Re‐Examining Supply Chain Fit: An Assessment of Moderating Factors

Research has emphasized the importance of matching products' characteristics with their supply chain design (i.e., supply chain fit). Fisher ( 1997 ) introduced the notion of supply chain fit and indicated that before developing a supply chain firms must consider the nature of the demand for their products. I expand on the Fisher ( 1997 ) framework by offering a more comprehensive understanding of when it pays off for firms to deploy resources to achieve supply chain fit. I argue that it is simplistic to assume that perfect supply chain fit will always lead to improved financial performance because the benefits generated by perfect supply chain fit might be offset by the resources deployed to achieve that fit. In order to execute this research I use archival and survey data to evaluate the moderating effects of six dimensions of environmental uncertainty (e.g., munificence, market dynamism, technological dynamism, technical complexity, product diversity, and geographic dispersion) on the relationship between supply chain fit and financial performance.     

Motivation and ability in the decision to acquire

This study considers the decision to undertake an acquisition using a framework built around the concepts of motivation and ability to acquire. The paper develops an integrative model to examine how firm characteristics contribute to motivation and ability in predicting the likelihood of an acquisition and draws on two streams of literature to motivate the model: behavioral theory of the firm to explain a firm's motivation to acquire, and absorptive capacity to explain a firm's ability to acquire. Results from a publicly traded sample show that firms failing to meet aspirations (i.e., those with motivation) are more likely to acquire, as are firms that have a high absorptive capacity (i.e., those with ability). Most interestingly, absorptive capacity moderates the influence of performance shortfalls in the decision to acquire and is most important when the motivation to acquire is low.     

Equity-worthiness and equity-willingness: Key factors in private equity deals

While access to private equity funds (PEFs) provides a unique opportunity for firms to set up sturdy growth paths, how PEFs select companies is an unknown process to entrepreneurs and business owners. This study aims to offer insights regarding the private equity market to entrepreneurs searching for external capital. We analyzed a novel dataset of 240 pre-deal negotiations between small- and medium-sized Italian companies and a closed-end fund. Results indicate that the successful closing of a deal depends on more than just the target firm's equity-worthiness (i.e., the company's ability to meet the expectations of a private equity investor). In fact, there is another dimension: the target firm's equity-willingness (i.e., the company's motivations to accept an outside equity investor). We summarize the results of our study by building a 2x2 positioning matrix on the basis of the target firm's equity-worthiness and equity-willingness. This matrix enables entrepreneurs to grasp how private equity investors evaluate their firms.     

Customer and Supplier Portfolios: Can Credit Risks be Managed Through Supply Chain Relationships?

While supply chain risk has been the subject of an ever‐increasing amount of research attention, the importance of credit risk has been less studied, at least by supply chain researchers. Yet, there may be risks inherent within a firm's portfolios of supply chain relationships that are manifested in the credit risk of a firm. Moreover, portfolio characteristics may serve as a signal to the external market regarding these risks. While customer and supplier portfolio characteristics may impact the firm's exposure to risks, the specific issue of how portfolio characteristics relate to credit risk has rarely been examined by supply chain scholars. This research bridges extant works in supply chain management and finance to relate supply chain characteristics to a critical reputational outcome, namely credit ratings. In this research, we utilize a sample of firms that recently underwent an initial public offering to empirically examine the theoretical predictions of Resource Dependence Theory regarding the relationships between different supply chain portfolio characteristics and credit risk.     

Dynamic capabilities and new product development in high technology ventures: An empirical analysis of new biotechnology firms

