INTERORGANIZATIONAL TIME‐BASED POSTPONEMENT IN THE SUPPLY CHAIN

This paper presents the results of empirical research on the use of time‐based postponement in a supply chain context using data collected from two manufacturers, a distributor, and a retailer. The analysis shows that implementing postponement at the firm level can result in the supply chain carrying more inventory. In order to achieve its full potential, postponement needs to be implemented across organizations in the supply chain.     

AN EMPIRICAL EXAMINATION OF RELATIONSHIP MAGNITUDE

Based upon a review of the extant literature, it is proposed that the structure of an interorganizational relationship is composed of relationship type and the under‐researched construct of relationship magnitude. Specifically, it is hypothesized that relationship magnitude, a second order construct composed of trust, commitment, and dependence, affects relationship type, which affects the perception of value of the relationship. The results of a survey analyzed through structural equation modeling support these hypotheses.     

AN EMPIRICAL EXAMINATION OF SUPPLY CHAIN PERFORMANCE ALONG SEVERAL DIMENSIONS OF RISK

This research operationalizes several supply chain risk sources and investigates their relationships with supply chain performance. The responses of 760 executives from firms operating in Germany reveal that demand side and supply side risks do have a negative impact on performance whereas regulatory, legal and bureaucratic risks, infrastructure risks, as well as catastrophic risks do not. The analysis and results augment previous research regarding the impact of supply chain risks on the operational performance of firms and shareholder value and provide a detailed analysis of supply chain risk sources as contextual variables in strategic decision‐making.     

Holding up the mirror: The impact of strategic procurement practices on account management

Procurement has grown up. It is now a strategic business function that increasingly recognizes the importance of strategic supplier relationships, a reflection of key account management. It is time to assess the impact of this shift on the profession and practice of account management. This paper examines customer adoption of strategic procurement and then discusses the implications this has for account managers at the suppliers serving these customers. New techniques are emerging in these special relationships, including the use of psychological contracts and co-measurement and monitoring. Perceived fairness will also have a major impact on the customer's view of their suppliers. Account managers must recognize these changes or fall victim to supplier delusion: the belief that they are performing better than they really are.     

Exploring the governance mechanisms of quasi-integration in buyer-supplier relationships

This article deals with quasi-integration governance mechanisms in the context of business-to-business buyer-seller relationships. Based on transaction cost analysis and resource dependence theory, the authors identify four key elements of quasi-integration: legal contract, joint problem solving, joint planning, and collaborative communication. From the perspective of resource dependence theory, the authors examine the effects of interdependence on these four elements. Empirical evidence derived from a study of 398 Chinese companies indicates that (1) the four governance mechanisms of quasi-integration are driven by inter-firm dependence; and that (2) legal contract serves as an important foundation of joint problem solving. In addition, the authors examine the distinct effects of the four elements on two critical exchange outcomes: supplier performance and buyer commitment. Their analysis shows that legal contract, joint planning, and collaborative communication positively affect supplier's performance, while joint problem solving and collaborative communication significantly enhance the buyer's commitment to the relationship.     

Comments on “Unchained from the chain: Supply management from a logistics service provider perspective”

The paper puts in focus the general observation that traditional supply chain management provides a limited view of supply relationships rooted in a conventional industrial logic, focusing on the physical product, chain relationships and sequential interdependencies. The paper contributes to the aim of extending the view of supply chains - unchaining logistics from the conventional chain structure view - by focusing on how such dominating idea structures can in fact delimit our understanding of, in this case, logistics service providers' contribution to well working supply relationships. The article connects to the discussion by suggesting a much more in-depth reasoning what and how a resource independency perspective can contribute to deepen our understanding of logistics and logistical networks.     

An integrated approach to managing extended supply chain networks

In an effort to improve their competitive position in a rapidly changing marketplace, many companies have replaced their traditional supply chains with extended supply chain networks built on a foundation of supply chain collaboration. These extended networks require the use of decision support tools and technologies to improve both operating efficiencies and customer service, but many companies have struggled to realize the expected benefits of these tools and the increased collaboration. This article recommends that companies adopt an integrated strategy of people, processes, and technology to achieve their competitive supply chain goals. Our recommendation is backed by the results of a survey we conducted of senior-level practitioners concerning the importance and challenges of supply chain collaboration. The article concludes with a set of managerial recommendations to improve a company’s collaborative efforts within its supply chain.     

