{"title":"Political Signaling via Equity Ownership: Impacts on Supplier Financial Performance","authors":"Wenming Wang, In-Mu Haw, Morgan Swink, Jun Chen","doi":"10.1002/joom.70036","DOIUrl":"https://doi.org/10.1002/joom.70036","url":null,"abstract":"<p>This study offers a new application of signaling theory to better understand the role of equity linkages and political influence on buyer–supplier relationships (BSRs). We examine the signaling effects of a politician's personal equity investment in a buyer firm on the financial performance of the supplier firms located in the politician's constituency, that is, “constituent suppliers.” Our results show that constituent suppliers' financial performance increases with the home politician ownership of their principal buyers, consistent with home politicians' incentives to benefit their constituencies and gain the support of local voters through promoting supplier–buyer relationships. Interestingly, such positive signaling effects on the financial performances of constituent suppliers vary with interdependence relationships between the home politician, investee buyer, and constituent supplier. The positive performance effect is stronger when investee buyers have greater political engagement, when politician owners hold more powerful congressional positions, and when the economic condition of the politician's constituency is poorer. In contrast, the positive performance effect is attenuated when buyers have higher economic dependence and switching costs vis-à-vis their suppliers. Our mechanism analyses reveal that the likelihood of increased sales as well as lowered operating and sales support costs partially mediate the relationship between supplier financial performance and home politician ownership in buyers, representing investee buyers' munificence. The investee buyers are also more likely to select firms located in their politician shareholders' constituencies as new suppliers, another mechanism of promoting business relationships with constituent firms. We further find that buyers with politician shareholders from their suppliers' constituencies receive more valuable government contract awards, and smaller firms exhibit significant performance gains. A series of endogeneity checks based on exogenous shocks and alternative measures highlight the robustness of our results. Our findings suggest that politicians' stock ownership in buyer firms signals secondary stakeholder influence and information sharing that shapes BSRs, promoting profitable business relationships for constituent suppliers.</p>","PeriodicalId":51097,"journal":{"name":"Journal of Operations Management","volume":"72 4","pages":"500-535"},"PeriodicalIF":10.4,"publicationDate":"2026-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/joom.70036","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"148120160","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Yan Dong, Fan Zou, Sining Song, Yuqi Peng, Kefeng Xu
{"title":"Empirical Analyses Using Secondary Supply Chain Data","authors":"Yan Dong, Fan Zou, Sining Song, Yuqi Peng, Kefeng Xu","doi":"10.1002/joom.70037","DOIUrl":"https://doi.org/10.1002/joom.70037","url":null,"abstract":"<div>\u0000 \u0000 <p>The increasing availability of secondary data on supply chain relationships has created new opportunities for empirical research in supply chain management. Datasets from sources including Bloomberg SPLC, FactSet, and CompuStat may support empirical analyses of decision-making, strategic behaviors, governance mechanisms, and dynamics of inter-organizational relationships of supply chains. However, the complexity and interconnectedness of supply chains and the inconsistent quality and coverage of supply chain data sources present empirical challenges, which have limited the scope and depth of current empirical research on supply chains. To address these challenges, this study investigates and compares the three commonly used supply chain databases and introduces a data-focused roadmap for supply chain research using secondary data sources. This roadmap presents a process featuring data source selection, unit-of-analysis decisions, and appropriate econometric treatments, for example, endogeneity, selection bias, and correlated errors in supply chains, which contributes to the supply chain management literature by improving consistency, generalizability, and reliability in empirical supply chain research.</p>\u0000 </div>","PeriodicalId":51097,"journal":{"name":"Journal of Operations Management","volume":"72 4","pages":"627-650"},"PeriodicalIF":10.4,"publicationDate":"2026-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"148102804","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"How Do Investors React to Supplier Exploitation? Event Study and Experimental Evidence","authors":"Seongtae Kim, Sangho Chae, Han Kyul Oh","doi":"10.1002/joom.70044","DOIUrl":"https://doi.org/10.1002/joom.70044","url":null,"abstract":"<p>Supplier exploitation, including financial squeezing, payment delays, and non-contractual demands, is a pervasive form of corporate misconduct. This multi-method study examines how investors interpret supplier exploitation amid competing ethical and financial considerations. Using an event study of 233 enforcement actions by the Korea Fair Trade Commission (KFTC), we find a significant negative investor reaction, with firms losing an average of 1.24% in market value. This negative market reaction is stronger for firms receiving greater media attention but weaker for more profitable buyers. To explore the underlying behavioral mechanisms, we conduct an incentivized vignette experiment with experienced investors. The experiment reveals that anticipated public moral judgment (viewing exploitation as wrongful) and profit-driven considerations (viewing exploitation as rational misconduct) jointly shape investor reactions. Specifically, buyer profitability tips the balance by reducing the weight placed on moral concerns while increasing the emphasis on financial considerations. Supplemented by practitioner interviews, this study provides novel evidence on the overall negative, yet complex economic consequences of supplier exploitation.