scholarly journals Power, shared goals and supplier flexibility: a study of the HUB-and-spoke supply chain

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gordon Liu ◽  
Lukman Aroean ◽  
Wai Wai Ko

PurposeSupplier flexibility reflects a supplier's operations-related decisions in responsively providing the necessary inputs to the focal firm. Drawing on resource-dependency theory and transaction cost economics, this study develops a conceptual framework to explain the differential effects of a focal firm's power over supplier flexibility in the context of the hub-and-spoke supply chain (SC). This study also considers the goals shared between the focal firm and its suppliers as an important contingency factor within the framework.Design/methodology/approachThis study tests the proposed conceptual framework using dyadic survey data from a hub-and-spoke SC consisting of a large construction contractor and its 100 suppliers in Indonesia.FindingsThe findings show that coercive power has an inverted U-shaped effect on supplier flexibility, while legal-legitimate power has a U-shaped effect. Furthermore, shared goals positively moderate the U-shaped effect between legal-legitimate power and supplier flexibility.Originality/valueThis study differentiates between the impacts of coercive power and legal-legitimate power on supplier flexibility in the hub-and-spoke SC. It also demonstrates that shared goals play a moderating role in affecting the impacts of legal-legitimate power on supplier flexibility. These findings also have important implications with regard to integrating resource-dependency theory and transaction cost economics to explain these associations.

2018 ◽  
Vol 29 (3) ◽  
pp. 608-628 ◽  
Author(s):  
Gensheng (Jason) Liu ◽  
Weiyong Zhang ◽  
Chundong Guo

PurposeEffective mass customization (MC) depends on accurately identifying customer needs and procuring appropriate components from supply base to manufacture the required product configurations in a timely manner. In essence, effective MC for a focal firm is contingent on effective supply chain management. However, extant literature is not very clear on how supply chain (SC) planning and integration activities affect MC. The purpose of this paper is to fill the gap by examining the impacts of SC-planning and SC-integration on MC.Design/methodology/approachOrganizational information processing theory is used to link SC-integration with MC ability, and a link is hypothesized between SC-planning and SC-integration. The structural equation model is then analyzed using data from 262 manufacturing plants.FindingsIt is found that SC-integration fully mediates the relationship between SC-planning and MC-ability.Research limitations/implicationsThe SC-integration measure is from a focal manufacturer’s standpoint, rather than the standpoint of the entire SC.Practical implicationsThe results indicate that using a SC perspective in planning activities helps a focal firm integrate with key stakeholders along the SC, which subsequently helps the firm mass customize. Practitioners should recognize the added importance of SC-planning and SC-integration if they want to mass customize.Originality/valueThis study provides a theoretical foundation for the relationship between SC-integration and MC. It also provides a more comprehensive conceptualization of SC-integration, which includes supplier integration, customer integration, as well as internal functional integration which was neglected in many previous studies.


2017 ◽  
Vol 37 (8) ◽  
pp. 1010-1030 ◽  
Author(s):  
Antony Paulraj ◽  
Constantin Blome

Purpose The environmental management of supply chains has become increasingly relevant in the recent era. Extant research proposes two main forms of mechanisms – collaboration and evaluation – for environmental supply chain management. Despite the wide use of these mechanisms and the empirical insight into the fact that they could be adopted simultaneously, it is unknown if, and, at which levels, environmental collaboration (EC) and environmental evaluation (EE) could be complementary or substitutionary in nature. Therefore, the purpose of this paper is to gain a clear understanding into the plural forms of these mechanisms. Design/methodology/approach The transaction cost economics and relational exchange theory are used to ground the research hypotheses. The results are based on survey data collected from 145 US manufacturing firms. The authors employ polynomial regression as well as the response surface methodology to test the proposed hypotheses. Findings The results suggest that EC and EE can have an intriguing effect depending on the outcome measure. Specifically, the authors find the effects in the economic and the environmental/social domains to be significantly different. Originality/value While scholars acknowledge that collaboration and evaluation could act as complements, extant research does not propose and test models that specifically capture complementary and substitutionary nature of these mechanisms. Accordingly, the study makes the first attempt to empirically test for the effects of the simultaneous pursuit of EC and EE.


2014 ◽  
Vol 32 (6) ◽  
pp. 786-805 ◽  
Author(s):  
Naomi Wangari Mwai ◽  
Joseph Kiplang’at ◽  
David Gichoya

