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1 – 10 of 44Professor Lauri Ojala, Professor Juuso Töyli, Professor Harri Lorentz and Dr Tomi Solakivi
Harri Lorentz, Anna Aminoff, Riikka Kaipia and Jagjit Singh Srai
The study develops a structure for procurement digitalisation by identifying its context drivers, technology interventions and performance-inducing mechanisms and exploring the…
Abstract
Purpose
The study develops a structure for procurement digitalisation by identifying its context drivers, technology interventions and performance-inducing mechanisms and exploring the linkages between these variables.
Design/methodology/approach
The study draws on rich interview and workshop data on 48 digital intervention projects, as reflected by mental models of managers from 12 case organisations in manufacturing, retail and service sectors. Supported by an a priori structure, the study employs an abductive cross-case analysis approach.
Findings
Results suggest several categories within the elements of context, intervention and mechanism to structure procurement digitalisation and the linkages between them. Seven propositions that reflect digitalisation strategy options in procurement are developed regarding the linkages. Internal complexity dominantly drives procurement digitalisation, motivating communication support and process structuring interventions, which in turn aim at procurement coordination and control as well as process improvement. External coercive pressure and external dynamism also drive interventions for information processing and decision aiding, which appear to be linked with supply market knowledge, strategic alignment and supplier capability assessment. Therefore, an internal–external dichotomy is observed as the main thrust of procurement digitalisation.
Practical implications
The study supports decision makers in developing digitalisation strategy options for different procurement contexts. The results also raise awareness of a possible bias in existing strategies for procurement digitalisation.
Originality/value
A novel forward-looking approach is employed to enable the design and construction of systems that do not yet exist by focusing on the mental models of managers in a systematic way.
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Harri Lorentz, Sini Laari, Joanne Meehan, Michael Eßig and Michael Henke
In the context of the COVID-19 pandemic, this study investigates a variety of approaches to supply disruption risk management for achieving effective responses for resilience at…
Abstract
Purpose
In the context of the COVID-19 pandemic, this study investigates a variety of approaches to supply disruption risk management for achieving effective responses for resilience at the supply management subunit level (e.g. category of items). Drawing on the attention-based view of the firm, the authors model the attentional antecedents of supply resilience as (1) attentional perspectives and (2) attentional selection. Attentional perspectives focus on either supply risk sources or supply network recoverability, and both are hypothesised to have a direct positive association with supply resilience. Attentional selection is top down or bottom up when it comes to disruption detection, and these are hypothesised to moderate the association between disruption risk management perspectives and resilience.
Design/methodology/approach
Conducted at the early phases of the COVID-19 pandemic, this study employs a hierarchical regression analysis on a multicountry survey of 190 procurement professionals, each responding from the perspective of their own subunit area of supply responsibility.
Findings
Both attentional disruption risk management perspectives are needed to achieve supply resilience, and neither is superior in terms of achieving supply resilience. Both the efficiency of the top down and exposure to the unexpected with the bottom up are needed – to a balanced degree – for improved supply resilience.
Practical implications
The results encourage firms to purposefully develop their supply risk management practices, first, to include both perspectives and, second, to avoid biases in attentional selection for disruption detection. Ensuring a more balanced approach may allow firms to improve their supply resilience.
Originality/value
The results contribute to the understanding of the microfoundations that underpin firms' operational capabilities for supply risk and disruption management and possible attentional biases.
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Jagjit Singh Srai, Gary Graham, Patrick Hennelly, Wendy Phillips, Dharm Kapletia and Harri Lorentz
The emergence of distributed manufacturing (DM) is examined as a new form of localised production, distinct from previous manifestations of multi-domestic and indigenous…
Abstract
Purpose
The emergence of distributed manufacturing (DM) is examined as a new form of localised production, distinct from previous manifestations of multi-domestic and indigenous production.
Design/methodology/approach
Supply network (SN) configuration and infrastructural provisioning perspectives were used to examine the literature on established localised production models as well as DM. A multiple case study was then undertaken to describe and explore the DM model further. A maximum variation sampling procedure was used to select five exemplar cases.
Findings
Three main contributions emerge from this study. First, the research uniquely brings together two bodies of literature, namely SN configuration and infrastructure provisioning to explore the DM context. Second, the research applies these theoretical lenses to establish the distinctive nature of DM across seven dimensions of analysis. Third, emerging DM design rules are identified and compared with the more established models of localised production, drawing on both literature and DM case evidence.
Practical implications
This study provides a rich SN configuration and infrastructural provisioning view on DM leading to a set of design rules for DM adoption, thus supporting practitioners in their efforts to develop viable DM implementation plans.
Originality/value
The authors contribute to the intra- and inter-organisational requirements for the emerging DM context by providing new perspectives through the combined lenses of SN configuration and infrastructural provisioning approaches.
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Jagjit Singh Srai, Gary Graham, Remko Van Hoek, Nitin Joglekar and Harri Lorentz
The new geopolitical context being created by the Ukraine–Russia war highlights the need for structured approaches to planning and implementing unhooking strategies and developing…
Abstract
Purpose
The new geopolitical context being created by the Ukraine–Russia war highlights the need for structured approaches to planning and implementing unhooking strategies and developing associated supply chain reconfigurations.
Design/methodology/approach
The authors have interviewed six supply chain executives to begin the investigation of the key supply chain risks and disruptions caused by the Ukraine–Russia war.
Findings
Initial corporate responses to the Ukraine–Russia conflict were significant, perhaps unprecedented. However, as institutional, corporate and consumer sentiment influence reconfiguration responses, the authors have identified three supply chain pathways that underpin unhooking actions.