</p>","PeriodicalId":51097,"journal":{"name":"Journal of Operations Management","volume":"72 4","pages":"584-605"},"PeriodicalIF":10.4,"publicationDate":"2026-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/joom.70044","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"148123270","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"When Yes Is a No: Navigating the Façade of Conformity in Continuous Improvement","authors":"Vijaya Sunder M, Kevin Linderman","doi":"10.1002/joom.70038","DOIUrl":"https://doi.org/10.1002/joom.70038","url":null,"abstract":"<div>\u0000 \u0000 <p>Continuous Improvement (CI) initiatives are central to operational excellence, emphasizing bottom-up, team-based problem-solving. In practice, however, they are embedded within hierarchical systems that require managerial oversight. This duality introduces a structural tension between empowerment and control, giving rise to a behavioral dynamic that we conceptualize as the façade of conformity (FC) in CI, a defensive impression-management behavior where team members outwardly express agreement with CI decisions while privately withholding dissent. We argue that FC in CI affects operational performance. We further theorize that collective team identification (CTI), a shared sense of belonging and commitment to goals, moderates this negative relationship. We test our theory in two complementary studies: a laboratory experiment involving 71 teams (284 participants) simulating ad-hoc CI, and a field study of 330 structured CI projects within a large financial services firm. Across both settings, we find that FC has a negative impact on operational performance, while a strong CTI mitigates this effect. We conduct extensive robustness and supplementary analyses to validate our results. This research contributes to behavioral operations and continuous improvement bodies of knowledge by introducing FC in CI as a distinct behavioral failure mode and identifying CTI as a boundary condition, providing managers with guidance on recognizing and addressing FC to safeguard CI efforts and investments.</p>\u0000 </div>","PeriodicalId":51097,"journal":{"name":"Journal of Operations Management","volume":"72 4","pages":"556-583"},"PeriodicalIF":10.4,"publicationDate":"2026-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"148121887","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"When Yes Is a No: Navigating the Façade of Conformity in Continuous Improvement","authors":"Vijaya Sunder M, Kevin Linderman","doi":"10.1002/joom.70038","DOIUrl":"https://doi.org/10.1002/joom.70038","url":null,"abstract":"<div>\u0000 \u0000 <p>Continuous Improvement (CI) initiatives are central to operational excellence, emphasizing bottom-up, team-based problem-solving. In practice, however, they are embedded within hierarchical systems that require managerial oversight. This duality introduces a structural tension between empowerment and control, giving rise to a behavioral dynamic that we conceptualize as the façade of conformity (FC) in CI, a defensive impression-management behavior where team members outwardly express agreement with CI decisions while privately withholding dissent. We argue that FC in CI affects operational performance. We further theorize that collective team identification (CTI), a shared sense of belonging and commitment to goals, moderates this negative relationship. We test our theory in two complementary studies: a laboratory experiment involving 71 teams (284 participants) simulating ad-hoc CI, and a field study of 330 structured CI projects within a large financial services firm. Across both settings, we find that FC has a negative impact on operational performance, while a strong CTI mitigates this effect. We conduct extensive robustness and supplementary analyses to validate our results. This research contributes to behavioral operations and continuous improvement bodies of knowledge by introducing FC in CI as a distinct behavioral failure mode and identifying CTI as a boundary condition, providing managers with guidance on recognizing and addressing FC to safeguard CI efforts and investments.</p>\u0000 </div>","PeriodicalId":51097,"journal":{"name":"Journal of Operations Management","volume":"72 4","pages":"556-583"},"PeriodicalIF":10.4,"publicationDate":"2026-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"148121888","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Ganggang Xu, Xingzhi Jia, Guanyi Lu, David Xiaosong Peng
{"title":"Applying Dynamic Modeling in Empirical OM Research: A Review and Practical Guide","authors":"Ganggang Xu, Xingzhi Jia, Guanyi Lu, David Xiaosong Peng","doi":"10.1002/joom.70028","DOIUrl":"10.1002/joom.70028","url":null,"abstract":"<div>\u0000 \u0000 <p>The recent expansion in the availability of longitudinal and granular panel data has led to a significant increase in the adoption of dynamic panel data (DPD) models in empirical Operations Management (OM) research. To explore this trend, we conducted a comprehensive literature review of empirical OM studies published from 2012 to 2024 in four leading OM journals. Our findings reveal a marked rise in the utilization of DPD models in recent years, with 49 out of 66 (74.2%) reviewed studies published between 2020 and 2024. Despite this growing adoption, the estimation of DPD models presents notable methodological