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1 – 10 of over 4000Kuntal Bhattacharyya, Alfred L. Guiffrida, Milton Rene Soto-Ferrari and Paul Schikora
Untimely delivery of goods and services, especially in a post-COVID landscape, is a critical harbinger of end-to-end fulfillment. Existing literature in supplier delivery modeling…
Abstract
Purpose
Untimely delivery of goods and services, especially in a post-COVID landscape, is a critical harbinger of end-to-end fulfillment. Existing literature in supplier delivery modeling is focused on penalizing suppliers for late deliveries built into a contractual transaction, which eventually erodes trust. As such, a holistic modeling technique focused on long-term relationship building is missing. This study aims to design a supplier evaluation model that analytically equates supplier delivery performance to cost realization while replicating a core attribute of successful supply chains – alignment, leading to long-term supplier relationships.
Design/methodology/approach
The supplier evaluation model designed in this paper uses delivery deviation as a unit of measure as opposed to delivery duration to enhance consistency with enterprise resource planning protocols. A one-sided modified Taguchi-type quality loss function (QLF) models delivery lateness to construct a multinomial probability penalty cost function for untimely delivery. Prescriptive analytics using simulation and optimization of the proposed mathematical model supports buyer–supplier alignment.
Findings
The supplier evaluation model designed herein not only optimizes likelihood parameters for early and late deliveries for competing suppliers to enhance total landed cost comparisons for on-shore, near-shore and off-shore suppliers but also allows for the creation of an efficient frontier toward supply base optimization.
Research limitations/implications
At a time of systemic disruptions such as the COVID pandemic, global supply chains are at risk of business continuity. Supplier evaluation models need to focus on long-term relationship modeling as opposed to short-term contractual penalty-based modeling to enhance business continuity. The model offered in this paper is grounded in alignment – a cornerstone of successful supply chain integration, and offers an interesting departure from traditional modeling techniques in this genre.
Practical implications
The results from this analytical approach offer flexibility to a supply manager toward building redundancies in the supply chain using an efficient frontier within the supply landscape, which also helps to manage disruption and maintain end-to-end fulfillment.
Originality/value
The model offered in this paper is grounded in alignment – a cornerstone of successful supply chain integration, and offers an interesting departure from traditional modeling techniques in this genre. The authors offer a rational solution by creating an evaluation model that uses penalty cost modeling as an internal quality measure to rate suppliers and uses the outcome as a yardstick for negotiations instead of imposing penalties within contracts.
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Hasan Celik, David R. Nowicki, Hasan Uvet, Saban Adana and Sedat Cevikparmak
This study aims to empirically test the effects of key characteristics of performance-based contracting (PBC) (i.e. reward/payment scheme, increased supplier autonomy and transfer…
Abstract
Purpose
This study aims to empirically test the effects of key characteristics of performance-based contracting (PBC) (i.e. reward/payment scheme, increased supplier autonomy and transfer of responsibilities) on supplier goal commitment.
Design/methodology/approach
This study developed a conceptual model applying goal-setting theory (GST), expectancy theory (ET) and job characteristics theory (JCT). Survey data were collected and analyzed using structural equation modeling (SEM) to establish a validated measurement instrument for testing the hypotheses.
Findings
The findings revealed that PBC positively affects supplier goal commitment due to its unique characteristics, which translates into improved supplier performance. Furthermore, this study validated the mediating role of goal alignment and felt accountability operating between PBC characteristics and supplier goal commitment.
Research limitations/implications
This study explored the buyer–supplier relationship from the supplier's standpoint. Using a more inclusive data set, future research may involve a dyadic analysis and focus on the effects of the following factors on the supplier goal commitment: relational aspects (e.g. trust and collaboration), the risk transfer from the buyer to the supplier, different incentive schemes and successful PBC implementation factors.
