Customer Supplier Research Articles

Customer–supplier relationships and non-linear financial policy response

We investigate whether changes in the capital structure of major customers play an important role in determining the firm’s financial policy. Following (Leary and Roberts, 2014) and using average customer idiosyncratic equity return shocks, we find that a firm’s leverage ratio is negatively and nonlinearly affected by the leverage ratio of its major customers. This “customer effect” occurs only when the idiosyncratic equity shock to the customer firms is negative. Consistent with the prediction of the modified pecking order theory that firms are more concerned about excessively high leverage ratios than excessively low leverage ratios, supplier firms tend to significantly reduce their long-term debt in response to increases in the leverage ratios of their major customers but are insensitive to the inverse change. Finally, consistent with the stakeholder theory and the dynamic trade-off theory, we find that this capital structure correlation is more pronounced for firms producing specialized or unique products, firms with lower profitability, firms with weaker operational capabilities, firms that take more risks, firms whose customers operate in more competitive industries, and firms whose customers are more financially vulnerable. Our results contribute to identifying the dynamics and determinants of corporate capital structures.

VALUE CHAIN AND PRODUCT INNOVATION IN PALM OIL INDUSTRY IN ANAMBRA STATE

This research center on evaluation of effect of value chain on Product innovation in palm oil industry in Anambra was based on objectives which were to examine the effect of customer focus on Product innovation in palm oil industry in Anambra, evaluate the effect of R&D management on Product innovation in palm oil industry in Anambra, assess the effect of process management on Product innovation in palm oil industry in Anambra and determine the effect of supply management on Product innovation in palm oil industry in Anambra. A cross-sectional survey research design was employed. Structural Equation Modelling (SEM), using SMART-PLS was selected to investigate the effect of value chain on Product innovation in palm oil industry in Anambra. Data was collected through questionnaire from a sample of 265 Palm oil growers in Abuja. The finding shows that there is a positive significant effect of customer focus, R&D management, process management and supply management on Product innovation in palm oil industry in Anambra. It is recommended that, Palm Oil Growers should engage actively in customer focus, Palm Oil Growers should engage actively in R&D management, Palm Oil Growers should engage actively in process management and Palm Oil Growers should engage actively in borrowing from supply management. This will help them to easily improve their product innovation which will in turn lead to performance of their firms.

Suppliers’ decision on green innovation: A response to customers’ environmental regulation

This study examines whether customers’ environmental regulation (ER) affects suppliers’ green innovation. Relying on a unique dataset of customer–supplier relationships among listed firms in China, we demonstrate that suppliers’ green innovation increases in response to intensified ER pressure faced by customers. This finding holds even when considering alternative proxies of green innovation and ER, and an alternative sample. We also demonstrate that the impact of customers’ ER on suppliers’ green innovation is positively correlated with customers’ bargaining power. Our results contribute to the growing research on the crucial role of the supply chain in firms’ decision making processes.

Perspectives of two competing manufacturers: customer rebate vs. contract mechanism

PurposeThis paper aims to analyze the potentials of dynamic, commitment and revenue-sharing contracts; that a nonrebate offering manufacturer can use to safeguard his profit while his competitor offers customer rebates in a supply chain consisting of two manufacturers and a common retailer.Design/methodology/approachWe consider a two-period supply chain model to explore optimal decisions under eight possible scenarios based on the contract and rebate offering decisions. Because the manufacturers are selling substitutable products, therefore, a customer rebate on one of the products negatively impacts the selling quantity of other. Optimal price, rebate, and quantities are examined and compared to explore the strategic choice for both the rebate offering and non-rebate offering manufacturer. Comparative evaluation is conducted to pinpoint how the parameters such as contract parameters and its nature affect the members.FindingsThe results demonstrate that all these contracts instigate the rebate offering manufacturer to provide a higher rebate, but do not ensure a higher profit. If the revenue sharing contract is offered to the common retailer, the effectiveness of the rebate program might reduce significantly, and the rebate offering manufacturer might receives lower profits. A non-rebate offering manufacturer might use a commitment contract to ensure higher profits for all the members and make sure the common retailer continues the product.Originality/valueThe effect of customer rebate vs. supply chain contract under competition has not yet been explored comprehensively. Therefore, the study contributes to the literature regarding interplay among pricing decision, contract choice and rebate promotion in a two-period setting. The conceptual and managerial insights contribute to a better understanding of strategic decision-making for both competing manufacturers under consumer rebates.

