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Kelly, Trish; Gosman, Martin L.

doi:10.1023/a:1007870816171

Cited by 47 publications

(9 citation statements)

References 12 publications

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“…Lanier et al [24] suggest that asset utilization is shared between the members, noting that this resource distribution is central to the competitive advantage of the supply chain. Previous articles and studies have shown that buyer power, created by retailer consolidation, enables the dominant party, among others, to carry less inventory and extend payables to suppliers [21,22,62,90]. In contrast to these studies, the present results showed that suppliers and customers have superior activity ratios.…”

Section: Scl Network As An Accelerator For Activitiescontrasting

confidence: 94%

“…They concluded that the increase in bargaining power for retailers decreased suppliers' gross margin. Confirming these results, other studies proved that customer concentration and power increase the dependency of suppliers [62] and decrease suppliers' profitability [22]. Furthermore, in line with Duffy and Fearne [63], the literature shows that power asymmetry can have a negative impact on the distribution of benefits in supply chain partnerships.…”

Section: Supplier and Customer Performance Implications From Supply Cmentioning

confidence: 56%

“…In that sense, Kim and Henderson [20] classified supply chain relationships as of either a competitive (associated with power) or cooperative (associated with embeddedness) nature. Commonly, studies in the context of power relations have analyzed the dominant position of buying companies (customers) and highlighted a negative impact on suppliers' financial performance [21][22][23], especially a negative effect on profitability [24]. Even confronted with powerful customers, in some cases, suppliers have also been associated with positive returns in terms of liquidity ratios, such as shorter cash conversion cycles [25].…”

Section: Introductionmentioning

confidence: 99%

“…Cooperative-dominant studies even focus on the affiliated suppliers' or buyers' operational performance improvements or efficiency effects [27][28][29][30]. Thus, there has only been limited comprehensive analysis in the literature of the financial performance implications for the affiliated suppliers and customers of leading supply chain firms [21,22,31]. Herein, "comprehensively" means an impact analysis in terms of liquidity, financial activity and profitability measures.…”

Section: Introductionmentioning

confidence: 99%

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Financial Spillover Effects in Supply Chains: Do Customers and Suppliers Really Benefit?

Hofmann

Sertori

2020

Logistics

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Studies have shown that leading supply chain companies are associated with significantly higher company financial ratios than competitors. In contrast, little research has focused on the financial performance of the affiliated suppliers and customers of such supply chain leader (SCL) companies. Thus, the central purpose of this paper is to determine, from a financial perspective, whether suppliers and customers benefit or lose by participating in a SCL network (so called “financial spillover effects”). Companies that were ranked in the Gartner Supply Chain Top 25 were selected as SCLs. For each selected firm, the five largest suppliers and customers were identified and compared with a control sample from the same industry. In order to elaborate on existing insights into the (financial) outcome of supply chain relationships, we applied an explorative approach with abductive reasoning, while comparing the secondary data for 224 SCL supplier (56 firms) and 168 SCL customer (42 firms) firm-years with 1940 (485 firms) and 1544 (386 firms) control firm-years, respectively. The following insights are made: First, the superior financial performance of SCLs was confirmed. Second, the financial performance of suppliers and customers showed superior liquidity and activity ratios but inferior profitability ratios. Third, suppliers showed much more significant results than customers.

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Section: Scl Network As An Accelerator For Activitiescontrasting

confidence: 94%

Section: Supplier and Customer Performance Implications From Supply Cmentioning

confidence: 56%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Financial Spillover Effects in Supply Chains: Do Customers and Suppliers Really Benefit?

Hofmann

Sertori

2020

Logistics

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“…Manufacturers with more market power have the ability (whether they use it or not) to exert greater control at the consumer's point of purchase than manufacturers with less market power. Conversely, in a market where many argue that retail market power has increased considerably over manufacturer's market power (Kelly and Gosman, 2000) the retailers' market power may be used to extract excessive trade promotions from suppliers. An examination of a possible market power shift between suppliers and retailers is beyond the scope of this study.…”

Section: Introductionmentioning

confidence: 99%

Trade Promotions and Suppliers' Market Power

Mottner¹,

Smith²,

Olney³

2011

American Journal of Economics and Business Administration

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Problem statement: Trade promotions provided to retailers from suppliers are not well understood and have not been consistently reported by manufacturers. Research about the phenomenon has consequently been limited and neither the trade nor government agencies fully understand the phenomenon and its implications. One implication is that some trade promotions (or trade allowances as they are also known) can pose an ethical dilemma in terms of restricting competition to the disadvantage of smaller businesses. Approach: This research takes advantage of a one-time release of data at the individual firm level which includes firm specific information on trade promotions, which includes slotting fees, provided by manufacturers for placement in retail stores as well as advertising and promotion support for the retailer. Firm level specific data gives the researcher a method of analyzing the use of market power exercised by the manufacturer to influence retail behavior. Further, the analysis of trade promotion practices and market power give an indication of possible uncompetitive conditions created by manufacturers with high potential market power. Results: Findings indicate that firms with high potential market power, based on assets, provide more trade promotions. Firms with high profits derived from high gross margins, also exercise high market power. Both of these findings, in terms of potential market power as well as exercised market power, lend credibility to the argument that high market power firms pose an uncompetitive environment for small suppliers. Conclusion/Recommendations: The Federal Trade Commission (FTC), which previously reviewed this issue, needs to revisit the matter in terms of the creation of the uncompetitive environment that appears to be created through high market power firms. Further, research that considers both the retail and manufacturers' firm-level data on a broad spectrum should be examined to better understand the situation.

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References

2012

Handbook of Strategic Account Management

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Untitled

Cited by 47 publications

References 12 publications

Financial Spillover Effects in Supply Chains: Do Customers and Suppliers Really Benefit?

Financial Spillover Effects in Supply Chains: Do Customers and Suppliers Really Benefit?

Trade Promotions and Suppliers' Market Power

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