Finn Wynstra

Abstract: Purpose - To present a literature review on value in business markets, both from the perspective of the marketing and the purchasing and supply process. Design/methodology/approach - Explores some of the early research strands on value including value analysis and engineering, the augmented product concept, consumer values and economic value of customers. Categorizes the past and more recent research according to two distinct levels of analysis - the value of good and services versus the value of buyer-supplier relationships; outlines how both of these perspectives represent a distinct theoretical focus of the role of business marketing and purchasing and supply. Research limitations/implications - Suggests two main avenues for future research - the value of products and the value of relationships; proposes three major areas for further study - value analysis, value creation and value delivery; looks at each of these potential research areas in some detail. Originality/value - Provides a review concerned with value in business markets and makes a number of proposals for future research directions.

Abstract: Existing studies of supplier involvement in new product development have mainly focused on project-related short-term processes and success factors. This study validates and extends an existing exploratory framework, which comprises both long-term strategic processes and short-term operational processes that are related to supplier involvement. The empirical validation is based on a multiple-case study of supplier collaborations at a manufacturer in the copier and printer industry. The analysis of eight cases of supplier involvement reveals that the results of supplier–manufacturer collaborations and the associated issues and problems can best be explained by the patterns in the extent to which the manufacturer manages supplier involvement in the short term and the long term. The results of this study reveal that the initial framework is helpful in understanding why certain collaborations are not effectively managed yet conclude that the existing analytical distinction among four different management areas does not sufficiently reflect empirical reality. This leads to the reconceptualization and further detailing of the framework. Instead of four managerial areas, this study proposes to distinguish between the strategic management arena and the operational management arena. The strategic management arena contains processes that together provide long-term, strategic direction and operational support for project teams adopting supplier involvement. These processes also contribute to building up a supplier base that can meet current and future technology and capability needs. The operational management arena contains processes that are aimed at planning, managing, and evaluating the actual collaborations in a specific development project. The results of this study suggest that success of involving suppliers in product development is reflected by the firm's ability to capture both short- and long-term benefits. If companies spend most of their time on operational management in development projects, they will fail to use the leverage effect of planning and preparing such involvement through strategic management activities. Also, they will not be sufficiently able to capture possible long-term technology and learning benefits that may spin off from individual projects. Long-term collaboration benefits can only be captured if a company can build long-term relationships with key suppliers, with which it builds learning routines and ensures that the capability sets of both parties are aligned and remain useful for future joint projects.

Abstract: Supplier involvement in new product development projects has become an increasingly popular method for improving project effectiveness (product costs and quality) and project efficiency (development costs and time). One of the key issues in managing this involvement is determining which type of involvement a manufacturer should have with the various suppliers that may be engaged simultaneously in a development project. In this article, a Supplier Involvement Portfolio is introduced to distinguish four types of supplier involvement in development projects. Subsequently, suitable supplier–manufacturer interfaces for the four types of involvement are defined in terms of the direction of information flow, the communication media used, the amount of communication, the topics discussed and the functions involved.

Abstract: Despite some successes in involving suppliers early and intensively in product development within the automotive and electronics industries, many companies still experience substantial difficulties in managing this involvement. This article examines three related critical issues: (a) identifying specific processes and tasks for the broader area of purchasing involvement in product development; (b) forming an organisation that supports the execution of such tasks; and (c) staffing the organisation with people that have the right skills.

Abstract: This study investigates the adoption of total cost of ownership (TCO) analysis to improve sourcing decisions. TCO can be seen as an application of activity based costing (ABC) that quantifies the costs that are involved in acquiring and using purchased goods or services. TCO supports purchasing decision-makers in focusing on total value received and not simply price, and it extends ABC concepts and tools to an inter-organizational context. Based on ABC-adoption literature and focus-group discussions with senior purchasing executives, a model is developed to explain relationships among eight constructs hypothesized to explain TCO adoption: competitive pressure in customer markets, strategic purchasing orientation, top management support, functional management commitment, value analysis experience, adequacy of TCO information, success of TCO initiatives, and use of TCO-based review and reward systems. We test this model using multi-sample structural equation modeling on survey data collected from purchasing managers and plant maintenance managers. We find support for most of our hypotheses and, further, that the posited relationships are largely invariant across purchasing manager and plant maintenance manager perspectives.