Purpose – The aim of this paper is to establish how resource dependency theory (RDT) and transaction cost theory (TCT) can inform decisions to outsource ICT services by public university libraries in Kenya. Design/methodology/approach – The study adopted a multiple case study strategy in four selected public universities libraries in Kenya. Purposive sampling was used to identify respondents and data collection was done using a semi-structured interview schedule. Findings – The study highlights how RDT and TCT theoretical perspectives illuminate some of the reasons, and problems associated with Information and Communications Technology outsourcing in Libraries. The paper concludes with recommendations and the way forward. Research limitations/implications – The study was limited to the outsourcing of information technology services in four public university libraries in Kenya, namely, Kenyatta University (KU) in Kahawa, Nairobi; Moi University (MU) in Eldoret; University of Nairobi (UON) in Nairobi; and Jomo Kenyatta University of Agriculture and Technology (JKUAT) in Juja, Thika. This being a qualitative study (and taking into consideration the subjective views where bias could occur), the researchers ensured that the research was reliable by recording and taking notes during the interviews and by using peer-debriefing and professionals in the field to ascertain their views. Practical implications – The paper provides practical insights into outsourcing of Information Technology (IT) services in Public University libraries and information centres in Kenya. This study is useful for university libraries, information professionals, information communication technology professionals and university management. Social implications – The implications of the study are that outsourcing needs to be guided by clear policies that are documented and communicated to all the stakeholders. Originality/value – This research assesses IT outsourcing services in selected public academic libraries in Kenya.


2020 ◽  
Vol 25 (3) ◽  
pp. 285-300
Author(s):  
Ilias Vlachos ◽  
Selvie Carolin Dyra

Purpose Supply chains are becoming more complex and uncertain, yet existing theories are predominately based on empirical research of dyads overlooking triadic settings. This study aims to bridge the gap between supply chain theories and praxis, this study examined multi-sourcing triads in terms of coordination, collaboration and integration. Design/methodology/approach Transaction cost economics, resource-based view in conjunction with social capital theory and agency theory were used to develop a research framework. Abductive, comparative research examined four triads. The triads comprised four retailers (EU, USA, Japan and one with a global presence), one third-party logistics provider (3PL) and 103 suppliers in textiles and the clothing industry. Findings All multi-sourcing triads achieved efficient coordination via network configuration showing varying degrees of collaboration and integration. Three research propositions were developed as follows: transaction complexity and dynamics necessitate triad coordination and control by the 3PL; relational and structural embeddedness emerge when actors invest in triad-specific resources and capabilities; information, relational and structural asymmetries may trigger bridge transfer and affect triad integration and performance. Research limitations/implications Empirical research on multi-sourcing triads complements existing research on logistics and service, transitive triads to uncover how triad coordination, embeddedness and power asymmetries affect supply chain performance. Future studies should examine the interrelationships between triad embeddedness, asymmetries and relational capital. Practical implications Compared to logistics or service triads, B3B triads excel in relational and structural embeddedness and offer unique production-distribution solutions that create value to end-consumers and triad actors. Originality/value B3B triads are a unique conceptualization in supply chain management that extends the concepts of logistics triads and service triads.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kizito Elijah Kanyoma ◽  
Frank Wogbe Agbola ◽  
Richard Oloruntoba

PurposeThis paper investigates the inhibitors and enablers of supply chain integration (SCI) across multiple tiers in the supply chains of manufacturing-based small and medium-sized enterprises (SMEs) in Malawi.Design/methodology/approachFollowing a qualitative approach, data were collected through face-to-face interviews across three supply chains, each consisting of a focal manufacturer, a major supplier and a retailer.FindingsThe research identified interpersonal relationships, supplier cost transparency and joint supply chain management (SCM) investments as key enablers of SCI. Concerning the inhibitors of SCI, the study found that a lack of external integration inhibited internal integration by acting as a source of disruption to intra-firm processes and relationships. Further, the research found weaker links between manufacturer–-retailer dyads than in manufacturer–supplier dyads, which constrained the ability to achieve multi-tier supplier–manufacture–retailer integration. The study also revealed that resource and infrastructural deficiencies, a culture of fear and intimidation within and between firms, corruption in sourcing transactions and a lack of inter-firm trust inhibited SCI.Research limitations/implicationsThe paper extends earlier evidence that internal integration is a prerequisite for external integration demonstrating that a basic level of external integration is necessary to prevent disruptions to internal integration.Originality/valueThis study is one of the few to go beyond the focal firm perspective and explore the inhibitors and enablers of SCI across multiple supply chain positions, and provides new evidence on the role of external integration in achieving internal integration.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Longwei Wang ◽  
Meige Song ◽  
Min Zhang ◽  
Li Wang

Purpose This study aims to empirically investigate the role of contracts in tacit knowledge acquisition in research and development (R&D) alliances. By combining the perspectives of sensemaking and transaction cost economics (TCE), this study proposes a model about the mechanisms through which shared goals and contract completeness jointly affect tacit knowledge acquisition. Design/methodology/approach This study adopted a quantitative design and used the questionnaire survey method to collect data. The authors finally collected data on 196 R&D alliance samples in China. Multiple regression analysis was used to test the hypotheses. Findings There is strong empirical support that contract completeness has a positive effect on shared goals and that shared goals have a positive effect on tacit knowledge acquisition. Meanwhile, contract completeness weakens the positive effect of shared goals on tacit knowledge acquisition. Therefore, this study reveals that contract completeness has an inverted U-shaped effect on tacit knowledge acquisition. Practical implications The findings suggest that managers should consider both the psychological and rational effects of contract governance simultaneously, thus recognizing the importance of a moderate level of contract completeness for tacit knowledge acquisition in R&D alliances. Originality/value This study enhances the current understanding of contract governance by integrating the sensemaking and TCE perspectives. The findings provide a possible explanation of how contracts affect tacit knowledge acquisition in R&D alliances. The authors expand the research on contract governance and alliance knowledge acquisition by revealing the inverted U-shaped relationship between contract governance and tacit knowledge acquisition.


