Amid frequent supplier-induced disruptions, academic attention has increasingly focused on how suppliers respond to restore relationships with affected customer firms. While prior research has examined the influence of resolution justice, the individual and combined effectiveness of response tactics by suppliers, along with the conditional role of customers' attributions regarding disruption causes and stability, remains underexplored. Drawing from the attribution model of trust repair, this study explores how firms (suppliers) responsible for supply disruptions can respond verbally and/or substantively to manage these disruptions. Using data from 63 firms in China, the fuzzy-set qualitative comparative analysis (fsQCA) is employed to identify diverse response tactic configurations linked to successful and unsuccessful recovery outcomes (i.e., relationship continuance). The results reveal that the effectiveness of responses is associated with customers' attributions, dependence on the firms, and disruption severity. Notably, apologies are effective in managing unstable competence-based disruptions—those perceived to arise from firms' infrequent competence issues. In integrity-based disruptions—those attributed to firms' integrity issues—relationship preservation largely hinges on customers' dependence on the firms and perceived cause stability. When customers rely highly on firms, the firms may repair the damaged trust through substantive actions. Apologies alone may also work but often require the firms to possess strong power positions. In less dependent relationships, trust restoration may occur through apologies and optional substantive measures if disruption causes are perceived as unstable. This study contributes to the supply disruption management and interorganizational trust repair literature, offering salient implications for firms when addressing supply disruptions.
PurposeDigitalization brings complexity and challenges to the relationship governance between logistics outsourcers and their providers. Drawn on resource dependence theory (RDT) and resource-based view (RBV), this study aims to examine the role of relationship commitment in simultaneously managing dependence and improving operational performance in logistics outsourcing in the digital economy, as well as the contingent factors (i.e. communication, relationship length, and company size) that affect the effectiveness of relationship commitment.Design/methodology/approachBased on data collected from 130 third-party logistics (3PL) users in China, our model was tested with the partial least squares (PLS) approach.FindingsFirst, relationship commitment is necessary for 3PL users to manage dependence on 3PL providers and improve operational performance in the digital economy. Second, communication helps 3PL users to develop higher relationship commitment but weakens the motivating effect of dependence on relationship commitment. Third, a long relationship history develops inertia to diminish the effectiveness of dependence on driving relationship commitment while it boosts the impact of relationship commitment on operational performance. Last, company size is an important signal to amplify the effectiveness of relationship commitment for operational performance enhancement.Originality/valueThis study contributes to the logistics outsourcing literature by integrating RDT and RBV to explain the twofold roles of relationship commitment, simultaneously tackling dependence and enhancing operational performance in the digital economy. Additionally, it expands the understanding of the boundary conditions (e.g. communication, relationship length, and company size) on these twofold roles.
Many managers today make decisions to utilize external business-to-business (B2B) suppliers for goods, services, and supply chain services. The frequency of supply disruption from goods/service providers can be surprisingly high. However, B2B suppliers' reactions to supply disruptions are underexamined. This research explores how suppliers can implement verbal and/or substantive responses to cope with a supply disruption, which is also regarded as a form of B2B service failure. Using data from firms in China, we use a fuzzy-set analysis method to identify diverse response tactic configurations associated with successful and unsuccessful recovery outcomes. We provide empirical evidence that B2B suppliers' response effectiveness is associated with the severity of the disruption, the buying firm's attribution of the disruption, and the supply environment. We show that B2B supplier apologies are effective in coping with unstable competence-based disruptions (i.e., disruptions perceived to be due to suppliers' infrequent competence issues), while responses to integrity-based disruptions (i.e., disruptions attributed to suppliers' integrity issues) should be made when supplier dependence is high. With high dependence on the B2B supplier, a victimized buyer's damaged perception of supplier integrity is more likely to be repaired; thus, it is effective for the supplier to take substantive actions. Additionally, our results indicate that when the buyer is highly dependent on the supplier, the negative outcomes generated by the integrity-based disruption are easily forgiven, perhaps out of necessity. In this case, it is feasible for the supplier to apologize for the disruption event. Our findings have salient implications for