Abstract: Rising international cooperation, vertical disintegration, along with a focus on core activities have led to the notion that firms are links in a networked supply chain. This novel perspective has created the challenge of designing and managing a network of interdependent relationships developed and fostered through strategic collaboration. Although research interests in supply chain management (SCM) are growing, no research has been directed towards a systematic development of SCM instruments. This study identifies and consolidates various supply chain initiatives and factors to develop key SCM constructs conducive to advancing the field. To this end, we analyzed over 400 articles and synthesized the large, fragmented body of work dispersed across many disciplines. The result of this study, through successive stages of measurement analysis and refinement, is a set of reliable, valid, and unidimensional measurements that can be subsequently used in different contexts to refine or extend conceptualization and measurements or to test various theoretical models, paving the way for theory building in SCM. © 2004 Elsevier B.V. All rights reserved.

Abstract: In this innovative approach to the practice of social science, Charles Ragin explores the use of fuzzy sets to bridge the divide between quantitative and qualitative methods. Paradoxically, the fuzzy set is a powerful tool because it replaces an unwieldy, "fuzzy" instrument—the variable, which establishes only the positions of cases relative to each other, with a precise one—degree of membership in a well-defined set. Ragin argues that fuzzy sets allow a far richer dialogue between ideas and evidence in social research than previously possible. They let quantitative researchers abandon "homogenizing assumptions" about cases and causes, they extend diversity-oriented research strategies, and they provide a powerful connection between theory and data analysis. Most important, fuzzy sets can be carefully tailored to fit evolving theoretical concepts, sharpening quantitative tools with in-depth knowledge gained through qualitative, case-oriented inquiry. This book will revolutionize research methods not only in sociology, political science, and anthropology but in any field of inquiry dealing with complex patterns of causation.

Abstract: The delineation of B2B from ‘mainstream’ marketing reflects the limitations of the traditional, goods-dominant (G-D) model of exchange and a conceptualization of value creation based on the ‘producer’ versus ‘consumer’ divide. Service-dominant (S-D) logic broadens the perspective of exchange and value creation and implies that all social and economic actors engaged in exchange (e.g., firms, customers, etc.) are service-providing, value-creating enterprises; thus, in this sense, all exchange can be considered B2B. From this perspective, the contributions of B2B marketing (and other sub-disciplines) can be seen as applicable to ‘mainstream’ marketing. This generic, actor-to-actor (A2A) orientation, in turn, points toward a dynamic, networked and systems orientation to value creation. This article discusses this systems-oriented framework and elaborates the steps necessary for developing it further into a general theory of the market, informed by the marketing sub-disciplines, marketing practices, and disciplines external to marketing.

Abstract: Many business customers today consolidate their supply bases and implement preferred supplier programs. Consequently, vendors increasingly face the alternative of either gaining a key supplier status with their customers or being pushed into the role of a backup supplier. As product and price become less important differentiators, suppliers of routinely purchased products search for new ways to differentiate themselves in a buyer–seller relationship. This research investigates avenues for differentiation through value creation in business-to-business relationships. The results suggest that relationship benefits display a stronger potential for differentiation in key supplier relationships than cost considerations. The authors identify service support and personal interaction as core differentiators, followed by a supplier's know-how and its ability to improve a customer's time to market. Product quality and delivery performance, along with acquisition costs and operation costs, display a moderate potential to help a firm gain and maintain key supplier status. Finally, price shows the weakest potential for differentiation.

Abstract: Open Innovation is a phenomenon that has become increasingly important for both practice and theory over the last few years. The reasons are to be found in shorter innovation cycles, industrial research and development's escalating costs as well as in the dearth of resources. Subsequently, the open source phenomenon has attracted innovation researchers and practitioners. The recent era of open innovation started when practitioners realised that companies that wished to commercialise both their own ideas as well as other firms' innovation should seek new ways to bring their in-house ideas to market. They need to deploy pathways outside their current businesses and should realise that the locus where knowledge is created does not necessarily always equal the locus of innovation - they need not both be found within the company. Experience has furthermore shown that neither the locus of innovation nor exploitation need lie within companies' own boundaries. However, emulation of the open innovation approach transforms a company's solid boundaries into a semi-permeable membrane that enables innovation to move more easily between the external environment and the company's internal innovation process. How far the open innovation approach is implemented in practice and whether there are identifiable patterns were the questions we investigated with our empirical study. Based on our empirical database of 124 companies, we identified three core open innovation processes: (1) The outside-in process: Enriching a company's own knowledge base through the integration of suppliers, customers, and external knowledge sourcing can increase a company's innovativeness. (2) The inside-out process: The external exploitation of ideas in different markets, selling IP and multiplying technology by channelling ideas to the external environment. (3) The coupled process: Linking outside-in and inside-out by working in alliances with complementary companies during which give and take are crucial for success. Consequent thinking along the whole value chain and new business models enable this core process.