Buyer Supplier Research Articles

Dyadic Reputations, Images, and Credibility: The Shared Nature of Intangible Resources in Buyer–Supplier Relationships

Dyadic Reputations, Images, and Credibility: The Shared Nature of Intangible Resources in Buyer–Supplier Relationships

Supply chain adjustments to tariff shocks: Evidence from firm trade linkages in the 2018-2019 U.S. trade war

We use the 2018-2019 U.S. trade war to examine how supply chains adjustments to a tariff cost shock affect imports. Using confidential trade data, we show that the decline in imports of tariffed goods during the trade war was driven primarily by the exit of U.S. firms from import markets, discontinued buyer–supplier relationships, and reduced entry into importing. However, tariffed products where imports were concentrated in fewer suppliers exhibited smaller declines in import growth.

Friendshoring: how geopolitical tensions affect foreign sourcing, supply base complexity, and sub-tier supplier sharing

PurposeThis paper examines the influence of geopolitical tensions—operationalized as political divergence between governments—on firms’ foreign supply bases and the resulting effects on supply base complexity and sub-tier supplier sharing.Design/methodology/approachThe authors conduct panel data regression analyses over the period 2003–2019 to investigate whether political divergence affects foreign supply bases for 2,858 US firms sourcing from 99 countries and to examine how political divergence exposure impacts the supply network structures of 853 US firms.FindingsFirms reduce their supply bases in countries exposed to heightened geopolitical tensions. These supply chain adjustments are associated with increased supply base complexity and greater sub-tier supplier sharing.Originality/valueThis study highlights the importance of state relations in global supply chain reconfiguration. Political divergence between governments provides a dual-view of political risk (i.e. buyer–supplier countries), which can help firms anticipate geopolitical disruptions. While reducing supply bases in foreign countries facing heightened geopolitical tensions is intended to mitigate disruptions, these supply base adjustments are linked to increased supply base complexity and sub-tier supplier sharing, thereby exposing firms to other types of supply disruptions. Additionally, this research contributes to understanding the effects of geopolitical tensions on supply base complexity through the lenses of transaction cost economics and resource dependence theory.

Different paths to improving together: a taxonomy of buyer-supplier collaborations for sustainability in food supply networks

Purpose Extant research shows collaboration among supply chain (SC) partners can address the significant environmental impacts of industrial food systems, but can be risky and resource-intensive. Past studies have predominantly treated buyer–supplier sustainability collaborations as a single aggregate concept missing the theoretical richness. This study aims to provide a more nuanced understanding of these collaborations for jointly improving sustainable food supply networks. Design/methodology/approach A multiple case study was conducted covering 8 SCs in the Dutch food processing industry, using data from 27 interviewees and extensive secondary material. Findings By applying the dynamic relational view, this study identifies three types of buyer–supplier collaboration, reflecting three paths of sustainable value creation: (1) the bilateral path, featuring equal participation and extensive collaboration, yielding substantial environmental and economic benefits; (2) the buyer-driven path, where the buyer leads the collaboration to address sustainability issues that are raised by stakeholders, relying on supplier expertise to improve SC traceability and sustainability reputation, albeit at higher costs; (3) the supplier-driven path, where the supplier leads the collaboration for incremental environmental and economic improvements. Practical implications The taxonomy results provide practical guidelines to assist managers in selecting the most suitable collaboration type for their specific sustainability goals and more effectively address sustainability challenges. Originality/value The three identified types of collaboration form a novel taxonomy for improving sustainability in food supply networks, representing different paths for SC partners to achieve progressively more substantial sustainability improvements. This taxonomy challenges the perspective that adopting sustainability invariably leads to increased costs by providing evidence of simultaneous economic and environmental improvements.

The effect of shared ecological value on buyer–supplier relationship within mountaineering tourism

Shared values play an important role in attracting new tourists, retaining existing ones and gaining an important competitive advantage. Building upon the Commitment-Trust model, this study tested the role of shared ecological values in the creation of tourist trust and relationship commitment, and finally tourist behavioral intention. To test the hypotheses, a sample consisting of 480 mountaineering tourists of two representative travel agencies were surveyed, and a mixed-method approach based on a quantitative survey (n = 436) and qualitative interviews (n = 60) was also adopted to examine their relationships. Results revealed that shared ecological values between tourists and travel agencies were significantly negative predictors of credibility, while credibility and benevolence emerged as significantly positive predictors of relationship commitment. Moreover, credibility and relationship commitment were partially positively predictors of tourist’s behavioral intentions. The findings enrich the extant knowledge on mountaineering tourist relationship marketing and human-nature relationships and provide implications for destination management and wildlife protection.

