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Buyer-supplier relationships: derived value over two decades.



INTRODUCTION

Over the past two decades we have witnessed a surge in the number of academic publications investigating the buyer-supplier relationship, as well as the bifurcation Bifurcation

A term used in finance that refers to a splitting of something into two separate pieces.

Notes:
Generally, this term is used to refer to the splitting of a security into two separate pieces for the purpose of complex taxation advantages.
 of purchasing and supply Purchasing and Supply can have several different definitions. According to the Institute for Supply Management (ISM) [1], purchasing is defined as a major function of an organization that is responsible for acquisition of required materials, services, and equipment.  chain management as independent streams of research. This increased interest in buyer-supplier relationships is not only apparent in the volume of publications but also in the scope of interest, with scholars in disparate academic fields studying various aspects of the buyer-supplier relationship. In response to the perceived need for a careful consideration of the changes that have taken place, we reviewed this body of literature and analyzed an·a·lyze  
tr.v. an·a·lyzed, an·a·lyz·ing, an·a·lyz·es
1. To examine methodically by separating into parts and studying their interrelations.

2. Chemistry To make a chemical analysis of.

3.
 its evolution over the last 20 years. We addressed this need by seeking answers to the following research questions: How have academic studies of buying firms' efforts to maximize the value they derive from their relationships with suppliers changed over the last 20 years? What mechanisms and/or investments were commonly investigated as sources or causes of this extracted value?

In order to answer these research questions, we reviewed the publications in four prominent U.S.-based academic journals that published articles on buyer-supplier relationships between 1986 and 2005. First, we selected the articles published that considered empirical studies Empirical studies in social sciences are when the research ends are based on evidence and not just theory. This is done to comply with the scientific method that asserts the objective discovery of knowledge based on verifiable facts of evidence.  of buyer (1)-supplier relationships. Thus, our unit of analysis is the buyer-supplier relationship, and more precisely, we focus on relationships between industrial firms and their suppliers. Next we created a brief description of each article, noted "patterns" revealed in the summaries, and conduced content analysis on the variables investigated in each study. Then we depicted de·pict  
tr.v. de·pict·ed, de·pict·ing, de·picts
1. To represent in a picture or sculpture.

2. To represent in words; describe. See Synonyms at represent.
 the number of publications that considered the value extraction categories revealed by the coding in a histogram histogram
 or bar graph

Graph using vertical or horizontal bars whose lengths indicate quantities. Along with the pie chart, the histogram is the most common format for representing statistical data.
 to determine logical time periods. Using these time periods we constructed a table of the variables studied, including the types of values extracted and the buyer practices or buyer-supplier mutual efforts, grouping them under more general categories. Finally, we illustrated these findings by time period, creating figures that are theoretically causally caus·al  
adj.
1. Of, involving, or constituting a cause: a causal relationship between scarcity of goods and higher prices.

2. Indicative of or expressing a cause.

n.
 consistent with extent theory.

Three important underlying assumptions are made in this paper. First, that the variables studied by researchers reflect the interests of those researchers and, second, that the date of publication can be used as a proxy for research interest at various points in time. Finally, that buying firms purchase inputs from suppliers because they perceive value in doing so, and generally seek to maximize the value that they derive or extract from these supplier relationships. Thus, we assume that the methods of value extraction studied by researchers are likely to reflect the mechanisms being used by buying firms in practice and that recording the independent and dependent variables studied by researchers from 1986 to 2005 is a reasonable means by which to evaluate the evolution of researchers' interests and firms' practices over that period of time.

We found an impressive increase in the number of publications focused on buyer-supplier relationships over the past two decades. Furthermore, our review revealed that the types of value being extracted from buyer-supplier relationships, as reflected in research, changed between 1986 and 2005, as did the mechanisms implemented to create value in these relationships. A histogram of the four major value extraction types researched during four time periods revealed that in the late 1980s' research was almost entirely focused on operational performance, integration-based research began in the early 1990s, capability-based research emerged during the late 1990s and financial performance did not become a major focus until the early 2000s. Count data of the variables included in the studies reviewed, coded using content analysis, reported a relatively consistent number of studies considering buyer practices over these time periods but an exponentially ex·po·nen·tial  
adj.
1. Of or relating to an exponent.

2. Mathematics
a. Containing, involving, or expressed as an exponent.

b.
 increased number of studies conducted that investigate the effects of buyer-supplier mutual effects. Moreover, this data revealed an increased number of mechanisms investigated within these two categories. The actual number of studies considering performance-based studies has not grown, while the number considering the other types of value extraction continue to grow. Figures of four time periods illustrate these findings.

In the following section, we briefly describe our methodology, data collection and analysis. Next, we present our findings and the framework that emerged from the review which categorized cat·e·go·rize  
tr.v. cat·e·go·rized, cat·e·go·riz·ing, cat·e·go·riz·es
To put into a category or categories; classify.



cat
 the value sought, as well as the buyer mechanisms used, to derive value in studies of buyer-supplier relationships across four time periods. We conclude by discussing the reviews implications research and practice.

METHODOLOGY

In order to answer our research questions, we reviewed a small number of prominent U.S.-based academic journals that met two criteria: (1) publish predominantly pre·dom·i·nant  
adj.
1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant.

2.
 empirical papers and (2) include buyer-supplier relationships as an area of interest. We subsequently focused exclusively on journals whose primary domain included purchasing, operations management Operations management is an area of business that is concerned with the production of goods and services, and involves the responsibility of ensuring that business operations are efficient and effective.  and management. The purchasing link was an obvious choice; the operations management journals were likely candidates because manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. , especially, use inputs purchased from suppliers. The management journals were included because of their growing focus on cooperative strategies and strategic alliances. Thus, we chose the Journal of Supply Chain Management (JSCM JSCM Joint Service Commendation Medal
JSCM Jackpot Source Code Metrics
), previously known as the International Journal of Purchasing and Materials Management Materials management is the branch of logistics that deals with the tangible components of a supply chain. Specifically, this covers the acquisition of spare parts and replacements, quality control of purchasing and ordering such parts, and the standards involved in ordering, , because it had focused primarily on the purchasing function and suppliers since its inception in 1964. We also chose the Journal of Operations Management (JOM JOM Journal of the Minerals, Metals & Materials Society
JOM Journal of Morphology
JOM Johnson O'Malley Program (Bureau of Indian Affairs)
JOM Journal of Orthomolecular Medicine
JOM Japanese Offshore Market
), the Academy of Management Journal (AMJ AMJ Academy of Management Journal
AMJ American Muslims for Jerusalem
AMJ Advisory Material Joint
AMJ Ahmadiyya Muslim Jamaat
AMJ Ahmadiyya Muslim Jama'at
) and Strategic Management Journal (SMJ SMJ Southern Medical Journal
SMJ Strategic Management Journal
SMJ Saber Marionette J (WinAMP skin)
SMJ subject matter jurisdiction
SMJ Summary Judgment (legal term)
SMJ Saudi Medical Journal
), because they are considered high-quality academic publications and contain a growing number of publications focused on buyer-supplier relationships.

We did not conduct a meta-analysis meta-analysis /meta-anal·y·sis/ (met?ah-ah-nal´i-sis) a systematic method that takes data from a number of independent studies and integrates them using statistical analysis.  for two reasons. First, our research questions focused on what scholars have studied over the past two decades regarding buyer-supplier relationships and related value extraction, not on what they found. We want to evaluate the presence or absence of something, in contrast to measuring the degree to which something is present or related to something else. Thus, a qualitative approach is more appropriate (Kirk and Miller 1986). Our goal is not to confirm relationships between predetermined pre·de·ter·mine  
v. pre·de·ter·mined, pre·de·ter·min·ing, pre·de·ter·mines

v.tr.
1. To determine, decide, or establish in advance:
 constructs or to quantify Quantify - A performance analysis tool from Pure Software.  effect sizes between these constructs. Second, we want to be comprehensive in our review of the articles included in these four journals regardless of the sample size and problems with missing data. In contrast, meta-analyses are often noncomprehensive because many references must be dropped due to small sample sizes and missing data. Missing data are typically the result of the sparse sparse - A sparse matrix (or vector, or array) is one in which most of the elements are zero. If storage space is more important than access speed, it may be preferable to store a sparse matrix as a list of (index, value) pairs or use some kind of hash scheme or associative memory.  reporting of statistics (missing effect sizes), and missing data related to study characteristics that result from incomplete detailed descriptions (Hedges 1986). Moreover, in meta-analyses, the missing data are often nonrandom Adj. 1. nonrandom - not random
random - lacking any definite plan or order or purpose; governed by or depending on chance; "a random choice"; "bombs fell at random"; "random movements"
 because researchers have a tendency to report mostly significant relationships, thus introducing biases (Hedges 1986).

We conducted an exploratory study using a qualitative approach based on an iterative it·er·a·tive  
adj.
1. Characterized by or involving repetition, recurrence, reiteration, or repetitiousness.

2. Grammar Frequentative.

Noun 1.
 evaluation of the publications under review (Miles and Huberman Huberman is a surname and may refer to:
  • Bronisław Huberman
  • Leo Huberman


This page or section lists people with the surname Huberman.
 1984). A six-step review process was used. First, the authors determined the selection criteria for inclusion in the study: To be included an article had (1) to appear in an issue of these four journals between 1986 and 2005, (2) be an empirical study and (3) to investigate the relationship between industrial buying firms and their suppliers. Three authors reviewed the four journals using these criteria and selected those considered appropriate. If the decision was not straightforward, they sought advice from other authors as to whether it should be included. Only if the authors could agree was the article included. This standardized method of selection allowed us to assure the quality of the studies included (i.e., high-quality journals), be inclusive in our selection (i.e., all empirical publications), yet consistent in our choices, strengthening objectivity and face validity face validity (fāsˑ v·liˑ·di·tē),
n
. Our final sample consisted of 85 articles from JSCM, 30 from JOM, seven from AMJ and 29 from SMJ, for a total of 151 articles.

The second step of the review process involved reviewing each article and creating a summary report where a description of each study and the independent and dependent variables under investigation were recorded. The exercise was relatively straightforward as empirical studies typically must very clearly name and define the variables they test, strengthening the validity of the summary data. Three authors wrote the summaries for the journals they had reviewed and if there was any question as to the variables being recorded, we discussed it with another of the authors. Then the first author compiled the summary data. This step resulted in a table that exceeded 17 pages, which was used for further analysis and later simplified for reporting purposes in Appendix A.

Miles and Huberman (1984) suggest that qualitative researchers conduct analysis during data collection and cycle back and forth between thinking about the existing data and generating strategies for collecting new data. They argue that the ideal model for data collection and analysis is one that interweaves the two processes from the beginning. Thus, in the third step, we reviewed the summary data, discussed the changes we saw in the "patterns" of variables included in the publications over the study period and came to a consensus of what we thought we saw. We saw a change over time in what appeared to be four types of value extraction present in a majority of the studies reviewed: operational performance improvements, integration-based improvements, supplier capability-based improvements and financial performance outcomes. We also observed changes in at least two types of buyer mechanisms commonly used: buyer practices and buyer-supplier mutual efforts. Using these six categories or "meta codes" (Miles and Huberman 1984) and their related study variables, we constructed a preliminary framework that illustrated the theoretical relationship of these meta constructs, which were modified and enhanced after further data collection.

In the fourth step, the variables considered in the various articles underwent content analysis (Weber 1985). The first author reviewed each article summary for the sake of consistency, recorded the variable names investigated and evaluated each for similarities or differences from other variable names previously recorded from prior articles reviewed. If there were questions as to whether this was a new variable or simply a different name for a variable already noted, he looked at how it was defined and measured in the articles and discussed any ambiguities with a coauthor co·au·thor or co-au·thor  
n.
A collaborating or joint author.

tr.v. co·au·thored, co·au·thor·ing, co·au·thors
To be a collaborating or joint author of: "He and a colleague . . .
 known to have expertise in this research area before completing the content analysis. Once the coding definitions were finalized See finalization.  using this method, he reviewed each article again for each unique variable to see how many times each variable was studied and also recorded how many articles included one or more variables (first-level codes) classified within each category revealed in step two above (meta codes) in each year across the four journals. Although the coding done in this step was not double coded, weakening the reliability of the coding, we argue that the data have been consistently coded and, given the involvement and participation of coauthors in this and previous steps, there is strong face and construct validity construct validity,
n the degree to which an experimentally-determined definition matches the theoretical definition.
 (Weber 1985).

The fifth step of the review process was to take the data collected thus far and graphically present it to determine logical time periods over the past 20 years. The time periods revealed were used to aggregate the data into meaningful descriptive statistics descriptive statistics

see statistics.
. In order to identify trends in the longitudinal lon·gi·tu·di·nal
adj.
Running in the direction of the long axis of the body or any of its parts.
 evolution of the way researchers have studied how buying firms derived value from supplier relationships, we plotted the number of studies that had investigated each of the four types of value extraction into a histogram. The use of a histogram as a visual tool allowed us to identify four main time periods associated with buyer-supplier research in the last 20 years (Figure 1). In qualitative research Qualitative research

Traditional analysis of firm-specific prospects for future earnings. It may be based on data collected by the analysts, there is no formal quantitative framework used to generate projections.
, techniques for drawing conclusions include counting, noting patterns and clustering, among others (Miles and Huberman 1984). The histogram combines each of these tactics for generating meaning. Using the time periods suggested by the histogram, we were able to aggregate the data coded in step four into Table I to present more meaningful descriptive statistics. While the use of histograms and tables of aggregated data can be perceived as subjective, they are common in qualitative research. Moreover, the small sample sizes in each time period and lack of independence between the variables made statistical testing challenging, even with nonparametric nonparametric

said of statistical techniques which do not depend on the data having a normal or some other definable distribution.
 methods.

The sixth and final step of the review process was to note the trends in the variables content coded in each period in Table I and create figures using the framework developed in step three to capture the variables of interest for each of the four time periods identified in step five. In order to structure the discussion of our findings, we decided to follow the four time periods sequentially: 1986-91, 1992-95, 1996-2000 and 2001-05. The following four sections delve more deeply into the literature and illustrate the changes that have taken place in buyer-supplier relationship research over the past 20 years. Although the following discussion reports the articles and variables found in our review of the selected journals, we also cite other literature as appropriate in our discussion to provide further support for our findings. The reader should also note that due to the time lag inherent in the research process of data gathering, article writing and the publishing cycle, academic reporting often lags practice by at least 2 years. Thus, some buying firms can be expected to have moved more quickly than our report on research publications might suggest. In each time period we report the review results related to our two research questions. How have academic studies of buying firms' efforts to maximize the value they derive from their relationships with suppliers changed over the last 20 years? What mechanisms and/or investments were commonly investigated as sources or causes of this extracted value?

