IDEAS home Printed from https://ideas.repec.org/a/spr/opmare/v13y2020i1d10.1007_s12063-020-00153-0.html
   My bibliography  Save this article

Customer degree centrality and supplier performance: the moderating role of resource dependence

Author

Listed:
  • Dong-Young Kim

    (University of North Florida, Coggin College of Business)

  • Pengcheng Zhu

    (University of San Diego, School of Business)

  • Wenli Xiao

    (University of San Diego, School of Business)

  • Yen-Ting Lin

    (University of San Diego, School of Business)

Abstract

This study builds on social network and resource dependence perspectives and examines whether the central position occupied by a customer firm affects supplier financial performance. The research setting for this study is the manufacturing and service industries. To test proposed hypotheses, we collect data from the Compustat segment customer database and use pooled ordinary least squares regression in our main analysis. Our findings show that customer degree centrality enhances supplier performance. We found that the positive effect of customer degree centrality on supplier performance is more pronounced when there is a high level of resource dependence between a customer and its supplier. This study extends the social network theory and the resource dependence theory by delineating how customer degree centrality is related with supplier performance. Our finding contributes to a better understanding of the contingency view of the relationship between a central position and performance that is not always straightforward.

Suggested Citation

  • Dong-Young Kim & Pengcheng Zhu & Wenli Xiao & Yen-Ting Lin, 2020. "Customer degree centrality and supplier performance: the moderating role of resource dependence," Operations Management Research, Springer, vol. 13(1), pages 22-38, June.
    • Handle: RePEc:spr:opmare:v:13:y:2020:i:1:d:10.1007_s12063-020-00153-0
    DOI: 10.1007/s12063-020-00153-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12063-020-00153-0
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s12063-020-00153-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bilal Gokpinar & Wallace J. Hopp & Seyed M. R. Iravani, 2010. "The Impact of Misalignment of Organizational Structure and Product Architecture on Quality in Complex Product Development," Management Science, INFORMS, vol. 56(3), pages 468-484, March.
    2. Katrin Muehlfeld & Padma Rao Sahib & Arjen Van Witteloostuijn, 2012. "A contextual theory of organizational learning from failures and successes: A study of acquisition completion in the global newspaper industry, 1981–2008," Strategic Management Journal, Wiley Blackwell, vol. 33(8), pages 938-964, August.
    3. Tim Rowley & Dean Behrens & David Krackhardt, 2000. "Redundant governance structures: an analysis of structural and relational embeddedness in the steel and semiconductor industries," Strategic Management Journal, Wiley Blackwell, vol. 21(3), pages 369-386, March.
    4. Suresh Radhakrishnan & Zheng Wang & Yue Zhang, 2014. "Customers’ Capital Market Information Quality and Suppliers’ Performance," Production and Operations Management, Production and Operations Management Society, vol. 23(10), pages 1690-1705, October.
    5. Adam Eckerd & Amanda M. Girth, 2017. "Designing the Buyer–Supplier Contract for Risk Management: Assessing Complexity and Mission Criticality," Journal of Supply Chain Management, Institute for Supply Management, vol. 53(3), pages 60-75, July.
    6. Hallikas, Jukka & Varis, Jari & Sissonen, Heli & Virolainen, Veli-Matti, 2008. "The evolution of the network structure in the ICT sector," International Journal of Production Economics, Elsevier, vol. 115(2), pages 296-304, October.
    7. Peter Moran, 2005. "Structural vs. relational embeddedness: social capital and managerial performance," Strategic Management Journal, Wiley Blackwell, vol. 26(12), pages 1129-1151, December.
    8. Amrit Tiwana, 2008. "Do bridging ties complement strong ties? An empirical examination of alliance ambidexterity," Strategic Management Journal, Wiley Blackwell, vol. 29(3), pages 251-272, March.
    9. Yongxin Liao & Fernando Deschamps & Eduardo de Freitas Rocha Loures & Luiz Felipe Pierin Ramos, 2017. "Past, present and future of Industry 4.0 - a systematic literature review and research agenda proposal," International Journal of Production Research, Taylor & Francis Journals, vol. 55(12), pages 3609-3629, June.
    10. Mazzola, Erica & Perrone, Giovanni & Kamuriwo, Dzidziso Samuel, 2015. "Network embeddedness and new product development in the biopharmaceutical industry: The moderating role of open innovation flow," International Journal of Production Economics, Elsevier, vol. 160(C), pages 106-119.
    11. Fama, Eugene F. & French, Kenneth R., 1997. "Industry costs of equity," Journal of Financial Economics, Elsevier, vol. 43(2), pages 153-193, February.
