Non-contractible value creation in buyer-supplier networks - a case study

Kar, Arpan Kumar; Pani, Ashis K.

doi:10.1504/ijpm.2014.064615

Cited by 6 publications

(6 citation statements)

References 36 publications

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“…Extant research has shown that operational performance depends on a number of antecedents, such as governance modes (Cao and Lumineau, 2015), the extent of collaboration (Chen, Preston and Xia, 2013), the successful implementation of ISO certifications (Lafuente, Bayo-Moriones and García-Cestona, 2010), the use of digital or other artificial intelligence-aided software (Chang and Gurbaxani, 2012;Deepu and Ravi, 2021;Garg et al, 2021;Kar, 2014) and other organizational factors (Um and Oh, 2020). Recently, research has been investigating the determinants of operational performance in the context of dyadic (Kar and Pani, 2014), triadic (Choi and Wu, 2009) and other multi-party relationships (Thomas et al, 2016). Extant research has also stressed the importance of information and communications technology systems as a way to facilitate and improve operational performance under conditions of multi-party stakeholders (Allaoui, Guo and Sarkis, 2019;Jaeger and Hjelle, 2015).…”

Section: Literature Reviewmentioning

confidence: 99%

Contract Types, Institutional Distance and Operational Performance: Evidence from Global Trade Flows in the LNG Industry

Batsakis

Robotis

Koulamas

et al. 2022

British J of Management

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In this study, we examine the relationship between contract types, institutional distance and operational performance in the context of cross‐border trade in the liquefied natural gas (LNG) industry. Drawing on the buyer–supplier long‐term relationships literature, we argue for a negative link between short‐term contractual agreements and operational performance. Further, drawing insights from institutional theory, we contend that a high level of formal and informal institutional distance between the origin (i.e. supplier) and destination (i.e. buyer) countries reduces operational performance. We also argue that formal and informal institutional distance mitigates the negative effect of short‐term contracts on operational performance. Finally, we draw on the role of ‘asymmetry in distance’ by examining the direct and moderating effect of both the relevance and direction of formal institutional distance. We test our assumptions using LNG global trade flows from 39 source countries to 44 destination countries over the 2008–2017 period (a total of 17,447 shipments). Our study extends our knowledge on the operational performance implications of buyer–supplier relationships and stresses the important role formal and informal institutional distance plays as a direct and moderating effect on this relationship.

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Section: Literature Reviewmentioning

confidence: 99%

Contract Types, Institutional Distance and Operational Performance: Evidence from Global Trade Flows in the LNG Industry

Batsakis

Robotis

Koulamas

et al. 2022

British J of Management

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“…Of course, the nature of a supply relationship should be contingent on elements such as factor market structure (Dierickx and Cool, 1989), strategic importance (Cousins and Spekman, 2003;Carr and Pearson, 2002), and transaction costs (Bensaou, 1999). Deep collaboration gets reserved for relationships when they possess high value co-creation potential (Fawcett et al, 2012;Kar and Pani, 2014).…”

Section: Theoretical Development: Architecture As Governancementioning

confidence: 99%

“…When strategic informatione.g., evaluation criteria and performance results-is communicated, both relationship quality and performance improves (Lorenzoni and Lipparini, 1999, p. 332). In the context of innovation sourcing, Linder et al (2003) suggest that contractual agreements can address the more tangible objectives (e.g., financial goals), but areas that address culture, workspaces, and information flows require more high-touch mechanisms such as trust (Kar and Pani, 2014).…”

Section: External Relational Architecturementioning

confidence: 99%

Relational architecture and relational capability: organisational levers to support strategic supplier relationships

Magnan

Day

Hillenbrand

et al. 2017

IJPM

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“…One incurs costs when buying a product or a service. Besides market prices, other significant costs such as transaction costs, search costs, contracting costs and coordination costs are commonly used to determine whether to outsource or to produce goods or services in-house (Kar and Pani, 2014). Thus, organizations will compare the production and transaction costs associated with executing a transaction within their firms (insourcing) and in the market (outsourcing).…”

Section: Theoretical Foundationmentioning

confidence: 99%

Determinants of ICT outsourcing among the locally-owned manufacturers in Malaysia

Yap

Lim

Jalaludin

et al. 2016

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Purpose This paper aims to examine the level of information and communication technology (ICT) outsourcing and its determinants in the Malaysian locally owned manufacturing firms. Drawing on the transaction cost theory and the resource-based theory, four determinants – asset specificity, uncertainty, business skills and technical skills – were hypothesized to influence ICT outsourcing. Design/methodology/approach Data were collected using a questionnaire survey from 104 manufacturing firms listed on the Directory of Federation of Malaysian Manufacturers. Data were then analyzed using R package partial least squares path modeling. Findings The study reveals that slightly over two-thirds (68 per cent) of the surveyed manufacturers either fully or partially outsourced their ICT services. Asset specificity and uncertainty are found to be positively related to the level of ICT outsourcing, which contradict the prediction of the transaction cost theory. On the other hand, business skills and technical skills are not significantly related to the level of ICT outsourcing, which also conflict the resource-based arguments. Research limitations/implications The small sample size would not be able to make meaningful conclusion for the population; the small R2 value indicates that other important determinants of ICT outsourcing were not tested in this study, and the transaction cost theory and the resource-based theory do not adequately predict the level of ICT outsourcing in the Malaysian locally owned manufacturers. Originality/value The study serves as one of the first studies that tested the determinants of ICT outsourcing using the transaction cost theory and the resource-based theory in locally owned manufacturing firms of a developing country.

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Non-contractible value creation in buyer-supplier networks - a case study

Cited by 6 publications

References 36 publications

Contract Types, Institutional Distance and Operational Performance: Evidence from Global Trade Flows in the LNG Industry

Contract Types, Institutional Distance and Operational Performance: Evidence from Global Trade Flows in the LNG Industry

Relational architecture and relational capability: organisational levers to support strategic supplier relationships

Determinants of ICT outsourcing among the locally-owned manufacturers in Malaysia

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