Industrial Buyers Research Articles

Industrial Buyers’ Food Neophobia – A Barrier to Market Entry? A Case Study of Introducing Lumpfish to South Korea and Vietnam

The need to find sustainable food sources to feed the growing population makes the utilization of all available food resources especially important. But introducing new food is challenging and often fails. In the consumer behavior literature, food neophobia (FN), the unwillingness to try new food, has been identified as a crucial factor in understanding the adoption of new food products. However, limited research can be found on the role of FN in industrial buyers’ choice of new food products. Industrial buyers are important gatekeepers for the introduction of new food products as they decide what is offered to the consumers and may stop any market entry long before a new food product reaches the consumers’ attention. Thus, the understanding of the potential FN in industrial buying behavior, in different markets, is important to succeed with the introduction of new food products. In this study, we have explored FN as a potential barrier to the adoption of a new seafood product, farmed lumpfish (Cyclopterus lumpus), by industrial buyers in South Korea and Vietnam. The results revealed differences between the two countries’ industrial buyers, with South Koreans demonstrating more FN than the Vietnamese. This contradicts with the consumer research showing that FN decreases with increased income, education, and urbanization.

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.

Constraints and barriers on industrial customer performance in an omnichannel ecosystem

One of the business models in the digital field that has proliferated the most lately is the omnichannel model. Its objective is to provide services adapted to the specific demand of each particular client, regardless of the channel at any given time. To carry it out, the firm must have exact knowledge of the client. Manufacturing companies that have incorporated technology to learn more about their industrial customers and predict which proposal is the most appropriate for each customer-context have the basis to go further and get to know the final consumer. This knowledge of the consumer is a pillar for innovation in a company and especially for product innovation. Usually, the manufacturer does not want to bypass the traditional distribution channel, so it is proposed to create an ecosystem for the provision of services. That is, manufacturers enable digital communication channels with the final consumer, to collect information, while providing the service or supply through the traditional channel. In this way, omnichannel ecosystems arise. This article aims to clarify the barriers that hinder customer performance, either directly as an industrial buyer of a good, or as an intermediary, in an omnichannel ecosystem.

Regional recovery and controllable regeneration of brønsted acidic deep eutectic solvent in biomass fractionation via bipolar membrane electrodialysis

Brønsted acidic deep eutectic solvent (DES) has got more and more focus in biomass-related studies and applications due to a few novel specialties. High-efficiency recycling approach and theory was necessary before scale-up utilization of Brønsted acidic DES in biomass processing. Regional recovery and controllable regeneration of Brønsted acidic DES oxalic acid-ethylene glycol (OA-EG) was studied in biomass fractionation by designing bipolar membrane electrodialysis (BMED)-based methodology. Dominating parameters controlling DES recovery were studied with emphasis. Recovery ratio of OA (90.6 %-97.8 %) and EG (94.3 %-98.0 %), current efficiency (89.3 %-94.7 %), transport rate of OA (29.3–458.7 mmol/(m2·min)) with total energy consumption (0.110–0.832 kW·h) and specific energy consumption (3.1–17.7 kW·h/kg) of DES recovery were studied to assess the BMED-based methodology. Reusability of regenerated Brønsted acidic DES was confirmed by repeated corncob fractionation and recovery experiments. Recovery cost of deep eutectic solvent OA-EG with BMED was estimated to be 0.5 %-5.2 % of its purchasing cost from supplier and 4.3 %-51.2 % of its industrial purchasing cost according to the economic appraisal. Perception acquired from this study revealed an efficient, low-cost and sustainable approach for Brønsted acidic DES recycling in biorefinery.

Virtual power purchase agreements and their value in decarbonisation strategies

In order to be attractive to the capital market, companies are under increasing pressure to incorporate renewable energy (RE) targets into their business strategies. One of the most credible ways to demonstrate the renewable origin of electricity and to achieve a positive signalling effect is to enter into a power purchase agreement (PPA). A special form of this contract, the virtual PPA (VPPA), acts as a financial hedge, allowing the industrial buyer to achieve both a decarbonisation effect and a risk-minimising hedge. As the effect of a VPPA on the shareholder wealth of the electricity buyer has not yet been investigated in the literature, the purpose of this study is to fill this research gap. To this end, we analyse the abnormal stock returns of 89 VPPA announcements using a modified event study based on the Fama-French five-factor model (FFM5). Our results show significant positive abnormal returns around the announcement of a VPPA deal. This confirms the expectation that VPPAs are wealth-creating.

