Supplier involvement in new product development and innovation: Taking stock and looking to the future

This paper provides a comprehensive and critical review and synthesis of the current state of empirical research into supplier involvement in new product development (NPD). The paper begins by defining supplier involvement in NPD and evaluating the rationale for supplier involvement in NPD. This suggests that early and extensive supplier involvement in NPD projects has the potential to improve NPD effectiveness and efficiency, however, existing research remains fragmented and empirical findings to date show conflicting results. The paper takes stock of the research on supplier involvement in NPD, tracing the origins of the literature to the late 1980s, and evaluating the development of the field up to the present day. From this broad base of empirical research the analysis identifies a set of factors affecting the success of supplier involvement projects. The paper concludes with a discussion of two emerging themes: (1) supplier relationship development and adaptation; (2) supply network involvement in product innovation.     

Supplier relationship-specific investments and the role of safeguards for supplier innovation sharing

The vast majority of the supplier innovation literature has focused on how buying firms can effectively “pull” innovations from their suppliers. Yet, we know remarkably little about the factors that contribute to a supplier voluntarily “pushing” innovations to its customers. The present study addresses this research gap in the context of industrial buyer–supplier relationships and with a specific focus on relationship-specific investments. Drawing on theory from the relationship-marketing literature and on transaction cost theory, we devise and test a proposed theoretical model that links the level of a supplier's relationship-specific investments to its sharing of innovative ideas regarding products and processes with customers. The model also considers the role of contract length, relationship age, and buyer–supplier cooperation as possible safeguards. The empirical results suggest that a supplier's relationship-specific investments encourage a supplier to suggest ideas of process innovations but to refrain from suggestions about product innovations. The latter effect, however, can be attenuated by appropriate formal and informal safeguards.     

Customer-facing supply chain practices—The impact of demand and distribution management on supply chain success

Traditionally, distribution has been viewed as the key (physical) link between a company's internal supply chain activities and its customers. More recently, demand management has emerged as a new dimension at the customer interface. Although it has become increasing popular in industry, it has not yet been analyzed in depth with respect to its impact on supply chain performance. Both distribution management and demand management entail customer-facing processes and practices and that are interrelated and (may) jointly determine supply chain performance. In this paper we seek to extend the stream of research in supply chain management by systematically investigating the impact of customer-facing supply chain practices on supply chain performance. Specifically, the paper examines the relative impact of relevant practices associated with demand and distribution management. To this end, we collected data from 116 multi-national companies based in Europe and analyzed it using structural equation modeling techniques. Our results suggest that (i) high demand management performance has a substantial positive impact on the overall supply chain performance, (ii) this effect is stronger than that of distribution management performance, and (iii) there is no evidence that demand management might be an enabler for effective distribution management. Among the individual practices that constitute demand and distribution management, adherence to the demand and distribution management processes and demand segmentation emerged as the strongest performance levers. Based upon additional in-depth interviews conducted with selected companies from our sample, we shed light on some of the most important findings that emerged from our survey analysis.     

Firm's resilience to supply chain disruptions: Scale development and empirical examination

This paper expands our understanding of factors that contribute to development of firm resilience to supply chain disruptions. In doing so, we operationalize firm resilience to understand how supply chain disruption orientated firms can develop resilience to supply chain disruptions. We find that supply chain disruption orientation alone is not enough for a firm to develop resilience. Supply chain disruption oriented firms require the ability to reconfigure resources or have a risk management resource infrastructure to develop resilience. The way in which supply chain disruption oriented firms develop resilience through resource reconfiguration or risk management infrastructure depends on the context of the disruption as high impact or low impact. In a high impact disruption context, resource reconfiguration fully mediates the relationship between supply chain disruption orientation and firm resilience. In a low impact disruption context, supply chain disruption orientation and risk management infrastructure have a synergistic effect on developing firm resilience.     

Demand chain management theory: constraints and development from global aerospace supply webs

This paper develops an empirical and theoretical approach to where strategic capabilities should lie within global aerospace supply chains. Theory from transaction cost economics (TCE) and the resource-based view (RBV) of the firm are applied to the aerospace sector and used to underpin a theory of demand chain management (DCM). A two-stage research process was used to generate and validate data from aerospace supply chain case studies. Demand chain driver and resource-based response categories were identified from these data and are presented. Concluding comments concern current limits of a demand chain theory and implications for practitioners.     

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.     

Gaining from disorder: Making the case for antifragility in purchasing and supply chain management

The purchasing and supply chain management (P&SCM) discipline assumes that supply chains are fragile systems, hence taking a “negative” approach toward disorder. Building on Taleb’s concept of antifragility—the ability to gain from disorder rather than avoiding it—, we challenge this traditional assumption. The COVID-19 pandemic has revealed that some companies were indeed able to gain from disorder, whereas some of those that focused too much on robustness and resilience lost ground. Building robust and resilient supply chains may no longer be enough to thrive in today’s highly volatile business world. This article sparks a new debate by introducing antifragility to the P&SCM literature and provides new directions for future research.     