In industries populated by entrepreneurial high technology firms, the rapid development of new products is viewed as a key determinant of success. Developing a portfolio of new products is necessary to gain early cash flows, external visibility and legitimacy, early market share, and increase the likelihood of survival (Schoonhoven, Eisenhardt, and Lymman 1990). In addition, recent research has shown that new product development improves a firm's ability to raise money through an initial public offering (Deeds, DeCarolis, and Coombs 1997).This paper develops a model of new product development which is tested on a sample of 94 pharmaceutical biotechnology companies. We hypothesize that new product development capabilities are a function of a firm's scientific, technological, and managerial skills. To test this relationship, we develop several firm specific measures in an attempt to triangulate in on the core construct of firm specific new product development capabilities.Some important implications for entrepreneurs/managers of high technology firms flow from our results. First, entrepreneur/managers need to view the choice of geographic location as an important strategic decision which will impact their firm's access to the skilled technical personnel and the streams of knowledge. Our results indicate that a choice location has a significant concentration of similar firms, but the level has not yet reached a point where competition for resources in the local environment offsets any advantages of the location. In the case of biotechnology, this would seem to indicate that the prime locations would be expanding areas such as San Diego, Seattle, and Philadelphia rather then the established locations of Silicon Valley and Boston.Second, as scientific knowledge plays an ever more important role in a firm's success the quality of the firm's scientific team is a critical ingredient in a firm's new product development capability. But how do you evaluate the quality of scientific personnel? Our results indicate that there is a strong positive relationship between the impact—as measured by citations—of a team's prior research in the academic community and the productivity of that team in a commercial research laboratory. Therefore, the judgement of a scientific field, captured by citations or perhaps expert judgement, should prove to be a useful tool when evaluating personnel for a firm's research team.Third, the results from our measures of CEO experience and the percentage of the top management team with a Ph.D. are interesting. As expected the prior experience of CEO in managing a commercial research facility enhances a firm's new product development capabilities. However, results for our top management team variable appears to indicate that the over reliance on technical personnel in the management of the organization detracts from the product development process. Taken together these results seem to imply that it is important that the leadership of the organization have knowledge of and experience in managing the new product development process, but that diverting the firm's scientific personnel's energies away from the laboratory and into the management of the organization maybe counter-productive. Therefore, what a high technology venture appears to need is leadership that understands and has experience in the new product development process, but which is separate and distinct from the scientific team. This type of leadership keeps the scientific team focused on research and development, and out of the boardroom.     

Categorically right? How firm-level distinctiveness affects performance across product categories

In their pursuit of “optimal distinctiveness,” firms need to simultaneously adhere to norms and stand out from the competition. Using longitudinal data from Amazon Launchpad, an online B2C marketplace for entrepreneurial products, we offer a multi-level perspective on optimal distinctiveness from a consumer goods market in which firms are active across different and heterogeneous product categories. Arguing along categorization, organizational identity, and the fit with audiences' theory of value, we challenge the assumption that firm-level distinctiveness, i.e., the distinctiveness of a firm's organizational identity and category claims, delivers equal benefits to all products it offers and showcase the decisive role of product category context. In product categories that share less overlap with other categories and thus occupy a more distinct position in the classification system, products offered by firms with high firm-level distinctiveness benefit, whereas in product categories that share frequent relations to other categories and thus occupy a non-distinct position, products do not benefit at all. This offers researchers and managers alike a new and more nuanced perspective on firm-level distinctiveness: It is not invariably efficient in addressing audiences once the “optimal” level is found, but requires careful consideration of both the firm-level appeal and the product category in which a firm seeks to operate. Firm-level distinctiveness provides firms with the means to increase the differentiation of their own products, yet this effect is most meaningful in product categories with an increasingly distinct position.     

Exploring Supply Managers' Intrapreneurial Ability and Relationship Quality

This article examined the degree to which a supply manager's intrapreneurial ability influences the quality of individual-level relationships with internal customers and the supplier's account executive. The moderating influence of the buyer's firm-level commitment to the supplier and how these relationships subsequently impact supplier performance were explored. The study assessed the supply manager's intrapreneurial ability using survey data gathered from 110 supply managers across a variety of industries. In key supplier relationships, a supply manager's intrapreneurial ability positively influences the quality of internal and external relationships. The firm's commitment to the supplier weakens the relationship between intrapreneurial ability and relationship quality. The findings highlight the value of individual skills to enhance relationships The ability to behave intrapreneurially shapes the quality of internal and supplier relationships. However, only the supply manager's relationship with the supplier's account executive is related to supplier performance. By examining the impact of intrapreneurial ability on individual-level relationships with internal customers and supplier's account executive, a more comprehensive view of business-to-business relationship management in the supply chain is gained.     

SUPPLY CHAIN STRATEGY FOR NASCENT FIRMS IN EMERGING TECHNOLOGY MARKETS

The extant literature provides sound guidance for applying appropriate supply chain strategies to address conventional market structures and supply chain objectives. However, our knowledge of the unique objectives, characteristics, and elements of supply chain development by nascent technology firms in new markets they have helped create is more limited. We outline the strategy for this “emergent” phase of a firm's development of their supply chain. This strategy emphasizes establishing market legitimacy and a basic structural foundation through a core of strong collaborative relationships. The strategy also maximizes organizational flexibility and iterative market intelligence gathering through continuous experimentation with potential markets and through potential partners. The strategy is contrasted with extant supply chain strategies and implications and directions for future research are offered.     

