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1 – 10 of 20Lamiae Benhayoun, Marie-Anne Le-Dain, Tarik Saikouk, Holger Schiele and Richard Calvi
Buying firms involve suppliers early in New Product Development (NPD) projects to benefit from their capabilities. The authors investigate the joint impact on project performance…
Abstract
Purpose
Buying firms involve suppliers early in New Product Development (NPD) projects to benefit from their capabilities. The authors investigate the joint impact on project performance improvement, of the social capital established throughout the project, and the strategic preferred buyer/supplier statuses awarded prior to the project, from the buyer's perspective.
Design/methodology/approach
The authors propose a conceptual model underlining the complementary contribution to project performance of social capital dimensions and of preferred partners' statuses resulting from social exchange expectations. The model is analyzed with Partial Least Squares using 80 responses of purchasers and R&D managers involved in collaborative NPD projects with suppliers.
Findings
The relational capital built during the project has a positive central role, with a direct impact on NPD project performance and mediating effects through cognitive and structural capitals. The preferred partners' statuses have strong direct impacts on performance, and mediating effects that do not completely supplant the social capital's contribution.
Practical implications
The implications for the efficient management of supplier involvement are twofold. First, the authors encourage strategic investments of buying firms to acquire preferred buyer's status and to support preferred supplier programs. Second, the authors alert them on the importance of establishing trust and shared cognition during the project.
Originality/value
This study captures NPD project performance from the social angle of buyer–supplier relationship management. It demonstrates the complementarity of relationship management at the strategic and operational levels, before and during the project unfolding.
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Holger Schiele, Anna Bos-Nehles, Vincent Delke, Peter Stegmaier and Robbert-Jan Torn
Industrial revolutions have been induced by technological advances, but fundamentally changed business and society. To gain a comprehensive understanding of the fourth industrial…
Abstract
Purpose
Industrial revolutions have been induced by technological advances, but fundamentally changed business and society. To gain a comprehensive understanding of the fourth industrial revolution (I4.0) and derive guidelines for business strategy, it is, therefore, necessary to explore it as a multi-facet phenomenon. Most literature on I4.0, however, takes up a predominantly technical view. This paper aims to report on a project discussing a holistic view on I4.0 and its implications, covering technology, business, society and people.
Design/methodology/approach
Two consecutive group discussions in form of academic world cafés have been conducted. The first workshop gathered multi-disciplinary experts from academia, whose results were further validated in a subsequent workshop including industry representatives. A voting procedure was used to capture participants perspectives.
Findings
The paper develops a holistic I4.0 vision, focusing on five core technologies, their business potential, societal requests and people implications. Based on the model a checklist has been developed, which firms can use a tool to analyze their firm’s situation and draft their industry 4.0 business strategy.
Originality/value
Rather than focusing on technology alone – which by itself is unlikely to make up for a revolution – this research integrates the entire system. In this way, a tool-set for strategy design results.
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Niels J. Pulles, Jasper Veldman and Holger Schiele
This paper examines the competition between buying firms for the supplier’s competitive resources. The purpose of this paper is to examine how indirect capabilities – the ability…
Abstract
Purpose
This paper examines the competition between buying firms for the supplier’s competitive resources. The purpose of this paper is to examine how indirect capabilities – the ability to access external resources – can help in obtaining preferential resource allocation from suppliers.
Design/methodology/approach
Partial least squares structural equation modeling is used to analyze data of 163 buying firms that assess preferential resource allocation from suppliers.
Findings
Two indirect capabilities (a buying firm’s selection capability and relational capability) positively influence the firm’s competitive advantage. These relations are significantly mediated by preferential resource allocation of suppliers. The impact of preferential resource allocation appeared stronger for manufacturing firms than for service firms.
Research limitations/implications
This study’s data set represents the buyer’s assessment of suppliers’ resource allocation. Future research should aim for dyadic data for further validation. In addition, due to sample size limitations, this study’s data does not allow sector segmentation. A larger study that provides insights into segmentation is suggested for future research.
Practical implications
The results inform managers about the relevance of the competition for supplier resources with rival firms that share suppliers, and the influence of this competition on firm competitiveness. Managers should not only focus on the supplier itself, but also on the capabilities of the supply chain management (SCM) function to recognize and integrate the supplier resources.
