The value creation scale of supplier-distributor relationship in international markets

2015 ◽  
Vol 30 (2) ◽  
pp. 171-181 ◽  
Author(s):  
Chi-Shiun Lai ◽  
Delphine Ya-Chu Chan ◽  
Chin-Fang Yang ◽  
Wei-Chun Hsu
Keyword(s):  
Factor Analysis ◽  
Value Creation ◽  
Operating Performance ◽  
Test Reliability ◽  
Measurement Scale ◽  
Content Type ◽  
Cross Border ◽  
Relationship Value ◽  
The Relationship ◽  
Cross Border Cooperation

Purpose – The purpose of this study is to develop a value-creation measurement which is applicable to the supplier–overseas distributor relationship. As cross-border cooperation is increasingly important, there is yet no appropriate scale to measure the relationship value between the supplier and the distributor in cross-boundary context. Design/methodology/approach – With a view to establishing the measurement scale for the relationship value created between manufacturer and its overseas distributor, this study uses exploratory factor analysis, confirmatory factor analysis (CFA) and regression to test reliability, convergent validity, discriminant validity and nomological validity of the scale. Findings – The scale is made up of six factors, including “customer service”, “relationship interaction”, “cost reduction”, “product promotion”, “product sales” and “information offering”; subsequent statistical tests strongly support the measurement. Research limitations/implications – First, the sample collection was not conducted randomly, and the sample was limited to 190 valid questionnaires. Future research might be conducted randomly or in a longitudinal fashion to increase the sample size. Second, this study focuses mainly on manufacturers in the mechanical parts industry and was conducted unilaterally to discuss the creation of relationship value. It is suggested that future researchers investigate relationship value generated in cross-border cooperation from a bilateral perspective or discuss cooperative relationships in other industries. Practical implications – This study creates a functional scale to measure the supplier–distributor value creation in cross-border cooperation, and it proves that six factors pertaining to relationship value have significant positive correlation with operating performance; in this regard, in supplier–distributor cooperative relationship, more value the distributor creates for its supplier, the better the operating performance of the supplier will be. Originality/value – In the academic sense, this measurement will be of substantial help to future empirical research on a larger scale. When applied to practice, this measurement supplements the extant body of value-measuring tools and works as an evaluation index for choosing overseas distributor.

The impact of trust and commitment on value creation in asymmetric buyer–seller relationships: the mediation effect of specific asset investments

2017 ◽  
Vol 32 (3) ◽  
pp. 457-471 ◽  
Author(s):  
Po-Yuan Chen ◽  
Kuan-Yang Chen ◽  
Lei-Yu Wu
Keyword(s):  
Value Creation ◽  
Equation Modeling ◽  
Power Relationship ◽  
Unequal Distribution ◽  
Content Type ◽  
Cooperative Relationships ◽  
Relationship Value ◽  
Cooperative Relationship ◽  
The Impact ◽  
The Relationship

Purpose Previous studies have argued that trust and commitment can create value in cooperative relationships. However, this study observed that, in practice, trust and commitment alone may not ensure value creation in asymmetric relationships. Accordingly, this study aims to investigate the mediating role of specific assets in the effects of trust and commitment on value creation in asymmetric buyer–seller relationships. Design/methodology/approach Contract manufacturers (CMs) in Asia were sampled to validate the argument proposed by this study. Most Taiwanese CMs are partnered with international brands (original equipment manufacturers [OEMs]) that have stronger bargaining power. This cooperative relationship is characteristically asymmetric. A questionnaire method was applied, and structural equation modeling was performed to verify the proposed hypotheses. Findings Specific asset investment (SAI) was a crucial mediator that explained the effects of trust and commitment on the relationship value of an asymmetric cooperative relationship. Past studies have claimed that power asymmetry results in an unequal distribution of benefits. Nevertheless, regarding the relationship between CMs and OEMs, the study revealed that relationship value could still be increased once the congruent goals have been achieved by both parties. This finding contradicts past theoretical predictions. Practical implications Characteristically asymmetric CMs–OEMs (seller–buyer) relationships cannot be maintained merely through trust and commitment, particularly in the context of power and resource imbalances in which the stronger party often possesses a wider selection of prospective partners. The results of this study suggested that the CM should unilaterally invest in specific assets conducive to a cooperative relationship as an expression of faith in the relationship with the stronger firm, thereby creating opportunities for value cocreation. Originality/value The analysis of the relevance of relationship quality in the context of asymmetric cooperative relationships confirmed the mediating influences of SAI on ensuring value creation and the maintenance of the relationships. Relationship value could still be created despite the highly asymmetry power relationship. The CMs’ SAI is the key mechanism for this achievement.

