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1 – 10 of 381In light of the recently experienced systemic shocks (the COVID-19 pandemic and the war in Ukraine), we investigate supply chain robustness. We aim to understand the potential…
Abstract
Purpose
In light of the recently experienced systemic shocks (the COVID-19 pandemic and the war in Ukraine), we investigate supply chain robustness. We aim to understand the potential consequences of uncertain events or adversary’s action on critical supplies in the Alliance.
Design/methodology/approach
We leverage a parsimonious supply chain model and investigate the relationship between upstream supplier concentration/diversification and the supply chain’s robustness (survival probability) in the presence of uncertain systemic shocks. In several scenarios of shock events, we simulate alternative input sourcing strategies in the presence of uncertainty.
Findings
A firm-level cost-focused optimisation may lead all upstream suppliers to concentrate in one location, which – when subsequently hit by a shock – would result in a disruption of the entire supply chain. A chain-level forward-looking optimisation diversifies the upstream supplier location and sourcing decisions. As a result, the supply chain’s survival probability is maximised, and critical supplies will continue even under the most demanding circumstances.
Research limitations/implications
Our findings encourage political and military decision makers to enhance upstream supply chain robustness in critical and strategic sectors, such as the diversification of nitrocellulose supplies currently sourced almost exclusively from China by European gunpowder manufacturers.
Practical implications
Our findings have direct recommendations to supply chain downstream decision makers and to the government’s policy choices. Since global supply chain (GSC) disruptions in critical sectors may have catastrophic impacts on social welfare and the probability of shocks such as COVID-19 and Russia’s war may not be known even approximately, robust decision rules seem to be the appropriate tools for policymaking in critical and strategic sectors such as energy supplies, food and water, communication and defence. A robust supply chain is one in which the survival probability is maximised, which we show in a central planner strategy’s simulations.
Originality/value
The paper shows formally why a market-based global input sourcing strategy may be efficient from an individual firm’s perspective but may be suboptimal from a societal resilience perspective.
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Susanne Åberg and Poul Houman Andersen
This paper aims to explore the role of heuristics in the reassessment of relationship events and how it influences perceptions of commitment, fairness and relationship value. It…
Abstract
Purpose
This paper aims to explore the role of heuristics in the reassessment of relationship events and how it influences perceptions of commitment, fairness and relationship value. It answers the question of how heuristics interrelate with decision-makers’ evolving interpretations of commitment, fairness and relationship value in a specific buyer-supplier relationship.
Design/methodology/approach
This paper presents data from a longitudinal study of an evolving buyer–supplier relationship involving a multinational supplier of fast-moving consumer goods and a medium-sized and highly specialized supplier. It analyzes qualitative data about the use of heuristics in buyer–supplier relationships, and it is based on evidence collected from interviews, presentations, meetings and secondary data.
Findings
This paper shows that a buyer’s unexpected behavior can lead to a reassessment of commitment, fairness and relationship value. Heuristics can delay relationship reassessments, however. The case shows that heuristics have a preserving quality and that the effect of transformative events only slowly changes the perception of the value of the relationship. In this change process, the link between commitment, perceived fairness and heuristics is crucial.
Originality/value
This paper contributes to research on the relationship between buyer–supplier relationships and heuristics. In particular, the paper contributes to the understanding of how relational events in a buyer-supplier relationship change the commitment and perception of fairness, and how heuristics change accordingly. On a more overarching level, the study contributes to our understanding of business relationship dynamics.
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Shikha Kalesh, Nadine Kiratli-Schneider and Holger Schiele
This paper aims to explore factors influencing suppliers' acceptance, integration challenges, expected benefits and support from customers when implementing a customer-introduced…
Abstract
Purpose
This paper aims to explore factors influencing suppliers' acceptance, integration challenges, expected benefits and support from customers when implementing a customer-introduced digital supply chain system.
Design/methodology/approach
The study investigates the perspective of suppliers using a mixed methodology approach that combines qualitative interviews with a large-scale quantitative survey conducted among 220 internationally located suppliers of an automotive-industrial firm.
Findings
As a result, the authors identified 11 factors that drive suppliers' acceptance of customer-introduced digital supply chain systems. These factors have been ranked based on their importance. The top three important factors identified were the digital system being provided at no cost to the suppliers, the system's ability to save time and the system offering benefits to the suppliers.
Research limitations/implications
Further research can be conducted to validate the perspective of suppliers in other industries. Additionally, future studies can investigate the effectiveness of fulfilling these acceptance factors within an actual digital integration setup.
Practical implications
Companies can leverage these insights to accelerate their digital supply chain integration efforts. The insights on acceptance factors, challenges, benefits and support expected by suppliers can serve as a valuable guide for policy and decision makers within the industry.
