Strategic supplier segmentation: the next "best practice' in supply chain management

Article Abstract:

This study of 453 supplier-automaker relationships in the U.S., Japan, and Korea examines the extent to which automakers manager their "arms-length" and "partner" suppliers differently. The findings indicate that U.S. automakers have historically managed the majority of their suppliers using an arm's length model, Korean automakers have managed suppliers primarily as partners, and Japanese automakers have somewhat different relationships with suppliers depending on the nature (i.e., degree of asset specificity and value) of the component. Only Japanese automakers have strategically segmented suppliers in such a way as to realize many of the benefits of both the arm's-length as well as the partner models. Firms should think strategically about supplier management and should not have a "one-size-fits-all" strategy for supplier management. (Reprinted by permission of the publisher.)

Japan, Equipment and supplies, Automobile industry, Korea, Interorganizational relations

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An approach for confirmatory measurement and structural equation modeling of organizational properties

Article Abstract:

Valid estimates of organizational constructs and their relationships to each other must be obtained for organizational research to be meaningful. A confirmatory approach is presented that helps distinguish such constructs from possible sources of measurement error. A confirmatory composition model provides estimates of informant bias, organizational indicators, and random measurement error. This approach can be useful in studying manufacturer and distributor marketing channels and industrial marketing.

Models, Analysis, Measurement, Management research, Organizational research, Structural analysis (Engineering)

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Partnering as a focused market strategy

Article Abstract:

Partnership-building efforts, even when sought by a customer firm, may not be in the best interests of a supplier firm. This article presents a comprehensive, strategic approach that offers managers guidance on decisions about which market segments and individual customer firms to target for close, collaborative relationships. Firms can gain competitive advantage by augmenting a supplier's product offering for transactional customers. (Reprinted by permission of the publisher.)

Methods, Usage, Marketing, Partnership, Partnerships, Target marketing

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