Managing from a distance in international purchasing and supply
O’Connor, Neale G., Du, Ya, Yang, Zhilin, and Akbari, Mohammadreza (2023) Managing from a distance in international purchasing and supply. Operations Management Research, 16. pp. 594-619.
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Abstract
International purchasing and supply management (PSM) teams have long faced the visibility and understandability challenges of managing geographically dispersed and culturally distant suppliers. Problems arising from inadequate monitoring and control over suppliers can be attributed to geographical and cultural distance, capability gaps, weak institutions, and supply market dynamism. With transaction costs theory as our lens, we examine how international geographically and culturally distant purchasing and supply management (PSM) teams control emerging economy suppliers with formal management controls. We use interview survey data on 339 international customer-Chinese supplier relationships using supplier perceptions of the extent to which performance measurement and monitoring practices are used by their primary customer in the purchase reorder decision and control. The results demonstrate that the cultural and, to a lesser extent, geographical distance between the customer and the supplier is associated with more extensive use of formal management controls. Also, we find the relationship between geographical or cultural distance and the importance of performance measurement is strengthened for suppliers of complex components.
| Item ID: | 76056 |
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| Item Type: | Article (Research - C1) |
| ISSN: | 1936-9735 |
| Keywords: | Supply chain management, Geographical distance, Culture distance, Formal management control mechanisms, Strategic resources, Transaction costs theory |
| Copyright Information: | © The Author(s) 2022. This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article's Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article's Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit |
| Date Deposited: | 14 Sep 2022 23:00 |
| FoR Codes: | 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3509 Transportation, logistics and supply chains > 350909 Supply chains @ 100% |
| SEO Codes: | 15 ECONOMIC FRAMEWORK > 1503 Management and productivity > 150302 Management @ 100% |
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