Keunggulan Bersaing dan Loyalitas Pelanggan pada Distribusi Impor Beras Khusus di Indonesia

Importing the specific rice could only be done by BUMN (Badan Usaha Milik Negara) which in this article represented by PT DFG. The company is still lack of supervision of the customer relationship management implementation due to the absence of the special department and also lack of supervision of distribution. The study used Path Analysis with 35 distributor companies as sample. The purpose of the research is to analyze, directly and indirectly, the variables of customer relationship management and supply chain management on customers’ loyalty of imported specific rice intervened by competitive advantage variables. The results of the study show that the competitive advantage cannot act as an intervening variable and has an indirect effect on customer relationship management of the rice commodity customers’ loyalty. On the other hand, the competitive advantage can act as an intervening variable and has an indirect effect on supply chain management of the specific rice customers’ loyalty. Thus, the changes of the supply chain management implementation in PT DFG can affect customers’ loyalty indirectly through competitive advantage.

Pricing and investment decisions when facing heterogeneous customers under different supply chain power structures

This paper examines the pricing and joint investment decisions of a two-echelon supply chain with a manufacturer and a retailer under power structures. A manufacturer invests in a specific quality level to produce a quality product. Meanwhile, a retailer invests in the extended warranty service provision as an after-sales service. This study investigates the interplay of these two investments assuming two heterogeneous customer demands exist. Three decision-making analytical power structure models are developed, namely centralized, manufacturer-led decentralized, and retailer-led decentralized models. In both decentralized models, the Stackelberg game determines the optimal price and investment decisions to maximize member's profit. However, independently optimal decision-making with these models does not coordinate the supply chain and its members. Thus, this study proposes wholesale price contracts considering power structures to coordinate effectively and achieve a win–win situation. A numerical analysis has been performed to determine the optimal level for quality investment, extended warranty length, pricing, and supply chain performance. Furthermore, a sensitivity analysis explores key parameter's impact on heterogeneous customer demands and supply chain performance.

Database security at cache layer

As database security is the main concern, we are going to place an encryption module at the cache layer. All the encryption and decryption will be done at the cache layer before storing that data to the database, which will provide more security to the database Higher level security should be provided to the database so here we are placing an idea of Elliptical Curve Cryptography. A database is a collection of data that helps us to collect, retrieve, organize and manage the data in an efficient and effective manner. Databases are critical assets. They store client details, financial information, personal files, company secrets and other data necessary for business. Today database security is getting greater importance than the past which is the amount of data is stored in a corporate database is increasing. People are depending more on the corporate data for making a decision, management of customer service and supply chain management etc. Data stored in databases is usually very vulnerable data so it becomes very important and crucial to maintain this data securely. There are many front end applications that fetch data from secondary storage to main memory for processing and from main memory, data is stored in cache for temporary processing. Any loss or unavailability of data may seriously affect its performance. The database security should provide protected access to the contents of a database and should preserve the integrity, availability, consistency, and quality of the data. In this paper, I present a model where data is protected even on cache layer.

Building a Macroeconomic Simulator with Multi-Layered Supplier–Customer Relationships

This study constructs an agent-based model suitable for analyzing the propagation of economic shocks based on a macroeconomic agent-based model structure that covers major economic entities. Instead of setting an upstream and downstream structure of firms in the inter-firm networks, our model includes a mechanism that connects each firm through supplier–customer relationships and incorporates interactions between firms mutually buying and selling intermediate input materials. It is confirmed through the proposed model’s simulation analysis that, although a firm’s sales volume temporarily falls due to an economic shock of the type that causes a sharp decline in households’ final demand, the increase in assets held by households as they refrain from spending rather expands their capacity for consumption. As a result, after the economic shock ceases to exist, the firm’s sales volume tends to be even greater than that of the preceding periods of the shock. Furthermore, we found that when the sales volume of products in a final consumer goods sector falls during the shock, the falls in sales in the non-final consumer goods sectors are suppressed due to replacement demand, and the increase in sales volume for the non-final consumer goods sectors is moderated after the shock ceases to exist.

