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Article
Publication date: 27 July 2020

Araceli Rojo-Gallego-Burin, Francisco Javier Llorens-Montes, Maria N. Perez-Arostegui and Mark Stevenson

To analyze the effect of an ambidextrous supply chain strategy (ASCS) – i.e. the combination of exploration and exploitation practices – on each of the four dimensions of supply…

Abstract

Purpose

To analyze the effect of an ambidextrous supply chain strategy (ASCS) – i.e. the combination of exploration and exploitation practices – on each of the four dimensions of supply chain flexibility (SCF): information system, operating system, sourcing and distribution flexibility. Further, to evaluate the influence of implementing the ISO 9001 standard on the relationship between ASCS and SCF, and whether this certification directly affects the level of SCF. We ground our model in Resource Orchestration theory.

Design/methodology/approach

To perform this study, the authors used data collected from a sample of 145 non-ISO-certified firms and 157 ISO-certified firms.

Findings

ASCS does not affect all four dimensions of SCF in the same way. Rather, its effect is contingent on the presence of the ISO 9001 certification. An ASCS is shown to have a positive effect on information system flexibility irrespective of the presence of ISO 9001 certification whereas for the other three dimensions of SCF, the effect of ASCS is dependent on ISO 9001 implementation. Meanwhile, ISO 9001 implementation itself does not affect the level of SCF.

Practical implications

Managers can use the findings to configure their supply chain strategy based on the specific dimension(s) of SCF they seek to develop by implementing ASCS. Further, the results inform managers about the incentives for implementing ISO 9001.

Originality/value

Although prior studies have shown that an ambidextrous strategy enables firms and organizational units to adapt to the environment, there have been few prior studies on ambidexterity in a supply chain context. Further, although the extant literature has suggested that the ISO 9001 may facilitate ambidexterity, this link has remained largely theoretical. In fact, there is very little prior evidence on how the practice of ISO 9001 affects the supply chain.

Details

Industrial Management & Data Systems, vol. 120 no. 9
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 20 July 2015

Atul Kumar Tiwari, Anunay Tiwari and Cherian Samuel

Changes are inevitable in risky and uncertain business environments of today’s volatile supply chains. The concept of flexibility originates from this need to mitigate the…

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Abstract

Purpose

Changes are inevitable in risky and uncertain business environments of today’s volatile supply chains. The concept of flexibility originates from this need to mitigate the ill-effects of risks and uncertainty in supply chains. In this paper, an attempt is made to present an exhaustive review on supply chain flexibility (SCF) and its implementation to gain strategic advantages.

Design/methodology/approach

A citation analysis method is employed in this paper to discuss, analyse and apprehend the conceptual, empirical, analytical and simulation studies done in this field. In this paper, about 110 papers on flexibility from many reputed journals are examined to study and assimilate various aspects of flexibility.

Findings

SCF embraces a unified process-based view including the core processes such as procurement, sourcing, distribution and logistics and mitigates uncertainty or risks involved. The review helps to assimilate the key knowledge about relevant practices in SCF and helps to draw implementing strategies while offering managerial insight on the subject.

Research limitations/implications

Citation and co-citation analysis is done to review the SCF literature. Efforts are made to investigate relevant papers from various journals regarding its ability to mitigate risk or aid in making strategic decision. The study, however, is limited to certain industries in the papers as per chosen approach here. The strategies described in here may further be verified by the researchers and practitioners pertaining to their study or industries focused.

Practical implications

It provides managerial insight for practitioners on how to use flexibility within the firm and across supply chain while considering various trade-offs.

Originality/value

This paper is unique as a review paper, as it encompasses various kinds of studies done on SCF from conceptual models to mathematical models. Further, it briefs with the current practices in industries/SC towards being flexible. It talks of various trade-offs in pursuit of flexibility and concludes while suggesting numerous research gaps and opening new dimensions for SCF research. It offers many managerial and academic implications.

Article
Publication date: 14 March 2024

Zulqurnain Ali

Financing remains a serious concern for firms and is considered the main hurdle in the growth and development of small and medium enterprises (SMEs). Recently, a new stream of

Abstract

Purpose

Financing remains a serious concern for firms and is considered the main hurdle in the growth and development of small and medium enterprises (SMEs). Recently, a new stream of financing (SCF; supply chain finance) has emerged to meet the financing issues of SMEs. Therefore, measuring SCF is essential to support SMEs’ operations. This study aims to develop and validate the SCF scale based on extant literature.

