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Article
Publication date: 6 May 2020

Samuel Roscoe, Heather Skipworth, Emel Aktas and Farooq Habib

This paper examines how firms of different sizes formulate and implement strategies to achieve fit with an external environment disrupted by a geopolitical event. The…

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Abstract

Purpose

This paper examines how firms of different sizes formulate and implement strategies to achieve fit with an external environment disrupted by a geopolitical event. The context of the study is the pharmaceutical industry and how it managed the supply chain uncertainty created by the United Kingdom's decision to leave the European Union, or Brexit.

Design/methodology/approach

Data were collected longitudinally from the pro-Brexit vote on 23 June 2016, until the UK’s departure from the EU on 31 January 2020. Twenty-seven interviews were conducted in the pharmaceutical sector, including nineteen interviews with senior managers at eight case companies and eight interviews with experts working for trade associations and standards institutes. The interview findings were triangulated with Brexit policy and strategy documentation.

Findings

When formulating strategy, multi-national enterprises (MNEs) used worst case assumptions, while large firms, and small and medium sized enterprises (SMEs) gathered knowledge as part of a “wait-and-see” strategy, allowing them to reduce perceptions of heightened supply chain uncertainty. Firms then implemented reactive and/or proactive strategies to mitigate supply chain risks.

Originality/value

The study elaborates on strategic contingency theory by identifying two important conditions for achieving strategic fit: first, companies deploy intangible resources, such as management time, to gather information and reduce perceptions of heightened supply chain uncertainty. Second, companies deploy tangible resources (supply chain redundancies, new supply chain assets) to lessen the negative outcomes of supply chain risks. Managers are provided with an empirical framework for mitigating supply chain uncertainty and risk originating from geopolitical disruptions.

Details

International Journal of Operations & Production Management, vol. 40 no. 9
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 30 June 2022

Samuel Roscoe, Emel Aktas, Kenneth J. Petersen, Heather Dawn Skipworth, Robert B. Handfield and Farooq Habib

Why do managers redesign global supply chains in a particular manner when faced with compounding geopolitical disruptions? In answering this research question, this study…

Abstract

Purpose

Why do managers redesign global supply chains in a particular manner when faced with compounding geopolitical disruptions? In answering this research question, this study identifies a constrained system of reasoning (decision-making logic) employed by managers when they redesign their supply chains in situations of heightened uncertainty.

Design/methodology/approach

The authors conducted 40 elite interviews with senior supply chain executives in 28 companies across nine industries from November 2019 to June 2020, when the UK was preparing to leave the European Union, the US–China trade war was escalating, and Covid-19 was spreading rapidly around the globe.

Findings

When redesigning global supply chains, the authors find that managerial decision-making logic is constrained by three distinct environmental ecosystem conditions: (1) the perceived intensity of institutional pressures; (2) the relative mobility of suppliers and supply chain assets; and (3) the perceived severity of the potential disruption risk. Intense government pressure and persistent geopolitical risk tend to impact firms in the same industry, resulting in similar approaches to decision-making regarding supply chain design. However, where suppliers are relatively immobile and supply chain assets are relatively fixed, a dominant logic is consistently present.

Originality/value

Building on an institutional logics perspective, this study finds that managerial decision-making under heightened uncertainty is not solely guided by institutional pressures but also by perceptions of the severity of risk related to potential supply chain disruption and the immobility of supply chain assets. These findings support the theoretical development of a novel construct that the authors term ‘supply chain logics’. Finally, this study provides a decision-making framework for Senior Executives competing in an increasingly complex and unstable business environment.

Details

International Journal of Operations & Production Management, vol. 42 no. 9
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 2 March 2015

Farooq Habib, Marko Bastl and Colin Pilbeam

The purpose of this paper is to identify the strategic options available to a weaker actor to counteract the dominance of a stronger actor in a buyer-supplier…

3536

Abstract

Purpose

The purpose of this paper is to identify the strategic options available to a weaker actor to counteract the dominance of a stronger actor in a buyer-supplier relationship, and identifies those factors that influence the choice of individual options.

Design/methodology/approach

Following a systematic literature review methodology, a five-phase approach of planning, searching, screening, extraction and synthesis was rigorously employed. In total, 48 studies were used to draw conclusions about the phenomena of interest.

Findings

Captured in an integrated conceptual framework, this study identified five strategic options available to the weaker actor in order to counteract a power dominance of a stronger player, which were underpinned by seven influencing factors.

Research limitations/implications

The proposed conceptual framework requires first qualitative empirical validation using an abductive multi-case strategy, followed by a theory testing phase, employing a configurational approach.

Practical implications

The proposed framework suggested that the weaker actor in a buyer-supplier relationship has five options to address power dominance. These options were available within as well as beyond a focal dyadic relationship. For the stronger actor, the authors showed that power dominance is a temporary state rather than permanent.

