Three strategies for engaging a buyer in supplier development efforts

Golmohammadi, Amirmohsen; Taghavi, Majid; Farivar, Samira; Azad, Nader

doi:10.1016/j.ijpe.2018.09.015

Cited by 12 publications

(5 citation statements)

References 72 publications

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“…Until now, we have discussed the results from the buyer’s perspective. However, based on Golmohammadi et al. (2018), we also propose considering the issue from the supplier’s approach.…”

Section: Discussionmentioning

confidence: 99%

“…Until now, we have discussed the results from the buyer's perspective. However, based on Golmohammadi et al (2018), we also propose considering the issue from the supplier's approach. We believe that key account managers of suppliers may also use the findings and leverage them to facilitate their relationship with buyers for future collaborations.…”

Section: Jmtm 337mentioning

confidence: 99%

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Leveraging the potential of a technologically heterogeneous suppliers – a dynamic approach

Gelei

Kenesei

2022

JMTM

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PurposeIn today’s turbulent environment, it is important that companies effectively leverage resources available both in-house and in their interorganizational ties. The purpose of this study is to focus on technology as a key resource and aims to analyse contextual factors of the relationship between the technological heterogeneity of suppliers and the buyer firm’s short- and long-term performance in a dynamic approach.Design/methodology/approachThis paper applies a mixed-method approach. The theoretical model has been developed based on extant literature, validated by a workshop with practitioners, and tested using structural equation modelling on a sample of 157 companies.FindingsSuppliers’ technological heterogeneity has a significant positive effect on both the buyer’s actual business performance and its research and development capability. Business performance captures the short term, while the long-term performance implications of heterogeneity are understood as a precondition for future, technology-based competitiveness. The results show that both short- and long-term consequences are mediated by the buyer’s supply chain management efforts (SCMEs), while the relationship between technological heterogeneity and these efforts is moderated by the buyer’s networking capability (NC).Research limitations/implicationsThis study provides the first evidence of potential long-term positive performance consequences of technologically heterogeneous suppliers. Additionally, it develops new insights into how the internal abilities of the focal firm might facilitate or hinder the positive implications of such heterogeneity. Specifically, the role of the buyer’s SCMEs and its NC is analysed. Industry-specific analyses offer new opportunities for future scholarship and future studies could extend research with other contextual factors.Practical implicationsManagers at different levels of the buyer firm should be aware of the organizational capabilities through which they can leverage the potential embedded in technologically heterogeneous suppliers. The results contribute to this understanding, which is especially important when a change in the environment (and the consequent changes in the level of technological heterogeneity) is constant.Originality/valueThis paper reflects on an important critique of the extant literature by applying a dynamic approach. Dynamization is twofold. Firstly, this study does not limit empirical analysis to short-term performance consequences. Secondly, this study discusses contextual factors that capture some aspects of the buyer’s ability to dynamically adapt to the changing environment. SCMEs align the supply chain of the buyer along customer requirements that change over time, while the NC is responsible for the ongoing reconfiguration of the supplier’s base.

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Section: Discussionmentioning

confidence: 99%

Section: Jmtm 337mentioning

confidence: 99%

Leveraging the potential of a technologically heterogeneous suppliers – a dynamic approach

Gelei

Kenesei

2022

JMTM

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“…This process enables both parties to benefit from each other and improve supply chain performance by building stable and long-term relationships (Busse et al, 2016). Supplier development enables buyers to continuously receive valuable products and services from suppliers and effectively conduct time-based strategies, such as just-in-time, flexibility, and inventory management (Golmohammadi et al, 2018). Accordingly, supplier development can be defined as “buyer’s activities for upgrading and continuously improving supplier technology, quality, delivery and price competitiveness in outsourcing transactions” (Lee et al, 2018).…”

Section: Theoretical Background and Hypotheses Developmentmentioning

confidence: 99%

Matching Task Complexity With Supplier Management to Enhance Outsourcing Performance