Design/methodology/approach

Using a mixed-method approach, this study recruited different samples of SME entrepreneurs to confirm the internal consistency, assess construct validity and check the item structure of the SCF scale in AMOS.

Findings

The outcomes of confirmatory factor analysis demonstrated the six factors of SCF (inventory financing, working capital optimization, reverse financing, fixed assets financing, logistics financing and order cycle financing) spread over 21 items. An interitem solid structure of the SCF scale offers invaluable contributions to the supply chain management literature.

Practical implications

This research supports SME entrepreneurs to obtain secure financing at the best cost, mitigating the risk of default, supporting the buyers’ payment terms, providing early payment to suppliers and strengthening the firm’s value chains. SMEs can obtain financing per their requirements to support their operational business processes. Moreover, SMEs can plan, manage and control finance-related transactional activities by correctly identifying financing solutions.

Originality/value

The present study contributes to SCM literature by developing and validating the SCF scale. To the best of the author’s knowledge, this is the first study that redefined SCF and identified its six dimensions.

Details

Journal of Business & Industrial Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 10 August 2023

Beatriz Minguela-Rata, Juan Manuel Maqueira, Araceli Rojo and José Moyano-Fuentes

This study aims to examine the full mediating role of supply chain flexibility (SCF) between lean production (LP) and business performance (BP) found in the previous literature…

Abstract

Purpose

This study aims to examine the full mediating role of supply chain flexibility (SCF) between lean production (LP) and business performance (BP) found in the previous literature. This effect negates the direct LP-BP effect (the so-called “total eclipse effect”). The authors analyze the individual contributions that the different SCF dimensions (sourcing flexibility; operating system flexibility, distribution flexibility and information system [IS] flexibility) make to the “total eclipse effect” between LP and BP produced by SCF. The relational resources-based view and resource orchestration theory are used to support the theoretical framework.

Design/methodology/approach

Covariance-based structural equations modeling (CB-SEM) is used to test the SCF LP-BP total eclipse hypothesis and four additional mediation hypotheses, one for each of the SCF dimensions. Data obtained via a questionnaire given to 260 companies are analyzed with CB-SEM, and SPSS Process is used to evaluate the mediation effect.

Findings

Research results indicate that only one of the dimensions (operating system flexibility) has a full mediation effect between LP and BP and is, therefore, the main contributor to the eclipse effect. Two other dimensions (sourcing flexibility and distribution flexibility) have partial mediation effects, so they also contribute to developing the eclipse effect, although to a lesser extent. Finally, IS flexibility is neither a full nor a partial mediation factor and does not contribute to the eclipse effect.

Originality/value

These findings have some important implications. For academia, they generate new knowledge of the role that each of the SCF dimensions or components plays in the LP-BP relationship. For company management, the findings offer supply chain managers specific information on the individual effects that the different types of SCF flexibility have between LP and BP. This will allow companies to target their efforts to develop certain types of flexibility in LP contexts depending on the outcomes that senior managers want to achieve with their SCs.

Details

Supply Chain Management: An International Journal, vol. 29 no. 1
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 25 January 2021

Jean-Noël Beka Be Nguema, Gongbing Bi, Zulqurnain Ali, Aqsa Mehreen, Christophe Rukundo and Yangqian Ke

Several manufacturing firms are facing various internal concerns such as financial and operational issues, which strongly pushed the firms to search for solutions (e.g. supply…

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Abstract

Purpose

Several manufacturing firms are facing various internal concerns such as financial and operational issues, which strongly pushed the firms to search for solutions (e.g. supply chain finance; SCF) to sustain their supply chain operations and supply chain effectiveness (SCE). In this view, this study attempts to explore four key factors influencing the adoption of SCF, which, in turn, impacts SCE in Chinese manufacturing firms. Therefore, this study aims to propose that how information sharing, external collaboration, digitization and financial institutions enable manufacturing firms’ to adopt SCF that subsequently enhances SCE. Moreover, how supply chain risk (SCR) mediates the association between SCF adoption and SCE.

Design/methodology/approach

The current research recruited 177 Chinese manufacturing firms administrating a questionnaire to supply chain managers and tested the proposed conceptual model and associations using structural equation modeling.

Findings

The results reveal that all four factors are positively related to the adoption of SCF, which consequently improves the SCE of manufacturing firms. Moreover, the findings show that the effect of SCF significantly and positively impact SCE. Further, the result also confirmed that SCF significantly mitigates SCR, thereby leads to improves SCE.

