Search results

1 – 6 of 6
To view the access options for this content please click here
Article
Publication date: 6 July 2021

Fabienne Chedid, Canan Kocabasoglu-Hillmer and Jörg M. Ries

The importance of the supply network to firm performance is well documented. Until now, the firm and its suppliers have been conceptualized as single entities. Yet…

Abstract

Purpose

The importance of the supply network to firm performance is well documented. Until now, the firm and its suppliers have been conceptualized as single entities. Yet, multinational corporations (MNCs) are composed of a complex, geographically dispersed internal network of subsidiaries. The supply and internal networks are inherently linked. The purpose of this study is to investigate the impact of the interaction of these networks on firm-level financial performance.

Design/methodology/approach

Building on supply network, internal network and dual embeddedness research, the authors investigate the interaction of these networks using supply network data from FactSet and internal network data from Orbis. We assess the impact at the MNC level, using measures of firm-level financial performance, physical proximity between the two networks and geographic dispersion of the internal network.

Findings

The results show that the performance effect of physical proximity of the firm with its supply network is negatively moderated by the geographic dispersion of the firm's internal network. This effect can be traced back to the diminishing marginal profitability of a firm's assets. Moreover, the benefits of dual embeddedness to the individual subsidiary come at a cost at the firm-level due to the operational challenges of managing a complex subsidiary network.

Research limitations/implications

This study is the first to investigate the supply and internal networks of MNCs simultaneously.

Originality/value

The paper extends supply network literature by considering the internal network of the focal firm and its suppliers. This paper is one of the first studies that offer an understanding of the interaction between supply and internal networks of a focal firm and the effect on financial performance.

Details

International Journal of Operations & Production Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-3577

Keywords

To view the access options for this content please click here
Article
Publication date: 13 May 2021

Byung-Gak Son, Sangho Chae and Canan Kocabasoglu-Hillmer

Catastrophic supply chain disruptions can significantly damage the operational and financial performance of firms. While a growing body of literature on supply network…

Abstract

Purpose

Catastrophic supply chain disruptions can significantly damage the operational and financial performance of firms. While a growing body of literature on supply network structures has studied what influences supply networks' vulnerability to supply chain disruptions and capability to recover from them, it remains unclear how supply network structures change after major supply chain disruptions. We aim to provide an understanding of how these changes occur.

Design/methodology/approach

Using a natural experiment approach and supply network data from Factset, this study investigates how firms' supply network structures change after experiencing the catastrophic supply chain disruptions caused by the 2011 Tohoku earthquake and tsunami in Japan. We capture post-earthquake supply network changes using the measures of degree centrality and ego network density.

Findings

The results of the analysis suggest that compared to unaffected firms, the affected firms experience changes in their supply network structures tending toward lower complexity measured by in-degree centrality, out-degree centrality and ego network density.

Originality/value

This study contributes to social network theory and the complex adaptive supply network literature by providing empirical evidence of structural changes in supply networks after catastrophic supply chain disruptions. A managerial contribution is made by providing a reflection on why these changes might be occurring and alert firms to the challenges of managing complexity in their supply networks.

Details

International Journal of Operations & Production Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-3577

Keywords

To view the access options for this content please click here
Article
Publication date: 14 March 2018

Chris Storey, Canan Kocabasoglu-Hillmer, Sinéad Roden and Ko de Ruyter

The complexity of supplier-partner networks in the information technology (IT) sector where large suppliers utilize thousands of authorized partners requires that…

Abstract

Purpose

The complexity of supplier-partner networks in the information technology (IT) sector where large suppliers utilize thousands of authorized partners requires that organizations reconsider their approach to governing and managing the relationships involved. Traditional dyadic approaches to governance are likely to prove inadequate. The purpose of this paper is to investigate the relationship between network governance mechanisms and relationship performance. Specifically, the authors examine the contingent effect of certification of partners and the use of partner communities (as formal and informal mechanisms of network governance, respectively), on complex and embedded networks of relationships.

Design/methodology/approach

A model examining the effect of formal and informal network governance on the relationship between embeddedness (structural and relational) and relationship performance is developed. Data were collected from a sample of partners of leading IT suppliers in the UK and Ireland. Three-way interactions assess the contingent effect of certification and partner communities on the relationship between embeddedness and relational performance.