Originality/value
This study adds to the extended resource-based view literature by integrating the notion of supplier resource competition. In addition, the study shows the importance of indirect capabilities for obtaining preferential resource allocation from suppliers. Finally, the authors show the importance of separating between service and manufacturing when examining SCM practices.
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Thomas Koerber and Holger Schiele
This research aims to investigate the impact of the current COVID-19 pandemic (C19, Corona) on trends of transcontinental sourcing as an extreme form of global sourcing. This…
Abstract
Purpose
This research aims to investigate the impact of the current COVID-19 pandemic (C19, Corona) on trends of transcontinental sourcing as an extreme form of global sourcing. This study starts by observing that the sideward movement of international trade in the past decade can be differentiated into an increase in transcontinental sourcing and a relative decline of intra-EU sourcing. By differentiating between continental and transcontinental sourcing, this study gains insights into global sourcing trends and conducts a fine-grained analysis of the impact of COVID-19.
Design/methodology/approach
After analysing Eurostat statistics, the authors conducted 21 semi-structured interviews with companies from multiple industry sectors affected by a high share of transcontinental suppliers. Using the Gioia method, data from the interviews were structured. By examining the identified motives, challenges and solutions, the authors analyse the impact of COVID-19 on transcontinental sourcing.
Findings
The COVID-19 pandemic seems not to represent a turning point stopping global sourcing. The authors did not find evidence for a trend reversal. Most of the interviewed companies share the opinion that transcontinental sourcing will remain important or slightly increase in the future. Based on the analysis of their specific motives for transcontinental sourcing, it became clear that factors supportive as well as detrimental to transcontinental sourcing are levelling each other out.
Originality/value
To the best of the authors’ knowledge, this is the first study explicitly differentiating between continental and transcontinental sourcing as different types of global sourcing. While in European sourcing, a decreasing trend is already evident, as shown by our data analysis, there is a lack of investigations addressing transcontinental sourcing. In this study, the authors concentrated on motives, challenges and solutions of transcontinental sourcing. Extending beyond the immediate COVID-19 impact assessment, findings suggest that purchasing would benefit from treating transcontinental, remote sourcing as a distinct process from continental sourcing, particularly intra-EU-sourcing.
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Juliano Afonso Tessaro, Rainer Harms and Holger Schiele
This study aims to analyze how startups organize their purchasing activities to improve operative excellence and become attractive customers.
Abstract
Purpose
This study aims to analyze how startups organize their purchasing activities to improve operative excellence and become attractive customers.
Design/methodology/approach
The authors use a two-phase exploratory approach with semistructured interviews and a World Café. In total, 20 startup purchasers and suppliers participated. It is an international study with participants from eight countries (Belgium, Brazil, France, Germany, Hungary, The Netherlands, the UK and the USA).
Findings
The authors find that startups organize the purchasing function in five ways: partial outsourcing, transactional-oriented, strategic only, outsourced purchasing and full department. Each type has advantages and disadvantages regarding operative excellence. The authors identify type-specific antecedents to operative excellence: forecasting, payment habits, ordering process, contact accessibility and quick decision-making.
Research limitations/implications
The value of this paper is that it offers entrepreneurs a framework to organize startup purchasing activities, including outsourcing options. Furthermore, it provides theoretical contributions that expand the topic of purchasing and supply organization and operative excellence to the startup context.
Originality/value
The value of this paper is that, to the best of the authors’ knowledge, it is the first to explore purchasing organization and operative excellence in startups.
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In industrial procurement, the concept of supplier satisfaction has gained increasing attention. Satisfied suppliers have been found to provide better prices, more innovations and…
Abstract
Purpose
In industrial procurement, the concept of supplier satisfaction has gained increasing attention. Satisfied suppliers have been found to provide better prices, more innovations and priority in bottleneck situations. This paper aims to analyses in how far the concept of supplier satisfaction can be transferred to the public procurement domain.
Design/methodology/approach
Two large quantitative data sets are compared, one from a sample of suppliers evaluating their industrial clients, the other from a public customer being evaluated by its suppliers.
Findings
The same criteria which explain supplier satisfaction with its customer, which are relevant in the private and industrial case also hold true for the public case, namely, growth opportunity, profitability, relational behaviour and operative excellence are important criteria for distinction. Only relational behaviour by the customer scored significantly higher in the public sample, indicating that this is more an influencing factor for public organisations.
Research limitations/implications
Showing the relevance of supplier satisfaction also for the public domain paves the way to further research better understanding how to measure satisfaction and how to increase suppliers’ satisfaction.