Practical implications
This study presents new, validated insights for contract selection, design and management. It underlines the importance of choosing the proper contract, having the appropriate contract design based on the desired outcomes and effective contract management by exhibiting the psychological/behavioral effect of fundamental PBC characteristics.
Originality/value
PBC represents an active research stream, but its psychological/behavioral implications are understudied. Therefore, this research puts forth a conceptual framework with multiple testable hypotheses illustrating the relationship between PBC and supplier goal commitment.
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Anupam Kumar, Adams Steven and John-Patrick Paraskevas
This study investigates the relationship between buyer-supplier top management team (TMT) demographic misalignment (defined as differences in TMT composition based on background…
Abstract
Purpose
This study investigates the relationship between buyer-supplier top management team (TMT) demographic misalignment (defined as differences in TMT composition based on background, age and gender) and environmental performance (EVP).
Design/methodology/approach
The empirical setting is publicly held US manufacturing firms that are present in both the Kinder, Lydenberg and Domini’s (KLD's) annual EVP ratings and Bloomberg's supply chain database. The study employs panel data regression methods on an unbalanced panel dataset of 7,493 dyad-year observations comprising 427 unique firms.
Findings
The research shows that misalignment in functional background and gender composition between TMTs have a negative outcome on both the buyer's and the suppliers' EVP. However, increasing presence of females across TMTs has a positive influence on EVP. Further, the research shows that misalignment based on age between the TMTs does not impact EVP in any significant way. On the contrary, increasing age across TMTs is a significant predictor of EVP.
Originality/value
This study builds on existing works in TMT heterogeneity and adds context to the heightening belief in the positive linkage between heterogeneity and performance through extension to a boundary spanning interfirm context.
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Muhammad Shakeel Sadiq Jajja, Vijay R. Kannan, Shaukat Ali Brah and Syed Zahoor Hassan
The purpose of this paper is to use resource dependence theory to hypothesize that a buyer’s innovation strategy enhances supplier innovation focus and a buyer-supplier…
Abstract
Purpose
The purpose of this paper is to use resource dependence theory to hypothesize that a buyer’s innovation strategy enhances supplier innovation focus and a buyer-supplier relationship that supports product innovation. These in turn positively impact buyer product innovation outcomes and business performance. Moreover, it is argued that the buyer-supplier relationship positively moderates the impact of supplier innovation focus on product innovation.
Design/methodology/approach
Structural equation modeling and hierarchical linear regression are used to test hypotheses.
Findings
The results support all hypotheses and suggest that company (buyer) age and variables related to buyer engagement with international markets directly influence performance. The results also indicate that the buyer-supplier relationship does not moderate the relationship between innovation strategy and innovation performance.
Research limitations/implications
This study demonstrates that how a firm builds the conditions to effectively leverage the complementary resources and capabilities of suppliers directly influence innovation outcomes and business performance.
Practical implications
An important factor in firms achieving their product innovation goals is the selection and management of suppliers that are strategically aligned with regard to innovation. While managers need to develop internal innovation capabilities, partnering with like-minded organizations, and creating conditions for effective cooperation are key drivers of innovation outcomes.
Originality/value
In contrast to prior research that has examined operational issues, this study shows how the strategic alignment of buyers and suppliers with regard to innovation is an antecedent of product innovation outcomes. Moreover, it adds to a limited literature on supply chain management practices in emerging markets.
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Muhammad Shakeel Sadiq Jajja, Shaukat Ali Brah, Syed Zahoor Hassan and Vijay R. Kannan
The purpose of this paper is to explore the interface between buyers and suppliers in the context of product innovation in an emerging economy. Specifically, it examines the…
Abstract
Purpose
The purpose of this paper is to explore the interface between buyers and suppliers in the context of product innovation in an emerging economy. Specifically, it examines the strategic and tactical initiatives necessary to drive inter-organizational alignment and thus positive innovation outcomes. It also examines the impact of organizational characteristics on product innovation.
