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1 – 10 of over 1000Beheshte Momeni, Mario Rapaccini and Miia Martinsuo
Manufacturers face various challenges and risks during their digital servitization (DS), due to the complexity caused by introducing breakthrough technologies, increasingly…
Abstract
Purpose
Manufacturers face various challenges and risks during their digital servitization (DS), due to the complexity caused by introducing breakthrough technologies, increasingly complex product-service solutions and new stakeholders in the business network. The process necessitates the implementation of various changes that usually happen over a long period of time. Using complexity management as a theoretical lens, this paper delves into manufacturers’ DS journeys and explores how manufacturers manage the associated complexities.
Design/methodology/approach
This paper investigates the DS journey of two manufacturers in a longitudinal case study from 2014 to 2021.
Findings
Three main complexity management actions during the DS journey were identified: shaping the digital service system, shaping the organization and shaping the network. Tied to different types of complexities, these actions demonstrate how manufacturers navigate their journey. The findings also reveal different complexity management approaches used at the different stages of this journey.
Originality/value
This paper offers a comprehensive framework for understanding complexity management in the DS journey, including the types of complexities, complexity management actions and complexity management approaches and their rationale. This paper shows that different requirements are created during emerge, consolidate and evolve stages of the DS journey. Manufacturers need a dynamic approach that considers changes in complexities and actions over time.
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Olivia McDermott and Breda Kearney
The European Union (EU) Medical Device Regulations (MDR) 2017/745 entered into force on May 2021 with changes related to strengthening the clinical evaluation requirements…
Abstract
Purpose
The European Union (EU) Medical Device Regulations (MDR) 2017/745 entered into force on May 2021 with changes related to strengthening the clinical evaluation requirements, particularly for high-risk devices. This study aims to investigate the impact of these strengthened requirements on medical device manufacturers by investigating the challenges they encounter while generating an MDR-compliant clinical evaluation report.
Design/methodology/approach
A systematic literature review was carried out using the Preferred Reporting Items for Systematic Reviews and Meta-Analyses method of peer-reviewed literature and various government jurisdictional reports and legislation.
Findings
The findings from the study understanding what constitutes sufficient clinical evidence poses the biggest challenge to the generation of an MDR-compliant clinical evaluation report. Resulting from the challenges they are facing, manufacturers of certain CE-marked medical devices are planning to remove (and have removed) devices from the EU market upon expiration of their certificate, and in the case of new and innovative devices, some manufacturers are planning to launch in other markets ahead of the EU. These challenges will lead to a potential shortage of certain medical devices in the EU and a delay in access to new devices, thereby negatively impacting patients’ quality of life.
Practical implications
This study provides a unique insight into the challenges currently experienced by medical device manufacturers as they transition to the MDR clinical evaluation requirements and the subsequent impact on the continued availability of medical devices in the EU. A limitation is the lack of literature analysing the regulations and their effects.
Originality/value
This study has both theoretical contributions in that, to the best of the authors’ knowledge, it is the first detailed and systematic review of the new MDR Regulations and has implications for practice as manufacturers and policymakers can leverage it alike to understand the challenges of the new MDR.
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Xiaogang Cao, Cuiwei Zhang, Jie Liu, Hui Wen and Bowei Cao
The purpose of this article is based on the unit patent license fee model in the closed-loop supply chain.
Abstract
Purpose
The purpose of this article is based on the unit patent license fee model in the closed-loop supply chain.
Design/methodology/approach
This paper analyzes the impact of the bundling strategy of the retailer selling new products and remanufactured products on the closed-loop supply chain under the condition that the original manufacturer produces new products and the remanufacturer produces remanufacturing products.
Findings
The results show that alternative products can be bundled, and in many cases, the bundling of remanufactured products and new products is better than selling alone.
Originality/value
If the retailer chooses bundling, for the remanufacturer, when certain conditions are met, the benefits of bundling are greater than the separate sales at that time; for the original manufacturer, when the recycling price sensitivity coefficient is high, the bundling is better than separate sales.
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Abstract
Purpose
The managerial questions of this paper are as follows, and the authors are trying to solve them: How revenue sharing contract (CSR) degree and government subsidy affect the agri-food quality? What kind of model (WPC, revenue-sharing contract [RSC] and cooperative) would be more effective in motivating manufacturers and retailer to increase effort and improve agri-food quality? What kind of model (WPC, RSC and cooperative) would make manufacturer and retailer better off?
Design/methodology/approach
Considering the jointing quality effort and contract decision in green agri-food supply chain, this paper proposes six models that consider CSR of manufacturer and retailer, and then the obtained optimal solutions are compared and analyzed. At the same time, the impact of government subsidies is analyzed, and corresponding conclusions are drawn.
Findings
The results show that, first of all, whether the increasing CSR of the manufacturer or the retailer can motivate both parties to improve the agri-food quality effort investment. Second, the WPC and RSC contract may play different role in different cases. Finally, under the model with government subsidies, regarding positive influence of government subsidies on efforts of manufacturer and retailer, quality and profits of members is investigated. Based on these conclusions, this study puts forward the following policy suggestions. Firstly, governments should formulate reasonable subsidy policies to support manufacturer and retailer to improve the agri-food quality, thereby promoting green industries' development. Secondly, manufacturer and retailer should actively improve CSR and strengthen the effort of agri-food so as to advance quality. Finally, manufacturer and retailer can choose cooperative model or WPC contract.
