The selection of contracts in supply chains: An empirical analysis

This paper seeks to empirically identify the key drivers for firms in selecting a contract in a supply chain by investigating their performance, supply chain orientation, and supply chain integration. A conceptual model is drawn up based on the existing literature in supply chain coordination contracts, performance, supply chain orientation, and supply chain integration and tested on a large sample of European firms. Multiple and multinomial logistic regression models allow for estimating the relationships between these variables. Our results demonstrate that the selection of contracts and the probability of their adoption depend on several combinations of firms' performance, supply chain orientation, and integration. Overall, the research provides an empirical contribution to the literature on coordination with contracts, which turns out to be mainly game theory based.     

Customer pressure and innovativeness: Their role in sustainable supply chain management

This work investigates how sustainable supply chain management develops within a company and evolves from internal to external practices. Specifically, the relationships among sustainable process management (internal practices), sustainable supply management (external practices), customer pressure and innovativeness are elaborated in a conceptual model, which is tested using a survey approach. Partial least squares (PLS) methodology is applied to data collected from a sample of 77 Italian manufacturing firms. Our results highlight that customer pressure and innovativeness positively and significantly affect SPM. We also observe that SPM fully mediates the relationships between such factors and SSM. Finally, innovativeness negatively and significantly moderates the effect customer pressure has on SPM. This study is relevant because it shows what driving and enabling factors influence the development of SSM, providing guidance for companies that wish to achieve further social and environmental improvements in their supply chains.     

Antecedents of supply chain visibility in retail supply chains: A resource-based theory perspective

Although visibility has become a popular buzzword in the supply chain literature it remains an ill-defined and poorly understood concept. It is assumed that if companies across supply chains have visibility of demand, inventory levels, processes, etc., that organizational performance improves. This research explores the antecedents of high levels of supply chain visibility from a resource-based theory perspective across five different external supply chain linkages. We find that the level of visibility across these linkages differs considerably based on various contributing factors which are both technology and non-technology based. Using resource-based theory, we identify those factors that can give a sustainable competitive advantage to a supply chain linkage through a “distinctive” or high level of visibility.     

Practices and strategies for sustainability-related risk management in multi-tier supply chains

This study investigates how sustainability-related risks are managed in multi-tier supply chains. It focuses on the strategies and practices that companies use to manage sustainability-related risks and how these differ between supply chains and supply chain tiers. We use a multiple-case study with 25 companies forming 5 multi-tier supply chains. As a result of this study, we present a conceptual framework for sustainability-related risk management practices in multi-tier supply chains and apply it empirically by defining sustainability-related risk management profiles for the case supply chains. We show that in multi-tier supply chains, companies need direct and indirect collaboration and direct and indirect monitoring practices for managing sustainability-related risks emanating from not only their first-tier suppliers but also lower-tier suppliers. Our framework helps purchasing and supply chain managers understand the dimensions of sustainability-related risk management in a multi-tier setting and develop strategies and practices for mitigating and managing those risks. We also empirically show the challenge of extending sustainability-related risk management practices beyond first-tier suppliers due to the different practices in different supply chain tiers.     

An empirical investigation into supply chain vulnerability

A growing number of academicians and practitioners have put supply chain risks on their agendas, particularly triggered by a recent series of catastrophic events that have disrupted economies and supply chains around the globe. Given the increasing awareness of this important topic, the purpose of this research was to study supply chain risks in more detail and to investigate the relationship between supply chain vulnerability and supply chain risk. Responses from 760 executives from firms operating in Germany reveal that supply chain characteristics such as a firm's dependence on certain customers and suppliers, the degree of single sourcing, or reliance on global supply sources are relevant for a firm's exposure to supply chain risk. Overall, this research represents the first large-scale investigation of this important relationship and provides a finer understanding of the antecedents of supply chain vulnerability.     

