• Journal of Distribution Science
• /
• v.14 no.8
• /
• pp.113-121
• /
• 2016

Purpose - This paper aims to examine the impact of buyer-supplier cooperation on suppliers' trust on buyers and the moderating role of buyers' governance mechanism between the sharing activities and trust. Research design, data, and methodology - An integrated research model is designed to materialize the research hypotheses. First, the impact of buyer-supplier cooperation is empirically analyzed by looking into how the sharing activities, in the field of information, resource, and knowledge, of buyer with supplier will affect the trust of supplier on buyer. Second, the moderating effect of contract-based governance mechanism of buyer is empirically analyzed. Third, the influence of trust on innovation performance of suppler is empirically analyzed. Results - Our findings provide supporting evidence for some of our hypotheses. First, all of the sharing activities are significantly influential, but in different degree, to trust of supplier. Second, contract-based governance mechanism of buyer have a moderating effect on the relationship between sharing activities and trust, positively in resource-sharing activities, negatively in information-sharing activities, not significant in knowledge-sharing activities. Third, supplier's trust on buyer positively affects supplier's own innovation performance. Conclusions - The strategies applied in supply chain management have become important as the competition among firms has shifted from competition between individual firms to competition between supply chains. A customer's sharing activities with its supplier may contribute to an increase in innovation performance. The supplier's information-sharing activity with its customer could affect its information-sharing activities with its main supplier. Cooperative activity with a partner in the supply chain is cultivated and amassed into relationship knowledge, and this study shows that the cooperative relational knowledge related to information-sharing activities enables firms to participate in sharing activities with their main suppliers. Increasing evidence shows that sharing various activities between buyer and supplier improves trust and performance outcomes, and enables firms to maintain competitive advantage. From the perspective of knowledge theory, external knowledge is becoming more important in firms' innovation activities, because innovative knowledge is acquired primarily through interaction with another organization. In addition, relationship learning could be an important tool in absorbing the supplier's core technology, information, expertise, and core competencies, increasing relational value.

• Journal of Distribution Science
• /
• v.16 no.3
• /
• pp.23-32
• /
• 2018

Purpose - This study aims to investigate whether the buyer's participation in CSR activities can affect the informal cooperation and relationship beyond formal cooperation and relationship. Research design, data, and methodology - We defined the research model and selected variables(monitoring and contracts by the buyer, formal cooperation & relationship, and informal cooperation & relationship). After completing the questionnaire, we analyzed 319 manufacturing companies. Prior to the hypothesis testing, Exploratory factor analysis(EFA) and confirmatory factor analysis(CFA) were conducted to check for discriminant validity and convergent validity. Results - The stronger the buyer monitoring on the company's CSR activities, the more positive it affects the formal business cooperation. On the other hand, strong buyer monitoring did not affect formal business relationships. Therefore, even if buyers' monitoring of CSR activities is strong, it does not mean that the formal business relationship is improved, but it means that it is possible to improve the formal business cooperation. Conclusions - This study shows that the stronger the buyer monitoring on the supplier's CSR activities, the more positive it affects formal cooperation. It also demonstrates that formal business cooperation between the supplier and the buyer, that is, sharing goals and works for CSR activities, has a positive effect on relationships based on emotional exchange and commitment.

• Journal of the Korea Academia-Industrial cooperation Society
• /
• v.15 no.12
• /
• pp.7025-7039
• /
• 2014

Focal companies (hereafter called buyers) adopt outsourcing practices from a supply chain management strategy to be competitive. Buyers face the bridge transfer after outsourcing contracts, and the monitoring practices would be the only control mechanism left to prevent losing control over the suppliers. This study suggests the set of monitoring practices (i.e., capability, activity and outcome monitoring) as the independent variables to enhance the buyer-supplier collaboration and supplier's performance. In addition the buyer's efforts of monitoring are assumed to influence the buyer's shop floor productivity mediated by the supplier's performance and buyer-supplier collaboration. The results showed that the monitoring practices are meaningful antecedents to the supplier's performance and buyer-supplier collaboration, which fully mediates between the monitoring practices and buyer's shop floor productivity. The mediating role of the buyer-supplier collaboration between activity monitoring and shop floor productive has been rejected, because the negative effect of activity monitoring on buyer-supplier collaboration conflicts with the positive impact of buyer-supplier collaboration on shop floor productive. The theoretical contribution and managerial implications with limitations have been discussed.

• Journal of the Korean Operations Research and Management Science Society
• /
• v.36 no.1
• /
• pp.69-84
• /
• 2011

In this study, based on the principal-agent paradigm, we investigate a joint cost reduction activity in a buyer-supplier supply chain where a buyer motivates its operations department and a supplier to reduce the supply chain's production cost. We construct a benefit-sharing model based on the target cost scheme, a basic philosophy in practice which has not been explored in previous studies. The model also incorporates various supply chain issues such as the cooperation of multiple agents, the opportunity loss, and the degree of strategic relationship between the buyer and the supplier. Based on the analysis of the principal-agent model, we investigate the benefit-sharing rule to control agents' actions, and we also provide important managerial implications into supply chain practices via extensive comparative static analyses.