challenges compared to standard panel fixed-effects models, creating barriers to their wider use in empirical OM research. Our simulation shows that the widely used least-squares dummy variable (LSDV) estimator can be significantly biased when estimating DPD models. Variations in methodological choices can lead to differing results and conclusions, raising concerns about the rigor of current practices. To address these issues, we provide a technical review of recent estimation methods for DPD models, highlighting their underlying assumptions and initial conditions. Among these, we recommend the Generalized Method of Moments (GMM) for its flexibility and less restrictive assumptions, which have contributed to its popularity across various research fields. However, the application of GMM requires a careful, iterative process, which many OM researchers may not be familiar with. To support the effective use of GMM in DPD models in empirical OM research, we propose a practical framework that guides researchers through this process and demonstrates its practical use through real-world data from supply base management. This framework aims to enhance the reliability and accuracy of estimating DPD models, facilitating more robust empirical research in the field of OM.</p>\u0000 </div>","PeriodicalId":51097,"journal":{"name":"Journal of Operations Management","volume":"72 3","pages":"462-494"},"PeriodicalIF":10.4,"publicationDate":"2026-04-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147686803","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Second-Order Between-Supplier Learning","authors":"Lisha Liu, Xianwei Shi, Guangzhi Shang","doi":"10.1002/joom.70033","DOIUrl":"10.1002/joom.70033","url":null,"abstract":"<p>Substantial empirical evidence shows that suppliers in emerging economies can enhance their technological capabilities through <i>direct</i> learning from technologically advanced foreign competitors. However, suppliers in emerging markets may struggle to learn directly from knowledge about competitors’ products that are <i>not</i> widely available on the consumer market. We draw on insights from existing literature, explorative interviews, and anecdotal evidence to hypothesize that firms may resort to <i>indirect</i> learning channels by leveraging downstream customers as knowledge conduits. Using the Chinese manufacturing industry's import data from 2001 to 2015, our quantitative study reveals the innovation premium of such an indirect learning channel that we term as ‘<i>second-order between-supplier learning</i>’: suppliers’ technological capabilities improve significantly when they supply to domestic customers who have imported from their technologically more advanced foreign competitors. Through a qualitative study, we develop a theoretical framework to account for the mechanisms underlying this indirect learning channel, outlining the <i>motivations</i>, <i>contents</i>, and <i>contingencies</i> that shape the effectiveness of second-order between-supplier learning. Our findings contribute to supply chain management and organizational learning literature by building a theory of second-order between-supplier learning. Our findings could also inform suppliers in emerging markets about technological development and guide policymakers on cross-border supply chain management.</p>","PeriodicalId":51097,"journal":{"name":"Journal of Operations Management","volume":"72 3","pages":"386-416"},"PeriodicalIF":10.4,"publicationDate":"2026-04-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/joom.70033","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147686114","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Supply Chain Guardianship: Why Some Firms Intervene When Other Firms Commit Fraud","authors":"Scott DuHadway, Steven Carnovale, Lutz Kaufmann","doi":"10.1002/joom.70035","DOIUrl":"10.1002/joom.70035","url":null,"abstract":"<div>\u0000 \u0000 <p>In supply chains, firms often become aware of illegal actions committed by their partners, prompting the critical question: when and why do those who know become those who act? Drawing on industry examples of supply chain fraud, we introduce the concept of supply chain guardianship to study how firms respond to potential fraud committed by their supply chain partners. We identify key influences on supply chain guardianship and refine these insights into hypotheses, which we test across four behavioral experiments (<i>n</i> = 1000). Study A finds that the tone at the top of an organization can promote supply chain guardianship and that state moral disengagement is negatively correlated with it. Study B manipulates process moral disengagement and finds that it reduces guardianship behavior. Although the network position of the supply chain guardian emerges as important in industry examples, we do not find a significant effect in the experiments. We replicate and validate these findings in Studies C and D. This study offers an initial foundation for a behavioral theory of interfirm fraud responses in supply chains and offers practical insights into how firms can increase supply chain guardianship across macro-, meso-, and microlevels.