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Incoterms® Use in Buyer-Seller Relationships: a Mixed Methods Study Thomas J

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Incoterms® Use in Buyer-Seller Relationships: a Mixed Methods Study Thomas J University of Missouri, St. Louis IRL @ UMSL Dissertations UMSL Graduate Works 5-18-2017 Incoterms® Use in Buyer-Seller Relationships: a Mixed Methods Study Thomas J. Schaefer University of Missouri-St. Louis, [email protected] Follow this and additional works at: https://irl.umsl.edu/dissertation Part of the International Business Commons, Marketing Commons, and the Operations and Supply Chain Management Commons Recommended Citation Schaefer, Thomas J., "Incoterms® Use in Buyer-Seller Relationships: a Mixed Methods Study" (2017). Dissertations. 692. https://irl.umsl.edu/dissertation/692 This Dissertation is brought to you for free and open access by the UMSL Graduate Works at IRL @ UMSL. It has been accepted for inclusion in Dissertations by an authorized administrator of IRL @ UMSL. For more information, please contact [email protected]. INCOTERMS® USE IN BUYER-SELLER RELATIONSHIPS: A MIXED METHODS STUDY Thomas J. Schaefer M.B.A. – University of Missouri-St. Louis, 2004 B.S.B.A. – University of Missouri-St. Louis, 2002 A Dissertation Submitted to The Graduate School of the University of Missouri-St. Louis in partial fulfillment of the requirements for the degree Ph.D. In Business Administration with an emphasis in Logistics and Supply Chain Management August 2017 Advisory Committee Donald C. Sweeney II, Ph.D. Chairperson Ray Mundy, Ph.D. Co-Chair Karl Manrodt, Ph.D. Douglas L. Smith, Ph.D. i © 2017 THOMAS J. SCHAEFER All Rights Reserved ii TABLE OF CONTENTS Table of Contents ……………………………………………………………………………………………………….. iii List of Figures ………………………………………………………………………………………………………………. ix List of Tables ……………………………………………………………………………………………………………….. x Dedication ……………………………………………………………………………………………………………….. xiv Acknowledgements ………………………………………………………………………………………………….. xv Abstract …………………………………………………………………………………………………………………… xvii Chapter 1 – Introduction …………………………………………………………………………………………... 1 1.1 Research Objective and Research Questions …………………………………………… 16 1.2 Justification for this Research …………………………………………………………………. 17 1.3 Research Approach ……………………………………………………………………………………. 17 1.4 Contributions of this Research …………………………………………………………………… 20 1.5 Dissertation Organization ……………………………………………………….……………….. 22 Chapter 2 – Literature Review………………………………………………………...………………..………. 23 2.1 Buyer-Seller Relationships …………………………………………..………………………….… 23 2.2 Logistics Management.………………………………………………………………….…………. 27 2.3 Incoterms® ……………………………………………………………………………………………….. 29 2.3.1 History of Incoterms® ………………………………………………………………… 29 iii 2.3.1.1 Rules for Any Mode or Mode of Transport ……………………………... 30 2.3.1.2 Rules for Sea and Inland Water Transport ……………………………… 33 2.3.2 Proper Use of Incoterms® ……………………………………………………………………… 36 2.4 Literature Review Methodology.………………………………………………………………… 38 2.4.1 Review Process …………………………………………………………………………. 40 2.4.2 Classification Framework …………………………………………………………… 40 2.4.3 Results ……………………………………………………………………………………….. 41 2.4.4 Discussion …………………………………………………………………………………… 42 2.5 Mixed Methods Research ………………………………………………………………………… 52 2.5.1 Definition …………………………………………………………………………….…… 52 2.5.2 History ……………………………………………………………………………………… 54 2.5.3 Philosophical Foundation …………………………………………………………. 56 2.5.4 Rationale ………………………………………………………………………………..… 62 2.5.5 Comparison of Qualitative, Quantitative, and Mixed Methods Research……………………………………………………………………………………………. 63 2.5.6 Basic Steps ……………………………………………………………………………….. 68 2.5.7 Research Designs ……………………………………………………………………… 68 2.5.8 Prevalence and Use in Business Research …………………………………… 70 2.5.9 Recommendations …………………………………………………………………… 72 iv 2.6 Experiments …………………………………………………………………………………………… 72 Chapter 3 – Methodology …………….………………………………………………………………………….. 75 3.1 Introduction …………………………………………………………………………………………… 75 3.2 Studies One and Two: Qualitative Design Overview…………………………………. 79 3.2.1 Grounded Theory ……………………………………………………………………… 81 3.2.2 Design ………………………………………………………………………………………. 82 3.2.3 Data Collection Procedures ………………………………………………………. 83 3.2.4 Analysis …………………………………………………………………………………… 84 3.2.5 Sampling …………………………………………………………………………………… 86 3.2.6 Research Trustworthiness ………………………………………………………… 87 3.3 Study 3: Quantitative Design Overview …………………………………………………… 87 3.3.1. Sample ……………………………………………………………………….……………. 88 3.3.2 Procedure ………………………………………………………………………………… 89 3.3.3 Pretest ……………………………………………………………………………………… 91 3.3.4 Instruments and Measures ………………………………………………………. 91 3.3.5 Data Analysis ……………………………………………………………………………. 92 Chapter 4 – Data Analysis and Results ……………………………………………………………………… 95 4.1 Study One: Pilot Case Study (Qualitative Research Findings) …………….……. 