[FIGURE 1 OMITTED]

BUYER-SUPPLIER RELATIONSHIPS CIRCA 1986-91

A review of the 17 articles published in these four journals between 1986 and 1991 revealed the primary variables of interest to researchers during this time. In Figure 2, we depict de·pict  
tr.v. de·pict·ed, de·pict·ing, de·picts
1. To represent in a picture or sculpture.

2. To represent in words; describe. See Synonyms at represent.
 the status of the buyer-supplier relationships circa 1986-91 and the variables of interest in the research reported.

Derived Value Sought

Profitability outcomes, such as return on sales Return on sales

A measurement of operational efficiency equalingnet pre-tax profits divided by net sales expressed as a percentage.


return on sales

The portion of each dollar of sales that a firm is able to turn into income.
 or stock price, were investigated in only one study (Cowley Cow·ley   , Abraham 1618-1667.

English metaphysical poet whose works include Davideis (1656), an epic on the life of King David.
 1988), allowing us to conclude that studies on buyer financial performance were not very representative of this time period. In contrast, 10 studies focused on operational performance-based value extracted from the buyer-supplier relationships, such as quality, cost, delivery, inventor INVENTOR. One who invents or finds out something.
     2. The patent laws of the United States authorize a patent to be issued to the original inventor; if the invention is suggested by another, he is not the inventor within the meaning of those laws; but in that
 and/or speed. More precisely, quality and cost were considered in six and five studies, respectively, delivery in five studies, inventory costs or inventory levels in four studies and variables associated with speed/lead-time in one study. Thus, it is apparent that researchers between 1986 and 1991 focused primarily on operational performance value goals. During this time period, however, we begin to see an interest in integration-based value. For example, we find that three studies considered at least one variable that could be considered to have integration-based value. Two looked at improved cooperation as a result of partners' practices, including Just-In-Time (JIT JIT - dynamic translation ) implementation (Celley, Clegg, Smith and Vonderembse 1986), joint problem solving problem solving

Process involved in finding a solution to a problem. Many animals routinely solve problems of locomotion, food finding, and shelter through trial and error.
 and information exchange (Landeros and Monczka 1989). One looked at effects of cooperation on risk management and operational performance (Spekman 1991).

Buyers' Practices

Economics has historically explored principles related to supply and demand across industries and contract law has sought to help participants protect their own interests in contracted market exchange relationships. However, U.S. manufacturing firms began in the 1980s to move away from short-term contracting with numerous suppliers (i.e., arm's length relationships), which has historically been followed by greater commitment to longer term relationships with fewer suppliers (Lyons, Krachenberg and Henke 1990; Galt and Dale 1991). This shift was largely motivated mo·ti·vate  
tr.v. mo·ti·vat·ed, mo·ti·vat·ing, mo·ti·vates
To provide with an incentive; move to action; impel.



mo
 by the apparent quality gap between Japanese and U.S. manufacturers that still existed after U.S. manufacturers had significantly narrowed the cost gap (Richardson Richardson, city (1990 pop. 74,840), Dallas and Collins counties, N Tex., a suburb of Dallas; founded in the 1850s, inc. as a city 1956. Richardson manufactures telecommunications equipment, medical devices, supercomputers, computer chips, and fiber optics.  1993). As U.S. firms looked to Japan for a model of supplier relations they began to emulate em·u·late  
tr.v. em·u·lat·ed, em·u·lat·ing, em·u·lates
1. To strive to equal or excel, especially through imitation: an older pupil whose accomplishments and style I emulated.

2.
 key features of the Japanese model such as JIT. While contracting remained prevalent as a control mechanism in market transactions, long-term contracts created the potential for a higher level of commitment between buyers and their suppliers.

[FIGURE 2 OMITTED]

The variables of investigation prevalent during the 1986-91 era, as depicted in Figure 2, reflect this shift to JIT production in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , with five studies out of 17 published during this period focused on JIT implementation. JIT focuses on waste reduction by limiting the amount inventories and involves small product batches, balanced work flows, flexible workers and machines, and solving of problems previously masked A state of being disabled or cut off.  by larger lot sizes (Celley et al. 1986). In an empirical study of the automotive industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2006, more than 69 million motor vehicles, including cars and commercial vehicles were produced worldwide. , O'Neal (1987) found that the adoption of JIT by OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and  producers had resulted in a reduction of the number of suppliers, an increased intensity of interaction between the OEM firms and their suppliers, a reduction in the finished goods inventories of suppliers and an increase in the frequency of supplier deliveries. Lower levels of inventories also resulted in an increased importance placed on the quality of supplier inputs (Ansari and Modarress 1986).

Porter (1980) argued that industry performance is affected by the power of suppliers. Our review reflects the interest of researchers in the effects of power and dependence of buyers on suppliers with four out of 17 studies considering how power influences value creation. Porter's arguments suggested that a buyer will have power relative to its suppliers if there are many suppliers competing for the buyer's business. Thus, the move toward limiting the number of suppliers appears to be inconsistent with the efforts of firms to gain power relative to their suppliers. However, this move coincides with larger volume orders going to fewer suppliers, which made the buyers more important in the eyes of these suppliers. In sum, the popularity of Porter's model throughout the 1980s encouraged many companies to consider strengthening their basis of power relative to their suppliers. For example, Kraljic (1983) argued for the proactive use of power by buying firms as a leverage tool over suppliers.

Two studies in this era considered organizational economics variables. The Cowley (1988) study considers the effects of industry concentration, relative size, importance of buyer and supplier, and capacity utilization Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities, such as factories and machinery. Capacity Utilization generally rises when the economy is healthy and falls when demand softens.  on firms' return on sales and return on total capital. He found that, if favorable fa·vor·a·ble  
adj.
1. Advantageous; helpful: favorable winds.

2. Encouraging; propitious: a favorable diagnosis.

3.
, these variables' positive effects have a lasting influence over the entire product life cycle. In addition, the Sriram and Mummalaneni (1990) study found that when buyer alternatives in the supplier market were limited, buyer loyalty to a specific supplier increased regardless of transaction specific assets and durability of the relationship.

It should be noted, however, that efforts to gain power over suppliers by contracting with multiple sources or the development of a dependency dependency

In international relations, a weak state dominated by or under the jurisdiction of a more powerful state but not formally annexed by it. Examples include American Samoa (U.S.) and Greenland (Denmark).
 relationship can lead to negative effects when trying to implement JIT. Frazier Frazier, Joseph Known as "Joe." Born 1944.

American prizefighter who won the Olympic heavyweight title (1964) and held the world professional heavyweight title from 1970 to 1973.
, Spekman and O'Neal (1988, p. 60) noted that the "coercive co·er·cive  
adj.
Characterized by or inclined to coercion.



co·ercive·ly adv.
 use of power in interfirm relationships seriously weakens their collaborative nature." JIT required high quality of manufacturing inputs from suppliers, delivered frequently and on time. These requirements appear to have influenced buying firms to change from the coercive use of power by switching suppliers on the basis of price, to concentrating their purchase volumes with fewer suppliers to achieve some level of continuity and performance from suppliers (Hahn Hahn   , Otto 1879-1968.

German chemist. He won a 1944 Nobel Prize for his work on atomic fission.

Noun 1. Hahn - German chemist who was co-discoverer with Lise Meitner of nuclear fission (1879-1968)
Otto Hahn
, Kim Kim

orphan wanders streets of India with lama. [Br. Lit.: Kim]

See : Adventurousness
 and Kim 1986).

Other buyer organizational practices investigated during this time period included supplier evaluation Supplier evaluation is a term used in business and refers to the process of evaluating and approving potential suppliers by factual and measurable assesment. The purpose of supplier evaluation is to ensure a portfolio of best in class suppliers is available for use. , contractual clauses, supplier selection, supply base reduction and supplier development. Giunipero (1990) found supplier evaluation to be a key feedback mechanism used by firms that have implemented JIT to improve their operational performance. Articles that included contractual components focused primarily on the length of the contracts (Cusumano Cusumano is a Sicilian surname. Variant spellings include "Cusimano" and "Cusamano" (A variation found in Western Sicily). Cusumano is the spelling used in western Sicily and "Cosimano" is found in eastern Sicily.  and Takeishi 1991; Galt and Dale 1991). Galt and Dale (1991) reported considerable variation in contracts among buying firms and suppliers in their study of firms in the United Kingdom, from no contract to those ranging as long as 5 years. Limited research in the areas of supplier selection, supply base reduction and supplier development suggests an initial interest in these topics.

Buyer-Supplier Mutual Efforts

The mutual efforts by buying firms and their suppliers considered in research during the late 1980s emphasized efforts to improve communication and information sharing See data conferencing. . Parallel communication systems with multiple departments provided significant supplier quality improvement according to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 the Carter (1986) study, and Lascelles and Dale (1989) found that poor communication resulted in failure to achieve supplier quality improvements. A study by Giunipero and Keiser (1987) reported that JIT resulted in improved buyer-supplier communication, while Giunipero (1990) found that effective communication improved JIT activities. Studies by Newman and Rhee Rhee   , Syngman 1875-1965.

Korean politician who became president of South Korea in 1948. His dictatorial rule ended in 1960, when he was forced out of office and into exile.
 (1990) and Galt and Dale (1991) argued that effective communication and information exchange lead to supplier performance improvements while Landeros and Monczka (1989) suggested it leads to cooperative buyer-supplier relationships. Finally, Sriram and Mummalaneni (1990) found that specific investments by either buyer or supplier had potentially positive effects on buyer's loyalty to supplier but that this result was largely industry dependent.

BUYER-SUPPLIER RELATIONSHIPS CIRCA 1992-95

The number of papers published on buyer-supplier relationships in the four journals of interest is more substantial from 1992-95 than from 1986-91, with 17 papers published in 6 years compared with 28 papers published in 4 years, respectively. While operational performance was still a value of interest, a higher percentage of the studies during this second period investigated integration-based value creation (e.g., Heide Heide (hī`də), town (1994 pop. 20,740), Schleswig-Holstein, N central Germany, in the center of the Dithmarschen oil fields. A trade center, it has one of the largest market squares in Germany, with particular emphasis being on cattle trade.  and Miner 1992; Stuart and Mueller 1994; Ellram 1995). Figure 3 summarizes the important factors influencing buyer-supplier relationships as reflected in the research published during this time period.

Derived Value Sought

Once again, the empirical evidence from the articles published between 1992 and 1995 revealed very little focus on buyers' financial performance, but a continued interest in operational performance-based and integration-based value. In fact, only one article investigated the effect of buyer-supplier relationships on buying firms' financial performance. These results suggest that the research during this time, and potentially the buying firms studied, were focused on long-term investments in addition to short-term financial success. Performance-based studies still focused quality, cost, delivery and speed (e.g., Watts Watts, residential section of south central Los Angeles. Named after C. H. Watts, a Pasadena realtor, the section became part of Los Angeles in 1926. Artist Simon Rodia's celebrated Watts Towers are there.  and Hahn 1993). Particularly, research investigated the factors that contribute to improve suppliers' quality performance, including JIT implementation (e.g., Dion, Banting, Picard Pi·card   , Jean 1620-1682.

French cleric and astronomer who made an accurate measurement of a degree of meridian and subsequently calculated the circumference of the earth (1668-1670).
 and Blenkhorn 1992; Richeson, Lackey and Starner 1995), information sharing (e.g., Carter 1986) and partnership longevity (e.g., Graham, Daugherty Daugherty can refer to: People
  • Billy Joe Daugherty, pastor
  • Brad Daugherty (basketball) player
  • Brad Daugherty (poker player)
  • Chris Daugherty, reality television show winner
  • Christi Daugherty, journalist
  • Derri Daugherty, musician
 and Dudley Dudley, city (1991 pop. 186,513) and metropolitan district, W central England. Dudley's famed iron, coal, and limestone industries began declining c.1870. Other industries include engineering works, steelworks, metallurgy, glass cutting, textiles, and leatherworking.  1994). A much higher proportion of the value extraction variables considered during this period were integration based relative to the previous period, primarily focused on improved cooperation or collaboration Working together on a project. See collaborative software. . The bulk of integration-based publications investigated the practices that tend to promote buyer-supplier collaboration. The results suggest that the practices that are conducive con·du·cive  
adj.
Tending to cause or bring about; contributive: working conditions not conducive to productivity. See Synonyms at favorable.
 of collaboration include supply base reduction (Presutti 1992), information sharing (Pilling and Zhang 1992), equitable equitable adj. 1) just, based on fairness and not legal technicalities. 2) refers to positive remedies (orders to do something, not money damages) employed by the courts to solve disputes or give relief. (See: equity)


EQUITABLE.
 treatment (Pilling and Zhang 1992), relationship extendedness (Heide and Miner 1992) and Electronic Data Interchange See EDI.

(application, communications) electronic data interchange - (EDI) The exchange of standardised document forms between computer systems for business use. EDI is part of electronic commerce.
 (EDI (Electronic Data Interchange) The electronic communication of business transactions, such as orders, confirmations and invoices, between organizations. Third parties provide EDI services that enable organizations with different equipment to connect. ) adoption (Sriram and Banerjee Banerjee (anglicized from Bandyopadhyay) is a prevalent brahmin surname in the Bengal region of India. Banerjees are kulin brahmins, the highest class in Bengal (along with Mukherjees, Chatterjees, Gangulis, and Ghoshals).  1994). In a similar vein, Ellram (1995) identified poor communication as the single largest contributor to partnership failure, followed by other factors such as the lack of shared goals, the lack of supplier commitment and ineffective conflict resolution. Buyers' risk-taking behavior was also studied by Presutti (1992), who noted that a minority of U.S. firms pursue a single sourcing policy to avoid the risk of being overly dependent on one supplier. In contrast, Hines (1995) reported that Japanese firms were not relying as much on single sourcing as commonly reported but that they relied instead on a reduced supply base organized in a network. He reported that this supplier network approach mitigated mit·i·gate  
v. mit·i·gat·ed, mit·i·gat·ing, mit·i·gates

v.tr.
To moderate (a quality or condition) in force or intensity; alleviate. See Synonyms at relieve.

v.intr.
To become milder.
 the risk associated with single sourcing. The value of buyer-supplier coordination was also noted in two studies who reported a positive impact on dyadic Two. Refers to two components being used.

(programming) dyadic - binary (describing an operator).

Compare monadic.
 sales (Mohr and Spekman 1994) and on the successful adoption of process innovation (Ettlie and Reza 1992). Two studies out of 28 considered capability-based value, one global capability (Birou and Fawcett Fawcett may refer to: People
  • Fawcett, Andrew, nobel prize winning physicist and teacher
  • Fawcett, Bill, mystery writer
  • Fawcett, Brian (born 1944), Canadian poet and novelist
  • Fawcett, Charles, British historian
 1994) and the other continuous quality improvement (Stuart and Mueller 1994), thus suggesting the beginning of what would become a major focus in later periods.

