Sustainable supply chain management in “Base of the Pyramid” food projects—A path to triple bottom line approaches for multinationals?

Conducting business operations at the Base of the Pyramid (BoP) have necessitated the need for multinational corporations (MNCs) to involve poor communities in production processes including management of critical supply chains. However, current research on the interface between supply chain management and BoP business operation is lacking. In analyzing three cases of BoP projects in the food industry this study addresses the question of how sustainable supply chain management (SSCM) applied to BoP projects can help MNCs to achieve their sustainability goals. Findings indicate that applying SSCM to BoP projects can complement economic, social, and environmental dimensions of sustainability. In particular, the BoP projects analyzed show viable paths for integrating the social domain of sustainability with general SSCM theory and practice. From the perspective of international business research, the findings help to link sustainability activities to MNC operations at the BoP. Accordingly, further research is needed to advance integration of these two research streams.     

Identifying Key Success Factors for Social Enterprises Serving Base‐of‐Pyramid Markets through Analysis of Value Chain Complexities

There are people in this world who have little or no access to basic needs and they struggle financially, living on less than a handful of dollars a day. A better understanding of how to supply/serve the world's poor is needed. In this paper, through the lens of Porter's value chain framework we investigate the challenges and opportunities social enterprises face in base‐of‐pyramid (BoP) markets based on secondary data on 23 organizations. Our contribution is twofold: First, we analyze value chain complexities for the social enterprise based on the value creation role (consumer, coproducer) and income level (poverty, extreme poverty) of the local population. We find that nature of customers’ requirements varies across customer segments in the BoP markets and social enterprises face unique challenges in fulfilling such differentiated demand patterns. Second, we develop an affordability–accessibility framework that helps to identify the situations that may be favorable/unfavorable for social enterprises to meet the challenges in BoP markets. We make four propositions that social enterprises may use to cope with difficulties in affordability and accessibility. Our findings will be useful for such organizations to understand and design better supply chains for the base of pyramid.     

Despite unethical retail store practices,consumers at the bottom of the pyramid continue to be loyal

Research in the area of retail store loyalty agrees that consumers reward retailers when they are satisfied with its products, services, and its image. Moreover, one would agree that if the retailer engages in unethical practices, the customer would quickly defect and even engage in word of mouth to influence others to defect. But this might not be the case universally. One consumer group that continues to be loyal to a retailer despite widespread unethical practices is the poor. A growing stream of research under the label of bottom of pyramid (BoP) and subsistence consumers has increasingly pointed out the market attractiveness of this segment to multinational companies. These poor consumers are individuals who earn approximately $2 per day. In this paper, we explain the nature of widespread unethical retail practices prevalent amongst the neighborhood retail stores (or kirana as they are referred to in India) that serve the BoP consumer, types of patronage behaviors, and the reasons ‘why’ these consumers continue to support the kirana store. The data for this paper comes from a qualitative study conducted with 58 urban poor consumers in India. This study carries significant implications for both domestic and multinational companies that market fast-moving consumer goods in the BoP market.     

Are supply-chain relationships more influenced by buyer-supplier relationships or the business environment of the country itself? Evidence from the ‘China-Australia’ trading relationship

In doing business with China, poor supply chain performance is reported as being caused by either poor relationships between firms in China or the business environment in which firms in China have to operate. This research paper explores the relative importance of these two factors for food supply chains from Australia to China. Results are based on surveys of 84 importers, wholesalers and retailers in China and 22 Australian exporters and wholesalers. They show that the country itself had a greater influence than firm to firm relationships. Firms exporting food to China should therefore keep supply chains as short as possible to minimize the uncertainties associated with the business environment.     

Testing the Negative Effects of Time Pressure in Retail Supply Chain Relationships

In today's rapidly evolving business environment, retailers must develop highly responsive supply chains in order to satisfy constantly changing market demands. One approach to achieving this objective is to leverage the capabilities of other supply chain members to achieve cycle time compression of key business activities. However, when viewed through the theoretical lenses of Social Exchange Theory and Reciprocity, a potential conflict exists between facilitating supply chain responsiveness and maintaining close retailer–supplier relationships. The purpose of this research is to quantitatively test how the imposition of time pressure affects key elements of retail supply chain relationships. Scenario based experimental methodology was utilized to test the effects of time pressure on two distinct types of retailer–supplier relationships. Results of this research offer evidence to support the notion that time pressure can reduce collaborative behaviors, relationship loyalty, and relationship value in critical retailer–supplier relationships.     

Examining Antecedents to Supply Chain Security Effectiveness: An Exploratory Study

In recent years there has been increasing emphasis on managing risk and security in supply chains. Despite this emphasis, there have been relatively few empirical studies dealing with this issue. In an attempt to partially address this lack of empirical research, the primary purpose of this study was to explore the relationship between security management practices and the perceived effectiveness of supply chain security. With a resource‐based view of the firm and supply chain integration as theoretical underpinnings, the study utilized survey data to test propositions derived from the security literature. Internal and external integration efforts, a nodal planning focus, and proactive motivations related to security measures were found to be positively related to security effectiveness. The article concludes with implications for security stakeholders including suggestions for future research.     

