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Article
Publication date: 27 February 2009

Benchmarking the viability of SCM for entrepreneurial business model design

Stanley E. Fawcett, Chad Allred, Gregory M. Magnan and Jeffrey Ogden

The purpose of this paper is to benchmark the viability of collaborative supply chain (SC) business models for small businesses.

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Abstract

Purpose

The purpose of this paper is to benchmark the viability of collaborative supply chain (SC) business models for small businesses.

Design/methodology/approach

Survey data was collected from 81 companies with 100 or fewer employees, 169 companies with 101‐500 employees, and 308 companies with more than 500 employees. To help contextualize the findings, eight in‐depth interviews with small firms were conducted.

Findings

Benchmarking the viability of collaborative SC business models using a contingency, resource‐based‐view assessment paradigm reveals a perplexing paradox. Managers at small firms suggest that the majority of the benefits of SCM are within their reach. They also note that the barriers to implementation do not intimidate them. However, they also report that they are not actively pursuing SCM as a strategic weapon. Our research shows that the best way to avoid the cost squeeze and death spiral encountered by small business in today's global SC environment is to create the collaborative capabilities promoted by SCM. That is, while large firms leverage size firms must leverage creative collaboration to insinuate themselves into competitive SC teams to drive long‐term growth. We recommend three alternative SCM strategies based on the small firm's growth strategy.

Originality/value

The small‐business literature on supply chain management (SCM) is relatively scant and provides conflicting views of SCM's viability. This research represents a unique multi‐method approach that shows that SCM is applicable to the world of small business.

Details

Benchmarking: An International Journal, vol. 16 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/14635770910936496
ISSN: 1463-5771

Keywords

  • Supply chain management
  • Entrepreneurialism
  • Benchmarking

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Article
Publication date: 1 January 2006

Organizational commitment and governance for supply chain success

Stanley E. Fawcett, Jeffrey A. Ogden, Gregory M. Magnan and M. Bixby Cooper

To examine the nature and extent of commitment to supply chain collaboration. Also, to explore the state of supply chain governance structures.

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Abstract

Purpose

To examine the nature and extent of commitment to supply chain collaboration. Also, to explore the state of supply chain governance structures.

Design/methodology/approach

A multi‐method survey and in‐depth interview methodology was employed to gather data. Content analysis was then used to identify the types and extent of managerial support for supply chain initiatives.

Findings

Four types of managerial support are needed to achieve the highest levels of supply chain success: top management support, broad‐based functional support, channel support, and infrastructural/governance support. None of the interview companies have put all four types of support in place. Leading‐edge governance relies on cross‐functional/inter‐organizational teams, executive governance councils, customer advisory boards, supplier advisory councils and a modified reporting structure that overseas all value‐added activities from product conceptualization to customer relationship management. Again, none of the interview companies have established all aspects of an effective supply chain governance structure.

Originality/value

Much has been written on the need to focus on supply chains and create more cooperative and integrative relationships with key organizations in the supply chain; however, little has been written concerning the commitment levels among those involved in the supply chain or the types of governance structures that should be utilized within a given organization or along the supply chain. This paper bridges this gap, providing a benchmark for managerial commitment and presenting a composite governance structure based on observed best practices. Both academics and practitioners can use the insights provided to work toward a better understanding of supply chain commitment and governance.

Details

International Journal of Physical Distribution & Logistics Management, vol. 36 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/09600030610642913
ISSN: 0960-0035

Keywords

  • Supply chain management
  • Corporate strategy
  • Organizational structures

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Article
Publication date: 13 April 2010

Mitigating resisting forces to achieve the collaboration‐enabled supply chain

Stanley E. Fawcett, Gregory M. Magnan and Amydee M. Fawcett

The purpose of this paper is to address how companies mitigate existing forces to achieve the collaboration enabled supply chain (SC).

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Abstract

Purpose

The purpose of this paper is to address how companies mitigate existing forces to achieve the collaboration enabled supply chain (SC).

Design/methodology/approach

Seven key theories were used to provide insight into the theoretical framework for the creation of the collaboration‐enabled SC: contingency theory, the resource‐based view of the firm, the relational view of the firm, force field theory, constituency‐based theory, social dilemma theory, and resource‐advantage theory. An exploratory cross‐sectional survey was conducted at two different points in time – a six‐year period in between. The survey targeted three different functional areas – logistics, manufacturing, and sourcing – to compare and contrast functional perceptions of barriers and bridges to collaboration.

