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A Theory of the Nexus Supplier: A Critical Supplier From A Network Perspective

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  • Tingting Yan
  • Thomas Y. Choi
  • Yusoon Kim
  • Yang Yang

Abstract

type="main" xml:id="jscm12070-abs-0001"> We introduce a new type of critical supplier—the nexus supplier—that becomes evident when we consider suppliers from a network perspective. The extant literature focuses on the importance of strategic suppliers and identifies strategic suppliers as critical due to their significant impact on a buying firm's profit and risk position. These strategic suppliers are considered one-at-a-time and tend to be top-tier suppliers. In contrast, a nexus supplier can come from anywhere in a multitier supply network and is critical due to its network position and the resultant portfolio of interorganizational ties. In this study, we offer a theory of the nexus supplier by integrating the supply management and social network literature. The theory is presented in the form of typologies, which articulate three ideal types of nexus suppliers and how they distinctively influence a focal buying firm's operational performance. We use real-world examples to build our arguments. We discuss implications of the nexus supplier for both theory and practice.

Suggested Citation

  • Tingting Yan & Thomas Y. Choi & Yusoon Kim & Yang Yang, 2015. "A Theory of the Nexus Supplier: A Critical Supplier From A Network Perspective," Journal of Supply Chain Management, Institute for Supply Management, vol. 51(1), pages 52-66, January.
    • Handle: RePEc:bla:jscmgt:v:51:y:2015:i:1:p:52-66
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    Cited by:

    1. Leonardo Marques & Marina Dastre Manzanares, 2022. "Towards social network metrics for supply network circularity," Post-Print hal-04048361, HAL.
    2. Simpson, N.C. & Tacheva, Zhasmina & Kao, Ta-Wei, 2023. "Semi-directedness: New network concepts for supply chain research," International Journal of Production Economics, Elsevier, vol. 256(C).
    3. Scarpin, Marcia Regina Santiago & Scarpin, Jorge Eduardo & Krespi Musial, Nayane Thais & Nakamura, Wilson Toshiro, 2022. "The implications of COVID-19: Bullwhip and ripple effects in global supply chains," International Journal of Production Economics, Elsevier, vol. 251(C).
    4. Ricardo Silveira Martins & Janaina Siegler & Armando Souza-Junior & Barbara Flynn & Guilherme Silveira Martins, 2019. "Go Global or Stay Local? Understanding How Fiscal Incentives Reshape Supply Networks," RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração, vol. 23(5), pages 654-671.
    5. Jakub Marcinkowski, 2022. "Humanitarian Actors’ Cooperation Network in the Social Sustainability Context. Evidence from Poland," Sustainability, MDPI, vol. 14(9), pages 1-17, May.
    6. Rachel Alexander, 2020. "Emerging Roles of Lead Buyer Governance for Sustainability Across Global Production Networks," Journal of Business Ethics, Springer, vol. 162(2), pages 269-290, March.
    7. Thomas Johnsen & Marie-Anne Le Dain & Nadine Kiratli & Holger Schiele, 2022. "Editorial: Purchasing and innovation: Past, present and future of the field of research," Post-Print hal-03761525, HAL.
    8. Stefan Gold & Thomas Chesney & Tim Gruchmann & Alexander Trautrims, 2020. "Diffusion of labor standards through supplier–subcontractor networks: An agent‐based model," Journal of Industrial Ecology, Yale University, vol. 24(6), pages 1274-1286, December.
    9. John P Berns & Maria Gondo & Christian Sellar, 2021. "Whole country-of-origin network development abroad," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(3), pages 479-503, April.
    10. Aintzira Oñederra-Aramendi & Mirene Begiristain-Zubillaga & Mamen Cuellar-Padilla, 2023. "Characterisation of food governance for alternative and sustainable food systems: a systematic review," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-32, December.
    11. Kao, Ta-Wei (Daniel) & Simpson, N.C. & Shao, Benjamin B.M. & Lin, Winston T., 2017. "Relating supply network structure to productive efficiency: A multi-stage empirical investigation," European Journal of Operational Research, Elsevier, vol. 259(2), pages 469-485.
    12. Alexander, Rachel, 2020. "Emerging roles of lead buyer governance for sustainability across global production networks," LSE Research Online Documents on Economics 100908, London School of Economics and Political Science, LSE Library.
    13. Seiler, A. & Papanagnou, C. & Scarf, P., 2020. "On the relationship between financial performance and position of businesses in supply chain networks," International Journal of Production Economics, Elsevier, vol. 227(C).
    14. Sarah Yini Gao & David Simchi-Levi & Chung-Piaw Teo & Zhenzhen Yan, 2019. "Disruption Risk Mitigation in Supply Chains: The Risk Exposure Index Revisited," Operations Research, INFORMS, vol. 67(3), pages 831-852, May.
    15. Amalesh Sharma & V. Kumar & Jun Yan & Sourav Bikash Borah & Anirban Adhikary, 2019. "Understanding the structural characteristics of a firm’s whole buyer–supplier network and its impact on international business performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(3), pages 365-392, April.
    16. 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.
    17. Kunz, Nathan & Chesney, Thomas & Trautrims, Alexander & Gold, Stefan, 2023. "Adoption and transferability of joint interventions to fight modern slavery in food supply chains," International Journal of Production Economics, Elsevier, vol. 258(C).
    18. Christine Harland, 2021. "Discontinuous Wefts: Weaving a More Interconnected Supply Chain Management Tapestry," Journal of Supply Chain Management, Institute for Supply Management, vol. 57(1), pages 27-40, January.
    19. (Daniel) Kao, Ta-Wei & Su, Hung-Chung & Chen, Yi-Su, 2019. "The curvilinear relationships between structural embeddedness and productive efficiency: An exploratory study," International Journal of Production Economics, Elsevier, vol. 212(C), pages 176-185.
    20. Viljoen, Nadia M. & Joubert, Johan W., 2019. "Supply chain micro-communities in urban areas," Journal of Transport Geography, Elsevier, vol. 74(C), pages 211-222.
    21. MacCarthy, Bart L. & Ahmed, Wafaa A.H. & Demirel, Guven, 2022. "Mapping the supply chain: Why, what and how?," International Journal of Production Economics, Elsevier, vol. 250(C).

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