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1 – 10 of 635Thomas Koerber and Holger Schiele
This study aims to examine decision factors for global sourcing, differentiated into transcontinental and continental sourcing to obtain insight into locational aspects of…
Abstract
Purpose
This study aims to examine decision factors for global sourcing, differentiated into transcontinental and continental sourcing to obtain insight into locational aspects of sourcing decisions and global trends. This study analyzed various country perceptions to reveal their influence on sourcing decisions. The country of origin (COO) theory explains why certain country perceptions and images influence purchasing experts in their selection of suppliers.
Design/methodology/approach
This study used a two-study approach. In Study 1, the authors conducted discrete choice card experiments with 71 purchasing experts located in Europe and the USA to examine the importance of essential decision factors for global sourcing. Given the clear evidence that location is a factor in sourcing decisions, in Study 2 the authors investigated purchasers’ perceptions and images of countries, adding country ranking experiments on various perceived characteristics such as quality, price and technology.
Findings
Study 1 provides evidence that the purchasers’ personal relationship with the supplier plays a decisive role in the supplier selection process. While product quality and location impact sourcing decisions, the attraction of the buying company and cultural barriers are less significant. Interestingly, however, these factors seem as important as price to respondents. This implies that a strong relationship with suppliers and good quality products are essential aspects of a reliable and robust supply chain in the post-COVID-19 era. Examining the locational aspect in detail, Study 2 linked the choice card experiments with country ranking experiments. In this study, the authors found that purchasing experts consider that transcontinental countries such as Japan and China offer significant advantages in terms of price and technology. China has enhanced its quality, which is recognizable in the country ranking experiments. Therefore, decisions on global sourcing are not just based on such high-impact factors as price and availability; country perceptions are also influential. Additionally, the significance of the locational aspect could be linked to certain country images of transcontinental suppliers, as the COO theory describes.
Originality/value
The new approach divides global sourcing into transcontinental and European sourcing to evaluate special decision factors and link these factors to the locational aspect of sourcing decisions. To deepen the clear evidence for the locational aspect and investigate the possible influence of country perceptions, the authors applied the COO theory. This approach enabled authors to show the strong influence of country perception on purchasing departments, which is represented by the locational effect. Hence, the success of transcontinental countries relies not only on factors such as their availability but also on the purchasers’ positive perceptions of these countries in terms of technology and price.
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Maria Björklund, Helena Forslund and Veronica Svensson Ülgen
Contradictory sustainability priorities and perspectives among supply chain actors in greening transportation can be challenging. Several of these contradictions can be described…
Abstract
Purpose
Contradictory sustainability priorities and perspectives among supply chain actors in greening transportation can be challenging. Several of these contradictions can be described as paradoxes (i.e. interests that are logical in themselves, but become irrational when perceived together). The aim of this study is to increase the understanding of paradoxical tensions hampering the greening of transportation in transport buyer–supplier dyads.
Design/methodology/approach
A case study method targeting greening transportation in two transport buyer–supplier dyads was applied, followed by an analysis with a point-of-departure in paradox theory.
Findings
Tensions related to performing, belonging, learning and organizing paradoxes in greening transportation were identified. These tensions arise as a consequence of actions, perspectives and other tensions, within three identified loci in individual companies and in dyads.
Research limitations/implications
By identifying examples of tensions through the lens of paradoxes in a particular setting, this study provides an increased understanding of why the transition toward green transportation goes slow, despite the high ambitions of involved actors. The suggested framework provides a novel contribution to the literature that further increases the understanding of tensions, by providing additional insights into where tensions arise and how actions, perspectives and tensions in one place of a locus spectrum can disseminate along that spectrum.
Originality/value
This study is original because it applies paradox theory and the four categories of performing, belonging, learning and organizing within the field of greening transportation, and in particular as a lens to study interactions between different actors.
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Aaron Ecel, Godwin Mwesigye Ahimbisibwe, Dennis Nuwagaba, Mariah Nakintu Nankya and Shareen Nahurira
Preferential market access is a pillar of the enabling clause in international trade, and as such has received scholarly attention in the recent past. This study aims to…
Abstract
Purpose
Preferential market access is a pillar of the enabling clause in international trade, and as such has received scholarly attention in the recent past. This study aims to empirically examine intensity and utilisation of Uganda’s preferential market access.
