The moderating effect of virtual integration on intergenerational governance and relationship performance in international customer–supplier relationships

2020 ◽  
Vol 37 (3) ◽  
pp. 579-592
Author(s):  
Ruey-Jer Bryan Jean ◽  
Daekwan Kim ◽  
Yung-Chih Lien ◽  
Sangbum Ro

PurposeWith the growing trend of digital technology in global supply chains, how to manage global supply chain relationships under digital transformation becomes a critical issue. However, academic research in this area is sparse. This study develops and tests a theoretical framework of the moderating effect of virtual integration on interorganziational governance in international customer supplier relationships.Design/methodology/approachWe chose to examine the specific cross-border relationships between Taiwanese suppliers and their international OEMs because Taiwanese suppliers tend to be smaller than their international OEM customers, and thus their relationships usually show power asymmetry. Furthermore, the Taiwanese electronics industry offers a valuable empirical context because its industry members have served as pioneers in information technology development, have championed cross-border relationships with US and European industry leaders and are actively participating in the world economyFindingsOur empirical findings indicate that virtual integration will strengthen the effect contractual governance on relationship performance. However, the moderating effect of virtual integration on relational governance is not significant. The paper discusses the theoretical and managerial implications in the end.Originality/valueThis study contributes to interorganizational governance literature in international contexts. Previous work on international relationship management has focused much on MNE buyers' perspectives and paid little attention to the suppliers' perspectives. This study extends this stream of research by empirically examining how suppliers can govern their MNEs' customers via different governance mechanisms. The findings extend literature on virtual integration and show that virtual integration can complement detailed contract and safeguard opportunism, which in turn, enhance relationship performance in international customer–supplier relationships.

2020 ◽  
Vol 37 (2) ◽  
pp. 213-239 ◽  
Author(s):  
Lei Wang ◽  
Chun Zhang ◽  
Jun Li ◽  
Dong Huo ◽  
Xing Fan

PurposeThis study examines how unilateral supplier transaction-specific investments (TSIs), directly and indirectly, influence international buyer opportunism and the extent to which detailed contracts enable suppliers to safeguard against international buyer opportunism. The study also examines whether relationship length affects the efficacy of detailed contracts in cross-border outsourcing relationships.Design/methodology/approachThe hypotheses are tested by using data collected from multiple informants working for 229 manufacturing suppliers in China. Multiple regression with a three-way interaction is used to test the hypotheses.FindingsUnilateral supplier TSIs encourage international buyer opportunism through increased supplier dependence. Contract specificity negatively moderates the effect of supplier dependence on international buyer opportunism. This moderating effect is stronger in long-term cross-border buyer–supplier relationships than in short-term ones.Originality/valueThe current study extends the cross-border outsourcing literature by examining how emerging-market suppliers in a weak power position can proactively safeguard against international buyer opportunism by using detailed contracts. Our findings show that supplier dependence mediates the relationship between unilateral supplier TSIs and international buyer opportunism; detailed contracts, however, can help dependent suppliers safeguard against international buyer opportunism. In particular, the findings highlight the importance of long-term buyer–supplier relationships that enhance the efficacy of detailed contracts.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chandrasekararao Seepana ◽  
Ahmad Khraishi ◽  
Antony Paulraj ◽  
Fahian Anisul Huq

Purpose This study aims to investigate how contract complexity and relational trust could impact offshore outsourcing innovation (OOI) performance of small and medium enterprises (SMEs). This study further examines the moderating effects of knowledge routines and joint actions on the relationships between contract complexity, as well as relational trust and OOI performance. Design/methodology/approach The empirical investigation extends transaction cost economics and the relational view of buyer-supplier dyads in the context of offshore outsourcing SMEs. To test the hypotheses, the authors collected and analysed survey data from 200 European manufacturing SMEs that have existing offshore supplier relationships. Findings The results suggest that both complex contracts and relational trust as governance structures positively affect SMEs’ OOI performance. Additionally, while both formal knowledge routines and joint actions help strengthen the relationship between complex contracts and OOI, they showed no significant moderating effect on the relationship between relational trust and OOI. Furthermore, based on the results, the authors also develop a governance framework covering four configurations – fit, firm, flexible and fragile (4F). Originality/value The 4F governance scenarios – fit, firm, flexible and fragile – introduced in this study emphasise the need for a combination of contract complexity and relational trust mechanisms in OOI relationships. The 4F labelling has rich implications for practitioners on how interfirm outsourcing innovation relationships can be managed based on configurations of contractual and relational governance. The study also adds to the understanding of how SMEs’ specific characteristics (e.g. resource shortcomings and flexibility) may influence their OOI decisions in comparison with large firms.