supplying firms when handling goods/service supply disruptions.Many managers today make decisions to utilize external business-to-business (B2B) suppliers for goods, services, and supply chain services. The frequency of supply disruption from goods/service providers can be surprisingly high. However, B2B suppliers' reactions to supply disruptions are underexamined. This research explores how suppliers can implement verbal and/or substantive responses to cope with a supply disruption, which is also regarded as a form of B2B service failure. Using data from firms in China, we use a fuzzy-set analysis method to identify diverse response tactic configurations associated with successful and unsuccessful recovery outcomes. We provide empirical evidence that B2B suppliers' response effectiveness is associated with the severity of the disruption, the buying firm's attribution of the disruption, and the supply environment. We show that B2B supplier apologies are effective in coping with unstable competence-based disruptions (i.e., disruptions perceived to be due to suppliers' infrequent competence issues), while responses to integrity-based disruptions (i.e., disruptions attributed to suppliers' integrity issues) should be made when supplier dependence is high. With high dependence on the B2B supplier, a victimized buyer's damaged perception of supplier integrity is more likely to be repaired; thus, it is effective for the supplier to take substantive actions. Additionally, our results indicate that when the buyer is highly dependent on the supplier, the negative outcomes generated by the integrity-based disruption are easily forgiven, perhaps out of necessity. In this case,
With intensifying competition and increasing dependence on external partners, open innovation has been becoming an inevitable and prevalent strategy to achieve long-term competitive advantage. Considerable research has investigated the benefit of open innovation, the mechanism through which open innovation translates into sustainable competitive advantage have yet been well examined. Drawing on the strategy-competence-competitive advantage framework and the knowledge-based view, this study examines the role of ambidextrous organizational learning in mediating the relationship between open innovation and sustainable competitive advantage as well as the moderating role of knowledge management capability. Based on data collected from 269 Chinese high-tech enterprises in 2021, we found that open innovation contributes to sustainable competitive advantage through enhancing organizational learning including both exploratory and exploitative learning as well as their balance. Moreover, knowledge management capability positively moderates the relationships of open innovation to exploration and exploitation as well as their combination. Research and practical implications are discussed.
With growing concern about social impacts and environmental protection, sustainable supply chain management has become a focus of interest for business practitioners and academics. This study examines the driving forces of sustainable supply chain management practices. Drowning on institutional theory and the resource-based view, this study empirically examines the driving effects of institutional pressures (in terms of governance pressure, customer pressure, and competitive pressure) and internal sustainability capabilities (in terms of top management leadership and technical capability) and their interactions on sustainable supply chain management practices. Based on empirical analysis of data from 172 Chinese firms, the findings reveal that institutional pressures and sustainability capabilities simultaneously and jointly motivate the implementation of sustainable supply chain management practices. Interestingly, the interactions of technical capabilities with governance pressures and customer pressures significantly and negatively influence sustainable supply chain management practice adoption, while the interactions of top management leadership with competitive pressures positively affect the pursuit of sustainable supply chain management practices.
As firms seek to meet sophisticated customer needs, they typically become more dependent on outside partners. Therefore, managing environmental dependence has become a key competency for business success. This observation is particularly true for third party logistics (3PL) providers in China, as most of these providers are lacking in resources. Drawing on resource dependence theory, this study examines whether and whenguanxi- a prevalent relationship management approach in China - is necessary for 3PL providers as a strategic option to manage environmental dependence. Based on survey data collected from 132 3PL providers in China, the empirical results show that it is necessary for 3PL providers in China to develop and rely onguanxito successfully cope with environmental uncertainty and dependence. However, the necessity of usingguanxito deal with these challenges differs between business relationships. The necessity of relying onguanxito deal with environmental uncertainty is alleviated by the presence of formal, customised legal contracts and by the frequency of contact in 3PL relationships. However, the need of usingguanxito cope with dependence tends to increase with the duration of each relationship. The managerial and theoretical implications of these findings are discussed.
