Customer Supplier Research Articles

Customer Suppliers Relations, Customer Knowledge, Strategic Alliance Licensing Agreement, customer knowledge and Business Performance of Pharmaceutical Firms in Nairobi County

Customer supplier relations, customer knowledge and strategic licensing agreements re sub variables of Relational capital that helps the organization to interact positively with business community members to motivate the potential for wealth creation by enhancing human and structural capital.  Relational capital comprises the knowledge embedded in all the relationships an organization develops whether it is with customers, competitors, suppliers, trade associations or government bodies. The purpose of the study was to test the relationship between, Strategic Alliances, Licensing and Agreements, Customer and Supplier Relations and influence performance of pharmaceutical firms in Nairobi County. The study was carried out in Nairobi since most of the pharmaceutical firms were located here apart from a few, which were based outside Nairobi. The research study adapted three research designs namely: Quantitative, explanatory and descriptive research design. The target population constituted 89 pharmaceutical firms and the sample frame was comprised of 31 local pharmaceutical firms. Thus represented 35% of the total population. Purposive sampling procedure was used to arrive at 31 pharmaceutical firms while judgmental sampling was used to target the human resource managers. Out of the 31 pharmaceutical firms the response rate was 18 companies. The instrument of data collection was a structured questionnaire with questions anchored on a five (5) point Likert type ranking scale which was administered to the respondents. The data processing and analysis was done mainly by the use of logarithmic multiple linear regression analysis. The results and findings of the study indicated that the sub variables of relational capital (customer supplier’s relations, customer knowledge, strategic alliance licensing agreement) influenced business performance of pharmaceutical firms in Nairobi County. The overall model indicated that Customer Suppliers Relations with a P-Value of 0.031and Customer Knowledge with a P-value of 0.070 had positive and significant influence to business performance of pharmaceutical firms in Kenya, while Strategic Alliance Licensing Agreement 0.160 had a positive but insignificant influence on business performance.

The Impact Of Power And Relationship Quality On Value Creation and Appropriation in Buyer–Supplier Relationships

Abstract Business relationships provide the means to create and appropriate superior value in business markets. However, despite the proliferation of research on the phenomenon, many questions remain unaddressed. Previous work focused almost exclusively on value after its creation and its sharing between the two exchange partners. Consequently, the appropriation of value as well as its interaction with value creation remains relatively unknown. Similarly, a few studies have examined the role of relational variables and power asymmetry in customer–supplier exchange relationships. To fill this gap, this study aims to examine the influence of relationship quality and power on value creation and appropriation and ultimately, on satisfaction and relationship continuity. Based on the theory of social exchange, this study proposes a conceptual model, which positions value creation and appropriation as central variables in the nomological network of business relationships. A quantitative study of 174 suppliers was carried out in order to compare the theoretical model with the empirical reality. The results obtained show that the relationship quality promotes greater value creation and appropriation in ongoing business relationships. As for power, its influence differs depending on how it is exercised within the relationship. Moreover, the appropriation of value remains the main driver of partner satisfaction, a sine qua non condition for the continuity of the relationship. This present research contributes to a better understanding of value creation-appropriation in ongoing business relationships. By strategically managing their customer–supplier relationships, managers can create and capture greater value and gain a competitive advantage.

Role of Continuity, Specificity and Frequency of Firm–Supplier Exchanges in Customer Fulfilment: Evidence from Latin America

