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Supply chain partners' trust building processthrough risk evaluation: The perspectives of UAE packaged food industry
Abstract
Purpose
This paper seeks to identify the up‐stream supply chain member's (manufacturers, suppliers, supplier's service providers) characteristics, economics, dynamic capabilities, technology and institutional perspectives of risk in relationship to develop a trust building model through risk evaluation and to address the issue: should a supply chain member strive to build the trust or strive to reduce the risk with its members and from which perspectives?
Design/methodology/approach
A conceptual framework was developed considering five key perspectives (characteristics, economics, dynamic capabilities, technology and institutions) to evaluate the member's risk in relationship and derived the hypothesis from the framework. A survey was conducted in UAE packaged food industry upstream supply chain covering senior managers of 102 companies. Data were analysed using multiple regression analyses through SPSS. The selected supply chain members of this industry include packaged food products companies as manufacturers, packaging material converters as suppliers of packaging material to manufacturers and packaging raw material suppliers as supplier's suppliers of manufacturer.
Findings
From the survey results it is found that characteristic and institutional risk perspectives influence significantly to initiate a trustworthy relationship. Economics, dynamic capabilities and technology risk perspectives play a significant role to maintain trust in relationship. No perspective of members is found to be significantly risk‐free.
Research limitations/implications
This study has identified the perspectives of risk that can initiate and build trust between supply chain members in the context of a global business environment with a strong institutional system. Further research is required to identify the supply chain member's risk‐worthy characteristics, threshold levels of risk bearing capacity and the extent to which the institutions can reduce the membership risk to build trust.
Practical implications
The study results suggest that the supply chain members should strive to reduce the membership risk levels to build trust rather than striving to build trust to reduce the risk. As long as a member's risk levels are within their bearable limits trust can be considered as a risk coping mechanism and when the risk levels exceed their bearable limits the subject of trust turns into risk management/security management.
Originality/value
This study may be one of the first to develop a trust building model through a risk evaluation process and also one of the first to study the trust in supply chain member's relationship in UAE. Findings from this research should prove useful to management researchers and practitioners.
... However, an environment characterized by weak regulative institutions is not conducive to developing trust (Bonatto et al., 2020;Kelling et al., 2021;Singh and Singh, 2019However, because), reducing access to resources from partners (Collier and Sarkis, 2021), information sharing, and collaboration. Because relational capital cannot be built in the absence of trust (Laeequddin et al., 2009), weak relational capital constrains establishment of a collaborative risk strategy. Governance mechanisms are essential to enhancing stability in SC relationships to fulfill joint goals (Li et al., 2010;Liu et al., 2009) through transactional and relational governance., consequently, reduce risks. ...
... Thus, SC piracy is supported by weak regulative institutions. On the other hand, unlawful employee, SC partner, and police behaviors are less likely in companies where SC piracy has a lower impact (Laeequddin et al., 2009 This research proposes transactional and relational governance mechanisms as a means for companies to operate in environments characterized by mistrust. Companies that followedfollowing a Reactive or Technology strategiesStrategy were better able to reduce SC piracy's consequences by employing their own resources. ...
Purpose - This paper investigates how companies become resilient to supply chain (SC) piracy through using transactional and relational governance mechanisms to develop strategies effective in environments characterized by weak regulative institutions and mistrust.
Design/methodology/approach - This study developed case studies of nine large manufacturers with operations in Brazil.
Findings - The companies employed transactional and relational governance mechanisms to learn from past incidents, anticipate, and respond to the threat of SC piracy, becoming more resilient over time. Transactional governance mechanisms reduced risk triggers through technology, while relational governance mechanisms enhanced trust between SC and non-SC members, allowing the members to build social capital.
Practical implications - The authors provide practical guidance for managers and policymakers in developing risk management strategies based on technology and collaboration to reduce SC piracy in environments characterized by mistrust.
Social implications - SC piracy is a serious problem for global operations and SCs in many low-cost manufacturing locations. Besides the cost and service level consequences, the authors also highlight worker safety consequences, including the potential for kidnapping, psychological trauma, injuries, and death.
Originality/value - This study focuses on the little-researched topic of SC piracy. The authors examine the negative effects of a weak institutional environment, while most prior research focuses on the positive effects of a strong institutional environment. The authors position transactional and relational governance mechanisms as essential elements of SC risk resilience.
... Trust is a key factor for the successful incorporation of AI technologies in supply chain partnerships. The research conducted by Laeequddin et al. (2009) state the need of establishing trust in supply chain partnerships by evaluating risks. It emphasises the necessity of striking a balance between trust-building initiatives and risk reduction strategies in order to establish a network that is both sustainable and dependable. ...
The integration of Artificial Intelligence (AI) within supply chain management (SCM) has precipitated a significant transformation in business processes, particularly in emerging economies like South Africa. This systematic literature review explores the extent of AI's influence on SCM practices across various industries within the South African context, underpinning the potential of AI to improve operational efficiency, strategic decision-making, and innovation. This review thoroughly followed the PRISMA guidelines. The findings reveal that AI significantly contributes to the advancement of SCM by improving accuracy in demand forecasting, optimising resource allocation, and facilitating real-time decision-making. This review synthesizes current research, offering a comprehensive overview of AI's transformative potential in SCM within South Africa. It also suggests areas for future research, particularly in addressing the challenges of AI implementation and exploring its impact on sustainable SCM practices. The implications for both practitioners and policymakers include prioritising digital infrastructure development, ethical AI integration, and encouraging public-private partnerships to support AI-driven innovations in supply chain networks. Future research should prioritise the development of practical methods that specifically target the demands and obstacles of incorporating AI into supply chains in South Africa, with the aim of promoting fair and sustainable growth.
... Collaboration therefore enables the relationship between independent firms characterised by openness and trust where risks, rewards and costs are shared between parties (Olorunniwo and Li, 2010). Although there is always a degree of uncertainty and risk in buyer-supplier relationships, the perception of risk and the willingness of individual exchange partners to bear uncertainty and risk are context-and partnership-specific (Laeequddin et al., 2009). Trust can therefore enhance the willingness to make risky decisions for farmers, food manufacturers and distributors. ...
Purpose
The authors analysed fairness as an antecedent of trust to understand how trust building can be actively managed to facilitate collaboration in buyer–supplier relationships.
Design/methodology/approach
A case study was employed to buyer–supplier relationships of five organic food companies from three different sectors. The research was developed with data collected in 2022 through qualitative research interviews and analysed using a structured content analysis. A practitioner workshop served to complement findings and confirm the interpretation of data by discussing interview results from a managerial perspective.
Findings
A conceptual model based on organisational trust and justice theory was developed to examine causal relations between fairness and trust. Findings show that perceived distributional, procedural and interactional fairness mutually interact with the perceived trustworthiness of business partners and that both contribute to building personal, organisational and institutional trust. Qualitative data support the conceptual model and show that trust is a valuable relational resource that affects relationship quality and the willingness to collaborate and to take risks in times of uncertainty.
Practical implications
High trust levels developed through positive fairness perceptions can lower risk perceptions whilst increasing the willingness to collaborate in supply chain relationships. This can help deal with market uncertainties.
Originality/value
Through the lens of organisational trust and justice theory, this study extends the literature on collaboration in supply chains by including a comprehensive view on the formation of trust in business-to-business (B2B) relationships.
... In addition to the microfoundations of DC and creativity theory, the study also draws on social innovation theory to address the social and economic aspects of data-driven innovations. Despite the importance of traditional performance metrics (e.g., profitability, firm performance), scholars suggest greater nuance and more fine-grained social impacts of innovation (Brouthers et al., 2008;Fawcett et al., 2011;Laeequddin et al., 2009;Schilke et al., 2018;Vanpoucke et al., 2014). As such, this study integrates the consumer well-being aspect to address the grand challenge of poverty. ...
Big data-driven innovation gains momentum in the developing world by tackling grand challenges and making a pronounced and lasting impact. However, research has still not answered the key question regarding the dimensions of big poverty data analytics (BPDA) capabilities for creative service offerings nor their effects on economic and social outcomes. This study fills this gap by conducting a two-phase Delphi study and two rounds of surveys focusing on a globally leading microcredit institute in a developing country. The study conceptualizes management (analytics climate, cross-functional integration), platform (technology and data), and talent (pattern spotting and market ambidexterity) capabilities as the dimensions of BPDA capability. It further investigates creative service offerings (meaningfulness and novelty) as the mediator between BPDA—new service performance (economic outcome from the firm's end) as well as BPDA—quality of life (social outcome from consumer's end). Our research advances, first, the microfoundational view of dynamic capability (DC) theory in the emerging data-driven innovation paradigm by specifically identifying the complementary and co-specialization attributes of six microfoundations (i.e., analytics climate, cross-functional integration, data, technology, pattern spotting, and ambidexterity). In addition to DC, our study extends social innovation literature by establishing the connection between the instrument (BPDA capability) and outcome view (quality of life) of social innovation to tackle grand challenges in the developing world. Finally, our study extends creativity theory by introducing creative service offerings as a mediator and highlighting its role in the novel and meaningful solutions to social problems. Overall, this study is a pioneer in conceptualizing and empirically validating a research model that uncovers the potentially complex nuances between BPDA capability-creative offerings and innovation outcomes to tackle the grand challenge of poverty. Its findings are scholarly significant and executive worthy and constitute a major advancement in extant studies regarding how creative services are developed using BPDA and their impact on the firm's profitability and consumer well-being.
... In Ethiopia, dairy value chain accounts about 500,000 smallholder rural farmers who produce about 1,130 million liters of milk, of which 370 million liters of raw milk, 280 million liters of butter and cheese and 165 million liters that are consumed by the calves [5] . The remaining 315 million liters are marketed through both informal and formal retailers through cooperatives and farmers' organizations. ...
The study aimed at analyzing of the existing dairy value chain in the southern zone of Tigray. Primary data were collected from multiple sources including a total of 120 dairy producers, value chain actors: 24 traders, 20 consumers and 8 service providers in Edamehoni and Alamata districts. The collected data was analyzed using application of appropriate statistical tools and simple descriptive statistics. Dairying accounted 53.33 and 23.33% of the total generated family income for urban and peri-urban dairy producers; respectively. The finding indicated that input suppliers, producers, traders, consumers and service providers are involved directly and/or indirectly along dairy value chains in the study areas. Accordingly, producing and processing, collecting, storing and marketing dairy products are the major activities which were performed by the actors. Out of all milk value chain actors about 61% retailers (café and restaurant) and 39% milk producer, were involved in the value addition of milk in both study areas. Most of the smallholder dairy producers in the study sites have been using traditional dairy production technique that results in low milk production. Creating awareness and other capacity building intervention of smallholder dairy producer for quality and quantity milk production are one of the ways to assist dairy producers in building on their resources to create more income by managing their dairy farm skillfully and get a good price in the market. Hence, all concerned organizations (chain enablers) should focus on the provision of appropriate training for both dairy producer farmers and extension agents on how to manage improved breed dairy cattle and incorporate new technologies profitably into farm level production strategies.