Do cross-border acquisitions involving emerging market firms create value

2014 ◽  
Vol 52 (8) ◽  
pp. 1451-1473 ◽  
Author(s):  
P.C. Narayan ◽  
M. Thenmozhi
Keyword(s):  
Emerging Markets ◽  
Value Creation ◽  
Emerging Market ◽  
Operating Performance ◽  
Relative Size ◽  
Rank Test ◽  
Content Type ◽  
Cross Border ◽  
Emerging Market Firms ◽  
The Impact

Purpose – The purpose of this paper is to contribute to M&A literature by explicitly investigating whether cross-border acquisitions involving emerging markets, either as acquirers or as targets, create value and how is the performance outcome in such acquisitions impacted by deal-specific characteristics. Design/methodology/approach – This study uses industry-adjusted operating performance to measure acquisition gains, the Wilcoxon signed rank test to examine value creation potential and OLS regression to evaluate the impact of deal characteristics on acquisition gains. Findings – The authors find very pronounced value destruction when emerging market firms acquire targets in developed markets, the adverse outcome being further aggravated when the mode of acquisition is “tender offer” rather than a “negotiated deal”. On the other hand, when developed market firms acquire targets from emerging markets, there is an even chance of value creation, the outcome being favourably influenced by the pre-acquisition performance of the two firms, relative size of the target and cash (not stock-swap) as the mode of payment. Originality/value – The findings from this paper offer an important, statistically significant explanation on the value creation potential and the impact of deal characteristics on post-acquisition operating performance in cross-border acquisitions involving emerging market firms. This finding assumes immense significance, given the rapidly changing landscape of global M&A, witnessed through a continuous rise in the volume and value of cross-border acquisitions involving emerging market firms.

“Mind the gap”: to succeed in marketing politics, think of social media innovation

2019 ◽  
Vol 36 (6) ◽  
pp. 806-817
Author(s):  
Patrick Amfo Anim ◽  
Frederick Okyere Asiedu ◽  
Matilda Adams ◽  
George Acheampong ◽  
Ernestina Boakye
Keyword(s):  
Social Media ◽  
Factor Analysis ◽  
Political Participation ◽  
Political Efficacy ◽  
Customer Relationship ◽  
Political Marketing ◽  
Content Type ◽  
Young Voters ◽  
Mediating Role ◽  
The Relationship

Purpose This paper aims to explore the relationships between political marketing via social media and young voters’ political participation in Ghana. Additionally, this study examines the mediating role political efficacy plays in enhancing the relationship. Design/methodology/approach With a positivist mindset, and adopting the survey strategy, data gathered from the questionnaire administered from the sampled 320 young voters (18-29 years) in Greater Accra were quantitatively analyzed. An exploratory factor analysis (EFA), confirmatory factor analysis (CFA) and structural equation modeling (SEM) were used to assess and confirm the proposed scales validity and the relationships of the research model. Findings The study revealed that a political party or candidate’s ability to achieve political participation from Ghanaian young voters’ is dependent on how effective they build customer relationship or gaining visibility through social media. In addition, the study showed that political efficacy mediates the relationship between customer relationship building or gaining visibility through social media and political participation among Ghana young voters. Thus, young voters in Ghana must see themselves to have a say in the affairs of political parties through the political messages they gather from social media platforms to enhance their political participation activities. Practical implications The results of this paper will enable political marketers and politicians not only in Ghana but across the globe, to better understand how social media as a communication tool could be used to positively influence users’ political participation. Originality/value Considering the uniqueness of this study in a Ghanaian context, this paper is the first of its kind to use the social capital theory in examining the mediating role political efficacy plays in enhancing the relationship between political marketing on social media and young voters’ political participation.

