Efficiency versus value maximisation in co‐manufacturing relationships
Tóm tắt
This paper examines two co‐manufacturing relationships, which were efficient with the aim of understanding why they were not value maximising.
The paper utilises a methodology designed by Wilding and Humphries and based on Williamson's organisation failure framework. Using a case study approach, it is applied in a new context to provide insights into the dynamics within two co‐manufacturing relationships in the food‐manufacturing industry.
The relationships are judged as operationally efficient by both sides but frustrations and conflicts have emerged over time, leading to a real danger of relationship breakdown. These problems are caused by failure to involve co‐manufacturing partners in strategy discussions, shortcomings in relationship management, and lack of recognition of partners' developing capabilities.
The paper challenges the transaction cost economics (TCE) focus on efficiency in the context of co‐manufacturing relationships and advocates a relational perspective to value maximisation.
The findings indicate that an undue focus on operational efficiency in the management of close, long‐duration co‐manufacturing relationships may result in a reduction in innovation and a failure to maximise value.
The paper provides empirical support for arguments in favour of dynamic efficiency, rather than the static efficiency implied by TCE. These findings are of great importance to companies engaged in strategically important co‐manufacturing relationships, as they demonstrate how “negative spiral behaviours” can develop.
Từ khóa
Tài liệu tham khảo
Backler, G. (1991), “Co‐makership relationships in European distribution”, International Journal of Logistics Management, Vol. 2 No. 1, pp. 48‐51.
Bagchi, P.K., Ha, B.C., Skjoett‐Larsen, T. and Soerensen, L.B. (2005), “Supply chain integration: a European survey”, International Journal of Logistics Management, Vol. 16 No. 2, pp. 275‐94.
Bowman, C. and Ambrosini, V. (1997), “Using single respondents in strategy research”, British Journal of Management, Vol. 8 No. 2, pp. 119‐31.
Buvik, A. and Reve, T. (2001), “Asymmetrical deployment of specific assets and contractual safeguarding in industrial purchasing relationships”, Journal of Business Research, Vol. 51 No. 2, pp. 101‐13.
Camuffo, A., Furlan, A. and Rettore, E. (2007), “Risk sharing in supplier relations: an agency model for the Italian air‐conditioning industry”, Strategic Management Journal, Vol. 28 No. 12, pp. 1257‐66.
Christopher, M. (2005), Logistics & Supply Chain Management: creating value‐adding networks, FT Prentice‐Hall, London.
Cooper, M.C., Lambert, D.M. and Pagh, J.D. (1997), “Supply chain management: more than a new name for logistics”, International Journal of Logistics Management, Vol. 8 No. 1, pp. 1‐14.
Cox, A., Lonsdale, C., Watson, G. and Qiao, H. (2003), “Supplier relationship management: a framework for understanding managerial capacity and constraints”, European Business Journal, Vol. 15 No. 3, pp. 135‐45.
Dale, B. (1990), “Editorial”, International Journal of Quality & Reliability Management, Vol. 7 No. 2, p. 6.
Dyer, J.H. (1997), “Effective inter‐firm collaboration: how firms minimize transaction costs and maximize transaction value”, Strategic Management Journal, Vol. 18 No. 7, pp. 535‐56.
Edmondson, A.C. and McManus, S.E. (2007), “Methodological fit in management field research”, Academy of Management Review, Vol. 32 No. 4, pp. 1155‐79.
Eisenhardt, K.M. (1989), “Building theories from case study research”, Academy of Management Review, Vol. 14 No. 4, pp. 532‐50.
Faulkner, D.O. and de Rond, M. (2000), Cooperative Strategy: Economic, Business and Organizational Issues, Oxford University Press, New York, NY.
Fawcett, S.E. and Magnan, G.M. (2002), “The rhetoric and reality of supply chain integration”, International Journal of Physical Distribution & Logistics Management, Vol. 32 No. 5, pp. 339‐61.
Fawcett, S.E., Magnan, G.M. and McCarter, M.W. (2008), “Benefits, barriers, and bridges to effective supply chain management”, Supply Chain Management: An International Journal, Vol. 13 No. 1, pp. 35‐48.
