Early supplier involvement in the design process: lessons from the electronics industry

The movement of activities earlier in the product development process, necessitates a re-examination of the total supply network. Supply chain literature has traditionally examined procurement and value-adding activities, without explicitly defining product development as part of these. The trend towards outsourcing design activities is bringing recognition for this process as part of the total supply network. The objective of this paper is to determine the degree of early supplier involvement (ESI) that exists between a multinational electronics company and its key suppliers, in terms of depth of integration, information exchange and buyer–supplier relationships. The paper provides insights into the strategic factors that affect the dynamics of the ESI process. Such insights are valuable in terms of gaining a greater understanding of how the ESI process is managed and determining the barriers to effective supplier integration. The research indicates that there are considerable impediments for those participants responsible for establishing and managing the implementation of ESI. A number of strategic insights are identified that explain the existence of the impediments to the ESI process. Finally, based upon the findings a number of lessons are highlighted for organisations considering the adoption of the ESI process.     

战略采购对制造企业知识获取的影响研究:供应商网络视角

以我国制造企业为研究对象,从供应商网络视角出发,探索了战略采购对制造企业知识获取的影响。构建了包括战略采购、供应商网络嵌入性、制造企业与供应商互动、制造企业知识获取之间关系的概念模型并提出了相应的理论假设。采用结构方程模型进行验证,实证结果表明战略采购对关系嵌入性、结构嵌入性和制造企业与供应商互动均有显著的正向影响,并进而通过它们显著正向影响制造企业知识获取。     

Supplier integration and firm performance: the moderating effects of internal integration and trust

This study proposes and empirically tests a model of the moderating effects of internal integration and trust on the impacts of information, process and strategic integration with suppliers on firm performance using structural equation modelling and data collected from 261 manufacturing firms in Vietnam. The results show that all three types of supplier integration positively associate with firm performance. Internal integration enhances the impact of process integration with suppliers on firm performance, but does not moderate the impacts of information and strategic integration with suppliers. Internal trust has insignificant, positive and negative influences on the effects of information, process and strategic integration with suppliers on firm performance. The findings show that internal integration and trust play different roles in moderating the positive effects of information, process and strategic integration with suppliers on firm performance, which elucidates a possible reason for previous mixed findings on the relationship between supplier integration and firm performance.     

Buyer–Supplier Relationships: A Case Study of a Japanese and Western Alliance

With the increasing liberalisation of markets, new opportunities are emerging for smaller firms with unique products and services to establish strategic supply relationships with larger component buyers, sometimes across normal cultural divides. For many Western SMEs, developing a long-term relationship with a Japanese buyer has been critical for success in the market. However this involves the challenge of adapting to Japanese style buyer–supplier relations, especially in the monitoring area. This article reports the observations made in a field study of such a culturally sensitive relationship between a Japanese buyer and a Western supplier, especially in areas such as differing perceptions of product features and quality, business procedures, and rewards. Difficulties and solutions that arose in the relationship are logged, and the advantages of training at all staff levels, the potentially critical role of ‘link-pin’ and the value of formalised linking processes are examined as ways of achieving congruence between the expectations of the two sides.     

Supplier involvement in product development in the electronics industry: A case study

The movement of activities earlier in the product development process requires a re-examination of the total supply network. The objective of this paper is to determine the degree of early supplier involvement (ESI) that exists between a multinational electronics company and its key suppliers, in terms of depth of integration, information exchange and buyer–supplier relationships. The paper provides insights into the strategic factors that affect the dynamics of the ESI process. The research indicates that there are considerable impediments for those participants responsible for establishing and managing the implementation of ESI. A number of strategic insights are identified that explain the existence of the impediments to the ESI process. Finally, based upon the findings a number of lessons are highlighted for organisations considering the adoption of the ESI process.     