Developing a measurement scale for organizational learning capabilities in China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Wanwen Dai ◽  
Jan Ketil K. Arnulf ◽  
Laileng Iao ◽  
Meng Liang ◽  
Haojin Dai
Keyword(s):  
Factor Analysis ◽  
Organizational Learning ◽  
Chinese Culture ◽  
Ecological Validity ◽  
Three Dimensional ◽  
Measurement Instrument ◽  
Measurement Scale ◽  
Management Research ◽  
Learning Capability ◽  
Content Type

Purpose The purpose of this study was to develop a measurement instrument for organizational learning capability (OLC) in a Chinese management context. Previous research has indicated a need for measurement instruments with proven ecological validity in China, because the learning capability of organizations is influenced by the organization’s external environment. Design/methodology/approach The authors followed a consequent inductive procedure from item sampling through exploratory factor analysis (EFA) to confirmatory factor analysis (CFA) and nomological validation. The initial part sampled relevant descriptors from a diverse sample of 159 employees from heterogeneous backgrounds in China. After sorting by an expert panel, EFA of data from a sample of 161 executive students yielded a three-dimensional construct comprising knowledge acquisition, knowledge sharing and knowledge utilization. These three constructs were again tested in CFA using a sample of 357 employees from five companies. Findings The findings across the three samples resulted in a three-dimensional measurement scale that is called as the organizational learning capability questionnaire (OLCQ). The OLCQ displayed high internal consistency, reliability and nomological validity. Research limitations/implications This focus of this study has only been to establish a measurement instrument that allows indigenous research on organizational learning in China. The approach was statistically driven grounded approach, not a theoretical assumption of learning mechanisms special to the Chinese culture. Further research is needed to estimate how this approach yields results that are different from other cultures or the extent to which our findings can be explained by features of the Chinese culture or business environment. Practical implications This study offers a practical measurement instrument to assess practical and scientific problems of organizational learning in China. Social implications The work here emphasizes the necessity of a knowledge sharing community for organizational learning to appear. It addresses a call for more indigenous Chinese management research. Originality/value The authors provide a measurement instrument for OLC with proven ecological validity and with promising consequences for research and practice in China. The instrument is empirically grounded in the practices and behaviors of Chinese managers, avoiding biases that stem from previously identified shortcomings in cross-cultural management research. To the knowledge, it is the first of its kind and a contribution to a call for indigenous management theories with contextual validity.

How does reverse factoring affect operating performance? An event study of Chinese manufacturing firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yongyi Shou ◽  
Jinan Shao ◽  
Weijiao Wang
Keyword(s):  
Event Study ◽  
Cost Efficiency ◽  
Operating Performance ◽  
Manufacturing Firms ◽  
Content Type ◽  
Performance Effect ◽  
Study Results ◽  
Operating Margin ◽  
The Impact ◽  
The Relationship

PurposeAs a popular supply chain finance (SCF) strategy, reverse factoring has been widely adopted by buyer firms. However, the extant literature provides scant empirical evidence on the performance effect of reverse factoring. The purpose of this study is to seek to narrow this gap by empirically examining the relationship between reverse factoring and operating performance and the contingency conditions of this relationship.Design/methodology/approachBased on a sample of 167 announcements of reverse factoring implementation made by publicly listed Chinese manufacturing firms between 2014 and 2018, this paper employs a long-term event study approach to analyze the operating performance effect of reverse factoring as well as the moderating effects of production and innovation capabilities.FindingsThe event study results indicate that reverse factoring has a positive effect on buyer firms' operating performance in terms of cost efficiency and operating margin. In addition, both production and innovation capabilities positively moderate the relationship between reverse factoring and operating margin. However, neither of them moderates the relationship between reverse factoring and cost efficiency.Originality/valueThis is the first study that empirically examines the impact of reverse factoring on operating performance based on secondary data. Furthermore, it sheds light on the SCF literature by providing insights into the contingency effects of production and innovation capabilities, which also extends our understanding of the application of extended resource-based view in SCF research.

