Small Supply Research Articles

Supplier development as knowledge transfer routines: managerial versus operational knowledge

This study considers supplier development as buyer-initiated knowledge transfer routines and suggest the two types of supplier development according to knowledge content and target recipients: managerial knowledge transfer routines and operational knowledge transfer routines. We introduce managerial knowledge transfer routines as an important yet unexplored dimension of direct involvement supplier development. Based upon the knowledge-based view, transaction cost economics, and social capital theory, this study predicts that buyer's knowledge transfer routines not only directly influences supplier performance but also indirectly thru supplier's perceived relational capital accumulation, and investment in specific assets. In addition, we expect managerial knowledge transfer routines will be more powerful than operational knowledge transfer routines in stimulating supplier's relational capital and specific asset investment. Data were collected from 136 small and medium-sized suppliers of major Korean firms, and hierarchical regression methods were employed to test the hypotheses of the study. Academic and managerial implications are presented, and future studies are discussed.

Perceived importance of contract value, offshore market experience and buyer attractiveness among SME service suppliers in Norway

This paper focuses on the perception of offshore market attractiveness among SME service suppliers in the Norwegian offshore market. From the buying companies' perspective, it is desirable to recruit and maintain a sufficient great supplier base of local service suppliers in the Norwegian offshore market in line with the national industry policy in Norway. This research analyses possible barriers to entry for small service suppliers in the Norwegian offshore market. The empirical findings demonstrates that the suppliers' perceived importance of contract value, materialised as contract size and contract duration play an important role for increasing new entries of service suppliers into the offshore market. The perception of the importance of contract value is in particular important for enhancing the perceived attractiveness of offshore buying companies among service firms outside this market (solely onshore suppliers), while this effect is rather modest among service suppliers who have entered the offshore market.

Challenges faced by Small and Medium Enterprise Suppliers when bidding for tenders. A case of Thika District

The Public procurement market in Kenya like other countries worldwide deal with a wide range of supplies. Though these contracts vary mainly in size, some are clearly within the capabilities of Small and Medium size Enterprises (SMEs). However, SMEs are sidelined from participating in public procurement despite their qualifications, sizes and level of production and despite this preferential treatment of SMEs, comparative tallies of public contracts secured by SMEs in Thika District against those secured by large enterprises are still very small. The study examined the challenges that the SMEs in Thika District face when bidding for tenders and it seeks to determine why they risk losing tenders. The research design used was descriptive and exploratory. The study established that there is a clear Legal/Regulatory framework established in the country to knob public procurement though these guidelines are not open to public scrutiny. The conditions for tendering are not the same for each tenderer and there are ethical malpractices sighted during the process. SMEs encounter financial challenges which include financial regulations and shortage of own financial resources. Information on public procurement and tendering to the SMEs is not adequately available as most respondents were not aware of its existence. The research concluded that the existence of the legal framework makes it difficult for upcoming SMEs to compete with the established players thus discouraging their participation. Ethical aspect hinders the SMEs from participating in tendering due to in-transparency in the process. Financial requirement is a hindrance. Information on public procurement and tendering is not adequately available to the SMEs thus poor access to the little information availed to them.

English

The conceptual perspective of "business platform" intent to demonstrate that in the current situation, industries can jointly establish innovations through formal exchanges of expertise between a "leader firm and its complementary." The research had qualitative and exploratory character, using grounded theory techniques and thematic content analysis of five in-depth interviews made to automakers and suppliers of flex-fuel technology. The flex-fuel technology as a "business platform", presented the following results: there were modifications in the architecture of the engine flex-fuel-related components; the technology emerged from a strong relationship of exchange of expertise among the "Modules "(the systemists and the automakers). The interviewees reported the existence of co-design in the development and application part of this technology. The power of the automakers in the "architecture" of the flex-fuel platform is also highlighted by the leadership in the chain of the automotive industry. Finally, it was elaborated a model of “flex-fuel business platform from the concepts drawn from the interviews. It was concluded that the flex-fuel platform is led by automakers that hold the core architecture of the engine. Innovations of high aggregated value, as the case of flex-fuel, require partnerships and standardization with "complementary" (large and small suppliers).   Key words: Flex-fuel technology, business platform, automotive industry. &nbsp

Does Small Retailer Market Orientation Matter for Long‐Term Oriented Relationships with Suppliers?

