Modeling beef supply response and price volatility under CAP reforms: The case of Greece

This study examines the supply response of the Greek beef market and the possible effect of the European Union’s Common Agricultural Policy (CAP) on the Greek beef sector during the period 1993–2005. A Generalized Autoregressive Conditional Heteroskedasticity (GARCH) process is used to estimate expected price, and price volatility, while several different symmetric, asymmetric and non-linear GARCH models are estimated. The empirical results show that price volatility and feed price are important risk factors in the supply response function, while the negative asymmetric price volatility that was detected implies that producers have a weak market position. Furthermore, the empirical findings confirm that the annual premium paid by the EU to beef producers had a positive impact on the production level and also, the change of the EU price support regime, after 2006, is having negative effects on beef production level in Greece.     

The impact of coercive and non-coercive forms of influence on trust, commitment, and compliance in supply chains

A major premise in managing channel relationships is encouraging cooperation to achieve the aims of the relational partners. This often requires a balancing act between utilization of influence across the supply chain to motivate decisions, while employing tactics that do not damage the future of the relationship. This paper builds and tests a model of how influence strategies affect relational elements, specifically trust and commitment, which both promote strong inter-firm relationships and act as mediators of joint action, specifically cooperation and compliance across channel partners. Results suggest that coercive strategies are counterproductive in encouraging cooperation and compliance either directly or through relational intermediaries, while non-coercive influence produces positive outcomes and effects on intermediaries. Low levels of coercive influence do appear to generate positive outcomes. Managerial implications and future research based on these results conclude the paper.     

Leadership, the buying center, and supply chain performance: A study of linked users, buyers, and suppliers

With conceptual foundations taken from leadership theory and the resource-based view (RBV), this study examines the influence of transactional and transformational leadership on the relationship between the value of the corporate buying center and performance in supply chains. The sample consists of 58 directly linked and matched supply chains, each composed of one user (internal customer), one corporate buyer, and one external supplier. The results indicate that transformational leadership has a positive moderating effect on the relationship between the value of the corporate buying center and performance, while transactional leadership negatively moderates this relationship. Two “localness” dimensions (formalization and centralization) and two “openness” dimensions (participative and reflective) were included as controls in the analysis.     

Evaluation of postponement in the soluble coffee supply chain: A case study

This paper, through a case study, evaluates postponement as an option to improve supply chain performances in a soluble coffee manufacturer. The main focus of the paper is on the development of a numerical data-driven methodology for quantifying the benefits of postponement obtained from the total inventory reduction. Our study shows that significant cost savings are achievable by delaying the labelling and packaging processes until actual orders from retailers are known. These savings include the reduction of the cycle stock, safety stock, and obsolete stock unsold from promotional events. We also discuss the cost implications of the proposed configuration that may offset the estimated potential benefits. The methodology presented in this paper can also be used in many other supply chains, particularly in the food industry with similar environments. This paper contributes to the literature in extending the very short list of published work presenting a systematic methodology of characterising the postponement benefits in real world settings and driven by numerical data.     

A supply chain as a series of filters or amplifiers of the bullwhip effect

The bullwhip effect refers to the phenomenon of amplification and distortion of demand in a supply chain. By eliminating or controlling this effect, it is possible to increase product profitability reducing useless costs such as stock-out and obsolescence costs. The main focus of this work is to study a single-product serial supply chain in which a control parameter can switch the chain from a series of filters to a series of amplifiers of the bullwhip effect and to analyse how the optimal values of the parameters change when discontinuities in order policy are considered. Furthermore, it is also shown that the bullwhip itself it is not a good index of the chain's performance, because it does not consider the oscillations that occur in the inventories, which also may affect the supply-chain performance.     