Originality/value

This study marks one of the first attempts to present a coherent set of strategic options and underpinning factors to counteract power dominance in a buyer-supplier relationship from the perspective of a weaker actor. Given the underexplored nature of the topic, the study also provides guidelines for further research.

Details

International Journal of Physical Distribution & Logistics Management, vol. 45 no. 1/2
Type: Research Article
ISSN: 0960-0035

Keywords

Open Access
Article
Publication date: 12 April 2022

Umar Farooq, Mosab I. Tabash, Ahmed Abousamak and Samar Habib

Corporate firms often follow their peer firms to articulate multiple financial decisions. Among the others, trade credit policy is a vital financial decision that can…

Abstract

Purpose

Corporate firms often follow their peer firms to articulate multiple financial decisions. Among the others, trade credit policy is a vital financial decision that can impart its dynamic role in achieving financial efficiency. Therefore, the current analysis aims to assess the role of herding behavior in determining the trade credit policies of corporate firms and its relevant effect on corporate financial performance.

Design/methodology/approach

For this purpose, the financial data of 13089 nonfinancial sector firms from 50 countries are employed and the dynamic generalized method of moments (GMM) model to estimate the regression is applied.

Findings

The empirical findings first reveal that corporate firms actively mimic their peer firms regarding trade credit policies. However, this mimicking behavior hampers the financial performance due to noncompatibility with peers’ trade credit policies. Peer firms often develop such trade credit policies that are not applicable to corporate firms.

Practical implications

Mainly, the findings of the study suggest two implications. First, it highlights the peer effect in terms of trade credit patterns. Second, it elaborates an adverse effect regarding financial performance due to herding of peers’ trade credit policies.

Originality/value

This study adds new thoughts regarding herding behavior in terms of trade credit policy and its possible consequences for corporate financial performance. No study explores such a relationship.

Details

Asian Journal of Accounting Research, vol. 7 no. 3
Type: Research Article
ISSN: 2443-4175

Keywords

Open Access
Article
Publication date: 18 November 2022

Cristian Castillo

This study aims to identify the past, present and future lines of research in the supply chain resilience (SCRES) literature and to answer the question of whether…

Abstract

Purpose

This study aims to identify the past, present and future lines of research in the supply chain resilience (SCRES) literature and to answer the question of whether resilience is “just another” supply chain (SC) concept or if it constitutes its own theory.

Design/methodology/approach

This study involves a bibliometric analysis of 1,596 research articles published in the Web of Science Core Collection™ database between 2004 and 2021, with a focus on: publications and citations per year, co-citations of articles and authors, co-occurrences of the keywords used and thematic development. Seven SCRES experts have also analysed and discussed the research results.

Findings

The results show how resilience has become one of the main thematic blocks of SC research in the aftermath of the COVID-19 pandemic, with a 62.04% increase in academic publications. Despite the abundant literature, there is still no overarching theory of SCRES. One possible hindrance to the creation of such a theory is the variety of existing definitions and models of SCRES. This research identifies this as a shortcoming that future studies should address. As the results show, the combination of SCRES with other fields, such as engineering and ecology, can help in constructing a global theory of SCRES.

Originality/value

Bibliometric analysis is used to confirm the SCRES literature gap in the development of an overarching theory, although resilience constitutes one of the main thematic blocks of the SC literature.

Details

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

Keywords

Open Access
Article
Publication date: 6 December 2022

Gaurav Kumar Badhotiya, Leena Sachdeva and Gunjan Soni

The manufacturing industry is one of the most disrupted systems as a result of the global spread of the Covid-19 pandemic. Manufacturing firms are looking for strategies…

Abstract

Purpose

The manufacturing industry is one of the most disrupted systems as a result of the global spread of the Covid-19 pandemic. Manufacturing firms are looking for strategies and policies to deal with the situation while also meeting customer demands. This study aims to discuss and analyze the barriers that have impacted manufacturing systems during this period.

Design/methodology/approach

The barriers and performance measures were extracted from the extant literature and further discussed with academic and industry experts. Based on the response of experts, a list of ten barriers and five performance measures were selected for further analysis. The interpretive ranking process (IRP) is applied to analyze the inter-relationship among the barriers with respect to performance variables. The cross-interaction matrices and the dominance profile are created to prioritize the barriers. Based on dominance value, an IRP-based manufacturing barrier evaluation model is developed for validation.

Findings

The impact of the pandemic on the manufacturing industry is analyzed through the list of barriers and a structured ranking model is proposed. The research findings of the study indicate that “Financial constraints” is the most influential barrier to manufacturing due to the outbreak of Covid-19, followed by “Government imposed restrictions” and “Setbacks in logistics services.”

