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Article
Publication date: 6 March 2017

C.V. Sunil Kumar and Srikanta Routroy

The purpose of this paper is to provide an approach that a manufacturer can periodically use to measure the performances of its supplier development programs (SDPs). It also…

1450

Abstract

Purpose

The purpose of this paper is to provide an approach that a manufacturer can periodically use to measure the performances of its supplier development programs (SDPs). It also quantifies and indicates the specific supplier development outcomes (SDOs) that a manufacturer has to concentrate in improving its SDPs.

Design/methodology/approach

The proposed methodology integrates fuzzy analytic hierarchy process (to determine the importance of SDOs), Pareto analysis (to choose the significant SDOs) and fuzzy logic (to periodically determine the performance indices and grades of the SDPs) methods to measure the performances of SDPs. In order to demonstrate the utility of the methodology, a case situation is presented where the performance measures of SDPs running at five key suppliers of an Indian turbine manufacturing company were determined.

Findings

By periodically applying the above mentioned methodology, the performance indices of a manufacturer’s SDPs are measured, monitored and managed effectively. It is shown that the methodology is advantageous in clearly indicating the scope of improvement for the SDPs along the specific SDOs.

Research limitations/implications

Since the obtained results in this study are specific to a manufacturing environment, they may not be generalized. However, the generic lists of SDOs mentioned in the paper and the proposed approach can be used in any manufacturing environment for analyzing the performances of SDPs.

Practical implications

The performance analysis of SDPs would help a manufacturer to know more about the functioning of its SDPs along the timeline and provide the scope for improvement.

Originality/value

The proposed approach successfully measures and also grades the performances of SDPs. The results enable the supplier development managers to effectively distribute their investments and efforts along the SDPs.

Article
Publication date: 12 February 2018

Manoj Hudnurkar, Urvashi Rathod, Suresh Kumar Jakhar and Omkarprasad S. Vaidya

The purpose of this paper is to design and develop a balanced scorecard (BSC)-based index for quantifying the suitability of suppliers to mature to the next level of collaboration…

1216

Abstract

Purpose

The purpose of this paper is to design and develop a balanced scorecard (BSC)-based index for quantifying the suitability of suppliers to mature to the next level of collaboration with the buyer company.

Design/methodology/approach

A BSC-based decision framework was developed using factors and factor indicators affecting collaboration with the supplier, using exploratory research. The proposed decision framework was implemented as a real-world case study in an Indian manufacturing organisation by using the Analytic Hierarchy Process. An 11-step methodology was developed to quantify supplier suitability to mature to the next level of collaboration. This is referred to as the “supplier collaborative performance index” (SCPI).

Findings

The proposed decision-making framework helps quantify the extent of collaboration with each supplier. It serves as an index by using the perspectives that are significant for the strategic performance of the buyer company, the factors that affect the collaboration and their specific factor indicators. The initial results of the implementation of the case study were found to be useful in judging supplier suitability in order to mature in their relationship.

Practical implications

A comprehensive BSC-based framework for enhancing relationships with suppliers, SCPI will be instrumental in deciding, managing and improving the level of collaboration with suppliers in manufacturing companies, depending on priorities.

Originality/value

This approach provides a single index to establish the supplier’s suitability to mature to the next level of collaboration with a buyer company. The higher the value of the Collaboration Index for a supplier, the better is the chance to move to the next level of maturity.

Details

International Journal of Productivity and Performance Management, vol. 67 no. 2
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 1 August 1993

M.K. Kolay

Presents an approach for assessing the overall performance index(i.e. the relative value) of the suppliers asset base of anorganization. Four sets of end‐result variables, for…

Abstract

Presents an approach for assessing the overall performance index (i.e. the relative value) of the suppliers asset base of an organization. Four sets of end‐result variables, for example the total service level (i.e. service level and its reliability), the total quality level (i.e. quality and reliability), the after‐sales service level and the effective price level have been considered to reflect a supplier′s performance. Appropriate surrogate measures for assessing these variables have been suggested. The performance level of a supplier has been judged in relation to the nature of the item, its importance, criticality, situational context in which the supply has been made and the proportional volume of the total requirements supplied by that supplier. This is expressed as an overall performance index for the supplier. A study has been carried out in a small‐scale engineering unit to assess the relative value of its suppliers asset base for a five‐year period relative to the base period. The suppliers asset base has been found to be appreciating over the years reflecting the effectiveness of managing it.