</p>\u0000 </div>","PeriodicalId":51097,"journal":{"name":"Journal of Operations Management","volume":"72 3","pages":"439-461"},"PeriodicalIF":10.4,"publicationDate":"2026-04-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147686072","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"How Do Technology Paradigms Influence Configurations of Contract Characteristics for Success of Inter-Organizational Outsourcing Projects, 1991–2009?","authors":"Onkar S. Malgonde, Moez Farokhnia Hamedani, Sunil Mithas, Manish Agrawal, Kaushal Chari","doi":"10.1002/joom.70031","DOIUrl":"10.1002/joom.70031","url":null,"abstract":"<div>\u0000 \u0000 <p>What are the distinct configurations of contract characteristics associated with the success of inter-organizational outsourcing projects across different technology paradigms? We examine information technology outsourcing contracts between 1991 and 2009 to address this question by using a relatively new approach based on qualitative comparative analysis. We consider four technology paradigms: pre-Internet (1991–1996), pre-Dotcom (1997–2000), post-Dotcom (2001–2005), and Cloud Computing (2006–2009). We discuss issues related to adverse selection and moral hazard and identify five key contract characteristics that determine contract success: new contract, existing organizational relationship, long contract duration, fixed price, and competitive bidding. Our analyses document two key findings. First, we show that configurations of contract characteristics for success and failure of outsourcing projects are different across technology paradigms. Second, we identify three themes in configurations associated with outsourcing success—economic imperative, conservative relational, and conservative imperative. These themes extend prior work that draws on transaction cost economics, social exchange theory, and relational exchange theory and identify an increasing emphasis on the relational component to manage contracting risk for outsourcing success over time. From a managerial perspective, we provide context-sensitive causal recipes to choose configurations of contract characteristics, considering technology paradigms. Together, our findings provide new insights for developing cumulative knowledge for understanding the determinants of success of interorganizational outsourcing projects while opening new avenues for further theorizing and empirical testing.</p>\u0000 </div>","PeriodicalId":51097,"journal":{"name":"Journal of Operations Management","volume":"72 3","pages":"366-385"},"PeriodicalIF":10.4,"publicationDate":"2026-04-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147686079","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Mikko Ketokivi, Saku Mantere, Herman Aguinis, Richard Makadok, Morgan Swink, Elliot Bendoly, Rogelio Oliva
{"title":"JOM Forum: Theory Testing Is Theory Generation","authors":"Mikko Ketokivi, Saku Mantere, Herman Aguinis, Richard Makadok, Morgan Swink, Elliot Bendoly, Rogelio Oliva","doi":"10.1002/joom.70039","DOIUrl":"10.1002/joom.70039","url":null,"abstract":"<p>In this paper, we propose that theory-testing research offers just as much potential for generating theory as theory-building and theory-elaborating research, the two variants typically associated with theory generation (Ketokivi and Choi <span>2014</span>; Lee et al. <span>1999</span>). Responding to Bendoly and Oliva's (<span>2025</span>) call for searching meaningful theoretical pathways for research contributions, we suggest that theory-testing research has always constituted a meaningful pathway to theoretical contributions when it extends beyond merely applying theory to <i>challenging, expanding</i>, and <i>elaborating</i> it. These extensions can lead to significant adjustments in bodies of knowledge over time as research programs progress.</p><p>To understand the generative aspect of <i>theory testing</i>, we must distinguish it from <i>theory application</i>. When we apply theory, the objective is usually to address a practical problem, without the interest of contributing to an ongoing theoretical conversation. In empirical operations management (OM) research, the application of <i>factory physics</i> offers an illustrative example: Researchers apply concepts such as Little's Law and laws of variability to improve factory productivity (Schmenner and Swink <span>1998</span>). In this context, theory consists of the relevant applicable laws that are treated as given, which makes theory effectively <i>axiomatic</i> from an epistemological point of view (Popper <span>1935/2005</span>, 51).\u0000 <sup>1</sup>\u0000 \u0000 </p><p>In stark contrast to theory application, the fundamental idea in theory-testing research is to place the theory itself under empirical scrutiny. Accordingly, theory is no longer treated as self-evident and certain but <i>propositional</i> and <i>conjectural</i>, subject to revisions (Lakatos <span>1970</span>; Popper <span>1963</span>).</p><p>As an example of theory-testing research, consider Williamson's (<span>1971</span>) question “Why do firms integrate vertically?” This question gave birth to <i>transaction cost economics (TCE)</i>, one of the most influential and established research programs on organizational boundaries (Santos and Eisenhardt <span>2005</span>). The theoretical essence of TCE is succinctly captured by the <i>discriminating alignment hypothesis</i>: “Transactions, which differ in their attributes, are aligned with governance structures, which differ in their costs and competencies, in a discriminating (mainly transaction cost economizing) way” (Williamson <span>1996</span>, 46–47). Importantly, this statement is not meant as axiomatic but conjectural, as the word ‘hypothesis’ implies: Whether actual governance decisions align transactions and governance structures in a “mainly transaction cost economizing way” is to be settled empirically.</p><p>Consider Walker and Weber's (<span>1984</span>) seminal TCE-based study that examined the make-or-buy decision in the final","PeriodicalId":51097,"journal":{"name":"Journal of Operations Management","volume":"72 3","pages":"356-365"},"PeriodicalIF":10.4,"publicationDate":"2026-04-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/joom.70039","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"147686165","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}