Originality/value
To the best of the authors’ knowledge, this study is among the first to investigate the perspective of suppliers in the integration of a customer's digital supply chain. By including the supplier's perspective, this study makes a significant contribution to the academic literature about supply chain digitalisation.
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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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José Augusto Campos Garcia, Ala Arvidsson and Patrik Jonsson
In this paper, we investigate the coevolution of the supply network and procurement strategies in the context of semiconductors and electronics for the automotive industry over…
Abstract
Purpose
In this paper, we investigate the coevolution of the supply network and procurement strategies in the context of semiconductors and electronics for the automotive industry over 3 decades. We aim to explain how procurement strategy interrelates with changes in supply network structure and what the implications of a hub-centric structure network structure are for procurement in supply.
Design/methodology/approach
We collected in-depth primary and secondary data that stretched back to 1996 from a leading automotive European original equipment manufacturer (OEM) and its network. Using social network analysis (SNA), we identified OEMs’ procurement focus and mapped the evolution of the supply network, the links in the network, and the environmental forces impacting the strategies and the network.
Findings
Our findings describe the supply network for semiconductor and electronic components to the automotive industry. The findings suggest that a focus on cost can lead to a Tier 1-centric network structure with many tiers that can fail to assure supply or capture innovation when the external environment is marked by high uncertainty. In such situations, increasing complexity by creating more links in the network can improve transparency and contribute to supply assurance and innovation.
Practical implications
The findings indicate that managers should consider the role of the supply network in selecting their strategy to attain objectives of cost, innovation, and supply assurance.
Originality/value
This paper presents empirical-based insights into the automotive semiconductor and electronic component supply chain (SC), the unexpected implications of hub-centric supply networks, and the use of SNA in the SC in context.
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Fatma Betül Yeni, Beren Gürsoy Yılmaz, Behice Meltem Kayhan, Gökhan Özçelik and Ömer Faruk Yılmaz
This study aims to address challenges related to long lead time within a hazelnut company, primarily attributed to product quality issues. The purpose is to propose an integrated…
Abstract
Purpose
This study aims to address challenges related to long lead time within a hazelnut company, primarily attributed to product quality issues. The purpose is to propose an integrated lean-based methodology incorporating a continuous improvement cycle, drawing on Lean Six Sigma (LSS) and Industry 4.0 applications.
Design/methodology/approach
The research adopts a systematic approach, commencing with a current state analysis using VSM and fishbone analysis to identify underlying problems causing long lead time. A Pareto analysis categorizes these problems, distinguishing between supplier-related issues and deficiencies in lean applications. Lean tools are initially implemented, followed by a future state VSM. Supplier-related issues are then addressed, employing root cause analyses and Industry 4.0-based countermeasures, including a proposed supplier selection model.
Findings
The study reveals that, despite initial lean implementations, lead times remain high. Addressing supplier-related issues, particularly through the proposed supplier selection model, significantly reduces the number of suppliers and contributes to lead time reduction. Industry 4.0-based countermeasures ensure traceability and strengthen supplier relationships.
Originality/value
This research introduces a comprehensive LSS methodology, practically demonstrating the application of various tools and providing managerial insights for practitioners and policymakers. The study contributes theoretically by addressing challenges comprehensively, practically by showcasing tool applications and managerially by offering guidance for system performance enhancement.
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Gijsbert van de Waerdt, Leentje Volker, Lynn Vosman and Hans Voordijk
The aim of this research is to explore how a programmatic multi-project context influences project-based firms (PBFs) in organizing their relations with other PBFs and suppliers…
Abstract
Purpose
The aim of this research is to explore how a programmatic multi-project context influences project-based firms (PBFs) in organizing their relations with other PBFs and suppliers in a project-based industry.
Design/methodology/approach
A multiple case study research is conducted. Data are collected from two case studies in the construction infrastructure sector. Eleven interviews with contractors and other suppliers are the primary source of data collection. The data are complemented by procurement documents and expert consultations.
Findings
The findings show that within a programmatic multi-project context, PBFs settle relations with (1) key partners for program management capacity, PBFs establish relations with (2) main contractors to divide projects and (innovation) tasks, and PBFs intensify relations with (3) suppliers to ensure continuity and expertise.
Research limitations/implications
The study contributes to the body of project management literature by exploring PBF’s relations with other PBFs and suppliers in a multi-project context. Based on empirical data, the study provides a distinction in layers presenting distinct levels of PBF’s supplier relations. This layer structure provides an excellent starting point for future studies exploring the program perspective of PBFs in the integrated supply chain.