Details

International Journal of Operations & Production Management, vol. 13 no. 8
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 1 February 2005

Paul Humphreys, George Huang and Trevor Cadden

Research studies have revealed that supplier involvement in the design process is not widely practised. Aims to discuss the lack of an appropriate customer‐supplier interface to…

3255

Abstract

Purpose

Research studies have revealed that supplier involvement in the design process is not widely practised. Aims to discuss the lack of an appropriate customer‐supplier interface to assess the suitability of suppliers with reference to design criteria.

Design/methodology/approach

The paper proposes a mechanism for evaluating supplier involvement during product development. The assessment tool includes four types of indices to measure supplier involvement in design, namely: satisfaction index, flexibility index, risk index, and confidence index. These indices measure the extent to which both the customer requirements and the supplier capabilities match or mismatch and therefore reflect the potential or risk of signing a project contract.

Findings

Analysis within a multinational telecommunications company indicates that the selection methodology assists in reducing the product development timeframe since it automates the evaluation process and provides the procurement team with a flexible and responsive tool for assessing prospective suppliers.

Research limitations/implications

Additional work is required to investigate the integration of other design factors, such as accessibility, degree of innovation and relationship type.

Practical implications

The methodology has been refined and a prototype internet site has been developed to demonstrate a proof‐of‐the‐concept. A number of benefits and limitations of the system are identified.

Originality/value

First, it identifies the need to define design‐related criteria for supplier involvement during the product development process. Second, a methodology is proposed which takes into consideration the ability of suppliers to provide solutions beyond the requirements specified by the customer and provides a mechanism for measuring the degree of uncertainty or risk associated with using a supplier.

Details

Industrial Management & Data Systems, vol. 105 no. 2
Type: Research Article
ISSN: 0263-5577

Keywords

Book part
Publication date: 28 September 2015

Md Shah Azam

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and…

Abstract

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and non-economic activities. Researchers have increasingly focused on the adoption and use of ICT by small and medium enterprises (SMEs) as the economic development of a country is largely dependent on them. Following the success of ICT utilisation in SMEs in developed countries, many developing countries are looking to utilise the potential of the technology to develop SMEs. Past studies have shown that the contribution of ICT to the performance of SMEs is not clear and certain. Thus, it is crucial to determine the effectiveness of ICT in generating firm performance since this has implications for SMEs’ expenditure on the technology. This research examines the diffusion of ICT among SMEs with respect to the typical stages from innovation adoption to post-adoption, by analysing the actual usage of ICT and value creation. The mediating effects of integration and utilisation on SME performance are also studied. Grounded in the innovation diffusion literature, institutional theory and resource-based theory, this study has developed a comprehensive integrated research model focused on the research objectives. Following a positivist research paradigm, this study employs a mixed-method research approach. A preliminary conceptual framework is developed through an extensive literature review and is refined by results from an in-depth field study. During the field study, a total of 11 SME owners or decision-makers were interviewed. The recorded interviews were transcribed and analysed using NVivo 10 to refine the model to develop the research hypotheses. The final research model is composed of 30 first-order and five higher-order constructs which involve both reflective and formative measures. Partial least squares-based structural equation modelling (PLS-SEM) is employed to test the theoretical model with a cross-sectional data set of 282 SMEs in Bangladesh. Survey data were collected using a structured questionnaire issued to SMEs selected by applying a stratified random sampling technique. The structural equation modelling utilises a two-step procedure of data analysis. Prior to estimating the structural model, the measurement model is examined for construct validity of the study variables (i.e. convergent and discriminant validity).