    12. Maggie Chuoyan Dong & Zhiqiang Liu & Yimin Yu & Jin-Hui Zheng, 2015. "Opportunism in Distribution Networks: The Role of Network Embeddedness and Dependence," Production and Operations Management, Production and Operations Management Society, vol. 24(10), pages 1657-1670, October.
    13. Manju K. Ahuja & Dennis F. Galletta & Kathleen M. Carley, 2003. "Individual Centrality and Performance in Virtual R& D Groups: An Empirical Study," Management Science, INFORMS, vol. 49(1), pages 21-38, January.
    14. Bat Batjargal & Michael Hitt & Anne Tsui & Jean-Luc Arregle & Justin Webb & Toyah Miller, 2013. "Institutional Polycentrism, Entrepreneurs' Social Networks, and New Venture Growth," Post-Print hal-02313079, HAL.
    15. Yoon Hee Kim, 2017. "The Effects of Major Customer Networks on Supplier Profitability," Journal of Supply Chain Management, Institute for Supply Management, vol. 53(1), pages 26-40, January.
    16. Elcio M. Tachizawa & Chee Yew Wong, 2015. "The Performance of Green Supply Chain Management Governance Mechanisms: A Supply Network and Complexity Perspective," Journal of Supply Chain Management, Institute for Supply Management, vol. 51(3), pages 18-32, July.
    17. Corey C. Phelps, 2010. "A longitudinal study of the influence of alliance network structure and composition on firm exploratory innovation," Post-Print hal-00528392, HAL.
    18. Joel F. Houston & Chen Lin & Zhongyan Zhu, 2016. "The Financial Implications of Supply Chain Changes," Management Science, INFORMS, vol. 62(9), pages 2520-2542, September.
    19. Joakim Wincent & Sergey Anokhin & Daniel Örtqvist & Erkko Autio, 2010. "Quality Meets Structure: Generalized Reciprocity and Firm‐Level Advantage in Strategic Networks," Journal of Management Studies, Wiley Blackwell, vol. 47(4), pages 597-624, June.
    20. Isin Guler & Atul Nerkar, 2012. "The impact of global and local cohesion on innovation in the pharmaceutical industry," Strategic Management Journal, Wiley Blackwell, vol. 33(5), pages 535-549, May.
    21. Bat Batjargal & Michael Hitt & Anne Tsui & Jean-Luc Arregle & Justin Webb & Toyah Miller, 2013. "Institutional Polycentrism, Entrepreneurs' Social Networks, and New Venture Growth," Post-Print hal-02276709, HAL.
    22. Maureen Blyler & Russell W. Coff, 2003. "Dynamic capabilities, social capital, and rent appropriation: ties that split pies," Strategic Management Journal, Wiley Blackwell, vol. 24(7), pages 677-686, July.
    23. Geoffrey Martin & Remzi Gözübüyük & Manuel Becerra, 2015. "Interlocks and firm performance: The role of uncertainty in the directorate interlock-performance relationship," Strategic Management Journal, Wiley Blackwell, vol. 36(2), pages 235-253, February.
    24. Andrew V. Shipilov, 2009. "Firm Scope Experience, Historic Multimarket Contact with Partners, Centrality, and the Relationship Between Structural Holes and Performance," Organization Science, INFORMS, vol. 20(1), pages 85-106, February.
    25. Bat Batjargal, 2013. "Institutional Polycentrism, Entrepreneurs??? Social Networks, And New Venture Growth," William Davidson Institute Working Papers Series wp1060, William Davidson Institute at the University of Michigan.
    26. Haibin Yang & Zhiang (John) Lin & Ya (Lisa) Lin, 2010. "A multilevel framework of firm boundaries: firm characteristics, dyadic differences, and network attributes," Strategic Management Journal, Wiley Blackwell, vol. 31(3), pages 237-261, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Morteza Yazdani & Dragan Pamucar & Prasenjit Chatterjee & Ali Ebadi Torkayesh, 2022. "“A multi-tier sustainable food supplier selection model under uncertainty”," Operations Management Research, Springer, vol. 15(1), pages 116-145, June.
    2. Wang, Yonggui & Zhang, Lu, 2021. "How customer entitlement influences supplier performance in B2B relationships in emerging economy? A moderated mediation model of institutional environments," Journal of Business Research, Elsevier, vol. 134(C), pages 689-700.
    3. Deepti Aggrawal & Adarsh Anand & Gunjan Bansal & Gareth H. Davies & Parisa Maroufkhani & Yogesh K. Dwivedi, 2022. "RETRACTED ARTICLE: Modelling product lines diffusion: a framework incorporating competitive brands for sustainable innovations," Operations Management Research, Springer, vol. 15(3), pages 760-772, December.
    4. Donghun Lee & Jongeun Kim & Seokwoo Song & Kwanho Kim, 2023. "Discovering Sustainable Business Partnerships through a Deep Learning Approach to Maximize Potential Value," Sustainability, MDPI, vol. 15(22), pages 1-14, November.
    5. Ahrom Kang & Joongsan Oh, 2023. "The configuration and evolution of Korean automotive supply network: an empirical study based on k-core network analysis," Operations Management Research, Springer, vol. 16(3), pages 1251-1270, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Haifeng Wang & Longwei Tian & Yuan Li, 2019. "A tale of two cultures: Social networks and competitive advantage," Asia Pacific Journal of Management, Springer, vol. 36(2), pages 321-347, June.
