Showing papers in "International Journal of Operations & Production Management in 2022"

Leveraging the circular economy with a closed-loop supply chain and a reverse omnichannel using blockchain technology and incentives

Abstract: PurposeThis paper aims to analyze the benefits of the blockchain to the circular economy (CE), which is composed of both closed-loop supply chain (CLSC) systems and reverse omnichannel solutions. By ensuring transparency, traceability, visibility and security, the blockchain allows firms to acquire operational capabilities through a CLSC and service capabilities through a reverse omnichannel, which can boost business performance considerably. The related network of relationships can be reinforced by establishing incentives, which entail both smart contracts in the blockchain and active return approaches in CE.Design/methodology/approachAfter identifying the boundaries of the theoretical framework, several research hypotheses are developed according to the literature review and emerging gaps. These gaps link to the impact of the blockchain on CE systems (CLSC and reverse omnichannel), as well as the influence on business performance. The hypotheses are then tested using structural equation modeling and adopting a partial least squares-path modeling technique on a dataset composed of 157 firms. Finally, multigroup analysis is used to test the impact of incentives on the research hypotheses.FindingsThe blockchain facilitates a more efficient CE system, although reverse omnichannel solutions seldom bring any benefits to performance. The shift from a passive to an active return approach must be carefully evaluated. The CLSC network can benefit from an active return approach by developing appealing incentives for collectors and enhancing the positive effects of the blockchain. In contrast, consumer incentives can have detrimental effects on the blockchain. Various combinations of incentives can only bring a few business performance increases, while collector incentives are vital to reinforce the CE system's operational and service capabilities.Originality/valueThis paper takes a new approach toward the study of CE, which considers a dual circular system composed of a CLSC and a reverse omnichannel. The research explores whether the adoption of blockchain technology enables better return processes by improving the operations in CLSC and services in reverse omnichannel. Finally, this is the first empirical work to evaluate the benefits emerging from incentives, which can activate smart contracts in the blockchain and enable active return approaches in CE.

Developing a learning-to-learn capability: insights on conditions for Industry 4.0 adoption

Abstract: Purpose This paper investigates how manufacturers can develop a learning-to-learn capability for enabling Industry 4.0 adoption. Design/methodology/approach This research design is guided by our research question: How can manufacturers develop a learning-to-learn capability that enables Industry 4.0 adoption? The authors adopt action research to generate actionable knowledge from a two-year-long action learning intervention at the Danish rooftop window manufacturer VELUX. Findings Drawing on emergent insights from the action learning intervention, it was found that a learning-to-learn capability based on lean was a core construct and enabler for manufacturers to adopt Industry 4.0 successfully. Institutionalizing an organizational learning scaffold encompassing the intertwined learning processes of systems Alpha, Beta and Gamma served as a significant way to develop a learning-to-learn capability for Industry 4.0 adoption (systematic problem-solving abilities, leaders as learning facilitators, presence of a supportive learning environment and Industry 4.0 knowledge). Moreover, group coaching is a practical action learning intervention for invoking system Gamma and developing leaders to become learning facilitators – an essential leadership role during Industry 4.0 adoption. Originality/value The study contributes to theory and practice by adopting action research and action learning to explore learning-to-learn as a core construct for enabling Industry 4.0 adoption and providing a set of conditions for developing a learning-to-learn capability. Furthermore, the study reveals that leaders are required to act as learning facilitators instead of relying on learning about and implementing Industry 4.0 best practices for enabling adoption.

Blockchain announcements and stock value: a technology management perspective

Abstract: PurposeThis study aims to explore the impact of blockchain announcements on enterprises' stock market value.Design/methodology/approachBased on resource-based theory, this study constructs a complete framework of the impact mechanism of blockchain announcements on the stock price of the announcing firm using the data of 143 blockchain announcements. An event study methodology is used in this research, and the market model, market-adjusted model and Carhart four-factor model are used to estimate stock abnormal returns after the blockchain announcement; and the cross-sectional regression model is used to test the influencing factors.FindingsBlockchain announcements elicit a significantly positive market reaction on the release day. Compared to announcements not pertaining to technical innovation, blockchain technical innovation announcements exhibit a more positive market reaction towards the announcing companies. Strategic-level announcements exhibit a more positive market reaction than operational-level announcements. Enterprise characteristics, such as enterprise-scale and enterprise innovation ability, do not affect stock market reactions to blockchain announcements.Practical implicationsThe findings reveal the economic value of conducting blockchain activities in the Chinese stock market. Findings of this study can help managers understand the value of implementing blockchain activities in a different market environment and guide them on how to improve the market value of their enterprises through the active implementation of blockchain activities.Originality/valueTo the best of the authors’ knowledge, this is the first event study to focus solely on the value of pure blockchain announcements in an emerging market. This study considers multiple resource and capability factors that would influence blockchain technology adoption, improve the current understanding of how blockchain announcements affect corporate stock prices and provide directions for future comparative studies of market reactions to blockchain announcements in different stock markets.

