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Effects of channel members’ customer-centric structures on supplier performance

Author

Listed:
  • Andrew T. Crecelius

    (University of Alabama at Birmingham)

  • Justin M. Lawrence

    (Michigan State University)

  • Ju-Yeon Lee

    (Iowa State University)

  • Son K. Lam

    (University of Georgia)

  • Lisa K. Scheer

    (University of Missouri)

Abstract

The authors examine the upstream impact of a firm’s customer-centric organizational structure on its supplier, including both positive effects of greater revenue and negative effects of demanding services that raise the supplier’s costs. These countervailing effects on supplier profit are moderated by characteristics of the firm’s buying center and the firm–supplier relationship, in accordance with the value capture literature. Study 1 examines the proposed firm-level financial effects of the dual processes, using surveys of industrial firms matched with secondary data from their supplier. Study 2 assesses the supplier-level net impact of the dual processes, using publicly available data to shed light on the upstream financial impact of firms’ customer-centric structures across a broad sample of Fortune 500 suppliers. Findings highlight the need for a supplier to proactively assess the structure of each buyer-firm, as a supplier can take steps to mitigate cost effects and enhance revenue effects.

Suggested Citation

  • Andrew T. Crecelius & Justin M. Lawrence & Ju-Yeon Lee & Son K. Lam & Lisa K. Scheer, 2019. "Effects of channel members’ customer-centric structures on supplier performance," Journal of the Academy of Marketing Science, Springer, vol. 47(1), pages 56-75, January.
    • Handle: RePEc:spr:joamsc:v:47:y:2019:i:1:d:10.1007_s11747-018-0606-5
    DOI: 10.1007/s11747-018-0606-5
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