Supplier Relationships Research Articles

The Interplay Between Supplier Management Practices and Customer Satisfaction: An Empirical Investigation of the Banking Industry in a Developing Country

The study aims to investigate the interplay among supplier quality management (SQM), supplier relationship practices (SRP), process management (PRM), and customer focus (CF) within the value chain of the banking industry in a developing country perspective and to identify how these factors influence customer satisfaction (CS). Empirical data have been collected through a structured questionnaire from 463 bank employees of a developing country using a nonprobability convenience sampling strategy. The study employs a structural equation modeling approach to analyze the relationship between endogenous and exogenous variables. The study finds that SRP, PRM, and CF have a significant positive influence over CS. It also highlights that SQM has a significant positive relationship with the SRP and PRM. The study reveals that PRM mediates the relationship partially between SQM & CF and SQM & CS. Further, CF mediates the relationship partially between PRM and CS, while SRP mediates the relationship partially between SQM and CS. The findings of this research provide valuable insight into the stakeholders associated with the banking sector and policymakers regarding the importance of supplier management practices, particularly enabling the banks of emerging economies to understand the influence of SQM and SRP on guiding PRM, CF, and CS. The study only focuses on one developing country perspective and one specific industry, which may limit the generalizability of the findings to other contexts. Future research could expand the scope to include multiple developing countries and industries to validate the findings and investigate the moderating effect of contextual factors on the relationships between SQM, SRP, PRM, CF, and CS.

Effects of Climate and Land-Use Change on the Supply and Demand Relationship of Water Provision Services in the Yellow River Basin

The Yellow River Basin (YRB) has undergone profound climate and land-use change. These transformations are anticipated to affect the availability of water resources, potentially causing substantial perturbations to the equilibrium between water availability and societal needs. Consequently, research is warranted to explore the ramifications of climate and land-use change on the water provision service, particularly their impacts on the delicate equilibrium between supply and demand. To quantify the water supply–demand relationship, this study introduces the water supply and demand index (WSDR). This study examines the impacts of climate and land-use change on the actual evapotranspiration, water yield, and WSDR in the YRB from 1995 to 2019. According to the results, the YRB experienced an increase in forest land by 4.72%, grassland by 1.71%, and a substantial surge of 595.36% in construction land; however, cropland witnessed a decrease of 5.95%. The climate exhibited a discernible wetting trend (3.38 mm/year, p < 0.01). The actual evapotranspiration significantly increased by 2.45 mm/year (p < 0.01), but this increase was not substantial enough to result in a decline in the water yield, since precipitation also increased. The annual water demand depth demonstrated a statistically significant increasing trend (0.13 mm/year, p < 0.01), but this increase was not sufficient to cause a decrease in the WSDR, since the water yield also increased (0.94 mm/year). Land use had a significantly negative effect on the water yield and WSDR, but this negative effect was offset by the positive effects of climate variability. At the basin scale, there exists a surplus of water resources (WSDR > 0). Nevertheless, regions grappling with water resource deficits (WSDR < 0) have witnessed an increase from 18% in 1995 to 26% in 2019. This indicates that the primary water resource problem in the YRB is the uneven spatial distribution of water resources. Hence, implementing spatial management strategies at larger scales may be instrumental in mitigating water scarcity in the region. These findings can serve as a valuable reference for the management of water resources, as well as for basin planning and construction.

