Choosing Startups as Suppliers: A Supplier Selection Archetypes Typology

Recent research demonstrates the value of examining collaborations between established organizations and startups via the lens of the buyer–supplier relationship. However, enterprises must first find, analyze, and select potential startups as suppliers before they can exploit startups' resources and talents in a buyer–supplier relationship. Due to the fact that earlier research has focused exclusively on how purchasing firms select established firms as suppliers, it is unknown which processes, tools, or organizational approaches purchasing organizations employ when selecting startup firms as suppliers. These suppliers are qualitatively distinct in that they lack organizational structure, financial resources, and operational competencies, offering a substantial risk to purchasing organizations. This inductive, qualitative case study research elicits data from twenty established purchasing firms and examines how they choose startup suppliers. We begin by identifying five design motifs that differentiate purchasing firms' selection procedures. We create a typology of three supplier selection paradigms based on these themes. The findings suggest that enterprises who are ready and able to adjust their selection technique to startups should exhibit a higher level of selection performance, implying a greater likelihood of selecting acceptable startups as suppliers. The findings contribute to the literature on supplier selection and shed light on the burgeoning sector of new venture suppliers.

Supplier change, market competition and enterprise innovation

PurposeThe purpose of this paper is to study enterprise innovation in the perspective of external supplier relationship. On this purpose, this paper examines the impact of supplier change on enterprise innovation with the moderating role of market competition.Design/methodology/approachUsing 2012–2020 empirical data of Chinese listed manufacturing enterprises, this paper investigates the relationship among supplier change, market competition and enterprise innovation through a two-way interaction model.FindingsThe results show that supplier change has a negative impact on enterprise innovation. And market competition intensifies the negative relationship between supplier change and enterprise innovation. Additional analyses indicate that the main effect and the moderating effect are more significant when the enterprise is non-state-owned or has lower ownership concentration.Originality/valueThis paper studies enterprise innovation from the perspective of external stakeholders. It focuses on supplier relationship in a dynamic variation view, instead of the traditional static ones. Moreover, this paper explores the contingency effect of market competition and gives practical implications for managers to adjust innovation strategy flexibly.

Modeling the interrelationships among environmental forces, organizational capabilities and supply chain sustainability

This research aimed to investigate the interrelationships among environmental forces, organizational capabilities, and supply chain sustainability. The mediation role of organizational capabilities and supplier relationship between environmental forces and Supply chain Sustainability were analyzed. Dataset obtained from 410 managers in the Jordanian food industry were used. PLS-SEM was conducted for analysis purposes. The findings reveal that environmental forces and organizational capabilities directly impact supply chain sustainability. The findings have additionally shown that supplier relationships and organizational capabilities played a mediation role between environmental forces and supply chain sustainability. The results show that companies might derive significant benefits from sustainable practices and consider them to maximize the success level of the supply chain sustainability initiative.

Supply Chain Finance, Performance and Risk: How Do SMEs Adjust Their Buyer-Supplier Relationship for Competitiveness?

Supply chain finance (SCF) has attracted considerable attention being an innovative business model that allows firms, especially small- and medium-sized enterprises (SMEs), to convert illiquid assets into cash without incurring additional liabilities. However, its effects on SME performance and risk have been insufficiently studied. The competitiveness of SMEs depends on performance enhancement and risk mitigation. Thus, this study constructs a scaled-decile rank transformation of account receivable turnover to gauge the degree to which a supplier implements SCF, thereby examining the relationship between SCF, performance, and risk. We collect data on 4,679 SMEs from the Chinese manufacturing sector. Thereafter, hierarchical linear regression, a complex form of multiple linear regression analysis, is employed to test the hypotheses. The results indicate that an SME’s SCF adoption positively impacts its performance but negatively impacts its risk. To further explore cross-sectional variability, we investigated the buyer-supplier relationship’s moderating role. Results show that an increase in customer concentration strengthens both the positive effects of SCF on performance and the negative effects of SCF on risk. Overall, our study contributes to the literature on the interface of operations and finance in supply chains by exploring the multiple facets of SCF adoption and highlighting the moderating role of buyer-supplier relationship in SCF and SME competitiveness. Finally, we provide managerial implications for SMEs and financial service providers by validating the value of SCF implementation and the buyer-supplier relationship management in forging competitive advantages.