... Montecchi et al. (2019) argued that BT enhanced provenance reduced uncertainty about authenticity, custody, intergrity and orgin which meant an establishment of trust is achievable. It was also observed that better risk management (Laeequddin et al., 2009), improved privacy and security instill trust among the partners of a SC (Oropallo et al., 2021). Köhler and Pizzol (2020) posited that enhanced transparency and traceability lead to trust which in turn lead to increased SC Collaboration (Erol et al., 2022), SC Integration (Zhang & Huo, 2013) and SC Resilience (Dubey et al., 2020). ...
Blockchain technology is touted as a game-changer. Many experts consider blockchain technology as one of the disruptive innovations. Following significant success in the banking and finance sector, blockchain technology has found significant success in all fields, including health, manufacturing, transportation, disaster relief operations, and many others. Recently, the academician has contributed significantly towards understanding blockchain technology and its application in the management field. To understand how the literature on blockchain technology in the supply chain has progressed, we undertook an extensive review of the literature published in peer-reviewed journals using databases such as SCOPUS. We have further classified our literature into four stages (pre-adoption, adoption, implementation, and application). Finally, we synthesized the findings of the study and proposed a research framework to explain how an organization can build supply chain resilience and enhance supply chain performance with the help of blockchain technology. Finally, we have noted the limitations of the study and future research directions.
... The structural evaluation of quantitative studies clearly demonstrates that most of the quantitative studies used a single method, such as linear programming [28], Bayesian network [29][30][31][32][33][34], or other approaches. Multiple regression models [35][36][37][38], i.e., structural equation modeling [39], covariance-based structural equation model [40], input-output (I-O) models [41], conjoint analysis [42], and correlation analysis [43], are examples of other approaches. Integrated methods that combine two or more approaches have not attracted much attention in the literature [15]. ...
Background: The aim of this paper is to introduce weighted interpretive structural modeling approach to supply chain risk management efforts by presenting an application to identify micro risks of logistics service providers at the industry level in Turkey. Methods: In this research, eighteen risk factors in the logistics sector have been identified through both literature review and recommendations from a group of academicians and experts in the sector. A survey was conducted to rank these risks. They were further analyzed through a weighted interpretive structural modeling (WISM) approach in order to demonstrate mutual relationships among these risks. Results: Finally, using a WISM approach, an analysis was conducted to identify the driving and dependence power of the risk factors. This study covers a variety of micro-risk factors of logistics service providers and demonstrates the relationships among them and clusters them based on their driving and dependence power. Conclusions: Such a clustering of the risk factors helps us identify those that affect the others and are of paramount importance in risk management and mitigation.
... Trust can help reduce demand uncertainty and eliminate risks perceived by consumers. Laeequddin et al. [15] established a supply chain trust model through risk assessment process. They believe that trust is the threshold for the enterprise's ability to withstand risks in the supply chain, and holds trust is two-way. ...
Mutual trust between enterprises is regarded as the most important issue in the study of supply chain partnership. The main purpose is to find how trust affects supply chain decisions and to suggest a coordination contract to improve supply chain performance. The results show that the trust-based contract has positive effect on the long-term cooperation. Although high residual value products can earn more market revenue in the price discount contract, it does not stabilize the trust relationship among supply chain enterprises. Enterprises need to improve their ability to predict market demand in order to increase revenue and expand supply chain cooperation. As long as the manufacturer's forecast is more accurate, the discount strategy can not only improve supply chain performance, but also strengthen the trusts between supply chain partners.
... Nakandala et al. [57] offered a framework to identify (using hierarchical holographic modeling) and evaluate risks in the fresh food supply chain qualitatively (using risk filtering, ranking and management framework) and quantitatively, (using fuzzy-based risk assessment method) and crosschecked with a case study of fresh food retailing chains in Australia. Several kinds of literature about supply chain risk assessments are found that have focused on various segments of food supply chains such as food processing industry [59,60], diary industry [56,[61][62][63], agri-food industry [64,65], fish and meat industry [66,67]. ...
Recently, the soft drink industry has been confronted with a rapidly changing business climate and increased competition, creating risks and uncertainties in its supply chain. Thus, immediate actions are required to handle these risks and uncertainties. The purpose of this paper is to identify and classify these risks in the soft drink supply chain and to develop a methodology comprising a fuzzy analytical hierarchy process (FAHP) and fuzzy comprehensive evaluation of these risks. FAHP was used to determine the weights of five major risk categories and 23 sub risks under these major categories. Afterward, a fuzzy comprehensive evaluation method (FCEM) was applied for the assessment of overall risk level, risk levels of the five major categories and relative risk levels of the 23 sub risks. This research has been conducted focusing on the soft drink industry of Bangladesh, a developing country with an emerging economy. In the existing literature, this work contributes by identifying and evaluating risks in the soft drink supply chain in the context of Bangladesh. The outcome of this study indicates that the overall risk level in the supply chain of the soft drink industry is between low and medium, and the risk level of the demand risks is the highest whereas the risk level of infrastructural risks is the lowest. It was also found that loss of reputation and brand image is the most significant sub risk, and natural disasters are the least significant sub risk.
... Therefore, it is difficult to establish a single-core model for a complex supply chain that embraces coal resources, industrial production, consumption as well as environmental factors. As business difficulties by a single enterprise in the coal industrial chain can lead to a decrease and/or fluctuation in SC integration, making it difficult to maintain normal operations, constructing collaborative evaluation models adapted to the carbon industry chain would be a more practical solution [28]. To improve the coordination and the robustness of the coal industry chain, the viability of a multicore supply chain and its associated collaborative evaluation models needs to be evaluated based on the coal industry properties. ...
To improve integration and achieve better coal industry materials and energy balance, integrated collaborative supply chains (SCs) are needed. However, as single-core SC models are not suitable for complex coal industry systems, a multicore, correlated, conditional SC model, called a supply chain network (SCN), is proposed. SCN collaborative evaluation models are discussed including industrial metabolic balance (IMB), enterprise profitability, contract execution ability and information interaction ability, for which IMB is used as the efficiency index of resource coordination of SCN, also as the constraints of the models on system levels. Further, data modeling by using BP-ANN algorithm is used to predict the profitability of supply chain network. Finally, the feasibility of the above models is illustrated by cases. The proposed evaluation models in this paper form the scientific and quantitative evaluation method of SC, which could be used for both SC planning and operations management helping detect and eliminate risks.
... Thus, the identified AFSC risks fall into nine categories: supply, demand, biological and environmental, political and macroeconomic, weather-related, logistical and infrastructure, policy and regulatory, financial, and management and operational risks (Jaffee, Siegel, and Andrews 2010;Nyamah et al. 2017). Furthermore, various quantitative and qualitative research methods are applied to assess, control and mitigate the negative effects of AFSC risks, including mathematical programming (Laeequddin et al. 2009), quantitative survey analysis (Wagner and Bode 2006), interpretive structural modelling (ISM) (Diabat, Govindan, and Panicker 2012), analytic hierarchy process (AHP) (Guan, Dong, and Li 2011), and case analysis (Leat and Revoredo-Giha 2013). Although all these methods have their advantages in analysing AFSC risks, each one has its own limitations. ...
Agri-food supply chains (AFSCs) are becoming more complex in structure, and thus more susceptible to different vulnera-bilities and risks. Therefore, to enhance performance, we need to manage the risks in AFSCs effectively and efficiently. This study analyses various AFSC risks using a multi-method approach, including thematic analysis, total interpretive structural modelling (TISM) and fuzzy cross-impact matrix multiplication applied to classification (MICMAC) analysis. Based on the empirical data collected from experienced AFSC practitioners and following thematic analysis, eight categories of risk and 16 risk factors were identified as important. Furthermore, the interrelationships among the identified risks were built using TISM. Finally, the identified risks were classified into various categories according to their dependence and driving power using fuzzy MICMAC analysis. The research results indicate that the weather-related and political risks have the highest driving power and are located at the lowest level in the TISM hierarchy. These risks have a high tendency to disturb the whole flow of AFSC and so should be managed effectively. This study advances existing literature on identifying risk factors , defining interrelations between different AFSC risks, and determining the key risks. The risk analysis results can help AFSC practitioners in AFSC to identify, categorise and analyse the risks.
... Many studies have shown different supplier assessment methods. Laeequddin et al. [26] developed a model to build confidence through risk assessment in the supply chain. Amid et al. [27] used fuzzy goal programming (FGP) to determine the appropriate number of orders to place with particular suppliers, taking into account the lowest prices and highest quality. ...
“Food loss”, defined as food produced for human consumption, which for various reasons leaves the supply chain, can be assigned to a group of new risks. Irrational use of food constitutes a risk to the environment. Moreover, food losses represent a missed opportunity to improve global food security. The aim of this study was to develop a risk management model for dairy product losses using the example of ripening cheese. The necessary data to develop the model were derived from a survey that was conducted in five dairies located in Poland. Total losses for nine products amounted to 1.1% of the average annual production, which accounted for more than 5635 t per annum. The studies that were conducted allowed the identification of three management methods of food loss in dairies: reprocessing, hand over for feed, and disposal. The level of risk was defined as “high” with two suggested courses of action: prevention and tolerance. Risks must be prevented by eliminating any errors that may result in a product of inadequate quality. Another solution is to redistribute or sell products at a reduced price, which despite their reduced quality, are nevertheless suitable for consumption. To some extent, this risk must be tolerated.
... Even though the role of trust in facilitating collaboration for SCR is acknowledged in the literature (e.g. Kleindorfer et al., 2005;Braunscheidel, 2009;Pereira, 2009;Grötsch et al., 2013;Beske and Seuring, 2014;Ho, 2015;Kamalahmadi and Parast, 2016;Datta, 2017), very few (such as Laeequddin et al., 2009 andJohnson et al., 2013) have explored how trust is built among supply chain partners and how this improves SCR in practice. Further research here is therefore required. ...
Purpose
The purpose of this study is to identify the prescribed formative elements of supply chain resilience (SCR) in literature, to compare them with the unique characteristics of high reliability organisations (HROs) and derive lessons useful for improving SCR.
Design/methodology/approach
Two systematic literature reviews are carried out as follows: one on SCR and the other on HRO, which identified 107 studies and 18 papers, respectively. The results from the review are presented, analysed and synthesised.
Findings
Findings suggest that despite significant similarities in some of the proposed formative elements for SCR and the characteristics of HROs, the strong managerial commitment exhibited in HROs is absent in SCR literature. More importantly, the most cited characteristic of HROs, which is their flexible decision making structure is pointed out as a prima lesson towards developing resilience in supply chains.