The impact of boundary conditions on the relationship between value creation and value appropriation in buyer-supplier relationships

Purpose This study aims to investigate whether higher value creation leads to higher value appropriation and to identify the boundary conditions in a buyer–supplier relationship that can explain why a particular supplier can appropriate higher value than others. Design/methodology/approach The study uses questionnaire surveys. The sample of the survey has 150 publicly-listed supplier firms in Taiwan. The unit of analysis is the buyer–supplier relationship. Findings In the buyer–supplier relationship, suppliers’ bargaining power, partnership and a supplier’s original brand manufacturing (OBM) business can strengthen the positive relationship between value creation and value appropriation. Research limitations/implications This study adopts the unilateral viewpoint of suppliers; however, some constructs might require dyadic evaluation. This study only explores the spillover effect of OBM business on the relationship between value creation and appropriation. Practical implications The spillover effect of a supplier’s OBM business in a buyer–supplier relationship allows the buyer to share more common benefits and the supplier to capture more private benefits as compensation. By broadening its customer base, a supplier can increase its bargaining power. A supplier can also maintain a strategic partnership with each essential buyer. Originality/value To avoid the dark-side effect of partnership, the model provides the contingency that a supplier can capture more value from a buyer–supplier relationship.

Examining the impact of market power discrepancy between supply chain partners on firm financial performance

Market power reflects a firm's competitive advantage and plays an important role in its performance. However, in a buyer-supplier relationship, how the asymmetric market power between a firm and its partners affects the firm financial performance remains an open question. This study investigates the impact of market power discrepancy (MPD) between a focal firm and its supply chain partners on the focal firm's financial performance, as measured by return on assets (ROA). With empirical evidence from China's listed firms between 2001 and 2021, we find that a higher MPD between the firm and its supplier or the firm and its customer negatively affects the firm's financial performance. A supplier or customer that has a matched market power with the firm is the best candidate for building a relationship. In addition, our findings suggest that the strength of the buyer–supplier relationship amplifies the negative impact of MPD on the firm's financial performance, whereas the level of relationship embeddedness reduces the MPD's negative effect. Moreover, our findings suggest that firm-specific institutional, industry, and regional economic heterogeneities affect the MPD's financial impact. Further, we find that MPD not only negatively affects a firm's financial performance but also worsens its environmental, social, and corporate governance performance. Our study recommends that firms should alleviate the asymmetry of market power with their partners and leverage the relationship dependence to balance power and benefits.

Procurement under pressure: shifting governance strategies in turbulent times

ABSTRACT Organizations in the public sector generally use contractual governance mechanisms to govern buyer–supplier relationships. Little is known about what happens when procurement is put under pressure and which governance strategies are used in such turbulent times. News articles, parliamentary documents, and internal communication regarding the procurement of personal protective equipment during the COVID-19 crisis in the Netherlands were analysed to address this question. The findings show a brief shift from contractual to relational governance, followed by an attempt to return to contractual governance, albeit with different procedures. After the contract closes, limited governance strategies are applied, resulting in ‘laissez-faire’ governance.

The Role of Implementing Supplier Relationship Strategies, Relationship with Customer, and Information Sharing on Company Performance

Purpose-In this study, the effects of information sharing, customer relations, and supplier relationship strategies on company performance are investigated. Design/Methodology/Approach-The study's sample consists of workers of Bank Rakyak Indonesia, which is situated in Yogyakarta's Special Region. 60 workers served as responders in the study, providing a sample size. This research data is acquired using the Smart PLS analysis program in order to get the intended outcomes. Findings-Empirical results indicate that supplier relationship strategies and information sharing positively impact company performance. Conversely, relationship with consumers who have a negative impact on company performance. Research limitations/implications- This study's scope is restricted to operational factors that impact company performance, such as customer relationships, supplier relationship strategies, and information sharing. The study's findings can be utilized by businesses as a foundation for assessment to optimize variables that may impact their performance. Originality/value- It can be argued that there is still a dearth of research on the performance of banking institutions operating in the Special Region of Yogyakarta. No prior studies have addressed the performance of these institutions with regard to operational factors like supplier relationship strategies, customer relationships, and information sharing.

