Managing firm risk through supply chain dependence: an SME perspective

Purpose The purpose of this study is to conduct an empirical investigation into the impact of supply chain dependence (including customer dependence and supplier dependence) on credit risk through the lens of social network theory (SNT) by focusing on how to manage firm risk using supply chain relationships in the context of Chinese small and medium-sized enterprises (SMEs). Design/methodology/approach Using data from public databases, this study selects a unique sample from a Chinese SME board and uses an ordered logistic regression model to investigate the relationship between the dependence on major customers or suppliers and both credit risk and credit rating. It is found that the results are robust to the use of different empirical methods. Findings The main findings of this study are that a firm’s dependence on major customers is positively related to its credit risk but negatively related to its credit rating, while a firm’s dependence on major suppliers is positively related to its credit risk but negatively related to its credit rating. Originality/value To broaden the understanding of industrial marketing and purchasing, this study contributes to research on supply chain relationship management and risk management by focusing on SMEs’ dependence on major customers and suppliers and empirically examining the influence of this dependence on both credit risk and credit rating in an emerging market.

Do Supply Chain Auditors Compromise? Evidence From the Association of Supplier Aggressive Revenue Management and Major Customer Dependence

Our study examines whether aggressive revenue management by a supplier is greater when the supplier and their major customer engage the same office-level auditor and when significant purchases are made by the major customer from the supplier. We posit that the auditor is more accommodating to clients who are jointly audited by the same office-level auditor because of the implicit threat of losing not just the supplier client but also the major customer client. The threat arises from the potential loss of synergies of a jointly planned audit engagement when significant purchases are made by the major customer. We find that income-increasing discretionary revenue is positively associated with the major customer’s percentage of purchases from the supplier when the same office-level auditor is engaged by the supplier and their major customer. We fail to find a statistically significant association when they engage a different office-level auditor or a different audit firm. Our findings provide evidence that office-level auditors tolerate greater aggressive revenue management when they have clients who are partners in the same supply chain and when greater audit synergies are at stake. In addition, our results are partly explained by supplier clients who have interlocking directors with major customers and significant influence.

Customer dependence and customer loyalty in traditional and modern format stores

Purpose The purpose of this paper is to examine the relationship between customer loyalty and customer dependence in the context of modern format and traditional format stores. In the process, the role of switching cost and trust in this relationship has been explored. Design/methodology/approach Building on the literature, the authors have postulated a conceptual model and formulated relevant hypotheses. Quantitative methodology is applied with previously established. The data were collected through convenient sampling. Methods like Factor analysis, cross-tab and regression analysis have been used. Findings The findings indicate a significant relationship between customer loyalty and customer dependence. Switching cost and trust have been found to have a moderating effect over the relationship in both modern and traditional environments. Research limitations/implications The limitation is the restriction to the Jammu context. The studies have brought about the difference in attitudinal and behavioural loyalty. Future research can be carried out on the role of dependence in explaining and strengthening this relationship. Originality/value The present study provides an insight into for the customer loyalty and customer dependence in the context of modern and traditional retail formats.

Determinan Nilai Pelanggan Dan Implikasinya Pada Dependensi Pelanggan Bengkel Suv Premium

he implementation of ASEAN Economic Community (AEC) for Indonesia making its big market more capitalized and and grow rapidly. The Indonesian automotive industrial market has become ASEAN’s biggest auto market. Automotive products in Indonesia is divided into two is a variant of commercial vehicles and passenger vehicle. Passenger vehicle is divided into three types namely: sedan, multi purpose vehicle (MPV), sport utility vehicle (SUV). The aim of this study is to investigate the determinants of customer value such as service quality and customer relationship management (CRM) and its implications on customer dependence. This research using a method of survey with a number of population 63.015 customers and 400 respondents as customers at premium SUV authorized service station in urban areas in West Java with using slovin formula. Analysis of data using path analysis. The result of this research concluded that the service quality and customer relationship management influenced partially significant on the perceived value of customers of car workshop premium SUV.

Manufacturer‐Distributor Relationships and Channel Service Quality

In today's marketplace for fast‐moving consumer goods, many brands exist with similar characteristics. Development and maintenance of product differentiation becomes increasingly difficult to realize for manufacturers. Consequently, non‐price competition particularly by offering high quality customer services, becomes increasingly important as a marketing instrument by producers towards distributors. In this article, an empirical investigation has been conducted into the interrelationships between customer services offered by an international beverage manufacturer and customer sentiments towards partnership and dependence. It appears that despite the well‐established premium brand offered by the manufacturer and the context of a long‐term relationship, customer service significantly affects customer dependence and closeness of the relationship. Furthermore, a high degree of partnership increases customer perceptions of dependence and quality of services. In the long run, manufacturer‐distributor relationships striving for service quality and partnership will benefit from mutual reinforcement.