Practical implications
A decision making framework to facilitate flexible decision making for supply chains during crisis is presented. Further, practical lessons are pointed out from principles common to both streams of literature such as redundancy, human resource management, collaboration, agility, flexibility, culture and risk avoidance that can be implemented in supply chains.
Originality/value
This paper is the first study to systematically review HROs, adapt a HRO decision making framework and also apply the Cynefin framework to SCR. This, therefore, provides the basis to launch further research into the use of these theories and the role of decision-making in SCR creation.
... In Ethiopia, there are 500, 000 small holder rural farmers who contribute 1,130 million liters of milk, out of this 370 million liters raw milk, 280 million liters butter and cheese and 165 million liters consumed by calves [12]. The remaining 315 million liters are marketed by formal and informal retailers through cooperatives and farmers organizations. ...
... In Ethiopia, there are 500, 000 small holder rural farmers who contribute 1,130 million liters of milk, out of this 370 million liters raw milk, 280 million liters butter and cheese and 165 million liters consumed by calves [12]. The remaining 315 million liters are marketed by formal and informal retailers through cooperatives and farmers organizations. ...
... Amid et al. [2] used the fuzzy goal programming "FGP" in order to set the appropriate quantity of orders placed with particular suppliers taking into account the lowest prices and the highest quality. Laeequddin et al. [8] developed a trust building model through risk evaluation in supply chain and data were analyzed using multiple regression analyses. However, the above-mentioned methods are not well known in food industry, neither are they very common in small and medium size companies in the European Union. ...
... In that framework enterprises define MT with selection of "(systems of) viewpoints, purposes, goals, methods, methodologies, circumstances of use, and characteristics of its users" (Nedelko et In business practice each enterprise applied specific series of MTs, which originated from different scientific disciplines and corresponding functional areas, but it uses different approaches for its consideration of these areas (Kaplan and Norton, 2008;Peet and Hartwick, 2009;Hugos, 2018). Traditional management studies focused their attention on one-aspect specialization, complicatedness, one-sided thinking and combination of methodological solutions inside single disciplines (Laeequddin et al., 2009;Chopra, 2018). The more recent systems disciplines -like Hard, Soft and Integrative systems theories (Wiener, 1956;Mulej, 2007;Von Bertalanffy, 1968) and the modern management discipline . ...
The paper examines how utilization of management tools supports enterprises’ operating in supply chains. The paper critically reviews the results of a previous, survey-based study, with a sample of 198 employees from Slovenian organizations, who assessed utilization of management tools in their organizations. With hierarchical regression analysis authors test the associations between management tools’ usage and enterprises operating in supply chain; the impact was controlled with the most significant personal and organizational drivers of management-tools usage. Results show that loyalty management, core competences, and scenario and contingency planning are most strongly associated with the supply chain management’s activities in organizations. The traditional supply chain management’ tools, like outsourcing, lean production and total quality management, are currently not considered to be important vehicles for supporting enterprises’ participation in supply chains. The results from this study suggest rethinking of the current focus of management tools utilization, when organizations try to improve their participation in supply chains. More management tools were measured than in earlier studies regarding management tools, supporting enterprises’ participation in supply chain; relations between management-tools utilization and enterprise participation in supply chain were empirically examined. In addition, the most commonly used management tools were considered simultaneously, which had not been done in prior studies.
... Researchers have interpreted trust in different ways and assigned it different values by focusing on specific aspects (Chen and Barnes, 2007;Fawcett et al., 2017;Laeequddin et al., 2009). Trust definitions spans the continuum from a predisposition to a set of beliefs about a partner's capabilities to an intention to engage in a set of behaviors (Pomponi et al., 2015;Thomas and Skinner, 2010;Wu, 2011). ...
Purpose
The purpose of this paper is to examine the non-linear aspects of the asymmetry-performance relationship under varying conditions of trust and innovation. Its novel approach is useful for addressing the strategic elements of supply chain management (SCM) relationships based on trust and innovation decisions.
Design/methodology/approach
Results are based on a study of 90 managers from small- and medium-sized firms in Spain. Instead of a classical linear relationship analysis, the authors performed a non-linear analysis, using polynomial modeling and Warp 3 partial least squares method, which provides a more nuanced view of the data and constitutes an original approach to empirical research in SCM.
Findings
This study adds a new viewpoint on SC relationships by suggesting that not all trust and innovation development leads directly to performance improvement. The principal finding is, in varying trust and innovation contexts, that the influences of asymmetry on performance have uneven characteristics and follow non-linear paths.
Research limitations/implications
This study focuses on only one particular institutional environment in one country. The data are also cross-sectional, which makes it difficult to empirically test causality.
Practical implications
The findings provide rational insights to managers on when it is appropriate to reduce (or not) asymmetric relationships with partners.
Originality/value
Trust and innovation are important and ones of the key requirements of supply chain relationships in any environment, this study argues that the interactions of key SCM elements that drive members to better performance are more complex and non-linear.
... One of the key factors that are attributed to the successful supply chain relationship is trust. Building partnership trust is at the heart of managing risk and prerequisite in supply chain ( Laeequddin et al., 2009). ...
... Trust becomes the foundation of transaction decision processes in food supply networks, so that farmers, food manufacturers and distributors are willing to share risks. In other words, trustworthy is equal to risk worthy (Laeequddin et al., 2009). Also, Commitment to engagement and collaboration is essential, particularly for farmers and buyers. ...
Meaningful collaboration among heterogeneous stakeholders is essential for achieving sustainability in
agri-food supply chains. A substantial amount of research has been focused on examining factors that are
critical in shaping characteristics and effectiveness of collaboration in sustainable supply chains from various
perspectives. The divergence of such studies and their findings, however, has led to a great proliferation
of collaboration behavioural factors proposed. As much as contributing to understanding, different terms and
definitions of similar concepts or nature introduced in the literature often also add too much confusion of
agri-food supply chain stakeholders in interpreting, evaluating and improving collaboration behaviour. So far,
there is lack of a structured analysis on commonalities among those behavioural factors to cluster or consolidate
for enhanced clarity and efficiency in assessing and managing collaboration performance toward sustainable
agri-food supply chains. Aimed to address such a limitation, this paper applies a systematic review
to investigate the landscape of extant literature via the lenses of Resource Dependency Theory and Content
Analysis. As a result, 10 key behavioural factors to enable an effective collaboration system for sustainable
agri-food supply chain management are identified, which are Joint Efforts, Sharing Activities, Collaboration
Value, Adaptation, Trust, Commitment, Power, Continuous Improvement, Coordination and Stability. The
findings from this study can be used as a guideline for future research in agri-food supply chain collaboration
and help to model and measure collaboration performance more effectively and efficiently.
... In addition, we also observed various scholars advocating greater nuance and investigating more fine-grained aspects of performance consequences, such as project-specific outcomes (Im, Montoya, & Workman, 2013), cost efficiency measures (Vanpoucke, Vereecke, & Wetzels, 2014), and customer satisfaction . Other recommendations aimed at further broadening the range of consequences to include those not directly related to performance, such as the level of trust in organizations (Laeequddin, Sardana, Sahay, Waheed, & Sahay, 2009), the organization's scope of diversification (Døving & Gooderham, 2008), selected entry modes in international expansion (Brouthers et al., 2008), and CEO pay (Carpenter et al., 2001). ...
Although the dynamic capabilities perspective has become one of the most frequently used theoretical lenses in management research, critics have repeatedly voiced their frustration with this literature, particularly bemoaning the lack of empirical knowledge and the underspecification of the construct of dynamic capabilities. But research on dynamic capabilities has advanced considerably since its early years, in which most contributions to this literature were purely conceptual. A plethora of empirical studies as well as further theoretical elaborations have shed substantial light on a variety of specific, measurable factors connected to dynamic capabilities. Our article starts out by analyzing these studies to develop a meta-framework that specifies antecedents, dimensions, mechanisms, moderators, and outcomes of dynamic capabilities identified in the literature to date. This framework provides a comprehensive and systematic synthesis of the dynamic capabilities perspective that reflects the richness of the research while at the same time unifying it into a cohesive, overarching model. Such an analysis has not yet been undertaken; no comprehensive framework with this level of detail has previously been presented for dynamic capabilities. Our analysis shows where research has made the most progress and where gaps and unresolved tensions remain. Based on this analysis, we propose a forward-looking research agenda that outlines directions for future research.
... Laeequddin et al. . [12] de-veloped a trust building model through risk evaluation in a supply chain and the data were analysed using multiple regression analyses. However, the above mentioned methods are not well known to the Polish food industry, neither are they very common in small and medium size companies in the European Union. ...
The objective of the study was to develop an easy-to-apply method for assessing the supplier-linked risk in the food business. The method as suggested in the study makes it possible to calculate, using simple mathematical tools, a level of risk involved in the cooperation with a particular supplier. The risk assessment is based on six criteria set for every supplier: type of commodities or products provided by the supplier; period of the cooperation with the supplier; systems applied by the supplier to assure quality and safety; past performance of the suppliers with respect to delayed deliveries, cancelled deliveries, and claimed deliveries owing to improper quality of raw materials. The method developed was validated in three companies: meat plant, dairy plant, and catering facility. A simple method was proposed to assess what risk a particular supplier could bring on the quality and safety of finished food product. This risk assessment method can be applied in different food businesses. The greatest benefit of the method developed consists in its ease of use and functionality. The suggested method can be used by small companies and it does not require any complicated calculations or advanced statistical techniques. The method can be very useful for enterprises; however, it has certain limitations such as knowledge and awareness of its users. © 2017, Polskie Towarzystwo Technologow Zywnosci Wydawnictwo Naukowe PTTZ. All rights reserved.
... Ba (2001) argues that interacting with each other in different contexts and building upon past experience may cultivate trust from a low to high level e.g. from cognitive trust to bonding trust ( Slack, & Lewis, 2010 ). As pointed out by Laeequddin et al. (2009) "supply chain members should strive to reduce the partnership risk levels to build trust rather than striving to build trust to reduce the risk ." ...
The operations management literature is abundant in discussions on the benefits of information sharing in supply chains. However, there are many supply chains where information may not be shared due to constraints such as compatibility of information systems, information quality, trust and confidentiality. Furthermore, a steady stream of papers has explored a phenomenon known as Downstream Demand Inference (DDI) where the upstream member in a supply chain can infer the downstream demand without the need for a formal information sharing mechanism. Recent research has shown that, under more realistic circumstances, DDI is not possible with optimal forecasting methods or Single Exponential Smoothing but is possible when supply chains use a Simple Moving Average (SMA) method. In this paper, we evaluate a simple DDI strategy based on SMA for supply chains where information cannot be shared. This strategy allows the upstream member in the supply chain to infer the consumer demand mathematically rather than it being shared. We compare the DDI strategy with the No Information Sharing (NIS) strategy and an optimal Forecast Information Sharing (FIS) strategy in the supply chain. The comparison is made analytically and by experimentation on real sales data from a major European supermarket located in Germany. We show that using the DDI strategy improves on NIS by reducing the Mean Square Error (MSE) of the forecasts, and cutting inventory costs in the supply chain.