The Endowment Effect in China Rural Land and Property Market

To evaluate how the endowment effect be the obstacle in the agricultural and property market and to find key factors which have impact on endowment effect, this article re-defined what the endowment effect is in rural-land property market, which is mainly focus on how the decision-maker establish choices and evaluates the worth of the deals they hold. Then, this paper studies the phenomenon of price preference among supply and demand-side of farmland and property market in the application of Shaanxi province. Third, this paper exams the Chengdu's villagers voluntarily and compensation of the withdrawal from rural homesteads (WRH) with the obvious conflict between supplying and demanding of urban and agricultural building land resources. Based on the re-definition and main applications, this paper indicates that the key factors which affect the endowment effect includes emotional ties, degree of substitution of goods as well as products, income levels, price preferences on the demand sides as well as supply sides of the land market, perceived risk evaluation of future income situation, forecasted risk of the stability of the rural land property rights, the labour situation among various types of farmers, age, membership in cooperatives and whether there is a local intermarriage or not. This paper will also critically examine how endowment effect influence supply and demand relationships in the land and property markets, how the government might issue directives or create policies to support or discourage endowment effect in the farmland market and how to establish the innovation of "three rights of separation" in the land market. The potential remedies and suggestions are provided.

Modelling of barriers in implementing sustainable manufacturer-supplier collaboration and coping strategies

Finding new, creative ways to improve the performance of their supply chains is one of the biggest problems that manufacturing organizations confront in the age of globalization and competition. To achieve better performance, companies should engage in networking activities such as integrating with other supply chain participants. Manufacturing businesses also face sustainability issues caused by suppliers' practices that fail to meet sustainability criteria. In this sense, developing a collaborative relationship with a supplier is essential for successfully implementing sustainable practices and gaining a competitive edge. Therefore, it is imperative for manufacturing companies to effectively manage their relationships with their suppliers by strengthening their suppliers' commitment to sustainability. The concept of sustainable supplier collaboration (SSC) emerges from the combination of sustainability and supplier relationship building. SSC, in general, broadens the traditional supplier management system by incorporating long-term partnerships into the sustainable aspects. Companies have begun to acknowledge the value of SSC and are taking initiatives in this regard. The adoption has been extremely slow, despite the assurances of sustainable collaboration with suppliers. Hence, research is required to determine how supplier collaboration with economic, environmental, and social promises has been hindered. It is important to acknowledge any hurdles that manufacturing organizations may have while developing SSC. Also, a thorough analysis of these barriers is essential so effective and sustainable collaboration with suppliers can be achieved. Therefore, the primary goal of the study is to identify and analyze barriers to sustainable collaboration with suppliers. The integrated methodology of Total Interpretive Structural Modelling-Decision Making Trial and Evaluation Laboratory (TISM-DEMATEL) is used to achieve the purpose of study. An extreme case scenario involving one manufacturer of home appliances and its suppliers is used in a dyadic India based case study. The findings of this study reveal that the most significant barriers to SSC are lack of manufacturer-supplier communications for sustainable standards and appropriate regulations, lack of trust between manufacturer and supplier, lack of scope and focus for sustainable collaboration, unwillingness to share risks and rewards, lack of top management involvement, lack of combined training programs, and lack of consistent and adequate performance measurement systems. These barriers not only contribute directly to hindering SSC efforts but also influence other barriers at intermediate and lower levels. Additionally, the study offers detailed explanations of each barrier, thereby providing valuable insights for better understanding and effective implementation of sustainable manufacturer-supplier collaboration (SMSC).

Strategic Procurement Practices and Performance of Investment Firms Listed in Nairobi Securities Exchange, Kenya

