Buyer-supplier relationships in a servitized environment: An examination with Cannon and Perreault's framework

Purpose: The purpose of this study is to examine a buyer's adoption of servitization and the associated implications for the relationships with its suppliers. Design/methodology/approach: The authors use the case study approach to examine the tripartite relationship between a manufacturing company and two of its two suppliers. The paper explores the perspectives of employees on multiple organisational levels, and collects evidence on both sides of a relationship. The authors use template analysis utilising Cannon and Perreault's relationship connectors framework to analyse the data. Findings: There are overarching implications of servitization adoption for buyer-supplier relationships. The implications are notable in all five relationship connectors. Parties expected more open exchange of information, operational linkages were strengthened and changes in the structural arrangements of relationships were witnessed. Legal contracts are complemented by relational norms. The authors also observed a departure away from a win-lose mentality and increased levels of supplier adaptation to support the buyer's provision of integrated solutions. Research limitations/implications: The findings are confined to this tripartite relationship and to an extent are context specific. Practical implications: The study unveils buyer-supplier relationships in a servitized context and provides managers with a better understanding of some of the potential implications that the adoption of a servitization strategy may have for managing buyer-supplier relationships. Originality/value: This is the first empirical study that explores the implications of servitization on buyer-supplier relationships. It advances the understanding of the implications that the adoption of servitization has on the manner in which two parties interrelate and conduct commercial exchange. © Emerald Group Publishing Limited.

COGENT: Implementing a successful vehicle manufacturer/supplier co-development initiative

Over 100 suppliers have now taken part in an initiative built to improve joint design and development performance of tier one suppliers and one vehicle manufacturer. Significant targets were set - 30 % cost down and 30% faster design time with 40% less development budget - and achieved An analysis of the initiative was used to determine the critical success factors. These include significant detail findings in the areas of performance measurement and alignment of development processes. Equal attention is given to understanding how co-development can be implemented and the paper will present findings related to objectivity, perception of partners and partnerships. Copyright © 2002 Society of Automotive Engineers, Inc.

Idea Competitions under scrutiny: Acquisition, intelligence or public relations mechanism?

Idea Competitions (ICs) are becoming a popular mechanism chosen by firms to perform Open Innovation. They are a way to engage with external sources of knowledge such as individual entrepreneurs and small firms who are asked to submit ideas and compete for a prize. However, little is known about the success of ICs as acquisition mechanisms. The researchers conducted interviews in five multinational companies to evaluate the effects of using ICs as an acquisition mechanism. Although still preliminary, the results of this study show that the success of ICs as an acquisition mechanism remains uncertain because their output (i.e. the number of ideas acquired) is often low compared to the input (i.e. the number of ideas submitted) and effort required to run them (e.g. to vet ideas). Across the cases observed, ICs appear to be more successful at identifying and acquiring early-stage ideas, particularly those outside the current business focus. The study shows that ICs deliver other functional benefits such as improved intelligence and public relations and that these need to be considered as part of the evaluation of the IC's success. The paper concludes by discussing the conditions in which ICs are implemented and the implications for Open Innovation theory. © 2013 Elsevier Inc.