Assessing performance of utilizing organizational modularity to manage supply chains: Evidence in the US manufacturing sector

Recent competition and customization have motivated manufacturers to institute modular organizations to manage supply chains. Proclaimed as a paradigm shift, organizational modularity manifests agility and flexibility to diversify product offerings, utilize production capacity, and allocate network capital and assets. Whereas studies have conceptualized the impacts of modular organizations, large-scale research that examines modularity's impacts on performance are lacking. The study assesses the impacts of organizational modularity in the US manufacturing sector. A set of hypotheses proposes that higher level of modularity is associated with higher efficiency and profitability. I found modularity to negatively affect product specialization and positively impact capacity utilization, ROI and ROA. The findings help to determine the robustness of utilizing the modularity for complex supply chain coordination.     

A strategic-tactical model for the supply chain design in the delocalization context: Mathematical formulation and a case study

In this paper, we propose a mathematical model for the design of supply chains in the delocalization context. Our main objective is to develop a strategic-tactical supply chain design model that integrates all the relevant components that characterize the delocalization problem. We adopt the activity based approach to model the problem and we focus on the logistic decisions of activity location, technology choice, supplier selection, etc., and the financial decisions of transfer pricing, transportation costs allocation, etc. The mathematical formulation is illustrated by a case study from the automotive sector. A comparison between the model solution and the real decisions is used to prove the applicability and the utility of the proposed model.     

Lead time reduction through ICT application in the footwear industry: A case study

This paper analyses some relevant supply chain management issues for Italian firms operating in the footwear industry. The analysis is carried out on representative firms, located in a specialized regional district with a high density of shoe manufacturing companies. Companies were experiencing substantial problems in the management of supplier relationships, as well as in the commercial/distributive channel. Specifically, synchronization issues in the logistics pipeline were weakening firms’ lead time performances.The case study presented strives to highlight the critical points in the set up of the supply chain management programme, as well as the main results obtained. The case study also shows that the adoption of tailored Information and Communication Technology (ICT) tools has the potential to save significant lead time in supplier/buyer relationships. From the case study, generalities can be drawn and transferred to the footwear industry.     

The evolution of the internet of things industry and market in China: An interplay of institutions,demands and supply

This paper seeks to provide some explanation as to how demand-, supply- and institutions-related factors in China have affected the creation and diffusion of Internet of Things (IoT)-related products and services. Concerning demand side factors the paper demonstrates how potential market size and existing technology trajectory work in favor of IoT diffusion. As a related demand side factor the paper argues that, in terms of the technological trajectory, China has started farther from the frontier than most industrialized countries. The degree of incremental benefit from the IoT is thus higher in the country. As to the supply side factors, the article promotes an understanding of how Chinese technology companies have capitalized on a huge user base to develop IoT-based applications. It also suggests that technologies and expertise provided by foreign multinationals have also played crucial roles. Regarding formal institutions, the government's proactive policies have been a major factor in the IoT's evolution. It is also in the Chinese government's interest to develop IoT products to make censorship and surveillance more effective. Regarding informal institutions, Chinese consumers are less concerned than Westerners about being tracked and monitored, which provides a favorable condition for the adoption of IoT-enabled devices. Nonetheless, this condition is changing due to increasing abuse of consumer privacy. China and the U.S. are compared in terms of diffusion, key determinants, performance indicators and impacts of the IoT in order to understand the areas that China outperforms—and underperforms—the U.S. Some indicators are proposed to gauge the IoT-related performance and the impacts of the IoT.     

Supply chain management in the luxury industry: A first classification of companies and their strategies

This paper aims at analysing the supply management strategies in the luxury industry in order to find out (1) whether different clusters of companies could be identified within the luxury industry, on the base of a set of contingent variables derived from previous research, and (2) which supply chain strategy is currently applied within each cluster. Case study methodology is used. A sample of 15 Italian luxury companies, belonging to different industrial sectors, was taken into account.On the basis of five classification variables (company size, selling volume, product complexity, product fashionableness and brand reputation) four clusters are identified; these clusters present differences in terms of Supply Chain strategy, as well as in terms of practices for managing manufacturing, sourcing and distribution processes.     

