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Minimizing Supply Chain Disruption Risk Through Enhanced Flexibility
Abstract
Purpose
The purpose of this paper is to examine the use of a strategic approach (contingency planning) to minimize risk exposure to a supply chain disruption. Specifically, the relationship between several attributes of a contingency planning process and flexibility are examined.
Design/methodology/approach
This effort develops a model that will provide both researchers and practitioners a means of determining the attributes with the highest relationship to flexibility. The model is then tested using multiple regression techniques.
Findings
Based on the sample used in this survey, top management support, resource alignment, information technology usage, and external collaboration provide the largest contributions to flexibility. Flexibility has been shown to enhance the ability to minimize risk exposure in the event of a supply chain disruption.
Research limitations/implications
In this research effort, the multiple regression results produced an R ² of 0.45, indicating that additional variables of interest may need to be identified and investigated. Furthermore, a wider range of respondents could make the results more generalizable.
Practical implications
This effort will help to allow managers at multiple levels to understand the primary planning attributes to use to increase flexibility.
Originality/value
The paper develops a model that can be used to identify the specific areas that can lead to improved flexibility. Based on the model, managers, and planners can develop appropriate strategies for minimizing risk exposure in the event of a supply chain disruption.
... Control orientation can reduce supply chain ripple effects after a disruption (Ivanov et al., 2019b). Similarly, flexibility can improve the ability to minimize risks in the event of a SC interruption (Skipper and Hanna, 2009). Duclos et al. (2003) stated that flexibility in the SC includes the need for flexibility among all SC actors and information systems, because SCs' go beyond firms' boundaries, and flexibility strategies must also extend beyond the firm. ...
... Proper contingency planning sets out an action plan for timely and accurately fighting back against various risks (La Londe, 2005). Flexibility is found to be highly effective when preparedness for risk control is high (Skipper and Hanna, 2009). Hence, the second research question: ...
... Disruption risk control has been well acknowledged in the literature (Skipper and Hanna, 2009). Natural and man-made disasters result produce various risks for the supply chain. ...
Drawing upon the contingent resource‐based perspective of supply chain resilience, this study tests whether fourth industrial revolution (4IR) technologies such as big data analytics (BDA) and additive manufacturing (AM) control risks and develop supply chain (SC) resilience under flexible orientation and control orientation. Primary data was collected from 190 respondents in India and the PLS-SEM technique was then used to perform data analysis. The findings indicate that big data analytics and additive manufacturing can aid in risk control and in turn improve the SC resilience of a firm and further minimize the propagation of the supply chain ripple effect in case of disruption. This study sheds light on firms’ 4IR resources (BDA and AM) that can be useful in developing risk control capabilities to deal with disruptions in supply chains. BDA, in particular, impacts risk intelligence, whereas AM impacts both preparedness and intelligence risk control. Distinguishing between BDA and AM is therefore important when firms are considering which technology to adopt. Therefore, for the sample analyzed, BDA has a prominent role in building risk control and resilience capabilities. These findings are an important contribution to SC risk management theory and this study also creates new research opportunities. Firms need to adopt collaborative planning, forecasting, smart manufacturing, and replenishments initiatives for vulnerable supply chain activities to reduce the SC ripple effect. Lastly, flexible, real-time production helps reduce the SC ripple effect.
... Companies use dynamic capabilities to strategically solve risks and difficulties caused by their inclination to perceive threats and opportunities and make timely resource decisions (Barreto, 2010). Skipper and Hanna (2009) say contingency planning is a unique way for organizations to mitigate risks from unanticipated events. Contingency planning is particularly flexible (Ponomarov, 2012). ...
... The contingency plan must ensure timely delivery and prompt response to reduce hazards. Risk projection, analysis, mitigation, operations maintenance, security, and performance scrutiny are part of good planning (Skipper & Hanna, 2009). Sheffi (2006) suggests that contingency planning should list the roles, processes, responsibilities, and tasks of significant company participants to automatically eliminate unanticipated disruptions. ...
Today, globalization and evolving business practices put organizations under immense pressure to constantly upgrade the product or process, quality, delivery index, performance, responsiveness, and reduce costs. Procurement management is a core activity with implications for an organization's operations, and it is an activity that cuts across all the departments in an organization. The study's main objective was to analyze the influence of vendor management practices on the performance of energy state corporations in Kenya. The specific objectives of the study were to establish the influence of Sourcing on the performance of the energy state corporations in Kenya, to assess the influence of contract management on the performance of the energy state corporations in Kenya, to determine the influence of vendor risk management on the performance of the energy state corporations in Kenya and to assess the influence of supplier performance appraisal on the performance of the energy state corporations in Kenya. Transaction Cost Theory, Agency Theory, Contingency Theory, and Theory of Constraints guided the study. A descriptive research design and a census data collection technique were used with a target population of Kenya's ten energy state corporations. Each firm's heads of procurement, project management, corporate planning, quality assurance, Innovation IT, finance, and operations management were the focus units of perception. Primary data was collected using structured questionnaires distributed to the respondents through the drop-and-pick method. A pilot test was conducted to determine the validity and reliability of the data collection instrument. Data collected from the pilot study was expunged when analyzing the study data. Collected data was checked for completeness, coded, and analyzed with the help of Statistical Package for Social Sciences (SPSS) Version 24 using descriptive statistics, including frequencies, percentages, mean and standard deviation, and inferential statistics, which include regression and correlation analysis. The analyzed data was further presented in tables and figures. The response rate of the study was 82.54%. The study findings revealed that there exists a relationship between vendor management practices and the performance of energy state corporations with a positive correlation coefficient between sourcing (r=0.176), contract management (r=0.086), vendor risk management (r=0.187), and supplier risk management (r=0.447) performance of energy state corporations. The multiple regression analysis further supported the results as a positive and significant relationship existed between vendor management practices and the performance of energy state corporations. The study, therefore, concluded that Sourcing, contract management, vendor risk management, and supplier performance appraisal positively influenced the performance of state energy corporations in Kenya. The study further recommended adopting vendor management practices to boost the performance of Kenya's energy state corporations for effective service delivery
... Firms participate in conventional supply1chain risk1management (for example risk identification1and quantification) 1to lessen the1likelihood of disruptive events (Ponomarov1&1Holcomb, 2009) utilizing techniques, for example, fault and event tree analysis, interpretive structural modelling, and analytical hierarchy process (Fowler1&1Sorgard, 2000;Carson1et al., 2006;Faisal1et al., 12006;Schoenherr1et al., 12008). Simultaneously, disruptions have been perceived as unavoidable occasions in the present violent business climate (Skipper & Hanna, 2009). Hence, it is said that a firm can attempt to mitigate a few risks through customary SC ...
... The findings in this study show that all of the interviewees1agreed that insecurity is a1major challenge to the supply chain in the industry. This supports Skipper and Hanna's argument that disruptions are now accepted as inevitable occurrences in the current unstable economic climate (Skipper & Hanna, 2009); nonetheless, a company can only attempt to reduce some risks through conventional supply chain risk management. By sustaining uninterrupted operation at the required1level of connection and control1over structure and function, resilience1helps a supply chain to be prepared1for events, lessen the1impact of a disruption, 1and enhances its capacity to1recover rapidly from1them (Ponomarov & Holcomb, 2009). ...
This research aims to investigate the role of coopetition as an organizational strategy for supply chain resilience (SCRES) from a developing economy perspective, emphasizing the case of pharmaceutical firms in Nigeria. Its purpose is to understand why the Nigerian pharmaceutical industry does not engage coopetitive strategies in order to build resilience in their supply chains and what can be done to create a change in practice. Three key research questions were formulated to achieve this aim. 1) Why do pharmaceutical companies in Nigeria not adopt coopetition a strategy to build SCRES? 2) What would encourage pharmaceutical companies in Nigeria to adopt coopetition as a strategy to build SCRES? 3) How could pharmaceutical companies in Nigeria implement change in practice to adopt coopetition as a strategy to build SCRES? A qualitative research method was adopted to answer the formulated questions. 1This1was carried out via interviews with fifteen stakeholders in the Nigerian pharmaceutical industry, and analysed using qualitative methods. This approach enables a deeper understanding of experiences, and phenomena.
The result of the study confirmed that although developing economies are aware of the advantages of coopetition in building SCRES including risk-sharing, reduced production and transportation costs, simple sourcing and procurement, and the removal of effort duplication, they however do not adopt the strategy due to lack of trust, unwillingness to share information, and fear of losing control. The outcome also indicates that by creating trust, exchanging information, and sharing resources, the constraints that restrict cooperation can be removed in order to achieve SCRES.
This study contributes to SCRES and coopetition studies by highlighting the factors that must be eliminated or addressed in the current practices for developing economies to adopt coopetition and what needs to be done for coopetition to become workable in building a resilient1supply chain. Finally, the study limitations and recommendations for further studies are provided.
... The growing complexity of managing global supply chains and meeting exacerbating customer requirements has made organizations more aware of their operational and economic vulnerability to threats from the macro environment: every business activity has an inherent risk of unexpected disturbances that can lead to financial losses and in some cases firm closures (Skipper & Hanna, 2009;Scholten & Fynes 2014). Building supply chain resilience can help to reduce and overcome exposure (vulnerability) to risks through developing strategies that enable the supply chain to recover to its original (or an improved) functional state following a disruption (Juttner & Maklan, 2011). ...
... In today's inter-connected world, most organizations recognize the potential risk of experiencing a supply chain disruption (Skipper & Hanna, 2009) caused by, for example, a workforce strike, extreme weather conditions or a truck breaking down (Blackhurst, Dunn & Craighead, 2011). Such disruption can be related to any unplanned and unanticipated event that impacts the normal flow of goods, material and/or services (Craighead, Blackhurst, Rungtusanatham & Handfield, 2007). ...
... In the context of SCM, flexibility is the capability to adapt to new, different, or changing requirements (Skipper & Hanna, 2009). Factors that enable supply chain flexibility include strong supply chain relationships, contracts that allow for changes in delivery schedules, manufacturing facilities to produce multiple products, redundancy with unused resources, and a versatile workforce (Johnson et al., 2013). ...
... Furthermore, flexibility is an inherent part of resilience (Peck, 2004). It ensures that changes caused by the risk event are absorbed by the supply chain through effective responses (Skipper & Hanna, 2009). In addition, it has been suggested that flexibility can be an organic capability for detecting disruptions, which could enhance the risk event preparedness dimension (Sheffi & Rice, 2005). ...
