The impact of supply chain agility on business performance in a high level customization environment

To improve business performance in rapidly changing environments, supply chain agility can be a crucial requisite to address responsiveness issues, especially in environments with high levels of customization. This paper examines the effect of supply chain agility on customer service, differentiation, and business performance. A survey research methodology was employed using a sample of 156 manufacturing firms that provide high levels of customization. In particular, structural equation modeling (SEM) was employed to evaluate the proposed model. The results suggest that supply chain agility influences customer service and differentiation positively. However, it does not affect business performance directly; instead, better business performance can be achieved and mediated through improved customer service and differentiation. In particular, differentiation through customer service is the most effective way to improve business performance, and supply chain agility can help to achieve high-level customer service. The paper advises managers on details of how to fulfil their business performance ambitions better through suggested key agile supply chain management activities.     

Diffusion of environmental business practices: A network approach

The purpose of this research is to build a conceptual foundation that examines network effects on the diffusion of environmental business practices (EBP) among suppliers. This research extends a network perspective to adoption of an environmental business practice across a large network of suppliers. The context of EBP is used to better understand adoption of a complex business practice, with perceived costs that are often greater than the perceived benefit. Variation in the level of structural and relationship embeddedness affect network diffusion of environmental business practices differently. Increased levels of structural and relational embeddedness are proposed to be positively associated with diffusion of EBP. From a practical standpoint, firms that leverage embeddedness may facilitate higher diffusion and adoption of environmental business practices. This facilitation may lead network actors to engage in EBP, and leverage benefits that may stem from these practices. This research introduces the concept of embeddedness to the environmental supply chain literature. Practicing managers can use the findings in this research to better position themselves within a network to diffuse EBP. This research also helps managers understand how supply chain members that are weakly connected to the primary network are important for introducing new ideas and innovations.     

The impact of green supplier integration on firm performance: The mediating role of social capital accumulation

Although green supplier integration has received widespread attention, how it impacts various types of firm performance remains unclear. Based on social capital theory, this study explores the influence of green supplier integration on three dimensions of social capital accumulation, which further affect economic and environmental performances. To verify the hypotheses, we collect two-wave survey data from 206 Chinese manufacturers. Results show that green supplier integration significantly affects social capital accumulation. Relational and structural capital accumulations have positive effects on both economic and environmental performances, while cognitive capital accumulation only has a positive impact on environmental performance. Additionally, relational and structural capital accumulations partially mediate the effects of green supplier integration on economic and environmental performances, whereas cognitive capital accumulation only partially mediates the impact of green supplier integration on environmental performance. This research deepens the understanding of how green supplier integration influences firm performance via social capital accumulation, and provides a theoretical basis for firms attempting to enhance their performance.     

Relational capital,environmental knowledge integration,and environmental performance of small and medium enterprises in emerging markets

Although several prior studies have examined associations between firm social capital and environmental sustainability, the links between relational resources (i.e., relational capital and ties strength), environmental knowledge integration, and environmental performance have yet to be well established at the micro-level. This study, therefore, aims to determine (1) how environmental knowledge integration serves as a mediating mechanism for the relationship between relational capital and environmental performance and (2) how this impact differs at different levels of ties strength. A quantitative approach has been adopted to examine the main hypotheses using a structural equation model (SEM) technique. Two groups of actors were surveyed, including chief executive officers (CEOs) and financial officers of small and medium-sized enterprises (SMEs) operating in Dubai, United Arab Emirates. In total, 216 survey responses were gathered, suggesting a response rate of 73.22%. Our findings suggest that environmental knowledge integration is a vital mediating mechanism for the relationship between relational capital and SMEs' environmental performance. Also, we find that ties strength moderates the indirect effect of relational capital on SMEs' environmental performance via environmental knowledge integration. Our empirical evidence provides recommendations for SMEs' managers and policymakers to promote environmental sustainability in the emerging market context.     

Understanding sustainable development flexibility: An information perspective

Although flexibility has been considered critical in responding to uncertainty in a business environment, few studies have explored firms' flexibility in sustainable development. To understand the nature of firms that can respond better to uncertainty in their sustainable development practices, this study defines sustainable development flexibility and investigates the mechanism underlying its formation. The study proposes a conceptual framework on the interactions of managers' environmental attitude and cognitive style, as well as firms' information integration on sustainable development flexibility. A questionnaire survey was developed to test the corresponding hypotheses, and 241 valid responses were received from middle- and top-level managers in Chinese firms. The results show that (a) the higher the manager's environmental attitude, the higher the firm's information integration and greater sustainable supply chain flexibility, and (b) the more intuitive the manager's cognitive style, the greater the impact of environmental attitude on sustainable development flexibility.     

