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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

Article
Publication date: 22 August 2023

Jinliang Chen, Guoli Liu and Yu Wang

The purpose of this paper is to examine the nuanced effects of downstream complexity on supply chain resilience, based on portfolio theory and normal accident theory. Intelligent…

Abstract

Purpose

The purpose of this paper is to examine the nuanced effects of downstream complexity on supply chain resilience, based on portfolio theory and normal accident theory. Intelligent manufacturing is considered to clarify their boundary conditions.

Design/methodology/approach

The ordinary least squares regression was conducted, based on the data collected from 136 high-tech firms in China.

Findings

Horizontal downstream complexity has a positive effect on supply chain resilience significantly, while the negative impact of vertical downstream complexity on supply chain resilience is not significant. Contingently, intelligent manufacturing plays a negative moderating role in the relationship between horizontal downstream complexity and supply chain resilience, while it positively moderates the relationship between vertical downstream complexity and supply chain resilience.

Originality/value

This study disentangles the nuanced effects of both horizontal and vertical downstream complexity on supply chain resilience, based on portfolio theory and normal accident theory. It also clarifies their boundary conditions by considering the focal firm's intelligent manufacturing level as the contingent factor.

Details

Journal of Manufacturing Technology Management, vol. 34 no. 8
Type: Research Article
ISSN: 1741-038X

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: 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…

2693

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: 7 June 2021

Melek Akın Ateş and Huriye Memiş

This paper aims to empirically examine the moderating role of strategic purchasing on the relationship between supply base complexity (SBC) and purchasing performance.

1131

Abstract

Purpose

This paper aims to empirically examine the moderating role of strategic purchasing on the relationship between supply base complexity (SBC) and purchasing performance.

Design/methodology/approach

Survey data were collected from 209 firms listed in the Capital Top 500 Firms of Turkey. Measurement properties were assessed via confirmatory factor analysis, and the conceptual model was tested via hierarchical regression analysis. A supplementary analysis based on 14 semi-structured interviews was conducted to provide further insights on the survey findings.

Findings

Regarding structural SBC, the results suggest that horizontal complexity and supplier interaction improve purchasing performance, but only in firms with high strategic purchasing. By contrast, spatial complexity reduces purchasing performance in firms with high strategic purchasing, while supplier differentiation does not have any effect. Regarding dynamic SBC, the results show that both delivery complexity and supplier instability reduce purchasing performance when firms have low strategic purchasing. Interviews further suggest that firms with high strategic purchasing leverage the positive effects and mitigate the negative effects of SBC by having a long-term focus, considering multiple performance criteria and adopting advanced purchasing practices.

Practical implications

In contrast to what is widely posited in the existing literature, the nuanced findings of this study reveal that complexity is not always detrimental. The results suggest that practitioners should aim for high levels of strategic purchasing to suppress the negative effects of SBC while leveraging its benefits.

Originality/value

By investigating the contingency role of strategic purchasing, this study provides novel insights into the under-investigated issue of how to best “manage” SBC.

Details

International Journal of Operations & Production Management, vol. 41 no. 6
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 20 April 2012

Cristina Gimenez, Taco van der Vaart and Dirk Pieter van Donk

The purpose of this paper is to investigate the effectiveness of supply chain integration in different contexts. More specifically, it aims to show that supply chain integration…

8861

Abstract

Purpose

The purpose of this paper is to investigate the effectiveness of supply chain integration in different contexts. More specifically, it aims to show that supply chain integration is only effective in buyer‐supplier relationships characterised by high supply complexity.

Design/methodology/approach

A survey‐based research design is developed to measure different dimensions or aspects of supply chain integration and supply complexity. Data were collected among manufacturers in The Netherlands and Spain.

Findings

This research shows that supply chain integration increases performance if supply complexity is high, while a very limited or no influence of supply chain integration can be detected in case of low supply complexity. The results also show that in high supply complexity environments the use of structured communication means to achieve supply chain integration has a negative effect on cost performance.

