• Journal of Distribution Science
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• v.17 no.4
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• pp.59-68
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• 2019

Purpose - The purpose of this study is to examine the differential mediating effects of three dimensions of buyer trust in the influence of supplier characteristics on the relationship performance. In this study, transaction characteristics were classified into competences and assets. The corporate reputation is considered as intangible assets, the customer-linking capability is considered among the competencies and transaction specific asset is selected from tangible assets. This study is also to examine the moderating effect of technical environment uncertainty in the effects of integrity and benevolence on the intention to continue trading. This study aims to provide a guide on which dimension suppliers should manage and how to improve their trust in order to maintain business with companies in technical environment uncertainty. Research design, data, and methodology - The data for the empirical analysis of this study were obtained by interviewing the 274 purchasing managers of Daegu - Gyeongbuk small and medium enterprises. The items used in this survey were partially modified to fit the characteristics of the B2B industry. The reliability and validity of the variables were analyzed using SPSS 18.0 and AMOS 18.0 programs and hypotheses were verified through the structural equation modeling. Results - In this study, reliability was examined by Cronbach 'α test. Composite Reliability and Average Mean Variance extracted value exceeded the baseline values. As a result of hypotheses testing, the hypothesis that the transaction specific asset will improve the benevolence and that benevolence will improve the intention to continue the transaction were rejected and all the other 9 hypotheses were adopted include 2 moderating hypothesis. Conclusions - This study shows which dimension of trust suppliers should appeal to the buyer according to the uncertainty of the technology environment in order to maintain the transaction with the buyer. competence and integrity are important when technology environment uncertainty is low, and competence and benevolence are important when technical environment uncertainty is high. In order to improve competence, corporate reputation and transaction-specific asset are important. To improve integrity, corporate reputation and customer-linking capability are important. In order to improve benevolence, customer-linking capability is important. And various implications were discussed.

• The Journal of Industrial Distribution & Business
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• v.9 no.9
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• pp.53-62
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• 2018

Purpose - The focus of this study is to investigate the structural influences such as brand value, relationship value, market orientation, long-term orientation, and performance. The effects of brand value and relationship value on the differences on transaction performance in b2b was investigated. Research design, data, and methodology - The subject of this study was a liquor and beverage distribution company that deals in b2b. The research hypothesis is based on literature of the preceding research analysis of brand value, relationship value, market orientation and long-term orientation. This study has constructs that was defined operationally by referencing previous studies. Operational questionnaire was used to investigate the target key staff who work in the liquor and beverage distribution company. 178 survey data were used for empirical analysis to prove the hypothesis. This study used structural equation techniques(AMOS) to prove the research hypothesis. Results - The main results of this empirical study were as follows. First, supplier's brand awareness has a positive effect on market orientation, but did not affect long-term orientation. Brand awareness of suppliers indicates that they are not directly related to long-term orientation. Second, supplier's brand image has a positive effect on market orientation and long-term orientation in b2b transaction. So, the brand image and reputation of the supplier suggest that it is important for the b2b transaction to have a market orientation tendency or a long-term orientation. Third, supplier's relationship value has a positive effect on long-term orientation, but does not affect market orientation. Relationship value indicates that they are not directly related to market orientations of the buyer. Fourth, Market orientation has a positive effect on long-term orientation and marketing performance and long-term orientation has a positive effect on marketing performance in b2b. Additionally, the buyers market and long term orientation are important factors in marketing performance in b2b. ' Conclusions - Based on empirical results, this study confirmed that brand image rather than brand awareness positively influenced long-term orientation as well as market orientation in b2b. Relationship value can be found in transactions, which is important for long-term orientation. Especially, these findings are suggestive in the consumer goods distribution market.

• Asia pacific journal of information systems
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• v.19 no.1
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• pp.83-111
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• 2009