Research limitations/implications
The authors selected respondents from each different type of supply chain interaction with the conflict zone (inbound, outbound and within), covering both components/intermediate products and finished goods. Therefore the sample size was small and designed to fit in with the spirit of the pathway initiative.
Practical implications
The authors reinforce the key role of procurement and supply chain management in not just supply but also in downstream markets that can accelerate decoupling and mitigate the associated supply chain disruptions.
Social implications
The authors observe that supply chains are increasingly being weaponized, as external institutional and consumer influences necessitate companies to unhook from conflict zones, countries, or regimes. They are becoming increasingly intertwined with foreign policy.
Originality/value
The novelty of the contribution to the associated discourse is the perspective that after decades of increasing globalization and geographic dispersion of supply chains, the unhooking effort is not limited to a firm and its internal operations but involves multiple stakeholders. For instance, the full extent of the complex linkages of supply chains, networks and relationships that touch conflict zone geographies must be considered, particularly those that are incompatible with the firm's values and aims, including those of their stakeholders.
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Tomi Solakivi, Lauri Ojala, Harri Lorentz, Juuso Töyli and Sini Laari
The size of the logistics market is typically estimated from the national accounting and market data. However, this data does not take certain in-house logistics services into…
Abstract
Purpose
The size of the logistics market is typically estimated from the national accounting and market data. However, this data does not take certain in-house logistics services into account and most likely underestimates the true size of the market. The purpose of this paper is to develop a method for estimating the potential size of the logistics market in terms of overall logistics expenditure and to also account for in-house services.
Design/methodology/approach
The research approach involves combining longitudinal industry- and firm-level turnover data, incorporating survey data from Finland on logistics outsourcing and costs, and calculating yearly logistics expenditure and the market demand for logistics services. Descriptive statistics, weighted arithmetic means and analyses of variance are employed in the estimations.
Findings
The research suggests and demonstrates a rigorous method for estimating the size of the logistics market, including both market-based demand and in-house services.
Research limitations/implications
The empirical data used to illustrate the result are limited to a single country. The methodology should be further validated with data from other countries. The quality of the survey data could be improved by targeting multiple informants from a single firm.
Social implications
One outcome of the research is that policymakers will be better able to estimate the size of the logistics market on a national level. For service providers, the results provide additional information on the market potential of logistics services.
Originality/value
The novelty of the research lies in combining multiple data sources and expanding the estimation of the logistics market to include services provided in-house.
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Sini Laari, Harri Lorentz, Patrik Jonsson and Roger Lindau
Drawing on information processing theory, the linkage between buffering and bridging and the ability on the part of procurement to resolve demand–supply imbalances is…
Abstract
Purpose
Drawing on information processing theory, the linkage between buffering and bridging and the ability on the part of procurement to resolve demand–supply imbalances is investigated, as well as contexts in which these strategies may be particularly useful or detrimental. Buffering may be achieved through demand change or redundancy, while bridging may be achieved by the means of collaboration or monitoring.
Design/methodology/approach
This study employs a hierarchical regression analysis of a survey of 150 Finnish and Swedish procurement and sales and operations planning professionals, each responding from the perspective of their own area of supply responsibility.
Findings
Both the demand change and redundancy varieties of buffering are associated with procurement's ability to resolve demand–supply imbalances without delivery disruptions, but not with cost-efficient resolution. Bridging is associated with the cost-efficient resolution of imbalances: while collaboration offers benefits, monitoring seems to make things worse. Dynamism diminishes, while the co-management of procurement in S&OP improves procurement's ability to resolve demand–supply imbalances. The most potent strategy for tackling problematic contexts appears to be buffering via demand change.
Practical implications
The results highlight the importance of procurement in the S&OP process and suggest tactical measures that can be taken to resolve and reduce the effects of supply and demand imbalances.
Originality/value
The results contribute to the procurement and S&OP literature by increasing knowledge regarding the role and integration of procurement to the crucial process of balancing demand and supply operations.
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Harri Lorentz, Tomi Solakivi, Juuso Töyli and Lauri Ojala
The purpose of this paper is to provide evidence of how the business cycle affects net-trade-credit and its components in firms on different tiers of the value chain, including…
Abstract
Purpose
The purpose of this paper is to provide evidence of how the business cycle affects net-trade-credit and its components in firms on different tiers of the value chain, including retail, wholesale and two consecutive manufacturing tiers.
Design/methodology/approach
Data were collected by the means of four surveys in the years 2006, 2009, 2012 and 2014, representing different phases of the business cycle, that is, from strong economic growth to a deep recession and on to slow recovery and finally into decline. Descriptive statistics and three ANOVA models were used in the analysis of the data.
Findings
The distinctive profile of each value chain tier appears to have an effect on tier-specific trade credit dynamics. Overall, upstream positioned firms and small firms are likely to experience a decline in the net-trade-credit during uncertain economic times. The type of task interdependence between tiers also appears to affect trade credit dynamics in some tiers of the value chain. Furthermore, initiated by recession, certain trade credit dynamics in the value chain suggest a mechanism that transmits an increased working capital burden from customers to suppliers along the value chain.
Research limitations/implications
Results are based on survey research with a limited amount of respondents and geographical coverage, implying limited generalisability. The use of implicit measures limits the conclusiveness of the research.
Originality/value
The conventional perception of the power-based determination of trade credit policies is complemented with a value chain-related task interdependence perspective. The results of this paper also highlight that a more holistic value chain perceptive on working capital management would be more sustainable in comparison to firm-centric approaches.
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Harri Lorentz, Yongjiang Shi, Olli-Pekka Hilmola and Jagjit Singh Srai