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The Role of Just in Time, Total Quality Management, and Supply Chain Management toward Better Operational Performance
Abstract
The medical sector has entered an epoch of rapid innovation and strengthened competition that demands more creativity. That rapidly changing environment demand more flexibility for the operations. Although, various studies are available on the effects of multiple approaches on operational flexibility still JIT, TQM, and SCM never have been verified in the same study. This is empirically varification, a questionnaire has been distributed by convenience sampling in the medical sector of Jordan. Total 318 responses received and SPSS have been applied for multiple regression analysis. It has found that all three approaches have positive effects on operational flexibility but very minor even no approach has significant effects. This study is unique because it applies three diversified approaches in the same study and findings are unique. It is recommended for all managers of a medical sector that JIT, TQM, and SCM are not beneficial for operational flexibility for developing countries due to lack of resources, technology, and education. This study will help the researches that more studies need to verify for Jordan hospitals. Moreover, future studies can be done to identify the reasons behind these unique findings.
... 2018). Each organization is an integral part of a complex network and any issue that exists somewhere interferes with the entire system (Al-Doori et al., 2019). It is, therefore, important for organizations to consider their individual performance carefully. ...
Operational performance is a major concern for the manufacturing industry of any country, especially a developing country like Pakistan. Despite its fertile land for raw cotton, agriculture based economy and low laboure cost, Pakistan still performs poorly in textile and apparel exports. Underpinned by the Theory of Practice Base View (PBV), this study's primary objective was to enhance the operational performance (OP) of textile industry of Pakistan with the following antecedents: lean manufacturing (LM), process innovation (PI), and supply chain integration (SCI). Due to unexpectedly weak or inconsistent findings, the study also analyzed the mediating role of SCI in the effects LM, and PI on, OP. The study used a positivist, deductive approach with a quantitative methodology and a cross-sectional time horizon. A questionnaire-based survey was used to collect data from textile mills of Pakistan. The study received 113 responses, out of which 110 were kept for further analysis. Partial Least Squares Structural Equation Modelling (PLS-SEM) was used to test the hypothesis. The study's findings supported three out of the five proposed hypotheses which included the mediating impact of SCI with the R² value of 0.891 and Q² value of 0.443 with direct relation also R²=0.593 and Q²=0.251 through mediation respectively. Specifically, the effect of LM on OP is not significant, whereas this relationship is supported when there is SCI and shows full mediation between LM and OP and partial mediation between PI and OP. This study contributes to the body of knowledge by extending the existing literature on PBV and textile firms' operational performance in the context of a developing country like Pakistan. The findings suggest that the top-level management should effectively implement the practices to enhance operational performance. Supply chain integration also plays a pivotal role in translating these practices into tangible outcomes for textile firms in Pakistan. So, managers also should focus on integration as a facilitator of performance improvements.
... This includes all activities and elements such as transportation, distribution, raw material, final products, etc. Integrated Supply Chain from suppliers, manufacturers, warehouses and stores. This includes activities at every level in the company, starting from strategic planning to operational implementation (Al-Doori et al., 2019). In the SCM concept, all functions related to fulfilling customer demands are always involved. ...
Betawi Ora is an indigenous tribe that lives in Bekasi which is a region of West Java. In terms of cultural distribution, Betawi itself is a tribe originating from Jakarta, but geographically it spreads to the West Java region. The existence of Eco-culinary products cannot be separated from the supply chain management system and environmental sustainability because Eco-culinary is a food that represents the existence of raw materials provided by the environment where the community exists. Based on the background and urgency of this research, the purpose of this research is to find out the relationship between Supply Chain Management, Eco-culinary Product and Environmental Sustainability both directly and indirectly where Eco-culinaru Product mediates the relationship between Supply Chain variables Management and Environmental Sustainability variables. The respondents in this study were 210 managers of Betawi Ora restaurants in Bekasi West Java, Indonesia and employees who maintain supply chain management in that restaurant. Data collection and processing were carried out using the Generalized Structured Component Analysis (GSCA) method. The analytical approach uses the least squares method in the parameter estimation process. The research method is a quantitative survey, analysis of research data is performed using structural equation modeling partial least squares (SEM-PLS) with statistical data processing tools, namely Smart PLS 4.0 software. Results of this research show that supply chain management had a significant effect on environmental sustainability which is mediated by eco-culinary products. Thus, it can be concluded that good quality of supply chain management will be able to produce quality products, and it must be an important consideration that the goal of everything is to create and maintain Environmental Sustainability.