The overall goal of the proposed study was to lay out the impact of key obtainment rehearses on acquisition execution of venture companies recorded in the NSE, Kenya. The specific objectives were to investigate how investment firms listed on the NSE’s procurement performance is affected by strategic supplier relationship practice; to determine how strategic contract management practices affect investment firms listed on the NSE procurement performance; To determine the impact of strategic sourcing on the procurement performance of NSE-listed investment firms in Kenya and; to ascertain how the practice of strategic negotiation affects investment procurement performance firms listed in the NSE, Kenya. This research problem was studied through the use of a cross-sectional research design. The units of observation constituted the 104 top and middle management staff working in the offices of investment firms listed in the NSE. This study used Yamane’s method to understand the sample size. Following this sample determination formula, the calculation generated a sample of 83 respondents from which the study sought information from. This study utilized both primary and secondary data sources. Primary data was gathered using research questionnaire as the research instrument. To complement the primary data, secondary data collection sheet was employed in collecting the secondary data from audited reports of the Company, NSE and other reliable sources. The researcher dropped the questionnaires physically through face-to-face method requesting them to fill them promptly and pick them up once filled up. The structured questions were used in an effort to conserve time and money as well as to facilitate in easier analysis as they are in immediate usable form; while the unstructured questions were used so as to encourage the respondent to give an in-depth and felt response without feeling held back in revealing of any information. Before processing the responses, the completed questionnaires were edited for completeness and consistency. The raw primary data collected was coded prior to being input into SPSS statistical analysis software. Once coded, the data was then cleaned to ensure accuracy and completeness of the information obtained. The data collected was both quantitative and qualitative and it was analyzed descriptively and inferentially. In addition, correlation analysis was conducted to the indicated the nature (positive or negative) and significance of the relationships between the variables in the study. Regression analysis was used to test the direction and magnitude of the relationship between the study variables. The study found that strategic supplier relationship affects procurement performance of investment firms listed in the NSE to a great extent. Utilization of strategic contract management practice was found to affect the procurement performance of the investment firms to a great extent. The study found that strategic sourcing practice affects the procurement performance of investment firms to a great extent. Strategic negotiation practice affects procurement performance to a moderate extent.It is imperative that Investment firms listed in the NSE reviews their existing procurement systems in order to identify the weak points and fasten them. Investment firms listed in the NSE should adopt customer orientation and then implement customer integration in order to receive a high level of procurement performance. Investment firms listed in the NSE should try as much as possible to tailor make their processes to best suit their unique needs.

WAYS OF INCREASING THE COMPETITIVENESS OF FOOD INDUSTRY ENTERPRISES


 
 
 
 Purpose. The purpose of this study is to provide food industry professionals, entrepreneurs, and stakeholders with valuable insights and actionable strategies to enhance the competitiveness of their enterprises. By exploring various approaches and methods, we aim to empower individuals and organizations within the food industry to thrive in a highly dynamic and competitive environment. Through this study, readers will gain a deeper understanding of the critical factors influencing competitiveness and learn practical ways to stay ahead, adapt to consumer trends, optimize operations, and foster innovation within their food businesses. Ultimately, our goal is to facilitate the growth and sustainability of food industry enterprises in an ever-evolving market landscape.
 Results. In the dynamic food industry, competitiveness is pivotal for survival and success. It goes beyond mere participation; it's about thriving amidst intense competition, meeting consumer expectations, and outperforming rivals. Competitiveness is defined as a food enterprise's ability to strategically position itself, surpass competitors, and consistently exceed consumer expectations. Key factors in competitiveness include maintaining stringent quality and safety standards, ensuring operational efficiency and cost management throughout the supply chain, continuous innovation and product development, understanding evolving consumer preferences through market research, and fostering efficient supply chain management through strong supplier relationships, inventory optimization, and logistics. To bolster competitiveness, companies invest in improving product quality and safety through Quality Assurance programs and adherence to regulatory requirements. They also prioritize cost efficiency strategies such as lean manufacturing, supply chain optimization, and sustainability initiatives. Additionally, innovation and product development efforts focus on consumer-centric design, R&D investments, and strategic new product launches.
 Scientific novelty. The scientific novelty of this study lies in the comprehensive synthesis and application of multidisciplinary strategies for increasing the competitiveness of food industry enterprises. While previous research has explored individual aspects of competitiveness, such as quality control, cost efficiency, or market analysis, this article uniquely integrates these facets into a holistic framework. By doing so, it offers a novel perspective on how food businesses can thrive in a complex and ever-changing environment.
 Practical value. The practical value of this study is twofold: it empowers food industry professionals with actionable strategies to enhance competitiveness, helping them stay ahead in a rapidly changing market. Additionally, it provides insights into risk mitigation and resource optimization, enabling businesses to navigate challenges effectively and maximize profitability.
 
