Ta-Wei (Daniel) Kao, Hung-Chung Su and Yi-Su Chen
Prior studies on major customer relationships (i.e. embedded ties) focus mostly on the ties between a focal firm and its immediate customers, hindering the understanding of the…
Abstract
Purpose
Prior studies on major customer relationships (i.e. embedded ties) focus mostly on the ties between a focal firm and its immediate customers, hindering the understanding of the influence of indirect ties (both upstream and downstream) on a focal firm's operational performance. In this study, the authors analyze how a focal firm's upstream and downstream connectedness and network location affect its productive efficiency.
Design/methodology/approach
Utilizing Compustat segment files, the authors constructed large-scale major customer networks covering the period 2007–2013. The authors applied a fixed-effect panel stochastic frontier model to conduct estimation. Moreover, the authors applied an endogenous panel stochastic frontier model to ensure the robustness of the main analysis.
Findings
The authors found that a focal firm's upstream and downstream connectedness both have a positive influence on a firm's productive efficiency, whereas a focal firm's centeredness in the major customer network has a negative influence on productive efficiency. Moreover, it was found that centeredness lessens the positive influences of upstream and downstream connectedness on productive efficiency. The post hoc analysis further confirmed that a focal firm's indirect ties, both upstream and downstream, positively influence a focal firm's productive efficiency.
Originality/value
This study contributes to the literature by evaluating the relative effectiveness of a focal firm's direct and indirect major customer ties, both upstream and downstream. More importantly, this study suggests potential exploitation–exploration trade-offs (i.e. productive efficiency vs. innovation) triggered by a firm's network location.
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Shih-Sian (Sherwin) Jhang, Hung-Chung Su and Ta-Wei (Daniel) Kao
This study investigates how a firm's structural embeddedness, the structural position in a supply network that consists of major customers, influences the acquisition of supplier…
Abstract
Purpose
This study investigates how a firm's structural embeddedness, the structural position in a supply network that consists of major customers, influences the acquisition of supplier trade credit. Specifically, this study examines how network interconnectedness, network integration and network independence of a firm affect its ability to acquire supplier trade credit.
Design/methodology/approach
This study utilizes financial data from Compustat to build a longitudinal dataset of manufacturing firms from 1998 to 2013. Customer segment disclosure data are used to construct firm-level network variables. A fixed effect regression approach is used for estimation.
Findings
The study results show that network interconnectedness is negatively associated with supplier trade credit, while network integration is positively associated with supplier trade credit. Network independence does not influence the extent of supplier trade credit. The post hoc analysis shows that the effects of the hypothesized factors vary under different product categories and credit ratings.
Originality/value
This study broadens the supply chain finance literature by showing how a firm's embedded network structural position can influence its ability to obtain supplier trade credit.
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The purpose of this study is to examine the effects of three strategic environmental options on reducing greenhouse gas (GHG) emissions. Namely, we examine the effects of…
Abstract
Purpose
The purpose of this study is to examine the effects of three strategic environmental options on reducing greenhouse gas (GHG) emissions. Namely, we examine the effects of pollution prevention and waste management (PPWM) practices, green supply chain (GSC) practices, and outsourcing on reducing local and supply chain GHG emissions.
Design/methodology/approach
Using ASSET4 and deploying first-differencing fixed-effects panel data models, the study conducts a large-scale empirical examination on the effects of these focal strategic environmental options on GHG emissions.
Findings
This study finds that PPWM practices reduce local GHG emissions and that GSC practices reduce supply chain GHG emissions. The results also show that outsourcing does not reduce local GHG emissions and has an adverse effect on supply chain GHG emissions.
Practical implications
The study findings indicate that environmental practices are effective in reducing GHG emissions. However, they are effective only in their corresponding domain. Further, outsourcing is not a viable strategic option, and managers should be mindful of its undesired environmental consequences.
Originality/value
Firms undertake strategic environmental options, such as implementing environmental practices and reallocating production activities, to improve their environmental performance. Nevertheless, the effectiveness of these options on reducing GHG emissions has not been thoroughly examined.
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Yi-Su Chen, Young Ro and Hung-Chung Su
The present research aims to revisit the relationships between buyer dependence on suppliers, relational norms between two parties in a buyer-supplier dyad, and a buyer's tendency…
Abstract
Purpose
The present research aims to revisit the relationships between buyer dependence on suppliers, relational norms between two parties in a buyer-supplier dyad, and a buyer's tendency to either engage in opportunistic behaviors or comply with a supplier's request as an exception condition. The authors adopt a supplier's perspective to examine the supplier's anticipation of the buyer's behaviors.
