We explore the incentives of a vertically integrated incumbent firm to license the production technology of its core input to an external firm, transforming the licensee into its input supplier. We find that the incumbent opts for licensing even when licensing also transforms the licensee into...

This paper analyzes a mechanism through which a supplier of unknown quality can overcome its asymmetric information problem by selling via a reputable downstream rm. The supplier’s adverse-selection problem can be solved if the downstream rm has established a reputation for delivering high...

The research explores and examines factors for supplier evaluation and its impact on process improvement particularly aiming on a steel pipe manufacturing firm in Gujarat, India. Design/Methodology/approach: The conceptual research framework was developed and hypotheses were stated considering...

Public support of research typically relies on the notion that universities are engines of economic development, and that university research is a primary driver of high wage localized economic activity. Yet the evidence supporting that notion is based on aggregate descriptive data, rather than...

The importance of power is underlined by many scientists who view it as a key behavioral construct. Power distinguishes itself as an effective tool in coordinating and promoting harmonious relationships, solving conflicts, and enhancing performance. An important challenge is to determine what...

Die Sicherstellung von adäquaten Arbeitsbedingungen in Lieferketten ist Gegenstand einer intensiv geführten Debatte in der Wirtschaft, der Politik und der Zivilgesellschaft. Als Antwort auf die mit zunehmendem Nachdruck formulierten Forderungen, die sozialen Missstände bei Zulieferern zu...

Firmen stehen vor dem Problem, dass Lieferanten ihre soziale und ökologische Performance oft geschönt darstellen. Um diese Informationsverzerrung aufzulösen, werden bei neuen Lieferantenverträgen Kontrollmechanismen entwickelt, die eine verbesserte Überprüfung der Performance zulassen...

We develop a simple theoretical model of a long term buyer-supplier relationship with non-contractible buyer specific R&D investment, and derive predictions on the effects of trust and competition on suppliers' investment and buyers' procurement strategies. We address these issues empirically...

For the procurement of complex goods the early exchange of information is important to avoid costly renegotiation ex post. We show that this is achieved by bilateral negotiations but not by auctions. Negotiations strictly outperforms auctions if sellers are likely to have superior information...