The costs of increased localization for a multiple-product food supply chain: Dairy in the United States

There is increased interest in greater localization of food supply chains but little evidence about the effects of localization on supply-chain costs. Assessing these effects is complex in multiple-product, multi-process supply chains such as the dairy industry. In this study, we develop a spatially-disaggregated transshipment model for the US dairy sector that minimizes total supply-chain costs, including assembly, processing, interplant transportation and final product distribution. We employ the cost-minimizing solution as benchmark to compare alternative scenarios of increased supply chain localization. Our results indicate: (1) short-run limits to increased localization, (2) modest impacts on overall supply-chain costs, and (3) large cost re-allocations across supply chain segments, regions and products. We find that increased localization reduces assembly costs while increase processing and distribution costs. Cost increases are larger in regions with smaller raw milk supplies and during the season when less raw milk is produced. Minimizing distances traveled by all dairy products results in tradeoffs across products in terms of cost and distance traveled. The relationship between increased localization and costs appears to be nonlinear.     

Business networks and retail internationalization: A case analysis in the fashion industry

The paper presents different theoretical perspectives on the issue of business networks and their role in the process of internationalization. With regard to methodology, a specific case study is conducted of a vertically integrated firm in the fashion supply chain, which has implemented branding and retailing strategies in international markets. The case analysis, which is the result of a longitudinal study conducted over several years, aims at an in depth analysis of the extent to which business relationships represent a learning context involving opportunities/constraints in the internationalization process. The paper outlines the relationship between the specific business model, the international patterns followed, and business relationships. Three research questions are posed and discussed. Some final remarks on the relationships between business networks and international retail expansion conclude the work.     

Organizational form as a solution to the problem of credible commitment: The evolution of naming strategies among U.S. hotel chains, 1896–1980

This paper describes how organizational form can solve the problem of commitment that complicates exchange. I illustrate this by analyzing the commitment problem of hotel chains. Consideration of the commitment problem indicates that hotel chains are better off naming their units the same, so as to create the potential for future business from customers. However, some hoteliers believed units should be named differently so they are not identified with the chain. These two strategies illustrate a powerful tension between strategies that allow the organization to be more consistent, and strategies that facilitate adaptation to local conditions. I analyze the failure rates of hotel chains to show that selection favored chains that employed the naming strategy that generates commitment.     

The role of power and trust in spreading sustainability initiatives across supply networks: A case study in the bio-chemical industry

This paper investigates how sustainability spreads across supply networks. Adopting an Industrial Marketing & Purchasing (IMP) Interaction Approach (Håkansson, 1982), we seek to understand sustainability spread as a change process that affects different supply network actors and the impact of power and trust on the spreading process. The paper reports on an in-depth case study of the development of a sustainability initiative in the bio-chemical industry, based on data collection with multiple supply network actors across several tiers, providing unique and rich insights into understanding sustainability spread in a supply network and the perceptions of multiple supply network actors on the role of power and trust on the spreading process. Data collection comprised 20 semi-structured interviews spanning eight supply network actors, supported by secondary data such as archival records. The case study indicates that both coercive and non-coercive power as well as trust, significantly impact the actors' engagement in sustainability initiatives and its wider spread in supply networks. The paper contributes to the literature on sustainable supply chain management and IMP research on sustainability spread and, in particular, provides insights on the impact of power and trust on the process of sustainability spread across dyadic relationships into the wider supply network.     

Supply chain differentiation,contract agriculture,and farmers’ marketing preferences: The case of sweet pepper in Thailand

There is an emerging body of literature analyzing how smallholder farmers in developing countries can be linked to modern supply chains. However, most of the available studies concentrate on farm and farmer characteristics, failing to capture details of institutional arrangements between farmers and traders. Moreover, farmers’ preferences have rarely been considered. Here, we address these gaps by analyzing different market channels for sweet pepper in Thailand. Using data from a survey and choice experiment with farmers, we find that there is a general preference for marketing options that do not involve a contract. Additional provision of inputs and credit can increase the attractiveness of contracts. Yet, the most important factor for farmers is to personally know the buyer they deal with, which may be related to issues of trust. Some policy implications are discussed.     