Design/methodology/approach
Using survey data from 191 organizations in Pakistan, a structural equation model of the relationships between buyers’ and suppliers’ strategic focus on innovation, supplier innovation focus, collaborative innovation, and measures of product innovation and market performance is tested. In addition, hierarchical regression analysis is used to identify the impact of various organizational characteristics on product innovation performance.
Findings
The results suggest that a firm's product innovation performance is positively influenced by strategic buyer-supplier alignment with regard to product innovation, and the existence of mechanisms that foster inter-organizational collaboration. This in turn has a positive impact on market performance. Product innovation performance is also influenced by a firm's age, the nature of its ownership, and the extent to which it exports its products.
Originality/value
The study offers new insight into the role of inter-organizational collaboration as a driver of product innovation. Moreover, it adds to a limited literature on supply chain management in emerging economies generally, and on product innovation in the Indian sub-continent specifically.
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Muhammad Usman Ahmed and Asad Shafiq
As large multinational firms are increasingly tasked with developing sustainable supply chains, their role in improving the sustainability performance of their suppliers is…
Abstract
Purpose
As large multinational firms are increasingly tasked with developing sustainable supply chains, their role in improving the sustainability performance of their suppliers is critical. This paper examines the dual role of a buyer firm, as a customer and as an important stakeholder, and identifies several attributes of the buyer firm and the dyadic relationship that could help improve the sustainability performance of suppliers.
Design/methodology/approach
A dyadic multi-year dataset is created using financial and customer data from the Compustat database and sustainability data from MSCI ESG ratings database. The hypotheses are tested using econometric panel data techniques.
Findings
The findings indicate that a buyer's legitimacy is a key factor that affects supplier's sustainability performance. The effect of legitimacy is much higher when the buyer and supplier firms have an aligned focus on similar sustainability dimensions. The market power of the buyer also increases the effect of legitimacy, though power without legitimacy is not effective.
Originality/value
The study expands the understanding of how buyer firms can influence suppliers on sustainability by highlighting the key role played by legitimacy and aligned focus and the supporting role of market power. The study contributes to both the stakeholder salience literature and the buyer–supplier relationship literature by showing evidence for complementarity between market power and legitimacy. Buyer firms can use the results of the study to focus their efforts on suppliers where a significant improvement in sustainability can be expected.
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Anis Daghar, Leila Alinaghian and Neil Turner
The purpose of this paper is to systematically review, synthesize and critically evaluate the current research status on the role of collaborative interorganizational…
Abstract
Purpose
The purpose of this paper is to systematically review, synthesize and critically evaluate the current research status on the role of collaborative interorganizational relationships (CIRs) in supply chain risks (SCRs) from a social capital perspective and provide an organizing lens for future scholarship in this area.
Design/methodology/approach
This study adopts a systematic literature review approach to investigate 126 articles from 27 peer-reviewed journals between 1995 and 2020.
Findings
This paper investigates supply chain CIRs using a social capital perspective to explain the role of structural, relational and cognitive capital that resides in these relationships in various SCRs (i.e. environmental, supply, manufacturing, demand, information, financial and transportation). The review reveals that the three social capital dimensions uniquely and both positively and negatively affect different SCRs. The findings further suggest that the perceived SCRs can influence the structural and relational capital.
Practical implications
This study calls for practitioners to consider the cognitive alignment with their supply network partners, their relational investments, as well as the interorganizational processes and systems in managing and alleviating SCRs.
Originality/value
This review offers a theoretical articulation of how various aspects of CIRs affect SCRs. Specifically, this study extends the existing understanding of the role of social capital in SCRs through offering a synthesis of dominant findings and discourses, and avenues for future research.
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Vieri Maestrini, Andrea Stefano Patrucco, Davide Luzzini, Federico Caniato and Paolo Maccarrone
Grounding on resource orchestration theory, this paper aims to study the relationship between the way buying companies use their supplier performance measurement systems and the…
Abstract
Purpose
Grounding on resource orchestration theory, this paper aims to study the relationship between the way buying companies use their supplier performance measurement systems and the performance improvements obtained from suppliers, with relationship trust identified as a mediator in the previous link.