... More broadly, they confirm the importance of both vertical and horizontal collaboration in various types of supply chains and value networks (Möller and Rajala, 2007;Ritala et al., 2009;Van Veen-Dirks, 2006). It has also been suggested that lowering supply chain risks facilitates inter-organisational trust and thus further increases the benefits of collaboration (Laeequddin et al., 2009). Furthermore, by applying the systems approach, our results address the gaps Hughes et al. (2015) and Read et al. (2013) point out. ...
Supply chain complexity and disintegration lead to increased uncertainty from a stakeholders’ perspective, which is emerging as one of the major challenges of risk management. The ability to identify risks has weakened, as the responsibility of supply chain risk management is handed over to outside service providers. Regardless, the risks, their visibility and their impact depend on the position of the companies in the supply chain. The actors in the chain must therefore collaborate to create effective risk management conditions. This challenging situation is especially pronounced in multimodal maritime supply chains, where the risks and actor focality are high. This paper contributes to current risk management literature by providing a holistic and systemic view of risk visibility and control in maritime supply chains. The study employs broad-based, qualitative interview data collected from actors operating in southern Finland and the Gulf of Finland as well as an expert-panel assessment of the related risk management abilities. The results show a high level of variance in the level of risk identification and visibility between the actors in question. This further suggests that collaboration in supply chain risk management is essential, as an awareness of the risks and their control mechanisms do not necessarily reside in the same company.
En uygun lojistik partnerin seçilmesi, tüm işletmelerin rekabet güçlerinde uzun vadeli işbirliklerini gerçekleştirmeleri açısından önemli bir konu olarak karşımıza çıkmaktadır. Bu çalışma otomotiv yan sanayi yedek parça sektöründe faaliyet gösteren bir işletme için en uygun lojistik partnerin seçilmesini amaçlamaktadır. Belirtilen amaç doğrultusunda çalışmada dört aşamalı bir bütünleştirilmiş Çok Kriterli Karar Verme yaklaşımı uygulanmıştır. İlk olarak çalışmada lojistik partner seçim kriterleri literatür araştırması ve yönetici görüşleri ile belirlenmiştir. Lojistik partner seçim kriterlerinin belirlenmesinin ardından, lojistik partner seçim kriterlerinin ağırlıkları Analitik Hiyerarşik Süreç (AHP) yöntemi ile tespit edilmiştir. Lojistik partner seçim kriterlerinin ağırlıklarının belirlenmesinin ardından çalışmada değerlendirilecek alternatifler işletme deneyimlerine göre belirlenmiştir. Son aşamada ise en uygun lojistik partner seçimi Additive Ratio Assesment (ARAS) yöntemi ile elde edilmiştir. Çalışmanın sonuçları, lojistik partner seçiminde en önemli kriterin “Lojistik Aktiviteler” olduğunu göstermiştir. ARAS yöntemine göre sonuçlar LF1’in genel sıralamada işletme için en uygun lojistik partner olduğunu göstermektedir. Ayrıca şirket yöneticileri ile yapılan görüşmelerden elde edilen verilere göre önerilen modelin geçerli ve sağlam olduğu tespit edilmiştir.
The food grain supply chain (FGSC) is comprised of several links, stretching from the point of production to the point of consumption. A broken connection might produce a food catastrophe. The structural imbalance of India's FGSC is an obstacle to achieving sustainability; this has to be addressed if the country is to preserve national food security. This present study aims to develop a systematic assessment of the risks and the priority of risk-mitigating solutions in attaining sustainability in the Indian FGSC. Multiple groups of individuals and businesses involved in the FGSC have been surveyed and interviewed, with their responses analyzed. A total of thirty-one risk factors and eleven risk-reduction strategies are identified. Further, the identified risk factors are classified into five-dimensional sustainability criteria (environmental, economic, institutional, technical, and social) by using exploratory factor analysis (EFA). Then, a fuzzy analytical hierarchy process (FAHP), combined with the fuzzy technique for order performance by similarity to ideal solution (FTOPSIS) method, is adopted to find the most critical risk factors and choose the best course of strategies for risk mitigation. The study finds that inability to incorporate advanced technology imposes the highest risk to sustainability followed by natural disasters. Ensuring end-to-end computerization using advanced technology like agri 4.0 is the need of the hour in intercepting the range of FGSC risks. The results may help policymakers create a comprehensive risk mitigation plan and taxonomy to increase supply chain resilience.
Supplier selection is the process by which companies identify, evaluate, and contract suppliers. The supplier selection process deploys the enormous amount of financial resources of a company and plays a vital role in the success of any company. The main purpose of the supplier selection process is to reduce purchasing risk, increase overall value to the buyer and fosters close and long-term relationships between buyer and supplier. The VIKOR system changed into advanced to improve the various standards of complex systems. It determines the compromise ranking listing and the compromise solution received by means of the preliminary (given) weights. This approach is from an opportunity set in the presence of conflicting standards Focuses on ranking and choice. It introduces a multi-criterion ranking index primarily based on a particular measure of-proximity‖ to the-fine‖ solution. The purpose of this take a look at is to extend the VIKOR technique for selection-making troubles with c program language period numbers. The ranking of the prolonged VIKOR approach is acquired by comparing the interval numbers and to make comparisons between the periods, the selection maker's self-assurance is fixed. Finally, more than a few instance illustrates and clarifies the key conclusions made on this paper, which we used the Vigor method for the following paper. In this paper we used VIKOR for ranking the VIKOR method is the most ideal solution Short-distance and Alternative The solution with the longest distance from the solution Determines, but the comparison of these distances Does not consider importance.
The interdependent nature of supply chain elements and events requires risk systems must be assessed as an interrelated framework to optimize their management and integrate effectively with other decision-making tools in uncertain environments. This research shows a synthesis and analysis of the main qualitative/quantitative methods that have been used in the literature considering the treatment of event dependencies in supply chain risk management in the period 2003–2018. The results revealed that the integration with disruption analysis tools and artificial intelligence methods are the most common types adopted, with increasing trend and effectiveness of Bayesian and fuzzy theory approaches.
This study attempts to understand how Corporate Social Responsibility (CSR) positively influences the quality of business relationship in the business-to-business market. The purpose of this article is to suggest the CSR model in the B2B context. First, this study discerns two dimensions of firms' CSR activities based on the previous studies in B2B area - Business CSR and Altruistic CSR. Furthermore, we tried to investigate the CSR activities affecting the result of the development of business relationships (economic and non-economic factors) and customer trust as a relationship performance in the B2B market. Managerial implications and limitation of the study were also discussed.
Orientation: Supply chain risk management in the Zimbabwean business context is under researched, presenting numerous opportunities for further empirical investigations. This article is an attempt to address manifest research gaps in this area, using the food retail environment as a practical case.Research purpose: To investigate the nexus between supply chain risk management and operational performance in the food retail industry in Zimbabwe.Motivation for the study: The food retail industry in Zimbabwe faces numerous supply chain risks, as most of the products sold are imported. It is essential to understand how the management of these supply chain risks impacts the operational performance of firms.Research approach, design and method: The study employed a quantitative survey design, using a sample of 227 food retail firm managers and supply chain professionals based in Harare. The collected data were analysed using structural equation modelling.Main findings: The results of the study showed significant positive relationships between supply chain risk management and risk information sharing and risk analysis and assessment. Further significant positive relationships were observed between risk analysis and assessment and risk-sharing mechanisms. In turn, risk-sharing mechanisms significantly predicted operational performance. However, no significant direct relationship was observed between supply chain risk management and operational performance.Practical/managerial implications: The study demonstrates that the operational performance of food retailing firms can be improved significantly through the institutionalisation of the mediating variables (risk information sharing, risk analysis and assessment, risk-sharing mechanisms) considered in this study. Management in the food retail industry may use the results of this study as a problem-solving framework for addressing operational constraints.Contributions/value-add: The study provides information that aids in the understanding of supply chain risk management, risk information sharing, risk analysis and assessment, risk-sharing mechanisms and operational performance, as well as the connection between them in a food retail context.
Purpose
The purpose of this paper is systematically review, synthesize and critically evaluate the current research status on the role of collaborative interorganizational relationships (CIRs) in supply chain risks (SCRs) from a social capital perspective and provide an organizing lens for future scholarship in this area.
Design/methodology/approach
This study adopts a systematic literature review approach to investigate 126 articles from 27 peer-reviewed journals between 1995 and 2020.
Findings
This paper investigates supply chain CIRs using a social capital perspective to explain the role of structural, relational and cognitive capital that resides in these relationships in various SCRs (i.e. environmental, supply, manufacturing, demand, information, financial and transportation). The review reveals that the three social capital dimensions uniquely and both positively and negatively affect different SCRs. The findings further suggest that the perceived SCRs can influence the structural and relational capital.
Practical implications
This study calls for practitioners to consider the cognitive alignment with their supply network partners, their relational investments, as well as the interorganizational processes and systems in managing and alleviating SCRs.
Originality/value
This review offers a theoretical articulation of how various aspects of CIRs affect SCRs. Specifically, this study extends the existing understanding of the role of social capital in SCRs through offering a synthesis of dominant findings and discourses, and avenues for future research.
Over many years, researchers from social science and management have argued that to develop sufficient trust between potential supply chain partners, a useful starting point is to develop strategies for encouraging perceptions of trustworthiness. Conversely, marketing theorists and practitioners have called for strategies by industry that aims to reduce risk perceptions for successful relationships. However, it is not clear in the literature which perception is more significant; trust or risk and from which perspective. Identification of such factors plays an important role in supply chain design and operation to decide whether the supply chain members should strive to develop trust perceptions or reduce risk perceptions in relationship. This paper has identified the common perspectives of trust and risk perception to address the issue of which perception is more significant from each perspective. Results of a survey of supply chain member’s trust and risk perceptions of the printing and packaging industry in the United Arab Emirates are presented.
Brand trust is considered to be central in brand building, both in the cases of B2C, when customers face risky situations and costly purchases and in B2B where purchases are based on rational decision such as product functionality, quality, price and reliability considering the personality traits and imagery irrelevant. When customers perceive risk in their buying decision they tend to play safe and forgo the perceived benefits. Customers adopt trust as a shortcut to avoid complex decision processes that carry risk. After reviewing 148 research articles from reputed journals on brand trust and brand risk, it was found that, the perspectives of brand trust and brand risk are the same for brand characteristics, brand rationality and brand loyalty. Connecting the literature, a conceptual model was developed for understanding the perspectives of trust and risk of high value brands. The model reveals that risk reduction from brand's characteristics, rationality, safety and security (structural assurance) builds brand trust, rather than trust building reducing brand risk.
