Contingent effects of close relationships with suppliers upon independent restaurant product development: A social capital perspective. (October 2017)

• Record Type: Journal Article
• Authors: Cho, Meehee; Bonn, Mark A.; Giunipero, Larry; Jaggi, John S.
• Is Part Of: International journal of hospitality management. Volume 67(2017)
• Page Start: 154
• Page End: 162
• Publication Date: 2017-10
• Subjects: Independent restaurants -- Restaurant-buyer relationships -- Social capital -- Product enhancement -- New product development -- Inverted curvilinear relationships; Hotel management -- Periodicals; Restaurant management -- Periodicals; Food service management -- Periodicals; Hôtels -- Gestion -- Périodiques; Restaurants -- Gestion -- Périodiques; Services alimentaires -- Gestion -- Périodiques; Food service management; Hotel management; Restaurant management; Periodicals; 647.94
• DOI: 10.1016/j.ijhm.2017.08.009
• Languages: English
• ISSNs: 0278-4319

Abstract

Highlights: Close relationships with suppliers are an essential component for independent restaurant product development. Social capital within close relationships with suppliers was found to have a positive and linear effect on independent restaurant product enhancement. New product development for independent restaurants was negatively associated with excessive levels of social capital within close relationships with suppliers. Abstract: Despite recommendations that the restaurant industry more readily engage suppliers within their operations in order to expand capabilities, associations with restaurant business performance and supplier relationships remain unexplored in today's current restaurant literature. This study assessed restaurant-supplier relationships from the social capital perspective and evaluated roles social capital played in product enhancement and new product development within the independent restaurant context. Results demonstrated that independent restaurant product enhancement was positively and linearly associated with social capital derived from restaurant-supplier relationships. Results also found that building social capital within restaurant-supplier relationships positively influenced new product development, but when taken to an extreme, it exhibited a negative association through an inverted curvilinear effect. Results provide new insights for future research and practice regarding independent restaurant supply management practices.