During this time period, the popular press emphasized the importance of the purchasing function to maximizing profits. Fortune magazine touted purchasing as a new fast-track job that could "add millions to the bottom line" by consolidating purchases with a few suppliers with which partnerships were formed (Tully Tully: see Cicero.  1995, p. 75). An earlier Fortune article also noted that both parties benefit when buyer-supplier relationships are cooperative rather than adversarial ad·ver·sar·i·al  
adj.
Relating to or characteristic of an adversary; involving antagonistic elements: "the chasm between management and labor in this country, an often needlessly adversarial . . .
 (Magnet magnet: see electromagnet; magnetism.
magnet

Any material capable of attracting iron and producing a magnetic field outside itself. By the end of the 19th century, all known elements and many compounds had been tested for magnetism, and all were
 1994). Prominent companies such as Allied Signal, Honda honda

a quick release metal eyelet for the end of a lariat. When the restrained animal is no longer required it is not necessary to slacken off the loop and pull it over the head—a very great advantage when working with wild cattle or unbroken horses.
 of America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name.  and Motorola (Motorola, Inc., Schaumburg, IL, www.motorola.com) A leading manufacturer of semiconductor devices, electronics, telecommunications and satellite systems. Founded in Chicago in 1928 by Paul V.  were cited as engaging in close customer-supplier relationships to "help trim costs" for both parties (Magnet 1994). Suppliers were described as sharing their company's cost structures with their customers. Popular press articles argued that alignment of the two parties' values and cultures was an important antecedent ANTECEDENT. Something that goes before. In the construction of laws, agreements, and the like, reference is always to be made to the last antecedent; ad proximun antecedens fiat relatio.  to a partnership, and some partnerships were formed without formal contracts. For example, a supplier to Honda of America built a new plant dedicated to manufacturing parts for Honda without signing a contract (Magnet 1994).

[FIGURE 3 OMITTED]

Buyers' Practices

A review of the literature published between 1992 and 1995 reveals a consistent number of studies that considered buyer practices relative to the earlier period, but a drop in the percentage of studies. Practices that were most commonly studied during this time were JIT, supplier power and supply base reduction, all building on previous research interest. As in the prior time period, the studies on JIT tended to investigate the influence of JIT practices on operational performance indicators (e.g., Dion et al. 1992; Richeson et al. 1995) but Handfield (1993a) also concluded that supply base reduction is a good predictor of the extent to which JIT purchasing was being used. Three studies considered supply power. For example, Holland, Lockett and Blackman (1992) found that buyer power influenced suppliers to invest in EDI systems. However, Stuart and McCutcheon The name McCutcheon or MacCutcheon may refer to: People
  • Malcolm Wallace McCutcheon (1906-1969), a Canadian politician
  • Bill McCutcheon (1924-2002), American actor
  • John T. McCutcheon (1870-1949), American political cartoonist
  • Martine McCutcheon (b.
 (1995) found no relationship between power and the likelihood of a "win-win" relationship between buying firms and suppliers (p. 7). The three studies on supply base reduction identified a positive effect of supply-base reduction on lead-time reduction (Handfield 1993a), JIT adoption (Handfield 1993b) and depth of the buyer-supplier relationship (Presutti 1992).

Studies also considered supplier evaluation, supplier selection and supplier development, topics that appeared in the earlier period. Watts and Hahn (1993) found that 75 percent of their survey respondents In the context of marketing research, a representative sample drawn from a larger population of people from whom information is collected and used to develop or confirm marketing strategy.  regularly evaluated suppliers, but of those, only 46 percent had formal evaluation systems in place. According to Giunipero and Brewer (1993) firms that utilized supplier evaluation and supplier selection during this time period may have experienced superior supplier performance. Another paper by Wilson Wilson, city (1990 pop. 36,930), seat of Wilson co., E N.C., in a rich agricultural region; inc. 1849. It is a commercial and industrial center with a large tobacco market. Manufactures include textile goods (especially clothing), metal products, and processed foods.  (1994) studied supplier selection and determined that quality was the number one criteria for a buyer, followed by cost. Finally, Watts and Hahn (1993) investigated supplier development practices and found that it was more prevalent than generally believed or reported, but that firm size was positively correlated cor·re·late  
v. cor·re·lat·ed, cor·re·lat·ing, cor·re·lates

v.tr.
1. To put or bring into causal, complementary, parallel, or reciprocal relation.

2.
 with the likelihood of implementing a supplier development program. The main goal of supplier development reported by buyers was product improvement.

Buyer-Supplier Mutual Efforts

Among the mechanisms used by both buyers and suppliers to increase the value derived from their relationships, communication and shared information are still a prominent focus of researchers during the 1991-95 period. For instance, Mohr and Spekman (1994) and Ellram (1995) found information sharing to be a good predictor of partnership success, while Handfield (1993b) identified information sharing as an antecedent to supply base reduction and to JIT purchasing. Mohr and Spekman (1994) empirically determined that communication quality, in terms of accuracy, timeliness, adequacy and credibility of information exchanged, is a strong predictor of partnership success, which was also indirectly confirmed by Ellram (1995) who identified poor communication as the single largest contributor to a partnership failure.

EDI is a means of information sharing that necessitates a coordinated effort of both buyer and supplier and trust is argued to be important to willingness to invest in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding.

See also: Spite
 the risk for opportunism Opportunism
Arabella, Lady

squire’s wife matchmakes with money in mind. [Br. Lit.: Doctor Thorne]

Ashkenazi, Simcha

shrewdly and unscrupulously becomes merchant prince. [Yiddish Lit.
. Two articles tackled the issue of EDI implementation and determined that buyer power, the type of product and the nature of the transaction were important considerations in influencing suppliers to adopt EDI (Holland et al. 1992), and that EDI adoption tended to promote long-term buyer-supplier relationships. Evidently, EDI implementation exposes suppliers more than buyers to risk, given the high degree of asset specificity Asset specificity is a term related to the inter-party relationships of a transaction. It has been extensively studied in a variety of management and economics areas such as marketing, accounting, organizational behavior and management information systems.  of the investment, which is associated with an increased dependence and risk of opportunistic opportunistic /op·por·tu·nis·tic/ (op?er-tldbomacn-is´tik)
1. denoting a microorganism which does not ordinarily cause disease but becomes pathogenic under certain circumstances.

2.
 behavior by buyers. The first study on trust (Mohr and Spekman 1994) appeared during this period, which is a topic that would quickly capture the focus of many researchers.

In summary, for the articles that appeared during 1992-95 in the four journals reviewed, operational performance remained an important value of interest, but integration-based values became much more prevalent than in the earlier period. Buyers' practices continue to be considered important variables of interest, although considerations of mutual efforts by buyers and suppliers became more prevalent. Furthermore, studies during this time suggest that researchers recognized that the characteristics of the market, characteristics of the buying firm and characteristics of products purchased moderate the relationship between mechanisms used to derive value from the buyer-supplier relationship and the value actually attained at·tain  
v. at·tained, at·tain·ing, at·tains

v.tr.
1. To gain as an objective; achieve: attain a diploma by hard work.

2.
.

BUYER-SUPPLIER RELATIONSHIPS CIRCA 1996-2000

Figure 4 depicts buyer-supplier relationships during the time period of 1996-2000. During this period the number of papers published on buyer-supplier relationships in the four journals reviewed increased to 39. Publications during this period evidenced a stronger theoretical base than prior periods, and incorporated a wider variety of theoretic perspectives, including transaction cost economics (e.g., Dyer 1996, 1997; Krause 1999; Kaufman, Wood and Theyel 2000), organizational learning (e.g., Dyer and Nobeoka Nobeoka (nōbāō`kä), city (1990 pop. 130,624), Miyazaki prefecture, E Kyushu, Japan, on the mouth of the Gokase River. It is a commercial and fishing port and a production center for chemicals, foodstuffs, and textiles.  2000; Kale kale, borecole (bôr`kōl), and collards, common names for nonheading, hardy types of cabbage (var. , Singh For the fictional global crime syndicate, see .
Singh is a Sanskrit word meaning "lion". It is used as a common surname and middle name in North India by many communities, especially by the Sikhs and the Rajputs.
 and Perlmutter 2000), agency theory (e.g., Lassar and Kerr Kerr   , Walter 1913-1996.

American playwright, writer, and drama critic for the New York Herald-Tribune (1951-1966) and the New York Times (1983-1996). In 1978 he won a Pulitzer Prize for criticism.
 1996), resource-based view The resource-based view (RBV) is an economic tool used to determine the strategic resources available to a firm. The fundamental principle of the RBV is that the basis for a competitive advantage of a firm lies primarily in the application of the bundle of valuable resources at the  (e.g., Combs and Ketchen 1999), relational theory …:This article is about relational theory in physics and philosophy. There is a separate article about the relational model and Relational Philosophy as a category of Philosophical anthropology

In physics and philosophy, a relational theory
 (e.g., Dyer and Nobeoka 2000; Kale et al. 2000), conflict theory (e.g., Kale et al. 2000), exchange theory (e.g., Holm holm  
n. Chiefly British
An island in a river.



[Middle English, from Old Norse h
, Eriksson The surname Eriksson (also spelled Erikson or Ericsson) is a historically famous Scandinavian appellation. The most famous bearer of this name was Erik the Red, father of Leif Erikson, who found the Americas before Christopher Columbus's supposed discovery; though  and Johanson 1999), game theory (e.g., Cool and Henderson Henderson.

1 City (1990 pop. 25,945), seat of Henderson co., NW Ky., on the Ohio River, in an oil, coal, tobacco, corn, and livestock area; founded 1797, inc. as a city 1867.
 1998; Mudambi and Helper 1998) and resource dependency (e.g., Cool and Henderson 1998).

Derived Value Sought

The types of value creation under consideration during this third period had some similarities with those of the previous periods but also some major differences. Unlike previous periods, financial performance became more prominent in considerations of value extraction, with 15 percent of the studies conducted considering financial performance and a greater variety of financial outcomes (Table I and Figure 4). While still prevalent, studies of operational performance-based goals represented a lower percentage of the total publications during this period than they had previously. While fewer considered quality and cost, researchers continued to consider delivery and lead-time reduction (e.g., Hendrick Hendrick, c.1680–1755, chief of the Mohawks. He was known also as Tiyanoga. He became a Christian and was an ally of the British. He represented his people at the Albany Congress (1754). , Carter and Siferd 1996), as well as new variables such as agility or responsiveness (Meier, Humphreys and Williams 1998) and flexibility (Zaheer Zaheer is a given name, and may refer to:
  • Zaheer Abbas, a Pakistani cricketer
  • Zaheer Khan, an Indian cricketer.

This page or section lists people with the given name Zaheer.
, McEvily and Perrone 1998). The focus on integration also continued to grow (19 articles total) by focusing on the factors that improve cooperation, collaboration and partnership (e.g., Krause 1997; Moore Moore, city (1990 pop. 40,761), Cleveland co., central Okla., a suburb of Oklahoma City; inc. 1887. Its manufactures include lightning- and surge-protection equipment, packaging for foods, and auto parts.  1998; Combs and Ketchen 1999; Kaufman et al. 2000) or, to a lesser extent, on the performance improvements resulting from integrative practices (e.g., Holm et al. 1999). A limited number of studies considered risk reduction, coordination of activities and knowledge transfer.

However, our review also suggests 1996 through 2000 was an increasingly competitive time period that resulted in new demands by buying firms on their suppliers. These demands are reflected in published research that considered capability-based goals such as achieving availability of suppliers' parts at multiple locations across the globe, new product or technology development, the ability to continuously improve, technology acquisition and environmental capabilities. Three studies looked at continuous improvement (Forker 1997; Koufteros, Vonderembse and Doll doll, small figure of a human being, usually used as a child's toy. The many types of dolls found among the relics of primitive peoples were cult objects. Egypt, Greece, and Rome have left well-preserved dolls of wood, clay, bone, ivory, and bronze that were used  1998; Krause, Handfield and Scannell Scannell may refer to:
  • Herb Scannell
  • John J. Scannell
  • Ronan Scannell
  • Susan Scannell
  • Tony Scannell
  • Vernon Scannell

This page or section lists people with the surname Scannell.
 1998) and two considered technology acquisition from suppliers (Hartley, Zirger and Kamath 1997; Kaufman et al. 2000). McGinnis and Vallopra (1999) found a significant relationship between involvement of purchasing and supplier personnel during new product development (NPD NPD New Product Development
NPD Nouveau Parti Démocratique (Canada)
NPD Narcissistic Personality Disorder
NPD Norwegian Petroleum Directorate
NPD Nationaldemokratische Partei Deutschlands
) and new product success. Bozarth, Handfield and Das See direct attached storage and FDDI.

DAS - Digital Analog Simulator.

Represents analog computer design.
 (1998) reported that many U.S. firms were purchasing internationally in order to achieve lower costs and higher quality, but were lagging Lagging

Strategy used by a firm to stall payments, normally in response to exchange rate projections.
 in their attempts to integrate these sources from a strategic standpoint The Standpoint is a newspaper published in the British Virgin Islands. It was originally published under the name Pennysaver, largely as a shopping-coupon promotional newspaper, but since emerged as one of the most influential sources of journalism in the . Thus, we find an increased interest in capability-based value extraction in the published research during this period.

[FIGURE 4 OMITTED]

Buyers' Practices

While studies that considered buyers' practices were still important, they represented a lower percentage of the studies published between 1996 and 2000 than in prior periods. Furthermore, there was a shift away from studies on JIT and more focus on supplier evaluation. Five studies considered the effects of supplier evaluation on value creation, suggesting an increased interest in the buyer practice. Supplier evaluation processes are often part of a formal program set forth by the buying firm to manage external suppliers. From a practical perspective, supplier evaluation efforts by buying firms represent in-depth evaluations of suppliers' performance (Giunipero 1990). An important part of the assessment process includes providing evaluative feedback to suppliers. The feedback serves to clarify the buying firm's expectations and provide the supplier with directions for improvement (Choi Choi may refer to:
  • Choi, a Cantonese romanisation of Cai, a Chinese surname. (See Transliteration and romanization of Cai)
  • Choi, a Korean surname.
  • CHOI-FM, a radio station in Quebec City, Canada.
 and Hartley 1996). Finally, the assessment and feedback process also incorporates the competitive forces of the market, in that a buying firm will advise the supplier of its performance compared with its competitors, and provide encouragement so it improves its performance (Krause, Scannell and Calantone 2000). A study by Forker, Ruch and Hershauer (1999) found that buyers were more inclined than suppliers to believe in their supplier rating Supplier rating (or vendor rating as it sometimes referred) is a business term used to describe the process of measuring an organizations supplier capabilities and performance.

