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

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 buyin...

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Bibliographic Details
Published in:The journal of supply chain management 2015-01, Vol.51 (1), p.52-66
Main Authors: Yan, Tingting, Choi, Thomas Y., Kim, Yusoon, Yang, Yang
Format: Article
Language:English
Subjects:
Analysis
Business networks (Social groups)
centrality
conceptual theory building
diversity
Economic aspects
focal firm
Forecasts and trends
Influence
Logistics services
Management
nexus supplier
Organization theory
Product lines
Risk management
social network theory
Social networks
strategy
structural embeddedness
Studies
Suppliers
Supply chain management
Supply chains
supply network
typologies
Vendor relations
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Summary: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.
ISSN:1523-2409
1745-493X
DOI:10.1111/jscm.12070