Supply Chain Management and Retailer Performance: Emerging Trends, Issues, and Implications for Research and Practice

In an environment with increasing competition and a growing need for operational efficiencies and customer orientation, retailers are looking beyond their organizational boundaries to develop and leverage the resources and capabilities of their supply chain partners to create superior value and competitive advantages in the marketplace. In this article, the authors discuss how three recent trends—global sourcing practices, multichannel routes to market, and relationship-based innovation—are transforming the retail landscape and leading to a variety of performance improvements with regard to brand image, reputation, sales and profits, innovation, and relationships. For each of these major trends, this article highlights key issues, identifies relevant literature, and offers propositions for further research.     

基于多智能代理的供应链协同管理

供应链是由供应商、制造商、分销商等企业实体组成的一个复杂网络,其中企业之间的协作问题是供应链管理的关键。近年来,人工智能领域的多代理技术开始应用到供应链管理中,该技术将供应链看作是由一组智能代理组成的系统,其中每个智能代理负责一项或多项任务,并在任务执行过程中不断与其它代理进行交互。     

An Empirically Derived Framework of Global Supply Resiliency

In today’s global business environment, supply chains have increased in both length and complexity. This increase in length and complexity coupled with a focus on improving efficiency, such as lean manufacturing practices, may lead to higher levels of supply chain risk where the likelihood of a disruption severely impacting supply chain performance increases. Resilient supply chains have been touted as a means to reduce the likelihood and severity of supply chain disruptions. However, there is little empirical evidence relative to the factors that contribute to or detract from supply resiliency. Using systems theory and the resource‐based view of the firm as the theoretical underpinnings, this study provides an in‐depth systematic investigation of supply resiliency. Adopting a theory‐building approach based on a multi‐industry empirical investigation, this study derives empirical generalizations linking 19 supply chain characteristics to supply resiliency. The study culminates in a framework that could be used to assess the level of resiliency in a supply base. Building on this framework, the study also provides a supply resiliency matrix that can be utilized to classify supply chains, or supply chains segments according to the level of resiliency realized. This article concludes by proposing several future research directions and issues that may be investigated in more detail.     

International Comparisons of Supply Chain Management in Grocery Retailing

This paper discusses a neglected area of international retailing research, namely an international comparison of supply chain management practices. The focus of this research is on the grocery industry sector and the comparative analysis is between US retailers and their counterparts in parts of Europe. The research shows that the logistical environment differs markedly between and even within countries. The amount of stock held in the grocery supply chain varies from over 100 days in the US to 29 days in the UK. The main reasons for these differences can be attributed to the intensity of price competition, conflict rather than collaboration between suppliers and retailers, commodity purchasing and holding of promotional stock and the varying rates of adoption of information technology, especially EDI usage. No two countries are the same, however; and range of factors such as geography and distribution ‘culture’ will require the international rnarketeer to assess all these factors in developing a logistics strategy for different country markets.     

供应链管理实践、供应链敏捷性对企业绩效的影响研究

市场竞争逐渐由企业间的竞争转化为供应链间的竞争,供应链管理日益受到关注。文章采集163家企业信息进行实证分析,探索供应链管理实践和供应链敏捷性对企业绩效的影响与作用机制。研究结果表明：供应链管理实践对企业绩效具有直接正向影响,供应链管理实践对供应链敏捷性具有直接正向影响,供应链敏捷性对企业绩效具有直接正向影响且在供应链管理实践与企业绩效之间发挥部分中介作用。     

Equilibrium in supply chain network with competition and service level between channels considering consumers' channel preferences

This paper considers a dual-channel supply chain network consisting of multiple competing manufacturers, multiple competing retailers and multiple demand markets. Each manufacturer produces and distributes his products via direct e-commerce channel along with traditional physical channel. The manufacturers also provide services for the consumers in both channels, while the retailers only offer offline services to the consumers. On this basis, a dual-channel supply chain network equilibrium model with pricing and service decisions are established based on variational inequality theory. Nash equilibrium solutions are obtained by modified projection and contraction method. Combined with numerical examples, we analyze the impact of three critical factors on the equilibrium states and profits. Some interesting managerial insights are derived. We find that the profits of the manufacturers decrease (increase) in the raw material conversion ratio under single channel case (dual-channel case), while the increase of the raw material conversion ratio always benefits the retailers and the whole dual-channel supply chain network; the service level in each channel is positively correlated with its transaction volume. There are significant inconsistencies among the best combinations of cross-channel price coefficients between two channels for the manufacturers, the retailers and the whole dual-channel supply chain network. The same equilibrium decision (service level, price) or profit may exhibit the opposite changing trend with respect to cross-channel price coefficients under two cases of active e-commerce transaction and inactive e-commerce transaction. When the introduction of e-commerce channel can bring more profits for the whole dual-channel supply chain network, the manufacturers should provide reasonable allocation schemes of profit increment for the retailers to satisfy their participation constraints.     