Structural drivers of upstream supply chain complexity and the frequency of supply chain disruptions

A great deal of research has focused on supply chain risk management, but the question “Which supply chain characteristics increase the frequency of supply chain disruptions?” has not received much attention from empirical research. This is a relevant question, because firms seek stability in their operations, and therefore managers need to know how the structure of their supply chains affects the occurrence of disruptions. The present study addresses this issue with a specific focus on upstream supply chain (supply-side) disruptions. Drawing on the literature on supply chain complexity, we devise and test a model that predicts the frequency of supply chain disruptions based on a multi-dimensional conceptualization of upstream supply chain complexity. Not only do the empirical findings suggest that all of the three investigated complexity drivers – horizontal, vertical, and spatial complexity – increase the frequency of disruptions, but also that they interact and amplify each other's effects in a synergistic fashion.     

The impact of bullwhip on supply chains: Performance pathways,control mechanisms,and managerial levers

Even though few empirical studies have tried to actually explicate the relationship between the bullwhip effect and performance of the supplier firm, there exists a common perception for over 30 years among both practitioners and academics that the bullwhip effect naturally results in decreased firm profitability. Anecdotal evidence further suggests that this decline in profitability arises from a decline in operational performance. However, the results of our study, which empirically examines the bullwhip effect across supply chain partners through an analysis of 383 actual customer base-supplier dyads, challenge this commonly held position by suggesting that while traditional bullwhip often yields reduced ROA, it ultimately has no relationship with the firm's operating margin. Additionally, our results also call into question whether or not production coordination between customers and suppliers can minimize the need for inventory and capacity buffers, which are the two commonly utilized methods for battling the bullwhip effect. Thus the relationship between bullwhip and firm performance is far more nuanced and complicated than previously believed. We also show how the managerial bullwhip levers of coordinating production across supply chain partners, or deploying inventory and capacity buffer control mechanisms, can help maximize a firm's performance along different dimensions.     

Investigating the value of information sharing in multi-echelon supply chains

Under the structure of multiple business entities, supply chain management (SCM) offers the external and internal integration of business processes in enterprises. The most important objective of SCM is to enhance the supply chain performance such as reinforcing the service level and increasing profit as well as reducing order cycle time and inventory. In recent years, due to the advancement of information technology, enterprises can manage the product flow and the information flow via economical and efficient mechanisms. The well-organized information sharing can enhance the supply chain performance and allow enterprises to refine their strategies of supply chain in order to maximize their profits. The previous studies pointed out the positive effect of information sharing on the efficiency of supply chain. However, relatively little literature focuses on the performance analysis for multi-echelon supply chain with various information sharing scenarios. By using the simulation technique, this paper models different scenarios of information sharing, and further analyzes the impacts of information quality on multi-echelon supply chain performance. In addition, this paper employs Data Envelopment Analysis (DEA) to integrate multiple performance measures to ensure the information sharing scenarios with enhanced performance.     

Drivers and outcomes of open-standard interorganizational information systems assimilation in high-technology supply chains

In recent years, firms in high-technology supply chains have established internet-based electronic linkages with their trading partners. As a result, they have improved their ability to coordinate and synchronize shared business processes by using more complete, accurate, and timely information. These electronic linkages are based on open-standard interorganizational information systems (OSIOS), which are fundamentally different from traditional electronic data interchanges. OSIOS capture not only the technical specifications for data interchange but also the sequential steps for the execution of shared business processes. Because OSIOS are still at an early diffusion stage, it remains unclear why firms would assimilate such an innovation and whether assimilation provides firms any benefits. In this research, we develop a framework grounded on the economics of standards, institutional theory, and strategic interorganizational information systems literatures to investigate the drivers and outcomes of OSIOS assimilation in a focused context. In order to test our hypotheses based on this framework, we used data from a high-technology supply chain and employed econometrics techniques. We found that both competition asymmetry across supply chain echelons and OSIOS assimilation within supply chain echelons predict individual firms’ OSIOS assimilation. The results also suggest that firms’ supply chain dominance is both a driver and an outcome of OSIOS assimilation, highlighting a mutually reinforcing process. In addition, our study reveals boundary conditions of the hypothesized relationships. The use of multiple theoretical perspectives, a unique dataset, and innovative statistical techniques to investigate OSIOS assimilation in high-technology supply chains contributes to the body of knowledge in both the supply chain management and management of information systems disciplines.     