While past studies showcased the importance of supply side capability in customer orientation, not much has been said on matching the specific aspects of customer side fulfilment with supplier side exchange. The present study broadly aims at establishing the linkage between various aspects of customer orientations and nature of supply chain exchanges. It serves to address the dilemma which the firm faces while choosing the nature of its exchange relationship with supplier and how does this relationship can impact various aspects of customer orientations. We test our hypotheses on 2000 firms from four countries in Latin America. We take advantage of the 2017 World Bank Enterprise Survey. In addition to descriptive statistics, multiple hierarchical regressions were used to test the study hypotheses and use robust variance estimator to deal with sources of heteroskedasticity in the data. The findings revealed that in order to achieve market flexibility in the form of tailor-made customer fulfilment, firms not only require specificity in exchange with suppliers, but also they should not engage in deep and frequent exchange relationship with its suppliers. Therefore, the supply side capability of flexibly searching and screening suppliers and forming ad hoc contracts as per requirements is necessary to achieve market side flexibility in the form of tailor-made customer fulfilments. It is necessary for firms to resort to matching their customer orientations with their supply side strategy. Only close matching of supplier side relational strategies with customer orientation by aligning firm’s supply side flexibility with market flexibility works well for the firms. The present study makes theoretical and practical contributions to the strategic market/customer flexibility, supply chain exchange and customer orientation literature and relational capital perspectives.

STRATEGY OF CUSTOMER SERVICE AS AN IMPORTANT DIRECTION FOR ACHIEVEMENT OF COMPETITIVE ADVANTAGES OF AN INDUSTRIAL ENTERPRISE

The aim of the article is to substantiate theoretical and methodic approaches to comprehension of the role and importance of the strategy of customer service of an industrial enterprise in terms of achievement of its sustainable competitive advantages. The article is devoted to the study and actualization of the strategy of customer service of an industrial enterprise in the context of implementation of the strategic management concept. Solution of the tasks, outlined in the article, is secured by general scientific and specific methods of research, i.e. analysis and synthesis, systematization and generalization.The work has actualized the strategy of customer service of an industrial enterprise in the contexts of implementation of the strategic management concept. The research identifies barriers on the way of the market entry, which are set by producers with a high level of customer service. The main barriers include the used schemes of payment, imposing heavy dependence between a customer and a supplier, as well as arrangement of a broad chain of servicing establishments, which are located at the places of customers’ employment, completion of contracts on continuous supply services, creation of the image of competence concerning services supply. The article examines the features, characterizing customer service of high quality, and identifies relationship between the strategy of competitive advantages of an enterprise and the strategy of customer service.The article supplies argumentation that servicing has become an accelerator of partnership relations setting between a customer and a supplier, as well as of achievement of a high level of customers’ loyalty. Shaping of the policy of customer service is an important direction to reach a competitive advantage of an industrial enterprise. The work proposes measures to motivate employees to supply customer service of the appropriate quality, which will secure establishment and support of the corporative culture, focused on the company’s clients. The principal scientific fundamentals of the article can be applied in the practical operation of industrial enterprises.

Enablers and barriers to customer involvement in agile software projects in Norwegian software industry: The Supplier´s perspective

The purpose of this study is to present the research findings about factors that contribute to making customer involvement work effectively in an agile software project and to explore factors that can provide hindrance to customer involvement. We conducted 24 interviews with practitioners working with agile software projects in Norwegian software industry. Grounded theory was used to analyse the data. Findings suggested a list of factors that can enhance customer involvement and make it more effective. We called these factors enablers to customer involvement. The factors that suppliers use for effective customer involvement are: understanding customer’s perception of success, effective communication, being forthcoming and accommodating, transparency and openness and establishing trust. Factors that suppliers think the customer should pay special attention to are: customer attention, product owner who understands business, good understanding of technical and functional side and persistent cooperation. This study also presents factors that can hinder customer involvement, thus making the customer–supplier relationship less effective. We called these barrier factors. These are: not getting enough customer time, lack of understanding on the customer’s part, people without right skills and lack of communication. Research was carried out in the Norwegian software industry and grounded theory was used for data analysis, therefore this research can be called context-specific. Research participants interviewed were project managers, therefore this study presents project managers’ viewpoints only. Another limitation is that most of the participants were from the supplier side. This study provides a theory/framework of enablers and barriers to customer involvement in agile software projects. Practitioners can use these factors to enhance customer involvement in agile projects.

