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Performance‐based logistics (PBL) strategies are providing governments and for‐profit organizations with a contractual mechanism that reduces the life cycle costs of their systems. PBL accomplishes this by establishing contracts that focus on the delivery of performance not parts. PBL establishes a metric based governance structure where suppliers make more profit when they invest in logistics process improvements, or system redesign, that reduces total cost of ownership. While work has been done to outline an overall PBL theoretical framework, the underlying theory explaining the enablers that lead to organizational and team‐level, team‐goal alignment associated with the PBL governance structure requires testing. The purpose of this paper is to quantitatively test previously posited relationships between enablers of PBL and PBL effectiveness. An additional objective is to explore any differences in PBL effectiveness between different business sectors.

A multiple regression model was developed, tested and validated to explain the effectiveness of PBL. The model was externally validated with exploratory cross‐sectional survey data of 61 practitioners.

This study strongly supports recent PBL theory explaining PBL effectiveness. Key antecedents include investment climate, relational exchange, PBL leadership, and business sector. Further, government organizations lag behind their commercial counterparts in PBL effectiveness and PBL leadership.

PBL business arrangements are more effective in more favorable investment climates. Thus, leaders should welcome new ideas, empower employees, and encourage entrepreneurship. Since PBL effectiveness increases with relational exchange, building trust and communicating with suppliers is key. Leadership is also important to PBL effectiveness. Leaders should accept risk, focus on long‐term affordability and performance, and align activities to achieve end‐user goals.

This research is the first quantitative test of previously posited factors affecting PBL effectiveness. Additionally, this research unveils key differences in business sectors' use of PBL strategies.

Small businesses are critical to economic health and encouraged in government spending by set-asides – annual small business sourcing goals that often are not attained. Little research has explored the negative and risky stigmas associated with small business sourcing.

This research explores reduced transaction costs of small business sourcing to government buyers. A survey of 350 government source selections reveals lower transaction costs derived from lower perceived risk of receiving a bid protest and via more efficient source selection processes.

Contrary to common bias, the performance level of small businesses is no less than that of large business. Thus, small businesses engender lower transaction costs for correcting supplier’s performance. On the basis of these findings, managerial and theoretical implications are discussed.

Research suggests that service-dominant logic (SDL) is well suited to support supply chain management (SCM) research and practice. Qualitative research has shown that SDL is particularly consistent with an outcome-based supply chain strategy known as performance-based logistics (PBL). The purpose of this paper is to extend theory and practice by exploring the degree to which SDL is utilized in practice. Specifically, PBL is examined for consistency with the underlying fundamental premises (FPs) of SDL. In doing so, this paper answers the positive question, “what exists”, at the intersection of SDL and SCM.

This study employs a mixed methodological approach. First, the FPs of SDL are operationalized using the language of PBL. The PBL FPs are tested quantitatively through an online survey of 52 supply chain PBL experts. A qualitative analysis is conducted using comments associated with each premise.

The survey results suggest that PBL is consistent with SDL. These results indicate that PBL is a supply chain context of SDL.

This is one of the first works to examine the degree to which SDL concepts are being utilized in practice.

The purpose of this paper is to describe the conversion of knowledge into value by examining the confluence of service-dominant logic (S-D logic), supply chain management (SCM), human resource management (HRM), and neuroeconomics. S-D logic suggests that knowledge is the raw material of value creation. SCM provides an organized foundation to study the conversion of raw materials into value. HRM recognizes the centrality of human decisions in the process of converting knowledge into value. Neuroscience gives insight into the efficiency and effectiveness of the human decisions processes. Global SCM provides more than markets and raw materials – global SCM provides the human resources central to value creation.

This paper combines literature review with interviews from members of supply chain teams engaged in performance-based logistics (PBL) to develop a model of the S-D logic knowledge conversion process.

The model describes individual-based decision constructs managers can expect to face as they convert knowledge, from a global supply chain team, into value. The model relates the decision maker mindset, based in neuroscience principals, to the efficiency of the knowledge conversion process. These principals are extended to suggest how managers can modulate human resource processes to improve the efficiency of economic exchange and increase supply chain resiliency.

This paper provides theoretical and practical insight into how differences in culture, neuronal predisposition, and genetics may influence managerial decisions. These findings provide a mechanism that researchers and managers may take to expand the boundaries of HRM in a global supply chain.

This work uses a foundation of SCM research to explain efficient conversion in a knowledge-based economy. This perspective demonstrates the criticality of global HRM mindsets and decision processes necessary to achieve competitive advantage in a knowledge-based economy. This provides a context for the study and improvement of neuroeconomic efficiency of firms.

Development of theory remains an essential step in the evolution of supply chain management as an integrative business discipline. Supply chain research often involves phenomena possessing complex behavioral dimensions at both the individual and organizational levels. Such complexity can require the utilization of holistic and inductive approaches in order to more fully understand the behaviors associated with the phenomena. This paper aims to provide a step‐by‐step guide intended to increase researchers' understanding of the use of grounded theory (GT) methodology in supply chain contexts.

The paper argues for GT as an appropriate method for studying emerging supply chain phenomena using an inductive, holistic approach.

GT is positioned in a holistic framework of research methodologies. Next a step‐by‐step explanation of the grounded theory process is offered, illustrated by examples from the authors' own research.

This paper links the complex “system of systems” nature characteristic of supply chains to the need for a holistic research approach such as grounded theory. It also provides a guide for researchers, reviewers, and editors to judge sound GT. Moreover, from a practical perspective, the in‐vivo nature of GT provides recognizable solutions to managerial problems.

