This study uses resource dependence theory to hypothesize that a buyer's innovation strategy enhances supplier innovation focus and a buyer-supplier relationship that supports product innovation. These in turn positively impact buyer product innovation outcomes and business performance. Moreover, it is argued that the buyer-supplier relationship positively moderates the impact of supplier innovation focus on product innovation. Design/Methodology: Structural equation modeling and hierarchical linear regression is used to test hypotheses. Findings: The results support all hypotheses and suggest that company (buyer) age and variables related to buyer engagement with international markets directly influence performance. They also indicate that the buyer-supplier relationship does not moderate the relationship between innovation strategy and innovation performance. Research Implications: Resource dependence theory suggests that firms lack all the resources needed to achieve their goals and that how they manage interdependencies with other entities influences their success. This study demonstrates that how a firm builds the conditions to effectively leverage the complementary resources and capabilities of suppliers directly influences innovation outcomes and business performance. Practical Implications: An important factor in firms achieving their product innovation goals is the selection and management of suppliers that are strategically aligned with regard to innovation. While managers need to develop internal innovation capabilities, partnering with like-minded organizations and creating conditions for effective cooperation is a key driver of innovation outcomes. Originality/Value: In contrast to prior research that has examined operational issues, this study shows how the strategic alignment of buyers and suppliers with regard to innovation is an antecedent of product innovation outcomes. Moreover, it adds to a limited literature on supply chain management practices in emerging markets.
Purpose/Originality: Supply chain strategy is widely recognized as being a crucial component of a broader corporate strategy. However, the relationships between a firm's strategic supply chain focus, the tactical orientation of its suppliers, and the firm's performance, are less well understood. Much of what is known is also based on developed country contexts. This study empirically examines relationships between a buying firm's supply chain strategy and operational dimensions of its suppliers in a developing country context. Design/Methodology: A structural equation model is developed and tested using empirical data drawn from 296 organizations in India and Pakistan. Findings:The results demonstrate a positive relationship between a firm's strategic supply chain focus (lean and responsiveness) and key supplier practices (quality, cost effectiveness, delivery, and flexibility), which in turn have a positive impact on firm performance (operational, quality and market, and financial). Research Implications:The results provide insights into supply chain strategy, and empirically validate the importance of the alignment between strategy and the ability of suppliers to execute in a corresponding manner. It also offers evidence of the impact of the buyer-supplier interface in a developing market context. Practical Implications:The study paper offers supply chain managers in developing markets with insights that can shape effective supplier selection and management and lead to positive performance outcomes.
Purpose Small farmers, being the primary producers of crops, are the key players in the food supply chain. Yet, they remain the most marginalized in the value chain. The marginalization of small farmers can affect food sustainability. The purpose of this paper is to identify opportunities for bringing more value to small farmers in an agricultural value chain. Design/methodology/approach This paper makes use of action research, studying the potato value chain, in a developing agricultural country Pakistan. The authors conducted an in-depth study of 37 farmers in four regions, each being a large potato growing ecosystem. The study examined the end-to-end decision-making processes, sources of input (both physical and information), cultivation and sales practices, cost structure, productivity and profitability of the farmers in potato farming. Findings Large variations exist in the crop yield, cost structure and profitability of farmers within each of and among the four regions due to differences in cultivation practices and approach to sales. There is a significant potential to lower costs, increase yield and enhance overall profitability by using the existing better processes. By addressing the issues faced by small farmers their profits can be potentially doubled. The paper also discusses potential means of recrafting and streamlining the value chain to bring more value to small farmers. Research limitations/implications The paper provides a detailed account of how different interventions can increase the value for small farmers. Since the current food supply chain and sustainability are under stress, worldwide, the findings of this study have implications for farmers as well as policy makers. Originality/value The literature on streamlining the agricultural value chain and enhancing the share of small farmers is scarce. Improving the value chain and reducing the marginalization of small farmers is an essential step toward increasing food sustainability.
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