{"title":"The role of direct equity ownership in supply chains","authors":"In-Mu Haw, Morgan Swink, Wenlan Zhang","doi":"10.1002/joom.1224","DOIUrl":null,"url":null,"abstract":"<p>This study examines the effect of direct equity ownership (DO) a buyer holds in its supplier on financial performance and operations of the supplier and buyer. Based on a sample of US buyer–supplier pairs from 1982 to 2017, we find that DO benefits buyer performance, but not supplier performance. The results support the view that DO mainly provides greater control for the buyer. Furthermore, we find that the performance effects of DO are moderated by firm characteristics that engender dependence. The beneficial influence of DO on a buyer's performance is more pronounced when the buyer is more innovative or operates in a more competitive environment. Our examination of the effects of DO on the operations of suppliers and buyers finds that suppliers in buyer–supplier relationships (BSRs) with higher DO invest more in relationship-specific assets (R&D), provide more trade credits, and have lower gross profit margins. Buyers in BSRs with higher DO receive more trade credits and have lower cost of goods sold when the purchases of the buyer from the supplier make up a high proportion of the buyer's cost of goods sold. Overall, these results suggest that DO primarily benefits the buyer at the expense of the supplier, a finding that is consistent with the effects of bargaining and control power of the buyer. We discuss the implications of these findings for practitioners and for extensions to both relational and resource dependence theories.</p>","PeriodicalId":51097,"journal":{"name":"Journal of Operations Management","volume":"69 4","pages":"586-615"},"PeriodicalIF":6.5000,"publicationDate":"2022-09-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"2","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Operations Management","FirstCategoryId":"91","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1002/joom.1224","RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"MANAGEMENT","Score":null,"Total":0}
引用次数: 2
Abstract
This study examines the effect of direct equity ownership (DO) a buyer holds in its supplier on financial performance and operations of the supplier and buyer. Based on a sample of US buyer–supplier pairs from 1982 to 2017, we find that DO benefits buyer performance, but not supplier performance. The results support the view that DO mainly provides greater control for the buyer. Furthermore, we find that the performance effects of DO are moderated by firm characteristics that engender dependence. The beneficial influence of DO on a buyer's performance is more pronounced when the buyer is more innovative or operates in a more competitive environment. Our examination of the effects of DO on the operations of suppliers and buyers finds that suppliers in buyer–supplier relationships (BSRs) with higher DO invest more in relationship-specific assets (R&D), provide more trade credits, and have lower gross profit margins. Buyers in BSRs with higher DO receive more trade credits and have lower cost of goods sold when the purchases of the buyer from the supplier make up a high proportion of the buyer's cost of goods sold. Overall, these results suggest that DO primarily benefits the buyer at the expense of the supplier, a finding that is consistent with the effects of bargaining and control power of the buyer. We discuss the implications of these findings for practitioners and for extensions to both relational and resource dependence theories.
期刊介绍：
The Journal of Operations Management (JOM) is a leading academic publication dedicated to advancing the field of operations management (OM) through rigorous and original research. The journal's primary audience is the academic community, although it also values contributions that attract the interest of practitioners. However, it does not publish articles that are primarily aimed at practitioners, as academic relevance is a fundamental requirement.
JOM focuses on the management aspects of various types of operations, including manufacturing, service, and supply chain operations. The journal's scope is broad, covering both profit-oriented and non-profit organizations. The core criterion for publication is that the research question must be centered around operations management, rather than merely using operations as a context. For instance, a study on charismatic leadership in a manufacturing setting would only be within JOM's scope if it directly relates to the management of operations; the mere setting of the study is not enough.
Published papers in JOM are expected to address real-world operational questions and challenges. While not all research must be driven by practical concerns, there must be a credible link to practice that is considered from the outset of the research, not as an afterthought. Authors are cautioned against assuming that academic knowledge can be easily translated into practical applications without proper justification.
JOM's articles are abstracted and indexed by several prestigious databases and services, including Engineering Information, Inc.; Executive Sciences Institute; INSPEC; International Abstracts in Operations Research; Cambridge Scientific Abstracts; SciSearch/Science Citation Index; CompuMath Citation Index; Current Contents/Engineering, Computing & Technology; Information Access Company; and Social Sciences Citation Index. This ensures that the journal's research is widely accessible and recognized within the academic and professional communities.
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