Perceptions and principles of competitiveness in the context of production and operations management (POM) have evolved over time towards trends in which firms compete at supply chain level. This evolution underscores the need for competitive priorities to be re-evaluated from time to time. The purpose of this article is to explore how POM experts perceive and rate competitive priorities for international operations. The article presents a Delphi-based study with a panel of seventy POM experts from the Sultanate of Oman in the Gulf Cooperation Council (GCC) region. It applies a constructivist epistemology in a three-round Delphi Exercise to identify, select and prioritise the key competitive priorities perceived by panel experts. Nonparametric statistics test the dichotomous responses and levels of concordance and discordance of ranked outcome variables among the Delphi panellists. The analysis identifies nineteen competitive priorities thematically clustered into five orientations for productivity-efficiency, relationship-building, technology-enabled, environmentally-conscious and conformance-improvement. Polled results show heterogeneity during both selection (Cochran's Q: p < 0.05) and prioritisation (Friedman’s Q: p < 0.05) rounds. The conformance-improvement orientation consistently produced the top ranked priorities in the Delphi rounds. Theoretical contributions and managerial implications are discussed and potential future research areas on priorities for POM are also elaborated.
Purpose
Trust and commitment (T&C) among the supply chain partners in the context of supply chain management (SCM) are of interest for both researchers and practitioners. This paper analyses literature on T&C and identifies gaps for further research.
Design/methodology/approach
The current literature review paper provides a comprehensive perspective on the topic using bibliometric analysis followed by a systematic review of literature. In all, 207 relevant articles were extracted from the Scopus database using the relevant key word searches. For the purpose of the systematic review, another 48 relevant papers were identified through an iterative process. Hence, 255 papers published between the years 1990–2019 were analysed for the sake of this study.
Findings
A total of 15 definitions of trust, nine definitions of commitment, 13 classifications of trust, 40 antecedents of trust, six classifications of commitments, 39 consequences of trust, 11 antecedents of commitment and 15 consequences of commitment were identified and analysed. Future research directions were presented.
Research limitations/implications
The study is limited to identifying the antecedents and consequences of T&C. A detailed framework could be developed in future research. The antecedent and consequences for T&C could be discussed in greater detail.
Practical implications
Important implications for managers emerge from this study for building and implementing T&C, as SCM requires a thorough understanding of relationship-building skills. The discussion on the definitions of T&C, types of trust and the antecedents and consequences provides important insights for practitioners for strategy formulation. Results provide important insights and bring about greater clarity for researchers and practitioners on T&C in SCM.
Originality/value
Through rigorous analysis of the prevailing research, this paper extensively reviews literature on T&C in SCM till 2019. It summarises the current status and proposes future research directions.
El incremento de las cadenas de suministro globales, a pesar de sus grandes beneficios, las convierte en más vulnerables y con mayores niveles de riesgo. En este artículo se ha llevado a cabo una revisión sistemática de la literatura sobre los métodos utilizados para la Gestión de Riesgos de Cadenas de Suministro, tanto cualitativos como cuantitativos, centrados en alguna fase del ciclo de gestión de riesgos y en el ciclo completo (identificación, evaluación, mitigación, seguimiento), así como los principales campos de aplicación. Por último, se identifican nuevas oportunidades y retos como líneas futuras de investigación.
The purpose of this article is to present a systematic review of the supply chain management (SCM) research on the Gulf Cooperation Council (GCC) countries of Bahrain, Kuwait, Oman, Qatar, the United Arab Emirates and Saudi Arabia. Using 75 journal articles from high quality SCM-related publication outlets, the review finds three main SCM complexities of managing supply chain uncertainty: (i) strategically selecting and integrating network resources, (ii) reliably contracting and delivering high-quality solutions, and (iii) cost-effectively controlling and financing operational expansions. The review also finds that managers configure supply chains involving GCC countries with emphasis on ‘productivity–efficiency’, ‘relationship-building’, ‘technology-enabling’, ‘environmental-consciousness’, and ‘conformance-improvement’ orientations. These orientations represent the different themes for competitiveness at chain–chain levels. With insights from the review, the article develops foundations for an orientation theory, a culturation theory and an organic view of supply chains. The article also discusses prospects for future regional SCM research.
Purpose
The goal of this research is to establish which contextual factors influence the selection of relational governance instruments in supply chains (SCs) and how these factors impact the expected performance.
Design/methodology/approach
A systematic literature review (SLR) identified 103 conceptual, empirical and analytical studies between 2007 and 2017.
Findings
A conceptual framework is developed from the categorization of contextual factors, relational governance instruments and expected SC performance. The conceptual framework provides three propositions: (1) The choice for relational governance instrument is influenced differently by the contextual factors; (2) the impact that the contextual factors have on the governance instruments and SC performance is mediated by trust; (3) The SC performance is affected differently by the instruments of flexibility, solidarity and information sharing.
Practical implications
The findings of this research can help business managers better govern and know the contextual factors and use different relational governance instruments and trust dimensions to drive the expected results of the SC.
Originality/value
The synthesis reveals contingencies of relational governance instruments in SCs for performance expected in different contexts and proposes a standpoint for further research in the area.
Purpose-To date, most of the literature on trust and distrust reveal a paucity of studies about Nigerian Supply chain relationships. Specifically, this paper attempts to address this gap by examining how trust is developed and repaired in supply chain relationships.
Design/methodology/approach-Within the scope of this paper, an interpretivist approach was adopted in response to calls for qualitative studies on supply chain relationships. Face to face semi-structured interviews with 12 supplier/customers active in Nigerian trade provided insights into the importance of trust and distrust in enduring supply chain relationships. Data was analysed using iterations from interviews held with the respondents. These iterations demonstrate the key role trust plays in developing and maintaining supply chain relationships whereas distrust deters cooperative relationships.
Findings-Key factors were considered in developing an understanding of how trust and distrust mechanisms affect the coordination of supply chain performance. Three distinct types of trust-calculus based trust (CBT), identification based trust (IBT) and knowledge based trust (KBT) are considered to play an important role in maintaining and developing fruitful relationships. Conversely, the repair of two levels of distrust-calculus based distrust and identification based distrust is crucial to enduring supply chain relationships.
Research limitations/implications-The importance of taking trust and distrust seriously stems from its unique contextual embeddedness. This study fills a gap in the literature by providing insights into how potential customers and suppliers can leverage on trust to improve their supply chain capacities while suggesting remedial actions when trust is violated.
Originality-The paper enriches the view that trust and distrust are crucial in explaining Nigerian supply chain relationships. In a broader context, the complementary relationships between both mechanisms highlight the social advantage of trusting behaviour in overall performance of supply chains.
Brand trust is considered to be central in brand building, both in the cases of B2C, when customers face risky situations and costly purchases and in B2B where purchases are based on rational decision such as product functionality, quality, price and reliability considering the personality traits and imagery irrelevant. When customers perceive risk in their buying decision they tend to play safe and forgo the perceived benefits. Customers adopt trust as a shortcut to avoid complex decision processes that carry risk. After reviewing 148 research articles from reputed journals on brand trust and brand risk, it was found that, the perspectives of brand trust and brand risk are the same for brand characteristics, brand rationality and brand loyalty. Connecting the literature, a conceptual model was developed for understanding the perspectives of trust and risk of high value brands. The model reveals that risk reduction from brand's characteristics, rationality, safety and security (structural assurance) builds brand trust, rather than trust building reducing brand risk.
Only a number of companies have control over the greater part of the whole value adding process. Taking actions for the improvement of a product value is no longer within the jurisdiction of individual companies, but the entire supply chain. As a consequence of this, competition relations on the market have been changed, in the sense that today there is a greater competition between supply chains, than between individual companies. In that way, in modern conditions, the priority for individual companies becomes networking through the supply chain. This kind of trend has initiated the need for consideration of the advantages, in terms of increasing companies’ competitiveness, as well as disadvantages of interorganizational networking.
A great number of companies, which have understood that the opportunities for
increasing competitiveness do not arise from improvement of internal efficiency, but from interorganizational connections, at the same time have identified a large exposure to the disturbance or disruption factors when entering the supply chain. However, since networking of companies through supply chains with purpose of value creation and demands fulfillment is not questionable, the conclusion is that they should look for the answers to the questions that will solve the problem of their vulnerability. Disturbances and interruptions in supply chain very fast can provoke negative consequences for all partners. A mitigating circumstance for today's global supply chains is reflected in the fact that today there are a lot of opportunities and available techniques, but it is necessary to become familiar with them and adequately implement them.
Purpose
Organizations need to find ways to survive in unpredictable, dynamic and rapidly changing environments. The development of organizational capabilities, such as relational, is a dynamic process of adaptation, which seeks to adjust to an unstable environment. Within this context, the purpose of this paper is to analyze, through a systematic review (SR), 36 articles, which discuss the influence of strategic alliances on the dynamic capabilities (DCs) process.
Design/methodology/approach
Through this systematic literature review, articles published in international journals were categorized in terms of their objectives, thematic axes and the research methodologies applied and evidences, to explore their methodological, theoretical and organizational practice contributions.
Findings
The results clarified the antecedents, implications and relevance of the relationship between strategic alliances in different countries and their DCs. The findings make it possible to determine directions for new studies that may support the advancement of this field of research.
Research limitations/implications
Studies from this SR point out that alliance is: a flexible vehicle of learning; a way to transfer effective knowledge in partner firms and to generate combinations of resources; and a superior means of access to technological capabilities and other complex capabilities. Those aspects would be difficult to be developed in the firms without the help of partnerships. This can encourage the reconfiguration of existing resources and capabilities. These reconfigurations can lead to deliberate evolutionary adaptations in these firms, which will build relational DCs.
Practical implications
As managerial implications, an alliance allows for the development of capabilities to detect new opportunities, and for the development of the reconfiguration or expansion of the existing resource base in the firm. Thus, alliances, once properly managed and with well-defined structure and purpose, can help firms achieve a sustainable competitive advantage. Alliances can serve as a type of strategic choice or an alternative that can enable companies to cope with unstable, global and competitive environments permeated by (new) threats and opportunities.
Originality/value
This SR paper highlighted, in a specific and consistent topic, the suggestions for future research related to the process of DCs and its relationship with strategic alliances, motivating new research works.
This thesis examined the management of supply chain risks in the maritime
transport industry in the Kingdom of Saudi Arabia. Supply Chain Risk
Management (SCRM) has quickly become of critical importance to the world
economy. Though the transport of oil from this region impacts the economies of
countries around the world, it has received too little attention from the academic
community. This thesis focused on expanding the field of SCRM by examining
how various risk assessment and management concepts and practices are
understood, interpreted and implemented throughout the region.