Practical implications
Buying organisations are asked to apply a form of “upstream marketing”, in which they actively try to promote their organisation with their suppliers and increase its attractiveness. This is a new way to get access to better services from suppliers.
Social implications
Analysing supplier satisfaction, on the one hand, allows to improve public purchasing acts, which generate social benefits in better using public money. On the other hand, caring for the well-being of suppliers is per se contributing to a socially more desirable world.
Originality/value
Supplier satisfaction is a new concept in the public procurement domain. This is the first paper to introduce this approach.
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Claus Steinle, Holger Schiele and Tobias Bohnenkamp
In light of increasingly tight buyer–supplier relationships, opportunism is a problem of increasing relevance. So far, opportunism has mainly been researched as a detrimental…
Abstract
Purpose
In light of increasingly tight buyer–supplier relationships, opportunism is a problem of increasing relevance. So far, opportunism has mainly been researched as a detrimental action by suppliers and interpreted with an institutional economics lens. Recent conceptual work, however, has argued more for a behavioral approach to operations management, suggesting benefits of taking a social capital perspective on opportunism. Based on a large empirical sample of buyer–supplier relations, this paper aims to provide an empirical study using social capital as theoretical lens. Further, it analyzes both supplier and buyer opportunism at the same time.
Design/methodology/approach
The paper, through following a quantitative approach, considers the interacting dyad of buyer and supplier opportunism, its antecedents as well as its performance implications.
Findings
Findings did not support the expectation that supplier opportunism will be countered by buyer opportunism in a single relationship. However, social capital in the form of cognitive and relational capital has been found as a good predictor of opportunism. This study proposes new measures for structural capital. Further the study confirms the detrimental effect of opportunism on performance of the buyer–supplier relationship, highlighting the mediating role of innovation as building block of relational competitive advantage.
Research limitations/implications
Previous studies on opportunism in buyer–supplier relations were mostly transaction cost-oriented, thus neglecting the behavioral aspects of exchange processes. Introducing social capital theory revealed to be a rewarding amplification of the perspective. Next, most research up till now was focused on explaining supplier opportunism only. This study contributes by analyzing both sides of the interacting dyad. Finally, this research closes a research gap by not only explaining the occurrence of opportunism but by also testing its performance outcomes. Accordingly, this study contributes to the opportunism literature, social capital theory development and to the management of buyer–supplier relations.
Practical implications
Building up cognitive and relational capital is likely to be a tool to reduce the danger of opportunism – both with the partner firm, as well as inside the own organization. As such, firms need to make sure that both forms of social capital are present to a higher extent. If this is not the case, opportunistic actions on both buying and supplying side might occur which have damaging impacts on the generation of innovation as well as the achievement of strategic advantages.
Originality/value
While previous studies have focused on explaining supplier opportunism, an analysis of both sides of the interacting dyad between buyer and supplier opportunism is missing. Not only does this research provides further insights with regard to the latter, but further considers the role of social capital as underlying factor explaining both buyer and supplier opportunism. Also, this research answers the call on more research about the relation between opportunism and performance, specifically focusing on innovation and strategic advantage generation.
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Thomas Koerber and Holger Schiele
This study aims to examine decision factors for global sourcing, differentiated into transcontinental and continental sourcing to obtain insight into locational aspects of…
Abstract
Purpose
This study aims to examine decision factors for global sourcing, differentiated into transcontinental and continental sourcing to obtain insight into locational aspects of sourcing decisions and global trends. This study analyzed various country perceptions to reveal their influence on sourcing decisions. The country of origin (COO) theory explains why certain country perceptions and images influence purchasing experts in their selection of suppliers.
Design/methodology/approach
This study used a two-study approach. In Study 1, the authors conducted discrete choice card experiments with 71 purchasing experts located in Europe and the USA to examine the importance of essential decision factors for global sourcing. Given the clear evidence that location is a factor in sourcing decisions, in Study 2 the authors investigated purchasers’ perceptions and images of countries, adding country ranking experiments on various perceived characteristics such as quality, price and technology.