Digital orientation, digital maturity, and digital intensity: determinants of financial success in digital transformation settings

Abstract: PurposeThis study aims to investigate three relevant antecedents of digital transformation (digital orientation, digital intensity and digital maturity) and their influences on the financial success of companies.Design/methodology/approachBuilding on the strategic management and digital transformation literature, five hypotheses are developed to find the relationships between these antecedents and financial success.FindingsDigital orientation and digital intensity alone do not contribute to the financial success of companies. Specifically, digital intensity serves as a negative moderator between digital orientation and financial success, meaning that it reduces the performance effects of digital orientation. Digital maturity acts as a mediator between digital orientation and the financial success of companies and between digital intensity and the financial success of companies.Originality/valueThis research contributes to the literature on strategic management and digital transformation by providing a further understanding of three relevant antecedents of digital transformation (digital orientation, digital intensity and digital maturity) and how they should be positioned alongside digital transformation settings to achieve financial success.

Socially responsible operations in the Industry 4.0 era: post-COVID-19 technology adoption and perspectives on future research

Abstract: PurposeAs focal firms in supply networks reflect on their experiences of the pandemic and begin to rethink their operations and supply chains, there is a significant opportunity to leverage digital technological advances to enhance socially responsible operations performance (SROP). This paper develops a novel framework for exploring the adoption of Industry 4.0 technologies for improving SROP. It highlights current best-practice examples and presents future research pathways.Design/methodology/approachThis viewpoint paper argues how Industry 4.0 technology adoption can enable effective SROP in the post-COVID-19 era. Academic articles, relevant grey literature, and insights from industry experts are used to support the development of the framework.FindingsSeven technologies are identified that bring transformational capabilities to SROP, i.e. big data analytics, digital twins, augmented reality, blockchain, 3D printing, artificial intelligence, and the Internet of Things. It is demonstrated how these technologies can help to improve three sub-themes of organisational social performance (employment practices, health and safety, and business practices) and three sub-themes of community social performance (quality of life and social welfare, social governance, and economic welfare and growth).Research limitations/implicationsA research agenda is outlined at the intersection of Industry 4.0 and SROP through the six sub-themes of organisational and community social performance. Further, these are connected through three overarching research agendas: “Trust through Technology”, “Responsible Relationships” and “Freedom through Flexibility”.Practical implicationsOrganisational agendas for Industry 4.0 and social responsibility can be complementary. The framework provides insights into how Industry 4.0 technologies can help firms achieve long-term post-COVID-19 recovery, with an emphasis on SROP. This can offer firms competitive advantage in the “new normal” by helping them build back better.Social implicationsPeople and communities should be at the heart of decisions about rethinking operations and supply chains. This paper expresses a view on what it entails for organisations to be responsible for the supply chain-wide social wellbeing of employees and the wider community they operate in, and how they can use technology to embed social responsibility in their operations and supply chains.Originality/valueContributes to the limited understanding of how Industry 4.0 technologies can lead to socially responsible transformations. A novel framework integrating SROP and Industry 4.0 is presented.

“Managing the “new normal”: the future of operations and supply chain management in unprecedented times”

Abstract: PurposeThe purpose of this article is to discuss the theme of managing operations and supply chains in the so-called “new normal”. It reflects the themes emerging from recent research and how these might be conceptualized.Design/methodology/approachThe article reviews research presented at the EurOMA 2021 conference and eight papers subsequently developed into full journal papers. It considers conceptual themes contained in these papers and how they reflect recent turbulent events in the external business environment.FindingsThe article notes the themes of resilience in relation to the Covid-19 pandemic, environmental sustainability, especially climate change and the Sustainable Development Goals, and the significance of digital technologies. Additional themes relating to inter-organizational relationships, complexity and manager cognition are also considered. In order to provide useful insights for future disruptions, general concepts on epistemology and responsiveness are described.Originality/valueThe article discusses general principles across cutting-edge research in operations and supply chain management, to support improved performance to add economic and social value.

