Environmental uncertainty, supply chain relationship quality and performance

Environmental uncertainty is a fact of life in today's supply chains. In this paper we develop a model of environmental uncertainty, supply chain (SC) relationship quality and SC performance. We use data from the electronics sector in Ireland to test our model. Our results provide mixed support for the model, with the moderating role of both demand and supply uncertainty being supported, but technological uncertainty not supported. We reflect on these findings and suggest a research agenda based on our results.     

Development and validation of a measurement instrument for studying supply chain management practices

It is widely argued that competition is no longer between organizations, but among supply chains. Effective supply chain management (SCM) has become a potentially valuable way of securing competitive advantage and improving organizational performance. This research conceptualizes, develops, and validates six dimensions of SCM practices (strategic supplier partnership, customer relationship, information sharing, information quality, internal lean practices, and postponement). Data for the study were collected from 196 organizations and the measurement scales were tested and validated using structural equation modeling. It is hoped that this study will provide a parsimonious measurement instrument to assess the performance of the overall supply chain.     

Uniting partners to cope with environmental uncertainty: Disentangling the role of social capital in developing supply chain agility

Based on social capital theory, in this study, we investigate how a firm utilized social capital to coordinate partners in the achievement of supply chain agility under different levels of environmental uncertainty. We test the proposed hypotheses via a hierarchical regression analysis using questionnaire survey data collected from 190 firms in China. The empirical results show that cognitive, relational, and structural capital positively influence supply chain agility. Furthermore, environmental uncertainty positively moderates the positive relationship between relational capital and supply chain agility, whereas environmental uncertainty negatively moderates the positive roles of cognitive and structural capital. The findings suggest managers should adopt different strategies when leveraging social capital according to the business environment. In unpredictable and volatile business environments, managers should motivate their firms to embrace relational capital to obtain sufficient resources for achieving supply chain agility.     

Creating supply chain relational capital: The impact of formal and informal socialization processes

Establishing closer social ties between buying and supplying organizations is increasingly cited as a critical differentiator of high and low performers in global supply chains. While the creation of relational capital within an organization is a relatively well identified concept in organizational research, comparatively little research exists on the inter-organizational socialization processes that create relational value in supply chains. In our research, we extend theoretical models of group social conduits into this context, and develop a model that posits the impact of formal and informal socialization processes on the creation of relational capital between buyers and suppliers. Results from our study of 111 manufacturing organizations in the United Kingdom suggest that informal socialization processes are important in the creation of relational capital, which in turn can lead to improved supplier relationship outcomes. Formal bridging socialization conduits appear to play a lesser role in deriving these benefits.     

Implementing supply chain information integration in China: The role of institutional forces and trust

This study investigates the effects of Chinese companies’ institutional environment on the development of trust and information integration between buyers and suppliers. Three aspects of China's institutional environment are salient: legal protection, government support, and the importance of guanxi (interpersonal relationships). This study uses structural equation modeling to analyze data collected from 398 Chinese manufacturing companies. Government support and importance of guanxi significantly affect trust, which subsequently influences two elements of information integration, namely, information sharing and collaborative planning. Furthermore, the importance of guanxi has a direct, positive impact on information sharing, and government support has a direct, positive effect on both information sharing and collaborative planning.     

The contingency effects of environmental uncertainty on the relationship between supply chain integration and operational performance

This paper extends prior supply chain research by building and empirically testing a theoretical model of the contingency effects of environmental uncertainty (EU) on the relationships between three dimensions of supply chain integration and four dimensions of operational performance. Based on the contingency and organizational information processing theories, we argue that under a high EU, the associations between supplier/customer integration, and delivery and flexibility performance, and those between internal integration, and product quality and production cost, will be strengthened. These theoretical propositions are largely confirmed by multi-group and structural path analyses of survey responses collected from 151 of Thailand's automotive manufacturing plants. This paper contributes to operations management contingency research and provides theory-driven and empirically proven explanations for managers to differentiate the effects of internal and external integration efforts under different environmental conditions.     

Firm's resilience to supply chain disruptions: Scale development and empirical examination

This paper expands our understanding of factors that contribute to development of firm resilience to supply chain disruptions. In doing so, we operationalize firm resilience to understand how supply chain disruption orientated firms can develop resilience to supply chain disruptions. We find that supply chain disruption orientation alone is not enough for a firm to develop resilience. Supply chain disruption oriented firms require the ability to reconfigure resources or have a risk management resource infrastructure to develop resilience. The way in which supply chain disruption oriented firms develop resilience through resource reconfiguration or risk management infrastructure depends on the context of the disruption as high impact or low impact. In a high impact disruption context, resource reconfiguration fully mediates the relationship between supply chain disruption orientation and firm resilience. In a low impact disruption context, supply chain disruption orientation and risk management infrastructure have a synergistic effect on developing firm resilience.     