Despite the growing emphasis on the importance of knowledge exchange among supply chain participants, few companies have fully exploited the knowledge resources held by their supply chain partners. Among many reasons for this phenomenon, recent literature on inter-firm knowledge exchange identifies knowledge complementarities between the supply channel partners as an important determinant of knowledge exchange. Firms participating in a supply chain are likely to exchange partners' complementary knowledge. In order to extract value from them, it is important to recognize the difference between the potential value and the implementation of this potential value. However, the literature fails to distinguish between potential knowledge complementarities and implemented knowledge complementarities. In order to realize the value of potential knowledge complementarities, knowledge should be exchanged and effectively integrated in the supply channel. Further, investigating inter-firm knowledge exchange from both partners' perspectives is important especially when there are interdependencies between the channel partners. The purpose of this research is to investigate the impact of potential knowledge complementarities on knowledge exchange in buyer-supplier relationships by looking at both partners' perspectives. This research also includes trust in partner's competence and inter-organizational information systems (IOIS) as they are relevant when the complementary knowledge flows between organizations. The data required for this field study was collected from 70 buyers and their suppliers in three multinational enterprises in two different industries (Automobile manufacturing and Telecommunication services) headquartered in Korea. The results indicate that potential knowledge complementarities between buyer and supplier do not directly influence knowledge exchange, but indirectly through trust in partner's competence. And the results indicate that competence-based trust and IOIS have direct effects on knowledge exchange. Empirical results also show that IOIS moderates the relationship between potential knowledge complementarities and knowledge exchange. This study is a first attempt to empirically verify the theoretical model about potential knowledge complementarities and to investigate the impact of potential knowledge complementarities on interfirm knowledge exchange. From a theoretical perspective, this study not only clarifies the distinction between potential knowledge complementarities and implemented knowledge complementarities, but also develops an instrument to measure the concept of potential knowledge complementarities in the context of operational and planning knowledge in a supply chain. Further, we develop a theoretical framework suggesting that potential knowledge complementarities of partners in a supply chain affect knowledge exchange directly and indirectly through competence-based trust. The findings from this study have some managerial implications for practicing managers as well. First, buyers should search for suppliers that have potential complementary knowledge, which can be integrated to create synergy through interfirm knowledge exchange. Furthermore, firms must develop mechanisms to identify potential complementary knowledge of partners. Second, firms should continue their endeavor to develop their own unique knowledge so that their knowledge can benefit the entire supply channel. Finally, trust among supply chain partners turns out to be an important factor for interfirm knowledge exchange. Therefore, effective management for engendering trustworthy buyer-supplier relationships should receive appropriate attention from managers.

• Journal of Information Technology Services
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• v.15 no.3
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• pp.127-145
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• 2016

This paper aims to investigate empirically how brand trust can be formed from the customer-brand relationship through a direct use of firm's SNS in B2B context. The brand trust is fundamental elements to understanding of long-term relationship in a B2B context. To achieve the objectives of this study, data collection is through a personally administered questionnaire, and a total of 180 questionnaires was collected from the buyer or supplier who frequently visited partner's firm SNS. Excluding missing data, 120 usable data were analyzed. From the results, first, three SNS motivations (i.e. Information, social and entertainment) has a positive impact on the perceived value of SNS (i.e. perceived usefulness and perceived enjoyment). Second, the perceived usefulness and perceived enjoyment positively affect customer-brand relationship (brand intimacy, brand attachment). Third, the customer-brand relationship is positively related to brand trust. Implications, limitations and future research directions of the study were also discussed. These findings help managers in developing and implementing the relation between SNS use and a customer-brand relationship for long-term relationship in B2B.

• Journal of Distribution Science
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• v.13 no.11
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• pp.47-58
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• 2015

Purpose - This study aims to seek determinants of department store sales commission rates under consignment contracts based on transaction cost theory, the power-dependence view, and the resource-based view. A consignment contract is a unique contract where the retailer, over a given period, takes possession of goods owned by a supplier, promotes the sales of these goods, and receives a profit share from their sales. Under this contract, the supplier owns the goods until they are sold. In department stores in South Korea, over 70% of overall sales comes through consignment contracts. In other words, this is the most popular contract agreement between large retailers and vendors in South Korea. Consignment contracts yield high profits to department stores with minimal sales uncertainty, stock cost, and marketing investment. Many suppliers believe the consignment contract commission rates are too high. However, department stores disagree. They state that the commissions are not high as they generate new value for the suppliers by accumulating up-to-date merchandise and supporting various marketing programs on their behalf. Recently, consignment contracts have been critically examined and scrutinized by politicians, mass media, and the public of Korea. This study further intends to derive implications reflecting both buyer and seller perspectives as well as offer insights to policy makers in making appropriate decisions. Research design, data, and methodology - To verify the proposed research model and test hypotheses, the authors selected 164 suppliers, which currently have relationships with department stores. This study carefully investigated the reliability, content validity, convergent validity, and discriminant validity of the proposed model. The data were analyzed using SPSS 18.0 and AMOS structural equation modeling program Results - For the transaction cost theory and the power-dependence view, the results indicated that product diversity and demand volatility had a positive impact on the sales dependence on a department store. Dependence in turn had a positive effect on the sales commission under the consignment contract. Based on the resource-based view, the department store's marketing capability, the supplier's perception toward merchandising, and supporting activities could enhance the department store's channel leadership in the buyer-seller relationship. Subsequently, the channel leadership had a positive effect on the sales commission. However, product complexity had no relationship with department store dependence. Conclusions - This is the first empirical research that investigates the determinants of sales commissions under consignment contracts in the domestic retail industry. This study reveals several theoretical and practical implications for both marketing scholars and marketers. In terms of theoretical implication, this study integrated and enlarged certain theoretical background, such as transaction cost theory, the power-dependence view, and the resource-based view, to explain the determinants of sales commissions under consignment contracts that include sales revenue. From a business management viewpoint, this research offers useful insights for policy makers by applying two different perspectives, both the manufacturer and the retailer, in terms of the sales commission issue under a consignment contract.