Reconsidering the venture capitalists' “value added” proposition: An interorganizational learning perspective

This study examines the interorganizational relationships among venture capitalists (VCs) and new venture teams (NVTs) for their contribution to long-term improvement in the performance of a venture. Research in (1) learning assistance, (2) NVT dismissal and (3) procedural justice provide important insights into the unique interorganizational relationship that exists among VCs and the NVTs they fund. We found the following: (1) no statistically significant support for strategic information, (2) a negative association for dismissals and (3) positive support for procedurally just interventions. These longitudinal findings suggest important future research on interorganizational relationships.     

Informal interorganizational business relationships and customer loyalty: Comparing Guanxi,Yongo, and Wasta

Based on social exchange theory, this research explores if informal interorganizational business relationships in China (guanxi), South Korea (yongo), and Egypt/Jordan (wasta) affect customer loyalty in a business to business context. A conceptual model hypothesizes interrelationships among three underlying dimensions of informal relationships, reciprocity, affect, and trustworthiness, and with customer loyalty. The hypotheses were tested using survey data gathered from manufacturing companies in China, South Korea, Jordan, and Egypt. Structural equation modeling shows that guanxi, yongo, and wasta are positively related to customer loyalty across all four countries. However, there are some differences in the relationships among the three dimensions. Although reciprocity is positively related to affect in guanxi and yongo, this relationship is not statistically significant in wasta. Further, the items measuring the dimensions of trustworthiness and reciprocity are the same in guanxi and yongo, but these differ from wasta. Thus, managers need to be aware of subtle differences in how informal interorganizational relationships are developed and used in international business to business relationships.     

Channel relationship factors in cross-cultural contexts: Antecedents of satisfaction in a retail setting

Recent meta-analyses of the channels relationship literature show gaps in the research. The current study seeks to fill several of those gaps by examining the effect of cultural characteristics on relational constructs in retail buyer-supplier settings in the U.S. and Japan. The study also investigates the under-researched construct of conflict, and the role conflict plays in mediating relationship satisfaction. Results of the analysis of structural equation models indicate that for the antecedents of conflict, little differences exist between cultures. However, differences in how those antecedents affect conflict and conflict's role as a mediator are elucidated.     

MNE linkages in international business: A framework for analysis

Empirical research demonstrates backward, forward and collaborative linkages between foreign subsidiaries and firms in host economies can have a major impact on the success of the development of these firms’ capabilities and resources. However, there is insufficient conceptualisation of this phenomenon in the international business literature, which has either presented a list of determinants of the occurrence of inter-firm linkages without identifying underlying constructs, focused on aggregate impacts of specific types of linkages or explored individual firm case histories. Such approaches inhibit our understanding of linkages at the firm-level generally and how they impact both local and foreign participants, in particular. Drawing on insights from other disciplines, a framework for analysis and future research is developed in this paper. This framework identifies three underlying constructs that determine the efficacy of linkages. It is argued that potential for firm capability and resource development via foreign–local interaction depends on the scope, quantity and quality of linkages formed. This approach reinforces the notion that particular dimensions of linkages, such as type, depth or duration, cannot be considered in isolation. Further, the paper argues that the relative emphasis on linkage scope, quantity and quality will involve trade-offs between them and maintaining equilibrium between global and local considerations.     

AN INVESTIGATION OF THE VALUE OF CROSS‐DOCKING FOR SUPPLY CHAIN MANAGEMENT

Cross‐docking is the practice of transferring materials from an incoming shipment directly to an outgoing shipment without storing them at the transfer point. This essentially eliminates the inventory‐holding function of a warehouse and can reduce supply chain costs. We investigate the value of one type of cross‐docking in a variety of supply chain environments.     

SUPPLY CHAIN CAPITAL: THE IMPACT OF STRUCTURAL AND RELATIONAL LINKAGES ON FIRM EXECUTION AND INNOVATION

Firms invest millions of dollars annually in developing their supply chains, with the broad goal of increasing their own performance. However, despite the significant resources deployed for supply chain development, the extent to which initiating, maintaining, and managing supply chain relationships contributes to firm success remains unclear. The current article provides conceptual development supporting the valuation of firm‐to‐firm supply chain connections from the perspective of the focal firm. Based on the social network and economics literatures, the article introduces the concept of supply chain capital, which comprises the value of both the structural configuration and relationship content of the firm's supply chain network. Following theoretical development, a non‐exhaustive set of propositions are constructed illustrating multiple ways that supply chain capital can be accrued and exploited for firm‐level benefit. Managerial recommendations for investment in supply chain capital are included, as are future directions for research in the area of supply chain networks.     