This study examines the influences of small retailer market orientation on supplier transaction‐specific investment and supplier role performance and the roles of supplier transaction‐specific investment and supplier role performance in determining small retailer long‐term orientation. Data were collected from 102 small independent apparel stores in the nited tates The results show that small retailer market orientation positively influences supplier transaction‐specific investment, which in turn influences supplier role performance. Supplier transaction‐specific investment and role performance influence small retailer trust, but only supplier transaction‐specific investment positively affects small retailer dependence. Small retailer trust and supplier transaction‐specific investment influence small retailer long‐term orientation.

Microenterprises: how they interact with public procurement processes

PurposeThe aim of this paper is to explore how micro‐enterprises interact with public procurement systems. The paper seeks to give public procurement managers a better understanding of how micro‐enterprises approach the procurement process.Design/methodology/approachThe sample consists of microenterprises competing for public procurement contracts in Ireland. The data are firstly submitted to principal component analysis to identify a set of factors that represent the public procurement process. This is later used to create four distinct clusters which describe how suppliers interact with the process.FindingsA typology of four interaction patterns is generated from the data. This shows that small firms weight the three phases of the procurement process differently. The data support and extend the argument that small firms are not a homogeneous group and illustrate that small firms use divergent strategies when competing for procurement contracts.Research limitations/implicationsThe practical implications of the research include the need to assess the potential for buyer‐supplier mentoring in order to develop relational competency in public procurement. The firms investigated are domiciled in Ireland and therefore generalisability of the findings may be limited. The scope of the study is restricted to micro‐enterprises only.Originality/valueThe paper demonstrates that pre‐tender engagement is a necessary condition for small suppliers to achieve above average bid outcomes. The paper offers insights to public buyers, teams and managers as to the importance of engaging with suppliers to achieve mutually beneficial outcomes.

Keystone Business Models for Network Security Processors

IntroductionNew business models are needed for small suppliers of network security processors and specialized security products. The conventional business models in use today favour large, established incumbents who develop products for large and well-understood markets. Ideally, new business models would enable and reward continuous innovation by both large and small

Keystone Business Models for Network Security Processors

IntroductionNew business models are needed for small suppliers of network security processors and specialized security products. The conventional business models in use today favour large, established incumbents who develop products for large and well-understood markets. Ideally, new business models would enable and reward continuous innovation by both large and small

Assessment of the results of the strategic orientation on regional and local products in food retail

The aim of this paper is to assess if there is a difference in food choice behaviour between regular customers of stores of the retail chain Terno and other consumers. Consequently, the paper aims to discover, if the strategy formulated by the consumer co-operative Jednota České Budějovice was a good strategy. The core of this strategy is the orientation on the region, local and regional food and food products and the co-operation with local small and medium suppliers. Another part of this strategy is also the permanent control of quality of these products and creation of the special private label – Quality food from our region. The consumer co-operative co-operates also with the regional grouping under another label – Tastes great. Southbohemian. The assessment is done by means of the analysis of a questionnaire survey that was done among consumers in the South Bohemia in 2011. The strongest factor differentiating customers of the retail chain TERNO from other consumer is the orientation on regional or local products, which explains about 41% of variability. Other differentiating factors are environment-friendly production and selling and quality of food. All these three factors explain in total 66.5% of variability of the data set.

The Cable Contract

The case deals with an ethical dilemma of an entrepreneur. Chandran, a qualified contractor, had secured an electrical contract from a premier government organization. It was a turnkey project to be executed in a given period of time. In the process of work, he comes across major problems. He could not abandon the project or compromise on his moral values. He wanted a way out to salvage this project that was slowly slipping from his control. This case examines the ethical issues that confront small businesses, employees, suppliers and key stakeholders of every organization and explores the mindset of participants, their personal values and their decision making rationale. The participants get an opportunity to identify with the difficult choices a business situation may throw when ethical mindset clashes with the decision making process.