Supplier rating often forms part of an organizations supplier relationship management program.
 system. Despite this evidence of supplier skepticism skepticism (skĕp`tĭsĭzəm) [Gr.,=to reflect], philosophic position holding that the possibility of knowledge is limited either because of the limitations of the mind or because of the inaccessibility of its object. , several studies have identified performance improvements associated with the use of supplier evaluation programs including lead-time (Hendrick et al. 1996), environmental responsibility (Walton, Handfield and Melnyk 1998) and ROI (Return On Investment) The monetary benefits derived from having spent money on developing or revising a system. In the IT world, there are more ways to compute ROI than Carter has liver pills (and for those of you who never heard of that expression, it means a lot).  (Germain and Droge 1998).

During this time period, three studies considered power and three studies focused on supplier development. The three studies on power were particularly interested in the effect of power or dependence on various aspects of performance. For example, evidence gathered in these studies suggests that the higher a supplier's dependence on a buyer the more negative the impact on the customer's quality performance (Forker 1997), and on the supplier's profitability (Cool and Henderson 1998), but that mutual dependence had a positive effect on the buyer's profitability (Holm et al. 1999). The three articles on supplier development investigated the factors that promote supplier development activities (Krause 1999), the performance outcomes of supplier development (Krause 1997) and identified two types of supplier development approaches: the strategic approach and the reactive approach (Krause et al. 1998).

Interest in contractual clauses surfaced again, after no studies on the topic in the second period reviewed, and three new practices that had not previously been considered emerged: supplier certification, supplier training and visits to the supplier. The main emphasis of these studies was to investigate the effects of these practices on suppliers' performance (e.g., Forker et al. 1999) and on buying firms' performance (e.g., Germain and Droge 1998; Tan TAN

See tax anticipation note (TAN).
, Kannan and Handfield 1998).

Buyer-Supplier Mutual Efforts

Our review revealed a major increase in the interest in buyer-supplier mutual efforts between 1996 and 2000 (Table I). Communication and information sharing continued to attract the attention of researchers, but studies that included trust greatly increased. Several studies on communication and information sharing identified a positive influence on buyer-supplier relationships and partnerships (e.g., Ellram and Edis 1996; Moore 1998). Furthermore, communication was found to reduce NPD delays (Hartley, Zirger and Kamath 1997) and improve supplier quality performance (Forker et al. 1999), while information sharing improved buying firm's performance (Germain and Droge 1998; Tan et al. 1998). Interorganizational trust was found to be a strong predictor of performance (Zaheer et al. 1998). Empirical results suggested that trust plays an important role in achieving successful partnerships (Ellram and Edis 1996) and alliances (Whipple Whip·ple , George Hoyt 1878-1976.

American pathologist. He shared a 1934 Nobel Prize for discovering that a diet of liver relieves anemia.
 and Frankel 2000). This result is consistent with Hunter et al. (1996) who noted that the transition from combative com·bat·ive  
adj.
Eager or disposed to fight; belligerent. See Synonyms at argumentative.



com·bative·ly adv.
 to collaborative buyer-supplier relationships follows an evolutionary path that entails a trust building process. Commitment (Moore 1998), expectation of continuity (Krause et al. 1998) and cooperation (Ellram and Edis 1996) were among several trust-related factors that were found to be tied to collaboration between buyers and suppliers.

Other mutual efforts considered included relationship-specific investments, EDI adoption, knowledge sharing and integrated NPD. Specific investments relate to the investment of difficult-to-retrieve assets that are unique to a particular buyer-supplier relationship. Two articles by Dyer (1996, 1997) concluded that transaction costs do not necessarily increase with the level of specific investments in the buyer-supplier relationship. Dyer also reported that a high level of human asset specificity has a positive effect on quality and cycle time, while a high level of site specificity, manifested by a short physical distance between buyer and supplier, has a beneficial effect on inventory level. Marcussen (1996) found that EDI adoption strengthens the buyer-supplier relationship while Walton and Marucheck (1998) asserted that the benefits of EDI adoption are largely contingent upon Adj. 1. contingent upon - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress"
contingent on, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent
 the buyer's experience with EDI, the willingness of buyers and suppliers to share sensitive data and the level of integration of EDI with other computer applications.

Two new areas of investigation were knowledge sharing and integrated NPD. In particular, knowledge transfer was investigated in the context of supplier networks (e.g., Lorenzoni and Lipparini 1999; Dyer and Nobeoka 2000) and was found to have a positive effect on buyers' performance (Tan et al. 1998). The articles on suppliers' involvement in NPD also reported benefits of this practice, including an increase in NPD success (McGinnis and Vallopra 1999), a decrease in the number of delays (Hartley, Zirger and Kamath 1997) and collaboration between buyers and suppliers (McIvor and McHugh 2000).

BUYER-SUPPLIER RELATIONSHIPS CIRCA 2001-05

During the 2001-05 period, 67 articles on buyer-supplier relationships were published, which makes it the most prolific of the four periods identified in this paper in terms of number of articles. Thus, it is not surprising that the number of studies that investigated all four types of value extraction increased (Table I, Figure 5).

In the 2001-05 period researchers continued to draw from a diverse theoretical base with articles incorporating transaction cost theory (e.g., Lonsdale Lonsdale can refer to: People
  • Angela Lonsdale
  • Bruce Lonsdale
  • Corrine Lonsdale
  • David Lonsdale
  • Derrick Lonsdale
  • Earl of Lonsdale
  • Frederick Lonsdale
  • Gordon Arnold Lonsdale
  • Gordon Lonsdale
  • Harvey Lonsdale Elmes
 2001; Leiblein, Reuer and Dalsace 2002; Kwon Kwon is a Korean family name. List of famous Kwons
  • Kwon Sang-woo
  • Kwon Young-ghil
  • Gwon Yul
  • Kwon Boa
See also
  • List of Korean family names
  • Korean name
  • List of people of Korean descent
 and Suh 2004; McNally and Griffin 2004), agency theory (e.g., Zsidisin and Ellram 2003), game theory (e.g., Welling and Kamann 2001), contingency contingency n. an event that might not occur.  perspective (e.g., Claycomb and Frankwick 2004), resource-based theory (e.g., Leiblein and Miller 2003; Hult, Ketchen and Slater slat·er  
n.
1. One employed to lay slate surfaces, as on roofs.

2. See pill bug.

3. See sow bug.

Noun 1.
 2005) and organizational learning theory (e.g., Wagner and Buko 2005).

Perhaps the most striking change from the previous time period is the surge of articles investigating buying firms' financial performance. The bulk of these 15 articles attempted to determine the effects of various buyer-supplier integration practices on a buying firm's financial performance. Empirical results suggest that a buying firm's performance is positively affected by buyer-supplier integration in general (e.g., Ellram, Zsidisin, Siferd and Stanly 2002; Frohlich and Westbrook 2002; Narasimhan and Kim 2002; Rosenzweig, Roth and Dean 2003; Droge, Jayaram and Vickery 2004; Petersen, Ragatz and Monczka 2005) and more specifically by product development integration (e.g., Tracey 2004), collaborative planning (e.g., Petersen et al. 2005) and information systems integration (e.g., Vickery, Jayaram, Droge and Calantone 2003; Sanders San´ders

n. 1. An old name of sandalwood, now applied only to the red sandalwood. See under Sandalwood.
 2005). The range of financial performance indicators tested has also grown from the previous time period and includes such indicators as sales (e.g., [103] Rosenzweig et al. 2003; Tracey 2004; Petersen, Handfield and Ragatz 2005), return on equity (ROE A fictitious surname used for an unknown or anonymous person or for a hypothetical person in an illustration.

A lawsuit is generally named for the persons who are parties to it.
) (Petersen et al. 2005), total return to shareholders (Ellram et al. 2002) and net present value (NPV NPV

See: Net present value
) of the buying firm (Chen, Paulraj and Lado 2004). Overall, these results have important implications for practitioners because they highlight the importance of integration practices on the bottom line.

The study of operational performance-based value derived from the buyer-supplier relationship not only continued but almost doubled. Not only did the total number of publications on the topic increase but the percentage of the total increased from the prior period. Nineteen articles investigated operational performance improvements in such areas as cost (e.g., Dong, Carter and Dresner 2001), quality (e.g., Stanley Stanley, town (1991 pop. 1,557), capital of the Falkland Islands, S Atlantic Ocean, on East Falkland island. It is the main port and trading center of the islands. The name is sometimes written as Port Stanley.  and Wisner 2001; Tan 2002), cycle time (e.g., Elmuti 2002; Hult, Ketchen and Nichols 2002) and other performance dimensions previously studied in earlier time periods. However, it is also interesting to note that researchers have begun to investigate new contexts, including performance of first and second tiers suppliers (Park and Hartley 2002), customer service (Elmuti 2002) and buyer's logistics costs (Dong et al. 2001).

[FIGURE 5 OMITTED]

During this time period, the number of papers studying integration-based and capability-based value associated with buyer-supplier relationships also increased in number. The most apparent changes were in 2001 when six studies included capability-based variables and in 2005 when there was a surge in the number of articles dealing with buyer-supplier integration. In addition to the studies noted above that looked at financial performance, integration was conceptualized as supply chain integration or improved collaboration (Frohlich and Westbrook 2002; Vickery et al. 2003) and cooperation (e.g. Fredendall, Hopkins and Bhonsle 2005; Petersen et al. 2005). These articles overwhelmingly reported the positive effects of buyer-supplier integration practices, or the moderating effect of integration between purchasing practices and performance outcomes (e.g. Narasimhan and Das 2001). In the 2001-05 time period, several articles also reported the benefits for buyers to take advantage of suppliers' capabilities, for instance by incorporating suppliers' technology into new products (e.g., Leiblein et al. 2002; Nicholls-Nixon and Woo 2003). Nicholls-Nixon and Woo (2003) found evidence suggesting that firms could enhance their technical output (measured as the number of patents) by multiplying alliances with technically capable suppliers. However, Petersen et al. (2005) show that acquiring suppliers' technical capabilities is better achieved when buyer and supplier depend on well-defined and jointly agreed technical metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM.  and targets. Park, Hartley and Wilson's (2001) study suggests that suppliers that received the highest performance rating are suppliers with the strongest process improvement capabilities, but not those who emphasize conformance con·for·mance  
n.
Conformity.

Noun 1. conformance - correspondence in form or appearance
conformity

agreement, correspondence - compatibility of observations; "there was no agreement between theory and
 quality. Finally, McGinnis and Vallopra (2001) found that taking advantage of supplier process improvement capabilities is facilitated by a strong involvement of the purchasing function, and by making supplier involvement a high priority for the buying firm.

In the popular press during the same time period, buying firms were reported to be faced with a paradox paradox, statement that appears self-contradictory but actually has a basis in truth, e.g., Oscar Wilde's "Ignorance is like a delicate fruit; touch it and the bloom is gone.  in establishing cooperative relationships with suppliers: How do they structure the relationship so as to derive the greatest benefit from the cooperation and collaboration, while keeping the supplier competitive in terms of market price? The trade literature covered efforts by Daimler-Chrysler, Toyota and Nissan to cut supply costs (Dawson 2001; Stundza 2001). At that time, Toyota and Nissan were dropping inefficient suppliers and pushing the remaining suppliers to cooperate in cost-cutting efforts (Dawson 2001). Chrysler, known for its cooperative efforts with suppliers under the Supplier Cost Reduction Effort (SCORE) program, was asking for 5 percent annual price reductions instead of the 3 percent of previous years. Some suppliers were reportedly balking balking, baulking

see jibbing.
 at these efforts, stating that such price cuts were unreasonable (Green 2000).

Buyers' Practices

Both the number of studies that considered buyer practices and the percentage of studies investigating them dropped once again during the 2001-05 period (Table I). There were still a few studies on JIT implementation, power, supplier evaluation, contractual clauses, supplier selection, supply chain reduction and supplier development, but no studies of supplier certification, supplier training or visits to suppliers. A new practice of interest did appear: supplier incentives were considered in one study. Krause and Scannell (2002) found that product-based firms are more likely to rely on incentives and direct involvement than service-based firms.

Buyer-Supplier Mutual Efforts

Interest and consideration of buyer-supplier mutual efforts continued to increase in absolute number, although the percentage of these publications dropped somewhat. It is no surprise that communication, information sharing and trust remained the most often included variables of interest. The articles on communication and information sharing focused mostly on identifying the performance improvements associated with good communication and information sharing practices. For instance, results suggest that communication improves operational performance (Knemeyer and Murphy 2004) and collaboration (Prahinski and Benton 2004), and that information sharing promotes cycle time reduction (Hult et al. 2005), buyer's financial performance (Vickery et al. 2003) and supplier's commitment (Kwon and Suh 2004). Moreover, information sharing was found to be a good predictor of the buyer's competitive position (Tan 2002) and was found to be the single most important assessment factor used in supplier selection (Kannan and Tan 2002). There were several studies that considered the effects of trust on buyer performance (e.g., Johnston, McCutcheon, Stuart and Kerwood 2004; Knemeyer and Murphy 2004) or on supplier performance (e.g. Benton and Maloni 2005), but research had not gone as far as to analyze trust's direct influence on financial performance for the buying firm.

There was still some interest in understanding the effects of investments specific to a buyer-supplier relationship (Lonsdale 2001; Leiblein and Miller 2003; Subramani and Venkatraman 2003; Kwon and Suh 2004; McNally and Griffin 2004), knowledge sharing (e.g., Kotabe, Martin and Domoto 2003; Hult et al. 2005; Wagner and Buko 2005) and integrated NPD efforts between buyers and their suppliers (McGinnis and Vallopra 2001; Takeishi 2001; Primo and Amundson 2002). Only one study considered EDI adoption and its effect on supply chain coordination (Hill and Scudder 2002).

REVIEW, DISCUSSION AND CONCLUSION

Our review of four major journals expected to contain the most advanced research conducted in the area of buyer-supplier relationships revealed a total of 151 publications on the topic over the past 20 years. During the 1986-91 time period only 17 articles were published. The studies reviewed primarily focused on the effects of buyer practices (e.g., JIT implementation, power/dependence, supplier evaluation and contractual clauses), and buyer-supplier mutual efforts (communication and information sharing) on operational performance-based value such as quality, cost, delivery and inventory.

Over the 1992-95 time frame 28 articles were published. This is nearly twice as many as in the previous 6-year period (but in only 4 years) and suggests the increased interest in studies of buyer-supplier relationships in the early 1990s. In addition to continued interest in performance-based value, researchers began a major focus on integration-based value during this time (e.g., improved cooperation/collaboration/partnership). The number of studies that considered buyers' practices and mutual efforts was fairly constant with the prior period, but there were some changes in the types of buyer-supplier mutual efforts considered.