Research limitations/implications

The current study mainly focuses on Chinese manufacturing firms, which may generate low generalizability. In addition, this study was based on a cross-sectional research design which may generate common method bias. Therefore, more comparative studies are needed between developed and developing countries to enhance the generalizability of the study findings.

Practical implications

This study provides significant new insights about how marketing managers and practitioners can adopt SCF in manufacturing firms via information sharing, external collaboration, digitization and financial institutions to mitigate firm risk and enhance SCE.

Originality/value

The approach used in this research differs from many of the previous studies and investigates the factors of adoption of SCF and their impact on SCE in the manufacturing firm sector within the context of the Chinese economy. Therefore, this research is an important guide for scholars, managers and executives of marketing, while providing them with a new model, significant insights which are significant in their organizations.

Details

Journal of Business & Industrial Marketing, vol. 36 no. 5
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 11 June 2019

Aswin Alora and Mukesh K. Barua

Companies all over the world have recently started to adopt supply chain finance (SCF) solutions in their supply chains to reduce the payment defaults and simplify the bill…

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Abstract

Purpose

Companies all over the world have recently started to adopt supply chain finance (SCF) solutions in their supply chains to reduce the payment defaults and simplify the bill settlement process. The purpose of this paper is to identify and prioritize the barriers to adopting SCF in micro, small and medium enterprises.

Design/methodology/approach

It employs a three-phase methodology to identify and prioritize the essential barriers to the implementation of SCF. An extensive survey has been carried out in 101 Indian MSMEs in India which identified 37 barriers under six heads in the first phase. Experts’ interview using the Delphi technique has been carried out in the second phase to finalize the barriers. The analytic hierarchy process methodology, with sensitivity analysis for validation, is used in the final stage to prioritize and rank the barriers.

Findings

Results show that financial and information technology barriers are prominent in SCF adoption followed by financial challenges. Among specific barriers, the disclosure of sensitive company information to competitor barrier acts as an essential barrier followed by poor technological capability of MSMEs.

Research limitations/implications

The study is limited to SCF adoption of MSMEs in a developing nation. Extensive research is required in order to derive a global trend.

Practical implications

The current research contributes to the stakeholder theory and transaction cost economics. Observations made in the current research can encourage organizations to incorporate stakeholders’ concerns into the adoption of SCF solutions. The study provides a more in-depth view of such challenges and a benchmark, which will help companies to adopt SCF solutions more effortlessly. Moreover, policy makers across the world can explore these serious issues and amend or introduce new policies to facilitate companies’ implementation of supply chain financial solutions.

Originality/value

To the best of the authors’ knowledge, this is the first study which identified and prioritized SCF adoption barriers of MSMEs in a developing nation. This study is also novel in adopting a hybrid analytical hierarchy process-sensitivity analysis for ranking the SCF barriers in an MSME context. SCF studies often emphasize only on the reverse factoring aspect of SCF. The current study considers many innovative aspects of SCF, such as pre-shipment financing, dynamic discounting, inventory financing, collaborative logistics, etc.

Details

Benchmarking: An International Journal, vol. 26 no. 7
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 19 October 2015

Xiande Zhao, KwanHo Yeung, Qiuping Huang and Xiao Song

The purpose of this paper is to help the financial institutions improve the predictability of business failure of supply chain finance (SCF) clients with the use of external big…

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Abstract

Purpose

The purpose of this paper is to help the financial institutions improve the predictability of business failure of supply chain finance (SCF) clients with the use of external big data set.

Design/methodology/approach

A prediction model for the business failure of SCF clients was built upon different theoretical perspectives. Logistic regression method was deployed to test the model.

Findings

The authors develop a model that illustrates several key determinants to predict the probability of business failure of SCF clients based on several theoretical perspectives. The results show that taxable sales revenue, frequency of making value added tax (VAT) payment, number of counterparty for VAT invoice issuance, frequency of VAT invoice issuance and firm age are negatively correlated with business failure of SCF clients while the VAT paid and industry clockspeed are positively correlated with their business failure.

Practical implications

This paper shows how financial institutions can effectively leverage the external information sources through “unconventional” predictor variables in order to reduce the credit risks associated with business failure of SCF clients.

Originality/value

This paper is one of the first to focus on the potential use of financial big data set from external sources to improve of predictability of financial institutions on the business failure of SCF clients. In addition, this paper is a pivotal study on the financial client risk assessment based on taxpaying behaviors, tax amount, firm and industry characteristics.

