executive master of industrial distribution residency week perceptions of suppliers and distributors...
TRANSCRIPT
Executive Master of Industrial Distribution
Residency Week
Perceptions of Suppliers and Distributors Regarding Competitive Advantage
Daniel F. Jennings Ph.D., PEAndrew Rader Professor of Industrial Distribution
Texas A&M UniversityAugust 2008
22
Five Distribution ChannelsFive Distribution Channels
ElectronicsElectronics ElectricalElectrical PlumbingPlumbing Building MaterialsBuilding Materials Associated EquipmentAssociated Equipment
33
Developing A Scale To Measure Developing A Scale To Measure
Strategic CapabilitiesStrategic Capabilities
Developed population for each of the Developed population for each of the five channels (Total = 2100 firms; five channels (Total = 2100 firms; 1050 suppliers and 1050 distributors).1050 suppliers and 1050 distributors).
Selected two supplier firm participants Selected two supplier firm participants and two distributor firm participants and two distributor firm participants from each channel (N = 20). Became from each channel (N = 20). Became executive panel.executive panel.
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Developing A Scale To Measure Developing A Scale To Measure
Strategic CapabilitiesStrategic Capabilities
Executive Panel received instructions Executive Panel received instructions on Model of Competitive Advantageon Model of Competitive Advantage
Executive Panel were asked to Executive Panel were asked to individually name activities that individually name activities that would add value to their firmwould add value to their firm
55
ResultsResultsExecutive PanelExecutive Panel
Initial listing contained 37 activities;Initial listing contained 37 activities;
Using Delphi process, an agreement Using Delphi process, an agreement reached on seven activities;reached on seven activities;
Seven activities ranked by the executive Seven activities ranked by the executive panel and reduced to four activitiespanel and reduced to four activities
66
ResultsResultsStudent PanelStudent Panel
25 MID students;25 MID students;
121 undergraduate students enrolled in 121 undergraduate students enrolled in two classes;two classes;
Used seven activities ranked by the Used seven activities ranked by the executive panel. Reduced to four executive panel. Reduced to four activitiesactivities
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The Four ActivitiesThe Four Activities
Supplier RelationshipsSupplier Relationships
Customer RelationshipsCustomer Relationships
Competitor RelationshipsCompetitor Relationships
Top Management ActivitiesTop Management Activities
88
QuestionnaireQuestionnaire
The Question: For each of the following The Question: For each of the following statements indicate the number that statements indicate the number that best describes the potential to which best describes the potential to which the statement adds value to your the statement adds value to your firm’s successfirm’s success
5 (very high); 4 (high); 3 (neither high 5 (very high); 4 (high); 3 (neither high nor low); 2 (low); 1 (very low)nor low); 2 (low); 1 (very low)
99
Supplier Relationships Supplier Relationships [Var 01 – Var 04][Var 01 – Var 04]
1.1. Communicating with suppliersCommunicating with suppliers
2.2. Determining supplier satisfactionDetermining supplier satisfaction
3.3. Gathering data about supplier Gathering data about supplier capabilitiescapabilities
4.4. Identifying specific opportunities to Identifying specific opportunities to generate discountsgenerate discounts
1010
Customer Relationships Customer Relationships [Var 05- Var 08][Var 05- Var 08]
5.5. Communicating with customersCommunicating with customers
6.6. Determining customer satisfactionDetermining customer satisfaction
7.7. Gathering data about customersGathering data about customers
8.8. Identifying specific opportunities to Identifying specific opportunities to generate salesgenerate sales
1111
Competitor AnalysisCompetitor Analysis[Var 09-Var 12][Var 09-Var 12]
9.9. Identifying competitorsIdentifying competitors
10.10. Identifying strengths and weaknesses of Identifying strengths and weaknesses of competitorscompetitors
11.11. Comparing strengths and weaknesses of Comparing strengths and weaknesses of your firm to that of competitorsyour firm to that of competitors
12.12. Identifying future actions of competitorsIdentifying future actions of competitors
1212
Top Management ActivitesTop Management Activites[Var 13-Var 16][Var 13-Var 16]
13.13. Involvement of top management in Involvement of top management in operating the businessoperating the business
14.14. Encourages independent action by Encourages independent action by subordinatessubordinates
15.15. Willing to introduce newness and novelty Willing to introduce newness and novelty through experimental and creative through experimental and creative processesprocesses