The majority of existing supply chain management and risk management models
have been developed and are currently rooted in the US and Europe. Therefore,
this thesis is of high significance because its major aim was to explore these
concepts and models, namely one focused on the Middle East. This approach
allowed the thesis to examine and test certain factors associated with SCRM, such
as risk categories, risk assessment and risk strategies, in maritime firms in Saudi
Arabia. The thesis thereby offers insights that were not otherwise available in
prior research. In achieving these aims, the researcher addressed three key
research questions.
The thesis was conducted by relying on the constructivist approach to data
collection. The specific qualitative methodology of the case study was employed
to collect a wide variety of useful and reliable data, including interviews, focus
groups, direct observation and historical records.
The research model included all risks present in the maritime industry in Saudi
Arabia. These risks were classified in a meaningful way to be addressed and
explained in this thesis. The findings of this study revealed the strategies that
could be used in order to deal with potential risks. It also exposed the reality of
the situation to professionals involved in risk management decisions in the
maritime industry who currently view their companies’ risks management
processes as efficient. Finally, the research model was found applicable to the
maritime firms. The conceptual model for SCRM in this thesis was a combination
iii
of four sections that helped the researcher to discover, identify, evaluate and
present techniques to reduce supply chain risk.
This thesis provides insights into the management of maritime firms risks in
supply chains. The thesis provides a new classification of risk in terms of the
maritime industry. It finds the tools that could help maritime firms to identify
risk. And it prvides the strategies that are suitable to confront risk in maritime
industry.
On the whole, there was no studies found that had researched supply chain risk
management in terms of maritime industry at Kingdom of Saudi Arabia.
Therefore, the research of supply chain risk management using this revealed
methodology is an approach to understand the risks that currently confront
maritime industry.
The increase in global supply chains is associated with increased interconnection between suppliers and manufacturers, leading to greater dependence between supply chain companies and a greater level of complexity. So, in spite of its great benefits, it makes them more vulnerable and with higher levels of risk. These risks must therefore be adequately identified and evaluated in order to carry out effective risk management to take the necessary measures to mitigate them. Risk management must be an ongoing process that helps the implementation of a company's strategy. We must methodically address all the risks associated with the activities that frame the company in the supply chains and provide the level of risk in the organization. In this sense, the objective of this article is to identify the main quantitative methods for the management of risks in supply chains through a systematic review of the literature based on a research methodology to that effect. This analysis has identified the main qualitative / quantitative, simple / integrated methods that have been used in the corresponding stages of the risk management cycle (identification, assessment, mitigation, monitoring) as well as the main areas of application. As a result, the most explored stage has been the risk assessment and in particular the evaluation of the risk of supply. As far as applications are concerned, manufacturing supply chains have attracted more attention, while service supply chains are still little explored. Finally, new opportunities and challenges are identified as future lines of research.
Purpose
Supply chain risk (SCR) has increasingly attracted academic and corporate interest; however, the SCR debate in academic literature is rather limited to case- and location-specific studies. Hence, the purpose of this paper is to utilize a systematic literature review (SLR) to explore the SCR research trends and gaps within the management literature.
Design/methodology/approach
To achieve the research objective an SLR, looking into 25 years since 1990, into supply chain risk management (SCRM) was conducted, which resulted in 114 papers.
Findings
While the SCRM literature is growing, results from the SLR identified limited organized understanding of what constitutes a holistic SCR process, and high reliance of particular categories for SCR, such as the high reliance on specific country settings (the USA and the UK); limited presence of cross competitive SCR process analysis and challenges in developing conceptual SCR frameworks.
Research limitations/implications
The SCR embeds categories of location, scope of supply chain, risk management tools, and the industry sectors involved. The search for related publications was mainly used from a wide range of coverage from accountancy to design in SCR; hence, although there is indication to specific industries, and foci of risk, this could be explored further.
Practical implications
This review of SCRM identifies various research gaps and directions for future research to develop theory and a practical understanding of SCR.
Originality/value
The current literature on SCR has been assessed based on its definition and utilization. The current paper bridges this gap by synthesizing the diverse academic journal papers into the categories based on the design continuum, relationship continuum, process continuum and economic continuum. In addition, it highlights the gaps in industry context, theoretical contribution, geographic location, and research methods applied and addresses the scope for further research.
This paper examines the ‘rule of law’ and ‘justice’ implications of using Online Dispute Resolution (ODR) platforms as technology-mediated interfaces for small claim dispute resolution in construction projects. Data is obtained from a questionnaire survey of construction stakeholders, administered using direct non-random sampling of professional contacts with the authors. Surprisingly, study findings do not suggest any ‘rule of law’ and ‘justice’ implications for small claim ODR. Tentatively, this conclusion supports wider use of ODR. The originality of the study is that although there is considerable academic and practitioner interest in various alternative forms of dispute resolution (ADR), both practitioner use and academic study of ODR remain sparse. Thus, this study serves as a foundation for further empirical exploration of ODR as a nascent component of ADR.
The paper aims to understand buyer-supplier power and dependence scenarios following a risk sharing contract. The study develops a supply chain risk sharing contract to mitigate demand uncertainty and price volatility related risks in a globalised business environment. An integer programming model is developed and analysed following an automotive case study to generate insights into buyer-supplier relationships. Multiple buyer-supplier power and dependence scenarios are considered to reflect the possible leverages involved in the decision-making. The situational strength evaluated through buyer-supplier power and dependence illuminates the inherent complexity in contract negotiation. Thus there is an evident need to develop risk sharing contracts for mitigating global risks. The developed relationship framework and risk sharing contract model are expected to help SC managers in better understanding behavioural aspects during contract negotiations. The risk sharing contract model proposed here also contributes to a potentially novel perspective on existing theory in buyer-supplier power and dependence by providing a relational perspective on the dynamics of supply chain design and collaboration.
In fall 1994, the largest third-party contract in U.S. history, valued at $100 million annually, was announced. Less than a year later this relationship between a Fortune 500 company and its third-party provider, described as a partnership by the parties involved, was dissolved. In addition, a widely publicized logistics relationship between Laura Ashley and Federal Express is not working as expected and is being reevaluated. Failures such as these are expensive in terms of both the direct costs of implementing and managing the partnership as well as the lost opportunity to devote resources to a more successful relationship. Yet, the complexity of the business environment is likely to mean that executives will continue to look at relationships with third-party providers as a way of achieving a sustainable competitive advantage with scarce resources.
As evidenced by recent failures, not all of these so-called partnerships are successful. One reason is that at least one of the parties has unrealistic expectations relating to the structure or outcomes of the relationship. While a number of models are available that indicate whether outsourcing should be used and that specify vendor selection criteria, none provides a systematic method for explicitly identifying and agreeing to relationship expectations. In other words, the models do not clearly show whether the most appropriate type of outsourcing relationship is a partnership or some other form. In fact, outsourcing arrangements are often assumed to be partnerships. After the decision to outsource has been made, however, the key issue of how the relationship should be structured remains.
The model presented here can be used to determine not only whether a partnership should be used but also the most appropriate type of partnering for a given situation. Our research has shown that there are gradations of partnership. If the level of partnership is not matched to the environment, serious inefficiencies or lost opportunities are likely. An in-depth case description of the model in a relationship between a consumer appliance manufacturer and a third-party logistics provider is presented.
Many companies leave risk management and business continuity to security professionals, business continuity planners or insurance professionals. However, the authors argue, building a resilient enterprise should be a strategic initiative that changes the way a company operates and increases its competitiveness. Reducing vulnerability means both reducing the likelihood of a disruption and increasing resilience. Resilience, in turn, can be achieved by either creating redundancy or increasing flexibility. Redundancy is the familiar concept of keeping some resources in reserve to be used in case of a disruption. The most common forms of redundancy are safety stock, the deliberate use of multiple suppliers even when the secondary suppliers have higher costs, and deliberately low capacity utilization rates. Although necessary to some degree, redundancy represents pure cost with no return except in the eventuality of disruption. The authors contend that significantly more leverage, not to mention operational advantages, can be achieved by making supply chains flexible. Flexibility requires building in organic capabilities that can sense threats and respond to them quickly. Drawing on ongoing research at the MIT Center for Transportation and Logistics involving detailed studies of dozens of cases of corporate disruption and response, the authors describe how resilient companies build flexibility into each of five essential supply chain elements: the supplier, conversion process, distribution channels, control systems and underlying corporate culture. Case examples of Land Rover, Aisin Seiki Co. (a supplier to Toyota), United Parcel Service, Dell, Baxter International, DHL and Nokia, among others, are offered to illustrate how building flexibility in these supply chain elements not only bolsters the resilience of an organization but also creates a competitive advantage in the marketplace.
International crime and terrorism has become a major concern to both governments and businesses, due to the vulnerability of international supply chains of being either a direct target for crime and terrorism, or a means to deliver weapons. In response to this new threat, several voluntary supply chain security programs have been created or modified. This paper analyses and compares nine different security initiatives around the world, to establish their compatibility and identify the security measures that may become mandatory in the near future. The study is carried out as an archive study, supported by direct input from various program experts.
This article examines the developmental process of cooperative interorganizational relationships (IORs) that entail transaction-specific investments in deals that cannot be fully specified or controlled by the parties in advance of their execution. A process framework is introduced that focuses on formal, legal, and informal social-psychological processes by which organizational parties jointly negotiate, commit to, and execute their relationship in ways that achieve efficient and equitable outcomes and internal solutions to conflicts when they arise. The framework is elaborated with a set of propositions that explain how and why cooperative IORs emerge, evolve. and dissolve. The propositions have academic implications for enriching interorganizational relationships, transaction cost economics. agency theories, and practical implications for managing the relationship journey.
The study of trust has occupied scholars from a number of disciplines, who have made limited attempts at integrating the different streams. One reason for lack of integration is that no clear definition of trust exists. In this article we grapple with this issue by going back to first principles to derive a mathematically precise and statistically rigorous definition of trust. In giving a rigorous meaning of trust, we also capture the key elements of the concept as highlighted by various disciplinary lenses. Our definition of trust, although rationally based, is consistent with many of the findings of earlier behavioral and sociological research. Its contribution is in adding precision and richness to our understanding of how trust is created and maintained in various social and economic interactions.
This paper gives an overview of major issues in trust research, identifying common foundations and multiple constellations of organizational trust. In doing so, the paper also addresses important implications of theory development and empirical research. First, it provides a historical sketch of different approaches to understanding the phenomenon of trust, drawing upon various social science disciplines. Second, it discusses different levels of analysing trust in organizational settings. Third, it deals with important issues of operationalisation and measurement of organizational trust. Finally, it briefly summarises the contents of the five papers that follow this introductory paper in the special issue of JMP on "The micro-foundations of organizational trust".