Quality management practices and their relationship to buyer’s supplier ratings: a study in the Korean automotive industry

This research explores if quality management practices are different among suppliers whose performance is rated high, medium, or low by a common buying company and identifies which specific practices contribute to the differences. The entire population of first-tier suppliers to a Korean auto assembler was surveyed to measure use of quality management practices. Useable returns were received from 25% of the suppliers surveyed. To measure conformance quality and overall rating, suppliers were categorized into high, medium, and low performing groups based on the buying company’s data. Multivariate analysis of variance was done using general linear model (GLM-MANOVA) to explore differences in the high-, medium-, and low-performing supplier groups based on their use of quality management practices. No statistically significant differences were found when suppliers were categorized based on conformance quality. However, when categorized based on overall rating, the highest rated suppliers were found to emphasize process management and employee satisfaction to a greater degree than the lowest rated suppliers.     

The development and application of a process model for R&D project management in a high tech firm: A field study

In R&;D organizations of high tech firms, multiple R&;D projects are executed concurrently and timeliness of project completion - i.e., developing the right products at the right times - is a matter of serious concern. Given that the priority of R&;D projects and the interdependencies between the projects in a high tech firm change dynamically, high tech R&;D project management is a complex and challenging endeavor. To improve the understanding and management of high tech R&;D projects, this paper reports the findings of a field study where we, first, develop and empirically estimate a model that relates project priority over time with the generative mechanisms of market pull and technical challenge associated with R&;D projects. Next, we develop and demonstrate the application of a process model within which the time-varying project priority model is embedded. The process model makes it possible to allocate fixed resources among competing projects with time-varying interdependencies, thereby improving the timeliness of project completion. This research was conducted in collaboration with a major U.S. high tech firm. The corporate R&;D center of the firm served as the research setting for the field study. We present an application of the process model to delineate the evolution of the R&;D organization with the merger of its (technology driven) parent firm with another (market driven) high tech manufacturing firm. The application of the process model generates theoretical insights that are used to develop testable propositions. Implications of the study findings and directions for future research are discussed.     

Local development and business creation. The role of local development workers in project management

The participation of social inclusion workers in project management is to a large extent aimed at setting up businesses and mainly entails working with businessmen and women and entrepreneurs. Policies formulated to this end involve four lines of action: improving infrastructure; managing local businesses; supporting and managing the creation of micro-businesses and small and medium-sized enterprises; and carrying out socio-economic studies which aid the economic and social development of a particular local community. This study includes an analysis of the characteristics of the service provided by local development workers with regard to the development areas concerned, the nature of the work carried out and the groups involved, the characteristics of the service offered to entrepreneurs and groups of entrepreneurs and the characteristics of the projects managed. Field work was carried out during the 2004 which entailed the use of a questionnaire intended for all local development workers included in our own directory.     

Demand chain management in manufacturing and services: web-based integration, drivers and performance

This paper investigated the relationship between Internet-enabled supply chain integration strategies and performance in manufacturing and services. It summarizes the literature on demand and supply integration and describes four web-based strategies. A stratified random sample was collected from UK manufacturers and services, and there was strong evidence that demand chain management (DCM) led to the highest performance in manufacturing, but few signs of DCM in services. Manufacturers and services relying on only web-based demand or supply integration outperformed their low integration counterparts, but lagged DCM in manufacturing. The study also investigated DCM adoption drivers and found that rational efficiency and bandwagon effects drove change. The findings have some important implications for theory as well as for manufacturing and service companies interested in improving their performance.     

Meta-analysis of the relationship between quality management practices and firm performance—implications for quality management theory development

Quality management (QM) has received a high degree of attention in extant literature. Several research papers attribute superior firm performance to adoption of QM practices. The availability of a large number of research papers that investigate the impact of QM practices on performance provide an ideal setting for theory extension and refinement using meta-analysis techniques. In this paper a meta-analytic study is presented that fulfills two objectives. First, the paper formalizes performance implications of adopting QM practices and present hypothesized relationship between QM practices and performance. Second, a meta-analysis of correlation (Hunter and Schmidt, 1990) approach is used to examine the empirical research in QM to determine which QM practices are positively related to improved performance. The study also examines the presence of moderating factors in the association between QM practices and performance. The results support many hypothesized relationships and also point towards the presence of moderating factors in almost all QM practice–performance relationships. A discussion of the findings is presented and directions for further development of QM theory are proposed.     

Development and validation of a measurement instrument for studying supply chain management practices

It is widely argued that competition is no longer between organizations, but among supply chains. Effective supply chain management (SCM) has become a potentially valuable way of securing competitive advantage and improving organizational performance. This research conceptualizes, develops, and validates six dimensions of SCM practices (strategic supplier partnership, customer relationship, information sharing, information quality, internal lean practices, and postponement). Data for the study were collected from 196 organizations and the measurement scales were tested and validated using structural equation modeling. It is hoped that this study will provide a parsimonious measurement instrument to assess the performance of the overall supply chain.     