Coopetitive Buyer–Supplier Relationship: An Investigation of Bargaining Power,Relational Context,and Investment Strategies

This study proposes an analytical approach combined with a behavioral experiment for a joint examination of the competitive and cooperative (i.e., coopetitive) relationship between a buyer and a supplier. Specifically, the article considers the scenario in which the buyer and the supplier invest in strategic capabilities to increase their relative bargaining power. The article examines how dynamic investments in strategic assets are influenced by the locus of bargaining power and by the underlying context (synergistic vs. adversarial) of the interfirm relationship. The dynamic evolution of bargaining power is also examined. A dynamic game model is considered to examine the evolution of investment strategies in critical resources and to investigate the issues of bargaining power in a buyer–supplier dyad. Equilibrium expressions for the investment strategies of the buyer and the supplier are presented and their implications for buyer–supplier relationships are examined. The behavioral experiment complements the analytical model and examines the correspondence between optimal behavior suggested by the analytical model and the boundedly rational behavior of decision makers in an experimental context. The results from the model and behavioral experiments suggest that the strategies are a function of the risk‐adjusted returns obtained from investments. The experiment shows that, in a synergistic relational context when the buyer maintains bargaining power, the investment shifts of the buyer and the supplier accord well with theoretical predictions. In an adversarial relational context, the results of the experimental study do not correspond well with that predicted by the theoretical model. The implications of the results are discussed and directions for future research are presented.     

制造型企业供应商关系管理研究

对于物料成本占总成本比例很高的制造型企业来说,如何改善并维护供应商关系尤其重要。从较为松散的战术关系到更为紧密的战略关系,买卖双方共享了供应商关系改善带来的双赢利益。本文分析了目前供应商关系的分类和管理方法,并对供应商关系的发展提出了一些看法     

A contingency view on the impact of supplier development on design and conformance quality performance

This study extends contingency theory’s account of organisational size and culture by exploring the relationship between supplier development and internal quality performance. Drawing on supplier development research, the study aims to examine the moderating impact of organisational size and culture on the relationship between supplier development and design and conformance quality dimensions. Using survey data of 518 UK manufacturing organisations, we found that larger organisations with greater access to resources and a strong supply chain orientation culture tend to place the most weight on supplier development programmes which in turn yield higher internal quality performance. These findings contribute to ‘Operations Management Practice Contingency Research (OM PCR)’ and will raise awareness among operations managers of their future sourcing decisions.     

Cooperation and Knowledge Transfer within Buyer–Supplier Relationships: The Moderating Properties of Trust,Relationship Duration and Supplier Performance*

This paper examines the effect of relational factors on knowledge transfer within strategic buyer–supplier exchange. Prior research examining inter‐firm knowledge transfer has focused almost exclusively on horizontal forms of governance such as strategic alliances and joint ventures, whilst research on vertical forms, such as buyer–supplier relationships, is limited. We test the effect of four important relational properties: cooperation, trust, relationship duration and supplier performance. Quantitative data, gathered from 104 UK manufacturing firms in eight industry sectors, are used to analyse the hypothesized relationships through a moderated hierarchical regression model. Our study provides support for the importance of considering relational factors in the transfer of knowledge at the inter‐organizational level. In particular, the results indicate that knowledge transfer is positively influenced by the extent of cooperation, but that this relationship is moderated by the level of trust and the performance of the supplier firm. Managerial implications for these findings and future directions for research are then offered.     

Toward a Typology of Buyer–Supplier Relationships: A Study of the Computer Industry*

Buyer–supplier relationship typologies are useful analytical tools for purchasing managers in managing exchange relationships with suppliers and monitoring their purchasing portfolios. Existing buyer–supplier relationship typologies are mainly focused on either relational contents or power‐dependence and have limited empirical support for their performance implications. In this study, we developed an alternative buyer–supplier relationship typology that integrates both relational content and power‐dependence dimensions, resulting in four generic relationship types: market, power, autonomous‐link, and constrained‐link relationships. We then performed a longitudinal exploratory investigation of eight leading firms in the U.S. computer industry to explore the performance implications of the typology, using a combinatorial qualitative approach that leverages the strengths of case study research, content analysis, and quasi‐experimental design. The results suggest three theoretical propositions. First, the association between the type of buyer–supplier relationships and buyer firm performance varies such that constrained‐link relationships are superior in terms of operational efficiency while autonomous‐link relationships are superior in terms of product innovation. Second, the positive association between buyer–supplier relational contents (i.e., relationalism) and buyer firm operational efficiency is strengthened as the suppliers' dependence on the buyer firm increases. And finally, the positive association between buyer–supplier relationalism and buyer firm product innovation is weakened as the suppliers' dependence on the buyer firm increases.     