Aligning sustainability goals of industrial operations and marketing in Industry 4.0 environment for MSMEs in an emerging economy

PurposeIt is crucial for the Indian micro, small and medium enterprises (MSMEs) to implement a few of the most important Industry 4.0 (I4.0) technologies and reap maximum benefits of sustainability. This paper aims to prioritize I4.0 technologies that can help achieve the sustainable operations and sustainable industrial marketing performance of Indian manufacturing MSMEs.Design/methodology/approachI4.0-based sustainability model was developed. The model was analyzed using data collected from MSMEs by deploying analytic hierarchy process and utility-function-based goal programming. To have a better understanding, interviews were conducted.FindingsPredictive analytics, machine learning and real-time computing were found to be the most important I4.0 technologies for sustainable performance. Sensitivity analysis further confirmed the robustness of the results. Business-to-business sustainable marketing is prioritized as per the sustainability need of operations of industrial MSME buyers.Originality/valueThis study uniquely integrates literature and practitioners’ insights to explore I4.0’s role in MSMEs sustainability in emerging economies. It fills a research gap by aligning sustainability goals of industrial buyers with suppliers’ marketing strategies. Additionally, it offers practical recommendations for implementing technologies in MSMEs, contributing to both academia and industry practices.

The perks of being an attractive public customer

PurposeIn industrial buyer–supplier relationships, being an attractive customer has been found to result in superior supplier performance. However, there is a limited understanding of how these benefits transfer to the public domain. This study aims to explore the influence of customer attractiveness on supplier resource mobilization efforts toward the public sector.Design/methodology/approachA qualitative approach was used, focusing on in-depth interviews with 23 informants from 3 critical and complex supplier markets. The data were processed using inductive coding and thematic analysis.FindingsThe findings indicate that customer attractiveness in the public sector influences suppliers’ mobilization efforts on several dimensions. In addition to stimulating competition in the tender phase, customer attractiveness can yield important benefits to quality, supply stability and innovation during the business relationship. It appears imperative for the public sector to improve its standings with suppliers to both mitigate the apparent risk of sub-par treatment and to unlock the preferential supplier treatment associated with being an attractive customer.Social implicationsReceiving increased mobilization from suppliers will result in better use of public money and help improve resilience and innovation in public procurement.Originality/valueThis study extends the research on customer attractiveness in the public sector by being the first to explore the range and nature of its influence on supplier mobilization efforts.

Organizing Maintenance Service Contracts for Initial Purchases: The Interplay Among Product Type, Service Type, and Service Approach

Organizing Maintenance Service Contracts for Initial Purchases: The Interplay Among Product Type, Service Type, and Service Approach

Business to Business Relationship for Coconut Products in India – A Case Study of Balaji Enterprises, Tiptur

Purpose: Through the introduction of B2B Relationships, the interactions offered a new economic paradigm. The importance of B2B Relationships in Coconut products can lead to increased efficiency, shared resources, and potential cost reduction this helps in gaining competitive advantage and building trust. The goal of the paper is to conduct an in-depth analysis of Balaji Enterprises, a platform for Coconut Desiccated products. We conclude by outlining the prospects for a successful company. Design/Methodology/Approach: Using the B2B model and related theories on intention to use, this study projected an academic agenda for the adoption of B2B. We've used secondary data from case studies, blogs, and other sources, face-to-face interaction with proprietors, reports, and research papers. Findings/Result: The success story of most B2B Relationships brings an articulated picture of how did a B2B Relationship succeed in making sales at the doorstep so practical. The study also brings out the reality of B2B Relationships can give more scope for Micro and Small enterprises, and explore their marketing intelligence and selling propositions. Originality/Value: More knowledge will be gained from the case's discoveries into B2B Relationship trends, and to better target obtaining relationships and fulfillment of the industrial buyer and determine his credibility and loyalty. The result of this paper generates Attitudes in Enterprises about maintaining relationships and carrying on with relationships in a positive manner. Paper Type: Case Study

Norwegian Farmed Salmon: A Commodity in Need of Differentiation?