Determinants of information asymmetry in agri-food supply chains

PurposeWith its presence, which can create inefficiencies, uncertainties and risks, information asymmetry poses a significant challenge to successfully managing the agri-food supply chain (AFSC). Understanding the variables that influence information asymmetry is crucial for devising more effective strategies to mitigate it. This study, therefore, explores the variables that influence information asymmetry in the AFSC.Design/methodology/approachA qualitative analysis was conducted, relying on semi-structured interviews with 17 experts representing different actors in the AFSC (e.g. seed producers, retailers, etc.) in Germany. The collected data was analysed using the GABEK® method.FindingsThe study confirms that the influencing variables derived from the existing theory, such as price performance, digitalisation, environmental, process and quality measures, contribute to information asymmetry. It further reveals new variables that associate with information asymmetry, including documentation requirements, increasing regulation, consumer behaviour, incorrect data within the company as well as crises, political conflicts and supplier–buyer conflicts. Furthermore, the study shows that supply chain actors counteract asymmetry by focusing on social behaviour and monitoring suppliers through key performance indicators, employees and social aspects.Research limitations/implicationsThe study was limited to the universal influence of the variables on information asymmetry in the AFSC, making the magnitude of the influence and its context-specific nature unexplained.Originality/valueThis study is one of the very few that examines information asymmetry across the AFSC from the perspective of different actors, providing a more overarching and deeper understanding of information asymmetry.

Harnessing the innovative potential of start‐ups for corporate entrepreneurship in incumbent firms: a study of asymmetric buyer–supplier relationships

Corporate entrepreneurship is critical for incumbent firms to ensure continuous organizational renewal. Asymmetric buyer–supplier relationships with start‐ups, known as “venture clienting,” serve as an entrepreneurial process wherein incumbent firms integrate innovative technologies acquired from start‐ups into their processes and products to drive organizational renewal. Prior research, however, lacks insights into how incumbent firms manage these asymmetric buyer–supplier relationships and overcome the challenges that differences in culture, governance structure, and negotiating power pose. We address this gap by drawing on data from 52 semi‐structured interviews with key decision makers in a multi‐case study of six incumbent firms engaging in venture clienting. Based on the results of our cross‐case analysis, we inductively distill three maturity stages of venture clienting within incumbent firms (i.e., initiation, complexification, and pruning) and the triggers for each stage. We also shed light on the dynamic capabilities that firms develop in each maturity stage and outline the enablers that foster their development. Furthermore, we reveal how these dynamic capabilities affect corporate entrepreneurship in the incumbent firm, in terms of opportunity recognition and technology integration success.

Great Expectations: The Moderating Effects of Supplier Service Model and Market Dynamics on Relational Contract Performance

Under a relational contract, the value placed on expected future business must outweigh the short-term temptations to deviate for the buyer–supplier relationship to persist. Operational and relational factors that influence this trade-off have been explored, however, there is a considerable lack of research on the moderating effects of supplier and market characteristics. We offer insights into how supplier service models and market dynamics impact suppliers’ decisions to renege on the relational contract. Limited access to transactional and contractual data has restricted previous exploration. We overcome this limitation with a detailed dataset in the for-hire truckload transportation sector. We find that a third-party brokerage service model is better able to overcome operational demand challenges and maintain service due to lower capacity constraints and pooling effects as compared to asset-based providers. Furthermore, when the overall market is capacity-constrained, long-term relationships become less of a deterrent for suppliers to reject business. In addition, during tightly constrained markets, suppliers respond with higher rejection rates to short-term demand surges but not to historical demand variability.