... Total Quality Management (TQM) is a continuous process or operation to locate, mitigate, and eliminate manufacturing errors to maximize their performance and profitability (Romero, Gaiardelli, Powell, Wuest, & Thürer, 2019). In this context, quality measures called "quality and standard of value" typically begin with enhanced quality systems within manufacturing industries, as quality accrues on an operational level as a whole (Al-Doori, Alhorani, Social, & 2019. It can be accomplished by enhancing staff skills through training and training courses, statistical process management, supplier controls, and quality engineering controls (e.g. ...
This study investigates the influence of lean and agile practices on supply chain operational performance in Malaysia manufacturing industry. The lack of IT flexibility, little information sharing, poor delivery performance, and low product quality affect responsiveness, reliability, agility, and cost of supply chain operational performance Malaysia manufacturing industry. This study has utilized the Resource-Based View (RBV) theory to strengthen the framework of this study. The research objectives in this study are to investigate the effect of lean practices and analyzed the effect of agile practices on supply chain operational performance in Malaysia manufacturing industry. To achieve the research objectives, a quantitative research approach is necessitated. The population of this study is 3626 manufacturing companies in Malaysia. The minimum sample size is 107, suggested by a G-power statistical analysis software. Besides, the cluster random sampling technique is used in sample selection. Furthermore, a total of 550 online questionnaires was distributed by email to the manufacturing industry in Malaysia and received a return of 112 responses from respondents representing a 20.36% response rate. Besides, Smart-PLS 3.0 was chosen as the software used for data analysis. Based on research findings, all of the eight hypotheses were supported. The theoretical and practical implication was presented before, the limitations and recommendations were discussed. In conclusion, lean and agile practices play a significant role in improving supply chain operational performance in the Malaysia manufacturing industry.
... This study also investigated the fact that leadership, supplier role, lean practices, quality information analysis, and customer focus promote organizational innovation. The main supply chain factors discovered in this research are the interest rate and inflation rate (Al-Doori et al., 2019). The performance of food supply chain organizations is impacted by these factors, which ultimately affects the economy of the developing countries (Shahbaz et al., 2019a). ...
A
supply chain is a network of organizations that due to globalization are all
deeply connected. If there is a disruption to one of those organizations, it
can destroy the system, which will ultimately influence the economy and
especially the population. It has been found that COVID-19 has negatively
affected most nations around the globe. Developing countries have suffered the
most due to a lack of resources. After an extensive literature review, it can
be concluded that the greatest challenges were experienced in the food supply
chain; industries were halted, but people needed enough food to survive. This
study aimed to verify the impact of COVID-19 on the economy and food supply
chain of Iraq. Six hypotheses were developed and data were collected from the
Iraqi food supply chain. The data were cleaned and then analyzed through
SmartPLS. It was found that COVID-19 has caused a high rate of inflation and
decreased the human development index rate. Although several countries have
lowered their interest rate, the advantages of this have failed to reach
ordinary people. This study will help the government and managers in the food
supply chain industry in their decision-making processes. The study will also
support researchers in developing new theories in this regard.
... Electronic copy available at: https://ssrn.com/abstract=3510631 Bueno, Neto, Catharino, Techima and Sampaio (2006) conceptualize cooperation and collaboration as synonyms. In contrast researchers also distincts between these two expressions. ...
This study explores the possibility of enhancing employee and workplace performance by implementing lean manufacturing practises in a textile industry. It addresses the the limited availability of empirical data concerning lean practices, with a particular focus on the textile industry. Qualitative approaches were employed involving direct observations and in-depth interviews with important stakeholders, followed by a thematic analysis of the data. The findings highlight the effects of lean manufacturing practises (Just-in-Time (JIT), flexibility, and continuous improvement) on worker performance, workplace productivity, quality, and overall organisational performance. The outcomes of this research offer valuable insights and practical recommendations for textile companies aiming to enhance their employee and workplace performance through the adoption of lean manufacturing practices. Such implementation will help to reduce lead time, improve customer satisfaction, and increase productivity and efficiency.
The increasing variety of types of food circulating in Bekasi, has both positive and negative impacts at the same time. The positive impact is the increasing variety of food choices owned by Bekasi residents. In addition, the negative impact is that there is often no guarantee of halalness for the foods offered, both in terms of raw materials, processes and presentations. This study aims to determine the effect of internal control of raw materials and production planning on the smooth process of SMEs, especially based on halal food in Bekasi. The study involved 49 SME entrepreneurs in Bekasi and processed data using the multivariate statistical method and path analysis. The results show that in very specific cases, namely halal food products, internal control and production process planning had a positive influence on the smoothness of the production process and business competitiveness.