Horizontal Referrals in B2B Markets

Horizontal referrals—when suppliers recommend other suppliers—are a common phenomenon in complex B2B markets. For the referring supplier, giving the best possible horizontal referral may strengthen the relationship with its customer, yet it may also threaten the referring supplier's future revenues and cross-selling opportunities. Instead, the supplier could make an obligatory referral, one that fulfills the obligations of recommending another supplier while keeping the referring supplier's own interests paramount. The authors rely on role theory and its antecedents (mutual trust and referring supplier's dependence) to determine when a referring supplier adopts the role of a friend (vs. a businessperson) and gives the best possible referral (vs. an obligatory referral). Study 1, an experiment, supports the theoretical model. Study 2, a conjoint study, links the observable antecedents of the referring supplier–customer relationship to the choice of horizontal referrals. Study 3, another experiment, looks at the consequences of the horizontal referral on the referring supplier–customer relationship and shows that providing an obligatory referral can hurt the customer's intent to continue the relationship with the supplier. This effect is mediated by the customer's perceived alignment of interest with the supplier. For B2B marketing research and practice, the authors report that the supplier's dependence is critical in predicting the quality of horizontal referrals, even though an exploratory survey showed that customers overlook that dimension and focus on mutual trust when seeking referrals.

Cross‐market information transmission along the supply chain network

In this paper, we investigate whether and how investors of suppliers learn from the private information embedded in the customer credit default swap (CDS) market prior to customer earnings announcements. We find that investors of suppliers indeed incorporate the customer private information revealed in the CDS market into the supplier valuation, thereby leading to significant changes in suppliers’ future stock prices. Moreover, such price discovery effect is more pronounced when: (i) the level of customer private information revealed in the CDS market is more prominent; (ii) the customer bond market is more illiquid; (iii) the customers are expected to report bad earnings news or experience deteriorated credit conditions; (iv) the strength of the supplier–customer economic bond is stronger. Our results remain robust when we control for the supplier's own CDS market price discovery effect or conduct matched sample analyses. Finally, utilizing the passage of the Dodd–Frank Wall Street Reform and Consumer Protection Act (Dodd–Frank Act) as an exogenous shock, we show that the effect of customer CDS trading on suppliers’ future stock prices is less pronounced after the Dodd–Frank Act due to more explicit regulation on informed trading activities. Overall, our study documents significant cross‐market information transmission along the supply chain network (i.e., from the customer derivative market to the supplier equity market).

Examining sharing economy operations: A process perspective

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Value of dual-credit policy: Evidence from green technology innovation efficiency

The dual-credit policy (DCP), introduced by the Chinese government in 2017, aims to establish a market-based mechanism for fostering the coordinated development of energy-efficient and new energy vehicles in the automobile industry through a credit trading system. This policy plays a significant role in promoting green technology innovation, thereby contributing to the low-carbon transformation of the transportation sector in line with the dual-carbon target. However, challenges related to policy design and substantial variations among automakers during the implementation process have cast uncertainty on the effectiveness of the DCP. To address this issue, this study examines the impact and mechanisms of the DCP on the green technology innovation efficiency (GTIE) of automakers by utilizing a sample of 18 Chinese A-share listed automakers from 2012 to 2020. The analysis employs a combination of the propensity score matching (PSM) and difference-in-differences (DID) approaches. The empirical findings indicate that the introduction of the DCP significantly improves the GTIE of automakers. However, the intensity of this effect diminishes over time. The promotion of GTIE is primarily achieved by alleviating automakers’ financial constraints and increasing their management fund inputs. Furthermore, this effect is strengthened by customer concentration and supply chain concentration. Additionally, the study identifies certain enterprise characteristics that generate heterogeneity in the effects of the DCP, including enterprise ownership, region, and executive education background. The results reveal that the DCP has a more pronounced impact on private automakers, those located in eastern regions, and those with lower levels of executive education.

Conceptual Analysis of Total Quality Management in the Manufacturing Industry in India: An Analytical Study

In this abstract, Total Quality Management (TQM) in India's manufacturing sector is conceptually analyzed. TQM is a well-known methodology that emphasizes ongoing development, client happiness, and organizational excellence. TQM is essential for boosting competitiveness and tackling the issues brought on by international markets in the context of Indian manufacturing. The main TQM components—leadership commitment, workforce engagement, process improvement, and customer centricity—are examined in this examination. It investigates how these components fit into the Indian manufacturing sector while taking into account regional cultural, economic, and regulatory concerns. The abstract also analyses how TQM implementation has affected several facets of the manufacturing sector, including customer loyalty, operational effectiveness, product quality, and supply chain management. It also emphasizes the difficulties that Indian manufacturers may have adopting TQM practices successfully. This paper contributes to a better understanding of the function of TQM in promoting sustainable growth, quality improvement, and competitive advantage for Indian manufacturers by evaluating the conceptual framework of TQM and its application in the Indian manufacturing industry.