Exploring the role of heuristics in buyer–supplier relationship dynamics

PurposeThis paper aims to explore the role of heuristics in the reassessment of relationship events and how it influences perceptions of commitment, fairness and relationship value. It answers the question of how heuristics interrelate with decision-makers’ evolving interpretations of commitment, fairness and relationship value in a specific buyer-supplier relationship.Design/methodology/approachThis paper presents data from a longitudinal study of an evolving buyer–supplier relationship involving a multinational supplier of fast-moving consumer goods and a medium-sized and highly specialized supplier. It analyzes qualitative data about the use of heuristics in buyer–supplier relationships, and it is based on evidence collected from interviews, presentations, meetings and secondary data.FindingsThis paper shows that a buyer’s unexpected behavior can lead to a reassessment of commitment, fairness and relationship value. Heuristics can delay relationship reassessments, however. The case shows that heuristics have a preserving quality and that the effect of transformative events only slowly changes the perception of the value of the relationship. In this change process, the link between commitment, perceived fairness and heuristics is crucial.Originality/valueThis paper contributes to research on the relationship between buyer–supplier relationships and heuristics. In particular, the paper contributes to the understanding of how relational events in a buyer-supplier relationship change the commitment and perception of fairness, and how heuristics change accordingly. On a more overarching level, the study contributes to our understanding of business relationship dynamics.

The paradoxical nature of greening transportation: an analysis of tensions in buyer–supplier dyads

PurposeContradictory sustainability priorities and perspectives among supply chain actors in greening transportation can be challenging. Several of these contradictions can be described as paradoxes (i.e. interests that are logical in themselves, but become irrational when perceived together). The aim of this study is to increase the understanding of paradoxical tensions hampering the greening of transportation in transport buyer–supplier dyads.Design/methodology/approachA case study method targeting greening transportation in two transport buyer–supplier dyads was applied, followed by an analysis with a point-of-departure in paradox theory.FindingsTensions related to performing, belonging, learning and organizing paradoxes in greening transportation were identified. These tensions arise as a consequence of actions, perspectives and other tensions, within three identified loci in individual companies and in dyads.Research limitations/implicationsBy identifying examples of tensions through the lens of paradoxes in a particular setting, this study provides an increased understanding of why the transition toward green transportation goes slow, despite the high ambitions of involved actors. The suggested framework provides a novel contribution to the literature that further increases the understanding of tensions, by providing additional insights into where tensions arise and how actions, perspectives and tensions in one place of a locus spectrum can disseminate along that spectrum.Originality/valueThis study is original because it applies paradox theory and the four categories of performing, belonging, learning and organizing within the field of greening transportation, and in particular as a lens to study interactions between different actors.

Legitimacy and transparency in dyadic supply chains: Does competition intensity matter?

Working only with suppliers that meet certain social and environmental standards has become a new norm in the selection of business partners for many firms, which encourages suppliers to become more transparent to gain a competitive advantage. This study investigates whether buyer legitimacy is associated with supply chain transparency from an environmental, social, and governance (ESG) perspective. Using a dataset of 605 dyadic relationships from Chinese listed firms for the period 2011–2019, we empirically examine our conceptual framework using hierarchical linear regression models. We demonstrate that buyer legitimacy is positively associated with supplier ESG transparency in dyadic supply chains. We further find that the supplier's competition intensity negatively moderates the positive relationship between buyer legitimacy and supplier ESG transparency. Overall, our findings contribute to a better understanding of organizational legitimacy and the buyer–supplier relationship and offer practical guidelines for enhancing supply chain transparency.

Sustainable purchasing supply management assessment in construction supply chains: a design science research approach

Purpose In response to multiple disruptions, the purchasing supply management (PSM) function in construction supply chain management (CSCM) has gained prominence due to stakeholder pressures, dynamic market conditions and the need to adhere to complex sustainability, safety and health regulations and standards. However, there is a noticeable absence of empirical research on measuring and mitigating PSM vulnerabilities, especially considering the distinct challenges faced by large engineer-to-order project-oriented manufacturers. To address these issues, the purpose of this study is to develop and test a novel method to assist companies in construction supply chains in assessing and managing risks associated with sustainable procuring and sourcing materials. Design/methodology/approach Grounded in the literature gaps on construction PSM and a real case supply chain, the research uses the design science research (DSR) approach to develop an integrated method for assessing PSM strategies in this sector. The method integrates three essential purchasing dimensions: supply risks, profit impact and sustainability risks of materials, supported by nine subdimensions. Empirical validation took place within a multinational European construction company based in Denmark. Findings Findings from the supplier–buyer relationships confirmed that the developed method allows for the identification of the key components that significantly impact supplier–buyer relationships, profitability and sustainability. The research further suggests that construction supply chain managers and purchasing practitioners can use the proposed method to evaluate PSM, thus enabling them to make more informed decisions. Practical implications Through the utilization of the proposed artifact, construction companies can take a more proactive approach to address PSM uncertainties, thereby enhancing their competitiveness in dynamic construction supply chains. Originality/value The research contributes to bridging the theory and practice, providing valuable assistance for construction companies assessing and managing the PSM and supply risks within global construction value chains. This paper provides original insights for the CSCM, aiding in adopting competitive PSM strategies to improve overall supply chain performance.