There were 39 empirical articles published between 1996 and 2000 on buyer-supplier relationships. These studies continued to consider factors that influence operational performance and integration-based value, but also began to investigate factors believed to affect capability-based value in the form continuous improvement, technology acquisition and improved NPD. In addition to the buyer practices noted in earlier years, researchers put more emphasis on supplier evaluation, development, certification and training, as well as visits to suppliers. Moreover, the number and percentage of the studies that considered buyer-suppler mutual efforts drastically dras·tic  
adj.
1. Severe or radical in nature; extreme: the drastic measure of amputating the entire leg; drastic social change brought about by the French Revolution.

2.
 increased relative to the two previous periods.

Finally, between 2001 and 2005, a total of 67 articles were published in these four U.S. academic journals. An impressive number and percentage of these studies considered the impact of buyer-supplier relationship practices and mutual efforts on buying firms' financial performance. The number of performance-based studies almost doubled relative to the prior period, while the number of studies that investigated the effects of buyer-supplier relationships on integration-based value and capability-based value continued to increase. The number of studies that included buyer practices remained almost constant, but the number of studies that investigated the effects of buyer-supplier mutual efforts continued to increase. With this summary of the publications over the past two decades, we now turn to a discussion of the implications of our findings for research and practice.

Implications for Research

It is our sincere hope that this review of the past 20 years of buyer-supplier relationship research will encourage the field to move beyond the investigation of general alliance and network relationship management to more focused studies of the relationships between buyers and their strategic suppliers. Doing so will provide more insights into the actual practices, and mutual efforts buyers and their suppliers have and can invest in so they can both derive value. Areas of potential interest include, but are not limited to, supplier development, certification, training, incentives and more face-to-face interactions such as visits and colocation of employees. It was really surprising to find that only six articles of the 151 reviewed were dyadic buyer-supplier studies, where both the buying firm and supplier participated.

The review also highlights a deficit in longitudinal studies longitudinal studies,
n.pl the epidemiologic studies that record data from a respresentative sample at repeated intervals over an extended span of time rather than at a single or limited number over a short period.
. The use of longitudinal research, although challenging, would provide important insights about the dynamics of buyer-supplier relationships. Currently, the research is almost exclusively cross-sectional and assumes that relationships are static in nature. In contrast, longitudinal studies could help identify how buyer-supplier relationships develop and fall apart, and investigate how contextual conditions may affect the development of buyer-supplier relationships. For instance, it would be interesting to investigate whether economic recessions have a negative impact on the establishment of collaborative buyer-supplier relationships.

In reviewing this body of research, we believe that future research needs to recognize the limitations of a single theoretical perspective and adopt multiple theories to explain how buyer practices and buyer-supplier mutual efforts influence the derivation derivation, in grammar: see inflection.  of value from these relationships. A diverse set of theories have been used to explain value extraction in buyer-supplier relationships: e.g., organizational economics, resource dependency theory Dependency theory is a body of social science theories, both from developed and developing nations, that are predicated on the notion that there is a center of wealthy states and a periphery of poor, underdeveloped states. , transaction cost economics, resource-based theory, relational theory, game theory and learning theory to name a few. Although there is, in general, an agreement that relationships between buyers and sellers are becoming more and more important, these theoretical foundations have few common themes. This was reflected in Osborn and Hagedoorn's observation in 1997 that the once strongly held assumption that adopting a host discipline yielded clear-cut, defensible de·fen·si·ble  
adj.
Capable of being defended, protected, or justified: defensible arguments.



de·fen
 and testable hypotheses has not proven true. "Initially, they seemed to provide dramatic progress; over time, they have yielded a series of conflicting, limited, and biased views.... We encourage researchers to abandon a singular SINGULAR, construction. In grammar the singular is used to express only one, not plural. Johnson.
     2. In law, the singular frequently includes the plural.
, clear-cut description of alliances and networks based on the assumptions of a host discipline in favor of upon the side of; favorable to; for the advantage of.

See also: favor
 a more robust, sophisticated, multidimensional view" (p. 274). Research suggests that a value extraction is a multifaceted phenomena that can only be explained by a multitheoretical perspective.

The review has made it apparent that research that considers buyer-supplier relationships and their efforts to derive value have become much more complex over the past 20 years. In addition to multiple theories, we argue that future research needs to acknowledge this complexity and focus more on the potential for practices and mutual efforts to mediate MEDIATE, POWERS. Those incident to primary powers, given by a principal to his agent. For example, the general authority given to collect, receive and pay debts due by or to the principal is a primary power.  and moderate as well as directly effect value extraction. Although not a prominent point of our discussion, Table I and Appendix A reveal a paucity pau·ci·ty  
n.
1. Smallness of number; fewness.

2. Scarcity; dearth: a paucity of natural resources.
 of research that has considered mediating or moderating effects. Furthermore, we encourage researchers to consider more contextual variables that can moderate the relationships that are beginning to become well established (e.g., contextual factors that moderate the effect of trust on operational performance). The effects of many buyer, supplier and market characteristics, as well as product characteristics have yet to be explored.

Similarly, our analysis leads us to believe that research should put more emphasis on investigating the conditions under which various integrative approaches are justified and are most effective. Thus, instead of making a blanket statement about the benefits of collaboration, research should work on identifying how various contingencies Contingencies (ISSN 1048-9851) is the bimonthly magazine of the American Academy of Actuaries, providing a large and diverse readership with general interest and technical articles on a wide range of issues related to the actuarial profession.  moderate the relationship between integration practices and performance. Research questions could include: under what market conditions are information sharing and trust beneficial for the buyer in terms of operational improvement? Under what product characteristics do integrated NPD and knowledge sharing provide the highest return in terms of increased operational performance? And, how can practitioners detect when these contextual conditions are met?

Finally, the concept of sustained competitive advantage deserves more emphasis by researchers investigating value extraction from buyer-supplier relationships. Research should identify the types of practices and the conditions likely to gain a firm a competitive advantage and consider the durability of those advantages. For that, the use of theory, such as the resource-based view or the competence-based approach (e.g., Prahalad and Hamel Ham´el   

v. t. 1. Same as Hamble.
 1990), should guide research, with an emphasis on utilizing multiple-theory studies, as we advocated earlier.

Implications for Practice

This review of the literature of the last 20 years also provides insights for practitioners. First, research on collaborative buyer-supplier relationships appears to have followed a similar path as the research on quality management in the 1980s and 1990s by focusing first on operational improvements and much later on financial performance. While operational improvements attributed to TQM (Total Quality Management) An organizational undertaking to improve the quality of manufacturing and service. It focuses on obtaining continuous feedback for making improvements and refining existing processes over the long term. See ISO 9000.  practices were established early in the 1980s, financial benefits of quality management were only established in the late 1990s (e.g., Hendricks and Singhal 2001). Our review suggests that a similar pattern emerged in the buyer-supplier relationships literature. As pointed out earlier, the link between collaborative buyer-supplier relationships and operational performance was an important research focus throughout the past two decades, but the focus on financial performance only became evident after 2001. However, unlike in the quality management field, the financial benefit of collaboration has been established without too much struggle. Thus, practitioners can be confident that pursuing appropriate purchasing practices will positively impact the bottom line.

Second, our review has highlighted four main types of value extraction companies are seeking today: operational performance improvements, integration-based improvements, supplier capability-based improvements and financial performance outcomes. Purchasing agents should carefully consider which types of value extraction are most relevant to which suppliers in order to gain the value sought most efficiently and effectively. Our review suggests that operational performance will continue to be important in many buyer-supplier relationships; however, integration-based and capability-based value can be expected to continue to become more and more important. For example, buyers have recently started to focus on capability-based value extraction, which consists in trying to capitalize on Cap´i`tal`ize on`   

v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>.
 suppliers' capabilities such as international experience, continuous improvement capabilities, environmental capabilities, by involving suppliers in NPD, or by acquiring a supplier's technical knowledge. Research has shown that competitive advantage is fleeting and firms that want to retain it most constantly create value more effectively and efficiently than their primary competitors.

Third, our review of the academic research suggests that practitioners have become more sophisticated in their approaches to enhancement of supplier relationships over the past 20 years. If research and popular press articles are a reflection of practice, buying firms now expect more from their suppliers than they did in the past, but are also more willing to help suppliers if they need help. Furthermore, suppliers have increased expectations regarding the investments that should be forthcoming from their buyers. Our review should serve as a wake-up call to all that have been unwilling to invest in buyer mechanisms to enhance value creation and encourage purchasing agents and firms to make the necessary investments to create value. Table I provides a good review of the various buyer practices and buyer-supplier mutual efforts that companies are using today. Not all would be appropriate for all buyer-supplier relationships, but buyers should be willing to invest in a variety of mechanisms to enhance value extraction from their key suppliers. Practitioners must, within an environment of constrained con·strain  
tr.v. con·strained, con·strain·ing, con·strains
1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force.

2.
 resources, decide which relationships require these activities, and when. Furthermore, they must ascertain which activity is most likely to yield the value sought.

Conclusion

This article reviews studies of buyer-supplier relationships published in four prominent U.S.-based academic journals between 1986 and 2005. Our review revealed that the focus of academic researchers on types of value being extracted from buyer-supplier relationships changed between 1986 and 2005, as did their interest in the buyer mechanisms implemented to create value in these relationships. Our recommendations for future research include using more dyadic studies, more longitudinal studies, the use of multiple, complementary theoretical lenses and an increased focus on the concept of sustained competitive advantage through purchasing practices. We hope that researchers will consider these ideas as they develop new research questions and initiate new research efforts.

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Newman, R.G. and K.A. Rhee. "A Case Study of NUMMI NUMMI New United Motor Manufacturing, Inc.
NUMMI New United Motors Manufacturing Inc.
 and its Suppliers," International Journal of Purchasing and Materials Management, (26:4), 1990, pp. 15-20.

Nicholls-Nixon, C.L. and C.Y. Woo. "Technology Sourcing and Output of Established Firms in a Regime of Encompassing Technological Change," Strategic Management Journal, (24:7), 2003, pp. 651-666.

O'Neal, C.R. "The Buyer-Seller Linkage in a Just-in-Time Environment," Journal of Purchasing and Materials Management, (23:1), 1987, pp. 7-13.

Osborn, R.N. and J. Hagedoorn. "The Institutionalization Institutionalization

The gradual domination of financial markets by institutional investors, as opposed to individual investors. This process has occurred throughout the industrialized world.
 and Evolutionary Dynamics of Interorganizational Alliances and Networks," Academy of Management Journal, (40:2), 1997, pp. 261-278.

Park, S. and J.L. Hartley. "Exploring the Effect of Supplier Management on Performance in the Korean Automotive Supply Chain," Journal of Supply Chain Management, (38:2), 2002, pp. 46-53.

Park, S., J.L. Hartley and D. Wilson. "Quality Management Practices and Their Relationship to Buyer's Supplier Ratings: A Study in the Korean Automotive Industry," Journal of Operations Management, (19:6), 2001, pp. 695-712.

Petersen, K.J., R.B. Handfield and G.L. Ragatz. "Supplier Integration into New Product Development: Coordinating Product, Process and Supply Chain Design," Journal of Operations Management, (23:3-4), 2005, pp. 371-388.

Petersen, K.J., G.L. Ragatz and R.M. Monczka. "An Examination of Collaborative Planning Effectiveness and Supply Chain Performance," Journal of Supply Chain Management, (41:2), 2005, pp. 14-25.

Pilling, B.K. and L. Zhang. "Cooperative Exchange: Rewards and Risks," International Journal of Purchasing and Materials Management, (28:2), 1992, pp. 2-9.

Porter, M. Competitive Strategy: Techniques for Analyzing Industries and Competitors, The Free Press, New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of
, 1980.

Prahalad, C.K. and G. Hamel. "The Core Competence Core competence

Primary area of expertise. Narrowly defined fields or tasks at which a company or business excels. Primary areas of specialty.
 of the Corporation," Harvard Business Review, (68:3), 1990, pp. 79-91.

Prahinski, C. and W.C. Benton. "Supplier Evaluations: Communication Strategies to Improve Supplier Performance," Journal of Operations Management, (22:1), 2004, pp. 39-62.

Presutti, W.D. "The Single Source Issue: U.S. and Japanese Sourcing Strategies," International Journal of Purchasing and Materials Management, (28:1), 1992, pp. 2-9.

Primo, M.A.M. and S.D. Amundson. "An Exploratory Study of the Effects of Supplier Relationships on New Product Development Outcomes," Journal of Operations Management, (20:1), 2002, pp. 33-52.

Richardson, J. "Parallel Sourcing and supplier Performance in the Japanese Automobile Industry automobile industry, the business of producing and selling self-powered vehicles, including passenger cars, trucks, farm equipment, and other commercial vehicles. ," Strategic Management Journal, (14:5), 1993, pp. 339-350.

Richeson, L., C.W. Lackey and J.W. Starner. "The Effect of Communication on the Linkage Between Manufacturers and Suppliers in a Just-in-Time Environment," International Journal of Purchasing and Materials Management, (31:1), 1995, pp. 21-28.

Rosenzweig, E.D., A.V. Roth and J.W. Dean. "The Influence of an Integration Strategy on Competitive Capabilities and Business Performance: An Exploratory Study of Consumer Products Manufacturers," Journal of Operations Management, (21:4), 2003, pp. 437-456.

Sanders, N.R. "It Alignment in Supply Chain Relationships: A Study of Supplier Benefits," Journal of Supply Chain Management, (41:2), 2005, pp. 4-13.

Spekman, R.E. "U.S. Buyers' Relationships with Pacific Rim Pacific Rim, term used to describe the nations bordering the Pacific Ocean and the island countries situated in it. In the post–World War II era, the Pacific Rim has become an increasingly important and interconnected economic region.  Sellers," Journal of Purchasing and Materials Management, (27:1), 1991, pp. 2-10.

Sriram, V. and S. Banerjee. "Electronic Data Interchange: Does Its Adoption Change Purchasing Policies and Procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental ?," International Journal of Purchasing and Materials Management, (30:1), 1994, pp. 31-40.

Sriram, V. and V. Mummalaneni. "Determinants of Source Loyalty in Buyer-Seller Relationships," Journal of Purchasing and Materials Management, (26:4), 1990, pp. 21-26.

Stanley, L.L. and J.D. Wisner. "Service Quality Along the Supply Chain: Implications for Purchasing," Journal of Operations Management, (19:3), 2001, pp. 287-306.

Stuart, I.F. and D. McCutcheon. "Problem Sources in Establishing Strategic Supplier Alliances," International Journal of Purchasing and Materials Management, (31:1), 1995, pp. 3-9.

Stuart, I.F. and P. Mueller. "Total Quality Management and Supplier Partnerships: A Case Study," International Journal of Purchasing and Materials Management, (30:1), 1994, pp. 14-20.

Stundza, T. "How Chrysler Will Cut Costs," Purchasing, February 8, 2001.

