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Article
Publication date: 8 May 2018

Neil Turner, James Aitken and Cecil Bozarth

The purpose of this paper is to examine the nature of supply chain complexity and extend this with literature developed within the project domain. The authors use the lens of…

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Abstract

Purpose

The purpose of this paper is to examine the nature of supply chain complexity and extend this with literature developed within the project domain. The authors use the lens of ambidexterity (the ability both to exploit and explore) to analyse responses to complexity, since this enables the authors to understand the application of known solutions in conjunction with innovative ones to resolve difficulties. This research also seeks to investigate how managers respond to supply chain complexities that can either be operationally deleterious or strategically beneficial.

Design/methodology/approach

The authors develop a descriptive framework based on the project management (PM) literature to understand response options to complexity, and then use interviews with supply chain managers in six organisations to examine the utility of this framework in practice. The authors ask the research question “How do managers in supply chains respond to complexities”?

Findings

The case study data show first that managers faced with structural, socio-political, or emergent supply chain complexities use a wide range of responses. Second, over a third of the instances of complexity coded were actually accommodated, rather than reduced, by the study firms, suggesting that adapting to supply chain complexity in certain instances may be strategically appropriate. Third, the lens of ambidexterity allows a more explicit assessment of whether existing PM solutions can be considered or if novel methods are required to address supply chain complexities.

Practical implications

The descriptive framework can aid managers in conceptualising and addressing supply chain complexity. Through exploiting current knowledge, managers can lessen the impact of complexity while exploring other innovative approaches to solve new problems and challenges that evolve from complexity growth driven by business strategy.

Originality/value

This study addresses a gap in the literature through the development of a framework which provides a structure on ways to address supply chain complexity. The authors evaluate an existing project complexity concept and demonstrate that it is both applicable and valuable in non-project, ongoing operations. The authors then extend it using the lens of ambidexterity, and develop a framework that can support practitioners in analysing and addressing both strategically necessary supply complexities, together with unwanted, negative complexities within the organisation and across the supply chain.

Details

International Journal of Operations & Production Management, vol. 38 no. 6
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 29 January 2021

Pushpesh Pant, Shantanu Dutta and S.P. Sarmah

The purpose of this paper is to conduct a large-sample empirical examination of how intangible supply chain complexity impacts firm performance in light of a firm's organizational…

Abstract

Purpose

The purpose of this paper is to conduct a large-sample empirical examination of how intangible supply chain complexity impacts firm performance in light of a firm's organizational structure.

Design/methodology/approach

The study uses panel data from 2,580 Indian manufacturing firms and constructs empirical proxy for intangible supply chain complexity, i.e. CHQ distance from major cities. The proposed conceptual model is grounded in the dynamic capability view (DCV) and social network theory (SNT). Multivariate regression analyses are performed to investigate the effect of intangible complexity on firm performance.

Findings

Results show that intangible supply chain complexity, as proxied by “CHQ distance from major cities”, negatively affects firm performance and a firm's organizational structure plays an important role in conceiving CHQ locational strategies. Firms with interconnected supply chain and social network (e.g. business group firms) have a higher propensity to locate their CHQs farther away from major cities, and business group firms that have more distantly located CHQs experience better financial performance compared to independent firms (with less network resources).

Originality/value

In light of the supply chain literature and relevant theories, the study conceptualizes intangible supply chain complexity as “CHQ distance from major cities” and deepens our understanding of the relationship between intangible complexity and firm performance in light of organizational structure. Further, it develops an objective understanding of intangible supply chain complexity by relying on secondary panel data.

Details

The International Journal of Logistics Management, vol. 32 no. 4
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 14 June 2011

Ila Manuj and Funda Sahin

The objective of this paper is to develop a comprehensive model of supply chain and supply chain decision‐making complexity that provides an understanding of the drivers of supply

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Abstract

Purpose

The objective of this paper is to develop a comprehensive model of supply chain and supply chain decision‐making complexity that provides an understanding of the drivers of supply chain complexity and strategies to manage supply chain and supply chain decision‐making complexity and outcomes.