Is Standard Costing Still Used? Evidence from Turkish Automotive Industry

Today, there is a debate about the future of standard costing. Some academicians assert that this method is inappropriate in a modern manufacturing environment. The aim of this article is to study the use of standard costing in the automotive industry, the leading manufacturing sector of Turkey. The findings show an average usage rate of 77 percent for standard costing. The majority of non-users are local small supplier firms. There are statistically significant differences between the primary and supplier industries in terms of its importance and usage. Just to name a few differences, supplier firms attach less importance to the budgetary function of the standard costing, and they mostly rely on different methods to set labour and material standards.

Trading in Drugs through Philadelphia in the Eighteenth Century: A Transatlantic Enterprise

In the eighteenth century, an ingoing trade in medicinals was conducted with North America largely if not exclusively by smaller suppliers and firms. The steady demographic growth in the thirteen colonies due to European immigration and African slave labour was accompanied by a parallel growth in demand for both medicinals and their constituent raw materials, whether plant or mineral, and for proven or at least familiar proprietary medicines. By the later part of the century, the efforts to shift to reliance on local botanicals and minerals and local manufacturing had become pronounced. This paper proposes to indicate the extent of the trade in imported pharmaceuticals and the shift toward self-reliance, with special attention to the region around Philadelphia.

Customer relationships and the provision of trade credit during a recession

Having a close relationship with a customer that accounts for a relatively high proportion of sales may be costly for small suppliers and weaken their bargaining power. Suppliers with a weak bargaining position may then find it difficult to reduce their provision of trade credit during a recession despite the need to do so. Employing Japanese small business data, we conclude that close customer relationships are in fact beneficial (not costly) for small suppliers in trade credit contracts. First, we find that small suppliers tend to offer less trade credit during a recession, even if the supplier–customer relationship is close. Second, notwithstanding a close supplier–customer relationship, we find that small suppliers offer less trade credit to their main customers if the supplier is in financial distress or charged higher interest rates by banks.

Information technology as a facilitator of suppliers’ collaborative communication, network governance and relationship longevity in supply chains

There is an increasing awareness about the paramount importance of information technology within business in the context of large businesses. However, research about the investigation of the role of information technology resources in fostering collaborative communication, network governance and relationship longevity in the small and medium enterprise sector has remained scant. The primary objective of this study was to investigate the influence of information technology on collaborative communication, network governance and relationship longevity in Zimbabwe’s SME sector. Five research hypotheses were posited and sample data from 162 small and medium enterprise suppliers were collected and used to empirically test the hypotheses. The results of this study showed that information technology resources positively influenced small and medium enterprise suppliers’ collaborative communication, network governance and consequential relationship longevity with their buyers in a significant way. Overall, the current study findings provided tentative support to the proposition that information technology resources, collaborative communication and network governance should be recognised as significant antecedents for improved relationship longevity between suppliers and their buyers in the SME setting. Therefore, managers in the small and medium enterprise sector and small and medium enterprise owners need to pay attention to both collaborative communication and network governance in order to optimise information technology resource impact on their relationship longevity with their business counterparts. Limitations and future research directions were also indicated.

Based on the AHP Small and Medium-Sized Enterprise Supply Chain Supplier Evaluation Research

In this study, we establish the evaluation index system based on the AHP small and medium-sized enterprise and then use AHP decide the weight of each evaluation index. Moreover, we use Linear Weighting Method to study supplier performance from perspective of quantitative research and give the measurement process. The empirical research, to validate the method is scientific and feasible.

Based on the AHP Small and Medium-Sized Enterprise Supply Chain Supplier Evaluation Research

In this study, we have a research of the small and medium-sized enterprise supply chain supplier based on the AHP. For supply chain management issues in the supplier evaluation establishes the evaluation index system and then uses AHP decide the weight of each evaluation index. Moreover, it uses Linear Weighting Method to study supplier performance from perspective of quantitative research and gives the measurement process. In our empirical research, the applied method is scientific and feasible.