Despite much innovation and development in the Norwegian salmon industry, the focus has largely been on building volume and reducing costs. Limited attention has been paid to develop value added products and differentiation strategies in Norway to reap stable profits associated with such strategies. In depth-interviews with a supply chain containing Norwegian salmon producers, one exporter and one feed producer, industrial buyers representing two Polish processing companies and two German retailers, aimed to provide insight into why more differentiation is not happening in the Norwegian salmon industry. Results from this supply chain reveals lack of communication and asymmetric power-dependence relations between the Norwegian salmon business actors and their industrial buyers.

Credibility and price premium-based competitiveness for industrial brands

Extant research on brand competitiveness concentrates on the B2C contexts, yet it remains poorly understood in the B2B contexts, especially for industrial brands. This current research aims to investigate how seller credibility potentially drives organizational buyers' willingness to pay price premiums (WTPP) through customer-company identification and buyer long-term orientation. In particular, we argue that buyer WTPP represents the industrial brands' competitiveness since buying firms express such strong preferences for the industrial sellers’ products and services compared to competitors that they are willing to pay price premiums. Based on data from 454 US-based industrial buyers, our findings generally support the proposed hypotheses. Our research sheds light on how industrial sellers can build their brand competitiveness. Actionable insights for research and managerial practice are provided.

An Assessment of Brand Loyalty, Perceived Quality and Price as Antecedents of Purchase Decision: Evidence From Ghana’s Textile Industry

Purpose: The main purpose of this study is to assess the effects of brand loyalty, perceived quality and perceived price on purchase decisions among buyers in Ghana's textile industry.
 Design/Methodology/approach: The current study was quantitative in nature and involved gathering and analysis of cross-sectional data. The study gathered quantitative data from a representative sample of 500 customers from Accra, Ghana. Descriptive and inferential statistics were applied in analysing primary data. A structural equation modelling approach with IBM SPSS AMOS software was used to assess the nature of the nexus between the identified variables.
 Findings: The findings suggested that the predictors: brand loyalty, perceived price, and perceived quality separately and jointly have a significantly positive effect on purchase decisions for Ghanaian textile products.
 Practical Implications: This study has practical implications for using branding to gain a competitive advantage. Textiles firms using ‘made in Ghana’ branding, a good communication strategy on product quality can influence purchase intention and build brand loyalty among buyers.
 Social Implications: The study's findings on the influence of cultural factors on purchase decisions can have important social implications. By understanding how social norms, values, and beliefs affect consumer behaviour, policymakers can develop policies and regulations that support sustainable and ethical practices in the textile industry.
 Original Value: The novelty of this study lies in its investigation of the relationship between brand loyalty, perceived quality, price, and purchase decisions in the context of Ghana's textile industry. While there is some research on these factors in other industries and regions, there is a lack of comprehensive studies on how they affect purchase decisions in the textile industry in Ghana.

TBL Myanmar: Understanding the Barriers to Sale of Dehumidifiers in Emerging Markets

Vipul Murarka, Executive Director of Tropical Biotechnology Ltd. (TBL), was perplexed after looking at the erratic sales of dehumidifiers over the past 3 years since he started in June 2016. Although the number of goods sold was growing until 2019, which gave a marginal increase in revenue earned, the top line was increasing at a decreasing rate, with 10% in the first year, 8% in the second year and 7% in the third year. He could not understand the reasons for these inconsistent sales despite offering quality solutions and having many satisfied clients in the past. Given the torrential rains throughout the year in Yangon, the capital of Myanmar, a dehumidifier was an essential product for factories, yet sales were not picking up as anticipated. Dehumidifiers as an industrial product aided many manufacturing units, as they helped in controlling moisture by extracting water from the air, thus reducing humidity and preventing the growth of mildew. There were myriad manufacturing companies in Yangon because of the availability of cheap labour, yet sales for certain months were flat, with not even one sales call funnelling to final action. These lull periods made Vipul anxious and forced him to think if he had entered the wrong industry. He even thought if the first-mover advantage turned into a disadvantage for him. The initial reason he speculated about this sales barrier was the price, as it was a high-investment product for industrial buyers. However, he also posited to himself that he might not have been able to position the advantages of the product aptly in the minds of the potential buyers. Unable to find a definitive reason for the sales barriers of the dehumidifiers, he approached his friend, Myint Than, an independent consultant and visiting faculty at an MBA institute where he taught sales and marketing strategy courses. Vipul and Myint had to find the reason for the barrier to the dehumidifier sales and eventually make a strategy to overcome these barriers for future growth before deciding the sales target for the year 2020.