Subramani, M.R. and N. Venkatraman. "Safeguarding Investments in Asymmetric A difference between two opposing modes. It typically refers to a speed disparity. For example, in asymmetric operations, it takes longer to compress and encrypt data than to decompress and decrypt it. Contrast with symmetric. See asymmetric compression and public key cryptography.  Interorganizational Relationships: Theory and Evidence," Academy of Management Journal, (46:1), 2003, pp. 46-62.

Takeishi, A. "Bridging Inter- and Intra-Firm Boundaries: Management of Supplier Involvement in Automobile Product Development," Strategic Management Journal, (22:5), 2001, pp. 403-433.

Tan, K.C. "Supply Chain Management: Practices, Concerns, and Performance Issues," Journal of Supply Chain Management, (38:1), 2002, pp. 42-53.

Tan, K.C., V.R. Kannan and R.B. Handfield. "Supply Chain Management: Supplier Performance and Firm Performance," International Journal of Purchasing and Materials Management, (34:3), 1998, pp. 2-9.

Tracey, M. "A Holistic Approach holistic approach A term used in alternative health for a philosophical approach to health care, in which the entire Pt is evaluated and treated. See Alternative medicine, Holistic medicine.  to New Product Development: New Insights," Journal of Supply Chain Management, (40:4), 2004, pp. 37-55.

Tully, S. "Purchasing's New Muscle," Fortune, (20), 1995, pp. 75-83.

Vickery, S.K., J. Jayaram, C. Droge and R. Calantone. "The Effects of an Integrative Supply Chain Strategy on Customer Service and Financial Performance: An Analysis of Direct Versus Indirect Relationships," Journal of Operations Management, (21:5), 2003, pp. 523-539.

Wagner, S.M. and C. Buko. "An Empirical Investigation of Knowledge-Sharing in Networks," Journal of Supply Chain Management, (41:4), 2005, pp. 17-31.

Walton, S.V. and A.S. Marucheck. "The Relationship Between EDI and Supplier Reliability," International Journal of Purchasing and Materials Management, (33:3), 1998, pp. 30-35.

Walton, S.V., R.B. Handfield and S.A. Melnyk. "The Green Supply Chain: Integrating Suppliers into Environmental Management Processes," International Journal of Purchasing and Materials Management, (34:2), 1998, pp. 2-11.

Watts, C.A. and C.K. Hahn. "Supplier Development Programs: An Empirical Analysis," International Journal of Purchasing and Materials Management, (29:2), 1993, pp. 11-17.

Weber, R.P. Basic Content Analysis, Sage Publications Inc., Beverly Hills Beverly Hills, city (1990 pop. 31,971), Los Angeles co., S Calif., completely surrounded by the city of Los Angeles; inc. 1914. The largely residential city is home to many motion-picture and television personalities. , CA, 1985.

Welling, D.T. and D.J.F. Kamann. "Vertical Cooperation in the Construction Industry: Size Does Matter," Journal of Supply Chain Management, (37:4), 2001, pp. 28-33.

Whipple, J.M. and R. Frankel. "Strategic Alliance Success Factors," Journal of Supply Chain Management, (36:3), 2000, pp. 21-28.

Wilson, E.J. "The Relative Importance of Supplier Selection Criteria: A Review and Update," International Journal of Purchasing and Materials Management, (30:3), 1994, pp. 34-41.

Zaheer, A.B. McEvily and V. Perrone. "The Strategic Value of Buyer-Supplier Relationships," International Journal of Purchasing and Materials Management, (34:3), 1998, pp. 20-26.

Zsidisin, G.A. and L.M. Ellram. "An Agency Theory Investigation of Supply Risk Management," Journal of Supply Chain Management, (39:3), 2003, pp. 15-27.

Regis Terpend (Ph.D., Arizona State University Arizona State University, at Tempe; coeducational; opened 1886 as a normal school, became 1925 Tempe State Teachers College, renamed 1945 Arizona State College at Tempe. Its present name was adopted in 1958. ) is assistant professor of supply chain management at Boise State University in Boise, ID. Dr. Terpend's research interests include buyer-supplier relationships, sourcing strategy and negotiations.

Beverly B. Tyler (Ph.D., Texas A & M University) is associate professor of strategic management at North Carolina State University History

Main article: History of North Carolina State University
The North Carolina General Assembly founded NC State on March 7, 1887 as a land-grant college under the name North Carolina College of Agriculture and Mechanic Arts.
 in Raleigh, NC. Dr. Tyler is known best for her research on executive selection criteria for alliance partnerships and technology alliance management. Dr. Tyler has more recently extended her research to include supplier relationship management. Her current projects include (1) Social Capital Applications to Supplier Relationship Management; (2) Contracting in Biotechnology University-Corporate Research Alliances; and (3) U.S., Chinese and Spanish Spanish, river, c.150 mi (240 km) long, issuing from Spanish Lake, S Ont., Canada, NW of Sudbury, and flowing generally S through Biskotasi and Agnew lakes to Lake Huron opposite Manitoulin island. There are several hydroelectric stations on the river.  Executives' Equity Partner Selection Criteria and related moderating factors.

Daniel R. Krause (Ph.D., Arizona State University) is Professor of Operations and Supply Management at Queen's University Management School at Queen's University Belfast, in Belfast, Northern Ireland Northern Ireland: see Ireland, Northern.
Northern Ireland

Part of the United Kingdom of Great Britain and Northern Ireland occupying the northeastern portion of the island of Ireland. Area: 5,461 sq mi (14,144 sq km). Population (2001): 1,685,267.
, United Kingdom. His research interests include supplier development, the role of the purchasing function in fulfilling the firm's strategy and sustainable supply chain management. Dr. Krause recently completed a CAPS Focus Study on "Supplier Development in the New Product Development Process."

Robert B. Handfield (Ph.D., University of North Carolina at Chapel Hill The University of North Carolina at Chapel Hill is a public, coeducational, research university located in Chapel Hill, North Carolina, United States. Also known as The University of North Carolina, Carolina, North Carolina, or simply UNC ) is Bank of America
See also:  and


Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world.
 University Distinguished University Professor of Supply Chain Management. Dr. Handfield is the Editor Emeritus e·mer·i·tus  
adj.
Retired but retaining an honorary title corresponding to that held immediately before retirement: a professor emeritus.

n. pl.
 of the Journal of Operations Management and is the author of several books on supply chain management, the most recently being Supply Market Intelligence, Supply Chain Re-Design and Introduction to Supply Chain Management (Prentice Hall Prentice Hall is a leading educational publisher. It is an imprint of Pearson Education, Inc., based in Upper Saddle River, New Jersey, USA. Prentice Hall publishes print and digital content for the 6-12 and higher education market. History
In 1913, law professor Dr.
 1999), translated into Chinese, Japanese and Korean. He has coauthored textbooks for MBA and undergraduate classes including Purchasing and Supply Chain Management (with Robert Monczka) and Operations and Supply Chain Management (with Cecil Bozarth). He is also a leading speaker at executive forums such as the Power Conference at the Institute for Supply Management[TM], the Center for Business Intelligence, and the Conference Board. He has consulted with over 25 Fortune 500 companies. He has published more than 100 articles in top management journals including California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W).  Management Review, Sloan Management Review, IEEE (Institute of Electrical and Electronics Engineers, New York, www.ieee.org) A membership organization that includes engineers, scientists and students in electronics and allied fields.  Transactions on Engineering Management, Journal of Product Innovation Management, Journal of Operations Management and Decision Sciences. He is currently working on new books on the pharmaceutical supply chain and supply chain risk.

APPENDIX A Summary of Buyer-Supplier Publications Between 1986 and 2005
                                                             Buyer's
#    Year  Authors                Journal  Vol  Issue  Page  Practices

  1  1986  Ansari & Modarress     JSCM     22    3       11  X
  2  1986  Celley, Clegg,         JSCM     22    4        9  X
           Smith & Vonderembse
  3  1986  Carter                 JSCM     22    4       16
  4  1987  O'Neal                 JSCM     23    1        7  X
  5  1987  Ansari & Heckel        JSCM     23    2       22  X
  6  1987  Giuniperio & Keiser    JSCM     23    4       19  X
  7  1988  Felch & Felch          JSCM     24    3       36
  8  1988  Cowley                 SMJ       9    3      271  X
  9  1989  Lascelles & Dale       JSCM     25    2       10  X
 10  1989  Landeros & Monczka     JSCM     25    3        9
 11  1990  Hahn, Watts & Kim      JSCM     26    2        2  X
 12  1990  Giunipero              JSCM     26    3       19  X
 13  1990  Newman & Rhee          JSCM     26    4       15
 14  1990  Sriram & Mummalaneni   JSCM     26    4       21
 15  1991  Spekman                JSCM     27    1        2  X
 16  1991  Gait & Dale            JSCM     27    1       16  X
 17  1991  Cusumano & Takeish     SMJ      12    8      563  X
 18  1992  Heide & Miner          AMJ      35    2      265
 19  1992  Etlie & Reza           AMJ      35    5      795
 20  1992  Presutti               JSCM     28    1        2  X
 21  1992  Pilling & Zhang        JSCM     28    2        2
 22  1992  Perdue                 JSCM     28    3       26
 23  1992  Dion, Banting, Picard  JSCM     28    4       32  X
           and Blenkhorn
 24  1992  Turnbull, Oliver &     SMJ      13    2      159  X
           Wilkinson
 25  1992  Stiles                 SMJ      13    3      171
 26  1992  Holland, Lockett &     SMJ      13    7      539
           Blackman
 27  1993  Handfield              JOM      11    2      289  X
 28  1993  Handfield              JSCM     29    1        2  X
 29  1993  Giunipero & Brewer     JSCM     29    1       35  X
 30  1993  Watts & Hahn           JSCM     29    2       11  X
 31  1993  Birou & Fawcett        JSCM     29    2       28
 32  1993  Stuart                 JSCM     29    4       22  X
 33  1994  Lau & Lau              JOM      11    4      327
 34  1994  Stuart & Mueller       JSCM     30    1       14
 35  1994  Sriram & Banerjee      JSCM     30    1       31
 36  1994  Wilson                 JSCM     30    3       34  X
 37  1994  Graham, Daugherty &    JSCM     30    4       12
           Dudley
 38  1994  Mohr & Spekman         SMJ      15    2      135  X
 39  1995  Goodman, Fichman,      AMJ      38    5     1310
           Lerch & Snyder
 40  1995  Stuart & McCutcheon    JSCM     31    1        3  X
 41  1995  Richeson, Lackey &     JSCM     31    1       21  X
           Starner
 42  1995  Akacum & Dale          JSCM     31    1       38
 43  1995  Hines                  JSCM     31    2       18
 44  1995  Ellram                 JSCM     31    2       36
 45  1995  Martin, Mitchell &     SMJ      16    8      589
           Swaminathan
 46  1996  Choi & Hartley         JOM      14    4      333
 47  1996  Hendrick, Carter &     JSCM     32    3        2  X
           Siferd
 48  1996  Marcussen              JSCM     32    3       20
 49  1996  Ellram & Edis          JSCM     32    4       20
 50  1996  Dyer                   SMJ      17    4      271
 51  1996  Lassar & Kerr          SMJ      17    8      613  X
 52  1997  Nooteboom, Berger &    AMJ      40    2      308
           Noorderhaven
 53  1997  Hartley, Zirger and    JOM      15    1       57
           Kamath
 54  1997  Forker                 JOM      15    4      243  X
 55  1997  Smeltzer               JSCM     33    1       40
 56  1997  Krause                 JSCM     33    2       12  X
 57  1997  Walton & Marucheck     JSCM     33    3       30
 58  1997  Burnes & New           JSCM     33    4       10
 59  1997  Dyer                   SMJ      18    7      553
 60  1998  Koufteros,             JOM      16    1       21
           Vonderembse & Doll
 61  1998  Bozarth, Handfield &   JOM      16    2      241  X
           Das
 62  1998  Krause, Handfield and  JOM      17    1       39  X
           Scannell
 63  1998  Moore                  JSCM     34    1       24
 64  1998  Walton, Handfield and  JSCM     34    2        2  X
           Melnyk
 65  1998  Germain & Droge        JSCM     34    2       12  X
 66  1998  Tan, Kannan &          JSCM     34    3        2  X
           Handfield
 67  1998  Zaheer, McEvily &      JSCM     34    3       20
           Perrone
 68  1998  Meier, Humphreys &     JSCM     34    4       39
           Williams
 69  1998  Mudambi & Helper       SMJ      19    8      775
 70  1998  Cool & Henderson       SMJ      19   10      909  X
 71  1999  Krause                 JOM      17    2      205  X
 72  1999  Carr & Pearson         JOM      17    5      497  X
 73  1999  Gilbert & Ballou       JOM      18    1       61
 74  1999  McGinnis & Vallopra    JSCM     35    3        4
 75  1999  Forker, Ruch &         JSCM     35    3       40  X
           Hershauer
 76  1999  Lorenzini & Lipparini  SMJ      20    4      317
 77  1999  Holm, Eriksson &       SMJ      20    5      467  X
           Johanson
 78  1999  Combs & Ketchen        SMJ      20    9      867
 79  2000  McIvor & McHugh        JSCM     36    3       12
 80  2000  Whipple & Frankel      JSCM     36    3       21
 81  2000  Hartley                JSCM     36    4       27
 82  2000  Kale, Singh &          SMJ      21    3      217
           Perlmutter
 83  2000  Dyer & Nobeoka         SMJ      21    3      345
 84  2000  Kaufman, Wood &        SMJ      21    6      649  X
           Theyel
 85  2001  Afuah                  AMJ      44    6     1211
 86  2001  Frohlich & Westbrook   JOM      19    2      185
 87  2001  Stanley & Wisner       JOM      19    3      287
 88  2001  Dong, Carter &         JOM      19    4      471
           Dresner
 89  2001  Narasimhan & Das       JOM      19    5      593
 90  2001  Park, Hartley &        JOM      19    6      695
           Wilson
 91  2001  Deeter-Schmelz,        JSCM     37    1        4
           Bizarri, Graham &
           Howdyshell
 92  2001  Ramcharran             JSCM     37    1       11
 93  2001  Nellore                JSCM     37    1       27
 94  2001  Sanderson              JSCM     37    2       16  X
 95  2001  Lonsdale               JSCM     37    2       22  X
 96  2001  Narasimhan, Talluri &  JSCM     37    3       28
           Mendez
 97  2001  McGinnis & Vallopra    JSCM     37    3       48
 98  2001  Welling & Kamann       JSCM     37    4       28
 99  2001  Takeishi               SMJ      22    5      403
100  2001  Zaheer & Zaheer        SMJ      22    9      859
101  2002  Hult, Ketchen &        AMJ      45    3      577
           Nichols
102  2002  Primo & Admundson      JOM      20    1       33
103  2002  Narasimhan & Kim       JOM      20    3      303
104  2002  Hill & Scudder         JOM      20    4      375
105  2002  Frohlich & Westbrook   JOM      20    6      729
106  2002  Heikkila               JOM      20    6      747
107  2002  Ellram, Zsidisin,      JSCM     38    1        4
           Siferd & Stanly
108  2002  Tan                    JSCM     38    1       42  X
109  2002  Parsons                JSCM     38    2        4
110  2002  Krause & Scannel       JSCM     38    2       13  X
111  2002  Gelderman & Van Weele  JSCM     38    2       30
112  2002  Park & Hartley         JSCM     38    2       46
113  2002  Halley & Nollet        JSCM     38    3       39
114  2002  Elmuti                 JSCM     38    3       49
115  2002  Kannan & Tan           JSCM     38    4       11  X
116  2002  Poppo & Zenger         SMJ      23    8      707  X
117  2002  Leiblein, Reuer &      SMJ      23    9      817  X
           Dalsace
118  2003  Subramani &            AMJ      46    1       46
           Venkatraman
119  2003  Rosenweig, Roth &      JOM      21    4      437
           Dean
120  2003  Vickery, Jayaram,      JOM      21    5      523
           Droge & Calantone
121  2003  McHugh, Humphreys &    JSCM     39    2       15
           McIvor
122  2003  Sharland, Eltantawy &  JSCM     39    3        4  X
           Giunepero
123  2003  Zsidisin & Ellram      JSCM     39    3       15
124  2003  Preis                  JSCM     39    3       30
125  2003  Kotabe, Martin &       SMJ      24    4      293
           Domoto
126  2003  Nicholls-Nixon & Woo   SMJ      24    7      651
127  2003  Leiblein & Miller      SMJ      24    9      839
128  2003  Scheer, Kumar &        SMJ      46    3      303
           Steenkamp
129  2004  Johnston, McCutcheon,  JOM      22    1       23
           Stuat & Kerwood
130  2004  Prahinski & Benton     JOM      22    1       39
131  2004  Chen, Paulraj & Lado   JOM      22    5      505
132  2004  Droge, Jayaram &       JOM      22    6      557
           Vickery
133  2004  McNally & Griffin      JSCM     40    1        4
134  2004  Claycomb & Frankwick   JSCM     40    1       18
135  2004  Knemeyer & Murphy      JSCM     40    1       35
136  2004  Kwon & Suh             JSCM     40    2        4
137  2004  Pullins, Reid & Plank  JSCM     40    3       40
138  2004  Tracey                 JSCM     40    4       37  X
139  2004  Kim, Hoskisson & Wan   SMJ      25    7      613
140  2005  Benton & Maloni        JOM      23    1        1  X
141  2005  Christensen,           JOM      23    5      470  X
           Germain & Birou
142  2005  Petersen, Handfield &  JOM      23    3-4    371  X
           Ragatz
143  2005  Larson, Carr &         JSCM     41    1       18
           Dhariwal
144  2005  Sanders                JSCM     41    2        4
145  2005  Petersen, Ragatz &     JSCM     41    2       14
           Monczka
146  2005  Fredendall, Hopkins &  JSCM     41    2       26
           Bhonsle
147  2005  Paulraj & Chen         JSCM     41    3        4  X
148  2005  Wagner & Buko          JSCM     41    4       17
149  2005  Morris & Carter        JSCM     41    4       32
150  2005  Hoetker                SMJ      26    1       75  X
151  2005  Hult, Ketchen &        SMJ      26   12     1173
           Slater