 
 

Buyer–Supplier Relationship Dynamics in Buyers’ Bankruptcy Survival

A bankrupt buyer firm's interactions with its suppliers during bankruptcy have critical implications for both parties and for the broader economy, yet these interactions remain poorly understood. The authors build on research on buyer–supplier relationship dynamics to demonstrate that accommodative and exploitative velocities—the rate and direction of change in the corresponding acts—serve as signals affecting bankruptcy survival. They show how signal characteristics (i.e., the variability in accommodative and exploitative acts) and signaler characteristics (i.e., whether the party undertaking the acts is the buyer or its suppliers) moderate the impact of accommodative and exploitative velocities on bankruptcy survival. Study 1 examines the bankruptcy survival outcome of 310 U.S. bankruptcies over 14 years and finds that a 1% increase in accommodative (exploitative) velocity increases (decreases) the buyer's survival by 39% (33%). Further, variability in accommodative acts weakens their effect, and suppliers' (vs. the buyer's) accommodative and exploitative velocities are less deterministic of the buyer's bankruptcy survival. Study 2 uses a scenario-based experiment to shed light on the mechanism underlying the impact of the two velocities on bankruptcy survival. The findings from both studies demonstrate the key role played by buyer–supplier interactions in a buyer's bankruptcy survival.

A multinomial modeling approach to assess supplier delivery performance for buyer-supplier alignment

Purpose Untimely delivery of goods and services, especially in a post-COVID landscape, is a critical harbinger of end-to-end fulfillment. Existing literature in supplier delivery modeling is focused on penalizing suppliers for late deliveries built into a contractual transaction, which eventually erodes trust. As such, a holistic modeling technique focused on long-term relationship building is missing. This study aims to design a supplier evaluation model that analytically equates supplier delivery performance to cost realization while replicating a core attribute of successful supply chains – alignment, leading to long-term supplier relationships. Design/methodology/approach The supplier evaluation model designed in this paper uses delivery deviation as a unit of measure as opposed to delivery duration to enhance consistency with enterprise resource planning protocols. A one-sided modified Taguchi-type quality loss function (QLF) models delivery lateness to construct a multinomial probability penalty cost function for untimely delivery. Prescriptive analytics using simulation and optimization of the proposed mathematical model supports buyer–supplier alignment. Findings The supplier evaluation model designed herein not only optimizes likelihood parameters for early and late deliveries for competing suppliers to enhance total landed cost comparisons for on-shore, near-shore and off-shore suppliers but also allows for the creation of an efficient frontier toward supply base optimization. Research limitations/implications At a time of systemic disruptions such as the COVID pandemic, global supply chains are at risk of business continuity. Supplier evaluation models need to focus on long-term relationship modeling as opposed to short-term contractual penalty-based modeling to enhance business continuity. The model offered in this paper is grounded in alignment – a cornerstone of successful supply chain integration, and offers an interesting departure from traditional modeling techniques in this genre. Practical implications The results from this analytical approach offer flexibility to a supply manager toward building redundancies in the supply chain using an efficient frontier within the supply landscape, which also helps to manage disruption and maintain end-to-end fulfillment. Originality/value The model offered in this paper is grounded in alignment – a cornerstone of successful supply chain integration, and offers an interesting departure from traditional modeling techniques in this genre. The authors offer a rational solution by creating an evaluation model that uses penalty cost modeling as an internal quality measure to rate suppliers and uses the outcome as a yardstick for negotiations instead of imposing penalties within contracts.