• Journal of Distribution Science
• /
• v.9 no.2
• /
• pp.61-72
• /
• 2011

The object of this research is to examine the factors leading to intercompany win-win by finding the antecedents and consequences that affect a supplier's fairness perception. We assume that the antecedent factors of a supplier's fairness perception are vertical coordination, cooperation support, information sharing, and legalistic plea. We assume that the consequential factors of a supplier's fairness perception are supply chain dependence and supply chain flexibility. The object industry is an electronic parts manufacturing company. We tested our model by using the SPSS 17.0 and the LISREL 8.5. For measurement validation, we verified by using a confirmatory factor analysis and a reliability analysis. For hypothesis analysis, we did a path analysis with the LISREL 8.5. By checking the modification index and expecting parameter changes, we modified the model. First, the buyer's vertical coordination had a positive effect on the supplier's distributive fairness perception and procedural fairness perception. Second, the buyer's cooperation support had no effect on the supplier's distributive fairness perception and procedural fairness perception: we suppose that the buyer's requests were burdensome, although they cooperated with the supplier. Third, the buyer's information sharing had a positive effect on distributive fairness perception but had no direct effect on procedural fairness perception. Fourth, the buyer's legalistic plea had a negative effect on the supplier's distributive fairness perception. and a negative effect on the supplier's procedural fairness perception at a 0.1 significance level. Fifth, although procedural fairness perception had no direct effect on supply chain dependence, fairness perception had an effect on supply chain dependence and supply chain flexibility both directly and indirectly.

• Journal of the Korea Academia-Industrial cooperation Society
• /
• v.9 no.2
• /
• pp.556-563
• /
• 2008

One of the most important issues of managing a supply chain is to determine the inventory level whenever shortage is permitted and vendor is responsible fur management of the both buyer and supplier's inventory. We present two vendor managed inventory models in the form of two-echelon supply chain models for: 1) one buyer-one supplier problem, and 2) two buyers- one supplier problem. We assume that shortage is permitted. The proposed methods of this paper provides a simple condition, which makes it easy to decide when and how vendor managed inventory model costs less than traditional one. The paper is supported with some numerical examples to show the implementation of the proposed methods.

• Journal of Korea Society of Industrial Information Systems
• /
• v.23 no.1
• /
• pp.65-86
• /
• 2018

This study focuses on the relationship structure of SMEs with outsourcing based on buyer-supplier relationships and aims to test the role of trust management and mutual growth in the activities of SMEs. Trust management and mutual growth have a context in which the outsourcing type is determined through the company's slack resources, partnership relations, and buyer-supplier relationship. In this context, research hypotheses were set up, research model was designed and an empirical analysis was conducted by using structural equation modeling. For the empirical analysis, hypotheses were tested using data obtained from questionnaires of 206 SMEs nationwide. As a result, trust management and mutual growth have a significant effect on outsourcing type and performance, and mediation effect of cooperation relationship and buyer-supplier relationship was in the process.

• Journal of the Korea Safety Management & Science
• /
• v.13 no.4
• /
• pp.117-124
• /
• 2011

Supplier selection is one of the most important activities of a company. This importance is increased even more by new strategies in a supply chain, because of the key role suppliers perform in terms of quality, costs and services which affect the outcome in the buyer's company. In addition, green production has become an important issue for almost every manufacturer and will determine the sustainability of a manufacturer. Therefore a performance evaluation system for supplier and green suppliers is necessary to determine the suitability of suppliers to cooperate with the company. Supplier and green supplier selection is a multiple criteria decision making problem in which the objectives are not equally important. In practice, vagueness and imprecision of the goals, constraints and parameters in these problems make the decision making complicated. The objective of this study is to construct a decision-making process using fuzzy analytic hierarchy process (FAHP) and balanced scorecard (BSC) for evaluating supplier and green suppliers in the manufacturing industry. The BSC concept is applied to define the hierarchy with four major perspectives and performance indicators are selected for each perspective. FAHP is then proposed in order to tolerate vagueness and ambiguity of information. Finally, FAHP is applied to facilitate the solving process. With the proposed approach, manufacturers can have a better understanding of the capabilities that supplier and green supplier must possess and can evaluate and select the most suitable supplier for cooperation.

• Asia Marketing Journal
• /
• v.8 no.1
• /
• pp.49-76
• /
• 2006

This study investigates the effect of market orientation of knowledge-based service suppliers on the sourcing process of service recipients. Focusing on a dyadic relationship between a supplier and a buyer, this study proposed a conceptual model of market orientation incorporating the antecedents and consequences of market orientation. This study empirically tested research hypotheses delineated from the conceptual framework. The present study revealed that the impact on the buyer's performance of the supplier's customer and competitor orientation turned out to be more influential than that of inter-departmental cooperation. Also these two dimensions of customer and competitor orientation played a positive role in reducing buyer's perceived risk and uncertainty related to the evaluation of services out-sourced. Interestingly enough, the supplier's perceived importance on the distance between the buyer and supplier remains important especially when the degree of buyer's market orientation is high. This finding is somewhat contrary to the fact that the geographic location of the buyer becomes less important for the internet-based B2B service providers. Based on the findings, this study suggested managerial implications and broadened the scope of academic research in the field of business services. Future research directions and the limitations of this study are also discussed.

• Proceedings of the Korean Operations and Management Science Society Conference
• /
• 2000.10a
• /
• pp.95-98
• /
• 2000

The rapid expansion of the WWW is well known and has huge potential for enabling companies, large and small, to gain new marketplaces globally at low cost, or to be disintermediated by others doing so. A totally new competitive environment opening up new opportunities is upon us. As a result, the electronic commerce is growing quickly and the importance of electronic marketplace is emphasized. From the view of SCM, applying the business-to-business electronic commerce to the relationship between firms is expected to make major changes. This study focuses on the effects of the introduction of web-based purchasing systems on the buyer-supplier relationship. We conduct a case study on the Korean firms The major findings of this study are summarized as follows. First, in introductory phase, some buying firms fail to design the appropriate mechanism for business relationships. It can weaken the cooperation between buyers and suppliers. Second, for critical or customized parts, it is possible to gather the information about potential suppliers and to make business relations using it. Third, using web-based purchasing systems, capable suppliers can take more opportunities to leverage its competence for business relations. So we can expect the positive feedback.