The association between lifting an administrative restriction on antidepressant dispensing and treatment patterns in Iceland

PurposeOn March 1st 2009, restrictions on the dispensing of selective serotonin reuptake inhibitors (SSRI) in Iceland were lifted. Incident rates and changes in early discontinuation and switching before and after the change were investigated. MethodsNew users of antidepressants between March 1st 2006 and March 1st 2010 were selected from the Icelandic Prescriptions Database. The study population was split into one intervention cohort (2009) and three comparison cohorts (2006, 2007, and 2008). Incidence rate ratios (IRR) and odds ratios (OR) were used to compare incidence rates and early discontinuation. ResultsThe overall incidence rates of antidepressant use decreased from 33.10 to 28.71 per 1000 persons per year (IRR 0.87; 95% confidence interval (CI), 0.78–0.97) from the 2006 to the 2009 cohort. The incidence rate for SSRIs did not change over the period. Early discontinuation for SSRIs increased from 30.2% in 2006 to 34.1% in 2009 (OR 1.19; 95% CI 1.06–1.33). ConclusionsThe change in reimbursement does not seem to have affected incidence rates but it may be related to increased early discontinuation, which can lead to increased drug wastage. It might be more clinically rational to initiate patients on smaller supply, allowing for more frequent check-up visits.

Profit Seeking vs. Survival Seeking: An Analytical Study of Supplier's Behavior and Buyer's Subsidy Strategy

Supplier default is common in emerging markets. Suppliers under the threat of default have different objectives from profit‐seeking companies. This paper analytically tests how profit‐seeking or survival‐seeking behavior, single‐period or two‐period consideration, and buyer's subsidy influence the supplier's and buyer's final utilities. The results show that under single‐period consideration, the supplier's survival‐seeking strategy in fact drives more start‐ups or small suppliers out of business when the competition becomes severe; under two‐period consideration, no matter which strategy (profit‐seeking or survival‐seeking) the supplier selects, the second‐period price and profit are always higher than those of the first period. Furthermore, we find that providing subsidy is an effective way for buyer to keep suppliers’ competition at a certain level on the behalf of buyer's interest. By numerically estimating the benefits associated with the cost of subsidy, we provide a basis for understanding the cost–benefit analysis of buyer's subsidy strategy.

Small-Sized Suppliers Entering Large Markets: An Ethical Initiative of the Caras do Brasil Program

The Pao de Acucar Group was a pioneer in food retailing in Brazil and is now one of the largest Brazilian retailers. Working in a pulverized market characterized by small players, the Group produces US$ 20.4 billion in gross sales. It has become the largest employer in the country with 140,000 of employees working in over 1,800 stores, in 18 of the 25 states in Brazil, and covering a sales area of over 2,800,000 m2 (Grupo Pao de Acucar, GPA Consolidado. Resultados 3T12. Sao Paulo, Brazil, p. 2. November, 1, 2012). The objective of this article is to analyze a business inclusion strategy of the Pao de Acucar Group. The Caras do Brasil Program (Faces of Brazil) was created in 2002, by the Group directors as an effective initiative, aiming to develop a new sales channel for sustainably handling products. The Program opens opportunities for small suppliers, not only in the Pao de Acucar chain but also among competitors and in other industries. The Program established some requirements for the producer to become a supplier, aiming to adapt the products to a regular commercialization with the Group. In this way, small producers can now rely on a complete business process, while beforehand the goods were sold mostly through small channels.

Exploitation, exploration and the ambidextrous design choice in the transition to electric vehicles - an analysis of small and medium-sized automotive suppliers in Germany

The automotive industry will undergo a discontinuous and long-term transformation due to the transition to electric vehicles. In addition to the continuous improvement of traditional business models and existing technologies (exploitation), innovative business models and new technologies must be developed and adapted (exploration). Hence, for a successful transition to electric vehicles, a two-handed approach of exploitation and exploration – so-called ambidexterity – is essential. Although in the research literature useful propositions are represented, how to achieve exploitation and exploration sequentially or simultaneously, less is known about the ambidextrous design choice of small and medium-sized automotive companies. This article examines the ambidextrous design choice of small and medium-sized automotive suppliers headquartered in Germany in the transition to electric vehicles. Using a logistic regression analysis the article indicates important internal and external determinants of the ambidextrous design choice in the context of small and medium-sized automotive suppliers.