Richard K. Blundel and Martin Hingley
This paper presents new insights into the growth of small and medium‐sized enterprises (SMEs) engaged in vertical inter‐firm relationships. It adopts a processual and…
Abstract
This paper presents new insights into the growth of small and medium‐sized enterprises (SMEs) engaged in vertical inter‐firm relationships. It adopts a processual and resource‐based perspective and focuses on the experiences of fresh produce businesses which have achieved high rates of growth while supplying the UK’s large multiple food retailers. The context in which these suppliers operate is shown to be a complex and dynamic supply chain, characterised by increasing structural concentration and close vertical linkages. The primary research investigates how certain SMEs have prospered in an apparently “hostile” environment. It includes a programme of matched‐depth interviews, conducted across the retailer‐supplier dyad. Content analysis of transcripts reveals six factors which appear to be strongly associated with the formation of “successful” relationships. In subsequent interactions, securing “developmental” supplier status appears to open the way to a self‐reinforcing cycle of Penrosian learning and reinvestment. This cycle contributes to growth in the supplier firm. The authors argue that, with certain crucial caveats, growth‐oriented SMEs can develop mutually beneficial relationships with much larger “customer” firms. The paper concludes by drawing out wider policy implications and indicating how this contextualised approach might be used in other contexts.
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This study investigates the issue of power in business‐to‐business relationships and constitutes an appraisal of the theory relating to issues of supply chain relationships; in…
Abstract
Purpose
This study investigates the issue of power in business‐to‐business relationships and constitutes an appraisal of the theory relating to issues of supply chain relationships; in which the received view from the relationship marketing literature with its emphasis on trust, dyadic symmetry and mutuality is questioned. It is contended, alternatively that other types of relationships, for example, those based on selfishness are equally relevant; and that power imbalanced business relationships are just as important to the understanding of business exchange.
Design/methodology/approach
Specific reference is made to power relationships in vertical food supply channels in the UK, where the majority of control lies in the hands of large multiple retailers. The paper cites case material drawn from studies into the relationships between UK‐based fresh food supplier organisations and their principal customers, the leading UK food retailers.
Findings
Specific outcomes are determined with regard to issues of power, mutuality and the nature of power‐dependent relationships. Power play is omnipresent in exchange relationships and is not always seen in a negative light. Relationship‐building is perfectly possible in asymmetric relationships and weaker parties are tolerant of power imbalance.
Research limitations/implications
The study concludes that power should be a central consideration when concerned with business relationships and that imbalances in power are no specific barrier to parties entering into relationships or to their success.
Practical implications
Findings from chosen case studies are transferable to other vertical channel circumstances. Any future investigation should consider the expression and limits of power and the boundaries of tolerance to power imbalance.
Originality/value
Provides evidence of the nature of power‐dependent business relationships.
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Martin Hingley, Sheena Leek and Adam Lindgreen
The purpose of this study is to investigate the “human factor” inherent in business‐to‐business relationships and its impact on the key phases of business relationships…
Abstract
Purpose
The purpose of this study is to investigate the “human factor” inherent in business‐to‐business relationships and its impact on the key phases of business relationships: relationship attraction and initiation; relationship development; and relationship dissolution.
Design/methodology/approach
Interpretation is made by utilising the song lyrics of the prolific English singer Morrissey as a template for interpersonal relationship structures that can be applied to interpersonal business‐to‐business relationships.
Findings
Highlighted are findings from recent case investigations into business‐to‐business relationships where the “human factor” is particularly important in maintaining business interaction. The findings show that key concepts relating to business‐to‐business relationships (the need to enter relationships, power and dependency, and relationship break‐up) are not always in the realms of corporate rational thinking. Alternatively, business decisions owe much to the less rational and more emotional world of interpersonal relations.
Research limitations/implications
This paper is a combination of both theoretical and practical study, but is only a starting‐point in terms of necessary empiricism. The paper concludes with suggestions of further necessary empirical investigation.
Practical implications
Practical lessons include a challenge to the view that there is a “right” and correct formula to engage in business relationships and the route to relationship success. Practical reality and human nature determine that even incrementally successful relationships can break down, and gains can be quickly reversed.