2015 ◽  
Vol 10 (3) ◽  
pp. 223-238 ◽  
Author(s):  
Gaétan Breton ◽  
Saidatou Dicko

Purpose – This paper aims to illustrate the resource dependency theory by making ties between the different resources needed by a firm and the members of the board through their allegiances to different organizations. Many researchers have explained the formation of the board through a controlling function. Alternative explanation is proposed by the resource dependency theory. Design/methodology/approach – To investigate the case of the largest company in Canada, the authors took their data in the Boardex database. Then drawing an affiliation matrix, they used the Pajek software to analyze these connections. They obtained a non-directional social network prone to illustrate the resource dependency theory. Findings – The authors found different categories of resources being placed at firm’s disposal: political, social and economic, under different forms. Because a case study approach was used, the findings will be used to complete the theory rather than confirm or contradict it. The case firm is well-connected at every level, although having a quite conservative board: only one woman, no representative of the social or environmental worlds. Through a program for designing networks, the authors show that board member’s networks are encompassing a spectrum of resources. Comparing with a previous study, it was found that the proportions of these resources remain the same in 2013 than in 2007. Research limitations/implications – This case is a very large group. Therefore, it can be expected that it will need every kind of resources. It might be interesting to replicate the study on smaller firms. The results imply that boards may not be the best structure to control the firm’s inside activities. Originality/value – Although many theoretical papers exist on this question, the board is mainly studied through the insiders/outsiders dichotomy, but there are few practical studies taking the resource dependency theory perspective.


2013 ◽  
Vol 18 (2) ◽  
pp. 178-193 ◽  
Author(s):  
Hwan‐Yann Su ◽  
Shih‐Chieh Fang ◽  
Chaur‐Shiuh Young

PurposeThis paper aims to explore the intellectual capital (IC) information needed to enable relationship transparency and the influences of relationship transparency on supply chain partnerships.Design/methodology/approachA field experiment research design is adopted to examine whether IC information facilitates relationship transparency with partners in the supply chain of a focal firm and contributes to supply chain partnership enhancement.FindingsThis study identifies an IC transparency framework consisting of two components – the transparency of important business characteristics and the transparency of relationship atmosphere – for guiding the provision of IC information and enabling relationship transparency. The provision of the focal firm's IC information to partners in its supply chain significantly increases partner's trust, satisfaction and commitment towards their relationships. Thus the results suggest that relationship transparency derived from IC transparency enhances supply chain partnerships. Relationship transparency facilitates the focal firm to develop and integrate its supply chain through improved understanding pertaining to itself and its relationships with partners in its supply chain. Thus, this transparency of the focal firm with partners constitutes a flexible and attainable alternative to managing the relationships for its supply chain.Research limitations/implicationsThis study suggests that the field experiment research design allows researchers to effectively observe IC transparency's influences on supply chain partnership enhancement.Practical implicationsFor firms increasingly interconnected with supply chain models of competition, this study proposes a practical IC transparency framework specific for guiding the provision of IC information to enable relationship transparency and enhance supply chain partnerships.Originality/valueThis study combines limited research on relationship transparency with IC theories to propose an IC transparency framework for enhancing supplier relationship management and represents a first step to examining the quantitative effects of IC transparency in the context of supply chain partners.


2014 ◽  
Vol 19 (1) ◽  
pp. 98-107 ◽  
Author(s):  
Liesbeth Dries ◽  
Matthew Gorton ◽  
Vardan Urutyan ◽  
John White

Purpose – The purpose of this paper is to evaluate the determinants of supply chain relationships, the provision of supplier support measures and the role that support measures play in stimulating investment by suppliers in emerging economies. Design/methodology/approach – The paper draws on survey evidence for 300 commercial dairy farms in Armenia. The identification of potential determinants of supply chain relationships and support programmes is based on literature on supply chain management and transaction cost economics. Findings – Positive determinants of supplier support programmes are the degree of exclusivity of the buyer-supplier relationship, initial capital of the supplier, co-operation between suppliers, and foreign ownership of the buyer. Support programmes are less likely to be offered in very competitive environments. Support measures such as loans, physical inputs and guaranteed prices facilitate supplier investments. Research limitations/implications – Research is limited to cross-sectional data for a single country and further testing would help assess the generalizability of the findings. Practical implications – The findings highlight the gains that can be made from openness to international firms. The negative competition effect suggests that buyers are constrained in their ability to monitor use of the provided services in an environment where a lot of buyers are competing for the same supply. Improving the enforcement capability of companies under these circumstances is an important challenge for the industry and policy makers. Originality/value – The novelty of the study lies in the investigation of the relationships between the nature of supply chain linkages and suppliers' investments.


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