Supply Chain Portfolio Characteristics: Do They Relate to Post-IPO Financial Performance?

• Published in: Transportation journal Vol. 57; no. 4; pp. 429 - 463
• Main Authors: Schwieterman, Matthew A., Goldsby, Thomas J., Rungtusanatham, M. Johnny, Knemeyer, A. Michael
• Format: Journal Article
• Language: English
• Published: Lock Haven Pennsylvania State University Press 01-11-2018; Penn State University Press
• Subjects: Business; Business entities; Computer peripherals; Correlation analysis; Customers; Dependence; Financial margins; Financial performance; Financial portfolios; Initial public offerings; Marketing strategies; portfolio; power; Profitable firms; Public Policy; relationships; Sales growth; Suppliers; supply chain; Supply chain management; Supply chains; Technology
• ISSN: 0041-1612; 2157-328X
• DOI: 10.5325/transportationj.57.4.0429

In the years following an initial public offering (IPO), firms have to manage portfolios of customers and suppliers in order to achieve growth goals during this particularly uncertain time in a firm's lifecycle. The current research sheds light on three key questions: (1) Do firms benefit from conducting a large portion of business with a large customer or supplier? (2) Is it beneficial if the focal firm represents a large portion of business for customers and suppliers? And, (3) is balanced portfolio dependence helpful to a focal firm? The extant literature, drawing insights from the logics of power and embeddedness, is divided on these questions. We utilize a secondary data set of focal firms (post-IPO) and their portfolios of relationships with customers and suppliers to explain where each theoretical perspective applies to the management of supply chain portfolios.