Malaysia has faced many supply chain issues that not only have affected enterprises but also the overall economy. Natural disasters that badly affect the performance of Malaysian enterprises strongly demand a comprehensive investigation of supply chain risks. Effective mitigation strategy can only be operationalized when risks are appropriately identified and assessed. Supply chain collaboration has been verified to have a positive impact on the performance but only a limited number of studies investigate it as a risk mitigation tool. The current study presents a guiding framework for identification, assessment, and migration of environment side risks for Malaysian manufacturing. A questionnaire has been developed and distributed by systemic probability sampling. Data have been collected from the Federation of Manufacturing Malaysia through an online survey. The data were purified from missing values and outliers and were analyzed through structural equational modeling through Smart PLS. A total of nine environment side risks were identified. In risk assessment, it has been found that an environment side risk has negative effects on supply chain performance. While these risks can be mitigated through supply chain collaboration, they cannot be mitigated completely. This study will help managers to understand how environment side risks are affecting enterprise performance and how they can avoid these risks. This study covers only environment side risks while future research can be on operational risks and various other approaches that can be proposed for mitigation.
Globalization, rapid technological changes, and growing competition not only facilitate but also make the supply chain more complex and fragile. Any disruption can disturb many organizations and even the whole system. There are many theories and frameworks that present a solution but no study is available that theoretically development framework for supply chain risk management. The focus of this study is to develop a novel framework for identifying the potential risks and assessment of their effects on supply chain performance. Additionally, evaluate the role of supply chain interaction in risk mitigation and performance improvement in Malaysian manufacturing. This is a conceptual paper, systematic as well as content analysis have been done for the literature review. For future study, there is a need to empirically verification of this theoretical framework. The proposed methodology to achieve this framework is; a questionnaire will be developed from a pool and will be validated by exploratory view for risk identification. This questionnaire will be distributed among Malaysian manufacturing and data will be analyzed through Structural Equation Modelling (SEM) for risk assessment and mitigation. The theoretical contribution of this study is support of the theory of swift, even flow as underpinning theory and information processing theory as supportive theory.
Construction is dependent on accurate, timely and safe supply chain, otherwise whole project will be halted. Previously, it has found that most construction projects failed to complete on designated time that ultimately surges the cost as well. Although there are various approaches to deal with the situation, there is evidence that collaboration among stakeholders would reduce the risks and enhance the performance. Therefore, the aim of this study is to verify the relationship between the supply chain performance (SCP) with three stakeholder management approaches, namely supplier relationship (SR), customer relationship (CR), and risk and reward sharing (RRS). A total of 585 questionnaires were distributed using systematic probability sampling of listed construction organizations and only 258 responses were returned. The data were analyzed through the Smart PLS Software using two types of function i.e. PLS Algorithm and Bootstrapping. Based on the PLS Algorithm, the path coefficient results confirm that SR, CR, and RRS influence the SCP. It also has found that all three approaches have 56% of explaining power on SCP (R ² value = 0.560). The bootstrapping function revealed that the three hypotheses supported and this confirmed the hypotheses are true. This study enhances the relationship among stakeholders beyond the traditional collaboration to risk and reward sharing simultaneously. This integration will provide a competitive position as all members share their expertise that will ultimately improve the quality and lead time and enrich the flexibility. Thus, it can be concluded that long-term success is heavily dependent on relationships with the suppliers, customers, risk and reward sharing. This study will help construction managers to understand the importance of good relationships while doing strategic decision making.
Purpose
The purpose of this paper is to scrutinize the performance effects of supply chain risk management (SCRM). Besides financial performance, two aspects of operational performance are examined: operational efficiency and flexibility. Moreover, the authors explore the moderating role of supplier integration in the relationship between SCRM and operational performance.
Design/methodology/approach
A survey-based methodology was adopted. Based on the data from an international survey, this study applied the structural equation modeling and latent moderated structural equations approach to test the hypotheses.
Findings
The results indicate that SCRM positively influences both operational efficiency and flexibility, and has an indirect effect on financial performance. In addition, supplier integration enhances the impact of SCRM on operational flexibility, but does not moderate the relationship between SCRM and operational efficiency.
Originality/value
This study extends the existing literature by providing a comprehensive analysis of the performance effects of SCRM. It also provides managerial insights on both risk management and supplier integration.
Supply chain management SCM practices have determined the performance of organizations throughout the years. Recently there has been an upsurge in research on SCM and related practices in the education industry. The objective of this paper is to explore the potential benefits of adopting supply chain management practices towards the achievement of performance and to attain competitiveness in education industry. This empirical study was conducted among the Malaysian private universities. A total of ten universities are selected and 119 responses were received. The research design consisted of a cross sectional study of selected private universities in Malaysia based on their Setara rating as A, B and C categories. Factor analysis was conducted to explain the variance in the observed variables. Multiple regression analysis was used to test the hypotheses. The empirical results showed that the SCM practices have a positive impact on university performance especially in the of area information sharing and innovation which showing the highest impact. This study may contribute to a more in-depth analysis of the impact of SCM on the performance of private universities.