2018 ◽  
Vol 1 (1) ◽  
pp. 54-64 ◽  
Author(s):  
Amy Gregory ◽  
Xiaoxiao Fu

Purpose Although much satisfaction research examines the role of demographics, few examine the phenomena of family cohesion or travel party composition and the role they play in influencing satisfaction. Therefore, the purpose of this paper is to leverage the two to further understand satisfaction. Design/methodology/approach Data from 400 vacationing families were analyzed to examine the factors of family cohesion, activity satisfaction and overall vacation satisfaction. Findings Contrary to previous research, the results suggest that family cohesion is comprised of two primary factors: emotional bonding and decision making, family boundaries and coalitions. The findings suggest that family cohesion and activity satisfaction contributed to overall vacation satisfaction. However, as an addition to extant research, the findings demonstrate that travel party size moderated this relationship. Research limitations/implications This research challenges findings of extant research on family cohesion and extends satisfaction research by introducing the effect of family cohesion and travel party composition. Both suggest and offer opportunities for future academic research. Practically speaking, this research also provides insight for practitioners as to why “travel party composition” should be regarded as an operative, rather than a descriptive term. Practical implications Practically speaking, this research also provides insight for practitioners as to why “travel party composition” should be regarded as an operative, rather than a descriptive term. Given the results of this research, the moderating effect of travel party composition is an interesting academic finding. Operationalizing this component in practice is challenging. However, practitioners can take the knowledge of the positive relationships between family cohesion, participation in activities, and overall vacation satisfaction, as well as the moderating effect of travel party composition, into account when evaluating guest satisfaction scores, programming activities, and resolving guest issues. Originality/value In addition to challenging findings of prior research, this research utilizes data gathered during family vacations; therefore not relying on recall or issues with memory effect. In addition, it extends existing research through the exploration of moderating variables. Finally, the research has practical implications for practitioners to attend to satisfaction of the increasing global family leisure market.


2014 ◽  
Vol 42 (8) ◽  
pp. 759-774 ◽  
Author(s):  
David G. Taylor ◽  
Michael Levin

Purpose – Mobile applications, or apps, are an increasingly important part of omnichannel retailing. While the adoption and usage of apps for marketing purposes has grown exponentially over the past few years, there is little academic research in this area. The purpose of this paper is to examine how the mobile phone platform (Android vs Apple iOS), interest in the app and recency of store visit affect consumers’ likelihood to use the apps for purchasing and information-sharing activities. Design/methodology/approach – The paper tests a model by analysing survey data collected from customers of a major US retailer using partial least squares regression. Findings – The analysis finds that the level of interest in a retail app is positively related to the consumer's intention to engage in both purchasing and information-sharing activities. In addition, the recency of the consumer's last visit to the retail store has a moderating effect on both types of activities; the more recent the last visit, the larger the effect-size of interest in the app on intention to share information and make a purchase. Practical implications – While marketing and advertising managers may have suspected that Apple iOS users are more receptive to retail mobile apps, this study provides empirical support for the proposition. In addition, the moderating effect of recency of visit suggests that in-store promotions may be effective in increasing usage of the retailer's mobile apps. Originality/value – This study is among the first in the academic literature to examine predictors of mobile app usage for purchasing and information sharing. It fills a gap in the literature, while at the same time providing actionable information for practitioners.