The impact of organizational position level and cultural flow direction on the relationship between cultural intelligence and expatriate cross-border adaptation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ying Zhang ◽  
Yuran Li ◽  
Mark Frost ◽  
Shiyu Rong ◽  
Rong Jiang ◽  
...  
Keyword(s):  
Cultural Intelligence ◽  
Flow Direction ◽  
Power Distance ◽  
Cultural Adjustment ◽  
Data Set ◽  
Content Type ◽  
Cross Border ◽  
Organizational Position ◽  
The Impact ◽  
The Relationship

PurposeThis paper aims to examine the critical role played by cultural flow in fostering successful expatriate cross-border transitions.Design/methodology/approachThe authors develop and test a model on the interplay among cultural intelligence, organizational position level, cultural flow direction and expatriate adaptation, using a data set of 387 expatriate on cross-border transitions along the Belt & Road area.FindingsThe authors find that both organizational position level and cultural flow moderate the relationship between cultural intelligence and expatriate adaptation, whereby the relationship is contingent on the interaction of organizational position status and assignment directions between high power distance and low power distance host environments.Originality/valuePrevious research has shown that higher levels of cultural intelligence are positively related to better expatriate adaptation. However, there is a lack of research on the effect of position difference and cultural flow on such relationship. Our study is among the first to examine how the interaction between cultural flow and organizational position level influences the cultural intelligence (CI) and cultural adjustment relationship in cross-cultural transitions.

Mapping the contours of fairness

2014 ◽  
Vol 1 (2) ◽  
pp. 191-204 ◽  
Author(s):  
Lilian Otaye ◽  
Wilson Wong
Keyword(s):  
Job Satisfaction ◽  
Factor Analysis ◽  
Regression Analysis ◽  
Turnover Intention ◽  
Content Type ◽  
Mediating Role ◽  
The Uk ◽  
The Relationship

Purpose – The purpose of this paper is to explore the contours of fairness by showing how different facets of fairness impact three important employee outcomes (job satisfaction, turnover intention and employer advocacy) and examining the mediating role of quality of management and leadership (through perceptions of both senior management and the quality of exchange with immediate supervisors) in attenuating negative impacts of unfairness on these outcomes. The study extends the concept of fairness beyond the traditional focus on organizational justice and models the mediating role of leadership on the relationship between (un)fairness and the three employee-level outcomes in a sample of employees representative of the UK workforce. Design/methodology/approach – Data were obtained from a nationally representative sample of 2,067 employees in the UK. Exploratory factor analysis and then confirmatory factor analysis is used to refine three unfairness factors and address their dimensionality of the unfairness scale and then multiple regression analysis is used to test a fairness-leadership-employee performance outcome model. Findings – Results of multiple regression analysis revealed that both trust in leadership and leader-member exchange partially mediate the relationship between organizational (un)fairness and job satisfaction, advocacy and turnover intention, respectively. Practical implications – The findings highlight the important role that leaders play in influencing the relationship between perception of unfairness and employee outcomes. This has implications for both theory and practice as it suggests that the pattern of inclusion that leaders create through the relationships that they develop with their followers has a significant impact on the relationship between unfairness and the work outcomes. They not only must manage traditional perceptions of justice, but also the assessments employees make about trust in management judgements and the perceived consequences of such judgements. Originality/value – In an environment where perceptions of unfairness are becoming both more endemic but also more complex, the study shows that both senior leaders and immediate supervisors have important agency in managing negative consequences. Through the measurement of satisfaction, turnover intention and employer advocacy it also provides potential links to link fairness into the engagement literature.

Measurement of innovation capability in supply chain: an exploratory study

2016 ◽  
Vol 8 (4) ◽  
pp. 331-349 ◽  
Author(s):  
Faisal Iddris
Keyword(s):  
Factor Analysis ◽  
Supply Chain ◽  
Exploratory Factor Analysis ◽  
Convergent Validity ◽  
Measurement Scale ◽  
Unique Contribution ◽  
Innovation Capability ◽  
Content Type ◽  
Four Dimensions ◽  
Idea Management

Purpose The purpose of this paper is to explore the development of innovation capability construct measures in the context of supply chain and to objectively identify the key dimensions for stimulating focal firms’ innovativeness. Design/methodology/approach The scale items for this research were obtained from extant literature. The data were collected from homogenous sample of 117 Ghanaian middle level managers (respondents). Exploratory factor analysis was used to identify the main dimensions of innovation capability. Based on the statistical analysis, four dimensions were obtained – idea management, idea implementation, collaboration and learning – and the convergent validity, discriminant validity, nomological validity and reliability tests indicate that the scales are valid and reliable Findings Four dimensions (factors) of innovation capability were identified from the exploratory factor analysis. These dimensions were labelled as idea management, idea implementation, collaboration and learning. The results indicate that the integration of the dimensions of innovation capability may stimulate a focal firm’s innovativeness. Research limitations/implications First, the measurement scale might not capture all the important dimensions of innovation capability. Second, the judgmental sampling used in this study means that the result cannot be generalised to the entire supply chain population, third, the sample was drawn from one geographical location using non-probability sampling technique. Practical implications The measures provide supply chain managers with a better approach of understanding the innovation capability in their supply chain. For instance, the measurement of supply chain’s innovation capability should help supply chain managers to determine the important innovation areas that need attention most and to permit them to respond to challenges posed by any kind of innovation capability dimension that needs to be enhanced. Originality/value The unique contribution of this paper is the development innovation capability measurement scale in the context of supply chain.