In this work, so as to determine and evaluate the quality sufficiency of a higher education institution according to students’ feedback, an adequate scale is constructed by reviewing the relevant literature. After performing the tests of reliability and validity on the scale, which poses a means of collecting data, the findings are tested for the statistical analyses such as correlation analysis, and then the relevant comments were provided. This work was conducted at Diyarbakir Vocational High School of Dicle University in the fall semester of 2012.
Purpose
This paper aims to simultaneously examine the impact of three types of supply chain integration (SCI) on three types of company performance from the perspective of organizational capability.
Design/methodology/approach
Using data collected from 617 companies in China and the structural equation modelling method, the research investigates the relationships among internal integration, customer integration, supplier integration, supplier‐oriented performance, customer‐oriented performance, and financial performance from the perspective of organizational capability.
Findings
The results show that internal integration improves external integration and that internal and external integration directly and indirectly enhance company performance. In addition, full or partial mediating effects among SCI and company performance are identified, and therefore explain the inconsistent findings in previous studies regarding the impacts of SCI on performance.
Originality/value
This study contributes to SCI, organizational capability theory literature, and SCI practices.
Improving hospital supply chain performance has become increasingly important as healthcare organizations strive to improve operational efficiency and to reduce cost. In this study, we propose a research model based on a relational view, delineating the factors that influence hospital supply chain performance: trust, knowledge exchange, IT integration between the hospital and its suppliers, and hospital–supplier integration. Testing results of the research model based on data from a sample of 117 supply chain executives from U.S. hospitals show positive direct effects: (1) from trust and from IT integration to knowledge exchange respectively; (2) from knowledge exchange and from IT integration to hospital–supplier integration respectively; and (3) from hospital–supplier integration to hospital supply chain performance. The results also show the following indirect effects: (1) the influences of knowledge exchange and IT integration on hospital supply chain performance are partially and fully mediated by hospital–supplier integration, respectively and (2) the influences of trust and IT integration on hospital–supplier integration are fully and partially mediated by knowledge exchange, respectively. In addition, the results show the following moderating effects: (1) hospital system membership moderates the relationships between IT integration and knowledge exchange and between trust and knowledge exchange; (2) hospital environmental uncertainty moderates the relationship between trust and knowledge exchange; and (3) trust moderates the relationship between knowledge exchange and hospital–supplier integration. Implications of the study findings and directions for future research are discussed.
In recent decades, the topic of internationalization has emerged as one of the defining issues of higher education globally. Different approaches are emerged for the internationalization process according to universities structures and strategic plans, however, universities are still facing the problems in identification of basic steps through which transformation of higher education to internationalization is possible. This study proposed a framework for higher education in Pakistan. In order to energize the whole process towards internationalization, three-step framework utilized for the internationalization of higher education in Pakistan. Study identifies the basic dimensions for the improvements of the services and structure, which leads to internationalization of higher education in Pakistan. Study proposed the use of define, measure, analysis, improve and control cycle for continuous improvements in higher education’s institutions in Pakistan.
Purpose: We present partial least squares (PLS) as an evolving approach to structural equation modeling (SEM), highlight its advantages and limitations and provide an overview of recent research on the method across various fields.
Design/methodology/approach: In this review article we merge literatures from the marketing, management, and management information systems fields to present the state-of-the art of PLS-SEM research. Furthermore, we meta-analyze recent review studies to shed light on popular reasons for PLS-SEM usage.
Findings: PLS-SEM has experienced increasing dissemination in a variety of fields in recent years with non-normal data, small sample sizes and the use of formative indicators being the most prominent reasons for its application. Recent methodological research has extended PLS-SEM’s methodological toolbox to accommodate more complex model structures or handle data inadequacies such as heterogeneity.
Research limitations/implications: While research on the PLS-SEM method has gained momentum during the last decade, there are ample research opportunities on subjects such as mediation or multigroup analysis, which warrant further attention.
Originality/value: This article provides an introduction to PLS-SEM for researchers that have not yet been exposed to the method. The article is the first to meta-analyze reasons for PLS-SEM usage across the marketing, management, and management information systems fields. Our cross-disciplinary review of recent research on the PLS-SEM method also makes this article useful for researchers interested in advanced concepts.
