In recent years, both the academic and practitioner-based literatures have witnessed a spate of interest in the management of supplier relationships. In particular, the movement from transaction to relational modes of buyer–supplier interaction has been highlighted as a dramatic shift. This article reexamines the nature of management of supplier relationships from the perspective of resource interfaces. We propose a categorization of four different interfaces based on how a focal customer can access its suppliers' resources. The four different interfaces serve different purposes and have various implications for static (productivity) and dynamic (innovativity) efficiency. We conclude by highlighting the costs and benefits of establishing and maintaining different supplier interfaces. The main implication stemming from our analysis is that buying firms need a variety of supplier interfaces to pursue productivity and innovativity objectives.

Managing interfaces with suppliers

The focus of this paper is the architecture of complex forms of governance, specifically, the architecture of networks. A network is a complex form of organization designed to govern inter-firm transactions involving horizontal and vertical coordination. The agent´s choice among various institutional arrangements is affected by relation-specific investments, distributive mechanisms, and dynamic aspects based on relational contractual mechanisms, trust being a relevant variable. This paper investigates how horizontal and vertical coordination levels are connected. It recognizes that price incentives are important and introduces the effect of network externalities that also offer incentives. The paper presents a semiformal model that considers the existence of network externalities and applies a game approach to explain the choice among alternative strategies. The conceptual model is applied to two cases of network architecture in agro-industrial relations.

Dynamics of Network Governance: A Contribution to the Study of Complex Forms

/pdf/integration-and-self-regulation-of-quality-management-in-56r9lk2uk9.pdf

Integration and self regulation of quality management in Dutch agri-food supply chains : a cross-chain analysis of the poultry meat, the fruit and vegetable and the flower and potted plant chains

Keywords: Social capital, guanxi networks, vegetable supply chains, buyer-seller relationships, channel performance, China Guanxi is ubiquitous in China and significantly influences people's behaviour in social life and in business. Guanxi refers to personal relationships or connections and is widely recognised as a Chinese form of social capital. This book focuses on the questions, if, and if so, how small-scale producers, together with processors and exporters, can be more successfully integrated into high-value supply chains (i.e., processors, supermarkets and international markets). In particular, our focus is on how Chinese vegetable farmers can use their guanxi networks to be integrated into these modern supply chains and can improve their market performance. We study the effectiveness of both formal (contracts) and relational ( guanxi ) governance mechanisms to improve the integration of buyer-seller relationships and ultimately, to enhance chain performance. We apply various theoretical approaches, supply chain management, social capital theory and transaction cost economics, to develop propositions regarding the interrelation of support from guanxi networks (what guanxi can do for you), buyer-seller relationships (interpersonal trust, transaction specific investments and contractual governance) and market performance (compliance with delivery/quality requirements, efficiency, quality/price satisfaction, and profitability). We combine case study with survey analysis and use structural equation modelling techniques to test the propositions. Background analysis of the Chinese vegetable sector indicates that small-scale farmers usually fail to integrate into high-value market outlets. This is because these farmers face several constraints, such as small production scale, less possibilities to implement quality standards, low negotiation power, and information asymmetry. However, empirical analysis based on three different buyer-seller relationships, including farmers, processors and exporters/supermarkets, shows that support from guanxi networks and integration of buyer-seller relationships significantly contribute to market performance (especially with downstream partners). The effects of guanxi networks differ between primary producers, processors and exporters/supermarkets, and across marketing channels. Vegetable farmers and their buyers show an idiosyncratic way to rely on their guanxi networks in doing business. Furthermore, vegetable farmers and their buyers follow different approaches to achieve market performance. Interpersonal trust and compliance with delivery requirements are important factors for all parties in supply chains to achieve superior performance. Particularly, in relationships with downstream partners, the sellers tend to rely on their guanxi networks when conducting transactions. In relationships with upstream partners, guanxi networks and contractual governance are less often used. This study shows that the combination of formal (contract) and informal ( guanxi ) governance mechanisms seems to be the best way to improve chain performance in vegetable supply chains in China . Policy should be directed to improve farmers' capacity to participate in modern high-value markets as well as to enhance the prospects for China 's vegetables in the world.

/pdf/the-role-of-guanxi-in-buyer-seller-relationships-in-china-a-30k7vt8r8c.pdf

The role of guanxi in buyer-seller relationships in China: A survey of vegetable supply chains in Jiangsu Province

Measuring chain performance which extends beyond supplier–buyer interface is of paramount importance in tracking and tracing the ineffectiveness and inefficiency of the entire chain. In response to chain inefficiencies, key performance indicators need to be assessed at different chain levels. Knowledge amongst chain members and evident research on the chain members’ assessment of the chain partners’ contribution to their individual chain performance is equivocal. The purpose of this study is to investigate perceived performance contribution of bilateral relationships of each chain member to its chain partners’ performance across the dairy sector.,The research was conducted in a dairy agri-food sector in Uganda. A total of 115 triad chains (three matching chain members) were obtained during the period of January to April 2016. Using simple random sampling, the dairy farmers (first suppliers), the cooperative supply managers (second suppliers) and the processors (buyers) were surveyed. Means and standard deviations presented descriptive findings. Furthermore, Kruskal–Wallis and Mann–Whitney U tests were used to assess the differences and similarities of the perceived performance contribution of the individual chain partners.,The results revealed that each chain members’ perception of chain performance contribution toward the individual chain performance is relatively high. Further, it was found that there were significant differences between the chain members about the perceived chain performance contributions. However, within the internal chain analysis, no significant differences were observed.,Although limited to a single agri-food sector within the Ugandan dairy sector, the findings support evidence from similar agri-food chains worldwide.,Literature shows shortcomings in measuring chain performance at three chain levels. Therefore, this shift from single or dyad to triad chain analysis provides new insights into the field of agri-food chains and supply chain performance in particular. It also provides important empirical results on how each chain member contributes to the chain partners’ performance.

Measuring chain performance beyond supplier-buyer relationships in agri-food chains

Managing networks and buyer-supplier relationships " attempt to provide scientific sound discussion for problems faced in business linkages. Business networks, supply chains and buyer-supplier relationships all refer to business linkages, from a web of connected relationships to a dyadic relationship. At the beginning of our study, we were triggered by the impact of the business network on collaborative, long-term buyer-supplier relationships. In other words, does the information a company obtains from the network support the buyer-supplier relationship? In fact, yes. Our study provides a theoretical framework and empirical evidence that will assist practitioners in the management of their business network and buyer-supplier relationships. The empirical evidence was gathered on the basis of two constructive steps, namely case study and survey. Buyers and suppliers in the Dutch potted flower and plant industry offered valuable insights to estimate statistical models. The involvement of buyers and suppliers allowed discussions from both sides of the relationship - purchasing and marketing. This thesis is aimed at managers at different levels in firms, which includes every decision maker in purchasing, selling or strategic planning levels. Policy makers and researchers in the field of supply chain and network management may also find useful ideas and concepts in our theoretical framework. Researchers in the fields of relationship management may be particularly interested in the operationalizations of the conceptual elements of the framework and the interpretation of the estimated statistical models.

/pdf/managing-business-networks-and-buyer-supplier-relationships-12tcfkkwuw.pdf

Managing business networks and buyer-supplier relationships. How information obtained from the business network affects trust, transaction specific investments, collaboration and performance in the Dutch Potted Plant and Flower Industry

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Managing business networks and buyer-supplier relationships. How information obtained from the business network affects trust, transaction specific investments, collaboration and performance in the Dutch Potted Plant and Flower Industry