Quantifying Sources of Risk in Global Food Operations and Supply Chain

The food industry plays a significant role in food supply. However, it is increasingly facing a significant number of risks to tackle. This article provides insight into sources and quantification of risk, which can restrict food operations and supply chain performance. Certainly, risks imposed by today's constantly changing global environment makes it imperative for food and agribusiness firms to develop purposeful proactive and predictive risk management for their global supply chains. We proposed the analytic hierarchy process (AHP) model to analyze sources of risks attached to the focal firm's global food operations and supply chain. The identified risks were from a review of relevant literature, expert opinions from the focal firm supply chain C‐level executive, and consultants in the food industry. We grouped the identified risks into seven categories and discussed the risk mitigation strategies. We validated the proposed model using a case study involving a focal food and agribusiness firm with global presence. © 2016 Wiley Periodicals, Inc.     

On tariff changes and firm-production evolution: insights from Turkish manufacturing

We contribute to the yet limited evidence on the relationship between trade liberalisation and a firm's product mix and diversification strategies for an emerging economy, Turkey. Lower import barriers foster firms’ specialisation in their core products. A drop in import tariffs, indeed, enhances a firm's propensity to drop fringe varieties and favours production growth of core products. More importantly, it favours firms’ specialisation in more sophisticated goods. Export tariff cuts, instead, by relaxing competitive pressure at home and lowering the cost to export, only reduce the firms’ incentive to innovate.     

What is the Right Supply Chain for Your Shopper? Exploring the Shopper Service Ecosystem

The emergence of shopper marketing represents a major strategic force in consumer goods branding and retailing, and poses significant challenges to pre existing supply chain thought that most scholars have yet to address. In order to address the marketing and supply chain challenges presented by shopper marketing initiatives, scholars from both disciplines can find common ground by focusing on the shopper instead of consumers or products. The issue is no longer one of matching a supply chain to a product. Instead, marketers and supply chain managers need to ask, “What's the right supply chain for our shopper?” The shopper service ecosystem framework developed in this paper brings together the service dominant logic of marketing with the service ecosystem perspective in supply chain management. Future research frontiers suggest research directions that bridge the marketing and supply chain disciplines to create a multidisciplinary foundation for future research in the shopper marketing realm.     

Entrepreneurial proclivity: its environmental conditions and growth consequences

To contribute to the entrepreneurial marketing (EM) literature, this study investigates how business unit growth relates to environmental risks and rewards (i.e., environmental dynamism and market growth rate) and three facets of entrepreneurial proclivity (i.e., innovativeness, risk-taking, and proactiveness). The authors find that perceived environmental dynamism has a direct and positive influence on strategic business units' innovativeness and proactiveness. Moreover, this study explores the interplay between the risk and reward facets of the market environment and reveals that firms are most likely to adopt EM strategies in a high-growth, highly dynamic business environment. The results also show that whereas the industry growth rate promotes a firm's market expansion, but not market sustention, the firm's innovativeness and proactiveness positively influence both market expansion and sustention.     

Creating strategic change in procurement orientation: A strategy for improving competitiveness

The changes in the business environment with technological breakthroughs and crumbling national barriers are pressuring firms to become more efficient and entrepreneurial in order to compete in globalized markets. To meet these pressures is no simple task. Far-sighted exeutives are responding by initiating wrenching revisions of their firm's competitive postures, internal controls and corporate cultures. All these changes are forcing top management to alter its expectations of its purchasing organization. No longer can firms create, design, launch, and provide viable products throughout their life cycles without regard to the supply aspects of the material and components that go into them. The paper proposes a model for achieving a purchasing orientation change strategy, and argues the need for the purchasing organization to be strategically oriented to improve the company's competitive posture in the marketplace.     

SUPPLY CHAIN PROCESS INTEGRATION: A THEORETICAL FRAMEWORK

The current study was undertaken to further understanding of supply chain process integration. It is suggested that supply chain integration, the practice of realigning firms' operating structures, should be understood from an internal‐external perspective and a process view. Drawing upon four theories—Strategy‐Structure‐Performance framework, the resource based view of the firm, transaction cost economics, and social network analysis—and combining industry inputs, a theoretical framework of supply chain process integration is developed. It is argued that a firm's strategic priorities are key factors of supply chain process integration. Superior performance is likely to be achieved when necessary supply chain capabilities are developed through supply chain process integration.     