This research aims, through a multi-perspective and multidisciplinary approach, to identify the key dimensions as well as the scale of measurement of the enterprise supply chain resilience for an in-depth understanding of the concept. This is among the first empirical research examining the key dimensions and appropriate measurement scale of enterprise supply chain resilience to address disruptions induced by unavoidable risk events. A detailed review of the literature was conducted to identify the dimensions of the construct under study. Then, a measurement instrument was developed from a set of items. The questionnaire was purified through a pretest, a pilot test, and reliability and validity tests. Data were collected from a final sample of 150 senior and middle managers, whose responses were considered for confirmatory factor analysis using SPSS Amos 22. The research results showed that the enterprise supply chain resilience construct is composed of seven distinct dimensions, including collaboration, alertness, preparedness, visibility, robustness, flexibility and velocity. Then, a measurement instrument containing measurement items for each of said dimensions was empirically validated. This research develops and validates a structured and comprehensive measurement scale for the concept under study while identifying measurement items that can guide further theoretical testing of this concept and thereby dilute the dimensional and measurement confusions surrounding this theoretical concept. Implications for Central European audience: This research develops and validates a structured and comprehensive measurement scale for the concept of firm supply chain resilience while identifying measurement items that can guide subsequent theoretical testing and thus dilute the dimensional and measurement confusions surrounding this theoretical concept.
... The flexibility of the supply chain can be the cornerstone of an organization's ability to respond faster than its competitors, thus placing the organization in a position of competitive advantage (Hall et al., 2010). Open information sharing is the glue that keeps supply chains together, it is not only the basis for coordinating supply chains, but also makes supply chain decisions more flexible, thereby improving organizational performance (Skipper & Hanna, 2009). In addition, scholars have also explored the impact of information technology capabilities on supply chain emergency management, arguing that the visibility and traceability of information technology can greatly improve risk management (active management or reactive risk response) (Ghadge et al., 2012). ...
... Blome & Schoenherr, 2011;Jüttner & Maklan, 2011;Trkman & McCormack, 2009), and so on. Finally, individual literatures adopted empirical research methods(Hall et al., 2010;Nezih & Andres, 2010;Skipper & Hanna, 2009).In the research on the source of supply chain interruption risk, scholars have analyzed it from different perspectives. From macro to micro levels, researchers believe that the sources of risk include environmental risk, organizational risk, and personal risk(Ellis et al., 2011;Rao & Goldsby, 2009).Ellis et al. (2011) believed that uncertain factors such as geographic political factors, supply factors, product factors, and natural disasters would cause supply chain fluctuations, while the instability of organizational structure, the degree of organizational control, and buyer strategies would all affect supply chain stability, butRao and Goldsby (2009) proposed that any organization or project, when faced with the same risk, may not necessarily produce the same results, because the key variables of any project and the task complexity of each dimension are not consistent. ...
Supply chain disruptions have a significant negative impact on organizational performance, and while companies seek to mitigate the impact of disruption risks, supply chain members propose contingency governance measures from different perspectives to build resilient supply chain systems. However, there is no clear governance consensus on supply chain contingency governance, nor is it clear what research themes exist in this area, so to advance the scientific debate on this topic, this paper presents a systematic review of the literature. Based on the core literature base of Web of Science (WoS), screening 3791 academic publications closely related to supply chain emergency governance as research objects, using visual measurement tools to conduct descriptive statistical analysis and cluster analysis of the literature, summarizing the research on supply chain emergency governance. The results found that the literature in the field of supply chain emergency governance continues to rise, and with the outbreak of the COVID‐19, the number of publications in this field reached a record high in 2021. In the cluster analysis of the literature, supply chain management, blockchain, and emergency response research under the COVID‐19 ranked in the top three research themes. This paper provides a literature review for these three major clusters and summarizes the research on emergency governance under different themes. Finally, future research directions in this area are proposed based on the gaps and limitations of existing research.
... The flexibility in relationships among companies was studied by) Norrman and Jansson (2004); Craighead et al. (2007); Knemeyer et al. (2009);Skipper and Hanna (2009) and, Swierczek (2018). The indicated authors have (stressed) highlighted the following activities: introducing online activities, renegotiation of contracts with banks, renegotiation of contracts and agreements with co-operators (suppliers/ customers), modification of the supplier base, searching for new clients/orders, modification in logistics and transport services for contractors. ...
... The flexibility in relationships among companies covers the following activities: introducing online activities, renegotiation of contracts with banks, renegotiation of contracts and agreements with co-operators (suppliers/customers), modification of the supplier base, searching for new clients/orders, modification in logistics and transport services for contractors (Knemeyer et al., 2009;Skipper & Hanna, 2009;Swierczek, 2018;Craighead et al., 2007;Norrman & Jansson, 2004). The flexibility within the company covers home-office work entry, company restructuring, reorganization of production processes, modification of the company's offer (Mellat-Parast & Digman, 2008;Huang & Chu, 2010). ...
A global pandemic of coronavirus COVID-19 affects the manufacturing supply chains significantly. This study aims to identify and evaluate the reaction of manufacturing supply chains in using the concept of double-loop learning to mitigate the disruptions induced by COVID-19 at the early stage of pandemic. A two-stage research process has been developed that firstly involves determining the learning pattern of enterprises in industrial supply chains and identifying actions taken. Then, the relationship between taking actions in the field of double-loop learning in the manufacturing supply chains and expecting a change in their market situation, and having knowledge in the field of adaptation to changes caused by the COVID-19 pandemic was examined. The study shows that there is a high level of caution in taking proactive measures in supply chains and a lack of knowledge in the field of adapting industrial supply chains to sudden disruptions caused by the COVID-19 pandemic.
... Using the principal component analysis method, 35 measurable variables were loaded onto seven factors, as shown in Table 4. The total variance explained by the seven factors was 0.786, and the Cronbach's α of each group was higher than the recommended 0.70 benchmark [43], indicating the study sample passed the reliability test. ...
China’s retail industry has vigorously developed an omni-channel retail strategy in the last few years. However, quantitative research on this development remains relatively scarce. This article addresses this by building a theoretical model of the relationships between internal supply chain integration, external supply chain integration and financial performance in omni-channel retailing and then verifies it by using a structural equation model to analyze 356 omni-channel retailers. The results show that in the case of omni-channel retailers, the supply chain’s internal information integration has a significant positive impact on its external information integration and that the supply chain’s internal process and internal organization integration significantly positively impact its external process and external organization integration. And it also shows the supply chain’s external information integration and external organization integration positively impact omni-channel retailers’ financial performance. However, the supply chain’s external process integration is not found to have the same effect on financial performance. This study addresses a theoretical gap in the research on the impact of supply chain integration on firm performance in omni-channel retailing. In addition, it provides suggestions about how omni-channel strategies can be effectively implemented in China’s retail industry.
... The importance of the combined approach between business continuity and risk management processes has already been highlighted in the literature [2,8,12]. This approach is fully applicable in the vulnerable area of the supply chain, as shown by relevant research [9,18,24,28]. In particular, when a supply chain implements risk management along with business continuity practices, it creates a competitive advantage as it continually develops skills to become more resilient [19,20]. ...
This chapter aims to highlight the importance of combining risk and business continuity standardized management systems in the supply chain. For this purpose, a case study is presented of a Greek company active in logistics and dealing with the sale and distribution of medical devices. The company has been certified according to ISO 22301 standard for business continuity and at the same time implements the ISO 31000 standard for risk management. Specifically, this chapter presents how the combined implementation of the standards mentioned above helped the company successfully handle the two most significant crises in the modern history of Greek companies (i.e., the imposition of capital controls and the COVID-19 pandemic). The findings of this chapter show that although these two crises could not have been predicted in time, the existing business continuity plan—previously developed as a result of business impact analysis and risk assessment—helped the company survive and come out more robust in the face of competition.
... Le second cygne noir peut également être d'ordre politique, voire géopolitique. Parmi ceux-ci, le Brexit et la guerre commerciale sino-américaine sont souvent cités par les auteurs du fait d'une rapide montée du protectionnisme et de l'irruption de nouvelles politiques tarifaires contraignantes [45], [89], [97]. Enfin, l'irruption de la COVID-19 constitue un troisième cygne noir du fait de son caractère inédit et généralisé qui a violemment révélé les failles des chaînes d'approvisionnement mondiales. ...
La COVID-19 constitue un cygne noir bouleversant profondément les chaînes d'approvisionnement mondiales. La pandémie, inédite par sa violence et sa rapidité de diffusion, a agi comme un révélateur de la fragilité des chaînes d’approvisionnement et provoqué une remise à niveau complète des stratégies d’entreprises intégrées au réseau. Ce phénomène a amené les chercheurs à étudier la façon dont les entreprises ont géré cette crise et dont elles pourraient adopter des outils pertinents pour améliorer leur résilience face à de nouvelles crises d’ampleur mondiale. L’approche interorganisationnelle apparaît pertinente au
regard de la configuration en réseau des chaînes d’approvisionnement. La collaboration interorganisationnelle permet aux différents acteurs de réagir conjointement à une perturbation de l’écosystème. L’objet de cette réflexion est de dégager un cadre théorique sur la manière dont les entreprises intégrées dans les chaînes d’approvisionnement complexes ont repensé leurs stratégies de collaboration face à la crise de la COVID-19 en termes de partage des
informations, des risques et des ressources. Quels sont les défis auxquels les gestionnaires de la chaîne d’approvisionnement ont été confrontés et par quels moyens peuvent-ils faire usage de la collaboration pour les contourner ? Enfin, comment l’expérience interorganisationnelle de gestion de cette crise majeure peut-elle permettre de concevoir des chaînes d'approvisionnement plus résilientes ?
... As disruptions have been recognized as inevitable events in today's turbulent global business world, organizations have tried to decrease some risks using traditional supply chain risk management (RM) tools including interpretive structural modeling, fault trees and event trees (Skipper and Hanna, 2009). However, a company cannot prevent the development of all disruptions without a proactive and comprehensive approach to supply chain resilience that develops the adaptive ability to address unforeseen disruptions (Pettit et al., 2013;Scholten et al., 2014). ...
Purpose
This study aims to identify and prioritize the key practices and strategies for effective global sourcing and supply chain management (SCM).
Design/methodology/approach
The study uses a combination of Pareto analysis and multi-objective optimization based on ratio analysis research methodology to analyze and establish the relationships among the identified key practices and strategies. Pareto analysis enables organization to prioritize organizational efforts and resources by focusing on the most critical factors.