Firms’ Response to Climate Change: The Interplay of Business Uncertainty and Organizational Capabilities

With climate change emerging as one of the most important issues increasing uncertainty in the business circle, firms have shown different reactions. Why do firms differ in adopting and implementing carbon management practices (CMPs) in response to the global warming issue? This paper attempts to explore this question with particular attention to two factors: external business uncertainty and internal organizational capabilities. This study investigated whether business uncertainty, organizational learning and lean production capabilities influenced the adoption and implementation of CMPs as well as examining how organizational capabilities moderate the relationships between business uncertainty and the level of CMPs. The results of a cross‐sectional survey and hierarchical regression analyses indicate that perceived business uncertainty decreases the adoption of CMPs, organizational learning and lean production capabilities strongly facilitate the adoption and implementation of CMPs, and lean production capability positively moderates the impacts of business uncertainty on the adoption of CMPs. This study provides guidance for managers and academics considering how to identify, design and manage the dimensions of a firm's practices in response to the global warming issue within the organization as well as with other organizations. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment     

Capabilities that enhance outcomes of an episodic supply chain collaboration

Firms are increasingly dependent on the knowledge and expertise in external organizations to innovate, problem-solve, and improve supply chain performance. This research examines two capabilities that enable firms to collaborate successfully as a means to combine knowledge and expertise in an episodic collaboration initiative. Building from two theoretical foundations, the knowledge-based and relational views of the firm, we examine the effects of absorptive capacity and collaborative process competence on the outcomes of an episodic collaboration initiative. Using structural equation modeling, we empirically validate the positive effect of absorptive capacity, collaborative process competence and level of engagement on the operational and relational success of a collaboration effort. Results show that collaborative process competence mediates the relationship between absorptive capacity and collaborative engagement, and positively influences both operational and relational outcomes. Finally, we offer suggestions for managers to improve the effectiveness of inter-firm collaboration initiatives and discuss future research opportunities.     

Social capital configuration, legal bonds and performance in buyer-supplier relationships

Academics have increasingly recognized the benefits derived from social networks embedded within companies’ buyer-supplier relationships. However, prior research has only examined the influence of social capital elements on performance, either individually or in part. We propose an integrative model examining the relationships among relational, structural and cognitive dimensions of social capital, and between these dimensions and the cost and innovation performance of the firm. A sample of 163 buyer-supplier relationships is used to test the model. Regression results indicate that the relational dimension of social capital fully or partially mediates the effect of the cognitive dimension on performance, and partially mediates the link between the structural dimension, operationalized as social interaction ties, and innovation performance. Further, high levels of legal bonds were found to moderate the relationship between the relational dimension of social capital and performance outcomes. Implications for theory and managers are discussed.     

Antecedents and consequences of social capital on buyer performance improvement

The ability to leverage social capital within strategic buyer–supplier relationships is increasingly cited as a key driver of value creation. Despite the importance of strategic partnerships, the process by which social capital accumulates within buyer–supplier relationships and contributes to buyer performance improvements is not well understood. Drawing on social capital theory, we develop a model linking positive relational capital, and its antecedents, supplier integration and supplier closeness, to buyer performance improvements. Further, we hypothesize that structural capital, as reflected in managerial communication and technical exchanges, is also positively related to buyer performance improvements. Using data provided by 111 procurement executives from the United Kingdom, we find support for our hypotheses. The study extends the supply chain management and social capital literature and suggests important implications for both research and practice.     

Structural social capital and knowledge acquisition: implications of cluster membership

This paper analyzes the implications of belonging to a cluster through the relationship between structural social capital and knowledge acquisition. The findings suggest structural social capital only indirectly affects knowledge acquisition through the relational and cognitive dimensions of firms’ membership of a cluster. However, the structural dimension also has a direct impact on knowledge for external firms outside a cluster. This paper contributes to the cluster literature with a better contextualization and understanding of the relationship between structural social capital and knowledge acquisition. In addition, the paper also consolidates the inter-organizational approach to social capital theory by helping to understand how and in what context social capital dimensions are interrelated. The study analyzes how firms can acquire valuable knowledge from their networks, filling the gap in the literature on how this process occurs inside and outside clusters. This works also proposes recommendations for companies and institutions, and new complementary lines of research.     

Supply Chain Management as Private Sector Regulation: What does it Mean for Business Strategy and Public Policy?