Purchasing’s tasks at the interface between internal and external networks

Purpose The strategic importance of the purchasing function increases, as its task become more dynamic in various interfaces with different suppliers. Changes in these customer–supplier interfaces pose specific challenges. The purpose of this study is to investigate how the purchasing function handles the interplay of interface changes. Design/methodology/approach This study applies a qualitative single case study design. Data are collected through observations and interviews conducted before, during and after a concrete change of interface taking place between a buying firm and its suppliers and customers. Findings Three main findings are identified to redefine the tasks of the purchasing function. The first concerns the new ways of defining the purchasing tasks. The main issue is to balance tasks with the simultaneous changes influencing other interfaces and relationships. The second is the division and alignment of tasks in intra- and inter-organizational networks with regards to who decides and coordinates what. Third, the inter-connected performance relates to how other actors perform their tasks. For the purchasing function, managing supplier interfaces influences and is influenced by how the firm simultaneously manages its user interface. Practical implications For management, a new way to evaluate the performance of the purchasing function is needed by including relationship management and interactive capabilities. Originality/value This study contributes with new insights into how managing the dynamics of changing interfaces requires interactively defined purchasing tasks, division and alignment of tasks and inter-connected performance vis-à-vis others in the wider network setting.

Smart product-service systems in interoperable logistics: Design and implementation prospects

To deal with the increasing complexity of customer demands, supply chain (SC) and logistics organisation and management have been constantly moving towards collaboration, intelligence, and service-orientation. The importance of service-oriented design for SC and logistics systems has been stressed, especially with regards to interoperability and sustainability. In this context, the recent intelligent interoperable logistics paradigm has been increasingly studied and the Smart Product-Service System (PSS) concept seems interesting for the paradigm. Smart PSS are characterised by their ability to collect and process information autonomously and subsequently make decisions and self-act/evolve. Interested in the potential for tackling complex logistics systems, this paper investigates how smart PSS could be considered and designed for service-oriented, intelligent interoperable logistics. A recent breakthrough logistics paradigm called the Physical Internet (PI) is taken as a practical example in this research. We present and discuss key design issues and innovative business models associated with smart PSS in PI. The results clearly indicate the promising potential of smart PSS in PI and the need for further research. Consequently, new research avenues leading to a new era of intelligent interoperable logistics are outlined. This paper intends to contribute to two main areas of research: the design and implementation of smart PSS in PI, and functional and conceptual research on PI and intelligent interoperable logistics.

Accountability and Relationship-Definition Among Food Banks Partnerships

Food pantries typically operate in a partnership structure where they are primarily supported by a larger food bank. However, the ability to execute that mission through cooperative arrangements greatly depends upon accountability, a key dynamic that ensures partners are fulfilling expectations and key roles. This exploratory study utilizes qualitative interview data (n = 61) from a large food bank network to understand the extent to which a lead agency (i.e., a large food bank) meets expectations of accountability among partners. The interview results demonstrate that the extent to which expectations are met relate to different types of relationships between the lead agency and partner members. Furthermore, the ways in which partners assess the strengths or weaknesses of the food bank’s accountability reveal different types of relationships within the network, namely that of supplier–customer, supporter–customer, and supporter–collaborator.

