• Knowledge Management Research
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• v.10 no.4
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• pp.163-183
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• 2009

Numerous studies in the field of buyer-supplier relationship research have focused on the buyer's performance. In contrast, supplier's performance has been paid relatively little attention by researchers, especially the research about the supplier's innovation in the relationship is still in its early stage. In this paper, we examine the relation between the attribute of buyer-supplier relationship and the attribute of supplier's innovation through case research. We define the attribute of buyer-supplier relationship as 'tie strength' (Granovetter, 1973), and the attribute of supplier's innovation as 'exploitation or exploration' (March, 1991). We selected the semiconductor equipment industry of U.S.A, Japan and Korea and firm (JUSUNG Engineering) as cases that examine the relation. We found that a strong tie relationship is positively associated with supplier's exploitation based innovation, and a weak tie relationship is positively related to it's exploration based innovation in this research also. In addition, we could verify reduction of strong tie relationship cause supplier's organizational change.

• International Journal of Quality Innovation
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• v.9 no.3
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• pp.57-69
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• 2008

This paper posits that arm's length buyer-supplier relationship as the intermediate type between market exchange relations and strategic partnership might be advisable, and information technology may have a role as a mechanism actualizing the effects of such arm's length relationship by strategic supply-line diversification. Based on the theoretical analysis on interactive feedback relationships among IT level, buyer-supplier relationships, and supply chain structure, we suggest a set of advisable buyer-supplier relationship type for efficient supply chain management. Also, doing so would be helpful in suggesting a dynamic IT investment and adoption model appropriate for the establishment of productive buyer-supplier relationship, and further in providing theoretical foundations and practical guidelines on the role and function of B-to-B E-commerce for efficient SC integration.

• Journal of the Korean Dietetic Association
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• v.8 no.1
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• pp.1-8
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• 2002

The purpose of this study is to clarify success factors for desirable relationship between buyer and supplier in elementary school. Therefore, the survey questionnaire consisted of general background, past success, success difference, buyer-supplier relationship characteristics(trust, supporting status, communication behavior, conflict resolution techniques, supplier selection process). The subjects were 66 dieticians of elementary school in Inchon. The statistical analysis of data was completed using SPSS program. The results were summarized as follows : Average total cost/day per one person ￦1,156. The number of suppliers per one school were 6. 92.3% of the subjects were in favor of private contract, regarding contract methods of purchasing food materials. For the past success, degree of satisfaction about past their supplier showed 3.49 score. The present success difference was shown higher than the past success. There was significant correlation between the past success and the present success difference. Trust about suppliers showed 3.40score. Supplying companies hardly support for buying school. Among information quality(timely, accurate, adequate, complete, credible), timely and complete showed lower score than the other kind of elements. Among the buyer-supplier relationship characteristic elements, only trust correlated with satisfaction about suppliers significantly. Among the conflict resolution techniques, joint problem solving and persuasive attempts were often made use of by subjects. The supplier selection criteria were shown quality(7.47), supplier's capabilities(6.46), management plan(6.00), price(5.73), scale(5.48), assets(5.27), considers delivery(4.76) and technology(2.39). As results, trust was needed for the desirable relationship between buyers and suppliers. This study has some limitations. The data in this study were collected from only buyer. It is more desired to acquire data from suppliers also.

• Journal of Korean Society for Quality Management
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• v.35 no.1
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• pp.81-96
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• 2007

In this study, we conduct an empirical study to investigate the impact of the interdependence and trust between supplier and buyer on both their collaboration and supplier performance in automobile industry supply chain. The result shows that there is a positive relationship between the supplier's dependence and trust on the buyer and their collaboration. Moreover, it shows that supplier's dependence and trust on the buyer affects supplier performance through collaboration as a mediating effect. Therefore it is very important to notice that supplier and buyer in automobile industry should try to have a good collaborative relationship together in order to improve supplier performance.