Barriers to supply chain information integration: SMEs adrift of eLands

The literature extols the potential benefits of supply chain integration and the crucial role of integrated eBusiness to deliver those benefits. However, adoption of eBusiness in supply chains has been slower than expected, particularly in small to medium sized enterprises (SMEs). This paper reports findings of a longitudinal study of four supply chains in different sectors over a 4-year period. Specifically it examines the barriers to adoption of eBusiness technologies and therefore to achievement of integrated information in supply chains. Differences between firms in supply chains and between supply chains are examined. The study reveals disparity between existing and planned use of eBusiness by larger downstream firms compared to upstream SMEs. The SMEs are cautious, only planning to invest in eBusiness if dominant downstream customers force them; however, they do not appreciate the full benefits to be gained from eBusiness adoption. The downstream larger businesses are forging ahead with eBusiness in ‘eIsolation’ and are not providing supply chain leadership. They are creating eLands with SMEs adrift of them.     

Concentrated supply chain membership and financial performance: Chain- and firm-level perspectives

This study reports evidence that concentrated 3-firm supply chains achieve superior financial performance, and that supply chains’ financial performance varies systematically with measures of chain concentration and chain duration. Results from firm-level analyses suggest that the profitability benefits of supply chain relationships are captured predominantly by downstream chain members, whereas cash cycle benefits are realized throughout the supply chain. Firm-level tests also reveal that chain members’ financial performance varies systematically with measures of downstream bargaining power, downstream relationship duration, and degree of supply consolidation. The study's chain- and firm-level analyses employ data extracted from sample firms’ publicly available financial reports, including their major customer disclosures under Statement of Financial Accounting Standards Nos. 131 (1997) and 14 (1976).     

Levels of strategic purchasing: Impact on supply integration and performance

The growing importance of supply chain management has led to an increasing recognition of the strategic role of purchasing, which has recently evolved and expanded from “buying” to “procurement” and “supply management”. In this study, we chart our sample firms’ advance in strategic purchasing, characterized by the strategic focus, strategic involvement of the purchasing function and the status and visibility of the purchasing professionals, into three stages.This study provides strong empirical support for the importance of strategic purchasing by showing that, by moving towards the more advanced stages, firms at the nascent stage of strategic purchasing can achieve better supply integration, a second-order construct composed of four facets of relational, process, information, and cross-organizational team integration. Our analyses further reveal that strategic purchasing can have a profound impact on supply chain performance for both buyer and supplier firms.     

The frontiers of eBusiness technology and supply chains

This article is an Introduction to this Special Issue on “eBusiness and Supply Chain Management.” It also provides a vision for eBusiness and supply chain for the future.     

The impact of supply chain integration on performance: A contingency and configuration approach

This study extends the developing body of literature on supply chain integration (SCI), which is the degree to which a manufacturer strategically collaborates with its supply chain partners and collaboratively manages intra- and inter-organizational processes, in order to achieve effective and efficient flows of products and services, information, money and decisions, to provide maximum value to the customer. The previous research is inconsistent in its findings about the relationship between SCI and performance. We attribute this inconsistency to incomplete definitions of SCI, in particular, the tendency to focus on customer and supplier integration only, excluding the important central link of internal integration. We study the relationship between three dimensions of SCI, operational and business performance, from both a contingency and a configuration perspective. In applying the contingency approach, hierarchical regression was used to determine the impact of individual SCI dimensions (customer, supplier and internal integration) and their interactions on performance. In the configuration approach, cluster analysis was used to develop patterns of SCI, which were analyzed in terms of SCI strength and balance. Analysis of variance was used to examine the relationship between SCI pattern and performance. The findings of both the contingency and configuration approach indicated that SCI was related to both operational and business performance. Furthermore, the results indicated that internal and customer integration were more strongly related to improving performance than supplier integration.     

Balancing priorities: Decision-making in sustainable supply chain management

The need for environmental protection and increasing demands for natural resources are forcing companies to reconsider their business models and restructure their supply chain operations. Scholars and proactive companies have begun to create more sustainable supply chains. What has not been fully addressed is how organizations deal with short-term pressures to remain economically viable while implementing these newly modeled supply chains. In this study, we use theory-building through case studies to answer the question: how do organizations balance short-term profitability and long-term environmental sustainability when making supply chain decisions under conditions of uncertainty? We present five sets of propositions that explain how exemplars in green supply chain management make decisions and balance short and long term objectives. We also identify four environmental postures that help explain the decisions organizations make when dealing with strategic trade-offs among the economic, environmental and social elements of the triple-bottom-line.     