16.16. Making decisions and taking action Making decisions and taking action without knowledge of probable outcomeswithout knowledge of probable outcomes
1313
Distribution of RespondentsDistribution of RespondentsBy FirmsBy Firms
Initial Sample SizeInitial Sample Size Number of ResponsesNumber of Responses ResponsResponse Rate %e Rate %
ChannelChannel SupplierSupplierss
DistributorDistributorss
TotaTotall
SupplierSupplierss
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
1414
Data AnalysisData Analysis
Construct Reliability (Cronbach Construct Reliability (Cronbach Alpha)Alpha)
Principal Axis Factor Analysis Principal Axis Factor Analysis
1515
Cronbach AlphaCronbach Alpha
Value ranges from 0 to 1.0Value ranges from 0 to 1.0 Value = or > than 0.6 indicates Value = or > than 0.6 indicates
reliabilityreliability Supplier Relationships—0.804Supplier Relationships—0.804 Customer Relationships—0.775Customer Relationships—0.775 Competitor Analysis—0.625Competitor Analysis—0.625 Top Management Activities—0. 726 Top Management Activities—0. 726
1616
Factor AnalysisFactor Analysis
Kaiser, Meyer, Olkin (KMO) Kaiser, Meyer, Olkin (KMO) statistic=0.645statistic=0.645
KMO = or > 0.600 is acceptableKMO = or > 0.600 is acceptable Bartlett’s Test to measure Bartlett’s Test to measure
significancesignificance– p value = 0.000p value = 0.000
1717
Factor AnalysisFactor Analysis
All 16 items are significant;All 16 items are significant; But loaded on five factors rather than But loaded on five factors rather than
fourfour
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The Five Factors (Activities)The Five Factors (Activities)
Supplier RelationshipsSupplier Relationships Customer RelationshipsCustomer Relationships Competitor AnalysisCompetitor Analysis Top Management ActivitiesTop Management Activities Competitor Identification Competitor Identification
1919
Supplier Relationships Supplier Relationships [Var 01 – Var 04][Var 01 – Var 04]
1.1. Communicating with suppliersCommunicating with suppliers
2.2. Determining supplier satisfactionDetermining supplier satisfaction
3.3. Gathering data about supplier Gathering data about supplier capabilitiescapabilities
4.4. Identifying specific opportunities to Identifying specific opportunities to generate discountsgenerate discounts
2020
Customer Relationships Customer Relationships [Var 05- Var 08][Var 05- Var 08]
5.5. Communicating with customersCommunicating with customers
6.6. Determining customer satisfactionDetermining customer satisfaction
7.7. Gathering data about customersGathering data about customers
8.8. Identifying specific opportunities to Identifying specific opportunities to generate salesgenerate sales
2121
Competitor AnalysisCompetitor Analysis[Var 10, Var 11 & Var 15][Var 10, Var 11 & Var 15]
10.10. Identifying strengths and weaknesses of Identifying strengths and weaknesses of competitorscompetitors
11. 11. Comparing strengths and weaknesses of Comparing strengths and weaknesses of your firm to that of competitorsyour firm to that of competitors
15.15. Willing to introduce newness and novelty Willing to introduce newness and novelty through experimental and creative through experimental and creative processesprocesses
2222
Top Management ActivitesTop Management Activites[Var 13, Var 14 & Var 16][Var 13, Var 14 & Var 16]
13.13. Involvement of top management in Involvement of top management in operating the businessoperating the business
14.14. Encourages independent action by Encourages independent action by subordinatessubordinates
16. 16. Making decisions and taking action Making decisions and taking action without knowledge of probable without knowledge of probable outcomesoutcomes
2323
Competitor IdentificationCompetitor Identification[Var 09 & Var 12][Var 09 & Var 12]
9.9. Identifying competitorsIdentifying competitors
12.12. Identifying future actions of Identifying future actions of competitorscompetitors
2424
Cronbach Alphas for theCronbach Alphas for theFive Factors (Activities)Five Factors (Activities)
Supplier Relationships—0.804Supplier Relationships—0.804 Customer Relationships—0.775Customer Relationships—0.775 Competitor Analysis—0.601Competitor Analysis—0.601 Top Management Activities—0.719Top Management Activities—0.719 Competitor Identification—0.748 Competitor Identification—0.748
2525
DifferencesDifferences
By Channel TypeBy Channel Type By Channel RoleBy Channel Role By PositionBy Position
2626
CriteriaCriteria
Five Economic Value ActivitiesFive Economic Value Activities Performance (GMROI)Performance (GMROI) Age of Sales ManagersAge of Sales Managers Education of Sales ManagersEducation of Sales Managers Job Tenure of Sales ManagersJob Tenure of Sales Managers Years of Association with CEOYears 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
© 2008 TAMU