Search results

The purpose of this paper is to investigate the behavioral tendencies of supply managers when they are faced with uncertainty in making multi-tier sourcing decisions.

This paper uses the literature on multi-tier supply chains and behavioral decision making to develop a theoretical framework for examining factors influencing a supply manager’s decision to retain control over sourcing in the multi-tier context. An experimental vignette methodology is used to gather data from 259 supply managers.

Results suggest that supply managers choose to exert less multi-tier control when they have high levels of interpersonal trust in the tier-1 supplier’s sales representative. This effect is accentuated by a high level of familiarity with potential lower-tier suppliers. Under high levels of familiarity with potential lower-tier suppliers, supply managers will exert greater levels of multi-tier sourcing control as the behavioral uncertainty of the tier-1 supplier increases.

Buying firms can enhance their understanding of supply managers’ multi-tier sourcing decision making and the potential biases associated with it. Suggestions for a more effective use of multi-tier sourcing are provided in the Discussion section.

Multi-tier sourcing is an increasingly important area of research, and this paper is the first to examine individual supply managers’ behavioral decision making in the multi-tier context. This paper also contributes to the outsourcing literature by investigating behavioral factors influencing the outsourcing of sourcing activities.

Multiple stages of procurement for a product in a supply chain (SC) altogether form a “multi-Tier” supply network. The purpose of this paper is to develop and verify a systematic solution approach to ascertain the realistic cost advantage of a coordinated centralized sourcing strategy as compared to an isolated decentralized sourcing strategy for a multi-tier supply network under demand uncertainty.

The proposed systematic solution approach consists of seven steps to compare and contrast the cost advantage of a centralized coordinated sourcing strategy over a decentralized stage-wise sourcing strategy for a multi-tier supply network. A real-life automotive industry case analysis of two distinct products provides sufficient empirical evidence on the expected cost advantage of centralized coordinated sourcing strategy under demand uncertainty.

The case analysis affirms the practicability of the proposed seven-step solution approach to determine the realistic cost advantage of coordinated sourcing.

The scope of this research is restricted to a single product and two-tier supply network analysis. This research work also considers a restrictive assumption of negligible coordination cost.

The suitability of the proposed solution approach is verified using real-life case examples. This research provides theoretical insights and factual evidence to SC practitioners, so as to adopt a centralized sourcing strategy in a varied manufacturing environment.

There is no evidence of a systematic step-by-step solution approach to determine the cost advantage of a coordinated sourcing strategy over an isolated decentralized sourcing strategy for a multi-tier supply network under demand uncertainty.

Tragic incidents such as the Rana Plaza building collapse call into question the value and effectiveness of supplier codes of conduct (SCC) used in multi-tier supply chains. This paper aims to investigate the barriers to sub-supplier compliance and the drivers from the perspective of suppliers that adopt a double agency role by complying with buyer-imposed SCC while managing sub-supplier compliance on behalf of the buyer.

This research adopts a sequential, mixed-methods approach. The qualitative phase develops a conceptual model with the aid of the extant the literature and semi-structured interviews with 24 senior manufacturing professionals. The quantitative phase then uses a hierarchical regression analysis to test the conceptual model using survey data from 159 apparel suppliers based in India.

The findings reveal that sub-supplier compliance is positively impacted by effective buyer–supplier governance and by the focal supplier having a strategic partnership with the sub-supplier. Conversely, price pressure on sub-suppliers adversely impacts their compliance, while institutional pressure on them to comply is generally ineffective.

The context of the study is limited to the garment industry in India.

To improve SCC compliance rates, buyers and focal suppliers should actively develop strategic partnerships with selected upstream supply chain actors; should set a reasonable price across the supply chain; and, should include specific sub-supplier compliance requirements within the supply contract. The findings also suggest the need to develop social sustainability protocols that are cognisant of regional contexts.

The absence of prior research on SCC implementation by sub-suppliers, this study represents a pioneering empirical study into such multi-tier sourcing arrangements. It provides strong support that sub-supplier governance arrangements differ from those typically found in the focal supplier layer. It also provides empirical evidence of the critical factors that encourage sub-supplier compliance within the apparel industry of a regionally developing economy.

This paper attempts to address three key objectives. The primary aim is to enhance sourcing strategy for a centralized and coordinated multitier multiple suppliers networks with uncertain demand and supplier failure risks. The second objective is to enumerate all possible practical supplier(s) failure scenarios and quantify expected loss of demand cost. Finally, the work illustrates statistical experimentation to identify “influential” variables that can significantly impact the expected supply network and loss costs.

A seven-step solution framework is proposed to derive an optimal sourcing strategy for the specific network configuration with varied supplier failure scenarios. Five distinct models are formulated to address all possible scenarios of supplier failure events. Mixed-integer nonlinear programming technique is used to derive expected supply network cost and loss cost. The solution framework is verified using a real-life case.

A cross-case analysis indicates that an increase in suppliers' failure risk (SFR) probabilities or customer demand rate increases the expected loss of demand costs for a multitier supply network. Besides, an increase in unit component prices increases the expected supply network cost.

A two-tier automotive supply network for a single product is considered for all case studies.

The enhanced strategy can facilitate practitioners enumerate different supply network failure scenarios and implement the best solution.

There is no evidence of earlier research to derive optimal sourcing strategy for a centralized, coordinated multitier multiple supplier's network, considering demand uncertainties and SFR.

The purpose of this paper is to explore the challenges facing companies that operate within complex supply networks and the strategies they use to manage such complex supply networks.

The paper uses mixed methods by combining in-depth case studies with an executive forum with those of senior industry stakeholders. The two in-depth supply network case studies were carried out through multiple interviews with focal (or ‘developer’) firms that supply energy through offshore wind power and key suppliers such as wind turbine manufacturers.

