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I aimed to obtain a deeper insight into the link between supplier involvement in product development (SIPD), supplier relationship resilience and company performance.
Abstract
Purpose
I aimed to obtain a deeper insight into the link between supplier involvement in product development (SIPD), supplier relationship resilience and company performance.
Design/methodology/approach
To collect data, a survey among 500 Polish manufacturing companies was conducted. I used quantitative methods (structural equation modeling) to test several research hypotheses referring to a single supplier–customer relationship. Thanks to the use of multi-construct measurement of SIPD and supplier relationship resilience, the study provides detailed research results on the topic.
Findings
Collaborative practices implemented during SIPD increase procurement flexibility and decrease redundancy in the relationship with the involved supplier. Communication during SIPD increases supplier flexibility and procurement flexibility. Increased supplier flexibility and increased procurement flexibility in the relationship with the involved supplier as well as collaborative practices during SIPD positively impact company performance. I confirmed the indirect effect between communication during SIPD and company performance when the mediators are supplier flexibility and procurement flexibility. Decreased redundancy in relationship with involved supplier does not impact company performance.
Practical implications
Supply chain managers need to rethink SIPD practice to effectively ensure supply chain resilience (SCRES), especially in the face of the contemporary global crisis and black swans affecting the supplier base. My article provides important managerial insights into drivers of SCRES and company performance.
Originality/value
To the best of my knowledge, this research is among the first to conclude that SIPD does not have an unequivocally positive or direct impact on supplier relationship resilience. The research fills the gap by analyzing the impact of SIPD on two main SCRES elements. The study examines supplier relationship resilience, understood as flexibility and redundancy elements, in a single supplier–buyer relationship perspective. Thus, the presented considerations go beyond the traditional understanding of flexibility and redundancy in supplier relationship management, that is through the prism of double or multi sourcing and having back up-suppliers.
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Helena Forslund and Stig-Arne Mattsson
The purpose of this study is to identify, characterize and assess supplier flexibility measurement practices in the order-to-delivery process.
Abstract
Purpose
The purpose of this study is to identify, characterize and assess supplier flexibility measurement practices in the order-to-delivery process.
Design/methodology/approach
The study involved a survey; participants were 224 purchasing managers at Swedish manufacturing companies that had more than 20 employees.
Findings
Scrutiny of the details of measurement practices revealed that most respondents actually do not specifically measure supplier flexibility. Instead they measure other measures like delivery reliability, conduct qualitative follow-ups, or cannot specify how supplier flexibility is measured. It was acknowledged that they measure different supplier flexibility aspects, and the applied measures were characterized, e.g. in terms of which flexibility dimension they represent.
Research limitations/implications
Conceptual clarifications and adaptations to measuring supplier flexibility in the order-to-delivery process are provided. The identified measures can be a contribution in further developing literature on flexibility performance measurement.
Practical implications
Purchasing, logistics and supply chain managers in search of supplier flexibility performance measurement can find ways to measure and an extended flexibility vocabulary. This has the potential to improve flexibility in the supply chain.
Originality/value
Even though flexibility is claimed as being an important competitive advantage, few empirical studies and operationalized measures exist, particularly in the order-to-delivery process.
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Mohammed Ali Suleiman, Baofeng Huo and Yuxiao Ye
Implementing just-in-time (JIT) practices on the supplier side is a common practice to streamline procurement and production planning in realization of cost efficiency and lead…
Abstract
Purpose
Implementing just-in-time (JIT) practices on the supplier side is a common practice to streamline procurement and production planning in realization of cost efficiency and lead time reduction. However, it is little known how supplier JIT is related to firm flexibility performance and what factors may facilitate the relationship. This study aims to investigate the effects of supplier JIT on flexibility performance and explore the moderating impacts of advanced manufacturing technology (AMT) and human resource empowerment (EMP).
Design/methodology/approach
This study applies hierarchical linear regression analysis to test the proposed model based on data collected from 213 manufacturing firms in China.
Findings
The results revealed a negative influence of supplier JIT on flexibility performance. However, the adoption of AMT and EMP reconciles the conflict between supplier JIT and flexibility performance. Besides, the results indicate the positive effects of AMT and EMP on flexibility performance.
Originality/value
This study contributes to supply chain JIT literature by providing a holistic view to understand the structural relationships between supplier JIT, AMT, EMP and flexibility performance.
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Po‐Young Chu, Kuo‐Hsiung Chang and Hsu‐Feng Huang
This study aims to examine the means by which influence strategies and social mechanisms (trust and shared vision) influence the flexibility of suppliers, and its ultimate effect…
Abstract
Purpose
This study aims to examine the means by which influence strategies and social mechanisms (trust and shared vision) influence the flexibility of suppliers, and its ultimate effect on the performance of manufacturers.
Design/methodology/approach
This study bases the major components of marketing research on previous studies related to influence strategies and flexibility in the supply‐chain. This empirical study utilized 162 SMIT survey samples.
Findings
Results show that using coercive influence strategies and developing a shared vision promote supplier flexibility and fully mediate the effects of trust on supplier flexibility. In addition, supplier flexibility has a significant positive impact on the performance of manufacturers.
