Tie Strength and Value Creation in the Buyer-Supplier Context: A U-Shaped Relation Moderated by Dependence Asymmetry

2015 ◽  
Vol 44 (3) ◽  
pp. 1029-1064 ◽  
Author(s):  
Yusoon Kim ◽  
Thomas Y. Choi

This study integrates two disparate genres within tie-strength literature into one model to investigate the mechanisms for value creation in the buyer-supplier context. This research brings together the opposite ends of the tie-strength continuum: the “weak ties,” which are instrumental in tapping into novel ideas and emerging technologies, and the “strong ties,” which promote joint resource investments and capability development. By doing so, we bring salience to the existence of “intermediate ties” (i.e., the ties of moderate strength) and their implications for value creation. Even though the intermediate ties are likely most common in the buyer-supplier context, they have been given short shrift in the literature. We predict a U-shaped relation, where weak ties and strong ties are more effective than intermediate ties in value creation. Furthermore, we explore the moderating role of dependence asymmetry. Our hypotheses are tested using survey data from a major global automaker and its North American suppliers. The results demonstrate that both the weak and strong buyer-supplier ties lead to higher value creation, whereas intermediate ties do not increase value creation. Also, the study illustrates that, overall, asymmetric buyer-supplier ties show diminished value creation, and this moderating effect is particularly pronounced for intermediate ties.

2015 ◽  
Vol 24 (6) ◽  
pp. 580-595 ◽  
Author(s):  
Mariola Palazon ◽  
María Sicilia ◽  
Manuela Lopez

Purpose – This paper aims to examine the role of Facebook friends on the intention to join brand pages in this social network site (SNS). SNSs have grown in both popularity and use. They allow individuals to articulate their social networks by developing a list of other members on the site with whom they share a connection. These platforms also allow companies to create profiles to promote their brands. However, many firms have jumped into SNSs by creating a “brand page” without fully understanding how to spread it successfully. Design/methodology/approach – Two experiments were developed. In the first one, the authors manipulated how the individual comes to know about brand pages. Participants discovered a brand page through a friend with whom they have either a strong tie or a weak tie. In the second experiment (2 × 2), the authors manipulated tie strength (strong vs weak) and the type of recommendation (active vs passive). Findings – Results of the first study show that as the individual has more experience in Facebook (measured in this paper through satisfaction, past behavior of following brands and Facebook intensity), the effect of tie strength on the intention to join a brand page dilutes. The second study confirms Study 1 and shows that strong ties exert more influence than weak ties when the brand page is actively recommended by Facebook friends. Practical implications – This paper shows that the influence of strong ties is particularly important for individuals with low levels of experience in Facebook. As experience in SNSs is expected to continue growing, managers should not forget the role of weak ties as a source of information for their networked friends. Strong ties only remain more influential than weak ties when the information about the brand page is received through an invitation. Originality/value – This paper explores the interpersonal influences in Facebook, asserting that the influence of tie strength depends on the level of experience in the SNS, and on the way, information about the brand page is received.


2016 ◽  
Vol 20 (01) ◽  
pp. 1650006 ◽  
Author(s):  
KEERAN KOWLASER ◽  
HELENA BARNARD

People differ in terms of the number and strength of ties that they cultivate. Previous literature has tended to focus on either strong ties or many weak ties with a largely unstated assumption that some degree of trade-off exists between the two (underlying trust and novel knowledge, respectively) and their relative contribution to innovation. Within the context of R&D in a SA MNC, this research provided evidence that tie breadth and tie strength are complementary in team innovation. The previously-documented tension between novelty and trust however remains present and becomes evident in the location of ties. Both strong and weak ties contribute most to innovation if they are neither too close (i.e., own team) nor too distant (i.e., outside the MNC). Instead, ties inside the greater R&D unit contributed most to innovation. This role of the location of ties suggests that studies of networks cannot remain limited to tie breadth and strength but has to be rooted in the specific context. This is consistent with prior evidence of innovation within mature and process-driven industries where an in-depth understanding of organisation knowledge is required rather than that of novel technologies. This largely inward orientation has important implications for the competitiveness of emerging MNCs.