The role of product design in designer-buyer-supplier interface

This paper advocates early supplier involvement in the early phases of product design and development in a concurrent engineering environment. A concurrent engineering environment and the benefits of such involvement are explained in detail. The paper then focuses on facilitating an interface and collaboration among designer, supplier, and buyer at three planning horizons: strategic, intermediate, and tactical with respect to product design and development. A set of propositions and corollaries for each area of interface at each level of planning are proposed. These propositions and corollaries are intended to effectively accomplish the design-based sourcing and early supplier involvement. Then, each proposition is evaluated in practice and the extent of difference from theory to practice is discussed. Finally, concluding remarks and an assessment are presented.     

On Strategy and Management Control: The Importance of Classifying the Strategy of the Business

The point of departure for this paper is a number of contingency-theory studies on the relationship between business strategy and the design and use of management control. In these studies strategy has been operationalized in different ways – a major reason why the findings are ambiguous and difficult to integrate. Thus there is a strong need for a common frame of reference for classifying business strategy. In view of the multifaceted nature of the concept of strategy, however, it is neither desirable nor possible to arrive at a single method of classification that would be appropriate in all situations. Rather, the task is to integrate different strategic variables such as strategic pattern, strategic position and strategic mission. In this paper we show how these three variables may be assumed to influence, and be influenced by, what characterizes changes in strategy and how business units manage their product offerings. Unlike most previous studies in the field, this paper discusses how the strategic variables taken together may be assumed to influence the classification of strategy and thus the design and use of the management-control system. Our deductive analysis, and the hypotheses used in connection with it, show that studies which consider only one strategic variable may lead to erroneous conclusions about the relationship between strategy and management control.     

On Decisions for Integration Implementation: An Examination of Complementarities Between Product‐Process Technology Integration and Supply Chain Integration

Research has shown that both product‐process technology (PPT) integration and supply chain integration efforts produce operational benefits, yet synergies between these types of integration are not well understood. This article empirically examines strategic customer integration and supplier integration as complementary activities for PPT integration, with the aim of helping manufacturing plant managers to intelligently implement mutually supportive types of integration. We set two conditions for establishing complementarity: (i) one type of strategic integration must positively influence the adoption of another and (ii) the two types of strategic integration must exhibit a synergistic fit with respect to manufacturing plant capabilities. We test these conditions using survey results representing 224 manufacturing plants. The findings show positive complementarities between PPT integration and supplier integration with respect to quality, delivery, and process flexibility. Also, positive complementarities exist between PPT integration and customer integration with respect to quality and new product flexibility. The results extend the emerging theory of strategic value chain integration and provide guidance to manufacturing managers who wish to assemble strategic integration policies.     

不同驱动与控制下的战略变化速度与幅度研究

本文整合已有的对战略变化驱动的研究并引入控制机制,采用多行业的大样本数据实证分析检验了外部竞争环境驱动和内部组织因素驱动对于管理者控制方式选择的影响,对于战略变化过程中速度和幅度两个基本特征的影响,以及战略控制和财务控制两种不同控制方式对于战略变化过程的影响。     

Developing a manufacturing vision

The concept of a manufacturing vision is introduced as a company specific, commonly shared, holistic picture of the way in which future manufacturing in the company will function. First is presented what a manufacturing vision is, and then is presented a five-step framework in which such a manufacturing vision may be developed. A manufacturing vision is regarded as a bridge between the mission, goals, and strategies of an industrial enterprise and the detailed design of a manufacturing system. Such a bridge may ensure that manufacturing is able to make a relevant strategic contribution to developing and sustaining the competitiveness of the company and may serve as a guide for innovation and integration of the various elements of a manufacturing system. The paper rests on action research projects in more than ten industrial companies, and the experiences gained are discussed in a section on issues related to the development process including experimentation without fear of losing face, participation and involvement of managers and employees, and finally the outset for a manufacturing vision. To give an example of a manufacturing vision the paper also very briefly introduces a case of a medium-sized supplier of welded parts and equipment for a number of different industries.     