Purpose This study aims to build on equity theory to assess the effect of chief executive officer (CEO) underpayment on the accumulation of firm-specific knowledge, accounting for the moderating effects of the CEO compensation gap and the clarity of the board's informal hierarchy. Design/methodology/approach This study starts with all firms listed in the Execucomp database for the period 1992 to 2006. Then, all data sources are merged and entries with missing information are excluded. The final data set used for model estimations includes 1,152 firm-year observations. The command xtreg in Stata 12 with the fixed-effect option (fe) is used to estimate the relationship between CEO underpayment and firm-specific knowledge. Findings This study proposed and examined the role of CEO underpayment in discouraging CEO willingness to invest firm-specific human capital and, accordingly, to adopt a strategy of accumulating lower levels of firm-specific knowledge assets. The empirical analyses strongly support this argument. Moreover, CEO compensation gaps and the informal hierarchy of boards negatively moderated this relationship. That is, CEO underpayment had a weaker negative effect on firm-specific knowledge when the CEO compensation gap and the clarity of the board's informal hierarchy were high. Originality/value Prior studies from the knowledge-based perspective have focused on the importance of firm-specific knowledge in enabling a firm to achieve superior financial performance. However, relatively little attention has been paid to CEOs' willingness to accumulate firm-specific knowledge. The present study contributes to the knowledge-based view of the firm. This study integrates equity theory with the knowledge-based view of the firm by highlighting how unfair compensation of CEOs may discourage them to fully realize a firm's potential to generate specific knowledge. By incorporating the fairness issue of CEO compensation into the knowledge-based view, this study contributes to a deeper understanding of the origins of firm-specific knowledge.
Drawing on social-exchange perspective, we propose that supervisors with high job insecurity may develop lower levels of leader–member exchange with their subordinates, which subsequently has a negative effect on subordinate task performance and subordinate career satisfaction. We further propose that the strength of the negative association between supervisor job insecurity, leader–member exchange, and subordinate outcomes are contingent on supervisor psychological resilience and subordinate interpersonal influence. Analyses based on 277 matched supervisor–subordinate dyads data provide support for the hypothesized first-stage moderated-mediation model. Specifically, leader–member exchange mediates the negative relationships between supervisor job insecurity, and subordinate task performance and career satisfaction. Both supervisor psychological resilience and subordinate interpersonal influence attenuate the negative relationship between supervisor job insecurity and leader– member exchange, such that this relationship is less negative when supervisor psychological resilience or subordinate interpersonal influence is higher. In addition, the indirect effect of supervisor job insecurity on subordinate task performance and career satisfaction via a leader–member exchange relationship is weaker when supervisors have higher psychological resilience or when subordinates have higher interpersonal influence.
With the growing importance of strategic alliances and supply chains as competitive units, academics and practitioners are interested in understanding the techniques used by firms to leverage interfirm relationships to gain a competitive advantage. Studies conducted in the Western context underline the role of relational governance (i.e., the modern Western way), whereas works in the Chinese context highlight the importance of guanxi (i.e., the traditional Chinese way). Today’s Chinese economy operates as a hybrid of the Western modern business model and traditional Chinese patterns with the coexistence of Western relational governance and guanxi. Therefore, this study addresses two issues: (1) whether these two types of governance interact as substitutes or complements in leveraging interfirm relationships and (2) whether and how foreign firms differ from their Chinese domestic counterparts in the use of these two types of governance to improve performance. Drawing on data collected from 132 third-party logistics providers in China, this study shows that Western relational governance and guanxi function as substitutes in improving performance. Moreover, while guanxi contributes to performance in a similar manner in Chinese domestic firms and foreign firms, Western relational governance is more effective for foreign firms than for Chinese domestic firms. Furthermore, the joint role (i.e., interaction effect) of Western relational governance and guanxi in improving performance also differs: these two forms of governance function as substitutes in foreign firms, whereas they have no significant interaction in Chinese domestic firms.
While an increasing number of firms outsource their logistics activities, the failure rate of logistics outsourcing is still high. To address such issue, this study draws upon transaction cost theory (TCT) and extended resource-based view (ERBV) to examine the mechanism through which transaction attributes (i.e., 3 PL providers’ asset specificity and logistics technological uncertainty) affect logistics outsourcing success. We argue that top management plays an essential role in mediating transaction attributes to exercise their influences on logistics outsourcing success. However, such a mediating mechanism is effective only when trustworthy alternative 3 PL providers are available in the market. The data from 250 manufacturing subsidiaries in China are used to test our model. Important implications for research and practices are discussed.