Electronic integration and capability widening for OEM suppliers

PurposeThe purpose of this paper is to investigate the effect of original equipment manufacturing (OEM) suppliers’ electronic integration with global customers on their capability widening, following the literature on electronic integration, firm innovativeness, product modularity and dynamic capabilities. It also examines the moderating roles of supplier innovativeness and product modularity in the proposed relationship.Design/methodology/approachThis study conducts empirical examination on a sample of OEM suppliers in Taiwan. It collects 201 self-reported responses via mailed surveys of 1,069 electronics companies listed in the 5000 Largest Firms in Taiwan, and the archival data are obtained from the Taiwan Economic Journal database.FindingsThe results show that electronic integration with global customers affects capability widening negatively, whereas supplier innovativeness affects capability widening positively. In addition, product modularity plays a moderating role in the relationship between electronic integration and capability widening.Research limitations/implicationsThis study contributes to the electronic integration literature by providing empirical evidences on how OEM suppliers’ electronic integration affects their capability widening. This study also adds to the supply chain management literature by demonstrating the relationship between OEM suppliers’ innovativeness and their move into higher value-added activities, as well as how product modularity interplays with electronic integration between customers and suppliers on suppliers’ capability widening in global supplier‒customer relationships.Practical implicationsFor OEM suppliers with a low level of product modularity, they may widen their capabilities by exploring other value-added activities (e.g. original design manufacturing or original brand manufacturing). For OEM suppliers with a high level of product modularity, the improvement of their manufacturing capabilities is a helpful approach to create competitive advantage.Originality/valueThis study is one of the first to examine the interplay between electronic integration and product modularity on capability widening of OEM suppliers from an emerging market. Meanwhile, this study provides support for the relationship between supplier innovativeness and innovative activities in the global supply chain context.

Supply chain integration and operational performance of Kenya’s public health sector

This research objective is to determine the effect of the Supply Chain Integration dimensions on the operational performance of the of Kenya’s public health sector level five hospitals. The results are based on close-ended questionnaires from one hundred and sixty-four respondents working in the level five health facilities supply chain selected using simple random sampling. The data collected was subjected to completeness checks, before it was cleaned, coded, and analyzed using Statistical Package for Social Scientists (SPSS) for the generation of both descriptive and inferential statistics. The results show that Supplier integration (β1, = 0.276; p value=0.000), customer integration (β2, = 0.119; p value=0.016) and internal integration (β3, = 0.232; p value=0.000) have a significant effect on operational performance. The R2was 0.429, indicating that 42.9% of the variation in operational performance is explicated by the variation of Supply chain integration dimensions. This implies that all three supply chain integration dimensions significantly influence operational performance. The study concludes that the government needs to internally integrate and embrace forward and backward integration with the customers and suppliers to leap the full benefits of an integrated health sector to accomplish the universal health care goals.

Horizontal industry relationships and return predictability

It has been documented that vertical customer–supplier links between industries are the basis for strong cross-sectional stock return predictability (Menzly and Ozbas, 2010). We show that robust predictability also arises from horizontal links between industries, i.e., from the fact that industries are competitors or offer products, which are substitutes for each other. These horizontally linked industries exhibit positively correlated fundamentals. The signal derived from this type of connectedness is the basis for significant alpha in sorted portfolio strategies, and informed investors take the related information into account when they form their portfolios. We thus provide evidence of return predictability based on a new type of economic links between industries not captured in previous studies.

Firm-level propagation of shocks through supply-chain networks

Social and economic networks can be a channel of negative shocks and thus deteriorate resilience and sustainability in societies. This study focuses on supply chains, or supplier–customer networks of firms and examines how these supply chains enable production losses caused by natural disasters to propagate and persist in regions not directly affected by the disaster. We apply an agent-based model to the actual supply chains of nearly one million firms in Japan to estimate the direct and indirect effects of the 2011 Great East Japan earthquake. We then employ the same model to predict the effect of the Nankai Trough earthquake, a mega earthquake predicted to hit major industrial cities in Japan in the near future. We find that the indirect effects of the disasters on production due to propagation (10.6% of gross domestic product in the case of the Nankai earthquake) are substantially larger than their direct effects (0.5%). Our simulation analyses to compare the actual network with hypothetical networks suggest that these indirect effects are more prominent and persistent when supply chains are characterized by scale-free properties, difficulty in substitution among intermediate products, and complex cycles in networks. The diffusion of economic shocks from earthquakes is simulated at the firm level in Japan, using an agent-based model and the supply chains of nearly one million firms. Indirect losses to production are significantly larger and more persistent than direct ones.

