Anni-Kaisa Kähkönen

The impact of power on information sharing in the Finnish food industry

Purpose – The paper aims to analyze power balance and collaboration in the value net context and to discuss the role of information as a source of power. The purpose is to find out how power affects information sharing and collaboration between buyers and suppliers. Both demand and supply perspectives are utilized, and the value net approach is combined with research on supply management and market orientation.Design/methodology/approach – The case study method was used in order to analyze relationships and information sharing in the Finnish food industry. A 29 semi‐structured interviews were conducted in four case companies.Findings – The results indicate that value net actors in the supplier role are willing to form collaborative relationships, but when they are in the role of the buyer the willingness to collaborate weakens. The implication is that power increases as the distance from the end‐markets decreases and that power relations affect collaboration and restrict information sharing between the ac...

Value net – a new business model for the food industry?

Purpose – The study aims to discuss the new value creation logic of value nets and analyze the characteristics of value nets in the context of the food industry. Previous research has shown that along with the growing importance of networking, the value creation logic is also changing from traditional chains to dynamic networks. The objective of this study is to define the characteristics of value nets and to analyze the suitability of the value net as a value creation and business model in the food industry.Design/methodology/approach – The study utilizes a case research as a method and analyzes a value net from the Finnish food industry. The empirical data comprises 29 individual semi‐structured interviews conducted with the personnel of four case companies.Findings – The findings of the study suggest that the value net as a business model and value creation model is also suitable for food sector companies. The value net has several characteristics that were found to be significant and useful for food c...

Buyer’s dependence in value creating supplier relationships

Purpose – The purpose of this paper is to examine what kind of supplier relationship management activities can be seen as value-creating activities and how those might affect the buyer’s dependence on its suppliers. Power and dependence provide specific insights into the supplier relationship management and value creation in supply chains. Design/methodology/approach – The study utilizes a survey data with 165 cases collected in Finland. The concepts are tested by means of regression analysis. Findings – The findings of the study indicate that the value-creating activities of inter-firm learning and early supplier involvement increase buyer’s dependence, but a supplier orientation does not have similar effects. Practical implications – The results have implications for supply chain managers and practitioners in terms of shedding light on the approaches of dependence and value creation at the same time. Managers need to understand the factors that create dependence, but which also have a substantial influe...

Sustainability-related risk management in buying logistics services: An exploratory cross-case analysis

Purpose Sustainability-related risk management of logistics service providers (LSPs) is an essential part of sustainability performance of focal companies, as logistics services touch the entire supply chain (SC) – from raw material sources to end-customers. The purpose of this paper, draws on resource-based view and stakeholder theory in exploring how companies can manage environmental and social sustainability-related risks from logistics service suppliers. This kind of capability is essential in order to maintain reputation in the eyes of stakeholders, and to maintain long-term financial performance. Design/methodology/approach The data of this multiple-case study were collected from semi-structured interviews in eight case-companies in Finland. Five of the cases are primary logistics buyers, and three represent LSP companies. Findings The cross-case analysis showed that primary buyers of logistics services use their sustainability criteria as a prerequisite for LSP candidates, and when the level is adequate and equal, other factors, e.g. price and capacity, are decisive. Based on the analysis, large LSPs are preparing for the future competition, and act in a more sustainable manner than their customers (buyers) expect at the moment, while small LSPs strictly comply with the regulation. However, buyers’ requirements for sustainable logistics services are increasing as the stakeholder expectations for comprehensively sustainable SCs are growing. Originality/value Only little research has been conducted on sustainable logistics from the buyer company’s risk management perspective. This paper adds the knowledge of sustainability-related risk management in purchasing of logistics services and in the logistics industry.