Research limitations/implications
In this paper, one manufacturer and one retailer are considered. Since the agri-food supply chain structure in reality is more complicated, the future research direction can consider the supply chain structure with one manufacturer and multiple retailers. In addition, this paper only considers the subsidy, and future research can classify the subsidy into different types.
Originality/value
The study makes two substantive contributions to the body of knowledge in the field of sustainable operations:(1) incorporating quality-based demand function in supply chain and dynamic process of agri-food quality; (2) exploring the impact of CSR awareness of members and subsidy of government on agri-food quality, and comparing the influence in different models.
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From the quantum game perspective, this paper aims to study a green product optimal pricing problem of the dual-channel supply chain under the cooperation of the retailer and…
Abstract
Purpose
From the quantum game perspective, this paper aims to study a green product optimal pricing problem of the dual-channel supply chain under the cooperation of the retailer and manufacturer to reduce carbon emissions.
Design/methodology/approach
The decentralized and centralized decision-making optimal prices and profits are obtained by establishing the classical and quantum game models. Then the classical game and quantum game are compared.
Findings
When the quantum entanglement is greater than 0, the selling prices of the quantum model are higher than the classical model. Through theoretical research and numerical analysis results, centralized decision-making is more economical and efficient than decentralized decision-making. Publicity and education on carbon emission reduction for consumers will help consumers accept carbon emission reduction products with slightly higher prices. When the emission reduction increases too fast, the cost of emission reduction will form a significant burden and affect the profits of manufacturers and supply chain systems.
Originality/value
From the perspective of the quantum game, the author explores the optimal prices of green product and compares them with the classical game.
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The authors investigate the manufacturer's choice of discount schemes in a supply chain with competing retailers.
Abstract
Purpose
The authors investigate the manufacturer's choice of discount schemes in a supply chain with competing retailers.
Design/methodology/approach
Using a game-theoretic model, the authors build two discount frameworks and compare and analyze the effects of different discount schemes on the performance of supply chain members.
Findings
The authors find that the retail price (market demand) in the quantity discount scheme is always higher (lower) than that in the market share discount scheme. The authors also find that the retailers' preference for discount schemes is antithetical to the manufacturer's preference in most cases. However, under certain conditions, there will be a win-win situation where Pareto-optimization occurs between the manufacturer and retailers when they choose the same discount scheme.
Research limitations/implications
On the one hand, the authors assume that the two retailers are symmetrical in market size and operation efficiency. It would be interesting to study the effect of different discount schemes on retailers when the retailers have different market sizes or operating efficiency. On the other hand, the authors study the manufacturer's choice of discount schemes in a supply chain with one common manufacturer and two competing retailers. However, in practice, there exist other supply chain structures. Future research can examine the problem of choices of discount schemes in other different supply chain structures.
Practical implications
This paper help retailers and manufacturers to choose the best discount schemes.
Social implications
This paper suggests that a high discount scale is not always beneficial (detrimental) to retailers (the manufacture).
Originality/value
The authors build two discount schemes (the quantity and the market share) in a supply chain consisting of one manufacturer and two retailers, and the authors focus on the effects of different discount schemes on the competition between two retailers. By comparing the two discount schemes, the authors study which discount scheme is the better choice for the manufacturer when facing competing retailers.
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Senyu Xu, Huajun Tang and Yuxin Huang
The purpose of this research is to investigate how to introduce a financing scheme to tackle the manufacturer's capital constraint problem, discuss the effects of data-driven…
Abstract
Purpose
The purpose of this research is to investigate how to introduce a financing scheme to tackle the manufacturer's capital constraint problem, discuss the effects of data-driven marketing (DDM) quality, cross-channel-return (CCR) rate and financing interest rate on the members' pricing and delivery-lead-time decisions and optimal performances, and analyzes `how to achieve the coordination within a dual-channel supply chain (DSC) by contract coordination.
Design/methodology/approach
This work establishes a DSC model with DDM, and the offline retailer can provide internal financing to the capital-constrained online manufacturer. The demand under the price is determined based on DDM quality, customer channel preference and delivery lead time. Then, combined with the Stackelberg game, the optimal pricing and delivery-lead-time decisions are discussed under the inconsistent and consistent pricing strategies with decentralized and centralized systems. Furthermore, it designs a manufacturer-revenue sharing contract to coordinate the members under the two pricing strategies.
Findings
(1) The increase of DDM quality will reduce the delivery-lead-time under the inconsistent or consistent pricing strategy and will push the selling prices; (2) The growth of the CCR rate will raise selling prices and extend the delivery-lead-time under the decentralized decision; (3) Under price competition, the offline selling price is higher than the online selling price when customers prefer the offline channel and vice versa; (4) The retailer and the manufacturer can achieve a win-win situation through a manufacturer-revenue sharing contract.
