PurposeThe purpose of this study is to examine the impact of relationship coordination on the performance of trade intermediaries.Design/methodology/approachThis study uses a model of interfirm governance involving multiple members – customers, suppliers and a firm's internal members. In supply chains involving more than two members, the dyadic approach to studying business relationships is inadequate. Dyadic relationships are often influenced by other connected relationships. Thus, this study provides a broader understanding of relationship management in the supply chain.FindingsA major task of intermediaries is to facilitate the flow of materials, information and resource along the supply chain. Growth in outsourcing and competition between supply chains have created a need for intermediaries to manage relationships with other members in the supply chain. How should intermediaries manage these relationships for success? Are there positive linkages between supplier relationship management, customer relationship management, intermediary business processes and intermediary performance? The findings of this study will help intermediaries to improve overall performance and to contribute to global trade.Originality/valueThis preliminary study should prompt further investigations into how internal and external relationships can be integrated for superior performance in global trading operations.
PurposeThis study aims to identify the types of relationships that intermediaries form with their suppliers and customers in the apparel supply chain and their implications for performance.Design/methodology/approachCluster analysis was conducted on the supplier and customer relationships of 90 trade intermediaries in the apparel industry.FindingsThree configurations were identified: moderately dependent relationships with suppliers and customers and moderate flexibility upstream; highly dependent relationships with suppliers and customers but low flexibility upstream; and relationships with suppliers and customers that are low in dependence. Performance of firms using these configurations differed. Firms that cultivated some dependence upstream and downstream performed best. Firms with highly dependent relationships with suppliers and customers but low flexibility upstream performed almost as well. This group was highly skilled in relationship management. Firms that maintained low dependence with suppliers and customers performed the worst.Research limitations/implicationsFindings were based on a limited sample of 90 firms. Relationship configurations may differ in other industries, e.g. car industry.Practical implicationsFor a supply chain to be effective, firms need to consider how they structure the relationships along the supply chain to facilitate the flow of information, goods and resources.Originality/valuePrior research has considered relationships as independent dyads. This study looks at tripartite relationships involving suppliers and customers in the supply chain.
Purpose Dynamic capabilities (DC) have been linked to firm competitive advantage, but the ways in which firms can create and build these DC are still not clear. The purpose of this paper is to propose a model with organizational learning (OL) and supply chain orientation (SCO) as antecedents of dynamic logistics capabilities and firm performance as the outcome. The study tests this model on a sample of logistics service firms. Design/methodology/approach Partial least squares structural equation modeling was used to analyze the data collected from 103 logistics firms drawn from the Chartered Institute of Logistics and Transportation of Hong Kong. Findings Results show that OL directly enhances DC and indirectly through SCO. The relationship between OL and SCO is stronger than the relationship between OL and DC. DC are positively related to logistics firm performance. Research limitations/implications The study relied on perceptual and self-reported data from senior management. Relationships among variables may also be inflated by common method variance but efforts were taken to reduce this threat. Practical implications Logistics firms should promote a learning culture in the organization. Organization learning enhances a firm’s willingness to change and innovate. It also helps employees to gain a better understanding of clients’ supply chains and possibilities. SCO helps the firm to direct its reconfiguration and renewal efforts where the returns are the highest. Originality/value There is scant empirical research on the antecedents of DC outside of manufacturing and knowledge-intensive services. The study focused on the logistics services industry. SCO, a necessary strategic orientation for firms in the supply chain, has not been empirically investigated in the previous research. This study addressed these gaps in the literature and contributes to the understanding of the factors giving rise to DC.
Traces the development of purchasing from a materials acquisition function to supply chain management. The paradigm shifts to recognising every purchase is also a sale and that purchasing is more than buying. Contemporary purchasing incorporates strategic procurement ± aligning suppliers' performance with purchasers' business strategies, supplier-base management ± managing the structure and culture of supplier relationship, and lean supply organisation ± energising internal and external organisational teams through flexible structures and responsive information systems. Tasks for purchasing and supply chain management can be differentiated at the operational, administrative and entrepreneurial levels. An incremental approach is recommended to changing practices and policies by encouraging organisational learning, teamwork and dissemination of experience with supply chain management.
Presents an analysis of the total quality management (TQM) system of a logistics service provider operating in a supply chain context. The company can achieve on-going improvement in its services cost-effectively through efficient use of information system and teamwork. Following the strategy of case study research, analytical generalisation is made with respect to the multiple roles of the logistics service provider in determining its relationships with internal and external customers and in setting service goals; the intensive use of information in facilitating and monitoring logistics service operations, which in turn determines the competitive advantage of the service provider; essence of people-based management and how that promotes interactions in teamwork, trust building and flexibility in meeting changing goals and process requirements; and alliance leadership and its potential to empower teams to innovate and upgrade total quality service in turbulent environments.
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