2021 ◽  
pp. 097215092110103
Author(s):  
Yadvinder Parmar ◽  
Bikram Jit Singh Mann

This article aims to empirically examine the mediating impact of consumer’s parasocial interaction on the relationship between celebrity images on the consumer’s purchase intentions. It aims to empirically investigate the moderating role of celebrity liking in the formation of consumer’s parasocial interaction. Four different versions of self-administered questionnaire using different celebrities as a stimulus were developed. Data were collected from 484 respondents. Quota cum judgemental sampling method was used for the study. The findings show that parasocial interaction mediates the relationship between celebrity images and purchase intentions. It also reveals positive moderating effect of celebrity liking. It has significant implications for marketers and academicians.


2015 ◽  
Vol 19 (01) ◽  
pp. 1550001
Author(s):  
OLGA BRUYAKA ◽  
FIONA XIAOYING JI ◽  
LINDA F. TEGARDEN ◽  
DONALD E. HATFIELD ◽  
WILLIAM B. LAMB

We develop and test how business entities tap regional and corporate scientific knowledge for their innovations in a revolutionary technology. Building on the knowledge-based view of the firm, we argue that while both regional and corporate scientific knowledge may improve a business entity's innovation, it is the business entity's own accumulative research efforts that improve its ability to absorb regional scientific knowledge. In contrast, we expect and find that the longer the entity has been researching the revolutionary technology, the less likely corporate scientific knowledge will impact the focal entity's innovation. Our results support this theory regarding the moderating effect of a business entity's own accumulative research efforts with corporate scientific knowledge but not with regional knowledge. Further, we find different effects between regional scientific knowledge and innovation among single and multi-location firms.


2016 ◽  
Vol 3 (2) ◽  
pp. 50
Author(s):  
Hood Laeeq ◽  
Arfan Shahzad ◽  
Subramaniam Sri Ramalu ◽  
Muhammad Fareed

In the last three decades, the security issues have been raised in the state of the Punjab (Pakistan) which ultimately leads to the breakdown of the country’s economy. However, the purpose of this paper is to determine the effect of the political interference on the performance of Punjab police (Pakistan) with the moderating role of organizational support. To elicit the findings, a total of 159 survey questionnaires were compiled from station house officers (SHOs) of Punjab police (Pakistan). Furthermore, this study has applied PLS-SEM technique to analyze the data. The findings reveal that a negatively significant effect of political interference on the performance of Punjab police (Pakistan). Moreover, the findings also showed the significant moderating effect of organizational support in the instance of political interference.


The research investigate the impact of foreign shareholding originated from developed and developing countries on the efficiency of acquired local banks in Indonesia during 2007-2017 by including Corporate Governance as a moderating variable. Methodology: Using the secondary aggregate data of 29 commercial banks acquired by foreign shareholders, a panel regression model using econometrics methods of GLS, and DEA were applied to examine the effects of percentage of foreign shareholdings on efficiency of the acquired local banks. The main findings; First, percentage of foreign shareholdings positively affecting efficiency of acquired local banks only if the foreign shareholders is originated from developed countries. Second, the level of economic advancement of the country of origin of foreign shareholders has significant effects on the efficiency of the acquired local banks. Third, the increase in the size of the Board of Directors tends to decrease the efficiency of the acquired local banks and fourth, the presence of Foreign Director has a positive moderating effect on strengthening the effect of percentage of foreign shareholdings on the efficiency of the acquired local banks. Overall, the originality of this studies is that the percentage of foreign shareholdings and its country of origin are two combined factors that cannot be separated in affecting the level of efficiency of its acquired local bank and the fact of significant positive moderating effect of Foreign Director. As policy consideration, monetary authority need to perform strict due diligence on prospective foreign shareholders specifically originated from developing countries, advise banks to maintain the existence of Foreign Director and to encourage small local banks to be merged prior to the acquisition by foreign shareholders.


2012 ◽  
Vol 40 (5) ◽  
pp. 805-813 ◽  
Author(s):  
Wanbo Jiang ◽  
Yunhui Huang ◽  
Gong Chen

We examined how being cooperative and competitive influence student burnout (i. e., students' exhaustion, cynicism, and diminished professional efficacy) and the moderating role of neuroticism. First- and second-year university students (N = 257) completed the measures of cooperativeness, competitiveness, neuroticism, and student burnout. Results show that cooperativeness had a negative correlation with each of the dimensions of burnout. Competitiveness did not have a negative correlation. For an individual with high neuroticism, cooperativeness did not contribute to professional efficacy but competitiveness tended to counteract any diminishing professional efficacy.


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