Emerald | Supply Chain Management: An International Journal | Table of Contents

The impact of supply chain integration on firm performance: The moderating role of competitive strategy

Tue, 03 Jun 2014 00:00:00 +0100

Abstract

Purpose – This paper aims to provide empirical evidence of the effectiveness of various supply chain integration (SCI) practices under different competitive strategies in terms of cost leadership and differentiation. Design/methodology/approach – Survey methodology was used to collect data from 604 Chinese manufacturers. Hierarchical linear regression was used to analyze the moderating effects. Findings – The results showed that competitive strategies significantly influenced the effectiveness of SCI practices, including internal, process and product integration. More specifically, internal integration significantly affected the financial performance of cost leaders, while process integration contributed more to the financial performance of differentiators. However, competitive strategies had no significant moderating effect on the relationship between SCI and operational performance. Research limitations/implications – This study contributes to the literature by exploring the effectiveness of various SCI practices in relation to firm performance under different competitive strategies. The results should be treated with caution, as they may be more meaningful in China. Practical implications – The findings clarify the alignment of SCI with competitive strategies for practitioners, so that they can allocate their limited resources to build various SCI capabilities based on their strategic choices. Originality/value – The results enhance the body of knowledge on SCI from the perspective of contextual factors to explore its effectiveness at a more detailed level. This study extends the literature on the match between competitive strategies and SCI in improving financial performance.

Sex and salary: Does size matter? (A survey of supply chain managers)

literatinetwork@emeraldinsight.com (Paul D. Larson, Matthew Morris) — Tue, 03 Jun 2014 00:00:00 +0100

Abstract

Purpose – This paper aims to develop and test hypotheses on determinants of supply chain managers’ salaries. While women make up about half the workforce, there is evidence in the trade press that they receive far less than half of the compensation. Sex of the manager and size of his or her organization are among the predictors of salary. Design/methodology/approach – The hypotheses are tested using regression analysis of data from a survey of supply chain managers in Canada. This technique enables testing for a gender effect, while controlling for the effects of other factors. Findings – Seven variables are found to be significant predictors of supply chain manager salaries. Smaller companies pay lower salaries. Small business supply chain/logistics managers working longer hours with a professional designation, more experience, greater budgetary responsibility and greater share of compensation coming as a bonus earn higher salaries. Finally, male small business supply chain managers earn more than their female counterparts. Research limitations/implications – The piece includes a discussion of limitations and future research opportunities into the gender salary gap. Practical implications – There are implications for small businesses wanting to hire supply chain managers, and for female (and male) managers looking for work. Social implications – This paper presents evidence of possible gender discrimination against half the population. The potential social implications are tremendous. Originality/value – This is a unique piece of research in testing theory-driven hypotheses about supply chain salaries, especially by including gender and organizational size as predictors.

Supply chain orientation in SMEs as an attitudinal construct: Conceptual considerations and empirical application to the dairy sector

Tue, 03 Jun 2014 00:00:00 +0100

Abstract

Purpose – The paper aims to advance the conceptual understanding of supply chain orientation (SCO) in small and medium-sized enterprises (SME) as a general attitude and to empirically measure the link between SCO and willingness to implement supply chain management (SCM). Coordination among supply chain stages is widely considered important for competitiveness in all sectors. Recently, SCO of the actors has been discussed as a precondition for successful implementation of SCM. Design/methodology/approach – SCO is operationalized as a two-dimensional attitudinal construct. In all, 279 German dairy farmers participated in an online-survey. By means of factor and cluster analysis and one-way analysis of variance, the relation between the two SCO dimensions and their link with willingness to implement several currently discussed SCM measures is analysed. Findings – The SCO dimensions are not purely linearly related, as shown by three clusters with different patterns of vertical cooperation orientation and common goal orientation. No differences occur in terms of socio-economic characteristics, but the share of cooperative members varies. SCO is related to the intention to implement SCM. However, the greater the (monetary) efforts required by farmers, the lower their acceptance of an SCM measure. Trust and perception of the power relation play an important role, revealing patterns of coopetitive behaviour. Originality/value – SCO is a relatively new and little investigated construct. To the authors' best knowledge, this is the first time that a purely attitudinal measure was used, and that SMEs and the milk supply chain were investigated with respect to SCO and implementation of concrete SCM measures.