Findings
The study shows that the “eco-friendly sourcing strategy”, “lean manufacturing” and “tool cost analysis” are the top critical practices and strategy variables for global sourcing and SCM, whereas the “risk management”, “procurement strategy” and “leverage digital solutions” are the critical practices and strategy variables.
Research limitations/implications
The findings of this research can also assist organizations in making informed decisions to optimize their global sourcing and supply chain operations.
Originality/value
By using these methods, this research paper gives valuable insights into the critical practices and strategies that can enhance efficiency, mitigate risks and drive success in global sourcing and SCM. The subjects and elements this study identified will serve as a framework and suggestions for further theoretical investigation and real-world implementations.
... Pertinent examples include the following. minimise risk exposure during supply chain interruptions [26]. These studies discussed resource prioritisation, but did not focus specifically on disasters; they also had the limitation of not providing concrete recommendations. ...
National functions are categories of operations prioritised for restoration when disrupted by emergencies such as disasters. However, the simultaneous restoration of all national functions when some or all are paralysed is limited by time and resources. Delays in the restoration of key functions can lead to public dissatisfaction. Thus, it is necessary to broadly classify national functions and analyse their restoration priorities based on criticality. This study identifies 19 national functions from Republic of Korea’s comprehensive Business Reference Model. A survey was conducted among citizens and officials to determine the criticality of each function. Statistical analyses verified the consistency (Cronbach’s alpha = 0.860) and correlation (average Cramer’s V = 0.107) of the criticality responses across regions. The null hypothesis of no regional differences in the criticality of national functions was accepted, validating their universality. Restoration priorities were derived from these criticality values, with ‘Disaster Safety Response’ as the highest priority and ‘Regional Development’ as the lowest. These results provide foundational data for the post-disaster restoration priorities of national functions and emphasise the need to consider public opinion, needs, and government resource limitations in disaster management planning.
... Flexibility has been defined as "being able to bend easily without breaking" and has thus been defined as an essential component of resilience (Peck, 2006). Flexibility ensures that the supply chain can absorb changes induced by the risk event through appropriate responses (Skipper and Hanna, 2009). As a result, it is the ability to deal with, resolve, and, when necessary, exploit unanticipated emergencies (Jüttner and Maklan, 2011). ...
Wheat is Afghanistan's principal food crop, and sustaining its production is critical to guaranteeing food security and self-sufficiency. Wheat crops contributed approximately 60% to 75% of total calorie consumption in the country. However, as a country that has been at war since 1978, it has been difficult for the wheat production enterprise to keep up with demand in order to feed the population. In order to be resilient in their operations and grow in the face of conflict and war, the players in this industry may have to withstand, survive and adapt to different situations and phenomena within the conflict and war conditions as compared to the normal wheat production context in the peaceful countries. Hence, the objective of this research is to look into the capabilities of the parties involved in wheat crop production in a prolonged war zone. This research was based on a qualitative case study. Interviews, observations, and documents were used to gather the necessary information, which was then analyzed using thematic analysis. This study revealed that ten out of fourteen capability constructs of resilience framework were applicable while four were not applicable in a war zone. This study also found some specific capabilities that wheat crop farmers possess and enable them to produce wheat crops in war conditions. This study provided new information regarding farmers’ capabilities in agriculture production in a war zone.
... Through the principal component analysis method, 22 measurable variables were loaded on four factors, as shown in Table 4. The cumulative variance explained by the four factors was 0.770, and the alpha value of each group was higher than the recommended 0.70 benchmark [92], indicating good reliability. Therefore, 22 variables could be explained by the four factors named in the conceptual model. ...
Although the importance and benefits of logistics integration in omni-channel (OC) retailing have been discussed in the literature, the impacts of logistics integration from the dimension of internal and external logistics remain unknown. To fill this gap, this study aims to investigate the relationships among internal and external logistics integration capabilities, supply-chain integration (SCI), and financial performance (FP) in OC retailing based on the dynamic capability view. An empirical study is conducted based on a survey of 230 OC retailers in China’s market. Factor analysis and regression analysis are conducted to examine the hypotheses of the proposed conceptual model. The quantitative analyses show that the internal logistics integration capability is significantly related to the external logistics integration capability, and they both have positive effects on SCI, while the external logistics integration capability generates a higher impact (i.e., almost 1.5 times that of the internal logistics integration capability). The numerical results also demonstrate that the logistics integration capabilities and SCI have similar positive effects on FP (i.e., all the relevant regression coefficients show values around 0.25), and SCI plays a partial intermediary role in the relationships between logistics integration capabilities and FP. Furthermore, the quantitative evidence addresses the fact that the FP is not influenced by OC retailers’ characteristics, indicating a fair business environment in the OC retail industry.
... A supply chain with stronger response capability enables rapid allocation of internal resources in an unpredictable environment, continuous improvement in product J o u r n a l P r e -p r o o f and service quality, and response capability to market demand, creating higher SCP (Han et al., 2020;Chowdhury and Quaddus, 2017). At the same time, the companies with high response capability tend to be more likely to collaborate horizontally and vertically with their supply chain partners to build more robust supply chain collaboration networks, which can reduce supply chain vulnerability (Skipper and Hanna, 2009) Meanwhile, supply chain collaboration helps supply chain partners to jointly develop business continuity plans and operational guidelines to reduce the level of endogenous risks. This will enhance the internal control of the supply chain to jointly protect against exogenous risks and improve the synergistic advantage of the supply chain, thus maintaining a steady improvement in performance levels during the disruption process (Revilla and Saenz, 2017;Shekarian and Parast, 2021). ...
The outbreak of COVID-19 has accelerated the building of resilient supply chains, and supply chain digitalization is gradually being recognized as an enabling means to this end. Nevertheless, scholars generally agree that more empirical studies will need to be conducted on how digitalization can facilitate supply chain resilience at various stages and enhance supply chain performance in a highly uncertain environment. To echo the call, this study develops a theoretical influence mechanism of "supply chain digitalization → supply chain resilience → supply chain performance" based on dynamic capability theory. The proposed relationships are validated using survey data collected from 210 Chinese manufacturing companies. The results help identify the paths digitalization and supply chain resilience can take to improve supply chain performance in a turbulent environment. The different roles of three supply chain resilience capabilities, namely absorptive capability (before the disruption), response capability (during the disruption), and recovery capability (after the disruption), which impact on supply chain performance differently, are highlighted. In addition, it is found that digitalization can bring a differential impact on these three supply chain resilience capabilities through different aspects of resource and structural adjustment measures. The findings also confirm the mediating role of absorptive capability, response capability, and recovery capability between digitalization and supply chain performance. During crisis, supply chain digitalization can increase cost-effectiveness, enhance information and communication efficiency, and promote supply chain resilience to achieve better performance. For theoretical contribution, this study enriches the research on supply chain digitalization and resilience by underpinning the relationships between the two with dynamic capability theory. For practical contribution, the research findings provide insights for enterprises to leverage digitalization to strengthen resilience in supply chain.
... Agar bisnis industri minuman jus buah tersebut dapat berkelanjutan maka dipandang perlu melakukan manajemen risiko pada rantai pasoknya yang diawali dengan identifikasi risiko yang terjadi sepanjang rantai pasok untuk menghasilkan strategi keberlanjutan yang tepat. Terdapat beberapa metode untuk mengidentifikasi risiko antara lain FMEA, SCOR, HOQ dan HOR (Skipper & Hanna, 2009;Rosih et al., 2015;Norrman & Jansson, 2004;Curkovic et al., 2013;Anwar, 2018). Penggunaan FMEA dalam prioritas penanganan risiko pada rantai pasok telah banyak diadopsi peneliti (Tjahyani & Mustakin, 2019;Simbolon & Hasibuan, 2017;Ariyanti, 2016;Fahrudin & Vanany, 2015). ...
The beverage industry is one of the leading national industries with high growth and a very tight level of competition. The risk supply chain management approach is one of the driving factors for the sustainability of the industrial supply chain. The purpose of this study is to analyze the risk supply chain management to support the sustainability of the beverage industry supply chain in the case of fruit juice beverage products. The data used in this study consisted of primary data and secondary data. Primary data obtained from distributing questionnaires, interviews and field observations. The respondents of this research are the beverage industry supply chain stakeholders. This research combines qualitative and semi-quantitative approaches. Qualitative analysis is conducted to describe activities and risks in the beverage industry supply chain. Risk analysis is carried out using a semi-quantitative approach. The risk evaluation in the supply chain of the fruit juice beverage industry combines the SCOR-FMEA method. The risks that are classified as High and Priority are then analyzed by using the Fishbone Diagram as a reference for formulating risk mitigation strategies for the sustainability of the supply chain for the juice beverage industry.
... More specifically, Prentice et al. (2020) and Zheng et al. (2021) posit that demand planning, inventory management and order management strategies are effective in managing SCD during COVID-19. Similarly, recent studies find that flexibility is salient for minimizing COVID-19 inflicted SCD (Hobbs, 2021;Skipper and Hanna, 2009). Despite myriads of evidences of disruptions due fake news on social media and the potentials of dynamic capabilities in managing sudden disruptions (Ali et al., 2022;El Baz and Ruel, 2021), surprisingly, the role of dynamic capability in managing fake news-led SCD to preserve performance has yet to be explained in the extant literature. ...
Purpose
Fake news on social media about COVID-19 pandemic and its associated issues (e.g. lockdown) caused public panic that lead to supply chain (SC) disruptions, which eventually affect firm performance. The purpose of this study is to understand how social media fake news effects firm performance, and how to mitigate such effects.
Design/methodology/approach
Grounded on dynamic capability view (DCV), this study suggests that social media fake news effects firm performance via SC disruption (SCD) and SC resilience (SCR). Moreover, the relation between SCD and SCR is contingent upon SC learning (SCL) – a moderated mediation effect. To validate this complex model, the authors suggest effectiveness of using partial least squares structural equation modeling (PLS-SEM). Using an online survey, the results support the authors’ hypotheses.
Findings
The results suggest that social media fake news does not affect firm performance directly. However, the authors’ serial mediation test confirms that SCD and SCR sequentially mediate the relationship between social media fake news and firm performance. In addition, a moderated serial mediation test confirms that a higher level of SCL strengthens the SCD–SCR relationship.
Research limitations/implications
This work offers a new theoretical and managerial perspective to understand the effect of fake news on firm performance, in the context of crises, e.g. COVID-19. In addition, this study offers the advancement of PLS as more robust for real-world applications and more advantageous when models are complex.
