Corporate Innovation Along the Supply Chain

Chu, Yongqiang; Tian, Xuan; Wang, Wenyu

doi:10.1287/mnsc.2017.2924

Cited by 280 publications

(117 citation statements)

References 55 publications

Supporting

Mentioning

111

Contrasting

Order By: Relevance

“…Due to the nature of the supplier-customer data, the sample usually consists of plenty of dyads but a rather short "T" (i.e., a small number of observations per dyad). For example, the average number of observations per dyad in Chu et al (2018) is 4.0 and in Lee et al, (2018) it is 3.7. These numbers are considerably smaller (lower than a 1:2000 ratio) than the number of dyads in their samples (8,645 and 7,274).…”

Section: Discussionmentioning

confidence: 99%

See 1 more Smart Citation

Who pays you to be green? How customers' environmental practices affect the sales benefits of suppliers' environmental practices

Chen

2019

J of Ops Management

View full text Add to dashboard Cite

This article examines whether a supplier's sales from a customer depends on the supplier's engagement in pro‐environmental practices (PEPs), and how this relationship is moderated by the customer's PEP level. This article synthesizes findings from several streams of literature including corporate environmental management, supply chain management, and contingency theory. We hypothesize that (1) a supplier gets greater sales benefits from its PEPs when the (corporate) customer's PEP level is higher, and (2) a supplier gets higher sales from a customer when the supplier's PEP level aligns with the customer's PEP level. To test the hypotheses, we use data from public U.S. manufacturing firms and their key customers between 2006 and 2016. The results show that the effect of a manufacturer's PEPs on sales is significantly higher when the customer's PEP level is higher. The results also show that a manufacturer's sales from a particular customer are higher when the manufacturer's PEP level does not exceed the customers' PEP level. This study provides empirical evidence that an investment in PEPs does not always enhance sales—the sales effect of PEPs may vary according to the customer's PEP level. To our knowledge, this is the first large‐scale study that examines the effect of environmental practices on sales.

show abstract

Section: Discussionmentioning

confidence: 99%

“…Relatedly, several recent studies in the operations management literature have used the customer segment data from Compustat and modeled the supplier‐customer dyads as fixed effects in their analysis (e.g., Chu, Tian, & Wang, ; Lee et al, ). The fixed‐effect specification used in these studies has one important limitation.…”

Section: Discussionmentioning

confidence: 99%

Who pays you to be green? How customers' environmental practices affect the sales benefits of suppliers' environmental practices

Chen

2019

J of Ops Management

View full text Add to dashboard Cite

show abstract

“…Therefore, supply chains identified in Compustat are limited to those among public firms, and the coverage is low (as mentioned in Section 3.1, the average number of firms per quarter in Barrot and Sauvagnat (2016) is 550). Moreover, users of Compustat often report difficulties in identifying ID number of suppliers and customers from their names (Barrot and Sauvagnat 2016, Chu, Tian, and Wang 2018). The coverage in data for global supply chains is even lower.…”

Section: Discussionmentioning

confidence: 99%

“…Based on the information, Compustat, a database compiled by Standard & Poor's, provides supplychain information for public firms. Accordingly, growing literature examines effects of supply chains on firm performance and decisions (Carvalho 2014, Chu, Tian, andWang 2018).…”

Section: Intranational Propagationmentioning

confidence: 99%

Using Randomized Controlled Trials and Network Analysis in International Economics: An Introduction

Todo

2018

The International Economy

View full text Add to dashboard Cite

This article introduces two methodologies that can be largely useful to empirical analysis in international economics but have not been fully utilized in the field: randomized controlled trials and network analysis. These methods can contribute to a number of topics in international economics including learning by exporting, FDI spillovers, and international diffusion of knowledge and economic shocks, correcting for biases due to endogeneity and specifying channels of diffusion.

show abstract

“…In turn, these relationship-specific investments are made to offer unique products to the need of the buyer, thus making it costly and infeasible for the buyer to switch to substitute products [26]. A number of studies including Tan et al [27], Chu et al [28], Nunn [29], Kale and Shahrur [30] claim that innovation is necessary to meet customer's specific needs. Thanks to a long relationship with customers, the seller is able to receive more constant feedback and be able to identify trends as guidelines to the innovation to offer better services/products to the customer.…”

Section: Contract Length and Firm Innovationmentioning

confidence: 99%

Buyer–Supplier Contract Length and the Innovation of Supplier Firms

Liêm

Khương

Canh

2020

Journal of Open Innovation: Technology, Market, and Complexity

View full text Add to dashboard Cite

The relationship with customers has important implications for operating decisions as well as firm performance. One important aspect of the supplier–buyer relationship is the contract duration, and how this factor is likely to affect firm investments has been under-researched. This study aims to investigate whether corporate innovation is linked to the maturity of contracts between suppliers and buyers. Using a sample of 1516 manufacturing firms in Vietnam for the period of 2014 to 2018, we find that longer-term contracts are positively related to firm propensity of innovation. However, only contracts with foreign purchasers have this characteristic, confirming the supportive role of foreign partners in uplifting the technology for domestic suppliers in a developing country. Interestingly, longer contracts do not tend to facilitate firm innovation or raise the aimed level of newness for firms with very long contracts compared with those that have short-term contracts. This is consistent with the agency cost theory. These findings are robust to different specifications and econometric approaches. Based on the findings, implications are provided to manage the relationship with customers more efficiently.

show abstract

Corporate Innovation Along the Supply Chain

Cited by 280 publications

References 55 publications

Who pays you to be green? How customers' environmental practices affect the sales benefits of suppliers' environmental practices

Who pays you to be green? How customers' environmental practices affect the sales benefits of suppliers' environmental practices

Using Randomized Controlled Trials and Network Analysis in International Economics: An Introduction

Buyer–Supplier Contract Length and the Innovation of Supplier Firms

Contact Info

Product

Resources

About