The study of value network reconstruction and business model innovation driven by entrepreneurial orientation

The impacts of business models on the successes of companies are convincing. Business Model Canvas (BMC) provides the basic framework that describes business logic. Yet it lacks an academic understanding of the internal structures of business models. This paper uses the grounded theory method, qualitative analysis as well as entrepreneurial orientation theory to conduct an individual case study on SHEIN’s business model. The research shows that SHEIN accurately addresses the customer pain points and customer benefits of fashionable women, and gains the trust of end-users by integrating its supply chain based in China. Entrepreneurial orientation drives SHEIN to set up its value network. From the perspective of value discovery, SHEIN accurately targets segmented customer groups. The enterprise reaches end users through social networks and establishes customer relationship with high viscosity. From the perspective of value creation, SHEIN reconstructs the value network, delivering great shopping experiences with low costs. From the perspective of value acquisition, SHEIN has scalability in cost structure and expandability in revenue source. The research found that SHEIN has occupied the low-end market of fast fashion through low-end entry, and is moving to the mainstream market of fast fashion through customer group upgrading, design upgrading and supply chain upgrading, bringing competitive challenge to the fast fashion market incumbents. The innovation of this research lies in: First, the Business Model Iterative Canvas (BMIC) could interpret the business models and their logic in-depth. Second, the research reveals how the competitive advantage is created through value network reconstruction.

TRANSFORMING SERVICE OPERATIONS WITH AI: A CASE FOR BUSINESS VALUE

Artificial Intelligence (AI) has rapidly become a critical technology for businesses seeking to improve efficiency and profitability. One area where AI is proving particularly impactful is in service operations management, where it is used to create AI-powered service operations (AIServiceOps) that deliver highvalue services to customers. AIServiceOps involve the use of AI to automate and optimize various business processes, such as customer service, sales, marketing, and supply chain management. The rapid development of Artificial Intelligence has prompted many changes in the field of Information Technology (IT) Service Operations. IT Service Operations are driven by AI, i.e., AIServiceOps. AI has empowered new vitality and addressed many challenges in IT Service Operations. However, there is a literature gap on the Business Value Impact of Artificial intelligence (AI) Powered IT Service Operations. It can help IT build optimized business resilience by creating value in complex and ever-changing environments as product organizations move faster than IT can handle. So, this research paper examines how AIServiceOps creates business value and sustainability, basically how AIServiceOps makes the IT staff liberation from a low-level, repetitive workout and traditional IT practices for a continuously optimized process. One of the research objectives is to compare Traditional IT Service Operations with AIServiceOPs. This paper provides the basis for how enterprises can evaluate AIServiceOps and consider it a digital transformation tool. The paper presents a case study of a company that implemented AI-powered service operations (AIServiceOps) and analyzes the resulting business outcomes. The study shows that AIServiceOps can significantly improve service delivery, reduce response times, and increase customer satisfaction. Furthermore, it demonstrates how AIServiceOps can deliver substantial cost savings, such as reducing labor costs and minimizing downtime.

Customer value-in-use monitoring in business markets: An investigation into its determinants and consequences

Monitoring customers' value-in-use (VIU) is the necessary next step in relationship management, as the emerging literature on customer success and value management shows. However, despite considerable academic and managerial interest, how suppliers' internal structures and processes can adequately support VIU monitoring—and what relationship effects can be expected from this process's execution—remain unclear. Drawing on two unique data sets, we build on supplier and customer evaluations of VIU monitoring to empirically examine the constructs' determinants and consequences. In Study 1, we survey 140 supplier firms to demonstrate that two factors positively affect VIU monitoring: top managers' support for customer success management and a supplier's ability to engage in task discourse with customers. In Study 2, we test VIU monitoring's effect on customer-perceived relationship value using data from 155 customer firms. Our results demonstrate that VIU monitoring positively affects relationship value as it is perceived by the customer firm. However, VIU monitoring is not equally important for each supplier–customer relationship. Moderator analysis reveals that a customer's absorptive learning capacity can partially compensate for a supplier's weak VIU monitoring activities.

