Muhammad Usman Ahmed, Mehmet Murat Kristal, Mark Pagell and Thomas F. Gattiker
The purpose of this paper is to explore how different forms of integration interact with environmental dynamism to influence the outcomes of a buyer–supplier relationship (BSR)…
Abstract
Purpose
The purpose of this paper is to explore how different forms of integration interact with environmental dynamism to influence the outcomes of a buyer–supplier relationship (BSR). Specifically, the authors assess the impact of communication, operational process integration (OPI) and joint knowledge exploration (JKE) on the economic value and competitive differentiation generated by the BSR. Furthermore, the authors assess the moderating role of environmental dynamism in changing the performance implications of these different forms of integration.
Design/methodology/approach
The authors empirically test the theoretical model using survey data collected from North America. The authors apply techniques such as confirmatory factor analysis, regression and a variety of robustness checks to ensure the validity of the findings.
Findings
The results indicate that OPI and JKE are useful in generating higher value from key supply chain relationships. However, communication does not directly influence performance outcomes, rather it assists in the implementation of other forms of integration. In stable environments, better returns can be obtained from focusing on OPI, while in dynamic environments JKE becomes far more important.
Originality/value
This study shows that different aspects of integration have very different performance implications and that selective integration can outperform broad-based integration in some conditions. More importantly, the performance implications depend on environmental dynamism in unique ways, where greater integration is not always the best response to dynamic business conditions. The results allow managers to make better decisions regarding what forms of integration to establish in key supply chain relationships.
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Muhammad Usman Ahmed, Mehmet Murat Kristal, Mark Pagell and Thomas F. Gattiker
This paper studies buyer–supplier relationships (BSRs) by taking a routine-based approach and develops a taxonomy of BSRs. Recent advances in the BSR literature have shown that…
Abstract
Purpose
This paper studies buyer–supplier relationships (BSRs) by taking a routine-based approach and develops a taxonomy of BSRs. Recent advances in the BSR literature have shown that firms implement a host of diverse routines, called integrative practices, with their supply chain partners. Relationships differ based on what integrative practices are present in them. This paper aims to develop a taxonomy of supply chain relationships based on integrative practices measured at the relationship level.
Design/methodology/approach
The authors use survey data collected from North American manufacturers to establish the measurement properties of new relationship level constructs that represent different aspects of integration. Cluster analysis is used with these new constructs to develop a taxonomy of supply chain relationships. Regression and bootstrapping techniques are used to establish the predictive validity and stability of the taxonomy.
Findings
The results show four distinct types of relationships. On comparison, the authors find salient differences between their results and past classifications. As a result of taking a routine-based multidimensional view of integration, the authors find two types of relationships that have not been discovered by past taxonomies.
Originality/value
The new relationship level constructs will allow academics to have greater precision in their research questions on BSRs, as not all aspects of integration behave in the same manner. The four types of relationships identified by this study provide a useful framework to manage supply chain relationships for practitioners.
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Mehmet Murat Kristal, Xiaowen Huang and Roger G. Schroeder
The purpose of this paper is to investigate the role of quality management (QM) in the development of mass customization (MC) capability. QM is modeled as a second‐order construct…
Abstract
Purpose
The purpose of this paper is to investigate the role of quality management (QM) in the development of mass customization (MC) capability. QM is modeled as a second‐order construct reflected by six QM practices (small group problem solving, top management leadership for quality, information and feedback, process management, customer focus, and supplier involvement). The paper proposes that these six practices reflect the core principles of QM, and in turn QM contributes to the development of MC capability.
Design/methodology/approach
Using the survey data collected from 167 manufacturing plants in three industries and eight countries, structural equation modeling was employed to test the hypotheses.
Findings
The results provide empirical evidence supporting the proposed relationships between QM and MC capability.
Research limitations/implications
The dataset for this paper is cross‐sectional. Future studies should consider a longitudinal setting that would provide a deeper understanding of causal relationships. Second, an existing database was used, thereby limiting the choices of variables analyzed.
Practical implications
The findings of empirical support for the positive impact of QM practices on MC capability provide guidance for managers in the allocation of resources for QM efforts in their pursuit of MC capability.
Originality/value
This is one of the first studies to shed light on the effects of QM on MC capability. The paper presents an explanation on how QM helps to develop MC capability and also finds empirical evidence supporting such a relationship.
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David A. Johnston and Mehmet Murat Kristal
The purpose of this paper is to investigate the climate for co‐operation, from both the supplier and buyer perspectives, for its impact on co‐operative activities. Climate…
Abstract
Purpose
The purpose of this paper is to investigate the climate for co‐operation, from both the supplier and buyer perspectives, for its impact on co‐operative activities. Climate encompasses the constructs of cross functional barriers, participation by the respondent in strategic customer/supply decisions and expectation of the continuity of the relationship, competitive pressure and institutionalized beliefs about co‐operation in the firm's industry.
Design/methodology/approach
The design of the study is based on a cross‐sectional mail‐based survey of 89 buyer and supplier dyads, involving 178 manufacturing companies. First, the psychometric properties of the proposed constructs were assessed. Then the relationships among the proposed constructs were tested by structural equation modeling for the supplier and then the buyer samples.
Findings
Both parties' co‐operative behaviors were strongly influenced by the expected continuity of the relationship. Suppliers differed from buyers in that they were influenced by institutional beliefs about co‐operation. Involvement in decision making positively affected shared planning activities for the suppliers whereas it affected relationship flexibility for the buyers. Lastly, buyers in contrast to suppliers were influenced by competitive pressure.
Research limitations/implications
As a cross‐sectional study about complex inter‐firm relationships, the research does not directly capture relationship effects over time. The paper also does not address how climate affects the formulation and implementation of dysfunctional buyer‐supplier relationships.
Practical implications
Buyers and suppliers should be aware that there are significant similarities and differences in how their partners respond to the context in which they operate. This knowledge is important in understanding what drives the other party's behavior in the formal and informal negotiations and problem solving that characterize an ongoing relationship.
Originality/value
The research uses dyadic data to understand both sides of the buyer supplier relationship. It introduces constructs such as institutional belief and cross‐functional barriers and functional involvement in strategic planning as components of a new concept called co‐operative climate. This concept is found to be relevant to both buyer and supplier perspectives.