Originality/value
Prior studies in the SC and marketing domain suggest different effects of social media fake news on consumer behavior (e.g. panic buying) and SCD, respectively. This current study is a unique effort that investigates the ultimate effect of fake news on firm performance with complex causal relationships via SCD, SCR and SCL.
... [48]) and continuing daily business operations. These plans should be well-defined, with actionable points and clear instructions on how to prioritize [49]. ...
The purpose of this study is to investigate how the COVID-19 crisis affected delivery security and firms’ preparedness and responses in Norway. Investigations focus on supply chains which were critical for maintaining the supply of essential goods when large parts of society closed down. This includes four firms belonging to food and pharmaceutical industries, representing different parts of the respective supply chains, and covering imports, exports, domestic distribution, and home-delivery services.
The originality of this article is that we employ theoretical models on supply chain risk management, resilience and reliability in conjunction, where these are usually used separately. Recognizing links, overlaps, and complementarity between the models, and using them step-by-step, we exploit synergies that enable more comprehensive assessments of strengths and weaknesses in firms’ supply chains, covering gaps, prioritizing between improvement areas, and collecting input towards detailed, actionable risk mitigation actions. Investigations build on semi-structured interviews, systematically covering the formative elements for each of the models. Using the models in conjunction, we compare the firms and identify differences, similarities, strengths, and weaknesses in the consequences of pandemic-related disruptions and how firms approached the challenges.
The main challenges for the firms were sudden demand changes early in the pandemic. While the firms had minor differences, their pre-pandemic contingency plans were generally not actionable or detailed enough, nor prepared for the pandemic's longevity. Therefore, more detailed and long-term guidelines are desirable, noting the importance and interrelationships of elements of supply chain risk management, resilience, and reliability. A common feature for all firms, and crucial for handling disruptions, is the importance of good and long-term relationships with upstream and downstream supply chain partners and the need for improving contingency plans and future resilience.
... A survey by the Institute for Supply Management (2021) finds that 97% of organisations encounter global disruptions in supply availability, production capacity, lead times and transportation of goods following Covid-19 till March 2020. As SCs embrace all activities related to the flow and processing of goods from raw materials to the ultimate finished goods to the customer (Chen, 2018), understanding of the companies can handle the disruptions and developing emergency plans has become a critical field of research in SC risk management (SCRM) (Azadegan et al., 2020;Skipper & Hanna, 2009;Tummala & Schoenherr, 2011). ...
This paper explores the supply chain (SC) disruption impacts to the performance
outcomes of a semiconductor company during the Covid-19 pandemic and proposes
appropriate risk mitigation strategies to overcome the crisis. The research uses a
single case study methodology and 24 SC employees from Belgium and Germany who
take part in the survey. To measure the effect of SC disruptions to the firm’s financial
performance, some quarterly financial statement data are used from 2018 to 2021. The
regression analysis results show that there is no significant impact of SC disruptions to
the firm’s productivity and non-financial performance. The paired samples t-test
suggests that there is no significant change in the firm’s financial performance before
and during Covid-19 either due to the market’s political and economic stability or the
semiconductor company develops effective SC risk management strategies.
... Natural disasters, political instability, public emergencies, and wars have a destructive impact on the production and operation of supply chain node enterprises [2]. Decision-makers attempt to reduce the impact of uncertain events through traditional risk management methods, such as interpretive structural models and event trees [3]. However, owing to the sudden occurrence and uncertainty of events, enterprises typically find it challenging to account for all risk events and respond in a timely manner. ...
In a dynamic, uncertain environment, increased supply chain resilience can improve business quality. Predicting changes in enterprise supply chain resilience can help enterprises adjust their operational strategy timeously and reduce the risk of supply and demand interruption. First, a comprehensive resilience assessment framework for manufacturing enterprises was constructed from the perspective of the supply chain, and an improved technique for order of preference by similarity to the ideal solution (TOPSIS) method was used to quantify the resilience level. Considering that the resilience index is easily affected by uncertain factors, and this produces large fluctuations, the buffer operator and metabolism idea are introduced to improve the grey prediction model. This improvement can realize dynamic tracking of the enterprise resilience index and evaluate changes in the enterprise resilience level. Finally, through the analysis of the supply chain data of a famous electronic manufacturing enterprise in China over a two-and-a-half-year period, the results show that the improved TOPSIS method and the improved grey prediction model are effective in improving the supply chain resilience of manufacturing enterprises. This study provides a reference method for manufacturing enterprises to improve their supply chain resilience.
... Supply chains today are facing increased chances of risk occurrence and higher competition from industry (Cantor et al., 2014). Thus, it would be conceivable to state that the ever increasing competitive environment and the uniqueness of challenges being faced by organizations has raised several challenges and disruptions in their supply chain, which can be termed as inevitable events (Skipper and Hanna, 2009). Therefore, a holistic approach is required that can cope with the change in order to bring organizations back from an unstable to a stable state (Wieland and Wallenburg, 2013). ...
Purpose
The aim of this paper is to investigate the role of the stakeholder's relationship with supply chain resilience (SCR) and organizational performance (OP) using the lens of stakeholder theory in the manufacturing and service industry. Investigating the supply chain community in Pakistan, this paper explores the relationship between SCR, OP and the stakeholder's relationship (including customers and suppliers).
Design/methodology/approach
A partial least square (PLS) – structural equation modeling (SEM) technique using SmartPLS 3.3.3 was used to test the hypotheses. Data were collected through a survey (questionnaire) completed by 202 supply chain representatives. All respondents were supply chain professionals working in different organizations in Pakistan.
Findings
The findings of the study revealed that supplier relationship (SR) and customer relationship (CR) have a positive and significant impact on SCR and a positive and significant relationship between SCR and OP. A positive and significant relationship between customer relationship and OP was also noted. The mediating role of SCR is also found positive and significant.
Practical implications
The outcomes of the study will help managers to strengthen SCR through relationship management. The study is also helpful to increase OP through stakeholder management.
Originality/value
This study empirically tests an inclusive model with a PLS-SEM technique where SCR plays a mediating role in the mechanism, which is crucial since the supplier and customer (stakeholder) relationship has been never tested to gauge the OP by positioning SCR as a mediator while using the lens of stakeholder theory.
... 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.
... These aspects will be researched in this paper. It must be highlighted that an interesting observation was presented by Skipper and Hanna [2009], in which they conclude that flexibility can minimize the supply chain risk whereas contingency planning increases flexibility. ...
... A survey by the Institute for Supply Management (2021) found that by March 2020, 97% of organisations were encountering global disruptions in supply availability, production capacity, lead times and transportation of goods following Covid-19. Given that SCs embrace all activities related to the flow and processing of goods from raw materials to the ultimate customer (Chen, 2018), understanding how companies can handle disruptions and develop emergency plans to address SC disruptions has become a critical field of research in SC risk management (SCRM) (Skipper and Hanna, 2009;Tummala and Schoenherr, 2011;Azadegan et al., 2020). ...
This paper explores the impact of supply chain (SC) disruptions on the performance outcomes of a semiconductor company during the Covid-19 pandemic and propose appropriate risk mitigation strategies to overcome this crisis. This research uses a single case study methodology and 24 SC employees in Belgium and Germany took part in a survey. To measure the effect of SC disruptions on the firm's financial performance, quarterly financial statement data was collected from the years 2018 to 2021. The results of the regression analysis show that there is no significant impact of SC disruptions on the firm's productivity and non-financial performance. The paired samples t-test suggests that there is no significant change in the firm's financial performance before and during Covid-19. This may be due to the political and economic stability of Belgium and Germany or the fact that the semiconductor company has developed effective SC risk management strategies to deal with Covid-19.
... The SC agility of organizations may also be influenced by the harmony between the flexibilities in the SC system (Swafford et al., 2006). Flexibility or agility is being shown consistently to increase the capacity of an organization to adjust successfully to changes in the SC (Skipper and Hanna, 2009). So, flexibility and agility of the supply chain often have a beneficial effect on both the quality of capital and customer support . ...
There is an exchange-off between product variety and SC efficiency. This study examines how variety-management practices, including VMS, supplier partnership and consumer relationships, influence SCF and SCA at multiple differentiations to help reduce the effect of product variety on SC. The population of this study was employees taken from manufacturing industry of General Company for the automotive industry in Babylon /Alexandria. Sample size was 210. Adapted questionnaire based on 5-point Likert Scale was used to collect the data. The findings support VMS, partnership with supplier has achieved the desired levelof manufacturing excellence through SC flexibility and agility. However, customer relationship was not gain success to achieve manufacturing excellence through supply chain agility. The first limitation is this study is conducted in developing country; the model of the study should be tested in developed country like USA, second limitation is the responses were taken through survey; the researcher should use interview and secondary data to explore the factors that can contribute performance.
... Hopp et al. [16] elaborated on a measure that focuses on the risks that may occur throughout the supply chain structure and planned for potential disruptions from the recovery process. Skipper and Hanna [17] examined the relationship between some attributes and flexibility of the emergency response planning process and investigated a strategic approach to emergency response planning to reduce the risk of the supply disruption. Xu et al. [18] introduced the CVaR measure to hedge against the risks for the loss-averse newsvendor. ...
This paper considers the emergency ordering strategy for the classical economic ordering quantity inventory system with a supply disruption. For situations where the ending time of supply disruption is stochastic and the purchase price increases over time during that period, we develop an emergency ordering optimization model based on maximizing retailer’s profits. Through modeling analysis in various situations, the closed-form solution of the model is obtained, and the optimal emergency ordering strategy is provided for retailers. Numerical experiments verify the effectiveness of the model and the influence of related parameters on the optimal ordering strategy.
... Thus, businesses must strengthen their manufacturing system resilience by integrating flexibility into their operations to deal with SC interruptions (Kleindorfer and Saad 2005;Ponomarov and Holcomb 2009;Sheffi and Rice 2005). Even if a disruptive event happens, a SC founded on flexibility enables the company to rapidly react to any disruptive event, allowing the company to reorganise and realign its resources and capabilities in the case of a disturbance (Skipper and Hanna 2009;Sreedevi and Saranga 2017). ...
Natural disasters and unexpected disruptive events have forced practitioners and researchers to build resilience capability into their systems to survive and grow in tempestuous and turbulent times. This study empirically examined the effect of multi-dimensional supply chain flexibility (MDSCF) in improving supply chain resilience (SCRES) under a high supply chain (SC) risk environment. The study incorporated a survey technique and utilized valid responses from 191 large-scale manufacturing (LSM) firms of Pakistan. PLS-SEM is employed to analyze the hypothesized relationships. The findings indicated that MDSCF significantly contributes to improving SCRES. Moreover, the study shows strong significant moderating effects of the customer-oriented and external risks and the weak moderating effect of supplier-oriented risks towards augmenting SCRES. The study contributes to the SC (SC) risk management literature by providing empirical support for the need for multi-dimensional SC flexibility measures in bolstering SCRES under the high SC risk environment.