Using organisational theories to further our understanding of socially sustainable supply chains: The case of fair trade

literatinetwork@emeraldinsight.com (Claire Moxham, Katri Kauppi) — Tue, 03 Jun 2014 00:00:00 +0100

Abstract

Purpose – This paper aims to use organisational theories to frame research questions examining how to embed social sustainability in supply chain management (SCM) by focusing on fair trade. Design/methodology/approach – Drawing on previous organisational theory review papers in SCM, institutional theory and the extended resource-based view have been used as theoretical lenses to develop research questions for further studies. Findings – The authors developed seven research questions that enable and encourage the further examination of the factors impacting fair trade supply chains, as well as identify approaches to improve social sustainability in SCM practice. Social implications – As the aim of fair trade is to rebalance inequities inherent in North–South trading relationships, further work in this area has the potential for positive economic, environmental and social impact. Originality/value – The paper discusses two key themes: whether fair trade is changing SCM practices, and whether fair trade is a source of competitive advantage in supply chains. Using established theory to develop research questions encourages further examination of this important topic.

Digital manufacturing-driven transformations of service supply chains for complex products

literatinetwork@emeraldinsight.com (Jan Holmström, Jouni Partanen) — Tue, 03 Jun 2014 00:00:00 +0100

Abstract

Purpose – The purpose of this paper is to explore the forms that combinations of digital manufacturing, logistics and equipment use are likely to take and how these novel combinations may affect the relationship among logistics service providers (LSPs), users and manufacturers of equipment. Design/methodology/approach – Brian Arthur’s theory of combinatorial technological evolution is applied to examine possible digital manufacturing-driven transformations. The F-18 Super Hornet is used as an illustrative example of a service supply chain for a complex product. Findings – The introduction of digital manufacturing will likely result in hybrid solutions, combining conventional logistics, digital manufacturing and user operations. Direct benefits can be identified in the forms of life cycle extension and the increased availability of parts in challenging locations. Furthermore, there are also opportunities for both equipment manufacturers and LSPs to adopt new roles, thereby supporting the efficient and sustainable use of digital manufacturing. Research limitations/implications – The phenomenon of digital manufacturing-driven transformations of service supply chains for complex product does not yet fully exist in the real world, and its study requires cross-disciplinary collaboration. Thus, the implication for research is to use a design science approach for early-stage explorative research on the form and function of novel combinations. Practical implications – Digital manufacturing as a general-purpose technology gives LSPs an opportunity to consolidate demand from initial users and incrementally deploy capacity closer to new users. Reengineering the products that a manufacture currently uses is needed to increase the utilization of digital manufacturing. Originality/value – The authors outline a typology of digital manufacturing-driven transformations and identify propositions to be explored in further research and practice.

Exploring agency, knowledge and power in an Australian bulk cereal supply chain: A case study

literatinetwork@emeraldinsight.com (Romona Byrne, Damien Power) — Tue, 03 Jun 2014 00:00:00 +0100

Abstract

Purpose – The purpose of this paper is to explore how information sharing practices influenced inter-firm relationships. This was done specifically in relation to bulk commodity supply chains, due to the pre-existing power asymmetries in the system. Design/methodology/approach – This research was conducted using an interpretivist, inductive approach. The intention was to gather a wide range of data and then explore the data to see which themes emerged, rather than focusing on collecting data relevant only to specific themes. Findings – The key findings of this research focused around the difference between creating situations of compliance or collaboration in a supply chain context. This suggests that by understanding the relationships that exist between organisations, those in procurement and supply chain management roles will be able to better understand and manage the nuances of their supplier relationships. Research limitations/implications – The study is focused on a supply network specifically configured to facilitate sourcing and distribution of bulk grain. As such the findings need to be understood within the constraints of this context. Practical implications – Reliance on coercive power in an institutional change process is shown in our study to create a situation of compliance rather than of collaboration. Reliance on a different type of power, such as referent power, would be more successful in creating a situation of collaboration. Social implications – The sourcing and distribution of bulk grain is fundamental to food distribution in a developed economy. Our study provides a set of propositions indicating where managers can focus to more effectively manage these flows. Originality/value – The definition of the “agent” also provided an interesting point of comparison. This research found that the ultimate definition of the “agent” changes and can be linked to the institutional differences in ownership within a supply chain. This suggests the potential to redefine the way that Agency theory is discussed. The notion that the “agent” is dynamic and is likely to be the “agent”, “caretaker” and more at the same time suggests the potential for the traditional definition of the agent to be challenged.