The role of absorptive capacity in the adoption of Smart Manufacturing

Abstract: PurposeSmart Manufacturing (SM) lies at the core of Industry 4.0. Operations management research has identified several factors influencing firms’ ability to adopt SM. However, a clear understanding of capabilities needed to progress in SM is still missing. This paper aims to investigate how absorptive capacity (AC) allows firms to advance in SM and explore how managerial antecedents support the capacity to absorb SM-related knowledge at different stages of SM adoption.Design/methodology/approachThis study adopts an exploratory approach through multiple case studies. Twelve firms, operating as part of the automotive supply chain and exhibiting different stages of SM adoption, constitute the sample.FindingsThe results suggest that advancement in SM requires firms to progressively reinforce their AC. Firms’ ability to acquire and assimilate SM knowledge is supported by managerial antecedents encompassing integrative capacities to bridge old and SM technologies, managerial cognition through the clear alignment of SM technologies with strategic goals and knowledge development capabilities through practices oriented to provide senior managers with SM competences.Originality/valueThe findings contribute to SM research by suggesting that AC is a crucial dynamic capability for SM adoption. The results also provide evidence-grounded recommendations to firms engaged in the digital transformation on the managerial capabilities needed to support AC and to progress from lower to higher stages of SM.

Fostering firms' ability to cascade sustainability through multi-tier supply chains: an investigation of power sources

Abstract: PurposeA firm's ability to cascade sustainability requirements further down to lower-tier suppliers might be affected by inter-firm power relations. This study aimed to identify the power sources of focal firms and first- and lower-tier suppliers and to investigate how they may affect their ability to cascade sustainability requirements along multi-tier supply chains.Design/methodology/approachA multiple case study of 24 companies was conducted to investigate the sources of power in multi-tier supply chains. In total, 42 informants from five focal companies, ten first-tier suppliers and nine lower-tier suppliers were interviewed.FindingsDifferences were found between the sources from which focal firms and first- and lower-tier suppliers drew power. Findings revealed that firms' power sources may increase or impair their ability to cascade sustainability requirements to lower supply chain tiers. Furthermore, multi-tier supply chain-level power sources constitute a significant determinant of firms' ability to disseminate sustainability requirements to lower-tier suppliers.Practical implicationsThe results can help companies and purchasing managers understand how their own and suppliers' power may affect their ability to cascade sustainability agendas to lower-tier suppliers. In particular, the results can be useful for supplier selection and the development of supplier relationship management strategies for fostering sustainability in multi-tier supply chains.Originality/valueThis study places traditional power perspectives in the context of multi-tier sustainable supply chain management, broadening the view beyond dyadic relationships that have traditionally been the focus of the supply management literature.

Data analytics capability and servitization: the moderated mediation role of bricolage and innovation orientation

Abstract: PurposeDespite the potential influence of data analytics capability on servitization, the understanding of the underlying mechanisms of this influence remains unclear. This study aims to explore how data analytics capability affects servitization by examining the mediation effect of bricolage and the conditional role of innovation orientation.Design/methodology/approachThis study employs the moderated mediation method to examine the proposed research model with archival data and multiple-respondent surveys from 1,206 top managers of 402 manufacturing firms in the Yangtze River Delta area in China.FindingsBricolage partially mediates the positive relationship between data analytics capability and servitization, and innovation orientation positively moderates this effect.Practical implicationsManufacturers can leverage bricolage to materialize data analytics capability for servitization. Manufacturers should also pursue an innovation orientation to fully glean the benefits of bricolage in transforming data analytics capability into servitization.Originality/valueThis study opens the black box of how data analytics capability affects servitization by revealing the underlying mechanism of bricolage and the boundary condition role of innovation orientation for this mechanism. It offers valuable insights for practitioners to leverage data analytics to improve servitization through developing bricolage and cultivating a culture of innovation orientation.