This study highlights the challenges and resilience of SMEs embedded in global supply chains that are vulnerable to systemic risks. SMEs, constituting a significant portion of the global economy, have been largely overlooked in supply chain resilience literature. Faced with crises like the COVID-19 pandemic or geopolitical tensions, SMEs often adopt a wait-and-see approach, seeking to reduce uncertainty before making tangible commitments. Our proposed conceptual framework highlights strategic intelligence as a key dynamic capability to diminish uncertainty, reduce the waiting time for SMEs, and prompt them to commit tangible resources to restore balance in a new context. Three sub-capabilities of strategic intelligence are identified: supply network visibility, environmental sensing, and timely responsiveness. External moderating determinants, such as external social capital and government support, can also help overcome the limitations of SMEs' internal resources. This study calls for future empirical research to explore these relationships and address current gaps in the understanding of SMEs' supply chain resilience. It particularly encourages testing this model using the Partial Least Squares Structural Equation Modeling (PLS-SEM) approach. By focusing on strategic intelligence, inter-organizational resource sharing, and government support, it provides practical insights for managers and policymakers, emphasizing the importance of enhancing SME resilience in the face of systemic disruptions. This, in turn, contributes to the resilience of our economies in an increasingly complex and uncertain world.
Purpose
I aimed to obtain a deeper insight into the link between supplier involvement in product development (SIPD), supplier relationship resilience and company performance.
Design/methodology/approach
To collect data, a survey among 500 Polish manufacturing companies was conducted. I used quantitative methods (structural equation modeling) to test several research hypotheses referring to a single supplier–customer relationship. Thanks to the use of multi-construct measurement of SIPD and supplier relationship resilience, the study provides detailed research results on the topic.
Findings
Collaborative practices implemented during SIPD increase procurement flexibility and decrease redundancy in the relationship with the involved supplier. Communication during SIPD increases supplier flexibility and procurement flexibility. Increased supplier flexibility and increased procurement flexibility in the relationship with the involved supplier as well as collaborative practices during SIPD positively impact company performance. I confirmed the indirect effect between communication during SIPD and company performance when the mediators are supplier flexibility and procurement flexibility. Decreased redundancy in relationship with involved supplier does not impact company performance.
Practical implications
Supply chain managers need to rethink SIPD practice to effectively ensure supply chain resilience (SCRES), especially in the face of the contemporary global crisis and black swans affecting the supplier base. My article provides important managerial insights into drivers of SCRES and company performance.
Originality/value
To the best of my knowledge, this research is among the first to conclude that SIPD does not have an unequivocally positive or direct impact on supplier relationship resilience. The research fills the gap by analyzing the impact of SIPD on two main SCRES elements. The study examines supplier relationship resilience, understood as flexibility and redundancy elements, in a single supplier–buyer relationship perspective. Thus, the presented considerations go beyond the traditional understanding of flexibility and redundancy in supplier relationship management, that is through the prism of double or multi sourcing and having back up-suppliers.
The COVID-19 pandemic has been one of the most severe disruptions to normal life, impacting how businesses operate. The academic literature in the areas of supply chain and operations management has been trying to explain how this has affected decision-making in businesses. However, the existing literature has predominantly overlooked organisational culture and behavioural economic theories. This paper contends that considering the decisions made in supply chain disruption management involve groups and the individuals within them, the relevance of behavioural economic concepts becomes paramount. As such, the objective of this paper is to conduct an integrative literature review, utilising the purposive sampling method to explore the dearth of academic work connecting behavioural economic theories and organisational culture to supply chain disruption management. Additionally, the paper aims to offer guidelines for future research in this domain. Enhancing our comprehension of these domains concerning supply chain disruption management would empower firms to better anticipate their parties’ decisions, refine their decision-making models, and cultivate stronger relationships with suppliers and customers.
Purpose
The present manuscript assesses how firms should manage frequent supply chain disruption triggers and whether these firms should use existing supply chain competencies, develop new ones or both to mitigate any adverse consequences on financial performance.
Design/methodology/approach
Data for the study come from a survey administered to professionals in India. India was an appropriate base for the study because of its developing economy and businesses often facing SC disruptions in the marketplace.
Findings
The findings show that the negative association between the frequency of supply chain disruption triggers and financial performance is weaker when a firm utilizes supply chain exploitation competencies. Conversely, the negative association between the frequency of supply chain disruption triggers and financial performance becomes stronger when using supply chain exploration competencies. Most significantly, however, the authors show that a strategy of supply chain ambidexterity – one that combines both exploitation and exploration practices – is more beneficial in mitigating the impact of frequent disruption triggers on firm financial performance compared to the other strategies.
Originality/value
These findings contribute to the literature, extending the benefits of ambidexterity beyond domains of innovation, manufacturing flexibility, competitiveness and firm performance to include mitigation of supply chain disruptions.
Purpose
In the era of multiple global disruptions, firms are finding it to continue their business. MSMEs are impacted more as they have constrained resources. Organizational flexibility has emerged as an organizational and management principle that would help firms stay competitive even in volatile markets. This study aims to present a set of guidelines and insights for MSME managers to implement organizational flexibility in their organizations.
Design/methodology/approach
This study uses total interpretive structural modelling to study how the various factors contributing to organizational flexibility behave together. Behavioural theory is used to explain why organizations need to incorporate flexibility, and systems theory of organization is used to explain why an organization needs to have open boundaries.
Findings
Organizational flexibility is a principle that may be supported by the systems theory of organization. The study has shown that it is important for MSMEs to have supply chain collaborations to be more flexible. The study also shows pressure from competitors as the key driver that would make a firm more flexible, and that adequate support from management and technological skills are required to drive flexibility in an organization.
Research limitations/implications
Single respondent bias may have occurred in this study. This can be eliminated by interviewing multiple people from the same organization. Further research around the reasoning for linkages can be explored with theory-driven grounded studies.
Originality/value
This study attempts to use a multi-criteria decision-making technique to present insights to managers to help them make their organizations flexible.
Problemas na Cadeia de Suprimentos podem gerar prejuízos de alto valor monetário, a exemplo do que ocorreu na década passada com as empresas Boeing, Cisco e Pfizer, cujas perdas ultrapassaram os U$ 2 bilhões em cada uma delas. As fontes de risco em Cadeias de Suprimentos são numerosas, motivo pelo qual a Gestão de Riscos tem sido vista por muitos pesquisadores como uma extensão natural da Gestão da Cadeia de Suprimentos, mais conhecida como Gerenciamento de Riscos em Cadeias de Suprimentos (SCRM). Nesse tema, o presente trabalho tem como objetivo investigar empiricamente o processo de gestão dos riscos na cadeia de suprimentos em indústrias químicas. Metodologicamente o estudo foi suportado por um estudo de campo em três grandes empresas do setor químico, por meio de entrevistas presenciais, com a aplicação de questionários estruturados junto aos gestores da área de logística. Como resultados, identificaram-se os principais tipos de risco que afetam a cadeia de suprimentos de empresas do setor químico, além de destacar as etapas do processo de gerenciamento de riscos adotados por essas empresas. Como principal conclusão, observou-se que o assunto SCRM ainda é incipiente nas empresas pesquisadas, visto que as ações tomadas para gerenciamento de seus riscos estão mais relacionadas aos processos internos do que com a cadeia de suprimentos em si.
Purpose: There is a growing interest in the role of flexibility in manufacturing companies, especially in its relevance to managing business uncertainties. Several studies have been conducted on manufacturing flexibility, but no study has examined a possible support practice among the practices of manufacturing flexibility. This study explores that literature gap in a Sub-Saharan business environment. Design/methodology/approach: This study adopts a cross-sectional survey approach and criterion sampling method to select and administer its research instrument to respondents of the study. The sample size was 416, and the hypotheses were tested via the structural equation model. Findings: Study revealed that mix flexibility had a direct impact on supply uncertainty; production flexibility had a direct impact on supply uncertainty; and product flexibility had direct and indirect impact supply uncertainties. Volume flexibility is the only flexibility dimension with no impact on supply uncertainty, both directly and indirectly. In addition, product flexibility is the only practice with indirect impact on supply uncertainty. Practical implications: Managers can adopt manufacturing flexibility to combat supply uncertainty. Funding production and product flexibility will enhance capacities in managing supply uncertainties. Managers should establishing product flexibilities prior to other forms of flexibilities. Practitioners considering implementing one dimension can employ production flexibility to limit supply uncertainty, because it has the most impact on supply uncertainty individually. Originality/value: This study contributes to literature by uniquely examining manufacturing flexibility impact on supply uncertainty exclusively. It is also the first empirical investigation into supporting practices among manufacturing flexibility practices in any business environment. Keywords: Manufacturing, Flexibility, Uncertainty, Production.
Purpose
This study proposes an integrated model to explore the relationships between dynamic capability and supply chain resilience (SCRE) and the relationships' impacts on firms' financial performance with supply chains (FPwSC) during the coronavirus disease 2019 (COVID-19) pandemic.
Design/methodology/approach
Based on resource-based theory and knowledge-based theory, the dynamic capability is classified into resource-based dynamic capability (RBDC) and knowledge-based dynamic capability (KBDC). The study collects 158 useable survey samples from manufacturers in Taiwan and analyzes the samples with the structural equation model.
Findings
The results show that knowledge is power; KBDC is crucial for FPwSC, SCRE and RBDC. In addition, SCRE mediates the relationship between KBDC and FPwSC. Finally, RBDC significantly suppresses FPwSC.
Research limitations/implications
Future researchers could replicate this study in other industries and expand this to other countries to generalize the results.
Practical implications
A firm with KBDC can adopt and implement strategies that exploit its internal strengths to respond to environmental opportunities, overcome internal weaknesses and mitigate external threats. Furthermore, a firm should fully utilize SCRE with proactive and reactive strategies. Exercising a firm's KBDC could facilitate SC collective intelligence to handle the risk of SC disruption and vice versa.
Originality/value
The study is the first to combine KBDC, RBDC and SCRE into an integrated model for FPwSC. Moreover, this study reveals that resilience relies on knowledge, not resources, as evidenced by SCRE being affected significantly by KBDC but not RBDC.