The growing practice of environmental supply chain management by firms constitutes private sector regulation that is analogous in many ways to public sector regulation. Similarly to their public counterparts, private sector regulators set standards, apply standards, monitor for compliance, apply sanctions and require corrective action. Private sector regulation differs, however, in the source of authority, external oversight, analytical requirements, public participation and available sanctions. This article argues that supply chain management by firms goes beyond business objectives by creating positive environmental externalities for society, and that more systematic study of the similarities and contrasts between the two forms of regulation may provide valuable lessons for both. Further, it may be possible to increase the effectiveness of private sector regulation to achieve both public societal and private business goals. From a business perspective, supply chain management enables firms to strategically redefine their relationships with government, reduce uncertainty and promote goal‐oriented collaboration. Copyright © 2014 John Wiley & Sons, Ltd and ERP Environment     

Impact of mass customization on cost and flexiblity performances: the role of social capital

More than ever, companies have to cope with ever changing market conditions. Some companies have reacted to shortened product life cycles, constant changes in customer preferences and cost pressures by implementing mass customization practices. Mass customization has been hailed as a way to overcome the tradeoff between cost and flexibility performance. However, there is lack of consistent empirical evidence to demonstrate that this really is the case. We advance this debate by proposing that in order for mass customization to be more effective, a company needs to possess and utilize social capital (i.e., cognitive, relational and structured social capital) within their supply networks. This study uses primary survey data from 513 plants from nine countries collected by the Global Manufacturing Research Group (GMRG). We used structural equation modelling analysis to test our hypotheses. Results indicate that mass customization has the ability to improve a company’s cost and flexibility performance. Furthermore, results regarding the moderating role of social capital are mixed. Cognitive capital only moderates the impact of mass customization on cost performance while relational capital increases this impact on both cost and flexibility performance. Structural capital does not moderate the impact of mass customization on performance.     

The moderating role of relational bonding in green supply chain practices and performance

Previous research has paid attention to the effect of green supply chain practices on green innovation performance. However, little has been done to examine the substantive role of relational bonding in green supply chain management context. This study attempts to identify relational bonding as a potential moderator and examines the relationships between green supply chain practices, relational bonding, and green innovation performance. The results indicate that green supply chain practices and relational bonding are positively related to green innovation performance. Relational bonding moderates the relationship between green supply chain practices and green innovation performance. This study makes a contribution by integrating relationship marketing literature and green management literature. This study also provides practical implication for the essential role of relational bonding in green supply chain management.     

Linking forward and reverse supply chain investments: The role of business uncertainty

This paper explores managerial efforts in reverse supply chains (RSC), where the focus is on the capture and exploitation of used products and materials. The RSC can potentially reduce negative environmental impacts of extracting virgin raw materials and waste disposal. If so, investment in the reverse supply chain should not be made in isolation, but instead must be integrated with investments selected to improve the forward supply chain. After defining and operationalizing these constructs, a survey of plant managers was used to empirically assess the linkages between supply chain investments, organizational risk propensity (i.e., willingness to take risk) and business uncertainty. Reverse supply chain investment had two primary dimensions: reconditioning (i.e., high-value recovery) and recycling and waste management (i.e., low- or no-value recovery). Ongoing investment in the forward supply chain was significantly related to investment in recycling and waste management, but not to investment in reconditioning. Moreover, risk propensity was found to mediate the relationship between the external business uncertainty and investment in the forward and reverse supply chain.     

Enhancing hospital supply chain performance: A relational view and empirical test

Improving hospital supply chain performance has become increasingly important as healthcare organizations strive to improve operational efficiency and to reduce cost. In this study, we propose a research model based on a relational view, delineating the factors that influence hospital supply chain performance: trust, knowledge exchange, IT integration between the hospital and its suppliers, and hospital–supplier integration. Testing results of the research model based on data from a sample of 117 supply chain executives from U.S. hospitals show positive direct effects: (1) from trust and from IT integration to knowledge exchange respectively; (2) from knowledge exchange and from IT integration to hospital–supplier integration respectively; and (3) from hospital–supplier integration to hospital supply chain performance. The results also show the following indirect effects: (1) the influences of knowledge exchange and IT integration on hospital supply chain performance are partially and fully mediated by hospital–supplier integration, respectively and (2) the influences of trust and IT integration on hospital–supplier integration are fully and partially mediated by knowledge exchange, respectively. In addition, the results show the following moderating effects: (1) hospital system membership moderates the relationships between IT integration and knowledge exchange and between trust and knowledge exchange; (2) hospital environmental uncertainty moderates the relationship between trust and knowledge exchange; and (3) trust moderates the relationship between knowledge exchange and hospital–supplier integration. Implications of the study findings and directions for future research are discussed.     