Design/methodology/approach

Grounded theory methodology is employed to build a theory of supply chain and supply chain decision‐making complexity and develop propositions related to antecedents, moderators, and outcomes of supply chain complexity. In addition, extensive literature review and informal interactions with a number of supply chain professionals have been used to validate the theory.

Findings

In addition to identifying the antecedents of supply chain complexity, the authors explore strategic, human cognitive ability, and tactical moderators for managing supply chain complexity.

Research limitations/implications

The comprehensive framework presented in the paper builds a theory of supply chain and supply chain decision‐making complexity that is grounded in empirical data. The research also incorporates disparate findings, constructs from multi‐disciplinary research on supply chain complexity and provides future research directions.

Practical implications

The research helps practitioners better understand the sources and outcomes of supply chain complexity and how to manage it. Various strategies to moderate the impact of supply chain complexity are presented.

Originality/value

An integrated, comprehensive theory of supply chain complexity is proposed along with definitions of supply chain complexity and supply chain decision‐making complexity. The proposed model is rooted in actual practice and supported by the existing literature.

Details

International Journal of Physical Distribution & Logistics Management, vol. 41 no. 5
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 6 April 2020

Seyoum Eshetu Birkie and Paolo Trucco

Recent studies have argued that companies may actively implement practices to mitigate disruptions in their supply chain and reduce the extent of damage on performance. Other…

1454

Abstract

Purpose

Recent studies have argued that companies may actively implement practices to mitigate disruptions in their supply chain and reduce the extent of damage on performance. Other studies have shown that disruptions may propagate in supply chains, leading to consequences that are more negative and raising doubts on the effectiveness of mitigation strategies implemented downstream. This study investigates the influence of supply chain complexity on the two phenomena and their interplay, taking a focal company's perspective.

Design/methodology/approach

A systematic procedure for data collection, encoding and aggregation based on incident data mainly from secondary sources was used. Multiple regression models were run to analyse direct and moderation effects involving resilience, distance of impact location from trigger point, and supply chain complexity on weighted performance change.

Findings

Supply chain complexity is found to have positive moderation on the ripple effect of disruption. Resilience capability remains to have dominating direct positive effect in mitigating disruptions when supply chain complexity is taken into account.

Research limitations/implications

This study extends the research discourse on supply chain resilience and disruption management with focus on the supply side. It demonstrates that, along with the severity of the disruption scenario, the ripple effect must also be considered when analyzing the benefits of resilience practices implemented by the focal company.

Practical implications

Complexity in the supply chain can only help to smooth-out the rippling effects of a disruption, which go largely beyond supply-demand unbalances and lead time fluctuations. To mitigate it better, the focal company has to act proactively with adequate resilience practices, which also connects to the importance of better visibility across multiple supply chain tiers.

Originality/value

To the best of the authors' knowledge, this is the first study that empirically tests the benefits of resilience practices and the ripple effect of disruptions under the moderation role of supply chain complexity.

Details

International Journal of Logistics Management, vol. 31 no. 1
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 12 July 2013

Sander de Leeuw, Ruud Grotenhuis and Ad R. van Goor

The purpose of this paper is to discuss complexity assessment in supply chains, to describe a methodology for measuring supply chain complexity in distributive trade and to…

3037

Abstract

Purpose

The purpose of this paper is to discuss complexity assessment in supply chains, to describe a methodology for measuring supply chain complexity in distributive trade and to illustrate the measurement of supply chain complexity and mechanisms to cope with supply chain complexity in distributive trade.

Design/methodology/approach

The paper discusses literature on measuring supply chain complexity and uses five case studies among wholesale companies to illustrate a methodology to measure supply chain complexity and to discuss strategies to cope with supply chain complexity.

Findings

The study confirms the multifaceted nature of supply chain complexity. The paper identifies eight drivers of supply chain complexity and uses these to illustrate the measurement of supply chain complexity in a wholesale environment. The paper identifies six strategies used by wholesalers for coping with supply chain complexity and identifies interrelations between supply chain complexity drivers and these strategies.

Research limitations/implications

The research is based on case studies in wholesale companies; future research may include survey research, including other sectors to analyze industry differences but may also focus on other parts of the supply chain.