Capabilities for enhancing supply chain resilience and responsiveness in the COVID-19 pandemic: exploring the role of improvisation, anticipation, and data analytics capabilities

Abstract: Purpose This study aims to identify critical capabilities to address unforeseen and novel disruptions, such as those instigated by COVID-19, and explore their role as essential enablers of supply chain resilience and responsiveness, leading to improved performance. Design/methodology/approach The structural equation modeling technique was employed for analyzing the proposed associations using survey data from 206 manufacturers operating during the COVID-19 pandemic in a developing country, Pakistan. Findings Key findings show how improvisation and anticipation act distinctly yet jointly to facilitate supply chain resilience and responsiveness during the COVID-19 pandemic. Also, data analytics capability positively affects anticipation and improvisation, which mediate the effect of data analytics on supply chain resilience and responsiveness. Research limitations/implications The findings contribute to the theoretical and empirical understanding of the existing literature, suggesting that a combination of improvisation, anticipation and data analytics capabilities is highly imperative for enhancing supply chain resilience and responsiveness in novel and unexpected disruptions. Originality/value This is the first study to examine the impact of data analytics on improvisation and anticipation and the latter as complementary capabilities to enhance supply chain resilience and responsiveness. The empirical investigation explores the interplay among data analytics, improvisation, and anticipation capabilities for enhancing supply chain resilience, responsiveness, and performance during the unforeseen and novel disruptions, such as brought to bear by the COVID-19 pandemic.

Purchasing realized absorptive capacity as the gateway to sustainable supply chain management

Abstract: PurposeCompanies' ability to build sustainable supply chains and achieve strategic sustainability objectives largely depends on their supply network characteristics and the nature of the relationships with strategic suppliers. This poses the question of how purchasing departments can help to translate this sustainability commitment into performance benefits. The authors focus the attention on buyer-supplier information sharing practices and study how the availability of information interplays with the purchasing realized absorptive capacity (PRAC) to positively impact performance (operational, environmental and social).Design/methodology/approachThe study collected data from 305 procurement executives in four European countries and tested the hypotheses empirically using structural equation modeling. Mediation analysis is used to test the effect of PRAC on the relationship between buyer-supplier information sharing and performance.FindingsThe results show that increasing buyer-supplier information sharing is sufficient to obtain a positive impact on operational performance. To improve purchasing sustainability performance, companies need to develop their PRAC to adequately transform and exploit external information and identify opportunities in the environmental and social areas. Thanks to these purchasing capabilities, organizations can overcome potential trade-offs between different performance dimensions.Originality/valueIn the context of collaborative buyer-supplier relationships, this study is one of the first to propose purchasing knowledge management capabilities (i.e. PRAC) as a key factor to improve multiple performance dimensions. Additionally, it captures different sustainability aspects, concluding that organizations can improve purchasing operational, environmental and social performances by implementing appropriate information sharing mechanisms with suppliers and developing their PRAC.

Addressing modern slavery in supply chains: an awareness-motivation-capability perspective

Abstract: PurposeThere is still significant variation in firms' efforts to address modern slavery issues in supply chains despite the importance of this grand challenge. This research adopts the awareness-motivation-capability (AMC) framework to investigate AMC-related factors that help to explain this variation.Design/methodology/approachThe authors hypothesize how AMC-related factors, including media coverage of modern slavery issues, slavery risks in supply chains and corporate sustainability performance, are related to firms' efforts to address modern slavery in supply chains. The proposed hypotheses are tested based on 201 UK firms' modern slavery statements and additional secondary data collected from Factiva, Factset Revere, The Global Slavery Index, Worldscope and Sustainalytics.FindingsConsistent with the AMC perspective, the test results show that firms put more effort into addressing supply chain modern slavery issues when there is greater media coverage of these issues, when firms source from countries with higher slavery risks, and when firms have better corporate sustainability performance. Additional analysis further suggests that firms' financial performance is not related to their efforts to address modern slavery issues.Originality/valueThis is the first study adopting the AMC framework to investigate firms' efforts to address modern slavery in supply chains. This investigation provides important implications for researchers studying firm behaviors related to modern slavery issues and for policymakers designing policies that enable firms to address these issues, in view of their awareness, motivation and capability.

