Taking advantage of the fire: Does firm performance feedback have a supply chain contagion effect?

IF 9.8 1区 工程技术 Q1 ENGINEERING, INDUSTRIAL International Journal of Production Economics Pub Date : 2024-07-16 DOI:10.1016/j.ijpe.2024.109341
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Abstract

The increased interconnection among supply chain participants brought about by globalization has made supply chain management more crucial than ever for gaining a competitive advantage. We examine how supply chain participants respond to feedback on firm performance, with a focus on the effect of contagion on bargaining power. When a company's performance is below expectations, suppliers and customers tend to increase their bargaining power and potentially take actions to safeguard their interests. This is attributed to the decline in the focal company's product market power, resulting from negative performance feedback. Contrarily, positive performance feedback does not cause significant changes in the bargaining power of supply chain firms. Moreover, we explore the role of other stakeholders, such as creditors and investors, in influencing supply chain negotiations. The distrust of other stakeholders leads to the further improvement of the bargaining power of supply chain companies. We analyze the motivation of supply chain stakeholders to improve their bargaining power under performance feedback and develop a complete causal chain and solution on how to enhance future performance prediction to lessen the increase in bargaining power of the supply chain. This paper is both a valuable contribution to the body of knowledge on the financial impacts of business stakeholder decision-making and a cautionary tale for companies that urgently need to cluster their supply chain activities.

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趁火打劫:企业绩效反馈会产生供应链传染效应吗?
全球化使供应链参与者之间的相互联系日益紧密,这使得供应链管理对于获得竞争优势比以往任何时候都更为重要。我们研究了供应链参与者如何对公司业绩反馈做出反应,重点关注传染对议价能力的影响。当公司业绩低于预期时,供应商和客户往往会提高议价能力,并可能采取行动维护自身利益。这归因于负面业绩反馈导致焦点公司的产品市场力量下降。相反,积极的绩效反馈并不会引起供应链企业议价能力的显著变化。此外,我们还探讨了债权人和投资者等其他利益相关者在影响供应链谈判中的作用。其他利益相关者的不信任会导致供应链企业议价能力的进一步提高。我们分析了供应链利益相关者在绩效反馈下提高议价能力的动机,并就如何加强未来绩效预测以降低供应链议价能力的提高提出了完整的因果链和解决方案。本文既是对企业利益相关者决策的财务影响这一知识体系的宝贵贡献,也为急需对供应链活动进行集群的企业提供了警示。
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来源期刊
International Journal of Production Economics
International Journal of Production Economics 管理科学-工程:工业
CiteScore
21.40
自引率
7.50%
发文量
266
审稿时长
52 days
期刊介绍: The International Journal of Production Economics focuses on the interface between engineering and management. It covers all aspects of manufacturing and process industries, as well as production in general. The journal is interdisciplinary, considering activities throughout the product life cycle and material flow cycle. It aims to disseminate knowledge for improving industrial practice and strengthening the theoretical base for decision making. The journal serves as a forum for exchanging ideas and presenting new developments in theory and application, combining academic standards with practical value for industrial applications.
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