We analyze the sourcing decision of a buyer choosing between two supplier types: responsible suppliers are costly but adhere to strict social and environmental responsibility standards, while risky suppliers are less expensive but may experience responsibility violations. A segment of the consumer population, called socially conscious, is willing to pay a higher price for a product sourced from...

Collaborating with a supplier in a buying firm’s new product development (NPD) project is commonly advocated and adopted, but does not always improve project performance. Some pre-existing collaboration contexts, such as buyer-supplier NPD projects, are especially exposed to supplier opportunism due to the uncertain nature of the collaboration process. Adopting agency theory and transaction cos...

While sharing the innovation between a buyer and a supplier can increase the efficiency and total profit of the supply chain, many suppliers are reluctant to do so. Sharing innovations leaves the supplier in a vulnerable position if the buyer exploits the information (e.g. by re-sharing the supplier’s innovation with competing suppliers). In this paper, we examine conditions under which a colla...

T paper studies a queuing model in which a buyer sources a good or service from a single supplier chosen from a pool of suppliers. The buyer seeks to minimize the sum of her procurement and operating costs, the latter of which depends on the supplier’s lead time. The selected supplier can regulate his lead time, but faster lead times are costly. Although the buyer selects the supplier to source...

In this paper we investigate the interplay between operational and financial decisions within the context of a two-echelon supply chain. A retailer purchases a single product from a supplier and afterwards sells it in the retail market to a random demand. The retailer, however, is budgetconstrained and is therefore limited in the number of units that he may purchase from the supplier. We study ...

Our study aims at identifying and quantifying buyer-supplier relationships from the buyer’s perspective. Whereas other relationship development studies are highly conceptual in nature, our study is firmly grounded in empirical research. The designed model is based on the results of interviews with expert practitioners and includes a succession of five stages that occur after initial transaction...

As manufacturing firms increasingly realize that supplier performance is crucial to their establishing and maintaining competitive advantage, supplier development has been a subject of considerable research in supply chain management. We develop and test a path model to explore how supplier development practices affect buyer–supplier performance from the buying firm’s perspective in the context...

We study the structure of an optimal management for innovative activities. The top management of a buyer hires a supplier for production. The production e¢ ciency can be enhanced by investing in R&D before production. The buyer chooses between using its own subunit for the R&D, or outsourcing the task to the supplier (integration of R&D and production). Our analysis reveals that (i) when the R&...

Many researchers have called for the need to improve the understanding of the concept and working of supply chain visibility. The facilitating role of inter-organizational information systems (IOIS) in achieving SC visibility has received inadequate research attention. This paper is to elaborate on the novel concept of IOIS visibility and to look into the antecedents and consequences of IOIS vi...

E−markets have been established in many industries as a sourcing option for buyers, yet in many situations they are used to complement long−term supplier−buyer relationships rather than replacing them. In this paper, we analyze the complementary role of e−markets when the buyer uses e−markets as an outside option in bargaining with the traditional supplier. The supplier may choose to make a rel...