Developing and validating e-marketplace service quality model in B2G e-commerce settings: a mixed-methods approach

PurposeThe research aims to qualitatively explore e-marketplace service quality (EMSQ) from the perspective of an industrial buyer as a sole decision-maker. It further intends to quantitatively examine its impact on the industrial buyer's perceived value (PV), overall satisfaction (SAT), and e-loyalty (ELOY) in the context of business-to-government (B2G) e-commerce.Design/methodology/approachThe research used an exploratory sequential mixed-method design. A qualitative exploratory study of EMSQ was conducted using a Straussian grounded theory (GT) technique, followed by an explanatory quantitative study using PLS-SEM to evaluate causal links between various research variables.FindingsIn the area of e-services, the investigation found that the hierarchical structure of EMSQ encompasses six broadly applicable dimensions and one B2G context-specific dimension of the e-governance process quality. The study also reinforced previous research findings in the B2C and B2B e-commerce domains, highlighting that e-service quality positively impacts online buyer's PV, SAT and ELOY.Research limitations/implicationsThis research contributed to the area of e-service operations by developing and validating the EMSQ model in the B2G e-commerce settings. Further, it has opened up new research avenues in B2G e-commerce.Practical implicationsThe findings from this research highlighted that e-service operations managers should focus on usability, technological concerns, product/vendor quality concerns, customer support reliability, along with effective e-governance, ordering and logistics processes for e-business success. It also provides policymakers with guidelines for making B2G e-marketplaces sustainable.Originality/valueTo the best of the author's knowledge, this is the first study employing the GT and PLS-SEM techniques to explore EMSQ from the viewpoint of industrial buyers in B2G e-commerce. The study contributed to prior literature by proposing and validating the hierarchical EMSQ model.

Improving brand performance through environmental reputation: The roles of ethical behaviorand brand satisfaction

Although previous research has shown the benefits of corporate reputation, few studies have directly investigated the effects of environmental reputation in the context of branding. Using insights from signaling and resource-based view theories, we investigate the impact of environmental reputation on brand performance through the mediating mechanism of brand satisfaction. In addition, we examine the moderating impact of ethical behavior on this relationship. Using time-lagged data from 211 industrial buyers from pharmaceutical firms in Ghana, the empirical results show that (1) environmental reputation significantly influences brand satisfaction, (2) ethical behavior moderates the relationship between environmental reputation and brand satisfaction, and (3) brand satisfaction mediates the relationship between environmental reputation and brand performance. The findings contribute to our understanding of environmental reputation's role in B2B branding. Theoretical and practical implications are discussed.

Relationship marketing variation in multidyadic industrial channels with component supplier specification

Building strong relationships is central to the development and maintenance of effective industrial channels. However, while the relationship marketing literature is vast, our understanding of how multidyadic industrial channels impact relationship marketing models is limited. As many OEM supplier relationships are formed via component supplier specification by its industrial buyer, where freedom to enter and exit a relationship is externally restricted, the current relationship marketing literature is somewhat limited in explaining these relationships. This study examines the underlying differences in relationship marketing across the cases of component supplier specification and non-component supplier specification. We discuss key relationship variable differences across cases within the phases of relationship development, and the extant relationship marketing literature. We then present a research agenda for advancing our understanding of multidyadic industrial channels.