Research limitations/implications
The perceptions of manufacturers regarding influence strategies and social mechanisms formed the basis of this study. Future studies could focus on the reciprocal strategies of suppliers, and the influence of these actions on the effectiveness of the influence strategies employed by manufacturers.
Practical implications
This paper adds to the existing management guidelines addressing the problem of ensuring increased flexibility from suppliers to enable a more rapid response to the demands of customers to enhance performance.
Originality/value
The paper provides novel insights into the impact of influence strategies and social mechanisms on the flexibility of suppliers.
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This paper seeks to present the formulation of relationships involving different manufacturing flexibility elements related to the total chain of acquisition, processing and…
Abstract
Purpose
This paper seeks to present the formulation of relationships involving different manufacturing flexibility elements related to the total chain of acquisition, processing and distribution in order to assess the level of flexibility practiced by Australian manufacturing industries.
Design/methodology/approach
A range of published works and a detailed data gathered from a wide range of Australian manufacturing industry through questionnaires are evaluated to determine how customer‐supplier relationships could have an impact on manufacturing flexibility and enhance the total chain of manufacturing. The main analysis tool used is logistic regression. The knowledge and analysis obtained are linked to evaluate the level of each type of flexibility as well as the impact of customer‐supplier flexibility on the total chain of manufacturing. Finally, a performance assessment framework is developed to connect the interlinking factors and contribution regarding customer, supplier, and manufacturing flexibility of Australian industries.
Findings
The relationships and correlation of data displayed would enhance the available body of knowledge on the total chain of manufacturing. Consequently, the relationships found in this paper can be used to support the overall flexibility assessment of manufacturing industries. In the paper, the current flexibility practices of Australian industries are assessed and a framework is suggested based on several elements taken into consideration. As the different elements under flexibility have suggested, the manufacturing flexibility of Australian industries as affected by customer‐supplier participation is found as medium. Suggestions for pursuing improvements are recommended.
Research limitations/implications
The main outcome of the research is to reveal that customer‐supplier relationship could significantly affect the flexibility level within the industries under different functional areas. As a result, to achieve the “real” flexibility of the system, flexibility has to be built into the total chain of acquisition‐processing‐distribution stages, not just focusing on the manufacturing aspects only. The flexibility framework developed in this paper would better assess the impact of customer‐supplier flexibility on the total chain of manufacturing and give more insights for analyzing the flexibility level of customers, suppliers, and manufacturers with data gathered across the globe.
Originality/value
The originality of the paper lies in its detailed analysis of the effect of supplier and customer contribution on manufacturing problems as well as developing a flexibility assessment framework to discuss its impact on the total chain of manufacturing. Its value to both body of knowledge and practitioners are emphasized in the paper.
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Helena Forslund and Stig-Arne Mattsson
The purpose of this study is to develop a framework of strategies to achieving customer order flexibility in and related to the order-to-delivery (OTD) process. The purpose is…
Abstract
Purpose
The purpose of this study is to develop a framework of strategies to achieving customer order flexibility in and related to the order-to-delivery (OTD) process. The purpose is also to investigate how companies prioritize various strategies to achieve customer order flexibility.
Design/methodology/approach
Based on a literature review, pre-tests and conceptual reasoning, a conceptual framework of strategies related to the order-to-delivery process was developed. The strategies were linked to the order quantity and delivery lead-time flexibility dimensions. This structure resulted in six groups covering enabling as well as remedial strategies. An empirical interview study of ten customer–supplier relationships was conducted.
Findings
The interviews identified additional strategies, thereby expanding the framework. The enabling strategies with the highest median values were “have continuous contact with the customer's purchaser” and “use safety stock of raw materials/semi-finished products”. The remedial strategy with the highest median was “re-plan/re-prioritize the order backlog”. In the delivery sub-process, it was more common to apply remedial strategies for delivery lead-time than for order quantities.
Research limitations/implications
The developed framework is a contribution to the literature on operational flexibility in and related to the OTD process. It complements existing knowledge by taking a supplier perspective.
Practical implications
Suppliers can use the framework as a tool to understand and systematically achieve better customer order flexibility in and related to the OTD process. Customers can use the framework as a checklist for supplier evaluation and supplier development.
Originality/value
Few identified studies include empirical data on customer order flexibility.
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Gordon Liu, Lukman Aroean and Wai Wai Ko
Supplier flexibility reflects a supplier's operations-related decisions in responsively providing the necessary inputs to the focal firm. Drawing on resource-dependency theory and…
Abstract
Purpose
Supplier flexibility reflects a supplier's operations-related decisions in responsively providing the necessary inputs to the focal firm. Drawing on resource-dependency theory and transaction cost economics, this study develops a conceptual framework to explain the differential effects of a focal firm's power over supplier flexibility in the context of the hub-and-spoke supply chain (SC). This study also considers the goals shared between the focal firm and its suppliers as an important contingency factor within the framework.
Design/methodology/approach
This study tests the proposed conceptual framework using dyadic survey data from a hub-and-spoke SC consisting of a large construction contractor and its 100 suppliers in Indonesia.