Calculative trust, benevolent trust and supplier opportunism: the double edged role of IT infrastructure capability

PurposeThis paper aims to explore how two dimensions of trust, calculative trust and benevolent trust, affect supplier opportunism, and further investigates how information technology (IT) infrastructure capability moderates the relationship between calculative trust, benevolent trust and local supplier opportunism.Design/methodology/approachThis study uses ordinary least square regression to test the hypotheses, using survey data from 164 buyer–supplier relationships.FindingsThe findings suggest that both rational and emotional dimensions of trust, calculative trust and benevolent trust, have negative effect on the opportunistic behavior of suppliers. Furthermore, IT infrastructure capability amplifies the inhibitory effect of calculative trust on supplier’s opportunism, while diminishing the effect of benevolent trust on suppressing supplier’s opportunism.Originality/valueThis study investigates the impacts of both rational and emotional dimensions of trust on opportunistic behavior, thereby enhancing the comprehension of the multifaceted nature of trust in interfirm relationships and contributing valuable insights into interorganizational relationship governance. Moreover, this study reveals the double-edged moderating roles of IT infrastructure capability in supply chain relationships, presenting innovative perspectives within the research on exploring the role of IT capability in business-to-business marketing relationships.

Conflict and Contract Use in Cross-Cultural Buyer–Supplier Relationships: The Role of Cultural Context

Conflict and Contract Use in Cross-Cultural Buyer–Supplier Relationships: The Role of Cultural Context

Supplier–buyer (in)congruence in environmental management accounting for sustainable development in the context of Japan

AbstractThis study provides a comprehensive perspective on the integration of Environmental Management Accounting (EMA) in translating environmental management strategies into corporate outcomes, both at the firm and supply chain levels. Grounded in legitimacy theory and agency theory, we introduce a conceptual framework to comprehensively investigate the impact of EMA implementation on corporate environmental performance (CEP) and corporate financial performance (CFP). Additionally, by considering the dynamics of supplier–buyer relationships, this research delves into the influence of supplier–buyer alignment in EMA on corporate performance, encompassing CEP and CFP within a supply network. To collect empirical data, we partnered with two prominent information firms in Japan, Toyo Keizai Inc. and., Nikkei Inc and gathered EMA data from chief financial officers of publicly listed companies spanning multiple industries in Japan. We manually paired these public firms with their business partners, including industry buyers and suppliers, to establish focal firm‐business partner pairs. Our findings indicate a positive correlation between the extent of EMA implementation and both CEP and CFP. Furthermore, we observe that board gender diversity enhances the relationship between EMA implementation and CFP, while it exerts no influence on the connection between EMA implementation and CEP. Lastly, our study reveals that supplier–buyer congruence in EMA implementation yields positive effects on the performance of focal firms operating within a supply chain network.

Influence of supplier development on supplier satisfaction: a mediating role of buyer–supplier relationship

PurposeThe study aims to understand the influence of supplier development (SD) activities on supplier satisfaction through the lens of social capital theory (SCT) and to understand the mediating role of the buyer–supplier relationship (BSR) in improving supplier satisfaction (SS).Design/methodology/approachThe research is based on survey of 110 key informants belonging to 50 medium to small supplier companies in the Indian automotive sector. We employed the PLS variance-based modelling technique for the data analysis.FindingsThe investigation resulted in a comprehensive framework for SD activities influencing SS. Further findings recognize a positive influence of SD activities such as payment terms and BSR, which are components of structural social capital on the SS. SD activities such as quality management and delivery, which are indicators of relational capital, affect SS through the mediation of BSR.Originality/valueThe study confirms the role of BSR in SS. The deliberations can help the managers of buyer and supplier firms and researchers to classify and strategize SD activities to improve performance and BSR to become preferred customers through SS.