Design/methodology/approach
The authors design a conceptual model and test it through structural equation modelling on a final sample of 147 buyer-supplier responses, collected by means of a dyadic survey.
Findings
Results suggest that the buyer company may achieve the most by balancing a diagnostic and interactive use of the measurement system, as they are both positively related to supplier performance improvement. Furthermore, relationship trust acts as a mediator in case of the interactive use, but not for the diagnostic. This type of use negatively affects relationship trust, due to its mechanistic use in the buyer-supplier relationship.
Originality/value
The authors’ results contribute to the current academic debate about supplier performance measurement system design and use by analyzing the impact of different supplier performance measurement system uses, and highlighting their relative impact on relationship trust and supplier performance improvement. From a methodological perspective, adopting a dyadic data collection process increases the robustness of the findings.
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Xiaohong Chen, Qi Shi, Zhifang Zhou and Xu Cheng
Digital transformation misalignment refers to disparities in digital transformation levels between suppliers and buyers across the production and operation process. It has…
Abstract
Purpose
Digital transformation misalignment refers to disparities in digital transformation levels between suppliers and buyers across the production and operation process. It has negatively affected supply chain stability. However, the existing research concerning the economic consequences has not been adequately addressed. Therefore, this paper aims to investigate whether such digital transformation misalignment increases supplier financial risk and to identify the factors influencing this relationship.
Design/methodology/approach
This paper examines binary combinations of suppliers and buyers listed on China’s A-share market between 2011 and 2021. This group constitutes a sample to empirically test the influence of digital transformation misalignment on the supplier’s financial risk, as well as the moderating effect of the geographical and organizational distances.
Findings
The paper’s findings demonstrate that digital transformation misalignment has indeed a significant increase in the supplier’s financial risk. Moreover, the impact is more intense when the geographical or organizational distance between the supplier and the buyer is relatively large.
Originality/value
The existing literature rarely explores the potential risks arising from digital transformation misalignment between supply chain partners. Therefore, this paper fills a notable gap as it is the first to study the impact of digital transformation misalignment on the supplier’s financial risk and the specific applied mechanisms. The contribution significantly improves the field of corporate digital transformation, particularly, within the context of supply chain management.
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Jouni Kauremaa, Johanna Småros and Jan Holmström
This paper aims to address two questions: what kinds of benefits are realized from a vendor‐managed inventory (VMI) program (operational, i.e. efficiency related, vs strategic…
Abstract
Purpose
This paper aims to address two questions: what kinds of benefits are realized from a vendor‐managed inventory (VMI) program (operational, i.e. efficiency related, vs strategic, i.e. sales related) and how the benefits are shared at the dyad level (suppliers vs buyers).
Design/methodology/approach
The paper uses an exploratory multiple case study with data from five operational VMI dyads, evaluating both buyer and supplier perspectives.
Findings
Three empirically grounded patterns of VMI are proposed. Five contextual inhibitors of VMI impacts are suggested.
Research limitations/implications
The framework presented has been generated from a relatively small number of cases. Threats to external validity have been mitigated with case selection from multiple operational contexts and grounding findings in prior literature.
Practical implications
Using the conceptualization, potential VMI adopters can set more realistic and explicit implementation targets. The suggested contextual factors will help to design more appropriate VMI systems.
Originality/value
Past research on VMI can be mainly characterized by modeling/simulation approaches, focus on operational efficiency implications, and concern with impacts to buyers. In contrast, empirical studies on the actual impacts and dyad‐level reasons considering also the strategic (sales related) motivations for implementing VMI are few. This study contributes by suggesting how VMI is in some instances motivated not by bilateral interests to develop a supply chain, but by unilateral interests, with buyers searching for effortless purchasing, and suppliers for a means to lock in and secure sales.
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