Findings
The findings show that coercive power has an inverted U-shaped effect on supplier flexibility, while legal-legitimate power has a U-shaped effect. Furthermore, shared goals positively moderate the U-shaped effect between legal-legitimate power and supplier flexibility.
Originality/value
This study differentiates between the impacts of coercive power and legal-legitimate power on supplier flexibility in the hub-and-spoke SC. It also demonstrates that shared goals play a moderating role in affecting the impacts of legal-legitimate power on supplier flexibility. These findings also have important implications with regard to integrating resource-dependency theory and transaction cost economics to explain these associations.
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Inayat Ullah and Rakesh Narain
The importance of supply network flexibility (SNF) in the development of mass customization capability (MCC) has been implied in the literature but seldom subjected to empirical…
Abstract
Purpose
The importance of supply network flexibility (SNF) in the development of mass customization capability (MCC) has been implied in the literature but seldom subjected to empirical investigation. To fill the gap and contribute to MC literature, this paper aims to examine the role of SNF in facilitating the development of MCC of organizations. Furthermore, it has been investigated whether the use of information and communication technologies (ICTs) strengthens the above relationship.
Design/methodology/approach
Drawing on the supply chain literature and dynamic capability theory, the study proposes a research framework depicting the interconnectedness among the variables of interest. The proposed framework has been tested using structural equation modelling based on partial least squares by using the data collected from a questionnaire-based survey of a sample of Indian manufacturing organizations.
Findings
The findings indicate that the dimensions of SNF, namely, sourcing flexibility and supplier flexibility, positively affect the MCC of the organizations and the strength of these relationships is further amplified by the implementation of ICTs.
Practical implications
The study shows the managerial opportunities for the development of a flexible and competent supply network to facilitate the development or enhancement of MCC.
Originality/value
This study contributes to scant literature by providing empirical evidence for the relationship between SNF and MCC. Further, this study enriches the understanding of the crucial role of ICT by exploring its moderating effect on the relationship between the variables of interest.
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Helena Forslund, Patrik Jonsson and Stig-Arne Mattsson
Flexibility is one enabler of efficient use of resources and is therefore an antecedent to sustainability. The purpose of this article is to identify supplier flexibility…
Abstract
Purpose
Flexibility is one enabler of efficient use of resources and is therefore an antecedent to sustainability. The purpose of this article is to identify supplier flexibility variables in, and related to, the order-to-delivery (OTD) process and categorize them into a framework, followed by empirically exploring the framework.
Design/methodology/approach
A perception-based survey was sent to Swedish purchasing managers. 289 responses were received. After descriptive gap analysis, exploratory factor analysis was applied to structure the responses into factors. This formed the basis for hierarchical linear regression analysis, explaining supplier flexibility.
Findings
A conceptual framework, specifying supplier flexibility into volume, delivery and information exchange dimensions and relating these dimensions to the OTD process, was developed. Significant negative gaps between actual and demanded volume flexibility and delivery flexibility were identified, while positive gaps were found for information exchange flexibility. The factor analysis revealed three factors. The regression analysis verified that OTD-related information exchange flexibility and OTD-related volume and delivery flexibility explain the variation in OTD-specific flexibility and are important antecedents for supplier flexibility in the OTD process.
Research limitations/implications
A contribution to research is the framework – with defined, related and empirically validated flexibility types.
Practical implications
The study proposes a perception-based way to capture supplier flexibility in the OTD process, which is of practical relevance when evaluating suppliers.
Originality/value
Identifying, conceptualizing and capturing types of supplier flexibility in the OTD process is new related to academic literature. Also the wide empirical study mapping supplier flexibility gaps is unique in its focus.
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Yiyo Kuo, Taho Yang, David Parker and Chin-Hsuan Sung
The purpose of this paper is to solve an integration of customer and supplier flexibility problem in a make-to-order (MTO) industry. The flexible strategies, where delivery…
Abstract
Purpose
The purpose of this paper is to solve an integration of customer and supplier flexibility problem in a make-to-order (MTO) industry. The flexible strategies, where delivery leadtime and unit price (or raw material cost) can be negotiated, are provided by customers and suppliers. Its effectiveness is illustrated by a practical application.
Design/methodology/approach
The present study is a rolling decision-making problem and is solved by a proposed combined mixed integer program (MIP) and simulation approach. A simulation model was developed for evaluating solutions of the MIP and will serve as the virtual factory to provide the initial work-in-process status for a new incoming order evaluation.
Findings
The experimental results show that when either customers or suppliers provide flexible strategies to the manufacturer, total profits can be increased. Moreover, when both customers and suppliers provide flexibility strategies to the manufacturer simultaneously, total profits can be significantly increased.
Research limitations/implications
An expanded experiment would be of help in realizing the relationship between the flexibility and profit. Moreover, there are other price-sensitivity functions for both customers and suppliers.
Practical implications
A fishing-net manufacturing company was used for the case study to illustrate the effectiveness and the feasibility of the proposed methodology and its application to industry.
Originality/value
The proposed methodology innovatively solved a practical application. The customer and supplier flexibility was investigated in a MTO production system that has no inventory of raw material. The experimental results are promising.
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