Managing Material and Logistics Embeddedness: Material Buyers' Perspective

Volume 11 Issue 4 March - May 2017

Research Paper

Managing Material and Logistics Embeddedness: Material Buyers' Perspective

Harash Sachdev*, Russell Merz**

*-** Professor, Department of Marketing, Eastern Michigan University, Michigan, USA.

Sachdev, H., and Merz, R. (2017). Managing Material and Logistics Embeddedness: Material Buyers’ Perspective. i-manager’s Journal on Management, 11(4), 1-20. https://doi.org/10.26634/jmgt.11.4.13448

Abstract

Because an organization's visibility and decision-making abilities in a supply network is limited by its embeddedness, managing the embedded activities may be affected by non-contractual forms of governance and capability. Whatever the organization cannot see, it can't efficiently control. In this paper, the authors have studied non-contractual governance, dependence, and reliance in a manufacturer-vendor dyad in light of logistics, spill-over customer-centric service, and performance. Relational norms (information sharing and flexibility), trust, commitment, and bilateral dependence were hypothesized to explain manufacturers' logistics capability and customer-centric services. Using SEM-PLS (Structural Equation Modeling using Partial Least Squares) approach, all the hypothesized paths were proven with adequate R2 explained for each construct; R2 for financial performance was low.