Design/methodology/approach
Based on the original studies conducted by Joshi and Arnold, the authors extend both works using a similar methodology but with a different data sample. The previously validated buyer-supplier relationship supply disruption scenario presented in the original studies is rewritten from a supplier's perspective to examine the supplier's anticipation of the buyer's behaviors. Subjects are asked to assume the role of an account manager within the key supplier firm for an electronic equipment manufacturer and to respond to how they deal with the supplier's expectation of how the buying firm may behave in terms of compliance and opportunism.
Findings
The results show that buyer dependence is positively related to buyer compliance behaviors and that this relationship holds irrespective of the buyer's or supplier's perspective on the supply disruption scenario and irrespective of professional or student subjects. Other findings include the contingency of the moderating effect of relational norms on the link between dependence and buyer compliance on various factors, and the existence of a boundary condition for the moderation effect of relational norms on the link between dependence and buyer opportunism.
Originality/value
The study should prove valuable to academics and professionals alike. It reinforces the notion that buyers that are more dependent and reliant on suppliers are more willing to comply with supplier's needs. Also, it considers the possibility that supply chain agents from both the buyer and supplier sides may value the effect of relational norms differently, with suppliers perceiving that relational norms have more of a direct influence on a buyer's behavior. Lastly, the replication study extends the understanding of the generalizability of the original studies.
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Benjamin Blahnik, Steven McGillivray, Sameer Prasad and Hung-Chung Su
The purpose of this paper is to demonstrate the viability of using bamboo hybrid fencing fertigated with grey water as a means of providing energy to rural communities in…
Abstract
Purpose
The purpose of this paper is to demonstrate the viability of using bamboo hybrid fencing fertigated with grey water as a means of providing energy to rural communities in developing countries.
Design/methodology/approach
The paper establishes such returns by developing a decision support system (DSS) model populated with parameters obtained from literature and field data. The DSS allows for a sensitivity analysis that examines the robustness of the hybrid bio-fencing under varying scenarios and the interactions among species, management, and technological variables.
Findings
Critical variables identified include the technological efficiency, number of clumps per m2 planted and the influence of grey water on growth rates.
Practical implications
In the developing countries, uncertainty abounds in rural “green” interventions. Such uncertainties can be quite problematic especially for marginal communities. This research provides developmental agents with the ability to derive specific economic and environmental returns by making decisions related to species type, managerial methods, grey water treatment and energy conversion technologies. The hybrid fencing provides villagers with security without depleting scarce resources for brick and mortar (“pukka”) walls. Furthermore, the hybrid bio-fencing provides significant positive energy and financial returns.
Originality/value
The research demonstrates how green ventures can be audited across multiple dimensions of sustainability including economic, environmental and energy. The DSS developed here is a powerful tool as it not only provides an energy audit, but also simultaneously displays economic returns.
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Jorge Benny Benzaquen and Juan Pedro Narro
The aim of this research is to empirically assess the nine dimensions of the Total Quality Management (TQM) model, which have been categorized into four blocks: the top management…
Abstract
Purpose
The aim of this research is to empirically assess the nine dimensions of the Total Quality Management (TQM) model, which have been categorized into four blocks: the top management block, the supplier block, the process management block and the customer block. The nine dimensions represent key strategic activities of company performance. A comparative analysis of companies with ISO 9001 certification and those without certification in a developing country during the COVID-19 pandemic is carried out.
Design/methodology/approach
A survey was administered to the management of 259 Peruvian goods companies (in the mining, repair and manufacturing sectors) during the COVID-19 pandemic. The survey consisted of 35 Likert-scale items, which were grouped into the following nine TQM dimensions: Top management (leadership), quality planning, quality audit and assessment, product design, suppliers' quality management, process control and improvement, education and training, quality circles and focus on customer satisfaction. Then, Cronbach's alpha, the Kolmogorov–Smirnov test, the Mann–Whitney U test and means were computed for each of the dimensions. This analysis made it possible to estimate significant differences between ISO 9001 certified and non-certified goods companies in terms of the dimensions.
Findings
The results showed that, for ISO 9001 certified companies, the averages for all of the dimensions were significantly different from those of non-certified companies, except for the education and training dimension. ISO 9001 certified companies scored higher than non-certified companies in the TQM dimensions. For both certified and non-certified companies, the leadership dimension had the highest average and the quality circles dimension had the lowest average.
Originality/value
This study addresses two main gaps highlighted in the research on quality management: the application of Quality Management Systems (QMS) in developing countries like Peru, and the impact of ISO 9001 on the performance of goods companies during the COVID-19 pandemic.