Kuo-Chung Shang and Peter B. Marlow
Logistics and supply chain management has been elevated to a strategic level whereby firms can simultaneously achieve differentiation and low cost for sustained competitive…
Abstract
Logistics and supply chain management has been elevated to a strategic level whereby firms can simultaneously achieve differentiation and low cost for sustained competitive advantage. Empirical studies have often concentrated on logistics management in developed Western countries, displaying a bias towards the USA. This study applies the competency approach to explore logistics in Taiwan. A survey of 1,200 manufacturing firms was undertaken in order to examine the relationships between logistics competency, logistics performance, and financial performance, using exploratory factor analysis and the structural equation modelling technique. Four logistics competencies, namely, integration and knowledge competency, customer focused logistics competency, measurement competency, and agility competency were identified. The research findings revealed that (1) logistics competency was significantly related to logistics performance but not significantly associated with financial performance, and (2) logistics performance was positively associated with financial performance. These findings also implied that logistics competency has an indirect effect on financial performance through logistics performance. This finding confirmed the “world-class” logistics competencies (i.e. positioning, integration, agility, and measurement) as identified by MSUGLRT (1995). In addition, it suggests that logistics competency in a huge geographic area such as America can have the same effect in a smaller geographic area such as Taiwan.
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Lloyd M. Rinehart, Tzong‐Ru Lee and Thomas J. Page
The purpose of this paper is to compare aggregate differences in perceptions of supplier‐customer relationship structures of managers in the USA and Taiwan.
Abstract
Purpose
The purpose of this paper is to compare aggregate differences in perceptions of supplier‐customer relationship structures of managers in the USA and Taiwan.
Design/methodology/approach
Two studies used a survey method to assess graduate student perceptions of supplier‐customer relationships. Those graduate students had been responsible for managing business exchange relationships in their previous positions. The surveys were administered at different times in executive MBA classes at a major US university and a major Taiwanese university. An analysis was conducted to understand similarities and differences in relationship perceptions between US managers and Taiwanese managers.
Findings
Differences exist between US and Taiwanese managers' perceptions of their supplier‐customer relationships. This indicates that US managers and Taiwanese managers differentiate among such relationships. However, the application of those differences may be unique to the nature of the business environments in the USA and Taiwan.
Practical implications
Managers should be careful when negotiating between US and Taiwanese firms to insure that they do not make decisions about how they anticipate the other party will view the supplier/customer relationship based on generic cultural assumptions. In addition, Taiwanese managers may be better able to classify their relationships into common groups than US managers, indicating that US managers may be less likely to try to segment their suppliers or customers into different groups for development of interaction and negotiation strategies. In addition, this research demonstrates a critical need for future comparative studies to assess relationship perceptions from other parts of the globe. The lack of similarities between the responses of the US and Taiwanese managers indicates potential differences in supplier/customer relationship perceptions around the world. This becomes critical for improved understanding of how interactions and negotiations (as well as the development of operating strategies by firms) should occur in global exchange.
Originality/value
This research offers initial insight into the importance of understanding relationship perception differences based on global business operations. As the world becomes “flatter,” managers from around the globe will need to understand how those perceptions differ for development of effective negotiating strategies between suppliers and customers.
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Robert A. Novack, L.M. Rinehart and S.A. Fawcett
Increasing emphasis is being placed on integrated thinking inbusiness decision making. Part of that emphasis requires a betterunderstanding of the basic concepts that are used to…
Abstract
Increasing emphasis is being placed on integrated thinking in business decision making. Part of that emphasis requires a better understanding of the basic concepts that are used to add value to products and services that are consumed in the channel system. Presents a conceptualization which can be used to integrate concepts from production/operations management and logistics management for the purpose of understanding the linkages that exist between these two applied disciplines. The conceptual structure is based on an understanding of the management of capacity and movement at both the firm and channel levels which can help the academic and practitioner view the commonalities between their responsibilities and those of other channel members.
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Michael Tracey, Richard W. Fite and Mathias J. Sutton
The goal of this exploratory study is to establish an explanatory model and corresponding instrument to help further understand, and conduct research in the area of supply chain…
Abstract
The goal of this exploratory study is to establish an explanatory model and corresponding instrument to help further understand, and conduct research in the area of supply chain management (SCM). Constructs pertaining to SCM assimilation, SCM outcomes, and overall firm performance are operationally defined in terms of their dimensions and items. The business literature is utilized to help define the constructs and to generate potential measurement items. The scales are then purified and a preliminary test for predictive validity is performed.
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Stephanie P Thomas, Karl B. Manrodt and Jacqueline K. Eastman
– The purpose of this paper is to explore how the history of a supply chain relationship impacts expectations concerning negotiation strategy use.
Abstract
Purpose
The purpose of this paper is to explore how the history of a supply chain relationship impacts expectations concerning negotiation strategy use.
Design/methodology/approach
Following a grounded theory approach, experienced buyers and suppliers were interviewed to enhance understanding of the complexity of supply chain negotiations.