Global supply chains are vulnerable towards different types of risks and are dynamically expanding with the increase in globalisation. Costs are associated with every risk factor that causes disturbances in the allocation of certain goods at the required place and time, and with the required quality and quantity. In this paper, we consider a multi-echelon global supply chain model, where raw material suppliers, manufacturers, warehouses and markets are located in different countries. The paper first identifies all types of operational risk factors, their expected value and probability of occurrence, and associated additional cost. Based on initial information for the risk factors, optimal decisions regarding the inter-echelon quantity flow in the supply chain are made for a single planning horizon. Then, with the change in the expected value of the risk factors, the intra-echelon shift of flow is determined in order to minimise the total cost and risk factors. Considering the complexity involved with the problem, various computational intelligence techniques such as genetic algorithms, particle swarm optimisation and artificial bee colony are applied in the solution evaluation phase. The results obtained using the developed model illustrate that the ability to react to changes in risk factors offers potential solutions to robust supply chain design.
Purpose
In 2004 Lee proposed that successful supply chains must be agile, adaptable, and aligned and described those chains as “Triple‐A” supply chains. The purpose of this paper is to theorize a Triple‐A supply chain performance model that incorporates Triple‐A supply chain status as antecedent to supply chain performance and supply chain performance as antecedent to organizational performance.
Design/methodology/approach
Using data from a national sample of 132 supply chain professionals collected in partnership with APICS, the authors develop scales based on descriptive items listed by Lee for the Triple‐A supply chain strategy dimensions of agility, adaptability, and alignment and assess the complete model using a structural equation methodology.
Findings
Results indicate that Triple‐A supply chain strategy positively impacts supply chain performance and that, in turn, supply chain performance positively impacts organizational performance. Supply chain performance is more strongly related to the marketing performance than to the financial performance of the organization. Additionally, marketing performance positively impacts financial performance.
Research limitations/implications
The major limitation is that only one person in each organization was surveyed with regards to both organizational and supply chain performance. Future research can be aimed at multiple respondents per organization.
Practical implications
Based on the results of this study, the authors argue that organizational success depends on the agility, adaptability, and alignment of supply chains.
Originality/value
This is the first research which has empirically tested Lee's suggestions; his propositions were based on his extensive supply chain research and experience and reported in the Harvard Business Review . The paper's findings are valuable to both practitioners and academic researchers.
The annual World Economic Forum (WEF) in the Swiss town of Davos brings together during January of each year those in command of politics and econ- omy in this world and those "celebrities" who like to be close to them. They represent a world, in which Africa remains at the receiving end of the global power structures and is increasingly again the object of external interests. But while so far those in favour of globalisation had accepted the continent's mar- ginalisation rather unscrupulously, the 2007 WEF emerged as a forum expressing concern over negative side effects of a globalisation, which unleashes new competitors. These not only have negative impacts on the industrial production and labour markets at home, but also turn hitherto secured "backyards" into contested territories. The African continent is these days among the more prominent examples which illustrates this point.
The Sino-US agreement regarding China's accession to the World Trade Organization (WTO) in late 1999 came as a surprise to many observers. How and why did the Chinese reach the agreement in view of the impasses in the negotiation that occurred earlier in the year? These impasses included the collapse of the WTO talks during Zhu's visit to the USA in April, the NATO bombing of the Chinese embassy in Belgrade in May, and the deadlock between the Chinese and US negotiators in November. Drawing on published sources as well as experts' insights, this paper examines the Chinese leadership's decision-making process and its reasons for concluding the agreement. It suggests that the exclusive decision-making circle of top Chinese leaders circumvented the opposition to the agreement and facilitated the negotiations. These leaders, especially Jiang and Zhu, favoured an agreement because they believed WTO membership could improve China's international relations, trade conditions, the outcomes of reform at home, and China's leverage over Taiwan. The closed decision making on the WTO also left the Chinese leaders with a challenging task: educating officials and the population about the WTO rules and possible impacts while ensuring that they abide by the rules.
Purpose - The importance of TQM to organizational achievement and performance has been established by many studies. Nevertheless, studies on the implementation of Total Quality Management (TQM) and its relationship to operational flexibility have been limited, particularly in the developing countries. This study attempts to address this gap by exploring the extent of the application of TQM and its influence on operational flexibility in Jordanian hospitals.
Design/methodology/approach - The study covers both public (King Abdullah University Hospital) and private (Jordan Hospital and Medical Center) health care services. A survey was conducted using a quantitative approach where the researchers distributed 400 questionnaires to selected respondents. The response rate was 57% out of the total questionnaires distributed. TQM is an independent variable which consists of 8 principles, namely, leadership, employee management, information analysis, training, customer focus, continuous improvement, process management and supplier management was examined in relation to operational flexibility as a dependent variable which comprises external flexibility and internal robustness.