Originality/value
This paper contributes to the studies related to DSC by investigating pricing and delivery-lead-time decisions based on DDM, CCR, internal financing and supply chain contract and proposes some managerial implications.
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Khadijeh Momeni, Chris Raddats and Miia Martinsuo
Digital servitization concerns how manufacturers utilize digital technologies to enhance their provision of services. Although digital servitization requires that manufacturers…
Abstract
Purpose
Digital servitization concerns how manufacturers utilize digital technologies to enhance their provision of services. Although digital servitization requires that manufacturers possess new capabilities, in contrast to strategic (or dynamic) capabilities, little is known about how they develop the required operational capabilities. The paper investigates the mechanisms for developing operational capabilities in digital servitization.
Design/methodology/approach
This paper presents an exploratory study based on 15 large manufacturers operating in Europe engaged in digital servitization.
Findings
Three operational capability development mechanisms are set out that manufacturers use to facilitate digital servitization: learning (developing capabilities in-house), building (bringing the requisite capabilities into the manufacturer), and acquiring (utilizing the capabilities of other actors). These mechanisms emphasize exploitation and exploration efforts within manufacturers and in collaborations with upstream and downstream partners. The findings demonstrate the need to combine these mechanisms for digital servitization according to combinations that match each manufacturer’s traditional servitization phase: (1) initial phase - building and acquiring, (2) middle phase - learning, building and acquiring, and (3) advanced phase - learning and building.
Originality/value
This study reveals three operational capability development mechanisms, highlighting the parallel use of these mechanisms for digital servitization. It provides a holistic understanding of operational capability development mechanisms used by manufacturers by combining three theoretical perspectives (organizational learning, absorptive capacity, and network perspectives). The paper demonstrates that digital servitization requires the significant application of building and acquiring mechanisms to develop the requisite operational capabilities.
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Rubel Amin, Bijay Prasad Kushwaha and Md Helal Miah
This paper examines the process optimization method of the online sales model of information product demand concerning the spillover effect. It illustrates the spillover effect…
Abstract
Purpose
This paper examines the process optimization method of the online sales model of information product demand concerning the spillover effect. It illustrates the spillover effect (SE) of online product demand compared with traditional market demand. Also, optimized the SE for the ethical and ordinary consumer.
Design/methodology/approach
This article primarily focused on two types of models for online marketing: one is wholesales, and another is the agency. Firstly, the wholesale and agency models without SE and the wholesale and agency models with SE are constructed, respectively, to realize the SE in different sales models. Secondly, online channel participants' optimal price, demand and profit under variant conditions are compared and analyzed. Finally, efficient supply chain theory is optimized for the decision-making of online marketing consumers using an equation-based comparative analysis method.
Findings
The study found that when SEs are not considered, stronger piracy regulation makes online channel participants more beneficial. When the positive SE is strong, it is detrimental to manufacturers. When SEs are not considered, online channel participants only reach Pareto in agency mode. Pareto optimality can be achieved in wholesale and agency modes when SEs are considered.
Originality/value
The research has practical implications for an effective supply chain model for online marketing. This is the first algorithm-based comparative study concerning theoretical spillover effect analysis in supply chain management.
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Lihua Chen, Liying Wang and Yingjie Lan
In this paper, the main focus is on supply and demand auction systems with resource pooling in modern supply chain from a theoretical modeling perspective. The supply and demand…
Abstract
Purpose
In this paper, the main focus is on supply and demand auction systems with resource pooling in modern supply chain from a theoretical modeling perspective. The supply and demand auction systems in modern supply chains among manufacturers and suppliers serve as information sharing mechanisms. The purpose of this paper is to match the supply and demand such that a modern supply chain can achieve incentive compatibility and economic efficiency. The authors design such a supply and demand auction system that can integrate resources to efficiently match the supply and demand.
Design/methodology/approach
The authors propose three theoretic models of modern supply chain auctions with resource pooling according to the Vickrey auction principle. They are supply auction model with demand resource pooling, demand auction model with supply resource pooling, and double auction model with demand and supply resource pooling. For the proposed auction models, the authors present three corresponding algorithms to allocate resources in the auction process by linear programming, and study the incentive compatibility and define the Walrasian equilibriums for the proposed auction models. The authors show that the solutions of the proposed algorithms are Walrasian equilibriums.
Findings
By introducing the auction mechanism, the authors aim to realize the following three functions. First is price mining: auction is an open mechanism with multiple participants. Everyone has his own utility and purchasing ability. So, the final price reflects the market value of the auction. Second is dynamic modern supply chain construction: through auction, firm can find appropriate partner efficiently. Third is resources integration: in business practices, especially in modern supply chain auctions, auctioneers can integrate resources and ally buyers or sellers to gain more efficiency in auctions.
Originality/value
In the paper, the authors propose three theoretic models and corresponding algorithms of modern supply chain auctions with resource pooling according using the Vickrey auction principle, which achieves three functions: price mining, dynamic modern supply chain construction and resources integrating. Besides, these proposed models are much closer to practical settings and may have potential applications in modern supply chain management.
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