Determinants of stock market reaction to cross-border acquisitions: evidence from emerging economies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Samta Jain ◽  
Smita Kashiramka ◽  
P. K. Jain
Keyword(s):  
Emerging Economies ◽  
Value Creation ◽  
Global Economy ◽  
Emerging Market ◽  
Research Work ◽  
Abnormal Returns ◽  
Content Type ◽  
Cross Border ◽  
Country Level ◽  
Acquiring Firms

PurposeThe global economy has witnessed an exponential increase in cross-border acquisitions (CBAs) by emerging market companies (EMCs), demanding a relook at their internationalization strategy. The purpose of the study is to investigate whether the announcement of CBAs by EMCs creates value for the equity-holders of acquiring firms and identify factors affecting the valuation of acquiring companies.Design/methodology/approachThe paper investigates the announcement impact of CBAs of CNX Nifty 500 Indian and SSE 380 Chinese companies. The event study analysis of 553 Indian and 125 Chinese acquisitions supports the contention that CBAs are indeed a strategic choice of EMCs for value creation.FindingsCBAs generate positive and statistically significant abnormal returns for shareholders of both Indian and Chinese acquirers. The markets, however, differ in terms of their motivations; country-level factors have been observed to exert significant influence on the returns of Indian acquirers. Indian companies experience larger value creation on acquiring firms established in developed, institutionally closer and/or economically distant markets. The findings support the asset-seeking motive of Indian companies.Originality/valueThe research work contributes to the evolving stream of CBAs literature with a focus on the globalization strategies of EMCs. The present study is a modest attempt to lay the foundation for a new theoretical framework (asset-seeking perspective) of overseas acquisitions from emerging economies. The existing studies on emerging economies have emphasized, in isolation, either Indian CBAs or international acquisitions by Chinese firms. Being so, the study is unique and original in the sense that it is a comparative study of India and China.

Added cultural distance and ownership in cross-border acquisitions

2020 ◽  
Vol 27 (3) ◽  
pp. 487-510 ◽  
Author(s):  
Hyun Gon Kim ◽  
Ajai S. Gaur ◽  
Debmalya Mukherjee
Keyword(s):  
Cultural Distance ◽  
Geographic Distance ◽  
Target Firm ◽  
Content Type ◽  
Cross Border ◽  
Focal Firm ◽  
Final Sample ◽  
The Relationship ◽  
Financial Securities ◽  
Different Sources

PurposeAs multinational companies enter different countries, the extent of cultural unfamiliarity they face depends on their most recent entry. We examine this pattern of added cultural distance between a newly entered target country and the closest previous one and its effect on ownership decisions in each cross-border acquisition (CBA). We also examine the combined effect of added cultural distance and time between successive acquisitions on such decisions.Design/methodology/approachThe sample came from the Thomson Financial Securities Data Corporation (SDC) Platinum database, which spans different source and target countries for a 25-year period (1980–2014). We collected firm- (acquirer and target), industry-, country-, and transaction-level variables from SDC. After merging information from the different sources, the final sample comprised 10,423 CBA observations from 138 target countries.FindingsOur findings reveal that the ownership share decision is affected negatively by added cultural distance but positively by the time between two successive acquisitions. In addition, prior ownership and geographic distance moderate the relationship between added cultural distance and ownership in CBAs.Practical implicationsOur findings suggest that MNCs' managers who consider CBAs need to carefully examine closest previous target information and CBA experience, rather than focusing on direct cultural distance between the focal firm and target firm. Additionally, they should also consider the relevance of key contingency factors.Originality/valueWe disentangle the effects of added cultural distance on CBA ownership decisions and explore the boundary conditions of this relationship.

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