Practical implications

The study provides insights into how to identify and measure complexity in a supply chain and what can be done to manage supply chain complexity.

Originality/value

The measurement approach is new to supply chain management and is based on multiple drivers of supply chain complexity. The research is focused on wholesalers, which is a segment that has received limited academic attention in supply chain research to date.

Details

International Journal of Operations & Production Management, vol. 33 no. 8
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 12 September 2016

James Aitken, Cecil Bozarth and Wolfgang Garn

Existing works in the supply chain complexity area have either focused on the overall behavior of multi-firm complex adaptive systems or on listing specific tools and techniques…

2606

Abstract

Purpose

Existing works in the supply chain complexity area have either focused on the overall behavior of multi-firm complex adaptive systems or on listing specific tools and techniques that business units (BUs) can use to manage supply chain complexity but without providing a thorough discussion about when and why they should be deployed. This research aims to address this gap by developing a conceptually sound model, based on the literature, regarding how an individual BU should reduce versus absorb supply chain complexity.

Design/methodology/approach

This research synthesizes the supply chain complexity and organizational design literature to present a conceptual model of how a BU should respond to supply chain complexity. The authors illustrate the model through a longitudinal case study analysis of a packaged foods manufacturer.

Findings

Regardless of its type or origin, supply chain complexity can arise because of the strategic business requirements of the BU (strategic) or because of suboptimal business practices (dysfunctional complexity). Consistent with the proposed conceptual model, the illustrative case study showed that a firm must first distinguish between strategic and dysfunctional drivers prior to choosing an organizational response. Furthermore, it was found that efforts to address supply chain complexity can reveal other system weaknesses that lie dormant until the system is stressed.

Research limitations/implications

The case study provides empirical support for the literature-derived conceptual model. Nevertheless, any findings derived from a single, in-depth case study require further research to produce generalizable results.

Practical implications

The conceptual model presented here provides a more granular view of supply chain complexity and how an individual BU should respond, than what can be found in the existing literature. The model recognizes that an individual BU can simultaneously face both strategic and dysfunctional complexity drivers, each requiring a different organizational response.

Originality/value

There are no other research works that have synthesized the supply chain complexity and organizational design literature to present a conceptual model of how an individual BU should respond to supply chain complexity. As such, this paper improves the understanding of supply chain complexity effects and provides a basis for future research, as well as guidance for BUs facing complexity challenges.

Details

Supply Chain Management: An International Journal, vol. 21 no. 6
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 4 April 2024

Frank Bodendorf, Sebastian Feilner and Joerg Franke

This paper aims to explore the significance of resource sharing in business to capture new market opportunities and securing competitive advantages. Firms enter strategic…

Abstract

Purpose

This paper aims to explore the significance of resource sharing in business to capture new market opportunities and securing competitive advantages. Firms enter strategic alliances (SAs), especially for designing new products and to overcome challenges in today’s fast changing environment. Research projects have dealt with the creation of SAs, however without concrete referencing the impact on selected supply chain resources. Furthermore, academia rather focused on elaborating the advantages and disadvantages of SAs and how this affects structural changes in the organization than examining the effects on supply chain complexity and performance.

Design/methodology/approach

The authors collected and triangulated a multi-industry data set containing primary data coming from more than 200 experts in the field of supply chain management along and secondary data coming from Refinitiv’s joint ventures (JVs) and SA database and IR solutions’ database for annual reports. The data is evaluated in three empirical settings using binomial testing and structural equation modeling.

Findings

The results show that nonequity SAs and JVs have varying degrees of impact on supply chain resources due to differences in the scope of the partnership. This has a negative impact on the complexity of the supply chain, with the creation of a JV leading to greater complexity than the creation of a nonequity SA. Furthermore, the findings prove that complexity negatively impacts overall supply chain performance. In addition, this study elaborates that increased management capabilities are needed to exploit the potentials of SAs and sheds light on hurdles that must be overcome within the supply network when forming a partnership. Finally, the authors give practical implications on how organizations can cope with increasing complexity to lower the risk of poor supply chain performance.

Originality/value

This study investigates occurring challenges when establishing nonequity SAs or JVs and how this affects their supply chain by examining supply networks in terms of complexity and performance.