Supplier innovativeness, supplier relationships, and enterprises' finance constraints

AbstractIn this study, we adopt the perspective of supplier innovation and manually collect samples of enterprises and their suppliers listed on China's Shanghai and Shenzhen A‐shares markets from 2008 to 2021 to investigate whether supplier innovativeness affects enterprises' financing constraints. We find that supplier innovativeness can significantly alleviate enterprises' financing constraints; this effect is more significant when the relationship between enterprises and suppliers is more stable and their economic dependence is higher. The analysis of the mechanism of action reveals that supplier innovativeness can alleviate enterprises' financing constraints by enhancing their innovativeness. The heterogeneity analysis finds that the alleviation effect of supplier innovativeness on enterprises' financing constraints is more significant in nonstate‐owned enterprises. We examine the factors influencing enterprises' financing constraints from the unique perspective of supplier innovativeness, enrich the literature on financing constraints and provide new ideas for enterprise managers and policymakers.

Inhibition or promotion: the impact of carbon emission trading on market structure: evidence from China

Market structure serves as a crucial basis for government economic policies and the formulation of competitive strategies by businesses. It determines the formation of prices, the functioning of supply and demand relationships, the degree of competition, and exerts a significant influence on market economies. This paper first deduces the theoretical implications of carbon emissions trading on market structure and its regulating factors-based Theory of the Firm. It then utilizes the quasi-natural experiment of China’s pilot carbon emissions trading policy implemented in 2013, employing DID model, to empirically examine the policy effects and influencing mechanisms of carbon emissions trading on market structure. We find that carbon emissions trading policies can significantly inhibit market concentration and promote the development of market liberalization. This conclusion remains robust after a series of rigorous tests. Additionally, the analysis of dynamic effects reveals a noticeable lagged and incremental impact of carbon emissions trading policies on market structure. The negative adjustment of market concentration due to carbon emissions trading policies initiates in the policy’s starting year and gradually intensifies in the third phase. As expectations towards the policy stabilize, the negative adjustment decreases, and the short-term effects of carbon emissions trading policies are greater than the long-term effects. To verify the role of carbon emissions trading policies in influencing market structure during their implementation, a mechanism analysis based on cost and benefit perspectives is conducted. The results suggest that carbon emissions trading policies not only increase the environmental costs for industry-leading companies but also reduce the potential gains from market structure adjustments. Therefore, we propose promoting market competition, encouraging technological innovation, and strengthening transparency and regulation while considering differences in market structure. The findings of this paper provide new policy insights for promoting high-quality economic development and deepening market structure reforms in the context of the dual carbon goals.

Supply Chain Management Practices, Information Advancement and Organizational Performance of Large Flour Milling Companies in Nairobi City County.Kenya