    2. Haifeng Wang & Pengfei Han & Weishu Liu, 2018. "How to Improve Sustainable Competitive Advantage from the Distributor and the Supplier Networks: Evidence from the Paper-Making Industry in China," Sustainability, MDPI, vol. 10(6), pages 1-13, June.
    3. Hongjuan Zhang & Liang Wang & Rong Han, 2019. "The China-West divide on social capital: A meta-analysis," Asia Pacific Journal of Management, Springer, vol. 36(3), pages 745-772, September.
    4. Laurence Saglietto & Cécile Cézanne & Delphine David, 2020. "Research On Structural Holes: An Assessment On Measurement Issues," Journal of Economic Surveys, Wiley Blackwell, vol. 34(3), pages 572-593, July.
    5. Boris Bauke & Thorsten Semrau & Zheng Han, 2016. "Relational trust and new ventures’ performance: the moderating impact of national-level institutional weakness," International Entrepreneurship and Management Journal, Springer, vol. 12(4), pages 1007-1024, December.
    6. Wen, Jinyan & Qualls, William J. & Zeng, Deming, 2021. "To explore or exploit: The influence of inter-firm R&D network diversity and structural holes on innovation outcomes," Technovation, Elsevier, vol. 100(C).
    7. Simone Santoni & Paolo Ferri & Maria Lusiani, 2013. "Novelty Conduits and Forms of Network Ties: To Bond or to Bridge?," Working Papers 34, Department of Management, Università Ca' Foscari Venezia.
    8. Nason, Robert S. & Wiklund, Johan & McKelvie, Alexander & Hitt, Michael & Yu, Wei, 2019. "Orchestrating boundaries: The effect of R&D boundary permeability on new venture growth," Journal of Business Venturing, Elsevier, vol. 34(1), pages 63-79.
    9. Miriam Bird & Thomas Zellweger, 2018. "Relational Embeddedness and Firm Growth: Comparing Spousal and Sibling Entrepreneurs," Organization Science, INFORMS, vol. 29(2), pages 264-283, April.
    10. Huatao Peng & Bingbing Li & Yang Liu, 2022. "How Social Network Influences the Growth of Entrepreneurial Enterprises: Perspective on Organizational and Personal Network," SAGE Open, , vol. 12(2), pages 21582440221, June.
    11. Hugo Ernesto Martínez Ardila & Julián Eduardo Mora Moreno & Jaime Alberto Camacho Pico, 2020. "Networks of collaborative alliances: the second order interfirm technological distance and innovation performance," The Journal of Technology Transfer, Springer, vol. 45(4), pages 1255-1282, August.
    12. Bai, Wensong & Johanson, Martin & Oliveira, Luis & Ratajczak-Mrozek, Milena, 2021. "The role of business and social networks in the effectual internationalization: Insights from emerging market SMEs," Journal of Business Research, Elsevier, vol. 129(C), pages 96-109.
    13. Sandberg, Susanne & Sui, Sui & Baum, Matthias, 2019. "Effects of prior market experiences and firm-specific resources on developed economy SMEs' export exit from emerging markets: Complementary or compensatory?," Journal of Business Research, Elsevier, vol. 98(C), pages 489-502.
    14. Dwibedy, Punyashlok, 2022. "Informal competition and product innovation decisions of new ventures and incumbents across developing and transitioning countries," Journal of Business Venturing Insights, Elsevier, vol. 17(C).
    15. Jean–Luc Arregle & Bat Batjargal & Michael A. Hitt & Justin W. Webb & Toyah Miller & Anne S. Tsui, 2015. "Family Ties in Entrepreneurs’ Social Networks and New Venture Growth," Entrepreneurship Theory and Practice, , vol. 39(2), pages 313-344, March.
    16. Zhou, Dan & Yan, Tingting & Zhao, Lilong & Guo, Jingjing, 2020. "Performance implications of servitization: Does a Manufacturer's service supply network matter?," International Journal of Production Economics, Elsevier, vol. 219(C), pages 31-42.
    17. Boddewyn, Jean J. & Peng, Mike W., 2021. "Reciprocity and informal institutions in international market entry," Journal of World Business, Elsevier, vol. 56(1).
    18. Sohrab Soleimanof & Kulraj Singh & Daniel T. Holt, 2019. "Micro-Foundations of Corporate Entrepreneurship in Family Firms: An Institution-Based Perspective," Entrepreneurship Theory and Practice, , vol. 43(2), pages 274-281, March.
    19. Liu, Xiaohui & Xia, Tianjiao & Jiangyong, Lu & Lin, Daomi, 2019. "Under what institutional conditions does overseas business knowledge contribute to firm performance?," International Business Review, Elsevier, vol. 28(3), pages 588-602.
    20. Hongjuan Zhang & Rong Han & Liang Wang & Runhui Lin, 2021. "Social capital in China: a systematic literature review," Asian Business & Management, Palgrave Macmillan, vol. 20(1), pages 32-77, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:opmare:v:13:y:2020:i:1:d:10.1007_s12063-020-00153-0. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.