The dark side of buyer-supplier relationships: A social capital perspective

The literature on supply chain management (SCM) has consistently promoted the “bright side” of collaborative buyer-supplier relationships (BSRs). Based on the social capital argument, SCM scholars have investigated how a buyer can gain access to and leverage resources through its collaborative BSRs. Our study extends this research stream by considering the “dark side” of social capital in BSRs. It evaluates how social capital in its cognitive, relational, and structural forms contributes to or impedes value creation within BSRs. Both primary survey measures and secondary objective measures have been used in data analysis. The results show the presence of both the bright side, confirming the existing literature, and the dark side, extending the literature. There is an inverted curvilinear relationship between social capital and performance: Either too little or too much social capital can hurt performance. This study confirms that building social capital in a collaborative BSR positively affects buyer performance, but that if taken to an extreme it can reduce the buyer's ability to be objective and make effective decisions as well as increase the supplier's opportunistic behavior. Our study also examines how a buyer can delay the emergence of the dark side. It opens up new research avenues in the collaborative BSR context and suggests directions for future research and practice.     

Social capital as a facilitator of successful buyer-supplier performance management

Performance management in supply chains is an increasingly important, rapidly developing but challenging area. It may benefit from sufficient levels of social capital, such as frequent interactions between buyers and suppliers. However, social capital has not yet been studied as a facilitator of performance management. To bridge this knowledge gap, we examine buyer-supplier performance management and social relationship characteristics as perceived by suppliers. We analyze empirical data gathered through a survey of 482 suppliers by employing PLS-SEM and PLS-MGA. The findings elaborate on the role of cognitive, relational, and structural capital in performance management activities within a buyer-supplier relationship. Moreover, the results demonstrate how a supplier's positive perception, in the form of preferred customer status, can be facilitated through performance management activities. The findings reveal that there is a difference in the role of structural and relational capital between key and non-key supplier groups in performance management activities. We conclude that successful performance management in buyer-supplier relationships requires more than simply a system for sharing information. The mature use of performance measurement is also essential, with cognitive capital being especially beneficial in this endeavor.     

Improving sustainable supply chain performance through organisational culture: A competing values framework approach

This research adopts the institutional and relational view theories to empirically test the impact of organisational culture (OC) on sustainable supply chain performance (SSCP) and further examines the impact of external integration on their relationship, drawing on a study in the food manufacturing industries in the UK and Greece. Using the mixed method approach, structural equation modelling (SEM) technique was first used to empirically analyse the data from a survey of 315 firms. In addition, insights from 11 interviews from top managers were qualitatively used as the basis to enrich and confirm the findings from the quantitative study. Our findings revealed that in the context of global supply chains only developmental, hierarchical, and group culture components of the competing values framework (CVF) as a model for assessing OC are conducive for achieving a higher SSCP. Although developmental, hierarchical and group cultures are instrumental for SSCP, a strong external integration is still required. Thus, external integration was found to mediate the relationship between the dimensions of OC and SSCP. The results further confirmed a positive relationship between all the dimensions of OC (developmental, group, hierarchical and rational culture) and external integration and a positive impact of external integration on SSCP. This research expands the institutional and relational view theories to examine the effect of OC (using CVF) on SSCP and further reveals the extent of external integration needed in the relationship to enhance SSCP in global supply chains. Supply chain managers are encouraged to adopt integrated competing values, namely, developmental, group, and hierarchical cultures to intensify the external integration in the supply chain to overcome several sustainability challenges and improve SSCP.     

Strategic HRM and organisational learning in the Chinese private sector during second-pioneering

This study examines the relationship between strategic human resource management (HRM) and organisational learning in Chinese private firms during the second-pioneering stage, which involves a process of transition from ‘opportunism’ to ‘capability building’. It specifically examines how this relationship is influenced by environmental uncertainty and guanxi dependence. Using data from a face-to-face survey of 107 Chinese private firms, the findings show that strategic HRM has a positive effect on all four dimensions of organisational learning: knowledge acquisition, knowledge distribution, knowledge interpretation and organisational memory. In addition, task environmental uncertainty positively moderates the relationship between strategic HRM and organisational learning. However, the moderating effects of institutional environmental uncertainty and guanxi dependence on this relationship are not significant. These results highlight the importance of strategic HRM for organisational learning in uncertain task environments to promote organisational transition.