Relational value creation and appropriation in buyer-supplier relationships

Abstract

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -Interfirm relationships create value, but buyers and suppliers can appropriate this value in different amounts. Using the relational-view of strategy, the purpose of this paper is to explain value creation and determine the portion of that value appropriated by each organization. Design/methodology/approach -The data source was a survey with 166 respondents covering two industries. The authors used confirmatory factor analysis to validate construct measurement and structural equation modeling to test the hypotheses. A parallel qualitative investigation composed of 31 interviews assisted in interpreting the findings. Findings -Based on the relational view of strategy, the authors found support for only two of the four hypotheses that sought to explain value creation. This result calls into question the applicability of this theory to contexts other than the automotive industry, in which it was developed. Only a joint construct combining Relational Governance and Resource Complementarity had a significant effect on relational value creation. With respect to value appropriation, although both buyers and suppliers captured part of the relational value created, the buyers tended to receive the great majority of this value.Research limitations/implications -The focussed context of this study (Brazilian companies in the personal care/cosmetics and food/beverage industries) limits its generalizability but provides deeper insight into the interpretation of its results. Practical implications -Both buyers and suppliers can benefit from collaborative relationships, but buyers appear to capture a larger share, forcing suppliers to continuously seek new sources of value. Originality/value -This paper bridges the gap between the buyer-supplier literature and the definition of competitive advantage as value creation found in the strategic management literature. This study proposes and tests an integrative definition of the relational value that is created and appropriated in a dyad. Keywords Buyer-supplier, Relational-view of strategy, Value creation and appropriation Paper type Research paper ResumenObjetivo -Las relaciones entre empresas generan valor, pero los compradores y provee...

Value Co-Creation in the Specialty Coffee Value Chain: The Third-Wave Coffee Movement

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Strategic and Operational Determinants of Relationship Outcomes With New Venture Suppliers

“…; Miguel et al. ), the phenomenon of interest in our study revolves around how buying firms can work with new ventures to achieve desired relationship outcomes. We focus here on the parameters that buying firms can directly influence: their strategic orientation and operational approach in selecting and developing new ventures as suppliers.…”

The Relational View: Future challenges for a non-confirmed expectation

“…The value created, therefore, shows the heterogeneity of the demand and the preferences and evaluations of the actors involved, while value capture results from the opportunities for increasing rents on both sides of the relationship (Priem, Li, & Carr, 2012). Figure 2 schematically illustrates the application of this model to a buyer-supplier dyad (Miguel et al, 2014). The value that remains with the buyer in this relationship is the difference between its willingness to pay (WP s ) and the price actually paid (P s ).…”

“…Any analysis, therefore, should also consider the gains obtained from the partnerships that exist between buyers and suppliers (Lindgreen & Wynstra, 2005). The value concept can represent this integrative dimension of the generation and The Relational View: Future challenges for a non-confirmed expectation capture of those benefits that lead to competitive advantage, but only a few recent studies have adopted this view (Chatain, 2011;Kim & Choi, 2015;Miguel, Brito, Fernandes, Tescari, & Martins, 2014;Tescari & Brito, 2016).…”

“…This study was based on the operational methodology adopted by Miguel et al (2014) for defining the scales used for measuring value. These authors separately assessed the value created for the buyer and the value created for the supplier considering willingness to pay and opportunity cost separately.…”