• Journal of Global Scholars of Marketing Science
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• v.17 no.2
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• pp.31-54
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• 2007

The exchange between buyers and sellers in the industrial market is changing from short-term to long-term relationships. Long-term relationships are governed mainly by formal contracts or informal agreements, but many scholars are now asserting that controlling relationship by using formal contracts under environmental dynamism is inappropriate. In this case, partners will depend on each other's flexibility or interdependence. The former, flexibility, provides a general frame of reference, order, and standards against which to guide and assess appropriate behavior in dynamic and ambiguous situations, thus motivating the value-oriented performance goals shared between partners. It is based on social sacrifices, which can potentially minimize any opportunistic behaviors. The later, interdependence, means that each firm possesses a high level of dependence in an dynamic channel relationship. When interdependence is high in magnitude and symmetric, each firm enjoys a high level of power and the bonds between the firms should be reasonably strong. Strong shared power is likely to promote commitment because of the common interests, attention, and support found in such channel relationships. This study deals with environmental dynamism in high-tech industry. Firms in the high-tech industry regard it as a key success factor to successfully cope with environmental changes. However, due to the lack of studies dealing with environmental dynamism and supply chain commitment in the high-tech industry, it is very difficult to find effective strategies to cope with them. This paper presents the results of an empirical study on the relationship between environmental dynamism and supply chain commitment in the high-tech industry. We examined the effects of consumer, competitor, and technological dynamism on supply chain commitment. Additionally, we examined the moderating effects of flexibility and dependence of supply chains. This study was confined to the type of high-tech industry which has the characteristics of rapid technology change and short product lifecycle. Flexibility among the firms of this industry, having the characteristic of hard and fast growth, is more important here than among any other industry. Thus, a variety of environmental dynamism can affect a supply chain relationship. The industries targeted industries were electronic parts, metal product, computer, electric machine, automobile, and medical precision manufacturing industries. Data was collected as follows. During the survey, the researchers managed to obtain the list of parts suppliers of 2 companies, N and L, with an international competitiveness in the mobile phone manufacturing industry; and of the suppliers in a business relationship with S company, a semiconductor manufacturing company. They were asked to respond to the survey via telephone and e-mail. During the two month period of February-April 2006, we were able to collect data from 44 companies. The respondents were restricted to direct dealing authorities and subcontractor company (the supplier) staff with at least three months of dealing experience with a manufacture (an industrial material buyer). The measurement validation procedures included scale reliability; discriminant and convergent validity were used to validate measures. Also, the reliability measurements traditionally employed, such as the Cronbach's alpha, were used. All the reliabilities were greater than.70. A series of exploratory factor analyses was conducted. We conducted confirmatory factor analyses to assess the validity of our measurements. A series of chi-square difference tests were conducted so that the discriminant validity could be ensured. For each pair, we estimated two models-an unconstrained model and a constrained model-and compared the two model fits. All these tests supported discriminant validity. Also, all items loaded significantly on their respective constructs, providing support for convergent validity. We then examined composite reliability and average variance extracted (AVE). The composite reliability of each construct was greater than.70. The AVE of each construct was greater than.50. According to the multiple regression analysis, customer dynamism had a negative effect and competitor dynamism had a positive effect on a supplier's commitment. In addition, flexibility and dependence had significant moderating effects on customer and competitor dynamism. On the other hand, all hypotheses about technological dynamism had no significant effects on commitment. In other words, technological dynamism had no direct effect on supplier's commitment and was not moderated by the flexibility and dependence of the supply chain. This study makes its contribution in the point of view that this is a rare study on environmental dynamism and supply chain commitment in the field of high-tech industry. Especially, this study verified the effects of three sectors of environmental dynamism on supplier's commitment. Also, it empirically tested how the effects were moderated by flexibility and dependence. The results showed that flexibility and interdependence had a role to strengthen supplier's commitment under environmental dynamism in high-tech industry. Thus relationship managers in high-tech industry should make supply chain relationship flexible and interdependent. The limitations of the study are as follows; First, about the research setting, the study was conducted with high-tech industry, in which the direction of the change in the power balance of supply chain dyads is usually determined by manufacturers. So we have a difficulty with generalization. We need to control the power structure between partners in a future study. Secondly, about flexibility, we treated it throughout the paper as positive, but it can also be negative, i.e. violating an agreement or moving, but in the wrong direction, etc. Therefore we need to investigate the multi-dimensionality of flexibility in future research.