Global supply chains and transfer pricing: Insights from a case study

Tue, 03 Jun 2014 00:00:00 +0100

Abstract

Purpose – The purpose of this paper is to integrate the issue of transfer pricing and logistics costs to understand trade statistics and the operation of supply chains by using invoice-level data for a single globally sourced product of a multinational firm. Supply chains are central to understanding wealth creation and capture in an increasingly globalized production system. The increasing disaggregation and dispersal of supply chains is profoundly affecting the geographical distribution of value added, input costs and profits of multinational firms. This suggests that understanding supply chains and where the activities and accounting for these activities take place is crucial for understanding the causes and consequences of contemporary globalization. Design/methodology/approach – By using a case study of a single product and invoice-level data, it was possible to capture the actual costs incurred by a firm using a relatively simple global supply chain. The authors show how corporate intra-firm transfer pricing determines which business unit and location captures profits. A single firm provided the core data in this paper, including product- and firm-level information on intermediate product prices and input costs for all internal transfers. Findings – This paper advances interesting insights into trade in value added and shows that, though not often considered significant, transfer pricing is a critical issue for understanding the geographical distribution of value added. The authors conclude with some observations about the nature of global supply chains, the value of international trade statistics and a hidden advantage of an integrated firm operating on a global scale the ability to somewhat arbitrarily select the activities to which profits should be allocated. For nation states, as supply chains become more international and complex, critical measures, such as gross domestic product, worker productivity, etc., are becoming ever more imprecise. The economic geography of cost of inputs and profits continue to separate as multinational enterprises drive the disaggregation of value creation and value capture. Research limitations/implications – The case study facilitates an understanding of complex supply chain issues, thereby extending and deepening findings from previous research. This case study of transfer pricing in supply chains will assist other scholars in better formulating testable propositions for their studies and sensitize them to the internal complexities corporate managers face when making operationalizing decisions. Originality/value – The case study suggests that understanding the configuration of and accounting in supply chains is vital for accurately measuring any national economic statistics. This case study provides some bottom-up evidence that national accounts and international trade economics undertaken without a deep understanding of supply chain organization is likely to generate misleading results. The methodology of using invoice-level data can provide a more granular understanding of how supply chains are organized and where the value is added and captured. For practitioners, the data suggest that firms should think very carefully about which of their activities generate the most value, and value those accordingly.

Who cares wins? A comparative analysis of household waste medicines and batteries reverse logistics systems: The case of the NHS (UK)

literatinetwork@emeraldinsight.com (Ying Xie, Liz Breen) — Tue, 03 Jun 2014 00:00:00 +0100

Abstract

Purpose – The purpose of this paper is to determine how best to reduce, reuse and dispose of household waste medicines in the National Health Service (NHS) (UK). Design/methodology/approach – Through a combination of literature review and empirical work, this research investigates the existing household waste medicines reverse logistics (RL) system and makes recommendations for improvement by benchmarking it against household waste batteries RL. The viability and feasibility of these recommendations are evaluated through in-depth interviews with healthcare professionals and end user surveys. Findings – The batteries RL system appears to be a more structured and effective system with more active engagement from actors/stakeholders in instigating RL practices and for this very reason is an excellent comparator for waste medicines RL practices. Appropriate best practices are recommended to be incorporated into the waste medicines RL system, including recapturing product value, revised processing approaches, system cooperation and enforcement, drivers and motivations and system design and facilitation. Research limitations/implications – This study offers academics and professionals an improved insight into the current household waste medicines RL system and provides a step towards reducing an existing gap in this under-researched area. A limitation is that only a small sample of healthcare professionals were involved in subjectively evaluating the feasibility of the recommendations, so the applicability of the recommendations needs to be tested in a wider context and the cost effectiveness of implementing the recommendations needs to be analysed. Practical implications – Reducing, reusing and properly disposing of waste medicines contribute to economic sustainability, environmental protection and personal and community safety. The information retrieved from analysing returned medicines can be used to inform prescribing practice so as to reduce unnecessary medicine waste and meet the medicine optimisation agenda. Originality/value – This paper advocates learning from best practices in batteries RL to improve the waste medicines RL design and execution and supports the current NHS agenda on medicine waste reduction (DoH, 2012). The recommendations made in the paper not only aim to reduce medicine waste but also to use medicines effectively, placing the emphasis on improving health outcomes.