The relational outcomes of performance management in buyer-supplier relationships

This chapter begins with the observation that a supplier is embedded not only within the dyad (i.e., the buyer) but also within its own extended ties (i.e., its suppliers). Looking at the buyer–supplier relationships via the lens of embeddedness allows us to consider the duality of relational outcomes—the primary outcome contained in the dyad and the incidental outcome on the supplier’s part. The chapter conceptualizes dyadic embeddedness in the buyer–supplier context and demonstrates how that dyadic embeddedness is accountable for the diverse relational outcomes and helps resolve some puzzling observations that have been made in the literature. How a supplier relates to its buyer in the dyad constrains how it perceives and behaves outside the dyad, which in turn would have spillover effect on the buyer–supplier dyad. As such, taking the embeddedness view broadens our understanding of the dynamics of buyer–supplier relationships.

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Don’t you (forget about me)

European Journal of Marketing ◽

10.1108/ejm-05-2018-0324 ◽

2020 ◽

Vol 54 (4) ◽

pp. 761-790

Author(s):

Ce (Jacky) Mo ◽

Ting Yu ◽

Ko de Ruyter

Keyword(s):

Empirical Studies ◽

Distribution Channel ◽

Marketing Channel ◽

Negative Consequences ◽

Channel Networks ◽

Supplier Relationships ◽

Content Type ◽

Relational Outcomes ◽

New Research ◽

The Impact

Purpose To advance research on channel relationship management, this study aims to test for the impacts of a channel member’s perception of exclusion from a supplier’s distribution channel networks (i.e. out-of-the-channel-loop perceptions [OCLP]) on supplier–channel partner relationships. The authors also systematically develop and empirically validate a scale to measure OCLP. Design/methodology/approach This paper reports two empirical studies. The first develops a new scale for OCLP, following established approaches. The second tests the hypotheses. Survey data from a sample of channel firms operating in four industries were subjected to partial least squares modelling in the test of the hypothesized main and moderating effects. Findings The authors developed the new scale, including eight items, that capture OCLP from both social and economic perspectives. The results also show that OCLP has negative impacts on channel members’ psychological and behavioural outcomes (satisfaction, information sharing, positive word of mouth), after controlling for the effect of perceived unfairness. Channel partner perceived peer support emerges as a boundary condition of the impact; perceived informational support attenuates, whereas emotional support amplifies, the impact of OCLP. Research limitations/implications This study suggests new research opportunities for explaining business-to-business marketing relationships using newly conceptualized OCLP. Practical implications This study highlights that suppliers must recognize the potential for negative consequences of OCLP and manage these perceptions to minimize the negative implications. For suppliers, this study also offers several tools for managing OCLP. Originality/value This study introduces ostracism concepts to marketing channel literature to study a potential detriment to channel relationships. The proposed scale captures channel partners’ sense of exclusion from supplier relationships. It provides initial insights into the direct impacts on channel relational outcomes and associated boundary conditions.

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The impact of supplier relationships on supply chain performance of trade companies in Bosnia and Herzegovina

Management Journal of Contemporary Management Issues ◽

10.30924/mjcmi.26.2.1 ◽

2021 ◽

Vol 26 (2) ◽

pp. 1-21

Author(s):

Safet Kozarević ◽

Šejla Kovačević

Keyword(s):

