Chris Ellegaard

Supply risk management in a small company perspective

Purpose – The purpose of the paper is to determine if owners of small manufacturing companies manage supply risk in similar ways and identify the practices constituting this potential joint approach.Design/methodology/approach – An interpretive case based methodology was applied in this research. Interview data on the supply risk management practices of 11 SCOs (small company owners) were analysed.Findings – The findings confirm that the 11 studied SCOs apply largely the same supply risk management practices, which can be characterised as defensive. The approach covers risk elimination practices such as knowledge protection and local sourcing as the major practices, combined with relational practices such as fairness, loyalty, and seeking out responsive, dependable, and like‐minded suppliers.Research limitations/implications – The study focuses exclusively on small manufacturing companies. Studies of other types of companies, such as trade or hi‐tech companies might reveal other practices.Practical implic...

The purchasing orientation of small company owners

Purpose – The literature holds few contributions regarding purchasing practices of small companies, despite the impressive size of this customer segment. Hence, this paper seeks to identify the purchasing orientation of small company owners.Design/methodology/approach – The study applies an interpretive qualitative case based approach. Small company owners describe their purchasing practices in a language void of theoretical concepts and by the continuous use of examples. Some practices are more or less unconscious. Interpretation is needed in order to discover patterns across the cases.Findings – Small company owners down‐prioritize purchasing and spend few resources on developing their purchasing capabilities. They emphasize operational security from suppliers – covering quality and delivery as well as service and problem‐solving capabilities. Price is a minor issue. They are extremely loyal customers, who rarely meet suppliers, but still manage to maintain trusting relationships with them. Reliability ...

Supply risk management functions of sourcing intermediaries: an investigation of the clothing industry

Purpose – The purpose of this paper is to uncover how buying companies use sourcing intermediaries to manage supply risks in global sourcing.Design/methodology/approach – The authors carry out an explorative qualitative study of the clothing industry, interviewing key respondents who occupy different positions in the supply chain, including sourcing intermediaries, retailers, and brand marketers.Findings – Sourcing intermediaries carry out a broad range of supply risk management functions, including design availability and support, and the operation of high risk markets. The authors identify different sourcing intermediary types, characterised by the set of functions they handle.Research limitations/implications – By analysing a limited set of in‐depth interviews in one industry the authors have traded off broader analytical generalization for in‐depth exploration and theory building. Therefore, future research should test the findings in other industries and across broader populations.Practical implicati...

Value appropriation in business exchange – literature review and future research opportunities

Purpose – Value appropriation is a central, yet neglected aspect in business exchange research. The purpose of the paper is to generate an overview of research on active value appropriation in business exchange and provide the foundation for further research into value appropriation, as well as some initial guidance for managers. Design/methodology/approach – Literatures investigating value appropriation were identified by the means of a systematic review of the overall management literature. Findings – The authors provide an overview and comparison of the literatures and find that they apply diverse understandings of the value appropriation process and emphasize different mechanisms and outcomes of value appropriation. Research limitations/implications – Based on the literature comparison and discussion, in combination with inspiration from alternative business exchange literature, the authors propose four areas with high potential for future research into value appropriation: network position effects, a...

The impact of relational assumptions on the task of influencing suppliers

Purpose – Aims to demonstrate that the task of influencing suppliers cannot be handled through the application of generic, one‐size‐fits‐all influence approaches with optimum outcomes and, further, to introduce analytical models and practices that can assist purchasers in differentiating their influence approaches.Design/methodology/approach – The relations between a producer of frequency converters and four suppliers of electronic components were studied in a hermeneutic qualitative case‐based research design.Findings – The paper shows how the case company influenced the four suppliers through the application of the same coercive power‐inspired supplier evaluation exercise. The purchasers designed the evaluation according to narrow and uniform assumptions – for instance, assuming that all suppliers would exhibit a power‐abiding rationality. These assumptions led the purchasers to design a standard evaluation scheme that did not take the specifics of each supplier relation into account. Hence, different o...

A model of functional integration and conflict

Purpose - The purpose of this article is to generate theory on how functional integration and conflict interrelate by studying the interface between production and purchasing. Design/methodology/approach - An interpretive single case research methodology is adopted. The authors rely on in-depth interviewing of managers in the production and purchasing functions of a construction company, as well as by its suppliers. Findings - Given low functional integration, antagonistic reasoning within each function and resultant conflicting behaviors are allowed to develop in a negative cycle, escalating the conflict between purchasing and production. This process leads to the creation of two opposing functional sourcing models that serve as blueprints for behavior. Research limitations/implications - The single case methodology was chosen to maximize depth and detail and form an ideal foundation for theory building. Future qualitative and quantitative studies should inquire further into the studied phenomenon to increase analytical and statistical generalizability of the proposed model. Practical implications - The findings can help managers understand how poor integration between functions can develop into cross-functional conflict. Facing a conflicting functional relationship, managers must resort to conflict resolution methods, instead of attempting to integrate, as several integrative devices are not appropriate in conflicting interfaces. Originality/value - The proposed model contributes by connecting the constructs of integration, group reasoning, and conflict, thereby generating knowledge on conflict development processes in cross-functional interfaces. Furthermore, the article contributes by uncovering the difficulties associated with implementing spend consolidation, a prevailing sourcing strategy.

Supplier perceptions of distributive justice in sustainable apparel sourcing

Purpose The purpose of this paper is two-fold: first, it attempts to determine whether suppliers perceive distributive justice (equity) when their key customers implement sustainable sourcing initiatives based on assessment governance, composed of codes of conduct and auditing; second, it generates insights into specific costs, rewards, and investments and how these together result in perceived equity. Design/methodology/approach A qualitative research design was adopted for this study. A total of 30 executives from textile manufacturing suppliers in China, India, and Bangladesh were interviewed to determine their perceptions of distributive justice in relation to their key customers’ sustainable sourcing initiatives. Findings Most of the interviewees perceived that their customers’ assessment of governance initiatives was unfair. Four types of suppliers are identified based on their varying perceptions of the equity equation. Research limitations/implications The findings introduce distributive justice as an important mediating variable between assessment-based governance and compliance. They also provide insights into the various types of perceived costs, rewards, and investments related to sustainable sourcing, and how they form varieties of the equity equation. The findings rely on a limited number of respondents and should, therefore, be researched further. Practical implications Assessment based on codes of conduct and auditing is the most prevalent sustainable sourcing governance approach, but suppliers may perceive this as an injustice leading to non-compliance. Buying companies are therefore advised to consider supplier perceptions of costs, rewards, and investments and adapt their sustainable sourcing initiatives accordingly. Social implications Increased consideration of distributive justice in sustainable sourcing should increase the likelihood of supplier compliance, improving conditions for employees in global textile plants. Originality/value Extant research has studied the connection between assessment-based sustainability governance and compliance or overall performance. This paper contributes by suggesting that distributive justice might be a mediating variable helping to explain this connection.