Originality/value
This paper takes the important theme of business relationships and underpins it with a novel treatment: the use of song lyrics, in order to highlight that prior and somewhat formulaic templates for business success are not always appropriate; and business relationships are governed by a human factor that is not always positive in outlook.
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Ilenia Bregoli, Martin Hingley, Giacomo Del Chiappa and Valeria Sodano
The aim of this article is to analyse how wine and tourism operators understand the concept of a wine route, to determine the impact that definition can have on the extent to…
Abstract
Purpose
The aim of this article is to analyse how wine and tourism operators understand the concept of a wine route, to determine the impact that definition can have on the extent to which stakeholders working within distinct, but related sectors (namely wine production, tourism, food and hospitality) collaborate with each other and share knowledge.
Design/methodology/approach
By adopting the theoretical lens of “boundary objects” (understood as tangible or intangible entities that allow the sharing of meaning to different groups and facilitate collaboration), this article uses a qualitative approach, based on semi-structured interviews of 20 informants working in three different wine routes in Italy. Analysis of data is carried out to highlight the similarities and differences between the wine and tourism (including identified associated service) industries.
Findings
Wine routes can be considered boundary objects that, if clearly defined by local stakeholders, can facilitate knowledge sharing and collaboration. Problems in collaboration could be explained by an initial mis-definition by stakeholders of what a wine route and its remit are.
Research limitations/implications
As the theoretical lens of “boundary objects” was applied for the first time to wine routes and tourism, further research is necessary to validate its application.
Practical implications
It is suggested that managers of wine routes involve all stakeholders in discussions to achieve a common understanding on what a wine route is, and its role in the promotion of “place” (geographical context of the wine route). Only if this is done successfully, is it possible to achieve collaboration.
Originality/value
This article uses the concept of “boundary objects” (a concept traditionally applied to the study of innovation) to the analysis of wine routes and provides further theoretical and managerial insights concerning networking between wine and tourism sectors, taking a supply-side perspective.
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This study provides a comprehensive framework of adaptation in triadic business relationship settings in the service sector. The framework is based on the industrial network…
Abstract
This study provides a comprehensive framework of adaptation in triadic business relationship settings in the service sector. The framework is based on the industrial network approach (see, e.g., Axelsson & Easton, 1992; Håkansson & Snehota, 1995a). The study describes how adaptations initiate, how they progress, and what the outcomes of these adaptations are. Furthermore, the framework takes into account how adaptations spread in triadic relationship settings. The empirical context is corporate travel management, which is a chain of activities where an industrial enterprise, and its preferred travel agency and service supplier partners combine their resources. The scientific philosophy, on which the knowledge creation is based, is realist ontology. Epistemologically, the study relies on constructionist processes and interpretation. Case studies with in-depth interviews are the main source of data.
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Michael D. Clements, Ricardo M. Lazo and Sandra K. Martin
Understanding the multitude of linkages that exist between customer requirements, the characteristics of fresh produce, the functions performed by supply chains, and how these…
Abstract
Purpose
Understanding the multitude of linkages that exist between customer requirements, the characteristics of fresh produce, the functions performed by supply chains, and how these impact on relationships in chains is important if the trend towards relationship marketing in the fresh produce industry are to be better understood. The purpose of this paper is to present the results of an empirical study of New Zealand fresh produce supply chains that investigates such multiple linkages.
Design/methodology/approach
A theoretical framework was developed for the study, where relationships were characterised as relationship connectors between parties. This framework was operationalised using two case studies of fresh produce supply chains in the South Island of New Zealand.
Findings
Relationships in the chains were characterised by very strong information exchange, relatively strong cooperative norms, strong operational linkages and specific buyer‐seller adaptations. Relationships connected in these ways facilitated the supply chain functions of procurement, quality, logistics and information. This ensured that the challenges facing these supply chain functions, the market requirements of fresh produce and product characteristics, could be managed.
Research limitations/implications
Because of the method used, it is not possible to empirically generalise from the findings. The key theoretical generalisation that emerges is that relationships in fresh produce supply chains are connected in ways that will enable the challenges facing the management of the different supply chain functions to be met.
Originality/value of paper
This finding uses the theory of relationship connectors to contribute to the expanding knowledge base of academics and practitioners on relationship marketing in the food industry.