Trust is a key factor in the establishment of long-term relationships between service representatives and their customers. Prior research has documented that both “person-related” (e.g. empathy, politeness and customer/service representative similarity) and “offer-related” (customization, competence, reliability and promptness) service representative characteristics have an impact on trust. However, the relative importance of these characteristics, and in some cases the direction of their relationships with trust, has varied across studies. In this paper, we posit a contingency model of trust, suggesting that the effects of the above variables on trust are moderated by length of the customer/service provider relationship. Our model is tested in a business-to-business context by means of a mail survey involving 677 small business owners. The small business owners provided data about their relationships with their insurance industry service providers. Our results demonstrate how service representatives and firms can work toward the establishment of trust with their clients under varying market conditions.
Purpose
The purpose of this paper is to show that a proactive sourcing strategy can be just as important as a proactive marketing strategy in achieving sustainable competitive advantage.
Design/methodology/approach
The paper reports on action research carried out in the UK beef industry, with a focus on the food service supply chain. The methodology is inductive and qualitative, using a multi‐case, multi‐site approach. The supply chains presented in the case were analysed from farm gate to consumer, interviewing multiple participants at each stage of the supply chain.
Findings
This study offers some partial support for configuration‐based approaches. However, the case also raises some doubts about the validity of configuration thinking, as it is not the complexity or ambiguity of the relationships that is key in the case, but the fact that brand ownership and contracts create property rights for their owner that create a relatively permanent power resource for Pioneer, the case study company, in its market struggle with its customers and competitors. This interpretation supports the power and property rights views of strategic management rather than the configuration approach.
Research limitations/implications
The research is based upon in‐depth knowledge of the UK beef and red meat industry. It would be beneficial if further in‐depth studies could be undertaken in other agri‐food supply chains to further validate the findings.
Practical implications
Although the focus of this article has been upon choosing appropriate sourcing strategies, the case study has also illustrated the importance for business managers of linking this sourcing strategy with a firm's marketing, and more specifically its branding strategy.
Originality/value
The paper analyses the key differences in demand, supply and power and leverage characteristics in the food service beef supply chain to highlight the need for government agencies, think‐tanks and industry participants to have a more robust understanding of industries before advocating the adoption of any one approach for all UK agri‐food supply chains. This paper should be of value to researchers in this area and to managers responsible for strategy formation in UK agri‐food supply chains.
Purpose
This paper traces the evolution of logistics and supply chain management (SCM) and projects the state of the field in the near term with the attendant challenges for those who must plan and control logistics/supply chain operations.
Design/methodology/approach
Key events that created business logistics are noted, the views of the field leaders are identified and assessed, and research outcomes are compared as a basis for how logistics/SCM is viewed today.
Findings
The scope of the field has broadened bringing new challenges for researchers and managers, but the broader scope was envisioned from its formation. Improvements in information technology and the just‐in‐time philosophy are the principal drivers for realizing the potential of boundary‐spanning channel management.
Research limitations/implications
The conclusions and projections are based on the author's interpretation of the events surrounding logistics and the supply chain as they have occurred over the last 45 years.
Practical implications
Researchers and managers should find the projections of this paper valuable in defining their action agendas for improving logistics/supply chain operations. Principal among the challenges is the need for a boundary‐spanning accounting system, for a mechanism of sharing the benefits of cooperation among supply chain members, for enhanced relationship skills of logistics/supply chain managers, and for improved methods of estimating the revenue contribution potential of the supply chain.
Originality/value
The personal observations of the author lend a unique perspective as to how the logistics/supply chain has developed and what challenges face researchers and managers if the future potential of the field is to be realized.
Purpose
The primary purpose of this study is to examine the relationships between the level of trust and several relevant constructs drawn from transaction cost analysis (such as asset specificity, behavioral uncertainty, and partner's opportunism) and social exchange theory (informational sharing).
Design/methodology/approach
A comprehensive questionnaire based on various theories on trust and commitment was mailed in 2001 to supply chain practitioners in the Midwest region. A total of 171 valid returns were received out of 1,800 mailings (9.5 percent). A path analysis was used to estimate parameters or relationship between relevant constructs and trust, and trust with the level of commitment.
Findings
A firm's trust in their supply chain partner is highly associated with both parties’ specific asset investments and social exchange theory. Information sharing has a primary impact on reducing (improving a partner's uncertainty behavior which, in turn, would improve the level of trust. Finally, the level of commitment is strongly related to the level of trust, supporting Morgan and Hunt's hypothesis.
Research limitations/implications
This research used supply chain practitioners in one region as a target population. It is highly recommended to duplicate this study in other regions to verify the findings.
Originality/value
This is the first research paper linking various variables to trust and trust to commitment in supply chain management using path model.
On the morning of September 11th, 2001, the United States and the Western world entered into a new era - one in which large scale terrorist acts are to be expected. The impacts of the new era will challenge supply chain managers to adjust relations with suppliers and customers, contend with transportation difficulties and amend inventory management strategies. This paper looks at the twin corporate challenges of (i) preparing to deal with the aftermath of terrorist attacks and (ii) operating under heightened security. The first challenge involves setting certain operational redundancies. The second means less reliable lead times and less certain demand scenarios. In addition, the paper looks at how companies should organize to meet those challenges efficiently and suggests a new public-private partnership. While the paper is focused on the US, it has worldwide implications.
Relationship marketing-establishing, developing, and maintaining successful relational exchanges-constitutes a major shift in marketing theory and practice. After conceptualizing relationship marketing and discussing its ten forms, the authors (1) theorize that successful relationship marketing requires relationship commitment and trust, (2) model relationship commitment and trust as key mediating variables, (3) test this key mediating variable model using data from automobile tire retailers, and (4) compare their model with a rival that does not allow relationship commitment and trust to function as mediating variables. Given the favorable test results for the key mediating variable model, suggestions for further explicating and testing it are offered.
This paper gives an overview of major issues in trust research, identifying common foundations and multiple constellations of organizational trust. In doing so, the paper also addresses important implications of theory development and empirical research. First, it provides a historical sketch of different approaches to understanding the phenomenon of trust, drawing upon various social science disciplines. Second, it discusses different levels of analysing trust in organizational settings. Third, it deals with important issues of operationalisation and measurement of organizational trust. Finally, it briefly summarises the contents of the five papers that follow this introductory paper in the special issue of JMP on "The micro-foundations of organizational trust".
present the conceptual and empirical development, including validation, of a measure of organizational trust / organizational trust refers to the degree of trust between units of an organization or between organizations / the core of our argument is that trust reduces transaction costs in and between organizations / present the rationale for the approach . . . taken for the development of the OTI / describe the exact procedures followed and the results produced in developing and validating the OTI
appendix a: research items in instrument to measure interorganizational trust / appendix b: Organizational Trust Inventory—Long Form (OTI-LF) / appendix c: Organizational Trust Inventory—Short Form (OTI-SF) (PsycINFO Database Record (c) 2012 APA, all rights reserved)
Relationship marketing—establishing, developing, and maintaining successful relational exchanges—constitutes a major shift in marketing theory and practice. After conceptualizing relationship marketing and discussing its ten forms, the authors (1) theorize that successful relationship marketing requires relationship commitment and trust, (2) model relationship commitment and trust as key mediating variables, (3) test this key mediating variable model using data from automobile tire retailers, and (4) compare their model with a rival that does not allow relationship commitment and trust to function as mediating variables. Given the favorable test results for the key mediating variable model, suggestions for further explicating and testing it are offered.
This article approaches the industrial buyer's vendor selection decision process as one of problem solving in the face of probabilistic outcomes, i.e., risk. The findings of the national experiment reported here suggest that methods of handling risk in vendor selection decisions are mediated by loyalty to current vendors and by the way the industrial buyer perceives or frames the decision problem.
A model of distributor firm and manufacturer firm working partnerships is presented and is assessed empirically on a sample of distributor firms and a sample of manufacturer firms. A multiple-informant research method is employed. Support is found for a number of the hypothesized construct relations and, in both manufacturer firm and distributor firm models, for the respecification of cooperation as an antecedent rather than a consequence of trust. Some implications for marketing practice are discussed briefly.
This article approaches the industrial buyer's vendor selection decision process as one of problem solving in the face of probabilistic outcomes, i. e., risk. The findings of the national experiment reported here suggest that methods of handling risk in vendor selection decisions are mediated by loyalty to current vendors and by the way the industrial buyer perceives or frames the decision problem.
An experiment is used to investigate the effects of uncertainty on patterns of exchange. The role of reputation as an important factor related to the formation of stable exchange relations is examined. In addition, some of the consequences of different patterns of exchange-in particular, how different exchange conditions lead to different levels of trust among trading partners-are investigated. The results of the experiment indicate significant differences in the level of commitment, concern for one's own and others' reputation, and the level of trust that emerge when uncertainty (in the form of information asymmetries) is varied.
Purpose
When a supply chain initiative is taken up by a firm a number of issues come up during implementation. The purpose of this paper is to identify some of the major issues related to such implementation and draw out practices from literature to serve as remedies for these issues.
Design/methodology/approach
The paper starts by suggesting a broad framework for implementing supply chain management (SCM) in a firm. This consists of strategy formulation, identification of areas for improving material flow, identifying issues in these areas, and finally performance evaluation in order to determine how well the supply chain initiative has been implemented. Subsequently, the paper follows this framework step by step and in the process identifies the issues likely to arise in the process of SCM implementation. By reviewing current literature it suggests how these issues can be handled effectively.
Findings
The major issues related to SCM implementation are in the areas of logistics, outsourcing/partnerships, and environment. Apart from these issues the prerequisite for implementation is formulation of strategy while the final step in the exercise is performance evaluation. These two activities need to be handled carefully also.
Practical implications
The paper has important implications for the industry since it tries to bring out practices which would help in successful implementation of SCM in a firm. This is more so for the process industry which has lagged behind its counterparts in other industries with respect to implementation of SCM.
Originality/value
The value of this paper which is based on extensive literature review lies in: suggesting a framework to implement SCM, identifying likely issues, and suggesting ways to handle them. The summary diagrams would definitely facilitate understanding. This can be of interest to SCM personnel in the industry. Major contributions by researchers relevant to handling the issues have been tabulated at the end which can be useful for academicians.
Organizations frequently adopt formal rules, contracts, or other legalistic mechanisms when interpersonal trust is lacking. But recent research has shown such legalistic ''remedies'' for trust-related problems to be ineffective in restoring trust. To explain this apparent ineffectiveness, this paper outlines a theory that distinguishes two dimensions of trust-task-specific reliability and value congruence-and shows how legalistic mechanisms respond only to reliability concerns, while ignoring value-related concerns. Organizational responses to employees with HIV/AIDS are used as a case illustration that supports the theory's major propositions. The paper concludes with an agenda for future research.