Quality perception throughout the apple fruit chain

Quality is considered as the main attribute for differentiating food products and/or food services. The objective of this study was to examine how different actors in the apple fruit chain perceive quality. This research included perception of quality evaluated by 38 orchards, cold storages, and retailers and 287 consumers, using two methods. Direction from the orchard to the consumer covered 'customer–supplier' method analyzing their viewpoints in different stages of the fruit chain. Backwards, from the consumers to the orchards, method employed was quality function deployment. Orchard–cold storage comparison highlighted that orchards recognize apple cultivar and yield as the most important quality attributes while cold storages focus on handling of fruit and share of first-class apples. Quality aspects important in the cold storages–retailers evaluation emphasize type of cold storage and presence of fruit defects compared to apple cultivar and ratio between quality and price. Retailer–consumer comparison showed that retailers focus on packaging and ratio between quality and price while consumers beside fruit price focus on assortment and product placement at point of sale. Quality function deployment displayed transformation of quality attributes from juiciness (consumer), advising at point of sale (retailer), apple cultivar (cold storage), to production systems at apple orchards. The results suggest that there are different views on quality by all actors in the apple fruit chain from internal quality parameter such as juiciness to production systems employed at orchards.

Purchasers as boundary spanners: Mapping purchasing agents' persuasive orientations

This study introduces a framework of persuasive communication that is central to understanding how individual purchasers behave as boundary spanners to manage customer–supplier relationships. Drawing on the institutional theory and multiple governance approach, we assume authoritarian, competitive, and relational behavioral orientations reflect institutional logics at an individual level. Purchasers' boundary-spanner behavior thus manifests itself as individual purchasers' rhetorical orientations. In a sample of 349 purchasers, we find support for the existence of four configurations of orientations: competitive/authoritarian, relational, comprehensive, and neutral. A subsequent follow-up study of 20 interviews with the most typical representatives of each group suggests storylines that reflect the background and logic of different persuasive styles. The findings highlight purchaser persuasive orientation as one facet of a purchaser capability set making it possible to cope with the transactional versus relational paradox in buyer–seller relationship contexts.

When it pays to have a friend on the inside: contingent effects of buyer advocacy on B2B suppliers

As organizational buying systems grow more complex and sophisticated, suppliers increasingly rely on buyer advocacy: an individual buyer’s efforts to influence his/her colleagues such that the supplier’s standing is improved. Drawing from cognitive response theory, the authors hypothesize an inverted U-shaped relationship between a buyer’s advocacy for a supplier and the customer’s purchases from that supplier. They theorize that this effect is moderated by the advocate’s industry experience and customer–supplier relationship characteristics. An analysis of multisource data from a B2B service provider (Study 1) supports the predicted inverted U-shaped relationship, while a unique dataset from a large industrial supplier (Study 2) provides broad support for the hypothesized moderators. Finally, a randomized experiment (Study 3) replicates key findings and corroborates the theorized cognitive response mechanisms. Findings contribute to the limited literature on buyer advocacy within the organizational buying domain and offer practical implications for suppliers and buyers.

Internet Business Practices Across the Globe: Lessons from Emerging Economies

Firms in emerging economies are rapidly becoming formidable competitors to long-established industry leaders from developed economies. In some cases, emerging-economy firms are acquiring developed-economy firms, such as the recent acquisitions of Jaguar by Tata Motors and Gateway by Acer. Aside from anecdotal reports of high-level corporate strategies adopted by certain emerging-economy firms, there is little scholarly evidence concerning the operational details of how emerging-economy firms are becoming competitive with developed-economy firms. A common explanation is labor cost or currency advantages in emerging economies. As emerging-economy firms also compete effectively in developed economies using developed-economy resources, this cannot be the entire explanation. We propose another explanation, based on dissimilar adaptation of the Internet to enable and reinforce business practices related to customer relationships and supply chain integration.This paper draws on original survey data from over 450 firms across 10 countries as well as case examples to illuminate three key ways that Internet business practices differ between developed- and emerging-economy firms. First, compared with developed-economy firms, emerging-economy firms place a relatively higher priority on using the Internet to achieve strong customer relationships via service and support. Second, emerging-economy firms place a relatively higher priority on using the Internet to integrate processes with suppliers than do developed-economy firms. Finally, emerging-economy firms are relatively more driven to adopt Internet business practices to expand existing markets and enter new markets, and accordingly report a relatively greater impact to international sales growth compared with developed-economy firms. Our findings suggest that managers in developed-economy firms would be wise to re-assess and re-evaluate their use of Internet business practices - in particular, in the areas of customer relationships and supply chain integration - to retain competitiveness in the dynamic global economy.