Findings

Results support the use of a combination of certification and partner communities to strengthen the link between network structure (structural embeddedness) and relational embeddedness, as well as relationship performance. Certification requires the sharing of explicit knowledge with partners whereas partner communities aid the creation and dissemination of more tacit, contextual knowledge. Furthermore, partner communities reinforce positive perceptions of fairness in suppliers’ network management practices, overcoming any perceptions of lock-in or coercive control that certification may suggest.

Practical implications

Certification, despite all its procedural and reputational benefits, damages partner relationships and needs to be supported by partner communities, which themselves show particularly strong benefits in enhancing network relationships.

Originality/value

Despite the emerging prevalence of certification and partner communities in business-to-business relationships, to date there is a paucity of research on their effects on partner relationships and performance. Organizations with an extensive network of similar partners may suffer network overload. This research shows that such organizations can manage their partner network more effectively through network governance mechanisms, thereby addressing the challenge of overload.

Details

International Journal of Operations & Production Management, vol. 38 no. 9
Type: Research Article
ISSN: 0144-3577

Keywords

To view the access options for this content please click here
Article
Publication date: 3 February 2015

Minkyun Kim, Nallan C Suresh and Canan Kocabasoglu-Hillmer

The aim of this study is to investigate the relationships among strategic sourcing, e-procurement and firm performance, along with the moderating effects of business…

Abstract

Purpose

The aim of this study is to investigate the relationships among strategic sourcing, e-procurement and firm performance, along with the moderating effects of business characteristics and environmental factors on these relationships.

Design/methodology/approach

This empirical investigation relies on structured survey responses from 137 managers of US manufacturing firms. The partial least squares-based structural equation modeling approach is used for data analysis.

Findings

The research results confirm that both strategic sourcing and e-procurement have a positive effect on firm performance. In addition, e-procurement is also found to have a positive impact on strategic sourcing. In addition, the research results suggest that business characteristics and the environment, especially the degree of competition, market turbulence, firm size and stage in product life cycle moderate these relationships significantly. The positive effects of strategic sourcing and e-procurement on firm performance are particularly enhanced under the right conditions.

Originality/value

This research is the first, to the best of our knowledge, to provide insights into the joint effects of strategic sourcing and e-procurement, and how business characteristics and the environment affect their roles on firm performance. In addition, firm performance is evaluated as a multi-dimensional construct involving financial, operational and supply chain aspects, with the measurements consisting of several second-order constructs. The study makes both theoretical and practical contributions.

Details

Journal of Business & Industrial Marketing, vol. 30 no. 1
Type: Research Article
ISSN: 0885-8624

Keywords

To view the access options for this content please click here
Article
Publication date: 6 January 2012

Chung‐Yean Chiang, Canan Kocabasoglu‐Hillmer and Nallan Suresh

The purpose of this paper is to investigate two potentially key drivers of a firm's supply chain agility, namely strategic sourcing and firm's strategic flexibility…

Abstract

Purpose

The purpose of this paper is to investigate two potentially key drivers of a firm's supply chain agility, namely strategic sourcing and firm's strategic flexibility. Despite some theoretical and conceptual works suggesting that some elements of these two constructs may relate to agility, this has not yet been assessed together empirically. This study aims to address this gap in the literature.

Design/methodology/approach

This study involves an empirical investigation of a theory‐based model based on the competence‐capability framework, and a dynamic capabilities theoretical perspective, where the internal competencies of strategic sourcing and firm's strategic flexibility relate to the dynamic capability of the firm's supply chain agility. This investigation also includes the testing of a possible mediation effect of firm's strategic flexibility on the relationship between strategic sourcing and the firm's supply chain agility. The model is tested utilizing data from 144 US manufacturing firms via partial least square methodology.

Findings

The results of the empirical study indicated that both strategic sourcing and firm's strategic flexibility were significantly related to the firm's supply chain agility. In addition, while a full mediation effect was not found on the part of strategic flexibility, there was evidence for partial mediation.

Research limitations/implications

Given that the data are from specific US industries, the generalizability of current findings to other industries or countries may require additional investigation.

Originality/value

Given the attention paid to agility in terms of its importance to responding to business uncertainty, and more recently, as an important capability in managing supply chain disruption risks, this paper investigates how strategic sourcing and flexibility can contribute to agility.

Details

International Journal of Operations & Production Management, vol. 32 no. 1
Type: Research Article
ISSN: 0144-3577

Keywords

Abstract

Details

International Journal of Operations & Production Management, vol. 40 no. 1
Type: Research Article
ISSN: 0144-3577

1 – 6 of 6