the performance of supplier SMEs

GERCANS¹,

BABRIS²

2021

JBM

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Purpose. While the performance of each company is still an important factor in gaining a competitive advantage, in an open economy, the performance of an entire supply chain becomes a crucial factor in the competitiveness of many interconnected companies. In this study, factors that might influence the performance of small and medium-sized enterprises (SMEs) that provide production services for the contracting company are analysed. Methodology. In this study, the performance data of harvesting (n=46), timber transportation (n=23), and chipping (n=3) service suppliers in the supply chain of JSC Latvia’s State Forests (LVM) are analysed. Based on the supplier’s performance data, a group of experts, including two executive directors and five process managers, defined the problems and their root causes. The Ishikawa diagram and 5Why method were used. The root causes were redefined as hypotheses and regrouped into three groups: 1) workforce factors; 2) managerial factors; 3) contract-term factors. Hypotheses were verified by conducting a survey of suppliers’ employees (n=594) and executives (n=59). Findings. It was found that employees’ dissatisfaction with shift work and salaries which do not correspond to work responsibilities, along with suppliers’ disregard of the evaluation of employees’ skills, complicated work requirements, the lack of training for employees, and the direct manager’s insufficient knowledge about the skills needed for employees are the factors that significantly influence voluntary labour turnover and might lead to the leakage of skilled employees from suppliers, causing a performance decline. Meanwhile, there is no significant difference between high and low-performing supplier groups in terms of managerial knowledge, while a limited contract duration does not undermine low-performance suppliers’ efforts to improve performance. Value. In this study, factors that might cause performance problems for supplier SMEs are analysed. In the existing literature, it has been found that voluntary labour turnover might negatively influence the performance of a company (McElroy and Morrow, 2001; Brown et al., 2009; Eady and Nicholls, 2011). This study attempted to assess factors causing voluntary labour turnover among other factors. The main contribution of this study is to the literature regarding voluntar labour turnover, supplementing the factors that might cause it. Keywords: suppliers’ performance, root cause, voluntary labour turnover, SMEs Paper category: research paper

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The moderating effect of buyer purchasing strategy on the relationship between supplier transaction-specific investment and supplier firm performance

Cited by 31 publications

References 33 publications

Business model innovation and growth of manufacturing SMEs: a social exchange perspective

Business model innovation and growth of manufacturing SMEs: a social exchange perspective

The Mediation Effects of Purchasing Strategy and Supplier Integration on the Relations Between Purchasing Skills and Corporate Performance

An analysis of factors affecting the performance of supplier SMEs

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