A Study on the Quality Improvement of Mobile App Services of Medical Institutions: Focus on the Kano Model and PCSI Index

Purpose - The purpose of this study was to examine quality improvement priorities by examining not only quality classifications but also PCSI (Kano, 1984) of mobile app service qualities of general hospitals in the Metropolitan Area and offer potential improvements. Research design, data, and methodology - The study examined five of service qualities, including app design, reaction, convenience, safety and supply of information by precedent studies. 20 test items were selected. A total of 60 positive and negative questions to estimate customer satisfaction and PCSI was investigated. The author collected 300 copies from interviewees who made use of the app services of 13 general hospitals within one year, and classified quality factors by using table of quality assessment and also estimated the customer satisfaction index (Timko, 1993). The study made quality improvement priority by the PCSI index. Results - Reaction of the mobile app service quality ranked the highest PCSI, and payment safety ranked the highest, and customer support and supply of the information ranked high as well. It was observed that design ranked comparatively lower in these categories. Conclusion - Safety, reaction and supply of information should be prioritized to reorganize and improve the mobile app services.

Experiences in Supply Chain Quality Management Practices in Vietnam: Studying on Steel Manufacturing Company A and Packaging Manufacturing Company B

Supply chain quality management is receiving the increasing interests of managers not only in Vietnam, but also in over the world, though research to date insufficiently meets the practical needs of business. Taking an advantage, this study aims at providing practical experiences in supply chain quality management practices of companies in Vietnam which effectively effects on their firm’s performance. On the basis of reviewing previous studies, this study is conducted through in-depth interviewing with seven experts of the seven manufacturing companies in Vietnam and researching case study at two typical manufacturing companies in the steel and packaging manufacturing industry in Vietnam. The result finds that there are six critical aspects of supply chain quality management practices having the impact on firms’ performance in Vietnam, specifically top management support, human resource development, internal lean practices, supplier focus, strategic supplier partnership and customer focus. Finally, it provides an interesting reference for supply chain managers in Vietnam in searching the appropriate approaches to increase the performance of the business through supply chain quality management practices.

A Vendor Recommendation Model using Neural Networks

Suppliers today are considered as a logical extension to a firm that provide critical inputs to its processes. Supplier performance evaluation is vital for any firm to carry out supplier selection and to practice effective supply chain management. Further, the supplier performance measurement system should continuously evolve in a company as a process for improving the capabilities, execution effectiveness and efficiency. Though the supplier performance systems have been well investigated in the literature, very few studies have proposed an order-based supplier selection approach that takes into account the changing priorities of the customer. The research tries to address this gap by attempting to establish a dynamic linkage between customer order priorities and supplier characteristics. A neural network model for the order driven vendor recommendation system that ranks the suppliers as per the requirements of the order has been proposed.

Capital structure decisions along the supply chain: Evidence from import competition

This paper studies the spillover effect of import competition in downstream industries on upstream capital structure. We find that a large reduction in import tariffs in a customer industry induces suppliers to choose more conservative financial policies. We show that firms lower their leverage more when the customer–supplier relationship is more valuable to the firms and when firms are more vulnerable to the downstream shock. Finally, firms adjust their leverage mainly by issuing more equity.