Resumé

Purpose
This paper explores value creation configurations pursued by suppliers in high-cost countries. The proposed value creation configuration approaches are seen as means for supplier firms to strengthen their competitiveness when faced with increasing global sourcing.
Design/methodology/approach
Survey data on supplier firms in Denmark are used in a hierarchical cluster analysis. The identified clusters are interpreted as expressions of different value creation configurations pursued by suppliers with regards to relations with their most important customers.
Findings
Three types of suppliers are identified: (1) detached suppliers, which seek to create customer net benefits through low costs; (2) technology-focused suppliers, which design value creation around benefits linked to being at the technological forefront; and (3) integrated suppliers, which share characteristics with technology-focused suppliers, but also align closely with a relatively broader range of customer activities.
Research limitations/implications
Limitations include the specificity of findings from one small, open economy with an extensive supplier base.
Originality/value
Studies of industrial competitiveness of high-cost countries tend to overlook suppliers’ developments of value-creating activities to maintain customer relationships. The present paper takes a supplier perspective to deepen the empirically based understanding of value creation configurations followed by high-cost country suppliers in the context of increasing global competition and production relocation. Theoretical implications as well as lessons for managers in
supplier firms from the identification of the different approaches to value creation configurations are presented.
OriginalsprogEngelsk
TidsskriftJournal of Global Operations and Strategic Sourcing
ISSN2398-5364
DOI
StatusAccepteret/In press - 2019

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Suppliers
Costs
Value creation
Competitiveness
Customer relationship
Global competition
Hierarchical cluster analysis
Global sourcing
Design methodology
Relocation
Managers
Supplier development
Specificity
Denmark
Small open economy
Integrated

Citer dette

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abstract = "PurposeThis paper explores value creation configurations pursued by suppliers in high-cost countries. The proposed value creation configuration approaches are seen as means for supplier firms to strengthen their competitiveness when faced with increasing global sourcing.Design/methodology/approachSurvey data on supplier firms in Denmark are used in a hierarchical cluster analysis. The identified clusters are interpreted as expressions of different value creation configurations pursued by suppliers with regards to relations with their most important customers.FindingsThree types of suppliers are identified: (1) detached suppliers, which seek to create customer net benefits through low costs; (2) technology-focused suppliers, which design value creation around benefits linked to being at the technological forefront; and (3) integrated suppliers, which share characteristics with technology-focused suppliers, but also align closely with a relatively broader range of customer activities.Research limitations/implicationsLimitations include the specificity of findings from one small, open economy with an extensive supplier base.Originality/valueStudies of industrial competitiveness of high-cost countries tend to overlook suppliers’ developments of value-creating activities to maintain customer relationships. The present paper takes a supplier perspective to deepen the empirically based understanding of value creation configurations followed by high-cost country suppliers in the context of increasing global competition and production relocation. Theoretical implications as well as lessons for managers insupplier firms from the identification of the different approaches to value creation configurations are presented.",
keywords = "Supplier taxonomy, Buyer-supplier relationships, Collaboration, Value configuration",
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year = "2019",
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TY - JOUR

T1 - Supplier value creation configurations in high-cost countries

AU - Andersen, Poul Houman

AU - Drejer, Ina

AU - Østergaard, Christian Richter

AU - Søberg, Peder Veng

AU - Wæhrens, Brian Vejrum

PY - 2019

Y1 - 2019

N2 - PurposeThis paper explores value creation configurations pursued by suppliers in high-cost countries. The proposed value creation configuration approaches are seen as means for supplier firms to strengthen their competitiveness when faced with increasing global sourcing.Design/methodology/approachSurvey data on supplier firms in Denmark are used in a hierarchical cluster analysis. The identified clusters are interpreted as expressions of different value creation configurations pursued by suppliers with regards to relations with their most important customers.FindingsThree types of suppliers are identified: (1) detached suppliers, which seek to create customer net benefits through low costs; (2) technology-focused suppliers, which design value creation around benefits linked to being at the technological forefront; and (3) integrated suppliers, which share characteristics with technology-focused suppliers, but also align closely with a relatively broader range of customer activities.Research limitations/implicationsLimitations include the specificity of findings from one small, open economy with an extensive supplier base.Originality/valueStudies of industrial competitiveness of high-cost countries tend to overlook suppliers’ developments of value-creating activities to maintain customer relationships. The present paper takes a supplier perspective to deepen the empirically based understanding of value creation configurations followed by high-cost country suppliers in the context of increasing global competition and production relocation. Theoretical implications as well as lessons for managers insupplier firms from the identification of the different approaches to value creation configurations are presented.

AB - PurposeThis paper explores value creation configurations pursued by suppliers in high-cost countries. The proposed value creation configuration approaches are seen as means for supplier firms to strengthen their competitiveness when faced with increasing global sourcing.Design/methodology/approachSurvey data on supplier firms in Denmark are used in a hierarchical cluster analysis. The identified clusters are interpreted as expressions of different value creation configurations pursued by suppliers with regards to relations with their most important customers.FindingsThree types of suppliers are identified: (1) detached suppliers, which seek to create customer net benefits through low costs; (2) technology-focused suppliers, which design value creation around benefits linked to being at the technological forefront; and (3) integrated suppliers, which share characteristics with technology-focused suppliers, but also align closely with a relatively broader range of customer activities.Research limitations/implicationsLimitations include the specificity of findings from one small, open economy with an extensive supplier base.Originality/valueStudies of industrial competitiveness of high-cost countries tend to overlook suppliers’ developments of value-creating activities to maintain customer relationships. The present paper takes a supplier perspective to deepen the empirically based understanding of value creation configurations followed by high-cost country suppliers in the context of increasing global competition and production relocation. Theoretical implications as well as lessons for managers insupplier firms from the identification of the different approaches to value creation configurations are presented.

KW - Supplier taxonomy

KW - Buyer-supplier relationships

KW - Collaboration

KW - Value configuration

U2 - 10.1108/JGOSS-07-2018-0026

DO - 10.1108/JGOSS-07-2018-0026

M3 - Journal article

JO - Journal of Global Operations and Strategic Sourcing

JF - Journal of Global Operations and Strategic Sourcing

SN - 2398-5364

ER -