Supply Chain ◽

Performance Management ◽

Bosnia And Herzegovina ◽

Information Exchange ◽

Academic Research ◽

Primary Data ◽

Supply Chain Performance ◽

Supplier Relationships ◽

Performance Dimensions ◽

The Impact

The need for companies' interconnection and advantages of mutual business cooperation led to the development of supply chain management in the 1980s. Along with the intensified market globalization process, companies have become aware of the need to develop efficient supply chains. A supply chain includes a series of activities from planning and organizing to controlling the flow of material and services from suppliers to the final customer. The supply chain effectiveness depends to a large extent on relationships with suppliers. Thus, relationships with suppliers and supply chain performance management are important topics in academic research due to their impact on supply chain profitability. It is particularly evident in the trade industry. Therefore, the purpose of this paper is to establish the relationship between supplier relationships and supply chain performance in the trade industry in Bosnia and Herzegovina. The empirical research is based on the primary data, collected by using a questionnaire. The respondents are 200 trade companies from the entire territory of Bosnia and Herzegovina. Various statistical analysis methods have been applied to answer the research questions addressing the issues of a potential relationship between supplier relationships and supply chain performance. The results have shown that supplier relationships positively impact flexibility, costs, and supply chain quality. There is a statistically significant interdependence between partnership and information exchange, as supplier relationships dimensions, and flexibility, costs, and supply chain quality, as supply chain performance dimensions. There is, also, a statistically significant impact of some companies' characteristics on the information exchange, supplier partnership, flexibility, costs, and quality.

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A comparative assessment of win-win and win-lose negotiation strategy use on supply chain relational outcomes

The International Journal of Logistics Management ◽

10.1108/ijlm-10-2016-0238 ◽

2018 ◽

Vol 29 (1) ◽

pp. 191-215 ◽

Cited By ~ 8

Author(s):

Stephanie Thomas ◽

Jacqueline Eastman ◽

C. David Shepherd ◽

Luther Trey Denton

Keyword(s):

Supply Chain ◽

Social Exchange ◽

Negative Impact ◽

Behavioral Experiment ◽

Negotiation Strategy ◽

Supplier Relationships ◽

Content Type ◽

Negotiation Strategies ◽

Relational Outcomes

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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The influence of economic crises on network behavior

Journal of Business and Industrial Marketing ◽

10.1108/jbim-07-2015-0126 ◽

2017 ◽

Vol 32 (3) ◽

pp. 445-456 ◽

Cited By ~ 2

Author(s):

Tibor Mandják ◽

Ágnes Wimmer ◽

François Durrieu

Keyword(s):

Customer Orientation ◽

Point Of View ◽

Customer Relationships ◽

Network Behavior ◽

Supplier Relationships ◽

Content Type ◽

Modeling Methodology ◽

Key Factor ◽

Valuable Customer ◽

Relational Outcomes

Purpose Following industrial network theory, this paper aims to address network behavior from a focal company’s perspective. Special attention is paid to examining the effect of perceptions of the economic crisis on network behavior. Design/methodology/approach The study is built on a quantitative analysis of an empirical database of 300 companies based on a survey completed in 2013 in Hungary. A focal company network behavior model was developed and applied to investigate the link between variables (valuable customer relationships, valuable supplier relationships, relationship strategy and relational outcomes) and the effect of managers’ perceptions about the intensity of the crisis. To obtain a deeper understanding of the effect of the crisis, structural modeling methodology was applied during data analysis. Findings How crises are perceived has a moderating influence on companies’ network behavior. In a context in which a crisis is strongly perceived, valuable customer relationships are considered more important than valuable supplier relationships; relationship strategy becomes more intensive; and performance is increasingly focused on operations and less on innovation. The main difference in network behavior is found with the management of the supply side. A different level of attention is paid to supplier relationships in a high crisis-perception context than when a crisis is perceived as being less critical. Research limitations/implications Results emphasize the importance of perceptions as a key factor in managerial attitudes, behavior and, ultimately, decision-making. This finding merits more attention from both researchers of business relationships and networks. Practical implications From a managerial point of view, the results emphasize the existence of potentially new opportunities in network management. The reinforcement of attention to the customer during a period of crisis implies the importance of the customer orientation, but also suggests that firms may have unexploited opportunities and more potential resources on the supplier side. Originality/value The paper combines an analysis of network behavior and perceptions of crisis, helping to explain managerial decisions and attitudes. Analysis was undertaken from a focal firms’ perspective and differences were investigated in attitudes concerning both supplier- and customer-side relations. How crises are perceived is a moderating variable of network behavior.

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