© 2005 thomas and joan read center idis – 444 issues in leadership perceptions of suppliers and...

© 2005 Thomas and Joan Read Center

IDIS – 444ISSUES IN LEADERSHIP

Perceptions of Suppliers and

Distributors

Daniel F. Jennings Ph.D., PEAndrew Rader Professor of Industrial Distribution

Texas A&M University


IDIS – 444ISSUES IN LEADERSHIP 2

Five Distribution Channels

• Electronics

• Electrical

• Plumbing

• Building Materials

• Associated Equipment



Developing A Scale To Measure Value Activities

• Developed population for each of the five channels (Total = 2100 firms; 1050 suppliers and 1050 distributors).

• Selected two supplier firm participants and two distributor firm participants from each channel (N = 20). Became executive panel.



Developing A Scale To Measure Value Activities

• Executive Panel received instructions on Model of Competitive Advantage

• Executive Panel were asked to individually name activities that would add value to their firm



ResultsExecutive Panel

• Initial listing contained 37 activities;

• Using Delphi process, an agreement reached on seven activities;

• Seven activities ranked by the executive panel and reduced to four activities



Results Student Panel

• 25 MID students;

• 121 undergraduate students enrolled in two classes;

• Used seven activities ranked by the executive panel. Reduced to four activities



The Four Activities• Supplier Relationships

• Customer Relationships

• Competitor Relationships

• Top Management Activities



Questionnaire

The Question: For each of the following statements indicate the number that best describes the potential to which the statement adds value to your firm’s success

5 (very high); 4 (high); 3 (neither high nor low); 2 (low); 1 (very low)



Supplier Relationships [Var 01 – Var 04]

1. Communicating with suppliers

2. Determining supplier satisfaction

3. Gathering data about supplier capabilities

4. Identifying specific opportunities to generate discounts



Customer Relationships [Var 05- Var 08]

5. Communicating with customers

6. Determining customer satisfaction

7. Gathering data about customers

8. Identifying specific opportunities to generate sales



Competitor Analysis[Var 09-Var 12]

9. Identifying competitors

10. Identifying strengths and weaknesses of competitors

11. Comparing strengths and weaknesses of your firm to that of competitors

12. Identifying future actions of competitors



Top Management Activities[Var 13-Var 16]

13. Involvement of top management in operating the business

14. Encourages independent action by subordinates

15. Willing to introduce newness and novelty through experimental and creative processes

16. Making decisions and taking action without knowledge of probable outcomes



Distribution of RespondentsBy Firms

Initial Sample SizeInitial Sample Size Number of ResponsesNumber of Responses ResponsResponse Rate %e Rate %

ChannelChannel SuppliersSuppliers DistributorDistributorss

TotaTotall

SuppliersSuppliers DistributorDistributorss

TotaTotall

ElectronicElectronicss

7070 7070 140140 2323 3030 5353 3838

ElectricalElectrical 8080 8080 160160 3434 3131 6565 4141

PlumbingPlumbing 7070 7070 140140 2222 2727 4949 3535

Building Building MaterialMaterial

7070 7070 140140 1919 1717 3636 2626

AssociateAssociated d

EquipmenEquipmentt

7070 7070 140140 2121 2828 4949 3535

TotalTotal 360360 360360 720720 119119 133133 252252 3535



Data Analysis• Construct Reliability (Cronbach Alpha)

• Principal Axis Factor Analysis



Cronbach Alpha• Value ranges from 0 to 1.0

• Value = or > than 0.6 indicates reliability

• Supplier Relationships—0.804

• Customer Relationships—0.775

• Competitor Analysis—0.625

• Top Management Activities—0. 726



Factor Analysis

• Kaiser, Meyer, Olkin (KMO) statistic=0.645

• KMO = or > 0.600 is acceptable

• Bartlett’s Test to measure significance– p value = 0.000



Factor Analysis• All 16 items are significant;

• But loaded on five factors rather than four



18

The Five Factors (Activities)

• Supplier Relationships

• Customer Relationships

• Competitor Analysis

• Top Management Activities

• Competitor Identification



Supplier Relationships [Var 01 – Var 04]

1. Communicating with suppliers

2. Determining supplier satisfaction

3. Gathering data about supplier capabilities

4. Identifying specific opportunities to generate discounts



Customer Relationships [Var 05- Var 08]

5. Communicating with customers

6. Determining customer satisfaction

7. Gathering data about customers

8. Identifying specific opportunities to generate sales



Competitor Analysis[Var 10, Var 11 & Var 15]

10. Identifying strengths and weaknesses of competitors

11. Comparing strengths and weaknesses of your firm to that of competitors

15. Willing to introduce newness and novelty through experimental and creative processes



Top Management Activities[Var 13, Var 14 & Var 16]

13. Involvement of top management in operating the business

13. Encourages independent action by subordinates

16. Making decisions and taking action without knowledge of probable outcomes



Competitor Identification[Var 09 & Var 12]

9. Identifying competitors

12. Identifying future actions of competitors



Cronbach Alphas for theFive Factors (Activities)

• Supplier Relationships—0.804

• Customer Relationships—0.775

• Competitor Analysis—0.601

• Top Management Activities—0.719

• Competitor Identification—0.748



Differences

• By Channel Type

• By Channel Role

• By Position



Criteria• Five Economic Value Activities

• Performance (GMROI)

• Age of Sales Managers

• Education of Sales Managers

• Job Tenure of Sales Managers

• Years of Association with CEO



Daniel F. Jennings, Ph.D., P.E. Texas A&M University

3367 TAMUCollege Station, TX 77843-3367

Phone: (979) 845-4984Fax: (979) 845-4980

[email protected]

© 2008 TAMU

© 2005 thomas and joan read center idis – 444 issues in leadership perceptions of suppliers and...

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