• The Journal of Society for e-Business Studies
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• v.17 no.3
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• pp.105-116
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• 2012

In the system integration (SI) industry, improving relationships with outsourcing partners is one of the key challenges faced by SI companies that aim to increase productivity and reduce costs. In the SI industry, over 80% of project development work is performed by these outsourcing partners. Hence, large SI companies focus on fostering high-performing partners through improved cooperation and mutual relations. However, in the SI industry the existing process of managing outsourcing partners is unable to advance to the level of long-term partnerships due to inadequate information sharing and communication in the process of selecting and assessing a potential and existing partner. Based on the theory of partnership, this study identifies the success factors for new strategic partnerships. Further, this study presents a model for assessing partner companies to promote increased productivity and improve the relationship between an SI company and its partner. In addition, this model is used to assess partner relationships for a well-known SI company "A". This study explores the feasibility of a new framework model.

• The Research Journal of the Costume Culture
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• v.17 no.3
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• pp.512-522
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• 2009

The purpose of this study is to analyze IT infrastructure of Korean apparel industry in order to enhance business effectiveness and customer's satisfaction in information society with global networks. For this study, the questionnaires were distributed to 57 apparel industries in Korea. The data were analyzed by factor analysis, descriptive statistics, Cronbach's alpha coefficient, multi regression analysis. The results of this study are as follow: First, Considering the apparel industry, construction of information system is essential for assistance of information policy and utilization of information. Understanding of e-business policy affects profits of suppliers. Second, Apparel industry with higher information policy has higher productivity with flexibility. Third, Apparel industry which has close relationship with suppliers has better customer support. Flexible scheduling and production line are important factors for quick response of customer's order and need.

• Journal of Distribution Research
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• v.4 no.1
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• pp.93-122
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• 1999

Long-term relationship in distribution channels has been emphasized in the former researches. But many researches and literatures have not focused on how to achieve and maintain long-term relationship. To achieve and maintain long-term relationship, this study pays attention to the role of trust and commitment. The purpose of this study is explaining the relation between trust and commitment with the mutual perspectives of retailer and supplier. Research results indicate that trust has an effect on commitment, trust has two levels of firm and a responsible person, and perception of partners commitment has an effect on trust in two levels. And it shows that to increase perception of commitment, increasing commitment, quality of communication, satisfaction, reputation, and decreasing opportunistic behavior should be considered.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.7
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• pp.333-339
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• 2021

The study seeks to identify the determinants of the adoption of e-commerce by small and medium-sized enterprises (SMEs) in developing countries, in our case, in Indonesia. The aim of this study is to examine the factors influencing e-commerce adoption. This study uses the method of quantitative data collection based on a questionnaire survey of SMEs in Indonesia. The research relies on Regional Project stipulations regarding Business Development in Indonesia, to capture businesses with a range of 5 to 100 employees that are classified as SMEs. This study randomly chose 100 SMEs in Indonesia from the IndoNetwork database. Partial least square (PLS) structural model data processing was used for path coefficients analysis. Structural equation modeling is applied in this study to analyze the determinant factors on the e-commerce adoption. The study findings reveal that four factors, namely, perceived benefits, compatibility, technology readiness, and government support, significantly influence the adoption of e-commerce, whereas customer/supplier pressure does not have influence. So, this study concludes that perceived benefits, compatibility, technology readiness, and government support had a significant and positive relationship with e-commerce adoption. Meanwhile, customer/supplier pressure had no effect on the e-commerce adoption of by Indonesia SMEs.