Exploring internal and external supply chain linkages: Evidence from the field

In their pursuit of improved operational performance, organizations in supply chains have sought to develop external information-based linkages with their customers and vendors. Has this course of action been at the expense of developing similar internal information-based linkages? This research explores the specific roles of internal and external information-based linkages in achieving improved operational performance. Based on a single case study that comprises a supply chain containing twenty-four internal and fourteen external linkages this research develops a series of propositions. We find that the individual internal linkages may be useful for extending externally derived visibility, and for addressing to some extent, “structural holes” in the supply chain. Additionally, to extend visibility across the entire supply chain, organizations need to recognize the combining role of internal and external information-based linkages. Finally we offer some thoughts for future research in this area.     

Remote control and maintenance outsourcing networks and its applications in supply chain management

The paper analyzes the impact of e-business technologies on maintenance management and supply chain operations. The aim of this work is to investigate the network organization level of supply chains in case of remote maintenance application and to understand how maintenance policies are coupled with information technology (IT) solutions. To this purpose two literature reviews are presented: firstly, on the supply chain and network integration, and then on the evolution of maintenance using information technology. Following this, the paper present four specific industrial case-studies of eMRO network organisation. They have been chosen as reference models from a set of practical applications and pilot tests performed by the authors in different production sectors in the last 5 years. Technology complexity environments, maintenance outsourcing level, and supply chain integration context are discussed for each case-studies with particular regards to the profitable forms of collaboration provided by the introduction of IT and the Web. This analysis work toward the development of a framework useful to: (1) classify different e-maintenance systems and understand the relationships between the different members of the network, and (2) identify the variables which can influence the introduction and development of the systems.     

试论企业成本管理理论应用现状和发展

随着市场经济的发展,企业内部成本管理成为现代企业经营发展的突出问题。企业要想获得最大的经济效益,在增加收入的同时对成本的管理也不可松懈。因此,现代企业必须更加关注成本管理。文章分析了企业成本管理理论的应用现状,在此基础上对成本管理理论效用的加强给出了建议,力求完善我国企业成本管理理论。     

Bring your suppliers into your projects—Managing the design of work packages in product development

Early supplier involvement and integration is important in product development on strategic as well as on operational, project and team levels. Saab Aerospace intended to achieve early supplier involvement and high level of integration on all levels in the redesign of the aircraft JAS 39 Gripen. The research underlying this article shows that the intended strategy was only achieved on the strategic level and not on the operational project and team levels. One major reason for this was that the design of the work breakdown structure (WBS) and work packages (WP) in the product development followed the functional and departmental logic within each company resulting in incompatible structures and preventing communication and information exchange. This article intends to explore how prevailing functionally designed WBS and WP structures created barriers and to demonstrate how supplier integration can be improved by designing collaborative WBS and integrated WP. The Dependence Structure Matrix (DSM) is introduced in order to analyze, visualize and manage interdependencies and information exchange between Saab Aerospace and its supplier on different levels of the WBS and in different phases of the development process, following the logic of interdependencies and information flow, in order to support a strategy focusing on integration of suppliers on the project and team level.     

Core issues in sustainable supply chain management – a Delphi study

Sustainable supply chain management has emerged as a growing topic, receiving increasing interest in the sustainability and supply chain management area. So far, the field is dominated by either case or survey based research. Few attempts have been made to take a broader look at the overarching issues, which form core topics of sustainable supply chain management. This paper presents the findings from a Delphi study where experts were asked to contribute their opinion. The Delphi study allows an aggregation of these opinions and extracts underlying topics in a structured manner. Four major topics were identified, which are (1) pressures and incentives for sustainable supply chain management, (2) identifying and measuring impacts on sustainable supply chain management, (3) supplier management (particularly addressing issues at the supplier–buyer interface) and (4) supply chain management (dealing with issues across all companies involved in the supply chain). The research presented contributes to substantiating and consolidating the field of sustainable supply chain management. Copyright © 2007 John Wiley & Sons, Ltd and ERP Environment.     

The organizational antecedents of a firm’s supply chain agility for risk mitigation and response

Today’s marketplace is characterized by intense competitive pressures as well as high levels of turbulence and uncertainty. Organizations require agility in their supply chains to provide superior value as well as to manage disruption risks and ensure uninterrupted service to customers. Thus the cultivation of agility is approached as a risk management initiative that enables a firm to respond rapidly to marketplace changes, as well as anticipated and actual disruptions in the supply chain. Agility is of value for both risk mitigation and response.     

A cross‐country study on the relationship between financial development and earnings management

This study investigates whether a country's level of financial development is associated with earnings management in an international setting. Financial development is likely to heighten the monitoring and scrutiny of accounting numbers because of strengthened investor protection laws and regulations as well as sophisticated market participants. Therefore, we first hypothesize that both accrual‐based and real earnings management decrease with greater financial development. However, research shows that managers tend to apply real earnings management, instead of accrual‐based earnings management, under strict accounting standards, regulations, and close auditor scrutiny. Thus, we explore the alternative hypothesis that accrual‐based earnings management decreases but real earnings management increases along with higher financial development. We examine the relationship between financial development and both types of earnings management using 56,830 observations in 37 countries covering the period 2009–2012. The results indicate that both types of earnings management are more restrained under higher levels of financial development.