Building synergies between operations culture, operational routines, and supplier monitoring: implications for buyer performance

Abstract: PurposePressured by various stakeholder groups to improve the sustainability performance of their emerging economy suppliers, multinational firms continue to expand their supplier monitoring. Leveraging the strategy literature on alliances and the buyer-supplier relationship management literature, the authors propose that a buyer firm's efforts to proactively develop cultural sensitivity and operations cognizance to understand the operational culture and routines of its suppliers can ameliorate some shortcomings of supplier monitoring, thereby improving the performance of the buyer firm.Design/methodology/approachUsing primary survey data from a sample of US manufacturing firms, combined with secondary data of supplier monitoring and financial performance, this research examines the relationship between supplier monitoring, cultural sensitivity, operations cognizance, and buyer firm performance.FindingsSupplier monitoring was associated with positive but diminishing returns for financial and sustainability performance for the buyer. Second, increasing cultural sensitivity and operations cognizance for suppliers in emerging economies were associated with improved buyer performance. Finally, the synergistic use of supplier monitoring and operations cognizance was associated with improved buyer firm financial performance.Originality/valueWhile the buyer-supplier relationship literature has mainly treated organizational differences between dyadic supply chain partners as exogenous to the context in which their relationship evolves, the authors posit that buyer firms' efforts to understand such differences can affect the value of buyer-directed interactions, such as supplier monitoring. This research adds to the theoretical understanding of the process of developing relational mechanisms with emerging economy suppliers. In particular, efforts of buyer firms to better understand the operational culture and routines of their suppliers can complement monitoring and are associated with a positive impact on performance.

Big data and big disaster: a mechanism of supply chain risk management in global logistics industry

Abstract: PurposeAlthough big data may enhance the visibility, transparency, and responsiveness of supply chains, whether it is effective for improving supply chain performance in a turbulent environment, especially in mitigating the impact of COVID-19, is unclear. The research question the authors addressed is: How do logistics firms improve the supply chain performance in COVID-19 through big data and supply chain integration (SCI)?Design/methodology/approachThe authors used a mixed-method approach with four rounds of data collection. A three-round survey of 323 logistics firms in 26 countries in Europe, America, and Asia was first conducted. The authors then conducted in-depth interviews with 55 logistics firms.FindingsIn the first quantitative study, the authors find mediational mechanisms through which big data analytics technology capability (BDATC) and SCI influence supply chain performance. In particular, BDATC and SCI are two second-order capabilities that help firms develop three first-order capabilities (i.e. proactive capabilities, reactive capabilities, and resource reconfiguration) and eventually lead to innovation capability and disaster immunity that allow firms to survive in COVID-19 and improve supply chain performance. The results of the follow-up qualitative analysis not only confirm the inferences from the quantitative analysis but also provide complementary insights into organizational culture and the institutional environment.Originality/valueThe authors contribute to supply chain risk management by developing a three-level hierarchy of capabilities framework and finding a mechanism with the links between big data and big disaster. The authors also provide managerial implications for logistics firms to address the new management challenges posed by COVID-19.

Dynamic openness for network-enabled product and process innovation: a panel-data analysis

Abstract: PurposePrior research on open innovation has not investigated changes in knowledge acquisition strategies of firms over time overlooking how learning from past knowledge acquisition can change subsequent search strategies. Also, prior research has focused principally on product innovation overlooking process innovation. The purpose of the paper is to introduce the concept of dynamic openness, which is defined as temporal changes in external knowledge search strategy. We explore four dynamic openness strategies – closing down, opening up, persistent open and persistent closed – and examine the impact of these strategies on both product and process innovation.Design/methodology/approachThe authors used a panel dataset of 16,021 firms based on five waves (2009–2017) of the UK Community Innovation Survey (UKIS). All models are estimated using firm and year fixed effects (FE) method to control for endogeneity that arises from unobserved heterogeneity. Endogeneity and robustness tests were carried out to ensure the validity of results.FindingsThe results show that firms do use dynamic openness strategies over time leveraging learning from past searches. Specifically, the study indicates that closing down is not an effective strategy for either type of innovation. For process innovation, firms should pursue opening up strategy rather than persistent open strategy, whereas for product innovation firms could pursue either strategy, highlighting important contextual differences.Originality/valueThe paper contributes to the literature on knowledge acquisition in open innovation: (1) by theorizing the underlying reasons – learning from past collaborations, absorptive capacity and external knowledge heterogeneity – why firms pursue one dynamic openness strategy over another and (2) by extending literature by delineating the dynamic openness strategies that firms should pursue in process innovation vs product innovation.