The drivers of supply management capability

Purpose The purpose of this paper is to unite the fragmented discussion concerning organizational-level capability in terms of purchasing and supply chain management. The capability drivers are identified from the literature and then validated by purchasing professionals. The impacts of the identified capability drivers on supply management capability are empirically examined. To increase a firm’s supply management capability, it is essential to connect purchasing and supply chain management to the firm’s strategy, as well as to establish robust policies and procedures for the activities of supply function, and to promote supplier orientation and the value of supplier networks to the business. Design/methodology/approach Data and methodological triangulation are utilized in the form of focus group sessions and a large scale survey. A regression analysis of the data from 165 Finnish firms is performed to examine the influence of the drivers. Findings The drivers of supply management capability proposed in this study and ranked by the focus group were the strategic status of procurement, supplier orientation, and the formalization of organizational responsibilities and roles in the purchasing function. An examination of these components and their relation to capability by means of a regression analysis showed that they have positive effects and high explanatory power on supply management capability. Originality/value The paper summarizes capability studies in the field of purchasing and supply chain management from the last two decades and also fulfils the need for empirical studies concerning the concept of supply management capability. Moreover, it contributes to the theory development by confirming that supply management capability really is a strategic asset of a firm.

The antecedents of supply strategy

– Because the role of supply management has become more strategic for firms, the importance of the existence of supply strategy has also increased. Therefore, the aim of this study is to discuss the existence of supply strategy in a firm and to analyze the determinants that may affect the process of building and development of supply strategy., – Based on previous literature, four hypotheses are established. To discover the effect of found antecedents on the existence of supply strategy, a logistic regression analysis is performed by using SPSS software., – Using empirical data collected from 100 Finnish firms, it is found that the capability of supply management is the main antecedent of the existence of supply strategy. The rate of internationality from overall purchases, the rate of total purchases from turnover and the centralization of supply management have a minor effect on supply strategy formation., – The limitation of this study is that the group sizes of dependent variable are not equal, which can bias the results. Furthermore, small sample size in statistical analysis may have effects on the generalization of the results., – The study emphasizes the influence of capability as a main determinant of building effective supply strategy.

Key dimensions of value creation ability of supply management

Purpose The purpose of this paper is to examine the dimensions of supply management that may contribute to its ability to create value. Based on previous literature, this study proposes that key supplier management (KSM), the strategic level of supply management and supplier relationship management (SRM) capabilities can be supply management factors that significantly influence its ability to create value. Design/methodology/approach The issue is examined using survey data collected in Finland, and the concepts are tested using regression analysis. Findings The results show that KSM, the strategic level of supply management and SRM capabilities are significant dimensions of value creation in supply management. The findings support the contemporary understanding of value in which firms endeavour to create value for the company, its customers and its suppliers. Originality/value Previously, value creation has received minor attention in supply chain management research. Although previous research clearly shows that strategic supply management plays a significant role in firms’ competitiveness and performance, its role and potential in value creation have been less studied. Thus, this study contributes by empirically examining the factors affecting the ability of a firm’s supply management to create value.

Supplier collaboration practices: implications for focal firm innovation performance

Purpose Due to the increasing complexity in supply chains and networks, several key practices have been highlighted as beneficial for supply chain performance. However, it is less known whether adopting such practices affects the innovation performance of the focal firm. This study hypothesises that supplier collaboration practices in four specific areas (green and ethical supply management, early supplier involvement, systemic purchasing and inter-firm learning) may lead to higher focal firm innovation performance, as they require the firm to adopt new business models, processes and product features. Design/methodology/approach The hypotheses drawn from previous research are tested with a quantitative survey study of 165 Finnish firms and analysed by means of regression analysis. Findings The results show that two examined practices are positively related to focal firm innovation performance: systemic purchasing and green and ethical supply management. Interestingly, early supplier involvement and inter-firm learning did not influence innovation performance. Originality/value Little is known about whether adopting certain practices in supply management affects the innovation performance of the firm. In fact, among the performance indicators of supply management, innovation is rarely studied, and more studies using innovation as a performance indicator are called for. Thus, this study focuses on supplier collaboration practices and their relation to the focal firm’s innovation performance.