Coerced Integration: The Effects of Retailer Supply Chain Technology Mandates On Supplier Stock Returns

Purpose - Over the past decade, channels researchers have devoted considerable attention to a potential shift in the balance of power in retailer-manufacturer relationships. At the same time, a burgeoning body of supply chain research, largely overlooked by marketing researchers, has emerged promoting the benefits of cooperation in technology-enabled supply chain integration. This study aims to investigate the confluence of these streams. Specifically it aims to consider the effects of retailer supply chain technology mandates on supplier financial performance. Design/methodology/approach - The design and method is a secondary data event analysis including cross-sectional regression analysis. Findings - The event analysis findings indicate suppliers affected by Wal-Mart\u27s 2003 RFID mandate experienced net gains in abnormal stock returns. Subsequent cross-sectional regression analysis show abnormal returns were stronger for suppliers with greater cash flow and for more dependent suppliers. Practical implications - Study results suggested firms with stronger cash flows are better able to absorb the unexpected costs of complying with the retailer mandate. Additionally, the findings indicate mandate-associated positive abnormal returns were more pronounced for suppliers with a larger percentage of sales through the Wal-Mart channel. This means that a dependent supplier that follow technology mandates by power retailers will potentially receive above average stock returns. Originality/value - This paper is believed to be the first to address the impact of technology mandates in the supply chain

Aligning operant resources for global performance: an assessment of supply chain human resource management

AbstractPurpose:The intent of the paper is to develop the service marketing logic (S-D logic) strategy that is centered on service as a means to differentiate global strategy from those of competitors. The context of the paper is to examine S-D logic in global supply chains. Design/Methodology:The paper is a theory driven conceptual piece.Findings:Globalization emphasizes complex interconnected systems, while S-D logic emphasizes the importance of leveraging operant resources in order to achieve sustainable competitive advantage. Both S-D logic and globalization apply in the supply chain context. This paper focuses on the global supply chain and the importance of leveraging service based operant resources. Because the focus of management has shifted from a domestic to a more complex, three-dimensional network, it is critical for practitioners and researchers to understand how to optimize service based operant resources in the global marketplace.Practical Implications:Because the focus of management has shifted from a domestic to a more complex, three-dimensional global network, it is critical for practitioners and researchers to understand how to optimize service based operant resources in the global marketplace. We suggest that in this dynamic marketplace, both globalization and S-D logic are required to fully explain supply chain performance. Specifically, we suggest that managers develop a global ‘supply-chain management’ perspective allowing for the key operant resource – human capital – to create synergistic partner relationships and customer experiences resulting in superior performance.Originality/Value:This is one of the first (if not the first) paper that examines S-D logic in a global context. This move forward from the domestic orientation of many/most of the recent literature provides the foundation for future global research into the S-D logic.</jats:sec