Omnichannel retailing: exploring future research avenues in retail marketing and distribution management

PurposeThis study explores the present state of research related to omnichannel retail, investigates retail's different sub-areas and suggests future research directions.Design/methodology/approachThe subdomains of omnichannel retail have been identified using a keyword co-occurrence network (KCN) map and content analysis. The 5W1H method assisted in finding the bibliographies of 258 SCOPUS-indexed and ABDC-ranked journal articles and showcasing the omnichannel retail landscape.FindingsMost research on omnichannel retail is concentrated on five subdomains: customer behaviour, channel integration, technological innovation, supply chain and operations and strategy. The study's conceptual framework illustrates the omnichannel retailing environment and the variables that must be considered whilst establishing an omnichannel strategic vision. Besides, future researchers have been urged to concentrate on interdisciplinary research, as a seamless experience is unachievable if focussed on a single subdomain.Research limitations/implicationsThere is a slight probability of missing out on some good articles as this study considered only those articles that have been published in SCOPUS and ranked by the ABDC quality list.Practical implicationsThis study emphasises that for businesses to capitalise on the omnichannel model, the businesses must undergo a transformation involving technology convergence, customer-centricity and internal process reorganisation that integrates consumer feedback to co-create value. When a business adopts an omnichannel model, the business's priorities shift. Rather than depending solely on technology, faster delivery and channel integration, an omnichannel strategy requires strong leadership, a clear vision, training for all stakeholders and an understanding of customer pain points to reach the full potential.Originality/valueThe illustration of the omnichannel retail landscape using the 5W1H methodology and antecedents-decisions-outcomes (ADO) framework.

Examining The Impact Of Strategic Supplier Partnerships, Customer Relationship, Postponement, And Supply Chain Responsiveness On Operational Performance: The Moderating Effect Of Demand Uncertainty

Uncertainty in demand is a common problem that always occurs in various businesses, this is inseparable from market trends that continue to change so that the wants and needs of consumers also change. The role of companies in overcoming demand uncertainties and maintaining firm performance is an issue that is debated among scholars. Therefore, this study investigates the moderating effect of demand uncertainty on the relationship between strategic supplier partnerships-supply chain responsiveness, customer relations-supply chain responsiveness, and postponement -supply chain responsiveness and operational performance in the 7 largest food and beverage companies in the Indonesia, which is in Jakarta. in Jakarta because the researchers come from the Jakarta and know enough about the condition of the development of food and beverage companies in the area which is the research objective. Seven hypotheses were formulated and tested using correlation and regression statistical techniques on data collected from 150 respondents through a questionnaire survey and purposive sampling technique. The findings, strategic supplier partnerships, and customer relationships positively and significantly affect supply chain responsiveness, while delays negatively and significantly affect supply chain responsiveness, and supply chain responsiveness also has a positive and significant impact on operational performance. In addition, demand uncertainty positively moderates the relationship between strategic supplier partnerships and supply chain responsiveness, and positively moderates the relationship between customer relationships and supply chain responsiveness. However, demand uncertainty negatively and significantly moderates the relationship between postponement and supply chain responsiveness. Based on these findings, managers are expected to be able to reduce the effect of demand uncertainty so that operational performance can be improved.

Chinese Outward Foreign Direct Investment and Innovation in Host Countries: Evidence from Countries Along the Belt and Road

Foreign direct investment (FDI) can benefit innovation activity in host countries through spillover channels, such as reverse engineering, demonstration effects, and supplier–customer relationships. Using data from 26 countries along the Belt and Road route (BRCs) and 32 non-BRCs, we identified positive causal effects of the Chinese outward FDI on the innovation capacities in technology-intensive industries of both BRCs and non-BRCs. However, this effect varies depending on the host countries’ economic development levels. The impact of Chinese OFDI on the general innovation performance in host countries is absent. Meanwhile, the implementation of the BRI has on the whole, a negative impact on BRCs’ innovation performance.

Customer concentration and firm risk: The role of outside directors from a major customer

This paper examines the role of customer-affiliated outside directors on suppliers in reducing risk arising from having a major customer. Using a sample of US supplier firms, we find that a positive relationship between having a major customer and supplier risk is weakened with the presence of the major customer's representatives at suppliers' board. We further show that suppliers with customer-affiliated outside directors are more likely to have less conservative financial policies. Our results suggest that customers' board membership at suppliers helps mitigate the business risk due to the tightened supplier–customer relationship and reduced information asymmetry.