Finding the True Voice of the Customer in CPG Supply Chains: Shopper‐Centric Supply Chain Management

Demand and supply integration is the subject of increasing scholarly attention. The theoretical emphasis on combining market and supply chain data as the basis for strategic and operational decision making is particularly relevant in the context of Consumer Packaged Goods (CPG) supply chains, and offers the basis for advancing our understanding and knowledge in this field. Point‐of‐sale (POS) data are commonly used as the demand signal in CPG supply chains. Using empirical data, this research demonstrates that POS data can be influenced by nondemand factors. We present a number of issues raised by this finding.     

INTERORGANIZATIONAL CITIZENSHIP BEHAVIORS: AN EMPIRICAL STUDY

Exchanges among firms operating in supply chains are complex due to relational embeddedness, i.e., the extent to which relationships, rather than economic rationality, govern firm‐to‐firm interactions. For many years interfirm relationships were assumed to be best managed via coercive tactics. However, for the last two decades much attention has been given in the literature to more relational forms of governance, and recent supply chain research examining relationship nature, magnitude, and type implies the need for an alternative symbiotic explanation for supply chain relationship effectiveness. To address this void in the literature, this article introduces the concept of interorganizational citizenship behaviors (ICB's). Based on a review of literature from multiple business domains, common types of ICB's are identified, and research hypotheses are developed and tested. Future research initiatives and implications for supply chain management practice are also provided.     

Corporate Social Responsibility in the Supply Chain: An Application in the Food Industry

The food industry faces many significant risks from public criticism of corporate social responsibility (CSR) issues in the supply chain. This paper draws upon previous research and emerging industry trends to develop a comprehensive framework of supply chain CSR in the industry. The framework details unique CSR applications in the food supply chain including animal welfare, biotechnology, environment, fair trade, health and safety, and labor and human rights. General supply chain CSR issues such as community and procurement are also considered. Ultimately, the framework serves as a comprehensive tool to support food industry practitioners and researchers in the assessment of strategic and operational supply chain CSR practices.     

Corporate Social Responsibility: Its Economic Impact and Link to the Bullwhip Effect

This paper examines the economic impact of implementing Corporate Social Responsibility (CSR) in the supply chain operations of multinational corporations (MNC). Because they have global supply chains in emerging markets, MNCs face certain operational challenges. For example, unethical operations often result in a huge loss to MNCs in the long run, even though their initial cost seems to be low. In this paper, we extend the Bullwhip Effect theory in supply chain management to the ethical operations context, and define and evaluate a special Bullwhip Effect due to Unethical Operations (BEUO). Using economic data from various sources including Ford, Toyota, and GM in the auto industry, we first estimate the indices of BEUO for the three companies and demonstrate the economic necessity for MNCs to incorporate CSR with supply chain operations. We then propose a coherent approach, blending what we term the bottom-up and proactive methods, to achieve such an outcome. The bottom-up approach requires MNCs to switch their focus on stakeholders, shifting from shareholders to consumers and workers, and on decision levels from public relationships to supply chain operations. The proactive approach recommends initializing specific CSR operations to mitigate the negative impact of BEUO. Both theoretical analysis and case studies are conducted to evaluate our developed propositions that MNCs adopting the proposed CSR operations will in the long run achieve better economic performance. Recommended actions for implementation, based on best practices, are also presented.     

Developing strategic partnerships in the supply chain: a practitioner perspective

The idea of managing supply chain partnerships for competitive advantage is receiving considerable interest amongst both academic researchers and industry executives. This article describes some current practices in several industries with respect to managing supply chain relationships. Focus group interviews and multiple case studies were conducted to gain insights into practitioners’ experiences. Six salient content themes are identified and structured into a managerial framework, to provide guidance to the increasing number of organisations that are now seeking to manage integrated supply chains.     

The Struggle is Real: Insights from a Supply Chain Blockchain Case

Despite the anticipated benefits and the numerous announcements of pilot cases, we have seen very few successful implementations of blockchain technology (BCT) solutions in supply chains. Little is empirically known about the obstacles to blockchain adoption, particularly in a supply chain's interorganizational setting. In supply chains, blockchains' benefits, for example, BCT‐based tracking and tracing, are dependent on a critical mass of supply chain actors adopting the technology. While previous research has mainly been conceptual and has lacked both theory and empirical data, we propose a theory‐based model for interorganizational adoption of BCT. We use the proposed model to analyze a unique in‐depth revelatory case study. Our case study confirms previous conceptual work and reveals a paradox as well as several tensions between drivers for and against (positive and negative determining factors, respectively) of BCT adoption that must be managed in an interorganizational setting. In this vertical context, the adoption and integration decision of one supply chain actor recursively affects the adoption and integration decisions of the other supply chain actors. This paper contributes midrange theory on BCT in supply chain management (SCM), future research directions, and managerial insights on BCT adoption in supply chains.