Companies not only must reestablish themselves to produce higher-quality goods and services, reduce waste, and adapt to the demand, but also to manage their supply chain management effectively as a result of the increasing number of competing companies growing both locally and internationally. As a result, the study sought to establish the supply chain practices affect the organizational performance of milling company listed Nairobi Stock Exchange. The specific goals will be to determine the influence of Green supply chain practices, supplier management practices, outsourcing practices, and Supply Chain Management on the organizational performance of milling company listed Nairobi Stock Exchange, as well as to determine the moderating effect of information technology on contemporary supply chain practices on the organizational performance of milling company listed Nairobi Stock Exchange. The theory of lean Contract Value, transaction cost theory, theory of supply chain constraints and resource based view theory were used in the study. A descriptive study design was used in this investigation. The study's target population was the 260 employees of the milling company listed Nairobi Stock Exchange, as defined by the Kenya Association of Manufacturers Directory, who worked in procurement, marketing, finance, security, ICT, or similar management. A structured questionnaire was used to collect data. A sample of 73 respondents was selected using Yamane (2012) formula. Descriptive statistics, inferential statistics was used to analyze the data. A pilot study involving 8 respondents was conducted to determine the data collection tool reliability. The study instrument had Cronbach’s alpha coefficients of between 0.756 and 0.836 on all study constructs and hence fit for the field study. Based on final results the study found that green supply chain practices, supplier management, and outsourcing positively and significantly influence the performance of large-scale flour processing firms in Kenya. Information advancement was identified as a critical moderating factor that enhances the relationship between these supply chain management practices and performance. Specifically, information advancement amplifies the effects of green supply chain, supplier management, and outsourcing on operational performance. The study also suggested that Flour processing firms in Kenya should fully embrace green supply chain practices, including waste management, efficient energy equipment, and the use of natural light where possible to improve sustainability and performance. The study also suggested that Firms should enhance supplier relations by engaging suppliers in product development, sharing information, and rewarding top-performing suppliers to foster commitment and motivation. The study also suggested that Firms should seek cost savings, efficiency, and sustainability when outsourcing services. This can be achieved through supplier performance evaluations and formal contracts. The study also suggested that regularly review information advancement strategies to optimize performance. This study contributed to supply chain management theory by confirming the relationship between supply chain practices, information advancement, and firm performance. It strengthens the theoretical framework and informs policy makers and large-scale flour processing firms about the importance of supplier management, green supply chain, and outsourcing in supply chain management policies and regulations. In practice, the study guides firms on how to enhance performance through effective supply chain management considering information advancement. The study suggested that Future research can explore the relationship between supply chain management and performance in other sectors beyond flour processing, such as agriculture, transportation, shipping, and manufacturing. Additionally, studies can investigate the impact of different moderators, such as dynamic capabilities, legal frameworks, government regulations, and competition, on the relationship between supply chain management and performance. This will contribute to a more comprehensive understanding of supply chain management dynamics

Oil Prices and the Global Economy: a New Paradigm

Since the dawn of the automobile age at the beginning of the 20th century, oil has guided the growth of the global economy. The availability of oil and its price have been a determinant in times of both war and peace. The Allied nations achieved victory in two world wars in large part because of their ability to dominate the oil supply. The post-war boom ran on oil that was widely accessible and reasonably priced. When that supply tightened and became subject to political manipulation with the formation of OPEC, there was a direct correlation with slowing growth. This supply and demand relationship between oil and the rest of the modern economy was the underpinning of a Paradigm: when oil was readily available the economy could grow; when it became too scarce or expensive, the economy stalled. Following the end of the Cold War, geopolitics focused on ensuring access to supplies in the Middle East - the swing producing region whose output determined marginal cost and price – even at the expense of wars in Iraq, Kuwait, and Syria and ongoing tensions with Iran. Following the financial crisis of 2008, the pattern of economic growth began to diverge from the supply and price of oil. In the emerging New Paradigm, renewable energy, climate impacts, and new sources of supply from fracking and new discoveries are the determining factors. Oil and its derivatives remain important but their close link to economic performance has been broken.

Determining Factors for Supply Chain Services Provider Selection and Long-Term Relationship Maintenance: Evidence from Greece

Background: Due to increased globalization and its subsequent rise in competitiveness, the role of supply chain services (3PL) in managing logistics, reducing operational and non-operational costs, and managing customer and supplier relationships, have become of utmost importance. Customer-centric production has led to the development of a close relationship between production processes. Amidst all this, the demand for logistic services has dramatically increased, thus putting more pressure on firms for enhanced operational results, and leading to the outsourcing of their internal and external logistic activities. On the other hand, supply chain firms that provide 3PL services seek to enhance their sustainability and predict their customers’ demand. Methods: The authors collected quantitative data from 81 firms that operate in various industrial sectors in Greece. A questionnaire was sent for completion, in which firms could rate and evaluate various aspects that were discerned as important for deciding to cooperate with a 3PL service provider and maintain this cooperation in the long run. To extract the required outcomes, statistical analyses like categorical regression (CATREG) and MANOVA were utilized. Results: The demand for 3PL services was affected by 3PL service providers’ operational performance based on accuracy, reputation, and IT capabilities, while the customer firms’ intention for maintaining cooperation with 3PL service providers was affected by their reliability level, improved service efficiency, and trustworthiness. Conclusions: 3PL service providers should seek to improve the reputation, IT infrastructure, and accuracy of their firm's operations to have a continuous demand for their services. Apart from that, 3PL service providers to maintain the cooperation with their customers, need to enhance the levels of their services reliability and efficiency, while also creating a bond of trust with their existing customers.