This study examined how and when witnessing peer abusive supervision influences newcomers’ socialization outcomes. We drew from the social information processing theory to explore the relationship between witnessing peer abusive supervision and newcomers’ socialization outcomes, and regarded newcomers’ information-seeking behavior as the mediator. Through applying the interactionist perspective, we also theorized how this relationship is moderated by newcomers’ future work self. We collected data at three time points from newcomers and their managers at a drug store chain in Northern China. Consistent with our theoretical framework, the results revealed that newcomers witnessing peer abusive supervision was negatively related to their information-seeking behaviors, with newcomers’ future work self salience moderating this relationship. Moreover, newcomers’ information-seeking behaviors acted as the mediator in the negative relationship between newcomers witnessing peer abusive supervision and their socialization outcomes. We discussed the implications of our research for future theory and practice in regard to abusive supervision and newcomer socialization.
Based on upper echelons theory, this study focuses on chief executive officers’ (CEOs) regulatory focus and delineates how CEO promotion and prevention focus differentially affect the magnitude of strategic change undertaken by a firm. Applying the person–situation interaction perspective, this study also theorizes how these relationships are moderated by the firm’s prior performance and environmental dynamism. These hypothesized relationships are then empirically tested using a sample of 1,318 observations covering a 10-year period. The analytical results support the hypotheses. This study concludes with a discussion of its theoretical and practical implications.
With the rapid explosion of the online technology, Internet Banking (IB) has been prevalent in recent years and attracts much research attention. Although intensive studies have investigated the determinants of users' initial acceptance of IB service, much less research has further explored the continuous usage of IB service. This study focuses on the continuous IB service usage intention by examining the role of users' psychological cognition (e.g., trust and commitment) in improving their continuous usage intention of IB service. Integrating the commitment-trust theory and the unified theory of acceptance and use of technology, we argue that besides contributive effects to continuous usage intention, psychological cognition mediates the influences of usage experiences (e.g., perceived service value, quality of alternatives, and anxiety) on continuous usage intention. This model was tested using survey data from 173 non-traditional college students who were all full-time employees with several years of working experience. The results confirm the contributive and mediating effects of trust and commitment on continuous IB service usage intention. The study contributes to the literature by highlighting the role of trust and commitment in predicting IB service continuous usage, and the findings provide useful implications for bank management in retaining online customers.
The continued growth of logistics outsourcing and dependence on third-party logistics (3PL) providers highlights the need for firms to strategically consider their dependence on their supply chain. We draw on resource dependency theory to propose guanxi (a cultural tradition in China of interpersonal connections that facilitate a mutual exchange of favors) as a dependency-coping strategy. Integrating transaction cost economics, we propose the effectiveness of guanxi as a dependence coping strategy is contingent on the level of exchange hazards (i.e., uncertainty and asset specificity) in logistics outsourcing. Based on data collected from 149 3PL users in China, we found that guanxi is a more potent strategy in highly uncertain environments and less relevant when extensive relationship-specific assets are involved. Implications and directions of future research are discussed.
The current study examined the effect of mentor workplace anxiety on protégé OCB. Building on social information processing theory and the dual-process model, we propose that mentor workplace anxiety has negative effects on protégé OCB via both the affective path (i.e., job frustration) and the cognitive path (i.e., career adaptability). Drawing on behavioral plasticity theory, we posit that core self-evaluation moderates these hypothesized relationships. We tested our hypotheses using multi-source and time-lagged data from a sample of 272 matched mentor-protégé dyads recruited from a large drugstore chain firm located in China. Consistent with our theoretical framework, we found that job frustration and career adaptability mediated the negative relationships between mentor workplace anxiety and protégé OCB. In addition, protégé core self-evaluation moderated the relationship between mentor workplace anxiety and the mediators (i.e., job frustration and career adaptability) and the indirect relationship between mentor workplace anxiety and OCB. Theoretical and practical implications, and future research directions are discussed.