2020 ◽  
Vol 33 (6) ◽  
pp. 1581-1598
Author(s):  
Maisa Mendonça Silva ◽  
Thiago Poleto ◽  
Ana Paula Henriques de Gusmão ◽  
Ana Paula Cabral Seixas Costa

PurposeThe purpose of this paper is to propose a strategic conflict analysis, based on the graph model for conflict resolution (GMCR), that is applied to information technology outsourcing (ITO) in a real-world software development and implementation process in Brazil.Design/methodology/approachBecause the idea of this study is to answer “why” the ITO conflicts occur and “how” they can be avoided, the case study methodology was adopted. The software GMCR II was used to analyze the interactions between an IT vendor and an IT client.FindingsThe results suggest that a lack of relational governance is a critical issue that could be handled to improve the interaction between those involved.Research limitations/implicationsThe main results are restricted to the case study and cannot be generalized. Moreover, a specific limitation of this paper pertains to the use of the GMCR and the consequent difficulty for IT vendors and IT clients to work with a large number of actions and to set preferences for several states of conflict.Practical implicationsThe strategic analysis of outsourcing conflicts provides a holistic view of the current situation that may assist the client and vendor in future decisions and identify guidelines to ensure successful ITO. Therefore, this paper provides an effective guide for clients and vendors to better manage conflicts and establish a contingency vision to avoid such disputes.Originality/valueThe ITO conflict is analyzed using the GMCR, considering both perspectives of the outsourcing process (vendors and clients).


2019 ◽  
Vol 35 (3) ◽  
pp. 437-446 ◽  
Author(s):  
Francesca Magno ◽  
Fabio Cassia

Purpose Establishing thought leadership by disseminating relevant digital content through social media has become one of the main priorities for marketers in business-to-business (B2B) settings. However, academic research has only recently started to address this phenomenon. In particular, researchers have not yet examined whether and how thought leadership positively influences a firm’s relationship with its customers. This paper aims to propose and test a model to explain how a firm’s thought leadership improves its customer relationship performance. Design/methodology/approach A cross-sectional research design was applied using covariance-based structural equation modeling to estimate the suggested model. Data were collected from a sample of 160 firms in different industries that create and share content on social media. Findings Thought leadership on social media positively influences brand performance and, in turn, customer relationship performance in B2B settings. Moreover, establishing thought leadership on social media results from specific thought leadership capabilities and is supported by social media capabilities. Research limitations/implications This study advances knowledge on social media thought leadership in B2B settings by proposing and testing a model that combines available insights from three distinct but interrelated B2B streams of studies: branding, social media marketing and thought leadership. Moreover, this study conceptualizes the effects of thought leadership, which is consistent with the relational nature of B2B settings. In fact, it explores thought leadership as a means to maintain and strengthen business relationships. However, further studies are needed to explore detailed strategies that affect the effectiveness of thought leadership. Practical implications The results provide managers with evidence on the effectiveness of a thought leadership strategy. Establishing thought leadership on social media can help to nurture customer relationships over time. By sharing valuable content, suppliers can continuously demonstrate their cutting-edge competences and expertise, thus keeping their brand relevant to customers. Originality/value This is the first study to provide evidence of the benefits of social media thought leadership on customer relationships in B2B settings.


2015 ◽  
Vol 30 (5) ◽  
pp. 688-699 ◽  
Author(s):  
Jody L. Crosno ◽  
Robert Dahlstrom ◽  
Chris Manolis

Purpose – The purpose of this study is to examine change requests in buyer-supplier relationships. Change requests arise when a channel partner wants an addition or alteration to the agreed-upon deliverable. Although these requests are intended to enhance consumer satisfaction and supply chain performance, they complicate development and production processes and may delay time to market. Responses to change requests may embody compliance or malice, yet research to date has not examined these requests in interfirm relationships. To this end, the authors examine supplier reactions (compliance and opportunism) to change requests made by the buying firm. Design/methodology/approach – Survey data gathered from 118 third-party developers (i.e. suppliers) reporting on their relationship with the software buyer provide an initial test for the authors’ proposed model. Findings – The results of a path analysis indicate that change requests are related positively to supplier compliance with those requests and supplier opportunism. Outcome-based control decreases supplier compliance when there are extensive change requests. Behavioral control, in contrast, increases supplier compliance particularly when the buyer provides support for the requested changes. Research limitations/implications – Future research should examine relational governance and ex ante control mechanisms as alternatives to outcome-based and behavioral control. Practical implications – The authors’ results suggest that buyers requesting extensive changes should use behavioral control mechanisms and provide support to the supplier implementing the changes. Originality/value – The authors provide a preliminary examination of suppliers’ reactions to change requests made by buying firms. The authors argue that these requests may limit the autonomy of the supplying firms, creating reactance effects. The authors investigate outcome-based control, behavioral control and buyer support as factors that influence supplier reactions to change requests.