Design/methodology/approach
Secondary data at the six-digit level of the harmonised system was sourced from the International Trade Centre’s and UN COMTRADE’s Trade Map database on trade flows to compute; trade intensity indices, Balsa’s revealed comparative advantage (RCA) indices and the existing potential trade. The time period was 2013–2022.
Findings
It is evident that Uganda is not taking full advantage of its preferential market access. The findings of the trade intensity analysis revealed that the strength of trade relations between Uganda and its preferential markets has been consistently weak in the period 2013–2022, while the intensity of trade relations with its FTA partners has been strong. The RCA results revealed that all Uganda’s agricultural exports to its preferential markets have a comparative advantage, with exports of roses reporting an exceptionally high RCA relative to other agricultural exports. The RCA results also show that the comparative advantage of Uganda’s coffee exports recovered after a significant fall in the period 2014–2022. The analysis of the existing potential for trade reveals a disproportionally low market share held by Uganda across all product lines, notably, only 2.3% of the US$29bn coffee imports in its preferential markets.
Research limitations/implications
One limitation of this study is that it primarily relied on quantitative data from the International Trade Centre and thus lacks an exhaustive understanding of the circumstances at the export firm level. Qualitative data, such as interviews with exporters and policymakers, could provide deeper insights into the specific challenges and opportunities faced by Ugandan businesses in these markets.
Practical implications
This paper highlights the need for additional trade facilitation measures to address preferential market access bottlenecks such as stringent rules of origin and call for an aggressive government intervention in enhancing the export readiness of SMEs in Uganda. In addition, the paper is informative to Uganda’s exporters regarding the existing and potential increase in their exports to international markets.
Originality/value
The strength of Uganda’s trade relations with its preferential markets is empirically examined in this paper and provides useful insights for enhancing utilisation of preferential market access by beneficiary countries.
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Shanzhong Du and June Cao
Industrial robots are of great significance to the long-term development of family firms. Drawing on the lens of the principal–principal conflict, this paper aims to investigate…
Abstract
Purpose
Industrial robots are of great significance to the long-term development of family firms. Drawing on the lens of the principal–principal conflict, this paper aims to investigate the influence of family non-executive directors on robot adoption in Chinese family firms.
Design/methodology/approach
This paper selects the family firms in China from 2011 to 2019 as the sample. Furthermore, the authors manually collected the family non-executive directors and constructed the robot adoption variable utilizing data sourced from the International Federation of Robotics. In brief, this paper constructs a comprehensive framework of the mechanisms and additional tests pertaining to the influence of family non-executive directors on robot adoption.
Findings
This paper finds that family non-executive directors can promote robot adoption in family firms. The underlying mechanism analysis shows that family non-executive directors promote robot adoption by exerting financial and human effects. This paper further finds that the characteristics of family non-executive directors, such as kinship, differential shareholding and excessive directors, affect the role of family non-executive directors. Finally, robot adoption can improve future performance, and the promotional effect is more evident when family members are non-executive directors.
Originality/value
This paper contributes to the related literature from the following two aspects. Firstly, this paper decomposes the types of family directors to understand the role of family non-executive directors, which challenges the assumption that family board members are homogeneous in family firms. Second, this paper expands the research on the factors that influence robot adoption in emerging economies from the micro-enterprise level. In addition, the findings in this paper have managerial implications for family firms to optimize their strategic decisions with the help of the mode of board right allocation.
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Anna Izotova and María Teresa Bolívar-Ramos
Due to the constantly increasing competitiveness along with the complexity of knowledge, firms perceive collaboration as a key strategy that preserves firms' radical innovation…
Abstract
Purpose
Due to the constantly increasing competitiveness along with the complexity of knowledge, firms perceive collaboration as a key strategy that preserves firms' radical innovation performance. In this context, this paper aims to examine how firms’ partners’ diversity in open innovation activities influences the development of radical innovations, critical for social development. In particular, this study analyzes how the functional and geographical breadth of the firm’s collaboration portfolio affects its radical innovation performance. Furthermore, it also explores the role of firm size as a moderator in the relationships proposed.
