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Article
Publication date: 14 August 2018

Yong Lin, Jing Luo, Petros Ieromonachou, Ke Rong and Lin Huang

The purpose of this paper is to provide implementation insights and implications regarding the strategic orientations of servitization by testing its impacts on firm…

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Abstract

Purpose

The purpose of this paper is to provide implementation insights and implications regarding the strategic orientations of servitization by testing its impacts on firm performance, including financial performance and customer service performance.

Design/methodology/approach

Empirical research is conducted using an online survey disseminated to manufacturing firms in Southeast China. This research develops and verifies a strategic fit framework to understand the relationship between the strategic orientation of servitization and service innovation (SI), and its resulting impacts on firm performance.

Findings

The results show that service orientation (SO) has direct positive impacts on firm performance in the manufacturing sector. Customer orientation (CO) and learning orientation (LO) have no direct impact on firm performance, although they have indirect impacts on it via the mediating role of SI capability. Moreover, SO has a similar indirect impact on firm performance via SI capability.

Research limitations/implications

The survey focuses only on China; future studies should verify whether different cultural backgrounds impact the research results.

Practical implications

The results suggest that firms should build up three strategic orientations (SO, CO and LO) for implementing servitization to facilitate SI capability and, thus, to improve firm performance.

Originality/value

This research contributes to enhancing the theory of servitization by developing a strategic fit model of servitization and revealing the impact mechanism of servitization in the manufacturing sector.

Details

Industrial Management & Data Systems, vol. 119 no. 2
Type: Research Article
ISSN: 0263-5577

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Article
Publication date: 10 April 2017

Qi Zheng, Petros Ieromonachou, Tijun Fan and Li Zhou

Fresh product loss rates in supply chain operations are particularly high due to the nature of perishable products. The purpose of this paper is to maximize profit through…

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1443

Abstract

Purpose

Fresh product loss rates in supply chain operations are particularly high due to the nature of perishable products. The purpose of this paper is to maximize profit through the contract between retailer and supplier. The optimized prices for the retailer and the supplier, taking the fresh-keeping effort into consideration, are derived.

Design/methodology/approach

To address this issue, the authors consider a two-echelon supply chain consisting of a retailer and a supplier (i.e. wholesaler) for two scenarios: centralized and decentralized decision making. The authors start from investigating the optimal decision in the centralized supply chain and then comparing the results with those of the decentralized decision. Meanwhile, a fresh-keeping cost-sharing contract and a fresh-keeping cost- and revenue-sharing contract are designed. Numerical examples are provided, and managerial insights are discussed at the end.

Findings

The results show that the centralized decision is more profitable than the decentralized decision; a fresh product supply chain (FPSC) can only be coordinated through a fresh-keeping cost- and revenue-sharing contract; the optimal retail price, wholesale price and fresh-keeping effort can all be achieved; and the profit of a FPSC is positively related to consumers’ sensitivity to freshness and negatively correlated with their sensitivity to price.

Research limitations/implications

This research is based on the assumption that demand is relatively stable. It has not addressed when demand is stochastic.

Practical implications

The findings would be useful for managers in fresh food sector in terms of how to deal with suppliers in order to maximize total profit while also provide freshest food to the customers.

Originality/value

Few studies have considered fresh-keeping effort as a decision variable in the modelling of supply chain. In this paper, a mathematical model for the fresh-keeping effort and for price decisions in a supply chain is developed. In particular, fresh-keeping cost-sharing contract and revenue-sharing contract are examined simultaneously in the study of the supply chain coordination problem.

Details

Industrial Management & Data Systems, vol. 117 no. 3
Type: Research Article
ISSN: 0263-5577

Keywords

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Article
Publication date: 5 February 2018

Xiaoyu Gu, Petros Ieromonachou, Li Zhou and Ming-Lang Tseng

Batteries installed on electric vehicles (EVs) should normally be removed when their capacity falls to 70-80 per cent, but they are still usable for other purposes, such…

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1226

Abstract

Purpose

Batteries installed on electric vehicles (EVs) should normally be removed when their capacity falls to 70-80 per cent, but they are still usable for other purposes, such as energy storage. This paper studies an EV battery closed-loop supply chain (CLSC) consisting of a battery manufacturer and a remanufacturer. The manufacturer produces new batteries by using natural resources, while the remanufacturer collects returned batteries and makes decisions based on the return quality, that is, to reuse or recycle. The purpose of this paper is to maximise the individual profits through optimising the amount of manufacturing and remanufacturing, respectively, and optimising the purchase price of returned batteries.

Design/methodology/approach

Based on the Nash equilibrium, this paper develops a three-period model in the CLSC. In period 1, batteries are made from raw materials; in period 2, returned batteries from period 1 are sorted into low quality and high quality. Some high-quality returns can be reused for other purposes while those non-reusable returns are recycled into materials. In period 3, all the returns are recycled into materials. The analytical results are derived.

Findings

The result of the analyses suggest that first, among the variables that affect the (re-)manufacturing decision, the purchase price for returned batteries plays a critical role. In particular, the price of low-quality returns has more influence than the price of high quality returns. Second, the higher purchase price for re-usable returns does not necessarily lead to a higher return rate of reusable returns. Third, the manufacturer’s profit is normally higher than the remanufacturer’s. This suggests the need to design incentives to promote the remanufacturing sector. And finaly, although it is appreciated that maximising the utilisation of batteries over the life-cycle would benefit the environment, the economic benefit needs further investigation.

Originality/value

Although the CLSC has been widely studied, studies on the EV battery CLSC are scarce. The EV battery CLSC is particularly challenging in terms of the reusability of returns because used EV batteries cannot be reused for the original purpose, which complicates CLSC operations. This paper explores the interrelationship between manufacturer and remanufacturer, explaining the reasons why recycling is still underdeveloped, and suggests the possibility of enhancing remanufacturing profitability.

Details

Industrial Management & Data Systems, vol. 118 no. 1
Type: Research Article
ISSN: 0263-5577

Keywords

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