PlumX Metrics
Embed PlumX Metrics

The impact of boundary conditions on the relationship between value creation and value appropriation in buyer-supplier relationships

Journal of Business and Industrial Marketing, ISSN: 0885-8624, Vol: 39, Issue: 5, Page: 979-994
2024
  • 2
    Citations
  • 0
    Usage
  • 18
    Captures
  • 0
    Mentions
  • 0
    Social Media
Metric Options:   Counts1 Year3 Year

Metrics Details

Article Description

Purpose: This study aims to investigate whether higher value creation leads to higher value appropriation and to identify the boundary conditions in a buyer–supplier relationship that can explain why a particular supplier can appropriate higher value than others. Design/methodology/approach: The study uses questionnaire surveys. The sample of the survey has 150 publicly-listed supplier firms in Taiwan. The unit of analysis is the buyer–supplier relationship. Findings: In the buyer–supplier relationship, suppliers’ bargaining power, partnership and a supplier’s original brand manufacturing (OBM) business can strengthen the positive relationship between value creation and value appropriation. Research limitations/implications: This study adopts the unilateral viewpoint of suppliers; however, some constructs might require dyadic evaluation. This study only explores the spillover effect of OBM business on the relationship between value creation and appropriation. Practical implications: The spillover effect of a supplier’s OBM business in a buyer–supplier relationship allows the buyer to share more common benefits and the supplier to capture more private benefits as compensation. By broadening its customer base, a supplier can increase its bargaining power. A supplier can also maintain a strategic partnership with each essential buyer. Originality/value: To avoid the dark-side effect of partnership, the model provides the contingency that a supplier can capture more value from a buyer–supplier relationship.

Bibliographic Details

Provide Feedback

Have ideas for a new metric? Would you like to see something else here?Let us know