• Journal of Digital Convergence
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• v.20 no.1
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• pp.107-117
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• 2022

This study aims to examine the relationship between the economic, environmental and social activities of sustainable supply chains and the customer satisfaction and customer retention rate, which are the final results in the supplier's operational performance and the buyer's market performance. The survey was conducted on employees in charge of supply chain management, purchasing company, partner company, and logistics management in the company. The final 193 valid data were analyzed to verify the research hypothesis. The results of the study showed that the economic and social activities of the sustainable supply chain had a positive effect on the supplier performance and the purchaser performance, but environmental activities had a negative effect on the supplier performance. In addition, the purchasing company performance has a positive effect on customer satisfaction and customer retention rate. This study provides a theoretical basis for sustainable supply chain activities to affect the operating performance of suppliers and the market performance of buyers, and suggests implications for enhancing the competitiveness of companies through the performance creation process that affects customer performance.

• Journal of Arbitration Studies
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• v.30 no.2
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• pp.165-184
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• 2020

In this study, the factors affecting opportunism in the relationship between suppliers and key accounts were analyzed from the viewpoint of transaction cost theory, market power theory, and relationship marketing theory. As a result of the hypothesis test, Hypothesis 1 stating that demand volatility will have a positive effect on opportunism and Hypothesis 2 that transaction-specific investment will have a positive effect on opportunism were also supported. In addition, Hypothesis 3 stating that channel power will have a positive effect on opportunism was also supported. Lastly, Hypothesis 4 stating that relational commitment will have a negative effect on opportunism was not supported, along with Hypothesis 5 stating that transaction satisfaction will have a negative effect on opportunism. The theoretical and practical implications of this study are as follows. This study has identified the antecedents of opportunism by comprehensively applying the transaction cost theory, market power theory, and relationship marketing theory. In addition, this study can identify what a company should manage specifically to lower opportunism by identifying the antecedents of opportunism. The limitations of this study and the directions for future studies are as follows. First, not all of the antecedents of opportunism of key accounts have been extensively investigated from the viewpoint of the transaction cost theory, market power theory, and relationship marketing theory. In the future, it is necessary to identify additional factors. Second, the study was conducted only in the supplier's viewpoint. In future studies, it is expected that more accurate research results can be obtained by simultaneously examining not only the supplier's point of view but also the buyer's point of view.

• Journal of Distribution Research
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• v.13 no.4
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• pp.71-95
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• 2008

Transaction between industrial suppliers and their buyers in business markets increasingly take place in the form of long-tenn business relationships. These relationships are governed through formal or informal agreements. Dynamic business markets are also forcing B2B marketers to create flexibility in their firms. However, buyers are bound in their rationality and find it impossible to contemplate all possible future contingencies. The more formal and detailed the contracts they conclude, the likelier it becomes that at least one buyer is going to perceive a need to adjust the initial agreement as environmental events unfold. In this case, the actor relies upon industrial supplier's competence. Our study purpose is to examine the consequences of supplier's competence on the industrial customer-supplier long-tenn relationship. Antecedent variables of supplier competence include R&D, flexibility, brand asset, market sensing, and customer support service. We presented a comprehensive constructive model consisting of components of supplier's competence and the antecedent factors. Research hypotheses were developed and data were gathered from respondents who work in the cosmetics industry. The results discussed here represent a first step towards a better understanding of the role of supplier competence in the B-to-B cosmetics industry. Managerial implications and the limitations of this research were also discussed.