Purpose The purpose of this paper is to investigate how customer pressure influences green innovation in the context of Chinese third-party logistics (3PL) providers, and especially the role of organizational culture in moderating this relationship. Design/methodology/approach Based on survey data collected from 165 3PL providers in China, hierarchical moderated regression analysis was conducted to test the hypotheses. Findings Customer pressure is an important driver of green innovation amongst 3PL providers. Flexibility-oriented organizational culture strengthens the effect of this driving force, while control-oriented organizational culture weakens this force. Green innovation significantly contributes to financial performance and flexibility orientation strengthens this contribution, while control orientation weakens it. Research limitations/implications This research examines the contingency effect of organizational culture in helping to resolve inconsistencies in the relationship between customer pressure and green innovation. Although the inconsistencies cannot be resolved completely, the research opens an avenue to explore other contingency factors or the possibility of a non-linear relationship. Practical implications 3PL firms could undertake green innovation to satisfy customers' environmental requirements. To develop their green innovation initiatives, managers should allow their employees greater autonomy and design (or re-design) operations procedures and regulations to be more flexible, thus enabling the diffusion of green innovation and avoiding or reducing the potential influence of control-oriented organization culture. Originality/value The study considers the conditional effect of organizational culture to reconcile the mixed results in the literature regarding the relationship between customer pressure and green innovation of logistics service providers.
This study examined how and when leader turnover intention influences team innovation performance. By integrating the literature on turnover intention and team innovation, and treating leader self-sacrificial behavior as a mediator, we explored the relationship between leader turnover intention and team innovation performance. Further, we examined leader empathic concern as a moderator of the relationship. We conducted a multiple-source, time-lagged research design to collect data from 119 team leaders and 397 team members of a large biopharmaceutical company in Northern China. We found that leader turnover intention is negatively related to leader self-sacrificial behavior, and leader empathic concern negatively moderated this relationship. In addition, leader self-sacrificial behavior served as a mediator in the negative relationship between leader turnover intention and team innovation performance. We discuss the implications of our findings for future theory, research, and practice regarding turnover and innovation.
In response to intensifying competition and escalating customer expectations, third-party logistics (3PL) providers need to become more innovative. In logistics service innovation, external relationships are important sources of resources and knowledge. Drawing on social capital theory and the strategy-structure-performance paradigm, this study proposes that guanxi (Chinese system of social networks and relationships that facilitates business and other dealings), expedites logistics service innovation by 3PL providers in China. This study also proposes that the effect of guanxi on logistics service innovation is contingent on the alignment between the type of guanxi and the provider's organizational structure. We tested our proposed model using survey data from 165 3PL providers in China. Our findings suggest that both political and business guanxi have a positive effect on logistics service innovation; however, those types of guanxi should be used in consideration of the firm's organizational structure. The results suggest that with respect to logistics service innovation, political guanxi is more effective for 3PL providers whose organizational structure is highly centralized or has low formalization. The converse applies to business guanxi.
Purpose - The purpose of this paper is to examine how analyst recommendation change is associated with a firm's magnitude of strategic change. Design/methodology/approach - This study argues that unfavorable analyst recommendation change serves as a powerful external assessment that current strategies are inappropriate and that changes are needed. This study also incorporates the moderating roles of CEO power and board's informal hierarchy in the relationship between analyst recommendation change and firm's magnitude of strategic change. Results from a sample of 824 observations generally support our predictions. Findings - The findings of this study show that the greater the analysts downgrade for the company's stock, the larger the magnitude of strategic change will be made. This study also considers the moderating roles of CEO power and the clarity of board's informal hierarchy. In particular, the higher the CEO power, the weaker the relationship between analyst recommendation change and the magnitude of strategic change will be. The higher the clarity of board's informal hierarchy, the more positive the relationship between analyst recommendation change and the magnitude of strategic change will be. Originality/value - It extends research on the external predictors of strategic change by incorporating the role of unfavorable analyst recommendation change. In addition, it contributes to institutional theory by showing how external legitimacy pressure and internal corporate governance tool complement each other.