2018 ◽  
Vol 33 (5) ◽  
pp. 717-729 ◽  
Author(s):  
Ngoc Luu ◽  
Jack Cadeaux ◽  
Liem Viet Ngo

Purpose The purposes of this study are to examine how contractual and relational governance mechanisms influence total value created in a buyer–supplier relationship and to investigate how supplier’s information sharing and information sharing asymmetry between two exchange parties differentially moderate these associations. Design/methodology/approach The study is conducted with a sample of 110 buyer–supplier matched dyads in various industries in Vietnam. Findings This study confirms that contractual governance and relational governance have curvilinear effects on total relationship value. Governance mechanisms have distinct interactions with supplier’s information sharing and information sharing asymmetry to influence total relationship value. Research limitations/implications Future study could expand the sample to various countries to investigate the role of cultural factors in the effects of contractual and relational governance. Practical implications This study draws implications for supplying managers about how to govern a relationship with a buying firm with which they are sharing information. It also provides implications about how to use contractual and relational governance to control the effects of supplier’s information sharing and information sharing asymmetry, on total relationship value. Originality/value This study extends the information sharing literature by looking into the effect of supplier’s information sharing on both parties’ relationship value. It contributes to the governance literature by investigating curvilinear effects of contractual and relational governance on relationship performance.


2019 ◽  
Vol 9 (1) ◽  
pp. 65-93 ◽  
Author(s):  
Alberto Arenal ◽  
Claudio Feijoo ◽  
Ana Moreno ◽  
Cristina Armuña ◽  
Sergio Ramos

Purpose Academic research into entrepreneurship policy is particularly interesting due to the increasing relevance of the topic and since knowledge about the evolution of themes in this field is still rather limited. The purpose of this paper is to analyse the key concepts, topics, trends and shifts that have shaped the entrepreneurship policy research agenda during the period 1990–2016. Design/methodology/approach This paper uses text mining techniques, cluster analysis and complementary bibliographic data to examine the evolution of a corpus of 1,048 academic papers focused on entrepreneurship-related policies and published during the period 1990–2016 in ten relevant journals. In particular, the paper follows a standard text mining workflow: first, as text is unstructured, content requires a set of pre-processing tasks and then a stemming process. Then, the paper examines the most repeated concepts within the corpus, considering the whole period 1990–2016 and also in five-year terms. Finally, the paper conducts a k-means clustering to divide the collection of documents into coherent groups with similar content. The analyses in the paper also include geographical particularities considering three regional sub-corpora, distinguishing those articles authored in the European Union (EU), the USA and South and Eastern Asia, respectively. Findings Results of the analysis show that inclusion, employment and regulation-related papers have largely dominated the research in the field, evolving from an initial classical approach to the relationship between entrepreneurship and employment to a wider, multidisciplinary perspective, including the relevance of management, geographies and narrower topics such as agglomeration economics or internationalisation instead of the previous generic sectorial approaches. The text mining analysis also reveals how entrepreneurship policy research has gained increasing attention and has become both more open, with a growing cooperation among researchers from different affiliations, and more sophisticated, with concepts and themes that moved the research agenda forward, closer to the priorities of policy implementation. Research limitations/implications The paper identifies main trends and research gaps in the field of entrepreneurship policy providing actionable knowledge by presenting the spectrum of both over-explored and understudied research themes in the field. In practical terms the results of the text mining analysis can be interpreted as a compass to navigate the entrepreneurship policy research agenda. Practical implications The paper presents the heterogeneity of topics under research in the field, reinforcing the concept of entrepreneurship as a multidisciplinary and dynamic domain. Therefore, the definition and adoption of a certain policy agenda in entrepreneurship should consider multiple aspects (needs, objectives, stakeholders, expected outputs, etc.) to be comprehensive and aligned with its complexity. In addition, the paper shows how text mining techniques could be used to map the research activity in a particular field, contributing to the challenge of linking research and policy. Originality/value The exploratory nature of text mining allows us to obtain new knowledge and reveals hidden patterns from large quantities of documents/text data, representing an opportunity to complement other qualitative reviews. In this sense, the main value of this paper is not to advise on the future configuration of entrepreneurship policy as a research topic, but to unwrap the past by unveiling how key themes of the entrepreneurship policy research agenda have emerged, evolved and/or declined over time as a foundation on which to build further developments.


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