Findings
Study 1 provides evidence that the purchasers’ personal relationship with the supplier plays a decisive role in the supplier selection process. While product quality and location impact sourcing decisions, the attraction of the buying company and cultural barriers are less significant. Interestingly, however, these factors seem as important as price to respondents. This implies that a strong relationship with suppliers and good quality products are essential aspects of a reliable and robust supply chain in the post-COVID-19 era. Examining the locational aspect in detail, Study 2 linked the choice card experiments with country ranking experiments. In this study, the authors found that purchasing experts consider that transcontinental countries such as Japan and China offer significant advantages in terms of price and technology. China has enhanced its quality, which is recognizable in the country ranking experiments. Therefore, decisions on global sourcing are not just based on such high-impact factors as price and availability; country perceptions are also influential. Additionally, the significance of the locational aspect could be linked to certain country images of transcontinental suppliers, as the COO theory describes.
Originality/value
The new approach divides global sourcing into transcontinental and European sourcing to evaluate special decision factors and link these factors to the locational aspect of sourcing decisions. To deepen the clear evidence for the locational aspect and investigate the possible influence of country perceptions, the authors applied the COO theory. This approach enabled authors to show the strong influence of country perception on purchasing departments, which is represented by the locational effect. Hence, the success of transcontinental countries relies not only on factors such as their availability but also on the purchasers’ positive perceptions of these countries in terms of technology and price.
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Shikha Kalesh, Nadine Kiratli-Schneider and Holger Schiele
This paper aims to explore factors influencing suppliers' acceptance, integration challenges, expected benefits and support from customers when implementing a customer-introduced…
Abstract
Purpose
This paper aims to explore factors influencing suppliers' acceptance, integration challenges, expected benefits and support from customers when implementing a customer-introduced digital supply chain system.
Design/methodology/approach
The study investigates the perspective of suppliers using a mixed methodology approach that combines qualitative interviews with a large-scale quantitative survey conducted among 220 internationally located suppliers of an automotive-industrial firm.
Findings
As a result, the authors identified 11 factors that drive suppliers' acceptance of customer-introduced digital supply chain systems. These factors have been ranked based on their importance. The top three important factors identified were the digital system being provided at no cost to the suppliers, the system's ability to save time and the system offering benefits to the suppliers.
Research limitations/implications
Further research can be conducted to validate the perspective of suppliers in other industries. Additionally, future studies can investigate the effectiveness of fulfilling these acceptance factors within an actual digital integration setup.
Practical implications
Companies can leverage these insights to accelerate their digital supply chain integration efforts. The insights on acceptance factors, challenges, benefits and support expected by suppliers can serve as a valuable guide for policy and decision makers within the industry.
Originality/value
To the best of the authors’ knowledge, this study is among the first to investigate the perspective of suppliers in the integration of a customer's digital supply chain. By including the supplier's perspective, this study makes a significant contribution to the academic literature about supply chain digitalisation.
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Holger Schiele, Philipp Horn and Bart Vos
Research results concerning the cost‐saving potential of international sourcing have been ambiguous and the topic has been covered in isolation without accounting for influences…
Abstract
Purpose
Research results concerning the cost‐saving potential of international sourcing have been ambiguous and the topic has been covered in isolation without accounting for influences of alternative cost‐saving approaches. This paper aims to analyze the expected financial impact of international sourcing in relation to savings potential attributed to other sourcing tactics, such as, e.g. collaborative product improvement. Furthermore, the paper tests for potential trade‐offs between different levers.
Design/methodology/approach
Data stem from results of 134 cross‐functional cost‐saving workshops using an identical methodology. Workshop participants identified and estimated cost‐saving projects considering seven sourcing levers. Results were recorded in a standardized way and analyzed scrutinizing secondary data.
Findings
Contrary to other studies, data revealed that international sourcing projects averaged 3.4 percent savings expectations. More than 80 percent of total savings potential was attributed to other sourcing levers, such as pooling of demand or process improvement. Results highlight possible trade‐offs between international sourcing and, e.g. joint product optimization.
Research limitations/implications
A rigorous and strict, highly standardized method was employed and data were validated via cross‐functional team discussions, however, ex ante expectations instead of ex post realized savings are analyzed.
Practical implications
Findings give guidance on the importance of international sourcing compared to other levers and help to correct the misconception of international sourcing as a “purchasing panacea.” The findings highlight the need to develop a coherent sourcing strategy for specific commodity groups, including reinforcing tactics and avoiding trade‐offs.
Originality/value
For the first time, explicitly cost‐savings expectations from international sourcing have been analyzed together with other cost‐saving levers concerning relative importance and possible trade‐offs among them.
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