• Journal of Distribution Research
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• v.17 no.4
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• pp.55-80
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• 2012

I. Introduction Developing the relationships between companies is very important issue to ensure a competitive advantage in today's business environment (Bleeke & Ernst 1991; Mohr & Spekman 1994; Powell 1990). Partnerships between companies are based on having same goals, pursuing mutual understanding, and having a professional level of interdependence. By having such a partnerships and cooperative efforts between companies, they will achieve efficiency and effectiveness of their business (Mohr and Spekman, 1994). However, it is difficult to expect these ideal results only in the B2B corporate transaction. According to agency theory which is the well-accepted theory in various fields of business strategy, organization, and marketing, the two independent companies have fundamentally different corporate purposes. Also there is a higher chance of developing opportunism and conflict due to natures of human(organization), such as self-interest, bounded rationality, risk aversion, and environment factor as imbalance of information (Eisenhardt 1989). That is, especially partnerships between principal(or buyer) and agent(or supplier) of companies within supply chain, the business contract itself will not provide competitive advantage. But managing partnership between companies is the key to success. Therefore, managing partnership between manufacturer and supplier, and finding causes of conflict are essential to improve B2B performance. In conclusion, based on prior researches and Agency theory, this study will clarify how business hazards cause conflicts on supply chain and then identify how developed conflicts have been managed by two control mechanisms. II. Research model III. Method In order to validate our research model, this study gathered questionnaires from small and medium sized enterprises(SMEs). In Korea, SMEs mean the firms whose employee is under 300 and capital is under 8 billion won(about 7.2 million dollar). We asked the manufacturer's perception about the relationship with the biggest supplier, and our key informants are denied to a person responsible for buying(ex)CEO, executives, managers of purchasing department, and so on). In detail, we contact by telephone to our initial sample(about 1,200 firms) and introduce our research motivation and send our questionnaires by e-mail, mail, and direct survey. Finally we received 361 data and eliminate 32 inappropriate questionnaires. We use 329 manufactures' data on analysis. The purpose of this study is to identify the anticipant role of business hazard (environmental dynamism, asset specificity) and investigate the moderating effect of control mechanism(formal control, social control) on conflict-performance relationship. To find out moderating effect of control methods, we need to compare the regression weight between low versus. high group(about level of exercised control methods). Therefore we choose the structural equation modeling method that is proper to do multi-group analysis. The data analysis is performed by AMOS 17.0 software, and model fits are good statically (CMIN/DF=1.982, p<.000, CFI=.936, IFI=.937, RMSEA=.056). IV. Result V. Discussion Results show that the higher environmental dynamism and asset specificity(on particular supplier) buyer(manufacturer) has, the more B2B conflict exists. And this conflict affect relationship quality and financial outcomes negatively. In addition, social control and formal control could weaken the negative effect of conflict on relationship quality significantly. However, unlikely to assure conflict resolution effect of control mechanisms on relationship quality, financial outcomes are changed by neither social control nor formal control. We could explain this results with the characteristics of our sample, SMEs(Small and Medium sized Enterprises). Financial outcomes of these SMEs(manufacturer or principal) are affected by their customer(usually major company) more easily than their supplier(or agent). And, in recent few years, most of companies have suffered from financial problems because of global economic recession. It means that it is hard to evaluate the contribution of supplier(agent). Therefore we also support the suggestion of Gladstein(1984), Poppo & Zenger(2002) that relational performance variable can capture the focal outcomes of relationship(exchange) better than financial performance variable. This study has some implications that it tests the sources of conflict and investigates the effect of resolution methods of B2B conflict empirically. And, especially, it finds out the significant moderating effect of formal control which past B2B management studies have ignored in Korea.

• Journal of Navigation and Port Research
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• v.46 no.3
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• pp.259-268
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• 2022

Unlike the general buyer-supplier relationship, there are cases wherein the bargaining power of suppliers is greater than that of buyers. This relationship can be found especially in the shipbuilding industry. Thus, this paper focused on strategic items presented in Kraljic's study. The purpose of this study was to examine factors influencing buyers' purchase of strategic items in a market wherein the bargaining power of suppliers is superior. Results show that the path coefficient between environment factor and satisfaction factor was the highest. Additionally, the path coefficient between environment factor and reliability factor was the next highest. Also, as a result of analyzing if there is a difference in perception according to the superiority and inferiority of bargaining power perceived by buyers, significant results were found in some path coefficients.