Lee

2022

SAGE Open

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As organizations search for low-cost and complementary resources and capabilities from external partners, the development of strategic outsourcing becomes an increasingly complex task. Without having well-developed outsourcing processes and task complexity management capabilities in place, opportunities for improvement of outsourcing practices are largely unrealized. This study aims to investigate the influence of task complexity on outsourcing practices and explore the appropriate supplier management approaches for managing outsourcing task complexity. This study suggests a research model that addresses the moderating roles of supplier governance and supplier development in the relationship between task complexity and outsourcing performance. We collected data from Chinese manufacturing firms to test the proposed hypotheses. The results of this study reveal that: (1) task complexity negatively relates to outsourcing performance; (2) both contractual and relational governance play an important role in weakening the negative effect of task complexity on outsourcing performance; (3) supplier development also weakens the negative effect of task complexity on outsourcing performance. The findings of this study provide valuable insights into the ways that firms operating in China manage task complexity effectively and achieve desired outsourcing performance.

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“…The problem mentioned here actually refers to the arguments in a supply chain on the issues like corporate social responsibility [30], additional stakeholder requirements [31], and demand information asymmetry [32], between two sides [6], or among three sides [7], or even among multiple sides [8]. There have been a lot of research done about how to process a problem, which we call the problem processing mechanism, especially for M-S collaborative supply chain, such as information sharing integration regarding supplier delivery performance [13], supplier quality integration regarding mass customization and product modularity [14], performance-based contract regarding customer expectations to get both the supplier and the original equipment manufacturer profited [15], and so on.…”

Section: Problem Processing Mechanism In M-s Collaborative Supply Chainmentioning

confidence: 99%

“…A principle called "main manufacturer-supplier" mode, which is abbreviated as M-S, has been widely used in the R&D of numerous complex products, such as big passenger aircraft [5]. With regards to complex products' characteristics, like complex product structure, complex production technology, complex manufacturing activities, and complex management process, M-S mode requires that complex products must be manufactured through collaborative production of multiple enterprises [6][7][8]. In M-S mode, the manufacturer and its suppliers have to work cooperatively in the R&D of the products, work together when problems arise in the production process, and share the risk [9].…”

Section: Introductionmentioning

confidence: 99%

Evolutionary Game Analysis of the Effects of Problem Size and the Problem Proposing Mechanism on the Problem Processing Mechanism in a New Main Manufacturer–Supplier Collaborative System

et al. 2019

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This paper analyzed the effects of the problem size and the problem proposing mechanism on the decision-making processes, for the manufacturer and the supplier, regarding processing a problem in a new main manufacturer–supplier collaborative system using evolutionary game theory. Unpredicted problems may arise in the process of collaborative research and development (R&D) of complex products, like big passenger aircrafts, without any relative advanced contract, and either player will take risks to announce it. In addition to the factors of traditional cost and income, we take another two factors (i.e., the problem size and the problem proposing mechanism) into account in the examination of the problem processing mechanism. With evolutionary game theory applied, we can obtain the stable decision-making states of both players and how these two factors affect the problem processing mechanism. From the result, we find that the problem size has little effect on the two players’ decisions, while the problem processing mechanism has an impact when the experiences or the capacities of the manufacturer and the supplier are unbalanced. This paper contributes to manufacturer and supplier in a newly-established collaborative system to consider how to behave when unpredicted problems come.

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Three strategies for engaging a buyer in supplier development efforts

Cited by 12 publications

References 72 publications

Leveraging the potential of a technologically heterogeneous suppliers – a dynamic approach

Leveraging the potential of a technologically heterogeneous suppliers – a dynamic approach

Matching Task Complexity With Supplier Management to Enhance Outsourcing Performance

Evolutionary Game Analysis of the Effects of Problem Size and the Problem Proposing Mechanism on the Problem Processing Mechanism in a New Main Manufacturer–Supplier Collaborative System

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