Co-innovation in networks of resources — A case study in the Chinese exhibition industry

This work explores how network partners collaborate to innovate and innovate to collaborate and thereby achieve value. The innovation processes analyzed are within an IJV in the Chinese exhibition industry. The findings highlight that the IJV's development of a successful trade show resulted from effective co-innovation by partners which enabled the exploitation of opportunities in an industry characterized by rapid growth and continuing structural change. Partner co-innovation enabled evolving strategic and operational capabilities which has led to continued and growing market success. This co-innovation involved the targeted co-mingling of partner resources which creates value that motivated continued cooperation. The effectiveness of the partners' activities is evidenced by the growing size and prestige of their large-scale trade show as well as the expansion of the IJV into other endeavors. The paper concludes by considering the way these innovative processes can be applied in other contexts.     

Quality assessment in a turbulent environment: The case of the stockfish industry

Quality assessment is frequently applied in business-to-business marketing. It is usually assumed that quality assessment builds on the use of “objective” rules and criteria, but this is not always true. In a longitudinal study it was found that an institutionalized practice of quality assessment was based on both “objective” product characteristics, as well as more subjective supply/demand considerations, making quality assessment much more complex than usually assumed. Theoretical and managerial implications are highlighted.     

Innovation ecosystems theory revisited: The case of artificial intelligence in China

Beyond the mainstream discussion on the key role of China in the global AI landscape, the knowledge about the real performance and future perspectives of the AI ecosystem in China is still limited. This paper evaluates the status and prospects of China's AI innovation ecosystem by developing a Triple Helix framework particularized for this case. Based on an in-depth qualitative study and on interviews with experts, the analysis section summarizes the way in which the AI innovation ecosystem in China is being built, which are the key features of the three spheres of the Triple Helix -governments, industry and academic/research institutions-as well as the dynamic context of the ecosystem through the identification of main aspects related to the flows of skills, knowledge and funding and the interactions among them. Using this approach, the discussion section illustrates the specificities of the AI innovation ecosystem in China, its strengths and its gaps, and which are its prospects. Overall, this revisited ecosystem approach permits the authors to address the complexity of emerging environments of innovation to draw meaningful conclusions which are not possible with mere observation. The results show how a favourable context, the broad adoption rate and the competition for talent and capital among regional-specialized clusters are boosting the advance of AI in China, mainly in the business to customer arena. Finally, the paper highlights the challenges ahead in the current implementation of the ecosystem that will largely determine the potential global leadership of China in this domain.     

Unmet adoption expectation as the key to e-marketplace failure: A case of Taiwan's steel industry

Many e-marketplaces rose and fell in recent years. In this study, we argue that unmet expectation was the main reason why Taiwan's steel e-marketplaces failed. To confirm this statement, we examined the discrepancy between the original adoption factors and the factors that lead to the current satisfaction as perceived by e-marketplace participants. Adoption factors were identified by the factor analysis using data collected from medium-sized steel enterprises via a questionnaire based on a preliminary literature review and a focus group interview. The importance rank of the nine adoption factors suggested that the customers desired a safe and secured transaction-oriented platform and that they were less concerned on the cost-saving or management efficiency for steel e-marketplaces. However, Taiwan's steel e-marketplaces failed to meet users' expectations as negative scores appeared on all but “industry information” satisfaction indicators. In other words, more efforts are needed to focus on transforming the visionary e-marketplace into a practical and secured trading environment to earn the user's satisfaction and support. An implication drawn from concerns regarding security to privacy and trust is also discussed.     

Adding value in global B2B supply chains: Strategic directions and the role of the Internet as a driver of competitive advantage

The Internet increases the likelihood of “disintermediation” in global B2B supply chains. At the same time, opportunities for intermediaries to generate incremental value for other channel members are opened up. The discussion highlights three such strategic directions — “information rich”, “relational exchange” and “joint-learning” — with the focus on the role played by the Internet in the implementation of these strategies. Particular attention is also given to the experience of a leading Hong Kong intermediary to illustrate the alignment of the Internet with each of these strategies for enhancing the competitive position of intermediaries in global supply chains.