#    Year  Authors                Mutual Efforts  Performance-Based

  1  1986  Ansari & Modarress                     X
  2  1986  Celley, Clegg,                         X
           Smith & Vonderembse
  3  1986  Carter                 X               X
  4  1987  O'Neal                                 X
  5  1987  Ansari & Heckel                        X
  6  1987  Giuniperio & Keiser
  7  1988  Felch & Felch
  8  1988  Cowley                                 X
  9  1989  Lascelles & Dale       X               X
 10  1989  Landeros & Monczka     X
 11  1990  Hahn, Watts & Kim                      X
 12  1990  Giunipero              X               X
 13  1990  Newman & Rhee          X
 14  1990  Sriram & Mummalaneni   X
 15  1991  Spekman                X               X
 16  1991  Gait & Dale            X
 17  1991  Cusumano & Takeish
 18  1992  Heide & Miner
 19  1992  Etlie & Reza                           X
 20  1992  Presutti
 21  1992  Pilling & Zhang        X
 22  1992  Perdue                                 X
 23  1992  Dion, Banting, Picard  X               X
           and Blenkhorn
 24  1992  Turnbull, Oliver &
           Wilkinson
 25  1992  Stiles
 26  1992  Holland, Lockett &     X
           Blackman
 27  1993  Handfield              X
 28  1993  Handfield                              X
 29  1993  Giunipero & Brewer     X               X
 30  1993  Watts & Hahn
 31  1993  Birou & Fawcett
 32  1993  Stuart
 33  1994  Lau & Lau                              X
 34  1994  Stuart & Mueller                       X
 35  1994  Sriram & Banerjee      X
 36  1994  Wilson                                 X
 37  1994  Graham, Daugherty &                    X
           Dudley
 38  1994  Mohr & Spekman         X
 39  1995  Goodman, Fichman,
           Lerch & Snyder
 40  1995  Stuart & McCutcheon
 41  1995  Richeson, Lackey &     X               X
           Starner
 42  1995  Akacum & Dale
 43  1995  Hines
 44  1995  Ellram                 X
 45  1995  Martin, Mitchell &
           Swaminathan
 46  1996  Choi & Hartley         X               X
 47  1996  Hendrick, Carter &     X               X
           Siferd
 48  1996  Marcussen              X
 49  1996  Ellram & Edis          X
 50  1996  Dyer                   X               X
 51  1996  Lassar & Kerr
 52  1997  Nooteboom, Berger &    X
           Noorderhaven
 53  1997  Hartley, Zirger and    X
           Kamath
 54  1997  Forker
 55  1997  Smeltzer               X
 56  1997  Krause                                 X
 57  1997  Walton & Marucheck     X               X
 58  1997  Burnes & New
 59  1997  Dyer                   X
 60  1998  Koufteros,
           Vonderembse & Doll
 61  1998  Bozarth, Handfield &   X
           Das
 62  1998  Krause, Handfield and  X
           Scannell
 63  1998  Moore                  X
 64  1998  Walton, Handfield and                  X
           Melnyk
 65  1998  Germain & Droge        X
 66  1998  Tan, Kannan &          X
           Handfield
 67  1998  Zaheer, McEvily &      X               X
           Perrone
 68  1998  Meier, Humphreys &     X               X
           Williams
 69  1998  Mudambi & Helper       X
 70  1998  Cool & Henderson
 71  1999  Krause                 X
 72  1999  Carr & Pearson         X
 73  1999  Gilbert & Ballou
 74  1999  McGinnis & Vallopra    X
 75  1999  Forker, Ruch &         X               X
           Hershauer
 76  1999  Lorenzini & Lipparini  X
 77  1999  Holm, Eriksson &
           Johanson
 78  1999  Combs & Ketchen
 79  2000  McIvor & McHugh        X
 80  2000  Whipple & Frankel      X
 81  2000  Hartley                X
 82  2000  Kale, Singh &          X
           Perlmutter
 83  2000  Dyer & Nobeoka         X               X
 84  2000  Kaufman, Wood &
           Theyel
 85  2001  Afuah
 86  2001  Frohlich & Westbrook
 87  2001  Stanley & Wisner                       X
 88  2001  Dong, Carter &                         X
           Dresner
 89  2001  Narasimhan & Das                       X
 90  2001  Park, Hartley &        X
           Wilson
 91  2001  Deeter-Schmelz,        X
           Bizarri, Graham &
           Howdyshell
 92  2001  Ramcharran
 93  2001  Nellore
 94  2001  Sanderson
 95  2001  Lonsdale               X
 96  2001  Narasimhan, Talluri &                  X
           Mendez
 97  2001  McGinnis & Vallopra    X
 98  2001  Welling & Kamann
 99  2001  Takeishi               X
100  2001  Zaheer & Zaheer
101  2002  Hult, Ketchen &
           Nichols
102  2002  Primo & Admundson      X               X
103  2002  Narasimhan & Kim
104  2002  Hill & Scudder         X
105  2002  Frohlich & Westbrook                   X
106  2002  Heikkila               X
107  2002  Ellram, Zsidisin,
           Siferd & Stanly
108  2002  Tan                    X               X
109  2002  Parsons                X
110  2002  Krause & Scannel
111  2002  Gelderman & Van Weele
112  2002  Park & Hartley                         X
113  2002  Halley & Nollet
114  2002  Elmuti                 X               X
115  2002  Kannan & Tan           X               X
116  2002  Poppo & Zenger
117  2002  Leiblein, Reuer &
           Dalsace
118  2003  Subramani &            X
           Venkatraman
119  2003  Rosenweig, Roth &
           Dean
120  2003  Vickery, Jayaram,      X
           Droge & Calantone
121  2003  McHugh, Humphreys &
           McIvor
122  2003  Sharland, Eltantawy &  X
           Giunepero
123  2003  Zsidisin & Ellram
124  2003  Preis
125  2003  Kotabe, Martin &       X
           Domoto
126  2003  Nicholls-Nixon & Woo
127  2003  Leiblein & Miller      X
128  2003  Scheer, Kumar &        X
           Steenkamp
129  2004  Johnston, McCutcheon,  X               X
           Stuat & Kerwood
130  2004  Prahinski & Benton     X               X
131  2004  Chen, Paulraj & Lado   X               X
132  2004  Droge, Jayaram &
           Vickery
133  2004  McNally & Griffin      X
134  2004  Claycomb & Frankwick   X
135  2004  Knemeyer & Murphy      X               X
136  2004  Kwon & Suh             X
137  2004  Pullins, Reid & Plank  X
138  2004  Tracey                 X               X
139  2004  Kim, Hoskisson & Wan
140  2005  Benton & Maloni        X
141  2005  Christensen,
           Germain & Birou
142  2005  Petersen, Handfield &                  X
           Ragatz
143  2005  Larson, Carr &
           Dhariwal
144  2005  Sanders
145  2005  Petersen, Ragatz &                     X
           Monczka
146  2005  Fredendall, Hopkins &  X
           Bhonsle
147  2005  Paulraj & Chen         X               X
148  2005  Wagner & Buko          X
149  2005  Morris & Carter                        X
150  2005  Hoetker
151  2005  Hult, Ketchen &        X
           Slater

#    Year  Authors                Integration-Based  Capability-Based

  1  1986  Ansari & Modarress
  2  1986  Celley, Clegg,         X
           Smith & Vonderembse
  3  1986  Carter
  4  1987  O'Neal
  5  1987  Ansari & Heckel
  6  1987  Giuniperio & Keiser
  7  1988  Felch & Felch
  8  1988  Cowley
  9  1989  Lascelles & Dale
 10  1989  Landeros & Monczka     X
 11  1990  Hahn, Watts & Kim
 12  1990  Giunipero
 13  1990  Newman & Rhee
 14  1990  Sriram & Mummalaneni
 15  1991  Spekman                X
 16  1991  Gait & Dale
 17  1991  Cusumano & Takeish
 18  1992  Heide & Miner          X
 19  1992  Etlie & Reza           X
 20  1992  Presutti               X
 21  1992  Pilling & Zhang        X
 22  1992  Perdue                 X
 23  1992  Dion, Banting, Picard
           and Blenkhorn
 24  1992  Turnbull, Oliver &     X
           Wilkinson
 25  1992  Stiles
 26  1992  Holland, Lockett &
           Blackman
 27  1993  Handfield
 28  1993  Handfield
 29  1993  Giunipero & Brewer
 30  1993  Watts & Hahn
 31  1993  Birou & Fawcett                           X
 32  1993  Stuart                 X
 33  1994  Lau & Lau
 34  1994  Stuart & Mueller       X                  X
 35  1994  Sriram & Banerjee      X
 36  1994  Wilson
 37  1994  Graham, Daugherty &
           Dudley
 38  1994  Mohr & Spekman         X
 39  1995  Goodman, Fichman,
           Lerch & Snyder
 40  1995  Stuart & McCutcheon    X
 41  1995  Richeson, Lackey &
           Starner
 42  1995  Akacum & Dale          X
 43  1995  Hines                  X
 44  1995  Ellram                 X
 45  1995  Martin, Mitchell &
           Swaminathan
 46  1996  Choi & Hartley         X                  X
 47  1996  Hendrick, Carter &
           Siferd
 48  1996  Marcussen              X
 49  1996  Ellram & Edis          X
 50  1996  Dyer
 51  1996  Lassar & Kerr          X
 52  1997  Nooteboom, Berger &    X
           Noorderhaven
 53  1997  Hartley, Zirger and                       X
           Kamath
 54  1997  Forker                                    X
 55  1997  Smeltzer
 56  1997  Krause
 57  1997  Walton & Marucheck
 58  1997  Burnes & New           X
 59  1997  Dyer
 60  1998  Koufteros,                                X
           Vonderembse & Doll
 61  1998  Bozarth, Handfield &   X                  X
           Das
 62  1998  Krause, Handfield and                     X
           Scannell
 63  1998  Moore                  X
 64  1998  Walton, Handfield and                     X
           Melnyk
 65  1998  Germain & Droge
 66  1998  Tan, Kannan &          X
           Handfield
 67  1998  Zaheer, McEvily &      X
           Perrone
 68  1998  Meier, Humphreys &     X
           Williams
 69  1998  Mudambi & Helper
 70  1998  Cool & Henderson
 71  1999  Krause
 72  1999  Carr & Pearson         X
 73  1999  Gilbert & Ballou
 74  1999  McGinnis & Vallopra    X                  X
 75  1999  Forker, Ruch &
           Hershauer
 76  1999  Lorenzini & Lipparini
 77  1999  Holm, Eriksson &
           Johanson
 78  1999  Combs & Ketchen        X
 79  2000  McIvor & McHugh        X
 80  2000  Whipple & Frankel      X
 81  2000  Hartley
 82  2000  Kale, Singh &          X
           Perlmutter
 83  2000  Dyer & Nobeoka         X
 84  2000  Kaufman, Wood &        X                  X
           Theyel
 85  2001  Afuah                                     X
 86  2001  Frohlich & Westbrook
 87  2001  Stanley & Wisner       X
 88  2001  Dong, Carter &         X
           Dresner
 89  2001  Narasimhan & Das       X                  X
 90  2001  Park, Hartley &                           X
           Wilson
 91  2001  Deeter-Schmelz,
           Bizarri, Graham &
           Howdyshell
 92  2001  Ramcharran
 93  2001  Nellore
 94  2001  Sanderson
 95  2001  Lonsdale
 96  2001  Narasimhan, Talluri &                     X
           Mendez
 97  2001  McGinnis & Vallopra                       X
 98  2001  Welling & Kamann       X
 99  2001  Takeishi                                  X
100  2001  Zaheer & Zaheer
101  2002  Hult, Ketchen &
           Nichols
102  2002  Primo & Admundson                         X
103  2002  Narasimhan & Kim       X
104  2002  Hill & Scudder         X
105  2002  Frohlich & Westbrook   X
106  2002  Heikkila
107  2002  Ellram, Zsidisin,
           Siferd & Stanly
108  2002  Tan
109  2002  Parsons                X
110  2002  Krause & Scannel
111  2002  Gelderman & Van Weele
112  2002  Park & Hartley
113  2002  Halley & Nollet
114  2002  Elmuti
115  2002  Kannan & Tan
116  2002  Poppo & Zenger
117  2002  Leiblein, Reuer &                         X
           Dalsace
118  2003  Subramani &
           Venkatraman
119  2003  Rosenweig, Roth &      X
           Dean
120  2003  Vickery, Jayaram,      X
           Droge & Calantone
121  2003  McHugh, Humphreys &    X
           McIvor
122  2003  Sharland, Eltantawy &  X
           Giunepero
123  2003  Zsidisin & Ellram
124  2003  Preis
125  2003  Kotabe, Martin &       X
           Domoto
126  2003  Nicholls-Nixon & Woo                      X
127  2003  Leiblein & Miller
128  2003  Scheer, Kumar &
           Steenkamp
129  2004  Johnston, McCutcheon,  X
           Stuat & Kerwood
130  2004  Prahinski & Benton     X
131  2004  Chen, Paulraj & Lado
132  2004  Droge, Jayaram &       X
           Vickery
133  2004  McNally & Griffin
134  2004  Claycomb & Frankwick
135  2004  Knemeyer & Murphy
136  2004  Kwon & Suh
137  2004  Pullins, Reid & Plank
138  2004  Tracey
139  2004  Kim, Hoskisson & Wan                      X
140  2005  Benton & Maloni        X
141  2005  Christensen,
           Germain & Birou
142  2005  Petersen, Handfield &                     X
           Ragatz
143  2005  Larson, Carr &         X
           Dhariwal
144  2005  Sanders                X                  X
145  2005  Petersen, Ragatz &     X
           Monczka
146  2005  Fredendall, Hopkins &  X
           Bhonsle
147  2005  Paulraj & Chen         X
148  2005  Wagner & Buko          X
149  2005  Morris & Carter        X
150  2005  Hoetker                X                  X
151  2005  Hult, Ketchen &        X
           Slater