The estimates show cognitive evaluation as an important antecedent for expectation which is shaped primarily by the entrepreneurs’ beliefs (perception) and also influenced by the owners’ innovativeness and culture. Culture further influences expectation. The study finds that facilitating condition, environmental pressure and country readiness are important antecedents of expectation and ICT use. The results also reveal that integration and the degree of ICT utilisation significantly affect SMEs’ performance. Surprisingly, the findings do not reveal any significant impact of ICT usage on performance which apparently suggests the possibility of the ICT productivity paradox. However, the analysis finally proves the non-existence of the paradox by demonstrating the mediating role of ICT integration and degree of utilisation explain the influence of information technology (IT) usage on firm performance which is consistent with the resource-based theory. The results suggest that the use of ICT can enhance SMEs’ performance if the technology is integrated and properly utilised. SME owners or managers, interested stakeholders and policy makers may follow the study’s outcomes and focus on ICT integration and degree of utilisation with a view to attaining superior organisational performance.

This study urges concerned business enterprises and government to look at the environmental and cultural factors with a view to achieving ICT usage success in terms of enhanced firm performance. In particular, improving organisational practices and procedures by eliminating the traditional power distance inside organisations and implementing necessary rules and regulations are important actions for managing environmental and cultural uncertainties. The application of a Bengali user interface may help to ensure the productivity of ICT use by SMEs in Bangladesh. Establishing a favourable national technology infrastructure and legal environment may contribute positively to improving the overall situation. This study also suggests some changes and modifications in the country’s existing policies and strategies. The government and policy makers should undertake mass promotional programs to disseminate information about the various uses of computers and their contribution in developing better organisational performance. Organising specialised training programs for SME capacity building may succeed in attaining the motivation for SMEs to use ICT. Ensuring easy access to the technology by providing loans, grants and subsidies is important. Various stakeholders, partners and related organisations should come forward to support government policies and priorities in order to ensure the productive use of ICT among SMEs which finally will help to foster Bangladesh’s economic development.

Details

E-Services Adoption: Processes by Firms in Developing Nations
Type: Book
ISBN: 978-1-78560-325-9

Keywords

Article
Publication date: 5 April 2013

Yu‐Xiang Yen and Shiu‐Wan Hung

Although previous studies have examined the influence of asset specificity on firm performance, the literature has not focused on the influence of supplier asset specificity on…

1266

Abstract

Purpose

Although previous studies have examined the influence of asset specificity on firm performance, the literature has not focused on the influence of supplier asset specificity on product development, or the transformation that induces this. This study aims to propose a model by using the relational exchange perspective to explain the mechanism in which supplier investment in specific assets on behalf of buyers influences buyer performance in product development.

Design/methodology/approach

Empirical data were collected from research and development staff in Taiwanese listed electronic firms and tested using structural equation modeling to verify the fit of the hypothetical model.

Findings

The result demonstrates that supplier investment in specific assets for buyers positively impacts buyer's perceived relationship quality, which in turn affects knowledge sharing between buyers and suppliers and buyer product development performance. However, asset specificity does not directly affect knowledge sharing.

Originality/value

This study illuminates the contribution of asset specificity to knowledge sharing and product development performance, by clarifying the mediation effects resulting from relationship quality and knowledge sharing.

Article
Publication date: 1 September 2004

Dinesh Sharma, B.S. Sahay and Amit Sachan

Previous research in the area of distributor performance proposed different scales, mostly in western, developed country context. These studies also lacked the consideration of…

2269

Abstract

Previous research in the area of distributor performance proposed different scales, mostly in western, developed country context. These studies also lacked the consideration of dynamic interaction between variables, which determine the distributor’s performance. This paper proposes a composite Distributor Performance Index (DPI) to evaluate distributors’ performance based on at the “Enables” and “Results”, taking a system dynamics approach. The model results have been discussed and validated, in business marketing channel. The context of this study is India, an emerging market.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 16 no. 3
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 31 July 2019

Fang Li, Lei Deng, Longxiao Li, Zizhen Cheng and Han Yu

The purpose of this paper is to monitor the environmental efficiency of suppliers in the presence of undesirable output and dual-role factors with static and dynamic aspects…

Abstract

Purpose

The purpose of this paper is to monitor the environmental efficiency of suppliers in the presence of undesirable output and dual-role factors with static and dynamic aspects. Meanwhile, it also aims to explain the main reason for the low efficiency of suppliers.

Design/methodology/approach

The authors propose a modified data model considering undesirable output and dual-role factors. The study integrates the modified data envelopment analysis model into the distance function of the Malmquist–Luenberger index. Moreover, this study uses the global benchmark technology to formulate a two-stage model. To verify the validity of this model, a model application is conducted on an automotive spare components company in China.