The current literature on resilience planning, especially related to supply chains, rarely considers the difference between intended and actualized behaviors toward mitigation and adaptation actions. However, a potential contributor to taking on supply chain pre-disaster planning tends to be individual and institutional risk perceptions encountered in the Theory of Planned Behavior (TPB) (Ajzen I Organizational Behavior and Human Decision Processes 50:179–211, 1991). The theory suggests that an agent’s intentions to implement mitigation and/or adaptation actions inform their resilience capacity toward a given disaster event that is comparable to data on interruption and recovery post-event.The gist of this chapter hinges on the idea that supply chain management (SCM) has been largely successful in providing a normative framework supporting decisions involved in the design (e.g., plant location, sourcing and procurement, transportation), planning (e.g., demand forecasting, aggregate planning), coordination (e.g., organizational talent, collaboration, and integration), and risk management (e.g., excess capacity, inventory buffers, suppliers diversification); however, the field has largely not addressed the underlying behavioral mechanism that drives an agent’s decision-making process in the specific context of pre-disaster planning (i.e., mitigation) and adaptation decisions. Failing to understand why intention and actualized behavior toward mitigation and adaptation differ is an obstacle to effectively coping with disruption risks and may pose a threat to the resilience of the supply chain given that some mitigation actions aim at building or increasing a firm’s inherent resilience capacity and at improving its ability to adapt to disruptions potentially affecting business continuity. This topic is particularly relevant for small- and medium-sized enterprises (SMEs) that play a critical role within their communities and do not have resources to incorporate sophisticated business continuity plans or emergency management plans within their risk management frameworks.
The turbulent business environment highlights the need for strategies for mitigating, responding to, and recovering from (that is, managing) supply chain disruptions. Resources are central in these strategies but remain unspecified in the literature. This paper shows how the resource interaction approach (RIA) can help understanding resources in this setting by acknowledging their interactive and networked nature. Based on a conceptual discussion that compares key assumptions within the supply chain risk management (SCRM) and supply chain risk resilience (SCRes) literatures with the RIA, we propose an alternative approach to strategies for managing supply chain disruptions. We challenge the SCRM and SCRes literatures by emphasizing interdependence (as opposed to independence) and pointing to relationships as key resources in strategies for managing supply chain disruptions. Collaboration relying on an interplay between temporary and permanent organizing is suggested as a starting point instead of being just one of several alternative strategies.
Purpose: This study explores business strategies adopted by Small and Medium Sized
Enterprises (SMEs) in the UK’s grocery-retail industry to cope with supply chain (SC)
disruptions caused by the Covid-19 pandemic.
Design/methodology/approach: The study adopted two phases of research methods. In phase 1, in-depth interviews were conducted with ten SMEs from England. Whilst abiding by national guidelines on the travel restrictions imposed by the government, in phase 2 email-based interviewed were conducted with twenty-two SMEs across the UK’s grocery-retail industry. The thematic analysis technique was adopted to analyse the data.
Findings: This study reveals that SMEs need clearer avenues of communication with the
government and better resources for learning and training. SMEs also need to expand their
implementation of information technology to improve SC collaboration. In the meantime, they need to improve their power positions in SCs and reduce dependence on SC partners.
Originality: SMEs in the grocery-retailer industry have been increasingly under pressure to
compete with bigger grocery retailers. During the pandemic they have faced great challenges and been looking for strategies to improve their performance. While a major proportion of participants in the grocery retailer industry are fragmented SMEs, the majority of studies have focused on larger retailers and end consumers. With the help of the social exchange theory, this research reveals new insights on business strategies to cope with SC disruptions, and offer the foundation for a new line of research on preparation for future disruptions.
The variety of risks and the frequency with which they can disrupt a supply chain are now vastly higher than ever, rendering heightened volatility the emerging norm for contemporary supply chains. Thus, resilience has grown in importance as a component of supply chain management. It is suggested that firms increase their efforts in risk prevention and response strategies to inject resilience supply chains. To anticipate potential changes, identify changes, react to actual changes and deliver superior value, SMEs require resilient supply chains. By creating strategies that enable the supply chain to recover normal operations after a disruption, building supply chain resilience can assist to lessen and overcome vulnerabilities to risks. The chapter aims to provide a detailed insight into the impact of one critical dimension of supply chain resilience; supply chain preparedness which is aimed at boosting SMEs’ sustainability.
Purpose
The coronavirus disease 2019 (COVID-19) pandemic unveiled resilience deficits in supply chains. Scholars and practitioners aim to identify supply chain resilience (SCRES) measures suitable for this unique disruption; however, empirical evidence on a pandemic's specific characteristics, resulting challenges, and suitable countermeasures is scarce.
Design/methodology/approach
A single-case study on an automotive supply chain network (ASCN), including eight nodes, was conducted. Based on current research and interviews with 35 experts, characteristic pandemic challenges for the ASCN were identified. Moreover, promising SCRES measures were determined along the most prominent SCRES levers. The findings lead to five central propositions and advance organizational information processing theory in the context of SCRES.
Findings
This study’s results confirm unique pandemic characteristics along the supply chain disruption's duration, severity, propagation, and volatility. The resulting unprecedented challenges made the ASCN apply novel SCRES measures, particularly regarding collaboration and risk management culture. However, well-known visibility and flexibility strategies were also suitable. Overall, agility and collaboration measures showed the highest capacity to address characteristic pandemic challenges. A lack of preparedness impeded some measures' application, calling for enhanced proactive risk management following the pandemic.
Originality/value
This paper addresses several research calls by providing in-depth empirical evidence on hitherto conceptually researched pandemic characteristics, challenges, and suitable SCRES measures from a network perspective. The study uncovers the different perceptions of individual tiers, emphasizing the need to analyze supply chain disruptions from multiple angles.
RESUME La présente recherche a montré que la pandémie de COVID-19 a affecté tous les secteurs et notamment le secteur secondaire et tertiaire, d'une manière considérablement négative. Cet article vise à examiner l'impact du virus COVID-19 sur les maillons logistiques les plus touchés par la pandémie à savoir l'entreposage et le stockage qui ont connu un impact significatif durant la période de crise. À cet égard, l'étude a opté pour une méthode qualitative de conception de la recherche, ainsi que la collecte de données primaires. La variable explicative ici est le virus COVID-19, tandis que les variables dépendantes sont l'entreposage et le stockage. La technique d'analyse des données utilisée est l'analyse du test de Khi2 qui a été utilisé pour vérifier l'hypothèse de dépendance des variables qualitatives, alors que le test non paramétrique Kruksall-Wallis a été utilisé pour remplacer le test d'ANOVA. Un questionnaire d'enquête structuré a également été utilisé. Les résultats ont révélé que l'effet du COVID-19 sur les deux maillons (Entreposage et stockage) est statistiquement négatif et significatif. Par conséquent, en tenant compte de ces résultats, les décideurs et les managers peuvent renforcer leur soutien afin d'augmenter les performances du secteur de l'entreposage et stockage au Maroc. ABSTRACT The present research has shown that the COVID-19 pandemic has affected all sectors and especially the secondary and tertiary sector, in a considerably negative way. This article aims to examine the impact of the COVID-19 virus on the logistics links most affected by the pandemic, namely warehousing and storage, which had a significant impact during the crisis period. In this regard, the study opted for a qualitative method of research design, as well as the collection of primary data. The explanatory variable here is the virus COVID-19, while the dependent variables are warehousing and storage. The data analysis technique used is the Khi-2 test analysis which was used to test the dependence hypothesis of qualitative variables, while the Kruksall-Wallis nonparametric test was used to replace the ANOVA test. A structured survey questionnaire was also used. The results revealed that the effect of COVID-19 on the two links (Warehousing and Storage) is statistically negative and significant. Therefore, taking into account these results, decision-makers and managers can strengthen their support in order to increase the performance of the warehousing and storage sector in Morocco.
Purpose
The aim of this conceptual study is to analyze the effects of state-of-the-art research streams on supply chain risk management (SCRM) based on organizational theoretical background and direct future research toward the use of other related organizational theories. This paper seeks to provide a framework for understanding various organizational theories that can impact the understanding of SCRM.
Design/methodology/approach
A systematic literature review on articles published from 1998 to 2020 was conducted manually in the following databases: Emerald, Science Direct, Taylor & Francis Online, and Wiley online library. Among these articles, the paper by Smeltzer and Siferd (1998) is the first article published on the topic. Therefore, that serves as a starting point for the papers' analysis. A total of 109 articles have been selected and reviewed in detail.
Findings
The results of the study indicate that the articles which utilize theories in SCRM research have been mostly published in the last three years. The quantitative and case studies have been prevalently applied methods in the articles. In total, 34 theories are listed from the investigated articles. The four commonly studied theories among these are the information processing theory, transaction cost theory, contingency theory, and resource-based view.
Originality/value
This paper is the pioneer in the sense that the paper specifically and directly reviews the SCRM literature in terms of organizational theory usage. For future research, this study offers a diffusion of innovation (DOI) theory that explains the factors which can affect the adoption or diffusion of SCRM practices.
Purpose
The purpose of this paper is to investigate the potential synergy between companies’ sustainable supply chain management (SSCM) activities and their supply chain resilience (SCRES). The authors propose hypotheses about the impact of buying companies SSCM activities on the inflicted damage by unexpected supply chain disruptions and the recovery time afterwards and test these empirically using data from companies during the global COVID-19 pandemic.
Design/methodology/approach
The authors investigate a sample of 231 of the largest publicly traded companies in the European Union with 4.158 firm-year observations. For the analysis, the authors generate variables capturing the companies’ intensity and years of experience of their SSCM activities targeted at the supply chain and run regression analyses on the inflicted damage due to the COVID-19 pandemic and the recovery time after the disruption.
Findings
Buying companies’ SSCM activities have a positive effect on their SCRES. The damage inflicted by unexpected supply chain disruptions is lower when companies have higher levels of SSCM and longer experience with it. The recovery time afterwards is significantly reduced by longer experience with SSCM efforts.
Research limitations/implications
The authors suggest SCRES is reinforced by transparency, situational awareness, social capital and collaboration resulting from companies SSCM activities translate into increased SCRES.
Practical implications
The authors show that companies with superior SSCM are more resilient in a crisis and conclude that, therefore, companies should invest in SSCM to prevent future supply disruptions.
Originality/value
To the best of the authors’ knowledge, this is the first empirical study analyzing a data set of multi-industry companies, linking their SSCM activities to SCRES during the pandemic.