Accounting information sharing within buyer-supplier collaborations: Insights from a developing country

Background: The significance of the context, or the environment, is pivotal in influencing the practices of management accounting.Objectives: This article aims to explore the significance, methods and challenges of accounting information exchange in buyer–supplier collaborations.Method: In buyer–supplier collaborations, data are gathered from 13 semi-structured interviews and 250 questionnaires. The analysis is conducted using SPSS version 25, employing non-parametric Kruskal–Wallis test and content analysis techniques.Results: Respondents recognise its benefits but prefer informal communication. Challenges such as diverse systems and mistrust hinder formal sharing. Despite obstacles, informal channels remain effective, although concerns about data leakage persist, leading to a conservative approach.Conclusion: In the Egyptian textile supply chain, members prioritise individual goals over collective ones. Informal methods, such as backdoor access, facilitate accounting information sharing among buyer–supplier partnerships. Formal sharing protocols are lacking, with limited one-way technical data exchange. Trust issues and data security concerns persist. Despite the absence of formal disclosure, cost estimations remain feasible. The company adopts a conservative approach, limiting access to records in most cases.Contribution: In essence, the article not only sheds light on the complexities and nuances surrounding accounting information sharing in the textile supply chain but also emphasises the resilience of informal communication channels in overcoming challenges. As the industry navigates these dynamics, recognising the importance of relational ties and informal exchanges could be pivotal in fostering a more efficient and collaborative supply chain ecosystem.

Being your ‘authentic self’: A key to success in the buyer–supplier relationship in indirect procurement

Early in a career as a procurement professional, practitioners are focused on the goals of the company and how to achieve their own career goals as they traverse the buyer–supplier relationships, obtaining the company’s needed goods and services. For practitioners in the indirect categories, the sheer number of suppliers that must be interacted with is sometimes daunting. Finding the keys to building successful buyer–supplier relationships is often reduced to a formulaic transactional process. To be truly successful, you must become well versed in how your own personal traits become key in building relationships with suppliers. Suppliers that provide goods and services, considered indirect purchases, are not always transactional relationships. While these suppliers do not provide raw materials for your company’s production, they supply the infrastructure that supports the whole company and helps bring those finished products or services to market. With that in mind, it is integral to the success of your company that you have good relationships with these suppliers, built on the foundation of trust. In building that trust, the practitioner must become comfortable with the aspects of transparency, integrity and being their authentic self when working with the representatives of their suppliers. While there are risks and pitfalls that must be kept in mind, the personal traits that you present to your suppliers could very well be the key to your success or failure in your role as a procurement professional.

The influence of collective emotions in the response to supply chain disruptions: a buyer–supplier empirical approach

PurposeThe objective of this study is to examine how emotions play a role in the firm’s reaction to disruptions in the supply chain. Drawing on the upper echelons theory, we evaluate whether managers’ perception of collective emotions (CEs) in the supply environment affects the execution of specific organisational responses (bridging and buffering) to disruptive events. Furthermore, we investigate to what extent companies' own capabilities, such as supply chain resilience, influence this relationship.Design/methodology/approachA web-based survey was distributed among managers involved in supply chain relationship management (e.g. supply chain or purchasing managers). LinkedIn was used to identify and contact adequate respondents, and 221 valid responses were collected. The proposed theoretical model was empirically tested using structural equation modelling based on partial least squares (PLS-SEM).FindingsResults suggest that emotions can shape a firm's response to supply chain disruptions. In fact, managers are more likely to pursue both bridging and buffering strategies as their perception of CEs increases. However, the intensity and underlying motivations for pursuing each strategy differ.Originality/valueWhen CEs are perceived by buyer managers, stronger supply chain resilience incentivises the choice of cooperative practices within existing suppliers, thereby reinforcing pre-existing links. We conclude that combining companies' inherent variables or capabilities with managerial cognition and perceptions can improve our understanding of decision-making processes and buyer–supplier relationships.

Trust and control dynamics in buyer–supplier relationships: The case of organic honey certification in Cuba

AbstractThe high complexity of international supply chain (SC) relationships requires mechanisms to build trust among stakeholders. Therefore, understanding the underlying mechanisms of developing and maintaining high trust levels in exchange relationships is essential to managing associated SC risks. Third‐party certification (TPC) is a widely used, control‐based governance mechanism in organic food production that aims to help build trust. Drawing on the concepts of trust and control, this article presents an analytical framework for assessing TPC's effects on trust–control dynamics within food SCs. By using qualitative data on a buyer–supplier relationship between Cuba and Europe, this case illustrates the mutually reinforcing relationship between trust and control. We also demonstrate how trust is built across multiple levels. By considering contextual factors, the case illustrates controls' impact on building institutional trust while also pointing out TPC's limited efficacy in enhancing collaboration in SCs.