Stephen C. Jones

Effect of owners’ gender on venture quality evaluation

A study was undertaken to determine if there were quality differences between ventures that were forwarded on to a mass merchandiser for buyer review and those that were not. The sample ventures were manufacturers participating in an independent evaluation program for a major US midwest mass merchandiser. The quality issues were based on common management practices and on the marketability of the product being offered to the firm. Ventures that were forwarded for subsequent buyer review were found to be superior in both areas of concern. A separate analysis was run to determine if any gender‐based differences were notable in the evaluation process. With few exceptions, male‐ and female‐owned ventures were of comparable quality when forwarding status was controlled. However, using regression analysis, product quality was found to have the greatest impact on whether or not a female‐owned venture was forwarded, while the quality of the entire venture (product and management practices) was of greater significance for male‐owned ventures.

Using a “balanced approach” to measure merchandising supplier performance

Summary Purpose – Aims to verify the usefulness of a ‘‘balanced approach’’. Design/methodology/approach – This study examined 236 small manufacturers that had attempted to become suppliers to the mass merchandiser market. Each firm was asked to complete a self-assessment instrument and allow its product to be independently evaluated by a trained marketing professional. Findings – The results suggest that, while the balanced approach is useful in evaluating small suppliers, the reliance on only firm-related items is not as effective as an approach using an instrument that also includes product-specific measures. Firms with superior management and products were more successful in reaching a merchandiser’s shelves than those with poor ratings in each area. Originality/value – This study not only evaluated management areas similar to the ones recommended by Kaplan, Norton, and Kanji, but also included an assessment of product attributes. The study suggests that a balanced approach to performance assessment includes both firm and product measures. Buyers and suppliers in the mass merchandising industry could use this approach to more accurately assess the strengths and weaknesses of a potential relationship.

Supplier Selection and Development: The Relationship between Small Manufacturing Enterprises and Mass Merchandisers

This study examines the results of a program intended to act as a selection tool for mass merchandisers and a development tool for small manufacturers. The evaluation program assessed the management practices and products of potential suppliers. Based on past experience, buyers for mass merchandisers consider small manufacturing enterprises a poor risk as potential suppliers of retail goods. As part of the evaluation process, firms were asked 34 closed-end questions regarding their management practices, and each product was evaluated on 41 specific qualities necessary for the mass merchandising market. Of the 1,690 firms that participated in this project, about 5 percent had their products accepted by a national mass merchandiser. A review of the evaluation data reveals that firms needed high performance in both areas of evaluation to be successful in the marketplace, not just a strong firm or a marketable product. However, each of these areas separately had a statistically significant effect on the success of the product in gaining a retail buyer’s attention.