Findings - The findings reveal that there is a significant positive relationship between TQM and operational flexibility. We conclude that TQM practices significantly influence the intensity of operational flexibility in Jordanian hospitals.
Originality/value - The significant impact of Total Quality Management (TQM) on operational flexibility have been argued to be positive. The value of the paper points out the influence of total quality management on operational flexibility in Jordanian hospitals in order to improve hospital performance and efficiency.
Supply Chain Management is a network of facilities that produce raw materials, transform them into intermediate goods and then final products, and deliver the products to customers through a distributionsystem. The management of the supply chain and the roles of various actors involved differ from industry to industry and company to company. As a result Supply Chain Management (SCM) has become a vital issue for manufacturers, professionals and researchers. It is felt that to manage the supply chain effectively entire structure of upply chain must be understood properly. This paper attempts to rovide the reader a complete picture of supply chain management through a systematic literature review. It presents main activities of supply chain and the step-by-step approach for understanding a complete picture of supply chain.
TQM is a philosophy and system for continuously improving the services and/or products offered to customers. Now that the technologies of transportation and communication have replaced national economic systems with a global economy, nations and businesses that do not practice TQM can become globally non-competitive rather rapidly. This march towards non-competitiveness can be avoided if citizens are helped to become TQM practitioners. After its development and phenomenal success, Total Quality Management (TQM) was applied outside the industrial sectors to educational organizations, such as universities. This paper investigates the application of TQM to educational organizations using Jordanian higher educational sector as a model example. Higher Education is an important sector in Jordan. The government has introduced several laws and constitutions aimed to further develop this sector, improve its ability to compete. However, little work has been done to measure and control quality in this sector. The work will show that the use of TQM can be of great benefit to the Jordanian universities, as it will lead to an increase in the organization students’ orientation and competitive edge. The paper will also investigate the relation between the application of TQM and the increase in the educational performance and efficiency. The results show that the application of TQM in the Jordanian educational sector leads to increase productivity and ability to compete toward excellence.
Various supply chain coordination issues influencing coordination and performance of supply chain have been discussed in this article. Hypotheses have been proposed to understand the impact of coordination issues on supply chain performance. Proposed hypotheses are tested by data collected through a questionnaire survey from Indian manufacturing companies. Research findings determine the relationship among important issues of supply chain coordination. It has been observed from current research that knowledge sharing, collective learning, sharing of plans and schedules require high level of information sharing. Information technology also assists in sharing quick and huge information among the trading partners. Therefore, a strategy should be formulated to boost information sharing among the supply chain partners. Further findings show that top management commitment, flexibility, incentive mechanisms, building partnership and trust, conducting meetings and providing technical assistance to chain members are supportive to advance coordination and improve performance of supply chain.
With the increasing interest in the customers' role in service processes and value creation, there is a need to explore customer dominant logic in real service settings. This study focuses on the appearance and characteristics of customer dominant logic through a case study conducted in a healthcare service organisation. The main findings of the study concern how customer dominant logic appears in certain situations, when the service provider utilises information about a customer's life and ecosystem. The study results provide a rich contribution towards a deeper understanding of customer dominant logic in services. Practical suggestions are offered to service managers to make their services more customer-centric.
This paper contributes to quality management literature by focusing on the two dimensions of TQM philosophy for continuous improvement, namely, the management system (ST) and the technical system (HT). It critically reviews soft and hard dimensions. Few studies discussed these dimensions separately. This paper attempts to overview these dimensions; it briefly discussing the importance of their usage, followed by review of most ST and HT elements. Finally, it depicted six different TQM models including them collectively in the integrated frameworks. The models are theoretically proposed here; the future direction of this paper is to investigate the applicability of these models empirically in a cross sectional study using surveys as main strategy for data gathering. Quality managers can use these models to establish a better implementation environment in their manufacturing facilities using the appropriate integrated TQM framework.
Within the context of supply chain integration this study illuminates the role of customer satisfaction
and associated performance impacts through the lens of organizational learning theory. This study
investigates the relationships among internal integration, external integration (i.e. with customers and
suppliers), customer satisfaction, and financial performance using survey data collected from 214
manufacturing firms in China. The results suggest that internal integration significantly influences both
dimensions of external integration, customer and supplier integration; and that supplier integration is
significantly and positively related to financial performance. The results also show that customer
satisfaction is significantly and positively related to financial performance and fully mediates the
relationship between customer integration and financial performance. Consistent with organizational
learning theory the study shows that internal integration is an enabler for external integration which
suggests that companies need to progress from good internal practices and processes to effective
management of external processes. In particular this study positions the benefits of integration as
accruing from learning and financial performance being correlated to information flows. This study
suggests that integration is the mechanism whereby information is transmitted and subsequently
synthesized. The contextualization and organization afforded through internal integration facilitates
determining what information to bring in from outside the organization and knowing what to do with
the information when it arrives. Hence a contribution of this study is to tie supply chain integration to
the literature and principles of organizational learning theory thereby opening a new perspective on
the topic.
