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Article
Publication date: 6 February 2017

Yu-Xiang Yen and Shiu-Wan Hung

This paper aims to propose an integrated model based on buyer and supplier opportunism to show the mechanism through which current and competing suppliers influence buyer market…

1433

Abstract

Purpose

This paper aims to propose an integrated model based on buyer and supplier opportunism to show the mechanism through which current and competing suppliers influence buyer market competitiveness.

Design/methodology/approach

Questionnaires were distributed to purchasing staff in listed electronics firms in Taiwan to collect empirical data. Structural equation modeling was used to analyze these data and examine the fitness of the proposed model.

Findings

The findings show that current and competing suppliers influence buyer market competitiveness through supplier opportunistic behaviors and buyer commitment. The alternative attractiveness of competing suppliers affects buyer market competitiveness through the influence of asset specificity. Supplier opportunism negatively and indirectly influences buyer market competitiveness through buyer commitment. Nevertheless, buyer opportunism does not influence buyer commitment and market competitiveness.

Research limitations/implications

The investigation focused on only one industry in one country. Future research could investigate other industries and countries to increase the generalizability of the findings.

Practical implications

The results suggest that buyers can focus on utilizing the pressure of alternative suppliers to improve market competitiveness through increased specific investments by the current supplier.

Originality/value

On the basis of buyer–supplier opportunism, this study shows the mechanism through which the asset specificity of current suppliers and alternative attractiveness influence buyer market competitiveness.

Details

Journal of Business & Industrial Marketing, vol. 32 no. 1
Type: Research Article
ISSN: 0885-8624

Keywords

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Article
Publication date: 5 April 2013

Yu‐Xiang Yen and Shiu‐Wan Hung

Although previous studies have examined the influence of asset specificity on firm performance, the literature has not focused on the influence of supplier asset specificity on…

1306

Abstract

Purpose

Although previous studies have examined the influence of asset specificity on firm performance, the literature has not focused on the influence of supplier asset specificity on product development, or the transformation that induces this. This study aims to propose a model by using the relational exchange perspective to explain the mechanism in which supplier investment in specific assets on behalf of buyers influences buyer performance in product development.

Design/methodology/approach

Empirical data were collected from research and development staff in Taiwanese listed electronic firms and tested using structural equation modeling to verify the fit of the hypothetical model.

Findings

The result demonstrates that supplier investment in specific assets for buyers positively impacts buyer's perceived relationship quality, which in turn affects knowledge sharing between buyers and suppliers and buyer product development performance. However, asset specificity does not directly affect knowledge sharing.

Originality/value

This study illuminates the contribution of asset specificity to knowledge sharing and product development performance, by clarifying the mediation effects resulting from relationship quality and knowledge sharing.

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Article
Publication date: 12 April 2011

Yu‐Xiang Yen, Edward Shih‐Tse Wang and Der‐Juinn Horng

This study seeks to extend current research by testing a framework for understanding the impact of perceived suppliers' willingness for customization, effective communication, and…

3826

Abstract

Purpose

This study seeks to extend current research by testing a framework for understanding the impact of perceived suppliers' willingness for customization, effective communication, and trust regarding perceived switching costs.

Design/methodology/approach

Research data were collected from electronics firms in Taiwan; 281 questionnaires were collected. Structural equation model (SEM) analysis was applied to the data.

Findings

The study suggests that perceived trust contributes to perceived switching costs. The perceived willingness of a supplier to customize for a buyer can indirectly impact on perceived switching costs by way of perceived trust toward the supplier. Furthermore, analysis of the direct and indirect effects reveals that effective communication plays a dominant role and has a significant influence on trust and perceived switching costs.

Originality/value

While recent research increasingly examines customer switching costs in terms of antecedents, this study provides greater insight into switching costs from the trust‐forming perspective to ensure customer retention.

Details

Journal of Business & Industrial Marketing, vol. 26 no. 4
Type: Research Article
ISSN: 0885-8624

Keywords

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Article
Publication date: 12 January 2023

Hasan Uvet, Saban Adana, Hasan Celik, Sedat Cevikparmak and Yavuz Idug

Performance-based contracting (PBC) has been gaining popularity over the years. However, empirical studies investigating the impact of PBC features have been limited. The main…

208

Abstract

Purpose

Performance-based contracting (PBC) has been gaining popularity over the years. However, empirical studies investigating the impact of PBC features have been limited. The main purpose of this study is to investigate the effect of PBC features leading to quality investment that fosters financial benefits.

Design/methodology/approach

After examining the validity and reliability of scale items through confirmatory factor analysis, this study tested hypotheses using covariance-based structural equation modeling of survey data from 381 supply, logistics and operations managers.

Findings

The findings reveal the impact of PBC features (joint knowledge generation, goal congruence and incentive alignment) on financial benefits and the mediation impact of quality investment between these features and financial benefits. The upfront investment for quality enhancement was found facilitator of PBC features to achieve financial benefits. The findings also reveal the importance of collaborative communication and information sharing for knowledge generation that leads financial benefits through quality investment. This study shows that PBC governance strengthens the theory of relational view by empowering collaborative efforts and aligning goals and incentives within downstream suppliers for knowledge generation and quality enhancement.

Research limitations/implications

An analysis of PBC features by industry would be very beneficial in differentiating between and more thoroughly understanding the commonalities and differences across various sectors. Investigating how these change across industries would also help identify any bias in PBC implementation.

Practical implications

This study illustrates that it will be practical and beneficial for suppliers to understand the major drivers of quality investment and the relationship between quality investment and the financial benefits of selecting PBC.

Originality/value

Unlike most previous studies, this research contributes to the literature in that it is one of the relatively few examples of empirical research on PBC features. Overall, the findings of this study will improve our understanding of how PBC features enhance upfront investment in quality and improve financial benefits.

Details

Journal of Business & Industrial Marketing, vol. 38 no. 10
Type: Research Article
ISSN: 0885-8624

Keywords

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