Details

Supply Chain Management: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 20 April 2023

Laharish Guntuka, Thomas M. Corsi and David E. Cantor

The purpose of our study is to investigate how a manufacturing plant’s internal operations along with its network of connections (upstream and downstream) can have an impact on…

Abstract

Purpose

The purpose of our study is to investigate how a manufacturing plant’s internal operations along with its network of connections (upstream and downstream) can have an impact on its recovery time from a disruption. The authors also examine the inverse-U impact of complexity. Finally, the authors test the moderating role that business continuity management plans (BCP) at the plant level have on recovery time.

Design/methodology/approach

To test our hypotheses, the authors partnered with Resilinc Corporation, a Silicon Valley-based provider of supply chain risk management solutions to identify focal firms’ suppliers, customers and plant-level data including information on parts, manufacturing activities, bill of materials, alternate sites and formal business continuity plans. The authors employed censored data regression technique (Tobit).

Findings

Several important findings reveal that the plant’s internal operations and network connections impact recovery time. Specifically, the number of parts manufactured at the plant as well as the number of internal plant processes significantly increase disruption recovery time. In addition, the number of supply chains (upstream and downstream) involving the plant as well as the echelon distance of the plant from its original equipment manufacturer significantly increase recovery time. The authors also find that there exists an inverted-U relationship between complexity and recovery time. Finally, the authors find partial support that BCP will have a negative moderating effect between complexity and recovery time.

Originality/value

This research highlights gaps in the literature related to supply chain disruption and recovery. There is a need for more accurate methods to measure recovery time, more research on recovery at the supply chain site level and further analysis of the impact of supply chain complexity on recovery time.

Details

International Journal of Operations & Production Management, vol. 44 no. 1
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 30 May 2023

M. Cristina De Stefano and Maria J. Montes-Sancho

Climate change requires the reduction of direct and indirect greenhouse gas (GHG) emissions, a task that seems to clash with increasing supply chain complexity. This study aims to…

Abstract

Purpose

Climate change requires the reduction of direct and indirect greenhouse gas (GHG) emissions, a task that seems to clash with increasing supply chain complexity. This study aims to analyse the upstream supply chain complexity dimensions suggesting the importance of understanding the information processing that these may entail. Reducing equivocality can be an issue in some dimensions, requiring the introduction of written guidelines to moderate the effects of supply chain complexity dimensions on GHG emissions at the firm and supply chain level.

Design/methodology/approach

A three-year panel data was built with information obtained from Bloomberg, Trucost and Compustat. Hypotheses were tested using random effect regressions with robust standard errors on a sample of 394 SP500 companies, addressing endogeneity through the control function approach.

Findings

Horizontal complexity reduces GHG emissions at the firm level, whereas vertical and spatial complexity dimensions increase GHG emissions at the firm and supply chain level. Although the introduction of written guidelines neutralises the negative effects of vertical complexity on firm and supply chain GHG emissions, it is not sufficient in the presence of spatial complexity.

Originality/value

This paper offers novel insights by suggesting that managers need to reconcile the potential trade-off effects on GHG emissions that horizontally complex supply chain structures can present. Their priority in vertically and spatially complex supply chain structures should be to reduce equivocality.

Details

International Journal of Operations & Production Management, vol. 44 no. 5
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 1 August 2001

Michael Milgate

As just‐in‐time delivery has become increasingly commonplace and customer demands continue to tighten, the importance of fast, reliable delivery performance cannot be overstated…

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Abstract

As just‐in‐time delivery has become increasingly commonplace and customer demands continue to tighten, the importance of fast, reliable delivery performance cannot be overstated. This is particularly true for organisations competing internationally, where the complexity of the supply chain must be managed within a global network. A conceptual model is presented that identifies three basic dimensions of this complexity. Results support the linkage of uncertainty with performance, however, no evidence was found that increased technological intricacy or more complicated organisational systems hamper delivery performance. Managers appear to have adopted mechanisms to accommodate these last two dimensions of complexity.

Details

Supply Chain Management: An International Journal, vol. 6 no. 3
Type: Research Article
ISSN: 1359-8546

Keywords

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