• Journal of Korea Society of Industrial Information Systems
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• v.26 no.5
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• pp.55-68
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• 2021

In the B2B context, recent research on how CSR builds the relationship between buyer and supplier has mainly focused the topic that establishing the long-term relationship asset. To fill this gap, the current study proposes a research model to examine how buyer's corporate social responsibilities(business and philanthropic CSR) affect supplier's new product creativity(internal capability) and its mediated link through trust and quality of information exchange. To test the hypotheses, responses were obtained from 197 marketing or buying managers in B2B firms. The empirical results confirm that both business and philanthropic CSR are positively related to trust. Second, trust also positively influences quality of information exchange. Finally, quality of information exchange has a positive relationship with new product creativity as internal capabilities of suppliers. The theoretical and practical implications of results and limitations of this research are discussed.

• Journal of the Korean Society for information Management
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• v.24 no.3
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• pp.21-41
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• 2007

IT outsourcing has become a critical component of organizations, but improper expectations, ambiguous contracts and unclear goals frequently cause the failure of IT outsourcing. Especially we have to be concerned about the uncareful management of customer-supplier relationships based on a psychological contract perspective. This study focuses on the obligations of contractual parties for IT outsourcing which influence the outsourcing relationship(OR) and the successful performance of IT outsourcing(OP). The supplier obligations consist of the achievable infrastructure(S1) and capability(S2), and the customer obligations is composed of the acceptable environment(C1) and acceptability(C2) for IT outsourcing. This paper shows that the S1, S2, and C2 have an effect on the OR, the OR on the OP, and the S2 also on the OP directly. The four components of customer-supplier obligations are mutually related to each other. What is more, we must notice that the S2 has strong connections with the C2.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2002.05a
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• pp.449-455
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• 2002

This paper considers that advanced planning and scheduling (APS) in manufacturing and the efficient purchasing where each customer order has its due date and multi-suppliers exit We present a Make-To­Order Supply Chan (MTOSC) model of efficient purchasing process from multi-suppliers and APS with outsourcing in a supply chain, which requires the absolute due date and minimized total cost. Our research has included two states. One is for efficient purchasing from suppliers: (a) selection of suppliers for required parts; (b) optimum part lead­time of selected suppliers. Supplier selection process has received considerable attention in the business­management literature. Determining suitable suppliers in the supply chain has become a key strategic consideration. However, the nature of these decisions usually is complex and unstructured. These influence factors can be divided into quantitative and qualitative factors. In the first level, linguistic values are used to assess the ratings for the qualitative factors such as profitability, relationship closeness and quality. In the second level a MTOSC model determines the solutions (supplier selection and order quantity) by considering quantitative factors such as part unit price, supplier's lead-time, and storage cost, etc. The other is for APS: (a) selection of the best machine for each operation; (b) deciding sequence of operations; (c) picking out the operations to be outsourcing; and (d) minimizing makespan under the due date of each customer's order. To solve the model, a genetic algorithm (GA)-based heuristic approach is developed. From the numerical experiments, GA­based approach could efficiently solve the proposed model, and show the best process plan and schedule for all customers' orders.

• 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 Distribution Science
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• v.16 no.6
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• pp.25-35
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• 2018

Purpose - Although marketing networks are crucial competitive advantage in terms of firm's new information and resource acquisition ability, their impact on new product development performance remains vague, especially under environmental uncertainty. The principal objective of this research is to provide a better understanding of effects of technological uncertainty and volume uncertainty on first tier supplier's perceived performance of new product development under conditions reflecting varying levels of structural holes. Specifically, this research examines the moderating effect of structural holes on the relationship between environmental uncertainty and new product development performance. Research design, data, and methodology - To test the hypotheses, a questionnaire survey was conducted with a Korean engineering firm's major first-tier suppliers in the context of internal network entities, manufacturer-supplier-subsupplier relationships, and to verify the proposed hypotheses, structural equation modeling was established. Construct measures were based on existing measures and previous research. Results - The survey results indicate that technological uncertainty and volume uncertainty differentially affect NPD performance under conditions of high and low structural holes. Conclusions - This study offer some theoretical and practical implications among distribution channel members, especially, this study suggests that interfirm networks have critical competitive advantage in uncertain environments. The distinctiveness of engineering industry might limit the generalizability of the results. Thus, future research should consider a wider range of industries.