Influence of dependence on social capital and operational performance: a study of the textile and clothing industry

Purpose The purpose of this study is to investigate empirically whether the presence of dependence influences the strength and direction of the relationship between social capital and operational performance. Design/methodology/approach The authors tested two effects, moderator and mediator, of the dependence between social capital and operational performance in the buyer–supplier relationship in the supply chain. The authors use dependence as a dichotomous variable and empirically test the hypotheses using hierarchical linear regression from data collected from 117 industrial companies in Brazil. Findings The results show that although dependence does not have a mediating effect on social capital shares in operational performance, it moderates the strength of trust actions in relation to cost, delivery, flexibility and innovativeness of the buyer. Practical implications As for the practical implications, in a buyer–supplier relationship, managers may not be fully capable of decreasing dependence and thus increasing the effect of trust actions on operational performance. Originality/value For management practices in the textile and clothing industry, social capital actions contribute to strategic objectives, increasing collaboration between supply chain partners, and for operations, offering more options in managing social ties.

The Effect of Top Management Commitment on Firm Performance through the Green Purchasing and Supplier Relationship Management in 3-Star Hotel Industry in Surabaya

The local government needs to facilitate the Hotel through industry regulations, and one of the requirements is the obligation of each Hotel to pay attention to environmentally friendly practices. This study investigates the effect of top management commitment on firm performance through green purchasing and supplier relationship management in the 3-star Hotel. This study used a Census survey for all 71 3-star Hotel domiciled in the City of Surabaya. Data collection used a questionnaire with a five-point Likert scale. Questionnaire distribution was conducted by email, social media, and direct delivery to the respondent. Sixty-one from seventy-one questionnaires, a response rate of 86%, were filled in duly and considered valid for further analysis. Data analysis used the partial least square technique by utilizing Smart PLS. The result of the analysis demonstrated that top management commitment affects supplier relationship management by path coefficient of 0.544. Top management commitment affects firm performance with path coefficient of 0.281. However, this study indicated that top management commitment does not affect green purchasing. Furthermore, supplier relationship management has a significant effect on green purchasing with path coefficient of 0.391. Similarly, supplier relationship management also affects firm performance with a path coefficient of 0.377. Finally, Green purchasing significantly improves firm performance with a path coefficient of 0.226. This work provides a new insight for the manager on how to increase firm performance in the context of supply chain management. This study could contribute to enriching the current research in supply chain management.

Decision model with quantification of buyer-supplier trust in advanced technology enterprises

PurposeIn the buyer-supplier relationship of a high-technology enterprise, the concepts of trust and risk are closely intertwined. Entering into a buyer-supplier relationship inherently involves a degree of risk, since there is always an opportunity for one of the parties to act opportunistically. Purchasing and supply managers play an important role in reducing the firm's risk profile, and must make decisions about whether or not to enter into, or remain in, a relationship with a supplier based on a subjective assessment of trust and risk.Design/methodology/approachIn this paper, the authors seek to explore how trust in the buyer-supplier relationship can be quantitatively modeled in the presence of risk. The authors develop a model of trust between a buyer and supplier as a risk-based decision, in which a buyer decides to place trust in a supplier, who may either act cooperatively or opportunistically. The authors use a case study of intellectual property (IP) piracy in the electronics industry to illustrate the conceptual discussion and model development.FindingsThe authors produce a generalizable model that can be used to aid in decision-making and risk analysis for potential supply-chain partnerships, and is both a theoretical and practical innovation. However, the model can benefit a variety of high-technology enterprises.Originality/valueWhile the topic of trust is widely discussed, few studies have attempted to derive a quantitative model to support trust-based decision making. This paper advanced the field of supply chain management by developing a model which relates risk and trust in the buyer-supplier relationship.