Impact of eBusiness technologies on operational performance: The role of production information integration in the supply chain

While the information technology (IT) literature is mixed regarding the direct benefits of eBusiness technologies on performance, the impact of such technologies on supply chain practices remains largely an unexplored area of research. We hypothesize that while there may be no direct benefit of eBusiness technologies on performance, these technologies might support customer integration and supplier integration in the supply chain, which in turn might impact operating performance.To examine our hypotheses, we collected data from respondents who focused their responses to a single major product the process that manufactures it, a significant customer, and an important supplier. Our analyses showed that there was no direct benefit of eBusiness technologies on performance; however these technologies supported customer integration and supplier integration. Further, supplier integration was found to positively impact cost, quality, flexibility, and delivery performance; however there was no relationship between customer integration and performance. Consequently, there is a relationship between eBusiness technologies and supplier integration that leads to better performance. Further, there is an interactive effect between customer integration and supplier integration that supports the notion that firms that have both forms of integration, supported by eBusiness technologies, significantly outperform the others.     

How supply chain architecture and product architecture impact firm performance: An empirical examination

In order to enhance performance, manufacturing firms are building various capabilities and utilizing supply chain networks that are geographically dispersed around the globe. This study examines how decisions related to supply chain architecture and product architecture influence organizational competitiveness. Building on the co-specialization perspective, we evaluate the performance implications of product modularity and supply chain agility. While, product modularity constitutes a product configuration related to sourcing and assembling of products, supply chain agility is a supply chain configuration related to velocity (sensing, comprehending, and responding) and visibility (supplier network, internal operations, and external environment). Both the product and supply chain architectural decisions can impact performance, individually and in conjunction with each other. We empirically test the hypothesized relationships using data collected from 103 manufacturing firms. Results show that supply chain agility and product modularity directly enhance responsiveness and enable organizations to reduce cost. Furthermore, supply chain agility partially mediates the relationship between product modularity and both responsiveness and cost reduction. We elaborate on the key contributions of this study for both research and practice, discuss limitations, and also offer various avenues for further research.     

Evaluation of factors affecting strategic supply chain network design

The design of a supply chain network lies at the core of supply chain management, and it is affected by many variables corresponding to several factor groups. This study evaluated the importance of such influencing factors, namely, political and social characteristics, supply characteristics, product characteristics, demand characteristics, and service requirements, for evaluating strategic location alternatives in a supply chain system. A structural equation modelling approach was employed to analyse the effects of these factors. Results indicated that supply characteristics, product characteristics, demand characteristics, and service requirements positively affect strategic supply chain network design. The influence of the political and social factor group on strategic location alternatives was not supported in this study. Theoretical and managerial implications of the findings are discussed and potential research directions are proposed.     

Green multi-tier supply chain management: An enabler investigation

Stakeholder pressure, from actors including regulators, consumers and non-governmental organizations, has made organizations more responsible for poor environmental performance of their direct and sub-suppliers. Thus, green multi-tier supplier management (GMSM) has become an emergent topic. Yet it is still unclear how to enable GMSM practices effectively, i.e. how to enable sub-suppliers' environmental performance improvement. To help address the gap in the literature, this paper aims to identify enablers for sub-suppliers' environmental performance improvement, and it further applies a Decision-Making Trial and Evaluation Laboratory (DEMATEL)-based case study method to evaluate inter-relationships among these enablers and improve the focal company's GMSM practices, by using action research (AR) method principles. The data analysis and discussion with a follow-up evaluation after two years provided insights for the successful implementation of GMSM. The results show that top managers’ support from the organizations is a prominent and necessary foundational enabler. An interesting observation is that close proximity of supply chain members is regarded as a very prominent enabler. Evaluation and feedback on these enablers two years later found that the enabler mapping was beneficial, allowing them to address the most influential enablers, and thus the GMSM practices of the focal company has been highly improved. This paper concludes with directions for further research.     

Cyber supply chain risk management: Revolutionizing the strategic control of critical IT systems

Cyber supply chain risk management (CSCRM) is a new discipline designed to help IT executives address the challenges of the rapid globalization and outsourced diffusion of hardware and software systems. CSCRM is an integrative discipline combining elements of cybersecurity, supply chain management, and enterprise risk management into a new and powerful concept to exert strategic control over the end-to-end processes of the focal organization and its extended enterprise partners. This article provides a survey of the field, as well as a detailed analysis of the results of a four-year research project on CSCRM, conducted by the Robert H. Smith School of Business Supply Chain Management Center for the National Institute of Standards and Technology, that focused on the development of organizational assessment tools and a capability/maturity model for this emerging discipline.     