Findings

Companies are beginning to pursue greater collaboration, however, managers are often stymied in their pursuit of collaborative business models. The data suggest that the challenge is not the existence of a single barrier to collaboration, but one of accumulation. As the many resistors reinforce each other, the change needed to increase collaboration is avoided. To overcome these challenges, the findings suggest that a comprehensive and carefully executed collaboration strategy is needed to help a company profitably deliver high levels of customer satisfaction. Those companies that succeed achieve substantial, documentable benefits.

Practical implications

The findings reveal that developing a collaboration‐enabled business model is very difficult. Therefore, managers must carefully evaluate their companies' motivation and readiness to pursue a collaboration‐enabled SC, consider whether they can generate momentum for sustained change, and ascertain whether they can persist when benefits are slow to emerge.

Originality/value

This study is both longitudinal and cross‐functional and leads to a better understanding of how to manage, change, and create a collaborative decision‐making environment.

Details

Benchmarking: An International Journal, vol. 17 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/14635771011036348
ISSN: 1463-5771

Keywords

  • Supply chain management
  • Channel relationships

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Article
Publication date: 1 September 1999

Benchmarking manufacturing practice using the product life cycle

Gregory M. Magnan, Stanley E. Fawcett and Laura M. Birou

The dynamic nature of today’s global marketplace places a premium on a firm’s ability to anticipate and to respond to customer needs as well as changing competitive…

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Abstract

The dynamic nature of today’s global marketplace places a premium on a firm’s ability to anticipate and to respond to customer needs as well as changing competitive pressures. Within this environment, developing a successful manufacturing strategy can be critical to the firm’s long‐term competitive success. This paper looks at the potential for using the product life cycle (PLC) as a strategic anchor in the manufacturing strategy planning process. Results of an empirical study that investigated the fit of 44 manufacturing techniques across the PLC stage are presented. The implementation status and impact of the various manufacturing techniques is also considered.

Details

Benchmarking: An International Journal, vol. 6 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/14635779910288523
ISSN: 1463-5771

Keywords

  • Benchmarking
  • Manufacturing
  • Globalization
  • Product lifecycle

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Article
Publication date: 14 August 2007

Information sharing and supply chain performance: the role of connectivity and willingness

Stanley E. Fawcett, Paul Osterhaus, Gregory M. Magnan, James C. Brau and Matthew W. McCarter

The purpose of this paper is to understand how information technology (IT) is used to enhance supply chain performance.

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Abstract

Purpose

The purpose of this paper is to understand how information technology (IT) is used to enhance supply chain performance.

Design/methodology/approach

A large‐scale survey and semi‐structured interviews were used to collect industry data.

Findings

Two distinct dimensions to information sharing – connectivity and willingness – are identified and analyzed. Both dimensions are found to impact operational performance and to be critical to the development of a real information sharing capability. However, many companies are found to have placed most of their emphasis on connectivity, often overlooking the willingness construct. As a result, information sharing seldom delivers on its promise to enable the creation of the cohesive supply chain team.

Research limitations

Despite the extensive data collection, the research represents a snapshot of practice. Replication from a longitudinal perspective would help define how IT is evolving to enable supply chain management.

Practical implications

A roadmap is presented to help guide IT development and investment decisions.

Originality/value

The research presents a two‐by‐two matrix to help managers and academics understand the related nature of connectivity and willingness. A roadmap is presented to help guide IT development and investment decisions.

Details

Supply Chain Management: An International Journal, vol. 12 no. 5
Type: Research Article
DOI: https://doi.org/10.1108/13598540710776935
ISSN: 1359-8546

Keywords

  • Supply chain management
  • Information management
  • Communication technologies
  • Quality improvement

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Article
Publication date: 14 September 2015

Why supply chain collaboration fails: the socio-structural view of resistance to relational strategies

Stanley E. Fawcett, Matthew W. McCarter, Amydee M Fawcett, G Scott Webb and Gregory M Magnan

The purpose of this study is to elaborate theory regarding the reasons why collaboration strategies fail. The relational view posits that supply chain integration can be a…

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Abstract

Purpose

The purpose of this study is to elaborate theory regarding the reasons why collaboration strategies fail. The relational view posits that supply chain integration can be a source of competitive advantage. Few firms, however, successfully co-create value to attain supernormal relational rents.

Design/methodology/approach

This study uses a quasi-longitudinal, multi-case interview methodology to explore the reasons why collaboration strategies fail to deliver intended results. The authors interviewed managers at 49 companies in Period 1 and managers at 57 companies in Period 2. In all, 15 companies participated in both rounds of interviews.

Findings

This study builds and describes a taxonomy of relational resistors. The authors then explore how sociological and structural resistors reinforce each other to undermine collaborative behavior. Specifically, the interplay among resistors: obscures the true sources of resistance; exacerbates a sense of vulnerability to non-collaborative behavior that reduces the willingness to invest in relational architecture; and inhibits the development of essential relational skills and organizational routines.