95 v 4.1.2 Discussion of the Pilot Case Study …………….………..…………..………… 107 4.2 Study Two: Multiple Case Studies (Qualitative Research Findings) …………… 108 4.2.1 Introduction …………..…………..…………..…………..…………..………………. 108 4.2.2 Data Collection …………..…………..…………..…………..…………..………….. 109 4.2.3 Sample …………..…………..…………..…………..…………..…………..………….. 110 4.2.4 Data Coding and Analysis …………..…………..………..…………..………… 111 4.2.5 Theoretical Saturation …………..…………..…………..…………..……………. 117 4.2.6 Research Trustworthiness …………..………..…………………….……..…… 119 4.2.7 Discussion of Qualitative Study Two Results ………………..………….. 121 4.2.7.1a How do buyer-seller dyads negotiate logistics management decisions? …………………………………………………………………….. 121 4.2.7.1b General Negotiation Process ……………………………………... 121 4.2.7.1c Negotiation Process for Transportation ……………………… 125 4.2.7.2 How do buyer-seller dyads communicate logistics management decisions? ……………………………………............ 129 4.2.7.3 Why do errors in logistics management decision communication occur within buyer-seller dyads, and what are the consequences of these errors? …………………….…. 132 4.2.8 Other Categories Discovered …………..…………..…………..…………….. 147 4.2.8.1 Sellers focus on sale, not execution ………………………….. 147 4.2.8.2 Revenue Recognition ………………………………………………… 148 4.2.8.3 Expedited freight ……………………………………………………… 149 vi 4.2.8.4 FCA vs. EXW Incoterms® …………………………………………… 150 4.2.9 What can improve the quality of buyer-seller dyads’ communication of logistics management decisions? ……………………………………….. 151 4.2.10 Hypotheses for Study Three …………………………………………………. 155 4.3 Study Three: Quantitative Research Findings – Testing Hypotheses……….. 156 4.3.1 Experimental Design ………………………………………………………………… 156 4.3.2 Questionnaire …………………………………………………………………………. 157 4.3.3 Questionnaire Pretest .……………………………………………………………… 164 4.3.4 Questionnaire Sample ………………………………………………………..…… 164 4.3.5 Analysis …………………………………………………………………………………… 170 4.3.5.1 Nonresponse Bias ……………………………………………………… 170 4.3.5.2 Before and After Reminder Demographic Comparisons. 170 4.3.5.3 Full Questionnaire Responses Versus Not Fully Completed Demographic Comparisons ……………………………………… 176 4.3.5.4 Questionnaire Response Analysis – By Scenario ……….. 183 4.3.5.5 Scenario One Descriptive Statistics ……………………………. 186 4.3.5.6 Scenario Two Descriptive Statistics ……………………………. 188 4.3.5.7 Scenario Three Descriptive Statistics ………………………… 189 4.3.5.8 Scenario Four Descriptive Statistics ……………………………. 191 4.3.5.9 Scenario Five Descriptive Statistics ……………………………. 192 vii 4.3.5.10 Questionnaire Response Analysis – Overall ……………… 195 4.3.6 Discussion of Study Three Results …………………………………………….. 203 Chapter 5 – Contributions, Limitations, and Future Research …………….……………………. 206 5.1 Overall Contributions and Managerial Implications …………………….…………. 206 5.1.1 Overall Contributions ……………………………………………………………... 206 5.1.2 Managerial Implications ……………………………..……………………….….. 208 5.2 Research Limitations ………………………………………………………………………….…… 210 5.3 Future Research .………………………….………………………………………………………... 211 5.4 Concluding Remarks …………………….………………………………………………………... 213 References ……………………………………………………………………………………………………….…..…. 215 Appendix I – Literature Review …………………………………………………………………..………….. 241 Appendix II – Study Two In-Depth Semi-Structured Interview Guide …………………….…. 256 Appendix III – Word Cloud Before Coding ……………………………………………………….………. 259 Appendix IV – Word Cloud After Coding ………………………………………………………………….. 260 Appendix V – Word Cloud After Node to Category Coding ………………………………….……. 261 Appendix VI – Study Three Questionnaire ……………………………………….………………………. 262 Treatment 1: Operational Definitions Fully Spelled Out ……………………..………… 264 Treatment 2: Incoterms® Used ……………………………………………………………………… 269 viii LIST OF FIGURES Figure 1.1: Total Cost Components ………………………………………………………………………………. 6 Figure 1.2: Incoterms® Rules Responsibilities …………………………………………………………… 10 Figure 2.1: Lee’s (1991) Framework …………………………………………………………………………… 57 Figure 4.1: Process Flow from Interview to Discussion ……………………………………………… 112 Figure 4.2: Sample Process ……………………………………………………………………………………… 117 Figure 4.3: Negotiation Process ………………………………………………………………………………. 123 Figure 4.4: Map of Respondents ………………………………………………………………………………. 166 ix LIST OF TABLES Table 2.1: Summary of Articles Reviewed …………………………….……………………………………. 40 Table 2.2: Summary of Article Classification ………………………………………………………………. 41 Table 2.3: Summary of Academic Articles on Incoterms® …………………………………………… 43 Table 2.4: Rationales for utilizing mixed methods research ………………………………………… 62 Table 2.5: Strengths and Weaknesses of Quantitative Research ………………………………… 64 Table 2.6: Strengths and Weaknesses of Qualitative Research …………………………………… 65 Table 2.7: Strengths and Weaknesses of Mixed Methods Research …………………………… 67 Table 2.8: Recommendations for Designing, Implementing, and Reporting Mixed Methods Studies ……………………………………………………………………………………….
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