Research limitations/implications

The limited sample size prohibits estimating and testing of more comprehensive models of the relationship between supply chain integration and performance. Specifically, the authors were not able to further investigate how different supply chain integration dimensions are inter‐related and mutually reinforce one another to improve performance.

Practical implications

The main managerial lesson is that, in contrast to what has been written in many books and other popular publications, high levels of supply chain integration are only necessary in environments characterised by high supply complexity.

Originality/value

This study helps to better understand context in supply chain management research. Specifically, it investigates the moderating effect of supply complexity on the integration‐performance relationship, a topic suggested by Bozarth et al. as a line for further research.

Details

International Journal of Operations & Production Management, vol. 32 no. 5
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 4 September 2017

Markus Gerschberger, Ila Manuj and Patrick Freinberger

The purpose of this paper is to understand and measure empirically the objective and perceived dimensions of supplier-induced complexity in supply chains.

3179

Abstract

Purpose

The purpose of this paper is to understand and measure empirically the objective and perceived dimensions of supplier-induced complexity in supply chains.

Design/methodology/approach

An equal-weight, complementary mixed-method approach is used to investigate supplier-induced complexity and understand its impact on outcomes. Initial qualitative research and extant literature review allowed the identification of supplier characteristics that add complexity to supply chains and development of four research hypotheses. Subsequently, quantitative analysis was used for testing the hypotheses.

Findings

The results suggest that supplier-induced complexity is related to adverse outcomes, and both perceived and objective dimensions of complexity are valuable in understanding and measuring supplier-induced complexity.

Research limitations/implications

This study employs a mixed-method approach to establish and test relationships among perceived and objective supplier-induced complexity, and their outcomes. The unit of analysis is the first-tier suppliers of one farm equipment manufacturing firm. This limits the generalizability of the results to similar industrial manufacturing firms.

Practical implications

This paper presents an approach to identify suppliers that add the highest levels of complexity to a supply chain and, thus, require closer monitoring. Specific supplier characteristics are identified for individual suppliers. Developing specific complexity-related measures helps better identify critical suppliers compared to traditional approaches (e.g. ABC analysis).

Originality/value

This paper contributes to supply chain management literature by comprehensively exploring supplier-induced complexity, incorporating the often-ignored perceived complexity dimension, and providing a managerially useful framework.

Details

International Journal of Physical Distribution & Logistics Management, vol. 47 no. 8
Type: Research Article
ISSN: 0960-0035

Keywords

Open Access
Article
Publication date: 21 March 2022

Maisam Abbasi and Liz Varga

The purpose of this research is to systematically review the properties of supply chains demonstrating that they are complex systems, and that the management of supply chains is…

2847

Abstract

Purpose

The purpose of this research is to systematically review the properties of supply chains demonstrating that they are complex systems, and that the management of supply chains is best achieved by steering rather than controlling these systems toward desired outcomes.

Design/methodology/approach

The research study was designed as both exploratory and explanatory. Data were collected from secondary sources using a comprehensive literature review process. In parallel with data collection, data were analyzed and synthesized.

Findings

The main finding is the introduction of an inductive framework for steering supply chains from a complex systems perspective by explaining why supply chains have properties of complex systems and how to deal with their complexity while steering them toward desired outcomes. Complexity properties are summarized in four inter-dependent categories: Structural, Dynamic, Behavioral and Decision making, which together enable the assessment of supply chains as complex systems. Furthermore, five mechanisms emerged for dealing with the complexity of supply chains: classification, modeling, measurement, relational analysis and handling.

Originality/value

Recognizing that supply chains are complex systems allows for a better grasp of the effect of positive feedback on change and transformation, and also interactions leading to dynamic equilibria, nonlinearity and the role of inter-organizational learning, as well as emerging capabilities, and existing trade-offs and paradoxical tensions in decision-making. It recognizes changing dynamics and the co-evolution of supply chain phenomena in different scales and contexts.

Details

European Journal of Management Studies, vol. 27 no. 1
Type: Research Article
ISSN: 2183-4172

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: 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

1 – 10 of over 51000