Managing supply chain resilience to pursue business and environmental strategies

Resilience has become a crucial topic in the field of strategic management as it requires companies to design resilient business models to tackle managerial and environmental disruptions of individual firms and supply chains. However, extant research still lacks deep insights into how companies design and manage supply chains according to the resilience principles. With this premise, this paper aims at conducting a state of the art review on supply chain resilience (SCR) considering 125 relevant papers collected from Scopus and Web of Science academic search engine. Starting from the results of the literature review, this study proposes a systemic framework of SCR assessment and contributes to improve the understanding of the impact of different empirically tested constructs on the development of the resilience concept. Further, the findings are summarized in several areas including barriers in developing resilience, metrics to measure the resilience performance, and effective strategies to foster the SCR. Finally, this study outlines promising future research directions for scholars and practitioners.     

Customer-facing supply chain practices—The impact of demand and distribution management on supply chain success

Traditionally, distribution has been viewed as the key (physical) link between a company's internal supply chain activities and its customers. More recently, demand management has emerged as a new dimension at the customer interface. Although it has become increasing popular in industry, it has not yet been analyzed in depth with respect to its impact on supply chain performance. Both distribution management and demand management entail customer-facing processes and practices and that are interrelated and (may) jointly determine supply chain performance. In this paper we seek to extend the stream of research in supply chain management by systematically investigating the impact of customer-facing supply chain practices on supply chain performance. Specifically, the paper examines the relative impact of relevant practices associated with demand and distribution management. To this end, we collected data from 116 multi-national companies based in Europe and analyzed it using structural equation modeling techniques. Our results suggest that (i) high demand management performance has a substantial positive impact on the overall supply chain performance, (ii) this effect is stronger than that of distribution management performance, and (iii) there is no evidence that demand management might be an enabler for effective distribution management. Among the individual practices that constitute demand and distribution management, adherence to the demand and distribution management processes and demand segmentation emerged as the strongest performance levers. Based upon additional in-depth interviews conducted with selected companies from our sample, we shed light on some of the most important findings that emerged from our survey analysis.     

Gaining from disorder: Making the case for antifragility in purchasing and supply chain management

The purchasing and supply chain management (P&SCM) discipline assumes that supply chains are fragile systems, hence taking a “negative” approach toward disorder. Building on Taleb’s concept of antifragility—the ability to gain from disorder rather than avoiding it—, we challenge this traditional assumption. The COVID-19 pandemic has revealed that some companies were indeed able to gain from disorder, whereas some of those that focused too much on robustness and resilience lost ground. Building robust and resilient supply chains may no longer be enough to thrive in today’s highly volatile business world. This article sparks a new debate by introducing antifragility to the P&SCM literature and provides new directions for future research.     

Supply chain collaboration: Impact on collaborative advantage and firm performance

Facing uncertain environments, firms have strived to achieve greater supply chain collaboration to leverage the resources and knowledge of their suppliers and customers. The objective of the study is to uncover the nature of supply chain collaboration and explore its impact on firm performance based on a paradigm of collaborative advantage. Reliable and valid instruments of these constructs were developed through rigorous empirical analysis. Data were collected through a Web survey of U.S. manufacturing firms in various industries. The statistical methods used include confirmatory factor analysis and structural equation modeling (i.e., LISREL). The results indicate that supply chain collaboration improves collaborative advantage and indeed has a bottom-line influence on firm performance, and collaborative advantage is an intermediate variable that enables supply chain partners to achieve synergies and create superior performance. A further analysis of the moderation effect of firm size reveals that collaborative advantage completely mediates the relationship between supply chain collaboration and firm performance for small firms while it partially mediates the relationship for medium and large firms.     

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.     

The road to cooperative supply‐chain environmental management: trust and uncertainty among pro‐active firms

The pressures on firms to improve their environmental performance have caused them to look outside their boundaries towards their supply chains. In such approaches, firms work with vendors to develop the environmental profile of supplied materials (for example) by reducing materials' toxicity or the amount of packaging used. While large firms can mandate that their suppliers comply with such initiatives, more cooperative approaches are generally likely to be more fruitful. This article presents the results from an exploratory, two phase study of the conditions under which firms engage in cooperative supply‐chain environmental management. First, the authors conducted interviews with 14 leading‐edge firms. In the second phase, the authors conducted a theoretical‐sample survey to examine a model of the antecedents of cooperative supply‐chain environmental management. The results suggest that inter‐firm trust, uncertainty and pro‐active environmental management most directly affect the extent to which firms engage in cooperative supply‐chain environmental management. Copyright © 2007 John Wiley & Sons, Ltd and ERP Environment.