Findings
Qualitative analysis developed a theoretical framework emphasizing the impact of relationship history on negotiation strategy expectations in long-term buyer-supplier relationships. Data supports that previous negotiation interactions build a history between the involved organizations. This relationship history creates expectations. When negotiation strategy use is consistent with expectations, the relationship history will continue to develop in the same manner as it has previously. When negotiation strategy expectations are violated, the relationship impact will differ depending on evidence of an Extrarelational Factor that leads to the strategy change.
Research limitations/implications
Results of this study present a theoretical framework that future research can quantitatively test, which has the potential to open up new streams of research on relationship history and supply chain negotiations.
Practical implications
Results show that buyers and suppliers should consider the strategy expectations of their negotiation partner. When actions are inconsistent with expectations, the effects impact the relationship.
Originality/value
Negotiation research has largely focussed on negotiations as discrete events with economic outcomes. This ongoing buyer-supplier relationship research highlights the impact that previous negotiations (relationship history) have on negotiation expectations. It also explores the relational impact when those expectations are or are not met.
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Stephanie Thomas, Jacqueline Eastman, C. David Shepherd and Luther Trey Denton
The purpose of this paper is to study the relational impact of using win-win or win-lose negotiation strategies within different types of buyer-supplier relationships.
Abstract
Purpose
The purpose of this paper is to study the relational impact of using win-win or win-lose negotiation strategies within different types of buyer-supplier relationships.
Design/methodology/approach
A multi-method approach is used. Qualitative interviews with supply chain managers reveal that relationship-specific assets and cooperation are important relational factors in buyer-supplier negotiations. Framing interview insights within the social exchange theory (SET), hypotheses are tested using a scenario-based behavioral experiment.
Findings
Experimental results suggest that win-lose negotiators decrease their negotiating partner’s commitment of relationship-specific assets and levels of cooperation. In addition, the use of a win-lose negotiation strategy reduces levels of relationship-specific assets and cooperation more in highly interdependent buyer-supplier relationships than relationships that are not as close.
Research limitations/implications
Buyer-supplier relationships are complex interactions. Negotiation strategy choice decisions can have long-term effects on the overall relationship. As demonstrated in this study, previous research focusing on one side “winning” a negotiation as a measure of success has oversimplified this complex phenomenon.
Practical implications
The use of a win-lose negotiation strategy can have a negative impact on relational outcomes like cooperation and relationship-specific assets. For companies interested in developing strong supply chain relationships, buyer and suppliers should choose their negotiation strategy carefully as the relational impact extends beyond the single negotiation encounter.
Originality/value
Previous research predominantly advocates for the use of a win-win negotiation strategy within interdependent relationships. This research offers evidence that the use of a win-lose strategy does have a long-term relational impact.
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Om P. Kharbanda and Ernest A. Stallworthy
We are negotiating all the time: with customers, suppliers, tradeunions, our family ‐ indeed, all with whom we come into contact. Inbusiness, in particular, negotiation needs…
Abstract
We are negotiating all the time: with customers, suppliers, trade unions, our family ‐ indeed, all with whom we come into contact. In business, in particular, negotiation needs management. There are said to be eight stages in negotiation: prepare, argue, signal, propose, present the package, bargain, close and agree. At the proposal stage one must be clear about what one must achieve, what one intends to achieve, and what one would like to achieve. The approach to constructive and competitive negotiation, the role of consultation, how to cope with deadlock and conflict, cross‐cultural negotiation, and the art of compromise are reviewed. The development and use of teams in negotiation is also an important factor, needing careful assessment. Negotiation will nearly always involve conflict, but steps must be taken to ensure that the participants remain on friendly terms.
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Mark M.J. Wilson and Robert W. Goddard
The wine industry of New Zealand has rapidly developed and matured in the last decade to produce an international product that is highly desired by key global markets, and has…
Abstract
The wine industry of New Zealand has rapidly developed and matured in the last decade to produce an international product that is highly desired by key global markets, and has become a major contributor to the economy. However, limited productive capacity, and macroeconomic forces have contrived to constrain the global marketing opportunities, essentially forcing New Zealand wines into niche markets. These forces include: global market forces, technological forces, global cost forces, and socio‐political macro‐economic forces. The impact of these forces are analysed in this article. Several analytical tools borrowed from ‘lean manufacturing’ are used to construct a conceptual value chain map of the generic industry. A key concept for success that will be a challenge to industry participants is to create and deliver ‘value’ in the minds of the final consumer. This can be achieved by mapping/measuring the value generated in different parts of the supply chain while still allowing for the synergies generated by the whole system.
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As businesses continue to globalize, attention has increasinglyturned to logistics. Examines global logistics in depth, beginning witha brief overview, to provide a working…
Abstract
As businesses continue to globalize, attention has increasingly turned to logistics. Examines global logistics in depth, beginning with a brief overview, to provide a working context. Discusses the development of global logistics strategy, taking a bottom‐up approach. Assesses the effects of product‐market characteristics on strategy formulation and evaluates logistics strategy at business unit or company level. Considers the implications of global logistics strategies, detailing the critical success factors which apply and highlighting the need for organizational change.