The growth of international business persists, particularly in emerging economies. Business in these developing nations is heavily influenced by national culture. In the Middle East and North Africa (MENA) region, buyer-supplier relationships are often negatively influenced by “wasta” – a term associated with power, influence, connection and corruption. Technology-enhanced business processes diffuse as globalization increases. The purpose of this research was to explore whether and, if so, how electronic reverse auction (e-RA) use might be effective in a MENA national culture.

The authors use a case study method based on data collected from 13 interviews with supply chain members extending beyond the dyad to explain: why Middle Eastern bidders participated in an e-RA; the nature of a unique phenomenon in Middle Eastern culture called wasta; and (3) how wasta, e-RA use, and procurement integrity interact in a sustainable way.

This case study extends knowledge in the area of global supply chain management by identifying new opportunities and providing a mechanism to ameliorate risks. It demonstrated that e-RAs can ameliorate some of the deleterious effects of wasta by increasing transparency and procedural fairness associated with MENA-based buyer-supplier relationships.

E-RAs have been criticized as being unfair to suppliers. This study unveils cultural idiosyncrasies where e-RAs overcome a moral hazard associated with MENA buyer-supplier relationships and become a supplier's favored sourcing medium. As economic growth in MENA is expected to outpace all other regions, this study has implications for understanding how regionally specific cultural variables impact B2B sourcing strategy adoption and outcomes.

The purpose of this paper is to show how the cash‐to‐cash (C2C) metric may be used to benchmark supply chain performance.

The paper utilizes C2C variables as a means to benchmark company performance.

Three case studies are offered where firms have benchmarked to: review their internal accounts payable policies; linked results of their benchmarking to profitability to help focus implementation efforts; and served as a call to action to proactively seek improvements with key trading partners. The models developed in this paper provide a benchmark approach to inter‐firm supply chain financial management. These models have direct application in a cost conscious economy and represent a non‐zero sum gain for cooperating corporations.

C2C variables are readily available for use in benchmarking.

C2C benchmarking allows the firm to identify where to focus improvements with their supply chain trading partners.

C2C has been touted as the first multi‐dyadic supply chain metric.

The purpose of this paper is to investigate the unique supply chain strategies employed by retailers.

A mixed methods approach was employed involving analysis of depth interviews with 27 retail supply chain executives combined with a follow‐up survey capturing over 200 responses.

In light of uncertain economic conditions, retailers appear to be developing more agile/responsive supply chain management (SCM) strategies. Additionally, retailers are putting greater emphasis on maintaining a balance of cost versus service than the cost‐centered focus found in a prior study.

This study focused on US retailers and therefore results should be cautiously extended to the retailing environment in other countries.

Retailing is not a “one size fits all” business, and study results suggest the SCM strategies used by retailers depend greatly on the nature of each retailer's model. However, the need to create agile SCM processes while controlling costs was an overarching theme described by retailers.

Retailers operate some of the largest and most complex supply chains, yet SCM research has generally overlooked the retail sector. This study targets this gap, and in addition introduces a novel data collection approach using clicker devices that researchers may find useful in future projects.

Theory is needed for a discipline to mature. This research aims to provide a summary analysis of the theories being used in contemporary logistics and supply chain management (SCM) studies.

A comprehensive literature review of articles appearing in five top tier logistics and SCM journals is conducted in order to identify how often theory is used and to classify the specific theories used. An analysis of the theoretical categories is presented to explain the type and frequency of theory usage.

Over 180 specific theories were found within the sampled articles. Theories grouped under the competitive and microeconomics categories made up over 40 per cent of the theoretical incidences. This does not imply all articles utilize theory. The research found that theory was explicitly used in approximately 53 per cent of the sampled articles.

Two implications are central. First, in the minds of editors, reviewers and authors is approximately 53 per cent theory use enough? Literature suggests there continues to be a need for theory‐based research in the discipline. A first step may be to increase our theory use, and to clearly describe the theory being used. Second, the vast majority of theories used in recent logistics and SCM research originated in other disciplines. Growth in the discipline dictates the need for greater internal theory development.

Despite multiple calls for the use of theory in logistics and SCM, little formal research has been produced examining the actual theories being used. This research provides an in‐depth review and analysis of the use of theory in logistics and SCM research during the period 2004‐2009.

The purpose of this paper is to show that following from the premise that knowledge comprises the fundamental source of competitive advantage, this study provides results of a meta‐analysis that examines whether and how alliance performance is influenced by the role knowledge plays in a strategic alliance.

Meta‐analysis is employed as the driving methodology in this study. The meta‐analysis approach permits the literature on interfirm knowledge management to be reviewed and synthesized such that the role of knowledge in the alliance, environmental risk, and alliance performance can be thoroughly and validly investigated.

The findings suggest that the level of risk associated with the environment in which the alliance partners join forces does not moderate the relationship between the various “roles” of knowledge and alliance performance, whereas the magnitude and type of interfirm cohesiveness enjoyed or endured by the alliance participants does materially impact alliance performance. These performance differences suggest that – when the subject is alliance performance – knowledge management strategies matter more than environmental factors.

The environmental uncertainty construct proved the biggest surprise, given conventional views that alliances should prove more effective in turbulent environments. However, implications are limited by observations that suggest the current alliance literature lacks well‐developed and corroborated knowledge and performance constructs. This, in turn, implies researchers should systematically assess the validity of extant knowledge and performance measures.

The observed positive relationship between increased levels of knowledge interchange, alliance cohesion, and alliance performance is a materially practical implication. This was especially true within industries that are inherently more dependent on vertical supplier or buyer relationships, such as manufacturing and services. Active interfirm knowledge management appears to contribute more to alliance performance than environmental factors.

This paper describes the first study to meta‐analyze the role and influence of knowledge constructs within the alliance literature. As such, the results empirically confirm some presumed conventional wisdoms while calling others into question.