Production systems and supplier selection: a multi-phase process model

Abstract

Purpose: This paper presents a combined multi-phase supplier selection model. The process repeatedly revisits the criteria and sourcing decision as the development process continues. This enables a structured adoption of product and production system innovation from strategic suppliers, where previously the literature purely focuses on product innovation or cost reduction. Design/methodology/approach: The authors adopted an embedded researcher style, inductive, qualitative case study of an industrial supply cluster comprising a focal automotive company and its interaction with three different strategic stamping suppliers. Findings: Our contribution is the multi-phased production and product innovation process. This is an advance from traditional supplier selection and also an extension of ideas of supplier-located product development as it includes production system development, and complements the literature on working with strategic suppliers. Specifically, we explicitly articulate the previously unreported issue of whether a supplier chosen for its innovation capabilities at the start of the new product development process will also be the most appropriate supplier during the production system development phase, when an ability to work collaboratively may be the most important attribute, or in the large-scale production phase when an ability to manufacture at low unit cost may be most important. Originality/value: The paper identifies a multi-phase approach to tendering within a fixed body of strategic suppliers which seeks to identify the optimum technological and process decisions as well as the traditional supplier sourcing choice. These areas have not been combined before and generate a valuable approach for firms to adopt as well as for researchers to extend our understanding of a highly complex process.     

Delegation vs. Control in Supply Chain Procurement under Competition

This paper studies the optimal component procurement strategies of two competing OEMs selling substitutable products. The OEMs outsource their production to a common contract manufacturer, who in turn needs an input from a component supplier. Each OEM may either directly procure the input from the component supplier, or delegate the procurement task to the contract manufacturer. We first analyze the OEMs' procurement game under a non‐strategic supplier whose component price is exogenously given. It is found that symmetric equilibria arise for most situations, that is, both OEMs either control or delegate their component procurement in equilibrium. Interestingly, despite the commonly‐held belief that the contract manufacturer would be worse off as OEMs gain component procurement control, we show that the contract manufacturer may enjoy a higher profit. Then we study the OEMs' procurement game under a strategic supplier who can set its component price. We find that the supplier's strategic pricing behavior plays a critical role in the equilibrium procurement structure. In particular, in the equilibrium under strategic supplier, the larger OEM always uses delegation while the smaller OEM may use either delegation or control. By identifying the driving forces behind the OEMs' procurement choices, this research helps explain observed industry practices and offer useful guidelines for firms' component sourcing decisions.     

基于顾客战略行为下的供应链系统的绩效研究

供应链系统由一个供应商、一个零售商和顾客群组成,且顾客具有战略行为特征,其可以选择在一级市场上购买,也可以选择在二级市场上购买。在销售第一期,零售商向供应商提出订购,并在一级市场上销售,期末剩余产品被供应商回购;在销售第二期,供应商把回购产品通过直销渠道在二级市场上进行销售。采用参数分析和数值模拟得出,首先,顾客战略行为对供应链系统订购量、及系统总收益是否有负影响,取决于顾客对二级市场产品接受度。其次,分散管理系统中,通过提供依赖于集中管理系统下的最优订购量的回购合同,供应商能够协调分散管理系统;并且,无论是否存在顾客战略行为,分散管理系统中的最优回购价格均不受影响。最后,零售商是否接受回购合同,依赖于是否存在顾客战略行为,以及顾客对二级市场产品的接受度。     

How does a component from a supplier with high reputation for product innovation improve the perception of a final offering? A process perspective

An excellent reputation for product innovation (RPI) is an intangible asset for any company and promises a sustainable competitive advantage. This study empirically analyzes the spillover effects of a high component supplier's RPI to the offering of the original equipment manufacturer (OEM). The results show that there are positive effects to be gained from the innovativeness of a component supplier, which increases the perceived performance of the final offering containing the supplier's product. In addition, the study demonstrates that such a strategic partnership between a component supplier and an OEM has the potential to influence the purchase intention of the final consumer in a positive manner, thereby creating value for both parties. Contributions are made to a better understanding of strategic options for such a partnership and to an on-going discussion on RPI and the importance of intangible attributes in innovation management.