Findings

The results identify the unique status of dual-role factors based on the global optimality of the model and then categorize inefficient suppliers in an individual evaluation cycle. In addition, each supplier is projected on a frontier curve after obtaining the improved data. Furthermore, through the status plot of M-L and its components, this paper concludes that efficiency scale change is the main reason for the gap in ecological performance between different suppliers.

Research limitations/implications

The proposed model considers both undesirable output and dual-role factors; however, variables with different features, such as imprecise, fuzzy and qualitative characteristics, can be embedded into the presented two-stage model.

Originality/value

Evaluating green suppliers through multiple consecutive evaluation cycles will aid a company in effectively managing its key suppliers. Furthermore, the evaluation provides policy guidance for further improvement of suppliers.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 32 no. 1
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 1 September 2005

Cristóbal Sánchez‐Rodríguez, David Hemsworth and Ángel R. Martínez‐Lorente

Supply chain management is an increasingly important organizational concern, and proper management of supplier relationships constitutes one essential element of supply chain…

9101

Abstract

Purpose

Supply chain management is an increasingly important organizational concern, and proper management of supplier relationships constitutes one essential element of supply chain success. However, there is little empirical research that has tested the effect of supplier development on performance. The main objective is to analyze the effect of supplier development practices with different levels of implementation complexity on the firm's purchasing performance.

Design/methodology/approach

Three supplier development constructs were defined: basic supplier development, moderate supplier development, and advanced supplier development. Three structural models were hypothesized and tested using structural equation modeling through field research on a sample of 306 manufacturing companies in Spain.

Findings

Identified important interrelationships among the various supplier development practices, basic, moderate, and advanced. Also indicated that the implementation of supplier development practices significantly contributes to the prediction of purchasing performance.

Research limitations/implications

The use of a single key informant could be seen as a potential limitation of the study. The study was a cross‐sectional and descriptive sample of the manufacturing industry at a given point in time. A more stringent test of the relationships between the different levels of supplier development and performance requires a longitudinal study, or field experiment.

Practical implications

This study focused on supplier development practices and revealed how involving suppliers in supplier development activities is important and may help buyers to increase their purchasing performance. The findings from the structural analysis should provide practicing managers with insights on how these practices and their benefits are related in terms of purchasing performance, thus affecting their ability to make better sourcing decisions.

Originality/value

Fills an important gap in the purchasing literature with respect to the area of supplier development. While there is much written about supplier development based on conceptual and case study research, this study is unique in that it is the first attempt to empirically model the relationships between different levels of supplier development and their impact on purchasing performance using a comprehensive set of practices.

Details

Supply Chain Management: An International Journal, vol. 10 no. 4
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 6 November 2023

Pushpesh Pant, Shantanu Dutta and S.P. Sarmah

Given the lack of focus on a standardized measurement framework (e.g. benchmarking tool) to assess and quantify complexity within the supply chain, this study has developed a…

Abstract

Purpose

Given the lack of focus on a standardized measurement framework (e.g. benchmarking tool) to assess and quantify complexity within the supply chain, this study has developed a unified supply chain complexity (SCC) index and validated its utility by examining the relationship with firm performance. More importantly, it examines the role of firm owners' business knowledge, sales strategy and board management on the relationship between SCC and firm performance.

Design/methodology/approach

In this study, the unit of analysis is Indian manufacturing companies listed on the Bombay Stock Exchange (BSE). This research has merged panel data from two secondary data sources: Bloomberg and Prowess and empirically operationalized five key SCC drivers, namely, number of suppliers, the number of supplier countries, the number of products, the number of plants and the number of customers. The study employs panel data regression analyses to examine the proposed conceptual model and associated hypotheses. Moreover, the present study employs models that incorporate robust standard errors to account for heteroscedasticity.

Findings

The results show that complexity has a negative and significant effect on firm performance. Further, the study reveals that an owner's business knowledge and the firm's effective sales strategy and board management can significantly lessen the negative effect of SCC.

Originality/value

This study develops an SCC index and validates its utility. Also, it presents a novel idea to operationalize the measure for SCC characteristics using secondary databases like Prowess and Bloomberg.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

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