Small medium enterprises represent the largest share of revenues in the apparel and fashion business, compared to larger integrated companies. Small companies however often have to rely on larger suppliers in order to efficiently produce their products. These larger suppliers however will often prioritize companies that place larger orders. In the impossibility to deliver larger orders, how can these buyers make sure that a producer complies with their requests? In this paper we try to answer this question by applying concepts from the marketing channels literature to the specific context of fashion buying. We conclude that despite that the peculiarities of the fashion business do not foster the formation of long-term commitment, dependent companies can develop sources of power based on knowledge and reputation, but also based on applying non-mediated ways to manage the buyer-seller relationship. Examples of possible power sources for a buyer are: establishing a strong brand that a business partner will use in promoting its proposition, forcing suppliers to make transaction specific investments (which are not redeploy able), specializing in new products and technologies that a supplier will want to understand and use, developing knowledge that can be exchanged in the form of specialized personnel, investing in standardization of communication before the relationship starts in order to reduce administrative costs for both parties. Power sources are most effective when non-mediated, i.e. informal and based on reciprocity; ‘hard’ contracts with punishments (coercive power sources) in case of non-compliance will diminish the willingness to collaborate.
Abstract Business Process Management (BPM) is an important discipline for organizations to manage their business processes. Research shows that higher BPM-maturity leads to better process performance. However, contextual factors such as culture seem to influence this relationship. The purpose of this paper is to investigate the role of national culture on the relationship between BPM-maturity and process performance. A multiple linear regression analysis is performed based on data from six different countries within Europe. Although the results show a significant relationship between BPM-maturity and process performance, no significant moderation effect of national culture has been found. The cultural dimension long term orientation shows a weak negative correlation with both BPM-maturity and process performance. Through a post-hoc moderation analysis on each dimension of BPM-maturity, we further find that long term orientation negatively moderates the relationship between process improvement and process performance. Three other moderation effects are also discovered. The results of this study contribute to insights into the role of culture in the field of BPM.
MULTIFILE