Ghoshal, S. (2005), “Bad management theories are destroying good management practices”, Academy of Management Learning and Education, Vol. 4 No. 1, pp. 75‐91.
Ghoshal, S. and Moran, P. (1996), “Bad for practice: a critique of the transaction cost theory”, Academy of Management Review, Vol. 21 No. 1, pp. 13‐47.
Giannakis, M. and Croom, S.R. (2004), “Towards the development of a supply chain management paradigm: a conceptual framework”, Journal of Supply Chain Management, Vol. 40 No. 2, pp. 27‐36.
Gibbs, R. and Humphries, A. (2009), Strategic Alliances and Marketing Partnerships, Kogan Page, London.
Halldorsson, A., Kotzab, H., Mikkola, J.H. and Skjøtt‐Larsen, T. (2007), “Complementary theories to supply chain management”, Supply Chain Management: An International Journal, Vol. 12 No. 4, pp. 284‐96.
Hanbrick, D.C., Li, J., Xin, K. and Tsui, A.S. (2001), “Compositional gaps and downward spirals in international joint venture management groups”, Strategic Management Journal, Vol. 22 No. 11, pp. 1033‐53.
Harland, C.M., Lamming, R.C., Zheng, J. and Johnsen, T.E. (2001), “A taxonomy of supply networks”, Journal of Supply Chain Management, Vol. 37 No. 4, pp. 21‐7.
Humphries, A.S. and Wilding, R. (2003), “Sustained monopolistic business relationships: an interdisciplinarity case”, British Journal of Management, Vol. 14 No. 4, pp. 323‐38.
Humphries, A.S. and Wilding, R. (2004), “Sustained monopolistic business relationships: a UK defence procurement case”, European Journal of Marketing, Vol. 37 Nos 1/2, pp. 99‐120.
Ireland, D., Hitt, M. and Vaidyanath, D. (2002), “Alliance management as a source of competitive advantage”, Journal of Management, Vol. 28 No. 3, pp. 413‐46.
Jick, T.D. (1979), “Mixing qualitative and quantitative methods: triangulation in action”, Administrative Science Quarterly, Vol. 24 No. 4, pp. 602‐11.
Jui‐Chin, J. and Chen, K.‐H. (2007), “Development of a collaborative manufacturing, planning, and scheduling system: integrating lean and agile manufacturing for the supply chain”, International Journal of Management, Vol. 24 No. 2, pp. 331‐45.
Kemppainen, K. and Vepsalainen, A.P.J. (2003), “Trends in industrial supply chains and networks”, International Journal of Physical Distribution & Logistics Management, Vol. 33 No. 8, pp. 701‐19.
Konijnendijk, P. and Wijngaard, J. (1991), “Co‐makership in the delivery of packaging materials”, International Journal of Operations and Production Management, Vol. 11 No. 3, pp. 21‐31.
Kovács, G. and Spens, K.M. (2005), “Abductive reasoning in logistics research”, International Journal of Physical Distribution & Logistics Management, Vol. 35 No. 2, pp. 132‐44.
Kovács, G. and Spens, K.M. (2007), “Logistics theory building”, Journal of Supply Chain Management, Vol. 4 No. 4, pp. 7‐27.
Lambert, D.M., Stock, J.R. and Ellram, L.M. (1998), Fundamentals of Logistics Management, McGraw‐Hill, Irwin, IA.
Lamming, R.C. (1993), Beyond Partnership: Strategies for Innovation & Lean Supply, Prentice‐Hall, London.
Lamming, R.C., Caldwell, N.D., Harrison, D.A. and Phillips, W. (2001), “Transparency in supply relationships: concept and practice”, Journal of Supply Chain Management, Vol. 37 No. 4, pp. 4‐10.
Lin, H.‐M. (2006), “Interorganizational collaboration, social embeddedness, and value creation: a theoretical analysis”, International Journal of Management, Vol. 23 No. 3, pp. 548‐58.
Logan, M.S. (2000), “Using agency theory to design successful outsourcing relationships”, International Journal of Logistics Management, Vol. 11 No. 2, pp. 21‐32.