Purpose – This empirical analysis aims to shed light on the financial implications of supply chain design and in particular on the differences between pull- and push-type designs. The focus is on risk exposure to difficult to foresee supply disruptions, like those resulting from natural and man-made disasters. Design/methodology/approach – The event study framework is applied to the stock performance of four major personal computer (PC) producers after the 1999 earthquake in Taiwan and the computer memory price increases that ensued. Findings – It is shown that investors associate pull-type supply chains for PCs with lower profitability after abrupt component price increases. A parallel analysis of push-type producer stock returns does not show similar results. Furthermore, in-depth analysis of Dell Computer reveals that after the catastrophe-induced disruption the onset of losses to this major pull-type PC producer was very fast. Practical implications – Without condemning pull-type PC supply chains, earthquake-induced disruptions pose risks that require management attention. Originality/value – This empirical study provides evidence linking supply chain strategy and company risk structure.
Purpose – The purpose of this paper is to review the growing literature examining supply chain risk management (SCRM) and to develop a typology of risks in the supply chain. Design/methodology/approach – The paper draws its insights and conclusions from a review of the literature on supply chain risk, and a synthesis of the broader domain of risk management. Findings – While the literature on SCRM is growing, the literature lacks an organized structure for the sources of supply chain risk. The current paper bridges this gap by synthesizing the diverse literature into a typology of risk sources, consisting of environmental factors, industry factors, organizational factors, problem-specific factors, and decision-maker related factors. Practical implications – The paper devises a typology that can be used by managers to measure and assess the vulnerabilities of their company and supply chain. The typology also provides avenues for future research that further guides practitioners in the management of their supply chain risk portfolio. Originality/value – SCRM is rapidly developing into a favored research area for academicians as well as practitioners, especially after the attacks of September 11 and the recent array of natural disasters. This paper develops a methodology for structuring academic inquiry in this important research area.
Emerging research strengthens the connection between supply chain performance and a company's financial performance (D’Avanzo, R., Von Lewinski, H. and Van Wassenhove, L. N., 2003. The link between supply chain and financial performance. Supply Chain Management Review, November/December, 40–47). The focus on integrating functional internal processes has expanded to include the need for integrating these with external processes of business partners (Edwards, P., Peters, M. and Sharman, G., 2001. The effectiveness of information systems in supporting the extended supply chain. Journal of Business Logistics, 22(1), 1–27). This need for enterprise efficiency is compelling companies to review, to identify, and to adopt supply chain initiatives. This research investigates the use of common measurement metrics in an attempt to determine which one(s) are most useful for measuring performance as companies implement SCM practices. For firms that were engaged in SCM we found inventory and cycle time to be the most significant metrics.
The renaming of the Council of Logistics Management (CLM) to the Council of Supply Chain Management Professionals (CSCMP) ushered in some interesting definitional dialogue and debate within the practitioner and academic communities. Inherent in emerging definitions is the notion that SCM encompasses activities traditionally considered aspects of production, logistics, marketing, and operations management. Defining SCM in such a broad scope (i.e., a “within” and “across” functions perspective), while considered by many scholars as the true representation of the essence of SCM, creates confusion regarding the appropriate organizational level within a business that is best suited for managerial decision making regarding the phenomenon. This paper contributes to the emerging SCM dialogue by highlighting the functional spaces (the “within” function perspective), relationships, and conceptual overlaps (the “across” functions perspective) between marketing, logistics, production, operations, and supply chain management. By comparing and contrasting the literature-based conceptual boundaries of each discipline, a framework is proposed that more clearly captures the essence of the SCM decision making sphere. Managerial insights and future research implications are presented.
Design knowledge intensity and throughput variance are both aspects of knowledge, the former relating to organizational management knowledge and the latter characteristic of operational process knowledge. We model and test their relationships to each other and to financial performance. We also examine two context variables as antecedent to knowledge: they are demand unpredictability (a dimension of environmental uncertainty) and mass output orientation (a measure of production technology type). The results show that knowledge completely mediates the effects of context on financial performance; i.e. the context variables impact knowledge and knowledge impacts financial performance, but the context variables have no direct effect on financial performance. Thus, knowledge appears to shield the firm from demand unpredictability, while mass output orientation type affects financial performance only through its impact on knowledge.