Originality/value

This research identifies and describes the behaviors and processes that impede successful supply chain alliances. By delving into the interplay among relational resistors, the research explains the detail and nuance of inter-firm rivalry and supply chain complexity. Ultimately, it is the re-enforcing nature of various resistors that make it so difficult for firms to realize relational rents.

Details

Supply Chain Management: An International Journal, vol. 20 no. 6
Type: Research Article
DOI: https://doi.org/10.1108/SCM-08-2015-0331
ISSN: 1359-8546

Keywords

  • Supplier relationships
  • Strategic alliances
  • Collaboration
  • Channel management

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Article
Publication date: 25 January 2008

Benefits, barriers, and bridges to effective supply chain management

Stanley E. Fawcett, Gregory M. Magnan and Matthew W. McCarter

Purpose – The purpose of this article is to provide academics and practitioners a quantitative and qualitative analysis of the benefits, barriers, and bridges to…

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Abstract

Purpose – The purpose of this article is to provide academics and practitioners a quantitative and qualitative analysis of the benefits, barriers, and bridges to successful collaboration in strategic supply chains. Design/methodology/approach – A triangulation method consisting of a literature review, a cross‐functional mail survey, and 51 in‐depth case analyses was implemented. Senior managers from purchasing, manufacturing, and logistics were targeted in the mail survey. The break down by channel category interviews is as follows: 14 retailers, 13 finished goods assemblers, 12 first‐tier suppliers, three lower‐tier suppliers, and nine service providers. Findings – Customer satisfaction and service is perceived as more enduring than cost savings. All managers recognize technology, information, and measurement systems as major barriers to successful supply chain collaboration. However, the people issues – such as culture, trust, aversion to change, and willingness to collaborate – are more intractable. People are the key bridge to successful collaborative innovation and should therefore not be overlooked as companies invest in supply chain enablers such as technology, information, and measurement systems. Research limitations/implications – The average mail‐survey response rate was relatively low: 23.5 percent. The case study analyses were not consistent in frequency across channel functions. Although the majority of companies interviewed and surveyed were international, all surveys and interviews were managers based in the US. Practical implications – This study provides new insight into understanding the success and hindering factors of supply chain management. The extensive literature review, the cross‐channel analysis, and case studies provide academics and managers a macro picture of the goals, challenges, and strategies for implementing supply chain management. Originality/value – This paper uses triangulation methodology for examining key issues of supply chain management at multiple levels within the supply chain.

Details

Supply Chain Management: An International Journal, vol. 13 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/13598540810850300
ISSN: 1359-8546

Keywords

  • Supply chain management
  • Strategic management
  • Relationship marketing

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Article
Publication date: 1 June 2002

The rhetoric and reality of supply chain integration

Stanley E. Fawcett and Gregory M. Magnan

The terminology “supply chain management” is used frequently in today’s materials management environment and is generally associated with advanced information…

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Abstract

The terminology “supply chain management” is used frequently in today’s materials management environment and is generally associated with advanced information technologies, rapid and responsive logistics service, effective supplier management, and increasingly with customer relationship management. Most materials managers are familiar with the supply chain mantra of “suppliers’ supplier to customers’ customer”. However, experience shows that few companies are actually engaged in such extensive supply chain integration. To obtain an accurate view of SCM as it is currently practiced, the experience and insight of industry managers engaged in supply chain initiatives was sought via a multi‐method empirical approach involving both surveys and case study interviews. The findings reveal that supply chain practice seldom resembles the theoretical ideal. Three different levels of SCM implementation are identified and a series of limiting factors are discussed. Managers must recognize the tension that exists between SCM’s competitive potential and the inherent difficulty of collaboration.

Details

International Journal of Physical Distribution & Logistics Management, vol. 32 no. 5
Type: Research Article
DOI: https://doi.org/10.1108/09600030210436222
ISSN: 0960-0035

Keywords

  • Supply chain management
  • Materials management
  • Industry

Content available
Article
Publication date: 13 November 2007

2007 Awards for Excellence

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Abstract

Details

International Journal of Physical Distribution & Logistics Management, vol. 37 no. 10
Type: Research Article
DOI: https://doi.org/10.1108/ijpdlm.2007.00537jaa.002
ISSN: 0960-0035

Content available
Article
Publication date: 24 February 2012

2011 Awards for Excellence

Paul C. Hong

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Abstract

Details

Benchmarking: An International Journal, vol. 19 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/bij.2012.13119aaa.002
ISSN: 1463-5771

Keywords

  • Best practice
  • Communication technologies
  • Electronic commerce
  • Lean production
  • Quality improvement
  • Supply chain management

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