Originality/value
Given the increase in programmatic multi-project context for project-based domains, discussed in both literature and practice, this study explores the effect of programs on relations of PBFs with other PBFs and suppliers. The study distinguishes PBF’s relations with the different suppliers in three layers and discusses the characteristics of these relations.
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Kati Loijas, Aki Jääskeläinen and Elina Karttunen
This study aims to provide new understanding on operational and dynamic capabilities supportive to the implementation of performance-based public procurement by focusing on dyadic…
Abstract
Purpose
This study aims to provide new understanding on operational and dynamic capabilities supportive to the implementation of performance-based public procurement by focusing on dyadic capabilities of a supplier and a buyer.
Design/methodology/approach
The study is based on the qualitative analysis of 20 interviews with informants representing Finnish public organizations and their private sector suppliers. The analysis is aligned with a theoretical framework connecting the phases of procurement and the capability types studied.
Findings
The findings of the study present the role of operational and dynamic capabilities of a buyer and a supplier in the implementation of performance-based procurement at public procurement phases. Preprocurement phase is found to greatly benefit from all three dynamic capabilities, while operational capabilities suffice in the contracting phase.
Social implications
Increased understanding on capabilities needed in performance-based procurement can increase the chances of success in reaching better value for money of public services and developing supplier markets.
Originality/value
The study contributes to the literature on performance-based public procurement and value-based selling by taking a dyadic approach to the operational and dynamic capabilities needed in business with an emphasis on performance. As the focus in public procurement shifts increasingly from resources to performance, involving a joint effort between buyer and supplier, the study provides insights into role of dyadic capabilities and explains how dynamic and operational capabilities together support the phases of performance-based procurement implementation in the public sector.
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Xiying Zhang, Dirk Pieter van Donk, Chengyong Xiao and Madeleine Pullman
This study aims to develop an in-depth understanding of how supplier selection helps social enterprises achieve their social missions while maintaining commercial viability.
Abstract
Purpose
This study aims to develop an in-depth understanding of how supplier selection helps social enterprises achieve their social missions while maintaining commercial viability.
Design/methodology/approach
The paper applies a multiple-case design to study the supplier selection processes of 15 Dutch social enterprises.
Findings
Social enterprises tend to build supply relationships through existing networks and evaluate suppliers based on value alignment, relationship commitment, resource complementarity, and cost. Depending on the possibility of social value creation in supplier selection, the importance of these criteria varies across different social enterprise models and between key and non-key suppliers. Moreover, suppliers’ long-term relationship commitment can help reconcile tensions between the social and commercial logic of a social enterprise and facilitate impact creation.
Research limitations/implications
Data collection is limited to the perspectives of buyers – the social enterprises. Future research could collect supplier-side data to explore how they engage with social enterprises during the selection process.
Practical implications
Managers of social enterprises can use our research findings as guidance for selecting the most suitable suppliers, while organizations that want to collaborate with social enterprises should actively build network ties to be identified.
Originality/value
We contribute to the cross-sector collaboration literature by showing the underlying reasons for the preference for network reinforcing and indirect networking in supplier identification. We contribute to the social impact supply chain literature by revealing the critical role of supplier selection in shaping collaboration outcomes.
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Alice Madonna, Albachiara Boffelli and Matteo Kalchschmidt
This study builds on the panarchy theory by viewing the supply chain as a socio-ecological system and further expands it by considering the within-level linkages internal to the…
Abstract
Purpose
This study builds on the panarchy theory by viewing the supply chain as a socio-ecological system and further expands it by considering the within-level linkages internal to the supply chain level. Three types of linkages are considered: the two cross-level linkages with the planetary and the political-economic levels and the supply chain within-level linkages. The research questions are addressed using the data gathered by the Carbon Disclosure Project within its Supply Chain Programme.
Design/methodology/approach
This work aims to study, applying the lens of panarchy theory, how the planetary and the political-economic levels affect the supply chain within-level linkages for sustainability. Furthermore, the difference in how these cross-level linkages influence focal firms and first-tier suppliers is explored.
Findings
The results show that considering the planetary-supply chain linkage, climate change risk exposure is likelier to foster within-level linkages with buyers than with suppliers. Further, climate change mitigation investments have different roles in the different tiers: focal firms are pushed to strengthen the linkages with their suppliers when they lose efficacy in improving their carbon performance, whereas first-tier suppliers exploit investments to gain legitimacy. Discussing the political-economic level effect, perceptions from first-tier suppliers could be two-fold: they could perceive a mandating power mechanism or exploit policymakers’ knowledge to advance their capabilities.
Originality/value
The results contribute to the sustainable supply chain management literature by providing empirical evidence of the cross-level linkages theorised by the panarchy theory. Moreover, the concept of within-level linkages is proposed to apply the theory in this field.
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