Environmental collaboration with suppliers and cost performance: exploring the contingency role of digital orientation from a circular economy perspective

Abstract: PurposeTo examine the interplay between sustainable supply chain management (SSCM) and circular economy, this research conceptualises and empirically tests an integrative framework of environmental information exchange with suppliers (ES), environmental product design (EPD) and cost performance (CP) with the contingency effect of digital orientation (DO). The associations proposed in the integrative framework provide a configuration of SSCM practices that support circular economy's restorative processes in the digital age.Design/methodology/approachThe resource orchestration theory and contingency theory are used to investigate the mediation and moderating effects, which were tested by a moderated mediation analysis of survey data of 100 firms in Australia.FindingsThe results show that EPD fully mediates the relationship between ES and CP. Further, DO was found to moderate the relationship between EPD and CP, but not the relationship between ES and EPD.Practical implicationsThe empirical findings of this study offer an effective SSCM practice configuration for firms seeking to target advanced circular business models and economic benefits. Managers should be aware that ES may not be enough to improve CP; EPD is a required mechanism to translate the ES benefits into cost superiority. Managers should also stimulate a DO culture to develop effective EPD capabilities, which leads to improved CP and a foundation for companies seeking to target circularity.Originality/valueThis study advances prior theoretical and practical knowledge. The authors propose and empirically test an integrated SSCM and circular economy model that incorporates mediation and moderation effects to clarify inconsistent findings in prior work, which provides a more holistic and practical understanding of SSCM practices in the digital context. Furthermore, the SSCM literature recommends the adoption of circular economy principles. The integrated model in this study provides a bridge between SSCM and circular economy.

Mitigating personal protective equipment (PPE) supply chain disruptions in pandemics – a system dynamics approach

Abstract: PurposeThe coronavirus disease (COVID-19) pandemic has emerged as an unprecedented health crisis worldwide and heavily disrupted the healthcare supply chain. This study focuses on analysing the different types of disruptions occurring in personal protective equipment (PPE) supply chains during the COVID-19 pandemic and on proposing mitigation strategies that are fit to the global scale and many interdependencies that are characteristic for this pandemic. The authors construct a conceptual system dynamics model (SD) based on the literature and adjusted with the use of empirical data (interviews) to capture the complexity of a global supply chain and identify leverage points (mitigation strategies).Design/methodology/approachThis research follows a mix-methods approach. First, the authors developed a conceptual framework based on four types of disruptions that usually occur during health emergencies (direct effect, policy, supply chain strategy, and behaviourally induced disruptions). Second, the authors collected and analysed data from interviews with experts in the PPE supply chain. Based on the interviews data, the authors developed a conceptual system dynamics (SD) model that allows to capture the complex and dynamic interplay between the elements of the global supply chain system, by highlighting key feedback loops, delays, and the way the mitigation strategies can impact on them. From this analysis, the authors developed four propositions for supply chain risk management (SCRM) in global health emergencies and four recommendations for the policy and decision makers.FindingsThe SD model highlights that without a combination of mitigation measures, it is impossible to overcome all disruptions. As such, a co-ordinated effort across the different countries and sectors that experience the disruptions is needed. The SD model also shows that there are important feedback loops, by which initial disruptions create delays and shortages that propagate through the supply chain network. If the co-ordinated mitigation measures are not implemented early at the onset of the pandemic, these disruptions will be persistent, creating potential shortages of PPE and other critical equipment at the onset of a pandemic – when they are most urgently needed.Originality/valueThis research enriches the understanding of the disruptions of PPE supply chains on the systems level and proposes mitigation strategies based on empirical data and the existing literature.

Rebuilding disrupted supply chains: How can a self-organised social group facilitate supply chain resilience?