Though the marketing literature acknowledges that communication plays a vital role in channel functioning, it provides no integrated theory for channel communication. The authors build a theoretical model to help understand the role of communication in marketing channels. They propose a contingency theory in which communication strategy moderates the impact of channel conditions (structure, climate, and power) on channel outcomes (coordination, satisfaction, commitment, and performance). When a communication strategy matches the channel conditions, channel outcomes will be enhanced in comparison with the outcomes when a communication strategy mismatches channel conditions.
As companies increasingly adopt global sourcing and supply chain management practices, they are discovering both opportunities and challenges. On the one hand, global sourcing is lowering purchase prices and expanding market access. On the other hand, operating a global distribution channel increases the level of supply chain risk—there's an increase both in the potential for product and service flow disruptions and in the magnitude of those disruptions. Top executives must now manage supply chain risks, just as aggressively as they manage other risks that affect business performance. In fact, a recent survey by insurance company FM Global and market research firm Harris Interactive found that 69 percent of chief financial officers, treasurers, and risk managers at Global 1000 companies in North America and Europe considered property-related hazards and supply chain disruptions as major threats to top revenue sources. 1 Recent studies also have shown that supply chain disruptions can be very costly and have the same magnitude as other types of corporate crises. 2,3 Managing supply chain risks is challenging because disruptions can occur for a wide variety of reasons such as industrial plant fires, transportation delays, work slowdowns or stoppages, or natural disasters. Yet, companies running lean operations no longer have the inventory or excess capacity to make up for production losses caused by such disruptions. As a result, material-flow problems can rapidly escalate to wide-scale network disruptions. Customers, however, don't care why or where the disruption occurred; they still expect the final product or service to be delivered at the right time and price. To maintain customer satisfaction, it falls on operations to handle these disruptions in real time.
Though the marketing literature acknowledges that communication plays a vital role in channel functioning, it provides no integrated theory for channel communication. The authors build a theoretical model to help understand the role of communication in marketing channels. They propose a contingency theory in which communication strategy moderates the impact of channel conditions (structure, climate, and power) on channel outcomes (coordination, satisfaction, commitment, and performance). When a communication strategy matches the channel conditions, channel outcomes will be enhanced in comparison with the outcomes when a communication strategy mismatches channel conditions.
Against a background of increasing threats, business continuity management (BCM) has emerged in many industries as a systematic process to counter the effects of crises and interruptions, although its potential to play a more strategic role is still largely under-explored. This article examines the organisational antecedents of BCM and develops a conceptual approach to posit that BCM, in actively ensuring operational continuity, has a role in preserving competitive advantage. Such value preservation is central to the business continuity/business strategy relationship, and gives rise to the central purpose of the paper; to discuss whether firms’ BCM can be seen as strategic rather than purely functional.If so, what form does such provision take in terms of planning, organisation and culture? Evidence from six UK-based financial services firms illustrates differing approaches to business continuity, with two firms showing BCM provision more clearly aligned towards a mission-critical strategic role. Practical precepts for implementation are presented, together with a diagnostic drawing attention to the key determinants of enhanced value preservation.
The breadth and scope of supply chain risks have broadened significantly in recent years. Even prior to the 2001 terrorist attacks, the creep of risks and uncertainties were widening with increased globalization, widening political reach by leading countries, and the rise of market producing and consuming economies. This article raises some essential supply chain questions as well as some that have impact on the field from outside of it.
Natural disasters, labor disputes, terrorism and more mundane risks can seriously disrupt or delay the flow of material, information and cash through an organization's supply chain. The authors assert that how well a company fares against such threats will depend on its level of preparedness, and the type of disruption. Each supply-chain risk - to forecasts, information systems, intellectual property, procurement, inventory and capacity - has its own drivers and effective mitigation strategies. To avoid lost sales, increased costs or both, managers need to tailor proven risk-reduction strategies to their organizations. Managing supply-chain risk is difficult, however. Dell, Toyota, Motorola and other leading manufacturers excel at identifying and neutralizing supply-chain risks through a delicate balancing act: keeping inventory, capacity and related elements at appropriate levels across the entire supply chain in a rapidly changing environment. Organizations can prepare for or avoid delays by "smart sizing" their capacity and inventory. The manager serves as a kind of financial portfolio manager, seeking to achieve the highest achievable profits (reward) for varying levels of supply-chain risk. The authors recommend a powerful what if? team exercise called stress testing to identify potentially weak links in the supply chain. Armed with this shared understanding, companies can then select the best mitigation strategy: holding "reserves," pooling inventory, using redundant suppliers, balancing capacity and inventory, implementing robust backup and recovery systems, adjusting pricing and incentives, bringing or keeping production in-house, and using Continuous Replenishment Programs (CRP), Collaborative Planning, Forecasting and Replenishment (CPFR) and other supply-chain initiatives.
Today's marketplace is characterised by turbulence and uncertainty. Market turbulence has tended to increase for a number of reasons. Demand in almost every industrial sector seems to be more volatile than was the case in the past. Product and technology life-cycles have shortened significantly and competitive product introductions make life-cycle demand difficult to predict. At the same time the vulnerability of supply chains to disturbance or disruption has increased. It is not only the effect of external events such as wars, strikes or terrorist attacks, but also the impact of changes in business strategy. Many companies have experienced a change in their supply chain risk profile as a result of changes in their business models, for example the adoption of “lean” practices, the move to outsourcing and a general tendency to reduce the size of the supplier base. This paper suggests that one key element in any strategy designed to mitigate supply chain risk is improved “end-to-end” visibility. It is argued that supply chain “confidence” will increase in proportion to the quality of supply chain information.
The research explores the linkage between the flow of information between buyers and sellers and the perceived performance of the seller. Using data received from 152 export managers for U.S. manufacturing firms, a moderated multiple regression analysis shows that information exchange and supplier performance are positively related regardless of the presence of moderating demographic characteristics. The findings suggest that organizations should more fully plan, anticipate, and design strategies to ensure that information is frequently exchanged with business associates. Such an approach to the management of information suggests that organizations will increasingly find themselves coupled together with associates in relational attachments.
Service industries hold an increasingly dynamic and pivotal role in today's knowledgebased economies. The logistics industry is a classic example of the birth and development of a vital new servicebased industry, transformed from the business concept of transportation to that of serving the entire logistical needs of customers. Quantum advances in science, technology, and communication in the new millennium have compelled firms to consider the potential of the socalled new “resources” (technology, knowledge and relationship networks) that are essential if firms are to operate effectively within the emerging business model, and to utilise the opportunities to innovate and gain market leadership. Through an extensive literature review, this paper examines the factors that nurture innovation in logistics services, identifies the contributions of the new “resources” and, using industry examples, examines the application of these resources to logistics firms as they assume an extended role within the new business model.
IntroductionFrom Disaster Recovery to Business Continuity PlanningBusiness Continuity ManagementRisk ManagementBackup, Recovery Strategies, and Continuous Data ProtectionStorage Technologies for Data Backup and RecoveryTraining and TestingBusiness Continuity Laws and RegulationsBusiness Continuity and Investment DecisionsBeyond Business Continuity: Business ResilienceConclusion
GlossaryCross ReferencesFurther Reading
Successful businesses recognise the importance of developing competitive advantages. One source of competitiveness for the firm is the development of an integrated relationship between the firm's marketing and logistics functions, as this integration has the ability to further enhance the firm's customer focus. The objective of this research is to contribute an understanding of the factors operating in the firm that are associated with the integration of marketing and logistics functions. A "Marketing-Logistics Integration Model", derived from the functional integration pillar of the marketing concept, is developed to investigate 10 hypotheses related to these factors. This model is tested in more than 450 New Zealand firms. Multiple Regression Analysis identifies which strategic, operational, and structural factors are associated with marketing-logistics integration in the firm. This research reveals that strategic management, through top management emphasis on integration and the creation of mutual goals between the functions, is one of the most critical factors operating in the firm to encourage high levels of marketing-logistics integration. The findings also indicate the importance of middle management factors such as the existence of cooperative attitudes and provision of education and training between the marketing and logistics functions. These results support the propositions and findings of related studies in the general field of marketing regarding the factors supporting integration, but this study is the first to adapt and apply these to the integration of marketing and logistics functions, and one of the first to investigate the marketing-logistics relationship empirically. This research makes three significant contributions to customer-focussed business function research. Firstly, a unique model has been developed from sound academic theory that highlights the factors posited to integrate two highly customer-focussed business functions, marketing and logistics. Secondly, this model has been tested in an empirical setting. Finally, the research has sought to develop an understanding of marketing-logistics integration under different firm conditions. This research provides future researchers with a base model for understanding how functional integration may be supported in the firm.
The business press has coined the term "pie expansion" to refer to the collaborative process of creating mutually beneficial strategic outcomes between buyers and suppliers. In this research, the author provides an explanation of this process, hypothesizing that such outcomes are achieved through the use of coordination efforts across organizational boundaries and specialized investments. The author investigates the facilitating roles of various environmental, interorganizational, and interpersonal conditions in this process. The results of a longitudinal survey of more than 220 buyers and suppliers indicate that the collaboration process is worthwhile, with coordination efforts and investments leading to enhanced profit performance and the realization of competitive advantages over time. Environmental dynamism and demand motivate suppliers to form collaborative exchanges with buyers and facilitate the dyad's willingness to create idiosyncratic investments. Goal congruence and interpersonal trust facilitate coordination effort, and complementary capabilities facilitate both effort and investments.
This study, performed at Carnegie-Mellon University, under a grant from the McKinsey Foundation, offers to the best of our knowledge, the first quantitative and statistically significant proof that acquisition planning pays. Although subjective evaluation of results by management does not differ greatly between planners and non-planners, objective financial measurements show a substantial difference. On virtually all relevant financial criteria, the planners in the sample significaftly out performed the non-planners. Not only did the planners do better on the average they performed more predictably than non-planners, thus planners appear to have narrowed the uncertainty in the outcomes of acquisition behaviour.
Cutting-edge Japanese companies today are capitalizing on time as a critical source of competitive advantage: shortening the planning loop in the product development cycle and trimming process time in the factory - managing time the way most companies manage costs, quality, or inventory. In fact, as a strategic weapon, time is the equivalent of money, productivity, quality, even innovation. Managing time has enabled top Japanese companies not only to reduce their costs, but also to offer broad product lines, cover more market segments, and upgrade the technological sophistication of their products. These companies are time-based competitors.