Beneficiated Coal Buying Process: Investigating Industrial Buying Behavior Models

This research paper examines the buying process of beneficiated coal within coal-consuming industries, while considering different models of industrial buying behavior. Beneficiated coal refers to coal that has undergone a purification process to improve its quality and reduce impurities, making it suitable for industrial applications. The primary objective of this paper is to investigate and compare various models of industrial buying behavior in the specific context of the beneficiated coal market. This paper aims to provide valuable insights for coal suppliers and buyers to enhance their decision-making processes. The study focuses on the different stages involved in the buying process of beneficiated coal. Additionally, it explores the internal and external factors that influence industrial buyers when procuring beneficiated coal. The research analyzes each stage of the buying process, including problem recognition, information search, alternative evaluation, purchasing decision, and post-purchase evaluation. It also examines the internal and external factors influencing industrial buyers in their procurement of beneficiated coal, such as organizational considerations, market dynamics, and individual preferences. Furthermore, this research paper presents a comparative analysis of various models of industrial buying behavior, such as the Webster and Wind model and the Sheth model. The aim is to assess the applicability and effectiveness of these models in explaining the intricacies of the buying process within industries. By gaining a deeper understanding of the buying process and influential factors, coal suppliers and buyers can refine their marketing strategies, optimize their operations, and foster mutually beneficial relationships within the beneficiated coal market.

From After-Sales to Advanced Services: A Network Analysis on the Impacts of Digital Servitization Evolution

The B2B context has experienced a push toward digital servitization (DS), i.e., the development of services by means of digital technologies. There are three levels of DS: (1) product provision, (2) after-sale servicing, and (3) advanced services taking after-sales to the next level. At level 3, DS evolves from a product and service-oriented strategy to a service-centric one. The literature has acknowledged the changes provoked by levels 1 and 2 of DS. Yet, further changes at level 3 still have not been explored. This research aims to understand the impact of DS’s evolution after the DS setup, with an intra- and interorganizational focus. To reach this aim, the case of Beta, an Italian mechatronic manufacturer implementing IIoT-based DS, is analyzed. The adopted framework is the ‘developing’, ‘producing’, ‘using’ (DPU) framework, formulated within the industrial marketing and purchasing (IMP) approach. Results are summarized in three propositions, showing how: (1) DS complexity unfolds intra- and interorganizationally and is gradually embedded in the three settings of the framework; (2) integration of settings and resources becomes essential; and (3) processes of resource procurement, development, and integration allow the evolution toward a service platform. Theoretical and managerial implications are provided.

Examining the industrial buying behavior in Indian market: From behavior and cultural perspective for B2B buyers and suppliers

This study investigates how B2B relationships can be nurtured in the cultural environment of the Indian management style. We have considered three prominent Indian cultural attributes that influence Indian management style: jugaad (J), visvaas (V), and chalta hai (C). These are perceived to have considerable impacts on relationship management in terms of consumer buying behavior and psychology in the B2B context. This concept has dramatically changed the B2B marketing dynamics, blurring the age-old boundaries between B2B and B2C marketing contexts. With this background, we attempted to understand how the three Indian cultural attributes can impact the B2B relationship. This study highlights that consumers’ buying behavior, in the B2B context, is influenced by their brand identification, purchase engagement, and prestige sensitivity. A conceptual model has been developed and the model has been validated statistically by a survey involving 364 respondents. The study reveals that jugaad, visvaas, and chalta hai considerably affect the business relationship performance of the MNCs doing business with Indian firms, especially on B2B consumer buying behavior and psychology.

INVESTIGATING THE BARGAINING POWER OF BUYERS IN ASSAM SILK INDUSTRY-A CRITICAL ANALYSIS

Bargaining power of buyers is a very pertinent component to understand the competition in any industry to make effective strategic decisions. This study is an attempt to analyze the bargaining power of buyers in the Assam silk industry which holds a significant position not only in India but across the world because of its unique and quality products. Data were collected from 80 number of Assam silk sellers from Sualkuchi area of the state of Assam in India by focus group interview method through open ended unstructured schedule. The content analysis method is used for the study using Porter’s five forces framework. The findings indicates that there is existence of high bargaining power of buyers as there is availability of numerous silk substitutes at cheap price easily available at silk market of Assam with less distinguishing features, designs, texture and colours. Moreover, it is found that there is less or no switching cost for Assam silk customers and easy backward integration. As a result, the Assam silk industry is becoming less profitable and attractive for these customers who are highly price sensitive. In this regard, the Assam silk industry stakeholders and policy makers should undertake defensive strategies to mitigate the bargaining issues and offer quality products & services at lower prices to customers to sustain this age old industry