Practical implications

The ranking of barriers and developed interpretive ranking process model would be helpful for practitioners and policymakers to formulate strategies for manufacturing organizations to deal with the pandemic situation. The finding can be beneficial as it promotes similar studies in other sectors.

Originality/value

This study contributes to the manufacturing sector by developing a contextual relationship among the set of identified barriers against various performance measures. As per the author's knowledge, this is the first study that provides a relationship and ranking of manufacturing barriers due to the outbreak of Covid-19.

Details

International Journal of Industrial Engineering and Operations Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2690-6090

Keywords

Abstract

Details

Handbook of Microsimulation Modelling
Type: Book
ISBN: 978-1-78350-570-8

Article
Publication date: 8 June 2022

Parisa Saadat Behbahaninia

This study aims to examine the effects of agency cost on auditor choice. This paper also deals with the moderating role of the board’s financial expertise (Bfe) and the…

Abstract

Purpose

This study aims to examine the effects of agency cost on auditor choice. This paper also deals with the moderating role of the board’s financial expertise (Bfe) and the status of the internal control (Intecon) system on the relationship between agency cost and auditor selection.

Design/methodology/approach

This study’s sample consists of 1,040 firm-year observations of Iranian nonfinancial companies listed on the Tehran Stock Exchange from 2012 to 2019. The information required for this research is mainly extracted from Comprehensive Database of All Listed Companies (in Iran Stock Exchange). Data from 130 companies were obtained during the research period. This study used logistic regression to test the hypotheses.

Findings

The findings indicate that companies with higher agency costs choose the auditor from lower classes. As the proportion of financial expert members on the board increases, the intensity of this relationship will be reduced. Companies with higher agency costs choose the auditor from the lower classes, but the higher the ratio of financial expert board members, the more these companies will choose high-quality auditors. However, findings showed that the status of the Intecon system has no moderating effect on the relationship between agency costs and auditor selection.

Originality/value

The results of this study can expand the existing literature on the relationship between auditor selection and agency costs and the factors affecting this relationship, especially the Bfe and Intecon. This research has significant suggestions for regulators, stakeholders, shareholders and analysts in emerging economies that may encounter similar contextual implications.

Details

Journal of Financial Reporting and Accounting, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1985-2517

Keywords

Article
Publication date: 22 January 2021

Wafa Sassi, Hakim Ben Othman and Khaled Hussainey

The purpose of this paper is to examine the impact of the mandatory adoption of eXtensible Business Reporting Language (XBRL) on firm’s stock liquidity.

Abstract

Purpose

The purpose of this paper is to examine the impact of the mandatory adoption of eXtensible Business Reporting Language (XBRL) on firm’s stock liquidity.

Design/methodology/approach

Using a random-effects model, this study examines the impact of the mandatory adoption of XBRL (ADOPXBRL) on firm’s stock liquidity of 980 companies pertaining to 13 countries for a period from 2000 to 2016.

Findings

This paper finds that the mandatory ADOPXBRL affects negatively and significatively Amihud’s (2002) illiquidity ratio. Therefore, mandatory XBRL adoption enhances the firm’s stock liquidity. In addition, this paper finds that the impact of the mandatory ADOPXBRL on firm’s stock liquidity is more pronounced in civil law countries than in common law countries.

Originality/value

This paper contributes to the literature on the advantage of XBRL especially for the civil law countries by examining the impact of the mandatory ADOPXBRL on firm’s stock liquidity.

Details

Journal of Financial Reporting and Accounting, vol. 19 no. 2
Type: Research Article
ISSN: 1985-2517

Keywords

Article
Publication date: 22 October 2020

Mohammed Bouaddi, Omar Farooq and Neveen Ahmed

This study examines the effect of dividend policy on the ex ante probability of stock price crash and the ex ante probability stock price jump.

Abstract

Purpose

This study examines the effect of dividend policy on the ex ante probability of stock price crash and the ex ante probability stock price jump.

Design/methodology/approach

We use the data of publicly listed non-financial firms from France and the ex ante measures of crash and jump probabilities (based on the Flexible Quadrants Copulas) to test our hypothesis during the period between 1997 and 2019.

Findings

Our results show that dividend payments are negatively associated with the ex ante probability of crash and positively associated with the ex ante probability of jump. Our results are robust across various sub-samples and across different proxies of dividend policy. Our findings also hold when we use ex-post measures of crash and jump probabilities.

Originality/value

Unlike prior literature, we use ex ante measures of crash and jump probabilities. The main advantage of this forward looking measure is that it allows for more flexibility by modeling the dependence between market returns and stock returns as functions of their actual state. Our measure is also consistent with the behavior of investors and market participants in a way that the market participants do not know the future outcome with certainty, but rather they are anticipating the future.

Details

International Journal of Managerial Finance, vol. 17 no. 4
Type: Research Article
ISSN: 1743-9132

Keywords

1 – 10 of 90