A novel strategy segmentation methodology integrating Kraljic portfolio matrix and supplier relationship model: a case study from machinery industry

PurposeThe purpose of this article is to develop a new model called strategy segmentation methodology (SSM) by combining the Kraljic portfolio matrix (KPM) and the supplier relationship model (SRM) so that the buyer company can effectively conduct its relations with its suppliers.Design/methodology/approachThe importance weights of the criteria defining the dimensions of each model are calculated with the single-valued neutrosophic analytical hierarchy process (SVN-AHP) method. Subsequently, the derived importance weights are employed in the single-valued neutrosophic technique for order preference by similarity to ideal solution (SVN-TOPSIS) method to obtain the scores of the suppliers and their supplied items. In order to illustrate the feasibility of the proposed methodology, a case study in the machinery industry is performed with the related comparative analysis.FindingsThe implementation of SSM enables to formulate various strategies to manage suppliers taking into account the items they procure, their capabilities and performance and the supplier–buyer relationship strength. Based on the proposed strategies, it is concluded that the firm in the case study should terminate its relationship with six of its suppliers.Originality/valueAlthough KPM has become the basis of purchasing strategies for various businesses, it neglects the characteristics of suppliers and the buyer–supplier relationship. In this study, KPM is integrated with the SRM approach presented by Olsen and Ellram (1997) to overcome these disadvantages of KPM. The novel integration of the two approaches enables the realization of a robust and reliable supplier classification model.

Stable suppliers and real earnings management: empirical evidence from private placements

ABSTRACT This study uses text analysis to extract stable supplier information from company annual reports and discusses its impact on the real earnings management strategies used during a private placement period. The results show that companies with stable suppliers conducted more downward real earnings management prior to a private placement than those without such suppliers to form collaborative relationships with suppliers for earnings management. The suppliers mainly assisted majority shareholders in tunnelling, conducting covert methods such as share price discounts and offering cash dividends. This could be driven by the prospect of obtaining more purchases from the company following the private placement. This study is the first to explore how stable suppliers assist companies in conducting real earnings management and majority shareholders with asset tunnelling. The findings contribute to the research on the economic consequences of supplier relationships and the influencing factors of equity financing and real earnings management.

Quality Management Systems Implementation and their Output on Productivity and Organisational Performance

The companies that struggle with the problem of inefficient resource usage are most likely those with the absence of an effective management system. Organizational performance can be greatly enhanced through the systematic measurement, monitoring, and improvement of the quality of a company's offerings. This paper presents a study that determines the relationship between applying quality management systems (QMS) on organi-zational performance (OP) and impacts and benefits generated by their implementation. The main purpose of the article is to survey the effect of QMS on organisation efficiency based on the concept of change management. Data was collected from randomly selected employees from the top and middle management through questionnaire survey to check the implementation process and effectiveness of QMS. The collected data were analyzed using Statistical Package for Social Sciences (SPSS). The results of this study confirm that there are some positive effects on organisational management variables and establishing training and explanation courses and meetings. Organisational impacts such as efficiency, consumer satisfaction, employee performance, profitability, internal improvement, competitive advantage, supplier relationships and quality of products and services can be also highlighted. The findings from this study are expected to support management’s decision to implement QMS if one of their objectives is to use their resources efficiently. Customer's needs and perceptions are also considered by an adequate feedback system, proper audits, and management reviews. It is shown that QMS can only be successful if top management are persuaded to take a sustained and active role in the implementation process, it is essential to regularly conduct training in this area in order to instill habits and make employees more amenable to the change of working methods.