Supply Chain Strategy in Nascent Markets: The Role of Supply Chain Development in the Commercialization Process

Research on supply chain strategy has emphasized the importance of ensuring the supply chain for a product is appropriately aligned with the characteristics of that product and the market for which it is intended. The current study synthesizes theory from supply chain management, entrepreneurship, and marketing, and examines the results from a case study of multiple supply chains that were formed to launch products based on disruptive innovations to propose new theoretical perspectives on the development of supply chain strategy in this unique market context. The results suggest that legitimacy and value proposition definition and refinement are the initial primary drivers of supply chain strategy and the specific means by which the initial supply chain is formed and structured to achieve successful commercialization. These findings advance theory in both supply chain management and entrepreneurship as well as provide insight to firms seeking to commercialize potentially disruptive innovations.     

How Environmental Management Competitive Pressure Affects a Focal Firm's Environmental Innovation Activities: A Green Supply Chain Perspective

Recently, environmental management offers firms a source of competitive advantage in the marketplace. The development of environmental innovations is critical to the success of today's firms. Drawing on the Schumpeterian perspective of competition, this research examines how the perception of rival firms' green success influences a firm to pursue and produce environmental innovation through its green supply chain integration activities. Using survey data from 230 firms, a conceptual model is developed and tested using structural equation modeling. We find that the firms in our sample do perceive pressure from their competitors' success in environmental management activities, and thus take supply chain action to pursue integration activities. By differentiating incremental and radical environmental innovation, this study also reveals the role of three dimensions of green supply chain integration (internal, supplier, and customer integration of green product development) on incremental and radical environmental innovation separately. Specifically, findings suggest that green supply chain integration has a positive impact on developing incremental environmental innovation, while only customer integration has a significant positive impact on developing radical environmental innovation.     

The causes of product deletion in British manufacturing companies∗

Increasing technological and market changes present companies with business opportunities which demand that firms match their capabilities to these changes. In short, the greater the change in the firm's environment, the greater the need to develop the product mix in consonance with the environment. This need for the development and redevelopment of the product mix—which is the essence of product policy—has resulted in a continual interest on the part of both academics and practitioners in innovation and new product development (NPD) (Rothwell et al. 1974, Gardiner and Rothwell 1985, Cooper 1979, 1984, Johne and Snelson 1987, Parkinson 1980). Yet to equate product mix change with product proliferation leads to an incomplete understanding of product policy which eclipses the crucial tasks of identifying and withdrawing products which no longer contribute to the company's goals. This article addresses the latter issue by discussing the way in which products like these come under the scrutiny of management and it explores the various triggers of product deletion.     

Risk and the technology content of FDI: A dynamic model

This paper incorporates risk into the FDI decisions of firms. The risk of FDI failure increases with the gap between the South's technology frontier and the technology complexity of a firm's product. This leads to a double-crossing sorting pattern of FDI—firms of intermediate technology levels are more likely than others to undertake FDI. It is with the attempt to relax the upper bound of the technology content of FDI, we argue, that many FDI policies are created. The theory's predictions are consistent with the empirical patterns of FDI in China by US and Taiwanese manufacturing firms.     

A longitudinal study of the relationship between export activity and innovation in the Spanish firm: The moderating role of productivity

Does innovation lead the firm to export more products, or does a firm's export propensity induce it to innovate? How does a firm's productivity level change this relationship? After confirming that exporters develop more innovations than non-exporters, this study attempts to answer these questions by studying two effects. First, we analyse the impact of innovation on a firm's export activities while addressing potential endogeneity concerns. Second, we examine the impact of export activity on a firm's innovation performance. We must address both questions when considering firm productivity. To this end, we conduct a longitudinal analysis of 14,142 observations of an annual average of 1767 Spanish firms within the manufacturing sector during the period from 2001 to 2008. The results suggest that the self-selection hypothesis adequately explains the observed phenomena. That is, innovation induces firms to increase their export activities. This finding is robust to endogeneity. Nevertheless, firms do not experience any learning-by-exporting effects on the obtaining of product or process innovations. Productivity does not modify any of these relationships.