Lonsdale, C. (2001), “Locked‐in to supplier dominance: on the dangers of asset specificity for the outsourcing decision”, The Journal of Supply Chain Management, Vol. 7 No. 2, pp. 22‐7.
Luo, Y. and Park, S.H. (2004), “Multi‐party cooperation and performance in international equity joint ventures”, Journal of International Business Studies, Vol. 5 No. 2, pp. 140‐60.
Mangan, J., Lalwani, C. and Gardner, B. (2004), “Combining quantitative and qualitative methodologies in logistics research”, International Journal of Physical Distribution & Logistics Management, Vol. 34 No. 7, pp. 565‐78.
Muthusamy, S.K. and White, A. (2006), “Does power sharing matter? The role of power and influence in alliance performance”, Journal of Business Research, Vol. 59 No. 7, pp. 811‐9.
Palmer, A. (2002), “The role of selfishness in buyer supplier relationships”, Marketing Intelligence & Planning, Vol. 20 No. 1, pp. 22‐7.
Rugman, A.M. and D' Cruz, J.R. (2000), “The theory of the flagship firm in cooperative strategy”, in Faulkner, D.O. and de Rond, M. (Eds), Cooperative Strategy: Economic, Business and Organisational Issues, Oxford University Press, New York, NY.
Ryals, L. and Humphries, A.S. (2007a), “Managing key business‐to‐business relationships: what marketing can learn from supply chain management”, Journal of Service Research, Vol. 9 No. 4, pp. 312‐26.
Ryals, L. and Humphries, A.S. (2007b), “Seeing eye to eye”, CPO Agenda, Vol. 3 No. 4, pp. 52‐7.
Sako, M., Lamming, R.C. and Helper, R. (1994), “Supplier relations in the UK car industry: good news – bad news”, European Journal of Purchasing & Supply Management, Vol. 1 No. 4, pp. 237‐48.
Sapsford, R. (1999), Survey Research, Sage, London.
Skjoett‐Larsen, T., Thernøe, C. and Andresen, C. (2003), “Supply chain collaboration: theoretical perspectives and empirical evidence”, International Journal of Physical Distribution & Logistics Management, Vol. 33 No. 6, pp. 531‐49.
Smith, G.B. (1990), “Co‐makership: the Japanese success story in a British environment”, Journal of Quality & Reliability Management, Vol. 7 No. 2, pp. 7‐14.
Vallespir, B. and Kleinhans, S. (2001), “Positioning a company in enterprise collaborations: vertical integration and make‐or‐buy decisions”, Production Planning & Control, Vol. 12 No. 5, pp. 478‐87.
Vandaele, D., Rangarajan, D., Gemmel, P. and Lievens, A. (2007), “How to govern business services exchanges: contractual and relational issues”, International Journal of Management Reviews, Vol. 9 No. 3, pp. 237‐58.
van Echtelt, E.A.F., Wynstra, F., van Weele, A.J. and Duysters, G. (2008), “Managing supplier involvement in new product development: a multiple‐case study”, Journal of Product Innovation Management, Vol. 25 No. 2, pp. 180‐201.
Wagner, S.M. (2009), “Getting innovation from suppliers”, Research Technology Management, January‐February, pp. 8‐9.
Wilding, R. and Humphries, A. (2006), “Understanding collaborative supply chain relationships through the application of the Williamson organisational failure framework”, International Journal of Physical Distribution & Logistics Management, Vol. 36 No. 4, pp. 309‐29.
Williamson, O.E. (1975), Markets and Hierarchies: Analysis and Anti‐trust Implications, The Free Press, New York, NY.
Williamson, O.E. (1979), “Transaction‐cost economics: the governance of contractual relations”, Journal of Law & Economics, Vol. 22 No. 1, pp. 233‐61.
Williamson, O.E. (2008), “Outsourcing: transaction cost economics and supply chain management”, Journal of Supply Chain Management, Vol. 44 No. 2, pp. 5‐16.
Yin, R.K. (2002), Case Study Research: Design and Methods, 3rd ed., Sage, London.