Design/methodology/approach
This research employs panel data analysis, using a sample of 4,677 Spanish firms, with data sourced from the PITEC database.
Findings
The results of this study show that there is an inverted U-shaped relationship between the functional and the geographical breadth of collaborations and the firms’ radical innovation performance. Moreover, this study finds partial support for the moderating role of firm size, in the sense that small and medium-sized enterprises (SMEs) and large firms vary in their optimal number of diversity of partners.
Originality/value
This research provides a better understanding on how partners’ functional and geographical diversity, along with organizational characteristics such as firm size, affect how firms benefit from collaboration for innovation. This study shows that both SMEs and large firms experience diminishing returns when their collaboration networks become overly diverse in pursuit of radical innovation, due to increased costs. However, in SMEs, the turning point occurs at a later stage, consistent with the idea that small firms need broader functional networks to access complementary and novel resources they usually lack.
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Juri Matinheikki, Katie Kenny, Katri Kauppi, Erik van Raaij and Alistair Brandon-Jones
Despite the unparalleled importance of value within healthcare, value-based models remain underutilised in the procurement of medical devices. Research is needed to understand…
Abstract
Purpose
Despite the unparalleled importance of value within healthcare, value-based models remain underutilised in the procurement of medical devices. Research is needed to understand what factors incentivise standard, low-priced device purchasing as opposed to value-adding devices with potentially higher overall health outcomes. Framed in agency theory, we examine the conditions under which different actors involved in purchasing decisions select premium-priced, value-adding medical devices over low-priced, standard medical devices.
Design/methodology/approach
We conducted 2 × 2 × 2 between-subjects scenario-based vignette experiments on three UK-based online samples of managers (n = 599), medical professionals (n = 279) and purchasing managers (n = 449) with subjects randomly assigned to three treatments: (1) cost-saving incentives, (2) risk-sharing contracts and (3) stronger (versus weaker) clinical evidence.
Findings
Our analysis demonstrates the harmful effects of intra-organisational cost-saving incentives on value-based purchasing (VBP) adoption; the positive impact of inter-organisational risk-sharing contracts, especially when medical professionals are involved in decision-making; and the challenge of leveraging clinical evidence to support value claims.
Research limitations/implications
Our results demonstrate the need to align incentives in a context with multiple intra- and inter-organisational agency relationships at play, as well as the difficulty of reducing information asymmetry when information is not easily interpretable to all decision-makers. Overall, the intra-organisational agency factors strongly influenced the choices for the inter-organisational agency relationship.
Originality/value
We contribute to VBP in healthcare by examining the role of intra- and inter-organisational agency relationships and incentives concerning VBP (non-) adoption. We also examine how the impact of such mechanisms differs between medical and purchasing (management) professionals.
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Owais Khan and Andreas Hinterhuber
The role of procurement managers is crucial for diffusing sustainability throughout the supply chain. Whether or not they are willing to pay for sustainability is an important and…
Abstract
Purpose
The role of procurement managers is crucial for diffusing sustainability throughout the supply chain. Whether or not they are willing to pay for sustainability is an important and not yet fully understood question. The authors examine antecedents and consequences of their willingness to pay (WTP) for sustainability.
Design/methodology/approach
The authors develop a multi-level framework to examine the WTP for sustainability in a B2B context. The authors test this multi-level framework with 372 procurement managers from multiple sectors and countries using partial least squares structural equation modeling.
Findings
The authors find that individual values of procurement managers and institutional pressures directly, while ethical organizational culture indirectly influence WTP for sustainability. Functional and cognitive competencies of procurement managers improve the sustainability of procurement, but not WTP for sustainability. Importantly, WTP for sustainability directly influences the performance of the procurement function which in turn is positively associated with increased organizational performance.
Originality/value
The study, examining the interplay between individual, organizational and contextual factors, provides empirical evidence on the pivotal role of procurement managers in diffusing sustainability throughout the supply chain. The findings of the study, on the one hand, contribute to the literature on operations management and sustainability, and on the other hand, guide policy and managerial actions.