Recently, there has been a growing interest in the development of collaborative relationships between organizations. Much attention has been given to how organizations "expand the pie" of benefits between them; however, there is little that addresses the ensuing issue: how organizations divide the expanded pie. The author examines the relational impact of pie sharing in complex collaboration contexts marked by uncertainty in resources and output, information asymmetries, intangible aspects, and noncomparable factors and processes. The author develops a conceptual framework that examines how the use of equity and equality sharing principles in conjunction with various resource and organizational conditions can be used to affect relational outcomes systematically. Survey results of 300 research and development managers, scientists, and engineers indicate that sharing principles can have a positive or negative effect on the relationship depending on the type of sharing principle used and the characteristics of the resources and organizations. In particular, sharing processes should be responsive to the goals of the collaboration. The results underscore the strategic nature of the sharing phenomenon as well as the importance of relational concerns in complex and uncertain interorganizational settings.
Long before formalized corporate planning came into vogue, informal ‘invisible’ plans existed, both in managers' heads and on the back of their cigarette packets. This article uses the insights gained from designing and implementing formalized planning systems to examine the relationship between explicit and implicit strategy. The fact that planning is a political rather than a purely rational activity has gained widespread recognition. Less clearly understood is the effect that the political dimension of planning can have in driving a company's formal plan and implicit strategy apart. Such divergence can lead to ‘planning schizophrenia’ where invisible plans run the business in reality while the explicit plans simply represent it with rhetoric.
Two questions motivate this research. What conditions foster flexibility and how might business-to-business firms infuse flexibility throughout their organizations? A synthesis of the strategic management, marketing, and new product development literature was undertaken, which provided an updated interdisciplinary focus. Contingency theory and the resource-based view perspective were utilized to enhance our knowledge and emphasize the importance of flexibility and organizational performance. Superior intra- and inter-firm flexibility are proposed to influence business-to-business marketplace success.
Rapid advances in computer technology and more specifically, with the Internet, have spurred the use of e-mail surveys for data collection. But questions remain as to whether e-mail is a viable means of data collection. With this in mind, the authors discuss the results of theirrecent study that duplicated their earlier analysis weighing the effectiveness of e-mail surveys against traditional mail surveys. While the more recent study confirmed many of the authors' earlier findings favoring e-mail surveys for data collection, it also produced evidence that weakens support for e-mail surveys, particularly in their response rates.
Supply chains are increasingly susceptible to unplanned, unanticipated disruptions. With the implementation of the practices of lean systems, total quality management (TQM), time-based competition and other supply chain improvement initiatives, managers now realize that their supply chains are fragile, particularly to environmental disruptions outside their control. As a result of recent events including 11 September 2001, a system is now emerging in purchasing to manage supply risk characterised as having a very low probability of occurrence, difficult to predict, and with a potentially catastrophic impact on the organization. This paper presents case study research findings examining how and why firms create business continuity plans to manage this risk. Propositions are then presented from an institutional theory perspective to examine how various isomorphic pressures result in firms having similar risk management practices embedded in their supply management practices over time.
The reason for this research originates from the time- and functional dependencies between firms’ activities and resources in supply chains. These dependencies cause vulnerability. The principal objective of this research is to conceptualize the construct of vulnerability in firms’ inbound and outbound logistics flows. The vulnerability construct of this research consists of two components: disturbance and the negative consequence of disturbance. This research is based upon a two-phase process utilizing sequential triangulation. It is proposed that the vulnerability in the inbound logistics flows from sub-contractors, and the vulnerability in the outbound logistics flows to customers, may be measured and evaluated by four principal dimensions, namely: service level, deviation, consequence and trend. In addition, a model of inbound and outbound vulnerability scenarios in supply chains is introduced for teaching and training purposes, as well as to position and compare the outcome of replication studies of vulnerability in firms’ inbound and outbound logistics flows.
Despite anecdotal evidence of the performance implications of just-in-time (JIT) implementation, little empirical research has been conducted. Examines total system JIT’s empirical relationships with a variety of performance outcomes. Total system JIT encompasses JIT purchasing, JIT production, and JIT selling. In a mail survey of 200 logistics executives, total system JIT was found to be: inversely related to weeks of inventory (inclusive of inbound, in-process, and outbound); inversely related to the number of layers in various functional areas (e.g. marketing); and positively related to three different indicators of financial performance (ROI, profits, and ROS). Results, managerial implications, and further research are discussed.
The complexity, uncertainty, and diminished control found in global operations hinder the development of world-class competencies. For example, as a firm rationalizes manufacturing, logistical challenges increase. As a result, cost advantages achieved through production sharing are often offset by higher logistics costs. This multi-method explores the cross-functional development of quality and cost competencies in an international production sharing setting. Overall, the study found that information and planning capabilities are vital antecedants to cost and quality competencies. The impact of cost on a firm’s performance is direct, while the impact of quality is indirect, through productivity enhancements.
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.
The annual Bain 2003 global survey of companies finds that managers are using more tools than ever to make headway in tough times. On average, the companies surveyed used 16 tools in 2002 with the heaviest reliance on tried and true “compass-setting” tolls such as strategic planning, benchmarking, and mission and vision statements. Surprisingly, given the pressure to control expenses, executive’s choice of tools shows a clear bias toward growth over cost cutting. The message: moving ahead, not retrenching, is critical to control your destiny. The resolve to turn the economic slump into advantage showed up in the types of tools companies adopted in 2002. Overwhelmingly, senior executives favored tools that help sharpen strategies and prepare managers for an increasingly hard road to growth. Proven disciplines like strategic planning and core competencies drew raves once again for helping companies stay on course. This year, these tools were joined in the satisfaction ratings by tools focused on defining markets and improving customers relationships – key activities as companies tried to eke out as much revenue from existing customers as possible. A total of 78 percent said they used CRM systems compared with 35 percent in 2000. At the same time executives discarded tools that might divert management attention or require big cash outlays, such as stock buybacks, corporate venturing, and merger integration teams. A clear sign of the times in this year’s survey was the soaring popularity of the corporate code of ethics. Given the rash of corporate scandals, it is not surprising that top executives at 78 percent of the surveyed companies said they have enacted a code of ethics to be their common standard for acceptable behavior.
Purpose
This paper aims to report on findings of a cross‐sector empirical study of the sources and drivers of supply chain vulnerability.
Design/methodology/approach
The research was undertaken in accordance with the realist tradition. It begins with a descriptive exploratory stage involving an in‐depth exploratory case study of aerospace industry supply chains, validated through in‐depth interviews with managers representing other “critical sectors” of the UK economy. This is followed by an explanatory theoretical stage. The work is supported throughout with reference to relevant literature sources.
Findings
The findings highlight the absence of any widespread understanding of the scope of and dynamic nature of the problem, which should be considered from multiple perspectives and at four levels of analysis: value stream/product or process; asset and infrastructure dependencies; organisations and inter‐organisational networks; and social and natural environment.
Research limitations/implications
The paper is normative rather than positive, so focuses on understanding why supply chains are vulnerable to disruption, rather than presenting itself as a prescription for management. The paper does not investigate academic definitions or existing taxonomies of risk.
Practical implications
The work provides some useful insights for practising managers and policy makers.
Originality/value
The paper reports on empirical research, then draws as appropriate on network theory and complex systems perspectives to produce a conceptual model of a supply chain as in interactive adaptive system.
Purpose
– Terrorist attacks, natural disasters, and regional power outages from the past several years have all highlighted the low levels of disaster preparedness that exist at many firms. Supply chain disruptions caused by external events can have a significant financial and operational impact on firms not properly prepared. Therefore, improving disaster preparedness in supply chains is critical. One critical component of disaster management planning in supply chains is the storage of emergency supplies, equipment, and vital documents that will be needed in times of crisis. The goal of this paper is propose a decision process for establishing an efficient network of secure storage facilities that can effectively support multiple supply chain facilities.
Design/methodology/approach
– The authors use the five‐stage disaster management process for supply chains as the framework for a proposed decision process for secure site locations. The decision process combines recommendations from FEMA's Disaster Management Guide with a set cover location model from the location sciences field to help establish a network of secure site locations.
Findings
– Storing emergency supplies at every supply chain facility can be cost‐prohibitive. In addition, gaining access to emergency supplies that are stored at each facility may be prevented by some external events, such as fires or hurricanes, because items stored on‐site are destroyed or are inaccessible. Therefore, the proposed secure site selection process can balance operational effectiveness and cost‐efficiency by identifying the minimum number and possible locations of off‐site storage facilities.
Originality/value
– One important contribution of the paper is that it combines recent recommendations for disaster preparedness in supply chains with established models in location sciences research to create an interdisciplinary solution to an important supply chain issue. Even though the storage of important documents, equipment, and materials is only one small part of disaster management planning, it is hoped that this model will do its share in helping supply chains become better prepared for the next emergency.
It is management, and particularly managers' willingness to learn and change -- not unfair competition or unsupportive economic policies -- that is at the heart of America's manufacturing crisis, contend Robert Hayes, Steven Wheelwright, and Kim Clark. These world-renowned authorities on manufacturing and technology base their conclusion on studies of hundreds of American and foreign firms. Writing for general managers in this long-awaited successor to their award-winning Restoring Our Competitive Edge, the authors go beyond the structural decisions -- the "bricks and mortar" of facilities and equipment -- to the infrastructure of a manufacturing company: the management policies, systems, and practices that must be at the core of a world-class organization. Most importantly, they address the difficulty of creating that infrastructure, emphasizing the management leadership and vision that are required. This thorough and comprehensive volume points out the weaknesses of traditional management practices, which are built into authoritarian, hierarchical organizations. The authors show dramatically how many companies today are breaking out of this "command and control" mentality and creating a whole new set of relationships involving workers and managers, engineering, marketing and manufacturing, and suppliers and customers, which is giving them a competitive advantage in the international marketplace. Comparing the companies that are winning with those that are losing market position, Hayes, Wheelwright, and Clark conclude that the key differences are that the winners focus on creating value for customers, continual improvement, quick adaptability to change, and extracting the full potential of their human resources. They constantly strive to be better, placing great emphasis on experimentation, integration, training, and the building of critical organizational capabilities. They are, in short, "learning" organizations. Dynamic Manufacturing explores in depth such key infrastructure issues as capital budgeting, performance measurement, organizational structure, and human resource management, demonstrating how they interact to foster productivity growth, new product development, and competitive advantage. The book shows today's managers how to implement the changes that must be made if they want to create a truly superior manufacturing company. Taking concerned, committed managers step-by-step on the path toward better products, lower costs, and increased profits, this seminal work provides a road map for manufacturing firms seeking to build a competitive advantage through manufacturing excellence.