#    Year  Authors                Financial Perf.  Moderators

  1  1986  Ansari & Modarress
  2  1986  Celley, Clegg,
           Smith & Vonderembse
  3  1986  Carter
  4  1987  O'Neal
  5  1987  Ansari & Heckel
  6  1987  Giuniperio & Keiser
  7  1988  Felch & Felch
  8  1988  Cowley                 X
  9  1989  Lascelles & Dale
 10  1989  Landeros & Monczka                      X
 11  1990  Hahn, Watts & Kim
 12  1990  Giunipero
 13  1990  Newman & Rhee
 14  1990  Sriram & Mummalaneni
 15  1991  Spekman
 16  1991  Gait & Dale
 17  1991  Cusumano & Takeish
 18  1992  Heide & Miner
 19  1992  Etlie & Reza
 20  1992  Presutti
 21  1992  Pilling & Zhang
 22  1992  Perdue                                  X
 23  1992  Dion, Banting, Picard
           and Blenkhorn
 24  1992  Turnbull, Oliver &
           Wilkinson
 25  1992  Stiles                 X                X
 26  1992  Holland, Lockett &                      X
           Blackman
 27  1993  Handfield                               X
 28  1993  Handfield
 29  1993  Giunipero & Brewer
 30  1993  Watts & Hahn                            X
 31  1993  Birou & Fawcett                         X
 32  1993  Stuart                                  X
 33  1994  Lau & Lau
 34  1994  Stuart & Mueller                        X
 35  1994  Sriram & Banerjee
 36  1994  Wilson
 37  1994  Graham, Daugherty &
           Dudley
 38  1994  Mohr & Spekman
 39  1995  Goodman, Fichman,
           Lerch & Snyder
 40  1995  Stuart & McCutcheon
 41  1995  Richeson, Lackey &
           Starner
 42  1995  Akacum & Dale                           X
 43  1995  Hines
 44  1995  Ellram
 45  1995  Martin, Mitchell &
           Swaminathan
 46  1996  Choi & Hartley
 47  1996  Hendrick, Carter &
           Siferd
 48  1996  Marcussen
 49  1996  Ellram & Edis
 50  1996  Dyer                   X
 51  1996  Lassar & Kerr
 52  1997  Nooteboom, Berger &
           Noorderhaven
 53  1997  Hartley, Zirger and
           Kamath
 54  1997  Forker
 55  1997  Smeltzer
 56  1997  Krause
 57  1997  Walton & Marucheck
 58  1997  Burnes & New
 59  1997  Dyer
 60  1998  Koufteros,
           Vonderembse & Doll
 61  1998  Bozarth, Handfield &                    X
           Das
 62  1998  Krause, Handfield and
           Scannell
 63  1998  Moore
 64  1998  Walton, Handfield and
           Melnyk
 65  1998  Germain & Droge        X
 66  1998  Tan, Kannan &          X
           Handfield
 67  1998  Zaheer, McEvily &
           Perrone
 68  1998  Meier, Humphreys &
           Williams
 69  1998  Mudambi & Helper                        X
 70  1998  Cool & Henderson       X
 71  1999  Krause                                  X
 72  1999  Carr & Pearson         X
 73  1999  Gilbert & Ballou
 74  1999  McGinnis & Vallopra                     X
 75  1999  Forker, Ruch &
           Hershauer
 76  1999  Lorenzini & Lipparini
 77  1999  Holm, Eriksson &       X
           Johanson
 78  1999  Combs & Ketchen
 79  2000  McIvor & McHugh
 80  2000  Whipple & Frankel
 81  2000  Hartley
 82  2000  Kale, Singh &
           Perlmutter
 83  2000  Dyer & Nobeoka
 84  2000  Kaufman, Wood &
           Theyel
 85  2001  Afuah
 86  2001  Frohlich & Westbrook
 87  2001  Stanley & Wisner
 88  2001  Dong, Carter &
           Dresner
 89  2001  Narasimhan & Das
 90  2001  Park, Hartley &
           Wilson
 91  2001  Deeter-Schmelz,
           Bizarri, Graham &
           Howdyshell
 92  2001  Ramcharran
 93  2001  Nellore
 94  2001  Sanderson
 95  2001  Lonsdale
 96  2001  Narasimhan, Talluri &
           Mendez
 97  2001  McGinnis & Vallopra
 98  2001  Welling & Kamann                        X
 99  2001  Takeishi
100  2001  Zaheer & Zaheer
101  2002  Hult, Ketchen &
           Nichols
102  2002  Primo & Admundson
103  2002  Narasimhan & Kim       X
104  2002  Hill & Scudder
105  2002  Frohlich & Westbrook   X
106  2002  Heikkila
107  2002  Ellram, Zsidisin,      X
           Siferd & Stanly
108  2002  Tan
109  2002  Parsons
110  2002  Krause & Scannel
111  2002  Gelderman & Van Weele                   X
112  2002  Park & Hartley
113  2002  Halley & Nollet
114  2002  Elmuti                 X
115  2002  Kannan & Tan           X
116  2002  Poppo & Zenger
117  2002  Leiblein, Reuer &                       X
           Dalsace
118  2003  Subramani &
           Venkatraman
119  2003  Rosenweig, Roth &      X
           Dean
120  2003  Vickery, Jayaram,      X
           Droge & Calantone
121  2003  McHugh, Humphreys &
           McIvor
122  2003  Sharland, Eltantawy &
           Giunepero
123  2003  Zsidisin & Ellram
124  2003  Preis
125  2003  Kotabe, Martin &
           Domoto
126  2003  Nicholls-Nixon & Woo
127  2003  Leiblein & Miller
128  2003  Scheer, Kumar &
           Steenkamp
129  2004  Johnston, McCutcheon,
           Stuat & Kerwood
130  2004  Prahinski & Benton
131  2004  Chen, Paulraj & Lado   X
132  2004  Droge, Jayaram &       X
           Vickery
133  2004  McNally & Griffin                       X
134  2004  Claycomb & Frankwick                    X
135  2004  Knemeyer & Murphy
136  2004  Kwon & Suh
137  2004  Pullins, Reid & Plank
138  2004  Tracey                 X
139  2004  Kim, Hoskisson & Wan   X
140  2005  Benton & Maloni
141  2005  Christensen,           X
           Germain & Birou
142  2005  Petersen, Handfield &  X
           Ragatz
143  2005  Larson, Carr &
           Dhariwal
144  2005  Sanders                X
145  2005  Petersen, Ragatz &     X
           Monczka
146  2005  Fredendall, Hopkins &
           Bhonsle
147  2005  Paulraj & Chen
148  2005  Wagner & Buko
149  2005  Morris & Carter
150  2005  Hoetker
151  2005  Hult, Ketchen &
           Slater


REGIS TERPEND

Boise State University

BEVERLY B. TYLER

North Carolina State University

DANIEL R. KRAUSE

Queen's University Belfast

ROBERT B. HANDFIELD

North Carolina State University

(1) The terms buyer and buying firm are used synonymously syn·on·y·mous  
adj.
1. Having the same or a similar meaning: synonymous words.

2. Equivalent in connotation: "a widespread impression that . . .
 throughout this paper to describe an industrial buying firm.
TABLE I Buyer-Supplier Publication Statistics

                                        1986-91      1992-95
                                        17 articles  28 articles
                                        Count  %     Count  %

Buyer's practices                       12     71    12     43
JIT Implementation                       5     29     4     14
Power/dependence                         4     24     3     11
Contractual clauses                      2     12    --     --
Supplier evaluation                      1      6     1      4
Supplier selection                       1      6     2      7
Supply base reduction                    1      6     3     11
Supplier development                     1      6     1      4
Supplier certification                  --     --    --     --
Supplier training                       --     --    --     --
Visits to suppliers                     --     --    --     --
Supplier incentives                     --     --    --     --
Buyer-supplier mutual efforts            8     47     9     32
Communication                            6     35     3     11
Information sharing                      2     12     6     21
Specific investments                     1      6    --     --
EDI adoption                            --     --     2      7
Trust                                   --     --     1      4
Knowledge sharing                       --     --    --     --
Integrated NPD                          --     --    --     --
Operational performance value           10     59    10     36
Quality                                  6     35    10     36
Cost                                     5     29     3     11
Delivery                                 5     29     1      4
Inventory                                4     24    --     --
Speed / lead-time                        1      6     4     14
Flexibility                             --     --    --     --
Agility                                 --     --    --     --
Integration-based value                  3     18    14     50
Improved cooperation/collaboration/      3     18    11     39
  partnership
Reduction of risk/opportunism/conflict   1      6     2      7
Coordination of activities              --     --     2      7
Knowledge acquisition/transfer          --     --    --     --
Capability-based value                   0      0     2      7
Global/international capability         --     --     1      4
Continuous quality/process improvement  --     --     1      4
Technology acquisition                  --     --    --     --
Improved NPD                            --     --    --     --
Environmental capabilities              --     --    --     --
Financial performance value              1      6     1      4
Profit/profit margin/profitability       1      6     1      4
ROS                                      1      6    --     --
ROA                                     --     --    --     --
ROI                                     --     --    --     --
Market share                            --     --    --     --
NPV                                     --     --    --     --
NIBT                                    --     --    --     --
Sales or sales growth                   --     --    --     --
ROE                                     --     --    --     --
Total return to shareholders            --     --    --     --
Moderating variables                     1      6     9     32
Market characteristics                   1      6     5     18
Buying's firm characteristics           --     --     4     14
Product characteristics                 --     --     3     11

                                        1996-2000    2001-05
                                        39 articles  67 articles
                                        Count  %     Count  %

Buyer's practices                       15     38    14     21
JIT Implementation                       1      3     2      3
Power/dependence                         3      8     3      4
Contractual clauses                      2      5     2      3
Supplier evaluation                      5     13     3      4
Supplier selection                       1      3     3      4
Supply base reduction                   --     --     1      1
Supplier development                     3      8     1      1
Supplier certification                   2      5    --     --
Supplier training                        2      5    --     --
Visits to suppliers                      2      5    --     --
Supplier incentives                     --     --     1      1
Buyer-supplier mutual efforts           28     72    32     48
Communication                            9     23     9     13
Information sharing                      6     15     9     13
Specific investments                     3      8     5      7
EDI adoption                             2      5     1      1
Trust                                    9     23     8     12
Knowledge sharing                        4     10     4      6
Integrated NPD                           5     13     3      4
Operational performance value           10     26    19     28
Quality                                  4     10    12     18
Cost                                     1      3    11     16
Delivery                                 3      8     8     12
Inventory                               --     --     2      3
Speed / lead-time                        2      5     2      3
Flexibility                              2      5     2      3
Agility                                  1      3     2      3
Integration-based value                 19     49    26     39
Improved cooperation/collaboration/     14     36    22     33
  partnership
Reduction of risk/opportunism/conflict   2      5     2      3
Coordination of activities               1      3     1      1
Knowledge acquisition/transfer           3      8     3      4
Capability-based value                   9     23    13     19
Global/international capability          1      3     1      1
Continuous quality/process improvement   3      8     5      7
Technology acquisition                   2      5     5      7
Improved NPD                             1      3     4      6
Environmental capabilities               1      3    --     --
Financial performance value              6     15    15     22
Profit/profit margin/profitability       4     10     6      9
ROS                                      1      3     2      3
ROA                                      2      5     6      9
ROI                                      2      5     5      7
Market share                             1      3     6      9
NPV                                      1      3     1      1
NIBT                                     1      3     1      1
Sales or sales growth                   --     --     6      9
ROE                                     --     --     1      1
Total return to shareholders            --     --     1      1
Moderating variables                     4     10     5      7
Market characteristics                   3      8     3      4
Buying's firm characteristics            1      3     3      4
Product characteristics                  1      3     1      1
COPYRIGHT 2008 National Association of Purchasing Management, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2008 Gale, Cengage Learning. All rights reserved.

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Author:Terpend, Regis; Tyler, Beverly B.; Krause, Daniel R.; Handfield, Robert B.
Publication:Journal of Supply Chain Management
Geographic Code:1USA
Date:Mar 22, 2008
Words:17073
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