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Through the subject of business network dynamics, this study aims to examine how business network relationships impact company entry market and development within fast growing…
Abstract
Purpose
Through the subject of business network dynamics, this study aims to examine how business network relationships impact company entry market and development within fast growing economies as China. The paper looks at business network relationships in a fast-growing economy and provides an understanding of the relational perspectives in internationalisation of three luxury fashion companies and their entry models affected by the China context-related variables.
Design/methodology/approach
The methodology is following a qualitative approach, based on multiple case-studies research, proposing three cases of companies entering the Chinese market in the luxury and fashion industry.
Findings
The research analyses the local business network paths and how they affect the entry strategy through the socio-cultural and political players. The paper adds knowledge to studies in market entry and business networks, in the fast-growing economies area, with its new norms and values.
Originality/value
This study tries to analyse how business networks and related relationships “with Chinese characteristics” affect the market entry strategy in the internationalisation path from the perspective of the luxury fashion industry sector. In so doing it tries to provide an original further development of business network models within the new Chinese context.
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After completion of the case study, students will be able to: 1. understand the basis for developing global supply chains for exploring international markets, 2. identify the…
Abstract
Learning outcomes
After completion of the case study, students will be able to: 1. understand the basis for developing global supply chains for exploring international markets, 2. identify the various sources of geopolitical risk while expanding globally, 3. assess the market entry or exit decisions from a principled and commercial perspective and 4. identify and weigh different options when faced with an exit situation under conditions of geopolitical risk.
Case overview/synopsis
The Japanese fast fashion brand Uniqlo opened 45 stores in Russia as a part of its international retail expansion strategy. The brand provided affordable fashion for everyone. However, the Russia–Ukraine armed conflict had put the company in a dilemma. The Japanese Government and the public joined the broader global community in condemning Russia’s armed intervention in Ukraine. These countries also imposed economic sanctions on Russia, resulting in many multinational companies winding up their operations in Russia. Uniqlo faced a market exit dilemma. Russia had the largest number of Uniqlo stores in Europe. The company CEO also highlighted the necessity of meeting the clothing needs of the Russian people. However, people in Japan and elsewhere considered Russia as an aggressor nation. Any economic link with the Russian market would be ethically wrong, and consumers in Japan, the USA and the European Union might see this as support for Russia’s war efforts. The company had to choose between continuing operations in Russia or exiting the Russian market.
Complexity academic level
This case study can be used in basic marketing management and international business courses to discuss the market attractiveness and risk aspects for market entry or exit decisions. It can also be used in advanced courses such as strategic management, global strategy and global political economy, highlighting the impact of geopolitical conflicts on business operations.
Supplementary materials
Teaching notes are available for educators only.
Subject code
CSS 11: Strategy.
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Roosa Amanda Lambin and Milla Nyyssölä
Mainland Tanzania has seen two decades of significant social policy reforms and transformations in its social and economic structures, whilst the country continues to grapple with…
Abstract
Purpose
Mainland Tanzania has seen two decades of significant social policy reforms and transformations in its social and economic structures, whilst the country continues to grapple with persisting gender inequalities. This article examines Tanzania's social policy developments from a gender perspective. The authors analyse the level, reach and quality of social policy delivery to working-age women across the areas of health policy, social protection and employment policy during 2000–2021.
Design/methodology/approach
The article draws on qualitative research deploying the scoping review method. The data consist of diverse secondary materials, including academic publications, government policy documents, relevant statistics and other types of “grey” literature.
Findings
Tanzania has made significant advancements in the legal frameworks around welfare provision and has instituted increasingly gender-responsive government policy plans. The health and social protection sectors, in particular, have witnessed the introduction of large-scale measures expanding social policy implementation. However, social policy delivery remains two-tiered, with differences in provisions for women in the formal and informal sectors.
Originality/value
Social policy delivery and implementation have increased and diversified in Sub-Saharan Africa (SSA) during the new millennium, with a growing integration of gender-specific policy objectives. However, limited social policy scholarship has focused on the gendered effects of broader social policy models in SSA. The article remedies the concomitant knowledge gaps by examining various social policies and their impacts on working-age women in Mainland Tanzania. The authors also engage with the theoretical welfare regime literature and present an analytical framework for gender-sensitive assessment of emerging social policy models in the Global South.
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