What to Expect After the Honeymoon: Testing a Lifecycle Theory of Franchise Relationships

This research examines the evolution of interorganizational relationships in a franchising context. Using U-curve theory, we develop three hypotheses and contrast them with traditional lifecycle theory. Three groups of constructs are affected by lifecycle: cooperation variables, dependence variables, and relationship variables. Four distinct stages emerge, with highest levels of variables in the honeymoon stage, lower levels in routine and crossroad stages, and increasing levels in the stabilization stage. Franchisors should strive for “stability on high levels” before operational realities influence the franchisees. Franchisees’ intermediate lifecycle phases are most critical for the system, since opportunistic behavior and switching are most likely.     

Wearing many hats: Supply managers' behavioral complexity and its impact on supplier relationships

Applying concepts from the behavioral complexity literature ( [Ashby, 1952] and [Denison et al., 1995]) we examine if supply managers' multiple roles (behavioral repertoire) and the ability to shift among these roles (behavioral differentiation) are related to their interpersonal relationships with account executives of key suppliers. A series of interviews identified four roles that are enacted when managing supplier relationships: negotiator, facilitator, supplier's advocate, and educator. Survey data were gathered from 70 matched pairs of supply managers and key suppliers' account executives. Results show that a broader behavioral repertoire is positively related to interpersonal relationship quality but behavioral differentiation is negatively related to interpersonal relationship quality.     

A SUPPLY CHAIN MANAGER SELECTION METHODOLOGY: EMPIRICAL TEST AND SUGGESTED APPLICATION

With the expanding global economy, no managerial position requires a broader set of skills than that of the supply chain manager. Understanding the complexities of filling this vital managerial position, recent conceptual research has called for the development of a tool designed to identify the top candidates for supply chain positions. This research presents a full test of a three hurdle methodology for supply chain manager selection. Empirical results reported here suggest that managers must possess superior general mental aptitude, need for achievement, and adaptability for firms to maximize performance.     

AN INVESTIGATION INTO THE EFFECT OF FULL‐SCALE SUPPLY CHAIN MANAGEMENT SOFTWARE ADOPTIONS ON INVENTORY BALANCES AND TURNS

Supply chain management (SCM) software vendors, analysts, and others claim that firms implementing SCM software stand to benefit by being able to reduce inventory holdings and increase inventory turns. We theorize that full‐scale implementations lead to system‐wide inventory optimization, which in turn leads to cost improvement associated with inventory balances and turns. To examine the question, we develop an analytical model of inventory optimization, then analyze the effects of the model with a numerical experiment, and finally confirm the results with an empirical examination. We find that firm‐wide implementation is significant in explaining improvement in inventory metrics, relative to pre‐implementation metrics for our sample. Our empirical tests indicate that implementing SCM software across only a portion of the firm does not impact inventory metrics, but that the scale of implementation does. More precisely, we find that firms implementing SCM software across the entire company significantly improve both inventory turns and inventory as a percent of revenue relative to partially‐implementing firms and non‐implementers.     

Planned disruption and unintended consequences: Postponement by strategy vs. intervention in the U.S. beer supply chain

Supply chain strategies are used to increase efficiency, save money, or reduce uncertainty and disruption. Disruptions can be unexpected and potentially devastating for supply chains. However, sometimes supply disruptions are built into supply chains using a postponement strategy. When postponement is implemented as a supply chain strategy, it can smooth the flow of goods, provide cost savings, and improve customer experience. When postponement is forced on supply chains via government intervention it can break down the seamless flow of goods and information, causing them to work inefficiently. In this article, we show how intervention through postponement creates unintended consequences that negatively impact beer supply chains and make recommendations to help managers mitigate these consequences. We also address policymakers, who can decrease the likelihood of unintended consequences resulting from regulations they enact—including how to prevent legislating these regulations in the first place.