Organization Structure and Service Capabilities as Predictors of Supply Chain Performance: B2B Seller’s Perspective

In buyer-seller exchanges the seller not only provides the goods and service but also transfers its organization capabilities on to the buying firm. Improper selection and usage of these capabilities may reduce the seller’s sustainable competitive edge in future transactions in this supply chain. Through field interviews and Resource Based View literature, the authors propose and test a model linking organization structure, service capabilities, and seller’s satisfaction and performance in business-to-business exchanges. Based on eighty-seven responses, the results indicate that autonomous structure has a positive impact on all three service capabilities. Formalization has a positive influence on only logistics service capability. The service capabilities had a direct impact only on satisfaction. The supply chain performance link in the model was mediated through satisfaction

A model of manufacturer-driven governing mechanisms and distributor performance

Drawing from relational exchange, dependence, and agency theories the authors explain that it is not only the type of governing mechanisms but also the proper sequencing of them that improves a manufacturer-distributor relationship and performance. Dependence affected relationship continuity positively. Monitoring affected the second order relational norm construct, comprising information sharing and flexibility, positively. Relational norm positively affected relationship continuity. Dependence, relationship continuity, monitoring, and relational norm affected distributor performance positively

Importance of transaction cost, resource-based view, and dependence in logistics-based exchanges

Although the antecedents of governance mechanisms have been studied in depth in manufacturer-distributor and procurement literatures, using transaction cost, resource-based view, and sociopolitical frameworks, do the guidelines provided by these frameworks hold true for logistics-based exchanges as well? Regression analysis is used to test a key relationship-driver from each of these frameworks, namely, asset specificity, logistics capability, and dependence and their relationships with two social governance mechanisms of commitment and information sharing. In order of importance, logistics capability is positively related to both the dependent variables; asset specificity is of secondary importance and positively related to information sharing only. The impact of dependence is non-significant

Thai exporter and U.S. importer relations: A pilot study using email survey

Email is a viable option to web–based surveys; however, a number of factors such as lack of anonymity, incentives and incompatibility with software used have affected this method of disseminating surveys. In addition, response rates may vary depending on the context of the study. Thus, circumstantial evidence is needed to justify or refute this claim. This paper describes the data collection process for an email–based survey to analyse Thai exporters\u27 perceptions of US importers. The study tests the Transaction Cost Analysis (TCA) framework, a salient subject in this industry, through a modified questionnaire previously administered on US–based exporters using regular mail. The low response rate from this set of exporters limits significant statistical testing. However, the correlations between the TCA variables justify the popularity of continued usage of TCA framework in relational exchanges. The paper concludes by offering theoretical explanations behind this low response rate and provides suggestions for improvements

Understanding total cost ownership issues from a value analysis perspective

Commodity industrial products are no longer self-selling ticket items for manufacturers. Such manufacturers need to assess their value chain from a total cost ownership perspective for both their outsourced and in-house parts needed to assemble the commodity product in order to better compete in the market place. The key question becomes what procedures should manufacturers follow to understand cost and mark-up behavior patterns and their documentation procedures for such parts? In order to identify and eliminate waste at the inter-firm and intra-firm levels a case study using value analysis was conducted for a commodity product manufacturer that outsourced its component parts to independent suppliers. Activity Based Management approach was used to identify the key value added activities and the unnecessary resources used for these activities. Using simple value analysis and affinity diagram approaches a list of questions and methodology were prepared for the analysis. Three models of the manufacturer\u27s product that required similar components but slightly different designs were selected for comparison purposes, and their key cost drives were determined. Problems in the manufacturer\u27s cost differentiating strategies were identified and practical solutions offered. [PUBLICATION ABSTRACT

Buyer-Seller Relationships: Material versus Logistical Transactions

Several supply chain buyer-seller exchanges become inefficient or get terminated due to poor resource allocation, which become costly because of litigation issues and finding new partners. Because a supply-chain participant’s buying and/or selling role and the type of industry may affect the way in which resources are deployed, the authors illustrate how these supply chain participants may better align their resources commensurate with their role in the supply chain to reduce inefficiencies. We explore and describe this phenomenon gathering survey data from material buyers and Third Party Logisticians because the roles of these supply-chain participants are intertwined but different. Resource allocation for these two supply chain exchanges were examined and compared using the partial least squares, structural equation modelling approach. Bilateral dependence and relational norms (flexibility and information sharing), logistics service, customer- oriented services, trust and commitment, formed the constructs for this study; dependence and relational norms are framed as second-order constructs and financial and attitudinal performance as outcomes. Both the overall models were supported. Furthermore, three paths were significantly different across the two models: bilateral dependence on commitment, relationship norms on commitment (material model higher), and relational norms on trust (logistics model higher)

Organization structure and service capabilities as predictors of supply chain performance: B2B seller’s perspective

In buyer-seller exchanges the seller not only provides the goods and service but also transfers its organization capabilities on to the buying firm. Improper selection and usage of these capabilities may reduce the seller’s sustainable competitive edge in future transactions in this supply chain. Through field interviews and Resource Based View literature, the authors propose and test a model linking organization structure, service capabilities, and seller’s satisfaction and performance in business-to-business exchanges. Based on eighty-seven responses, the results indicate that autonomous structure had a positive impact on all three service capabilities. Formalization had a positive influence on only logistics service capability. The service capabilities had a direct impact only on satisfaction. The supply chain performance link in the model was mediated through satisfaction

The effect of transaction cost antecedents on control mechanisms: Exporters\u27 psychic distance and economic knowledge as moderators

acents Economic knowledge moderates asset specificity\u27s effect on monitoring and information sharing. acents Economic knowledge moderates environment diversity\u27s effect on monitoring and information sharing. acents Psychic distance moderates asset specificity\u27s effect on information sharing. acents Export manufacturers should regulate control mechanisms to correspond with the joint effect of transaction cost and export involvement issues

The challenges of obtaining a competitive advantage for processed material suppliers: A conceptual study

Processed raw materials suppliers face challenges to improve their razor thin margins and survive in a market place, where their buyers are pushing them to the edge by placing constant cost reduction demands and threats of replacement with substitution products. Using the steel, aluminum, and composite material industries as examples, this paper integrates the mental models of Quality Functional Deployment, Industry Five Forces, and Resource Based View to analyze these three processed materials and provide implications for such suppliers. [PUBLICATION ABSTRACT