The findings show the challenges the offshore wind power industry faces because of complex supply networks, including attempts by several actors to exert their power and control. Despite the networks facing similar complexities and challenges, two distinctly different strategies for orchestrating and governing supply networks are uncovered: one strategy resembles an interventionist strategy, while the other is based on delegation.

Based on the findings, the authors identify and develop a classification of complex supply network divided into intervention and delegation strategies, thereby adding to existing research on ways to manage complex supply networks.

The authors identify strategies for focal firms for managing in complex supply networks, based on control and intervention or coordination and delegation.

Existing research on supply network strategies has largely focused on non-complex contexts. This paper draws from complex adaptive systems and organisational behaviour perspectives to contribute original insights into supply network strategies in complex supply networks.

The purpose of this paper is to establish a conceptual model adopted from a strategy-structure-performance paradigm for investigating the fit between the supply chain integration and halal food supply chain integrity and the impact of halal food supply chain integrity on firms’ performance in a Malaysian context.

This study comprises a sample of a halal manufacturing firm in Malaysia. A cross-sectional research design was used in this study. Data were gathered based on mailed and personally administered questionnaires. SmartPLS was used to analyse the 254 valid responses.

The research findings indicate that internal integration and strategy have positive impact on halal food supply chain integrity. The study results confirmed that customer integration and supplier integration contributes to halal food supply chain integrity. It also finds that halal food supply chain integrity has a significantly positive impact.

The results suggested that a strategic collaboration with the supplier pivoted around the quality and integrity of the raw materials should be undertaken.

The results from this study supports that the managers should adopt all halal food supply chain integrity components to achieve a superior performance. Even though some of the components did not yield significant results in terms of their relationships with firms’ performance, these dimensions were generally related to the standardised industry requirements, such as certifications.

The findings are original and unique and are based on established theories from the literature on supply chain management practices. The research findings are useful to academics and policymakers interested in fostering a halal supply chain in Malaysia.

The purpose of this paper is to explore how multinational corporations (MNCs) orchestrate internal and external resources to help their multi-tier supply chains learn sustainability-related knowledge.

An exploratory multiple case study approach was adopted and three MNCs’ sustainable initiatives in China were examined. The data were primarily collected through 43 semi-structured interviews with managers of focal companies and their multi-tier suppliers.

The authors found that in order to facilitate their supply chains to learn sustainability, MNCs tend to orchestrate in breadth by internally setting up new functional departments and externally working with third parties, and orchestrate in depth working directly with their extreme upstream suppliers adopting varied governance mechanisms on lower-tier suppliers along the project lifecycle. The resource orchestration in breadth and depth and along the project lifecycle results in changes of supply chain structure.

The proposed conceptual model provides an overall framework for companies to design and implement their multi-tier sustainable initiatives. Companies could learn from the suggested learning stages and the best practices of case companies.

The authors extend and enrich resource orchestration perspective (ROP), which is internally focused, to a supply chain level, and answer a theoretical question of how MNCs orchestrate their internal and external resources to help their supply chains to learn sustainability. The extension of ROP refutes the resource dependence theory, which adopts a passive approach of relying on external suppliers and proposes that MNCs should proactively work with internal and external stakeholders to learn sustainability.

This study aims to investigate the under-researched role of the sub-supplier’s direct environment in achieving compliance with multi-tier sustainable supply chain management (MT-SSCM) objectives.

Building on conceptual research, this study aims to generalize the characteristics of multi-tier supply chains in light of institutional theory and supply chain (SC) uncertainty to enhance the understanding of their complex interrelationship.

A three-dimensional framework is built around the supply and demand uncertainty as well as the pressures for sustainability exerted by the supplier’s direct environment to propose ideal constellations for the application of MT-SSCM. Moreover, research directions and implications for the alteration of suboptimal constellations are developed.

Incorporating the supplier’s environment in the choice of MT-SSCM practices couples the sustainability priorities of the focal firm and the supplier. This enables a more complete picture of the sustainability objectives and sustainable development aims of the SC partners.

On the basis of institutional theory, the study extends current MT-SSCM concepts by including the supplier’s direct environment in the choice of ideal management practices in a particular SC setup. It provides a definition of a multi-tier SC as an institutional field and a number of research implications regarding MT-SSCM as well as generic SSCM. Moreover, the proposed framework helps SC managers to understand the complex interplay of the SC partners’ sustainability aims and provides implications for choosing the most suitable MT-SSCM practices.

Multi-tier supply chain risk management (MSCRM) is an evolving and dynamic field, as any defaults or glitches in supply chains can potentially harm the efficiency and competitiveness of the entire supply chain. This study aims to investigate barriers to MSCRM in the automotive and civil aircraft industries.

This study adopts an inductive case study research design. The case analysis includes two parts. First, the within-case analysis develops case profiles and identifies critical categories. Second, the cross-case analysis compares MSCRM patterns across the cases.

This study argues that narrow information sharing and communication covering only the immediate supply chain partners obstruct the efficiency of MSCRM. Similarly, high dependency on strategic alliances with suppliers hinders efficient MSCRM. Additionally, relying on information and communication technologies (ICT) increases companies' exposure to risks and poses another barrier to efficient MSCRM.

Further research should be pursued to expand generalizability and test the validity of the findings using other forms of data collection and methodologies, such as large-scale surveys, experiments or secondary data across different sectors and typical supply networks.

This study provides empirical evidence on the obstacles faced by companies during the process of MSCRM. These findings can guide practitioners in developing initiatives to overcome these challenges.

This study is among the first to investigate the barriers to MSCRM in the automotive and civil aircraft industries using in-depth case studies across three tiers of the supply chain.