A model of distributor firm and manufacturer firm working partnerships is presented and is assessed empirically on a sample of distributor firms and a sample of manufacturer firms. A multiple-informant research method is employed. Support is found for a number of the hypothesized construct relations and, in both manufacturer firm and distributor firm models, for the respecification of cooperation as an antecedent rather than a consequence of trust. Some implications for marketing practice are discussed briefly.
The customer-supplier dyadic exchange and relationship marketing are well-established research areas in the marketing discipline. Supplier and customer relationships or partnerships in logistics and supply chain management have also received attention amongst academics since the late 1980s. The literature has encouraged firms to develop customer service policies to satisfy customer needs and promote long term and profitable relationships, and has documented benefits for firms that do so. However, empirical studies in logistics customer service have revealed a different situation. Transaction-oriented dimensions such as availability, timeliness and price appear to be more important to customers than relationship dimensions that include trust, integrity and commitment. This paper briefly discusses the importance of customer service to relationships and then considers the nature of relationships in marketing and logistics. Then, the dichotomy between customer attitudes and behaviour regarding transactions and relationships is explored on conceptual and empirical levels from extant literature. Next, a model is presented as a potential research framework to address such dichotomous attitudes and behaviour of customers. Finally, the paper concludes with suggestions for future research using the model.
Supply chain risk management (SCRM) is of growing importance, as the vulnerability of supply chains increases. The main thrust of this article is to describe how Ericsson, after a fire at a sub-supplier, with a huge impact on Ericsson, has implemented a new organization, and new processes and tools for SCRM. The approach described tries to analyze, assess and manage risk sources along the supply chain, partly by working close with suppliers but also by placing formal requirements on them. This explorative study also indicates that insurance companies might be a driving force for improved SCRM, as they now start to understand the vulnerability of modern supply chains. The article concludes with a discussion of risk related to traditional logistics concepts (time, cost, quality, agility and leanness) by arguing that supply chain risks should also be put into the trade-off analysis when evaluating new logistics solutions – not with the purpose to minimize risks, however, but to find the efficient level of risk and prevention.
This paper extends previous literature on the greening of supply chains by giving explicit consideration to two main areas – the role of risk, and the motives for undertaking different sorts of environment-related supplier initiatives. A model is presented which describes the extent and type of environment-related supplier initiatives that may be undertaken by firms as a result of the interaction of the perceived losses to the firm associated with inaction, and the actual level of strategic purchasing in the firm.
This paper discusses the experimental work in modelling uncertainty under a multi-echelon enterprise resource planning (ERP)-controlled manufacturing system. A new method known as part tagging (Ptag) is successfully implemented in a material requirements planning (MRP) planning architecture, which is used to generate a planned order release (POR) schedule for controlling purchase and manufacture operations in a batch manufacturing system using simulation. One of the most important findings is that parts tardy delivery (PTD) is a more responsive performance measure compared with finished products tardy delivery (FPTD); therefore it is recommended that PTD should be measured to reveal the unmasked effects of uncertainty. The main conclusion and implication from this experiment are that an ERP-controlled manufacturing enterprise should diagnose for uncertainty in a way that produces significant effects on delivery tardiness, so that reduction of their levels will significantly minimise tardy delivery.
Purpose – To explore the role of trust and risk in consumers' apparent reluctance to convert from internet browsers to potential online purchasers. To consider how marketing planners in that environment can devise strategies that balance perceptions of risk against perceptions of trustworthiness. Design/methodology/approach – The literatures of trust and risk were reviewed, with a focus on internet usage and online buying. Six components of organisational trust are used as the framework for a discussion of perceived risk, and of the tactics available to counterbalance perceptions of the riskiness of online buying with evidence of the trustworthiness of the online merchant. Findings – The conclusion is that marketing planners can overcome the barrier of perceived risk if they find the means to generate sufficient trust among their potential customers. Research limitations/implications – This presents no empirical evidence but does draw together the work of others and build from it a framework for understanding how the twin concepts of risk and trust work together. Fellow researchers are invited to test its propositions experimentally. Practical implications – Planners of marketing campaigns for online suppliers of products and services can use the framework presented in this paper as a basis for the formulation of effective strategies to convert current web-browsers into future internet shoppers, and thereby benefit to the full from the advantages of online distribution channels. Originality/value – Provides a general overview of a topic that is clearly relevant to gatherers of marketing intelligence and planners of marketing strategy, in the rapidly changing online environment.
This research focuses on the construct of perceived vulnerability, which is based on the gap between perceived trust and perceived dependence in business relationships with suppliers and customers. The outcome of this study is generated from the empirical findings of a survey in the Swedish vehicle industry. These empirical findings indicate that there is to a large extent a significant association between companies' perceived trust and dependence in business relationships towards their suppliers and customers, i.e. that trust is important in lean business relationships. The contributions of this research are a generic conceptualisation of the vulnerability construct, a see-saw model of perceived vulnerability and a typology of perceived vulnerability scenarios in business relationships.
The notion of risk is receiving greater attention in research on supply chain management by academics and practitioners alike. As firms collaborate and combine forces to compete as extended enterprises against other integrated supply chains, risk is linked to the interdependence among supply chain partners. Academic interests appear to focus mostly on the risks associated with logistics and its impact on the timely delivery of goods. Beyond these concerns, the events of 9/11 have heightened consideration for supply chain risks related to possible security breaches and terrorism. This paper highlights six areas of supply chain-related risks. It discusses these risks at length, showing how they are endemic to the extended enterprise, and attempts to develop a typology for categorizing them. It also addresses the implications for supply chain managers as they balance a concern for risk with their efforts to search for, select, nurture, and manage their set of supply chain partners.
One challenge for multinational organizations is to manage inter-organizational relationships with customers, collaborators, competitors, governments and other important stakeholder organizations. Negotiations can be seen as a process to manage interdependence and conflicts of interests between parties. As a result, negotiation analysis and theory provide a useful framework to analyze dynamics of relationship- and trust-building and hence are increasingly important for the understanding of inter-organizational relationships. This paper explores the set of strategies managers can implement in negotiations to establish relationships based on mutual understanding and trust in order to reach satisfactory agreements and manage inter-organizational dependencies and its associated threats.
The instabilities of strategic alliances have been examined in the literature through a number of theoretical approaches. Alliance instabilities refer to major changes or dissolutions of alliances that are unplanned from the perspective of one or more partners. Although the literature identifies certain characteristics of strategic alliances that may lead to their unplanned dissolution, the extent of our understanding of this subject appears to be fragmented and incomplete. In this article we propose a comprehensive framework for adequately understanding alliance instabilities based on the notion of internal tensions. We suggest that strategic alliances are sites in which conflicting forces develop and which can be viewed as being constituted by three key pairs of competing forces--namely, cooperation versus competition, rigidity versus flexibility, and short-term versus long-term orientation. This tensions framework helps us in explaining the intrinsic vulnerability of alliances in terms of a wide range of internal contradictions and enables us to examine, in an integrated manner, the incidence, dynamics, and eventual dissipation of the inherent instabilities. We discuss the interrelationships among the different internal tensions and their impacts on different types of strategic alliances. We also examine the termination of alliances through mergers/acquisitions and dissolution. Finally, we suggest ways to empirically test the various ideas and propositions developed here and indicate directions for further research.
Reports an empirical study, conducted within the context of Singapore, which examines the motives that stimulate women into becoming business owners. Aims to uncover the characteristics of a typical woman entrepreneur in Singapore; the motivational needs of women entrepreneurs; and the factors influencing the motivational needs of women entrepreneurs. Uses the Need Theory as a theoretical framework to study the motivation of women entrepreneurs. Hypothesizes that business ownership is a manifestation of four needs - achievement; affiliation; autonomy; and dominance. Concludes that women entrepreneurs are motivated by a high need for achievement, a slightly high need for dominance and moderate needs for affiliation and autonomy. Finds women entrepreneurs demonstrate a higher need for achievement and dominance than women employees but significant difference in the needs for affiliation and autonomy.
A significant feature of business management in the 1990s has been the practice of outsourcing. Firms and public sector bodies have reconsidered where the boundary of their organisation should be set, and passed to third parties responsibility for many business activities. However, many firms have been disappointed with the results they have achieved from outsourcing, not least when it has concerned high profile functions such as information technology. Part of the reason for this disappointment, it is argued, lies in the methodologies (or lack of them) which have been employed by managers. Very few have taken into account the main risks of the practice or identified the required safeguards. This article seeks to address these shortcomings by presenting a model for effective risk management. The article also provides a case study – outsourcing at Hewlett-Packard – which shows what can be achieved if managers use the right criteria for their decisions.
Purchasing organizations use various strategies and techniques to minimize the chance and impact of detrimental events occurring in the supply base. Supply risk assessments are a necessary first step in managing those risks. An analysis of in-depth interviews with purchasing professionals from nine companies indicates that purchasing organizations often create contingency plans, and implement process-improvement and buffer strategies in response to perceived supply risks discovered in assessments. Even though risk assessments, contingency plans, and risk management efforts are generally acknowledged as being important, many of those interviewed believed that there was not enough done in their organizations to mitigate supply-related risks.
Provides an empirically based discussion of the uncertainties faced
by typical manufacturing firms and how they attempt to accommodate that
uncertainty through increased manufacturing flexibility. Suggests a
dynamic equilibrium model which helps to illustrate the trade-offs and
interrelationships between the manufacturing flexibility inherent in a
firm's processes and infrastructure, the uncertainties faced by the
firm, and the way in which the firm's processes and infrastructures are
buffered with inventory, lead time, and capacity. In addition, suggests
a set of auditing checklists which build on earlier work by Skinner.
This process helps the firm to identify its relative position in terms
of the dynamic equilibrium model and also to identify long-term
objectives for improving its competitiveness within the marketplace.
The classical exchange theorists proposed that trust is more likely to develop between partners when exchange occurs without explicit negotiations or binding agreements. Under these conditions, the risk and uncertainty of exchange provide the opportunity for partners to demonstrate their trustworthiness. This study develops the theoretical implications of this proposition and conducts an experimental test that compares levels of both trust and commitment in two forms of direct exchange, negotiated and reciprocal. The results support the classical proposition, showing that reciprocal exchange produces stronger trust and affective commitment than negotiated exchange, and that behaviors signaling the partner's trustworthiness have greater impact on trust in reciprocal exchange.
Scholars in various disciplines have considered the causes, nature, and effects of trust. Prior approaches to studying trust are considered, including characteristics of the trustor, the trustee, and the role of risk. A definition of trust and a model of its antecedents and outcomes are presented, which integrate research from multiple disciplines and differentiate trust from similar constructs. Several research propositions based on the model are presented.