A longitudinal study of supply organizational change

This research examines the high level of change in supply organizations of large North American companies using data collected from 51 large North American supply organizations in 1987, 1995 and 2003. Analysis is supplemented by an additional 55 companies for which data were collected in 1995 and 2003. The availability of longitudinal data from individual companies over a 16-year period provided a unique opportunity to trace changes made to each company's supply organizational structure and their roles and responsibilities. Findings suggest that the respondents made major changes in supply organizational structure, supply chain responsibilities, use of purchasing teams, supply involvement in major corporate activities (MCA) and CPO reporting line, title and background.     

The effect of cross-organizational governance on supply chain resilience: A mediating and moderating model

This study examines the effect of a novel antecedent, namely cross-organizational governance (which can be further divided into contractual and relational governance), on supply chain resilience. Additionally, it explores the mediating and moderating effects of supply chain collaboration and institutional environment, respectively, on the relationship between cross-organizational governance and supply chain resilience. Accordingly, a research model, together with four hypotheses, is constructed based on institutional theory. These are further tested based on data collected from a single-respondent survey of 358 Chinese manufacturing companies. The results reveal that contractual and relational governance have significant positive effects on supply chain resilience; supply chain collaboration plays a partially mediating role and institutional environment plays a moderating role in the effects of contractual and relational governance on supply chain resilience. This study enriches the understanding of the relationships between cross-organizational governance, supply chain collaboration, supply chain resilience, and institutional environment. It also provides a reference for supply chain managers’ decision-making activities.     

Towards an understanding of supply chain quality management

In this paper, we define supply chain quality management (SCQM) to operationalize and understand the effect of increased emphasis on supply chain management on the practice of quality management. We review current research in quality management and identify common themes found in the literature. Key quality management content variables identified are customer focus, quality practices, supplier relations, leadership, HR practices, business results, and safety. We use these variables to propose areas for future research in the field of supply chain quality management.     

Utilizing e-business technologies in supply chains: The impact of firm characteristics and teams

This paper presents findings from an exploratory study that analyzes the drivers and outcomes of e-business technology use in the supply chain. Using a combination of case studies and survey data from a diverse sample of industries, the research examines how industry context, firm characteristics and firm-level strategic resources, such as purchasing teams, influence the exploitation of e-business technologies and the relationship between e-business technology use and firm performance. Based on a synthesis of related literatures from transaction cost economics and the relational view of the supply chain, a two-dimensional framework for e-business technology is proposed with transactional and relational dimensions. However, empirical analysis indicated that transactional technologies can be further subdivided into two factors: dyadic cooperation and price determination. Significant differences were found between the two dimensions in terms of their overall levels of adoption, with dyadic coordination being the most widely adopted. In addition, the development of strategic resources expanded, in particular internal and customer teams, the use of e-business technologies expanded. Purchasing organizational structure and firm size also were positively related to the adoption of transactional e-business technologies. Finally, of particular importance to practitioners, e-business technologies targeted at reducing dyadic coordination costs lead to improved financial performance.     

An examination of ISO 9000:2000 and supply chain quality assurance

ISO 9000:2000 is the latest version of the quality standard developed by the International Organization for Standardization (ISO). The standard aims to evaluate a firm's ability to effectively design, produce, and deliver quality products and services. This version of the standard tries to enhance customer satisfaction by including more top-management involvement and continual improvement. Despite widespread international acceptance, the new standard is surrounded by controversy similar to that surrounding its predecessor, the 1994 version. The literature is clearly divided in its assessment of ISO 9000:2000, which is viewed as either a quality management (QM)-based system or as another paper-driven process that increases risk, uncertainty, and costs. This study utilizes case-based research to address the competing views of the ISO 9000:2000 standard in an attempt to see if a sample of firms in the automotive industry can be positioned within the Miles and Snow [Miles, R.E., Snow, C.C., 1978. Organizational Strategy, Structure and Process. McGraw-Hill, New York] strategic typology. We compare different amounts of quality standard integration and quality assurance in the supply chain of firms with ISO 9000:2000 registration while positing several research propositions.