Lee [2004. The triple—a supply chain. Harvard Business Review 102–112] articulated that alignment, adaptability, and agility are the basic ingredients for managing supply chain risks. While it is clear that flexibility (agility) enhances supply chain resiliency, it remains unclear how much flexibility is needed to mitigate supply chain risks. Without a clear understanding of the benefit associated with different levels of flexibility, firms are reluctant to invest in flexibility especially when reliable data and accurate cost and benefit analysis are difficult to obtain. In this paper, we present a unified framework and 5 stylized models to illustrate that firms can obtain significant strategic value by implementing a risk reduction program that calls for a relatively low level of flexibility. Some of our model analyses are based on or motivated by models presented in recent literature. Our findings highlight the power of flexibility, and provide convincing arguments for deploying flexibility to mitigate supply chain risks.
In recent years, numerous approaches have been proposed to improve operations performance. Three in particular, just in time, supply chain management, and quality management, have received considerable attention. While the three are sometimes viewed and implemented as if they were independent and distinct, they can also be used as three prongs of an integrated operations strategy. This study empirically examines the extent to which just in time, supply chain management, and quality management are correlated, and how they impact business performance. Results demonstrate that at both strategic and operational levels, linkages exist between how just in time, total quality management, and supply chain management are viewed by organizations as part of their operations strategy. Results also indicate that a commitment to quality and an understanding of supply chain dynamics have the greatest effect on performance.
This thesis comprises two papers that investigate the impact of operational and/or financial hedging on risk management in a global supply chain environment. The problems are derived from the current climate in which many North American firms are heavily contracting overseas suppliers located in China, India, Vietnam and other countries. The theoretical and numerical results obtained in this thesis provide managerial insights to mitigate demand and exchange rate risks in outsourcing in the event that firms are risk averse. The first paper studies operational hedging strategy for firms that face both exchange rate and demand uncertainties. Operational hedging comes in the form of real option to switch production between domestic suppliers and offshore outsourcing suppliers. It demonstrates that these firms benefit from maintaining capacities with both suppliers. The value of the operational option increases as the exchange rate uncertainty or demand uncertainty increases. In addition, when firms become risk-averse, they may use domestic capacity as a hedge against offshore capacity. As a result, the firms may choose to sustain local capacity even if it exhibits negative marginal contribution to the profit. Furthermore, risk-averse firms may retain more total capacity than risk-neutral firms. The second paper expands on the first paper by including financial hedging strategy. It studies a capacity planning problem in which a risk-averse firm plans to reserve capacities with potential suppliers located in multiple countries to hedge demand and exchange rate risks. It provides both analytical and numerical results from a general model with n suppliers, as well as a special case with two suppliers in China and Vietnam. With financial hedging, the risk-averse firm has access to financial markets so that it is able to adjust capacity and production allocation decisions conditional on financial information, the result of which always increases optimal utility. In general La thèse consiste en deux papiers qui étudient l'impact de la couverture opérationnelle et/ou financière sur la gestion du risque dans la chaine de distribution globale. Les problèmes proviennent du fait que beaucoup de firmes nord-américaine sous-contracte une bonne partie de leurs opérations à des fournisseurs situé outre-mer, notamment en Chine, en Inde, au Vietnam ainsi que dans d'autres pays. Les résultats théoriques et numériques obtenu dans cette thèse donnent un aperçu des méthodes de gestion pour mitiger le risque de demande et le risque de taux de change, lors de la sous-traitance à des firmes situés à l'étranger. Le premier papier étudie les stratégies de couverture opérationnelles pour les firmes qui font face à la fois à des incertitudes sur le taux de change et sur la demande. La couverture opérationnelle se présente sous la forme d'une option réelle de changer la production entre des fournisseurs locaux et outre-mer. Nous démontrons que les firmes bénéficient à conserver des capacités de production avec les deux types de fournisseurs. La valeur de l'option opérationnelle augmente avec l'incertitude sur les taux de change et sur la demande. De plus lorsque les firmes sont averse au risque, elles peuvent utilisées les capacités locales pour se couvrir contre les capacités outre-mer. Il en résulte que les firmes peuvent choisir de maintenir la capacité locale même si elle montre une contribution marginale négative au profit. De plus des firmes averses au risque peuvent maintenir encore davantage de capacité. Le deuxième papier étend le premier papier and incluant les stratégies de couverture financière. Dans ce papier nous étudions les problèmes de planification de la capacité de production, dans lesquels les firmes planifient de réserver des capacités de production avec des fournisseurs potentiels situés dans plusieurs pays afin de se couvrir contre le risque de demande et de taux de change. Nous off
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