Article
Publication date: 8 August 2016

Federico Caniato, Luca Mattia Gelsomino, Alessandro Perego and Stefano Ronchi

Recently, in response to the credit crunch and the increased costs of financing, new solutions for supporting the financial management of supply chains, known as supply chain…

13736

Abstract

Purpose

Recently, in response to the credit crunch and the increased costs of financing, new solutions for supporting the financial management of supply chains, known as supply chain finance (SCF), have been developed. They exploit the strengths of supply chain links to optimise working capital. The purpose of this paper is to provide a reference framework that links together the objectives leading to the adoption of SCF solutions and several moderating variables.

Design/methodology/approach

This paper adopts a multiple case study methodology, analysing 14 cases of the application of SCF solutions among Italian companies.

Findings

The main findings are the identification of the different objectives leading to the adoption of SCF; the analysis of the impact of moderating variables (the level of inter- and intra-firm collaboration, the level of the trade process digitalisation and the bargaining power and financial strength of the leading firm) on SCF adoption; and the formulation of a reference framework supporting the effective adoption of SCF solutions.

Research limitations/implications

This contribution is exploratory in nature; theory-testing contributions should be the focus of further research. Also, the sample is limited to Italian companies. Finally, the service provider’s point of view has been marginally taken into consideration in this study.

Originality/value

The article addresses the need for more empirical research on SCF. It provides a reference framework focused on the objectives and moderating variables leading to effective SCF adoption, providing a theory-building contribution on the general topic of SCF and on the specific topic of the adoption process of different SCF solutions.

Details

Supply Chain Management: An International Journal, vol. 21 no. 5
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 13 February 2024

Rongrong Shi, Qiaoyi Yin, Yang Yuan, Fujun Lai and Xin (Robert) Luo

Based on signaling theory, this paper aims to explore the impact of supply chain transparency (SCT) on firms' bank loan (BL) and supply chain financing (SCF) in the context of

Abstract

Purpose

Based on signaling theory, this paper aims to explore the impact of supply chain transparency (SCT) on firms' bank loan (BL) and supply chain financing (SCF) in the context of voluntary disclosure of supplier and customer lists.

Design/methodology/approach

Based on panel data collected from Chinese-listed firms between 2012 and 2021, fixed-effect models and a series of robustness checks are used to test the predictions.

Findings

First, improving SCT by disclosing major suppliers and customers promotes BL but inhibits SCF. Specifically, customer transparency (CT) is more influential in SCF than supplier transparency (ST). Second, supplier concentration (SC) weakens SCT’s positive impact on BL while reducing its negative impact on SCF. Third, customer concentration (CC) strengthens the positive impact of SCT on BL but intensifies its negative impact on SCF. Last, these findings are basically more pronounced in highly competitive industries.

Originality/value

This study contributes to the SCT literature by investigating the under-explored practice of supply chain list disclosure and revealing its dual impact on firms' access to financing offerings (i.e. BL and SCF) based on signaling theory. Additionally, it expands the understanding of the boundary conditions affecting the relationship between SCT and firm financing, focusing on supply chain concentration. Moreover, it advances signaling theory by exploring how financing providers interpret the SCT signal and enriches the understanding of BL and SCF antecedents from a supply chain perspective.

Details

International Journal of Operations & Production Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 30 August 2023

Memoona Sajid and Raheel Safdar

This study empirically tests the relationship between supply chain finance (SCF) and firm performance. Moreover, this study also investigates the potential role of industry…

Abstract

Purpose

This study empirically tests the relationship between supply chain finance (SCF) and firm performance. Moreover, this study also investigates the potential role of industry competition in the proposed relationship between SCF and firm performance.

Design/methodology/approach

A conceptual framework is developed and tested using secondary data collected from 122 non-financial listed firms on the Pakistan Stock Exchange (PSX) for the period of ten years (2012–2021). Ordinary least squares (OLS) regression analysis is performed in STATA to validate the proposed relationships.

Findings

The results highlight that SCF has a positive impact on firm performance. Moreover, industry competition positively moderates the relationship between SCF and firm performance.

Practical implications

This study would help firms in assessing the value of operational financing to their financially constrained suppliers/customers by adopting supply chain finance practices. Furthermore, this study will help understand the role of the competitive environment in supply chain finance decision-making.

Originality/value

The findings will help core firms better understand how implementing SCF benefits firm performance under high product competition, especially in emerging markets.

Details

Business Process Management Journal, vol. 29 no. 7
Type: Research Article
ISSN: 1463-7154

Keywords

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