• Journal of Distribution Science
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• v.14 no.8
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• pp.113-121
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• 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 Information Technology and Architecture
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• v.9 no.4
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• pp.365-376
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• 2012

We examine the value of information sharing in the context of supplier-buyer relationships after controlling for trading partners' opportunism. Given that trading partners' opportunism is not randomly chosen, we explicitly incorporate their self-selection process into our estimation procedure by employing Heckman's self-selection model. According to our analysis, firms that have built safeguards via mutual trust, commitments and information sharing experience less opportunistic risk in supplier-buyer relationships. Our findings also suggest that information sharing has a positive impact on firm performance after controlling for opportunism. Further, firms that are less exposed to trading partners' opportunistic risk have achieved a higher performance than others that are more exposed. Importantly, higher performance for those firms with less opportunistic risk is driven by safeguards in supplier-buyer relationships as well as information sharing. Our findings can be applied for systems analysts to design information systems of supplier-buyer transactions.

• Korean Management Science Review
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• v.21 no.2
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• pp.167-189
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• 2004

Cooperative and integrative partnerships between buyers and suppliers are very important for effective operations. Such partnerships should be based on various information technologies developed in recent years. Therefore, we investigated the relationship among IT performance, IT infrastructure and supply chain performance in buyer-supplier linkage using exploratory examination. This analysis is based on survey results of buyer-supplier practitioners in Korean electronics industry. Specifically, we used factor analysis, correlation analysis, and regression analysis. Major findings are as follows. First. buyers' IT performance contributed to enhance their operational & financial performance, and satisfaction. Second, buyers' IT infrastructure improved their financial performance and satisfaction but showed mixed effects on operational performance. Third, suppliers' operational performance enhanced buyers' operational & financial performance, and satisfaction. Fourth, suppliers' IT performance strengthened their operational & financial performance, and satisfaction. Fifth, suppliers' IT infrastructure showed positive relationships with operational performance and satisfaction.

• Journal of the Korean Operations Research and Management Science Society
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• v.33 no.4
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• pp.13-30
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• 2008

We explore the determinants of long-term relationship between the buyer and the supplier to help suppliers develope a strategy to build long-term relationship with their buyers. Based upon an extensive literature review, we propose three droops of independent variables which may affect long-term relationship, including (a) environmental factors (product complexity, product importance, source dependence, price sensitivity), (b) relational factors(trust, commitment, satisfaction, intention of expansion), (c) operational performance(quality, delivery, cost capability, technical knowhow). The buyer's actual period of relationship with its main supplier is used as a dependent variable. Using hierarchical multiple regression analysis, we empirically test hypotheses, analysing a sample of 290 manufacturing firms in the U.S. The statistical results indicate that the buyer's source dependence, price sensitivity and the supplier's commitment play a significant role in establishing long-term relationship between the buyer and the supplier. However, the supplier's cost capability and technical knowhow in operational performance negatively affect long-term relationship in contrast with our hypotheses. Due to this controversial result, we divide the sample group Into dual sourcing and multiple sourcing environments and reconduct regression analysis in a post hoc manner. The findings show that the supplier's cost capability and technical knowhow are negatively associated with the length of relationship only in the multiple sourcing environment. The results may confirm that both parties' opportunistic behavior is more salient in the multiple sourcing environment than in the single sourcing environment.

• The Journal of Industrial Distribution & Business
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• v.14 no.8
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• pp.27-35
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• 2023

The main objective of this study is to examine the impact of entrepreneurial orientation (EO) on small and medium-sized enterprises' (SMEs) performance in the context of subcontracting buyer-supplier relation. Specifically, we seek to examine whether the power dynamics between buyer and supplier either support or hamper subcontracting SMEs' ability to effectively pursue EO for enhancing their performance. Research design, data, and methodology: We collected survey questionnaires from Korean SMEs that are certified with Inno-biz by the Korean Ministry of SMEs and Startups. The collected data was analyzed using SPSS 26 and AMOS to create an integrated model. Result: Based on the analysis, our findings indicate that the proactiveness and innovativeness dimensions of EO have a positive effect on the SMEs' performance. However, the risk-taking dimension of EO has a negative effect on performance. Additionally, buyer dependency exhibit both positive and negative moderating effects on different dimensions of EO. Conclusion: For SMEs that rely heavily on a particular buyer in terms of sale, pursuing innovativeness dimension of EO could lead to positive performance, while pursuing proactiveness dimension of EO had a negative moderating effect on performance.

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