Abstract: PurposeThis paper seeks to explore how a self-organised social group (SOSG) can facilitate supply chain resilience (SCRES) during an emergency condition.Design/methodology/approachA netnographic research was conducted on SONJO, an online SOSG emerging in response to problems in personal protective equipment (PPE) and food small businesses' supply chains (SCs) during the state of COVID-19 emergency in Yogyakarta, Indonesia. Qualitative data of 237,010 words were extracted from the group chats among 223 SONJO WhatsApp Group (WAG) members and were analysed using template analysis.FindingsThis paper reveals five communicative acts through which the SOSG facilitates SCRES, namely supply chain (SC) knowledge sharing, networking, bridging, mapping, and mindfulness. The enactment of these communicative acts could foster SC collaboration and help rebuild and sustain the SC operations during the critical period of the pandemic. The SOSG also facilitates the SC actors to be heedful of their responsive actions and risky operations.Practical implicationsThis paper emphasises the need for organisations to build and maintain relationships with social communities and to extend their social capital beyond their existing SC linkages as an alternative way to survive unexpected disruptions.Originality/valueThis paper offers a novel perspective to understand SCRES from an external force. It proposes that, in the face of a devastating disruption, SCRES is not a self-induced process and that the SOSG could play a pivotal role in rebuilding the disrupted SCs. It also shows how a humanitarian effort could help rebuild commercial SCs.

Switchover to industrial additive manufacturing: dynamic decision-making for problematic spare parts

Abstract: Purpose Introducing additive manufacturing (AM) in a multinational corporation with a global spare parts operation requires tools for a dynamic supplier selection, considering both cost and delivery performance. In the switchover to AM from conventional manufacturing, the objective of this study is to find situations and ways to improve the spare parts service to end customers. Design/methodology/approach In this explorative study, the authors develop a procedure – in collaboration with the spare parts operations managers of a case company – for dynamic operational decision-making for the selection of spare parts supply from multiple suppliers. The authors' design proposition is based on a field experiment for the procurement and delivery of 36 problematic spare parts. Findings The practice intervention verified the intended outcomes of increased cost and delivery performance, yielding improved customer service through a switchover to AM according to situational context. The successful operational integration of dynamic additive and static conventional supply was triggered by the generative mechanisms of highly interactive model-based supplier relationships and insignificant transaction costs. Originality/value The dynamic decision-making proposal extends the product-specific make-to-order practice to the general-purpose build-to-model that selects the mode of supply and supplier for individual spare parts at an operational level through model-based interactions with AM suppliers. The successful outcome of the experiment prompted the case company to begin the introduction of AM into the company's spare parts supply chain.

Comparing regions globally: impacts of COVID-19 on supply chains – a Delphi study

Abstract: PurposeThe COVID-19 pandemic has challenged supply chains (SCs) around the globe unprecedentedly. This study aims to gain insights on the impacts of the pandemic on SCs and their management under consideration of different regional contexts on a global scale.Design/methodology/approachA Delphi study collects the expertise of global SC academics on the SC vulnerabilities and the measures for responding to disruptions, improving resilience, and restoring operations. Data from three polls are systematically analyzed by content, frequency, and cluster analysis.FindingsThe study identifies and ranks ten major issues related to SC vulnerabilities and management strategies for specific SC processes and geographical regions. Detected differences among the considered geographical regions point towards particular challenges and call for specific measures to integrate regional contingencies into SC management. In a regional comparison, China and Iran as well as Africa clearly stand out, but also Europe/North America, India/Pakistan, and Brazil show geographical particularities.Research limitations/implicationsThe responses are collected against the COVID-19 pandemic, while the findings show differences among the regions thereby arguing for taking regional contingencies into account in managing SCs.Practical implicationsSC resilience is a core aim, which was emphasized by the COVID-19 pandemic. The findings provide insights and challenges that managers would have to meet in the different regions covered.Originality/valueThis paper contributes to existing knowledge on SC risks and SC resilience in context to extreme situations. Given that events, such as the COVID-19 pandemic, will become more frequent in the future due to climate change and geopolitical tensions, insights into how to manage SCs under extreme conditions and into regional differences are crucial.

The mediating role of knowledge management processes in the effective use of artificial intelligence in manufacturing firms

Abstract: PurposeThis paper aims to provide and empirically test a conceptual model in which artificial intelligence (AI), knowledge management processes (KMPs) and supply chain resilience (SCR) are simultaneously considered in terms of their reciprocal relationships and impact on manufacturing firm performance (MFP).Design/methodology/approachIn the study, six hypotheses have been developed and tested through an empirical survey administered to 120 senior executives of Italian manufacturing firms. The data analysis has been carried out via the partial least squares structural equation modelling approach, using the Advanced Analysis for Composites 2.0 variance-based software program.FindingsUsing a conceptual model validated using an empirical survey, the study sheds light on the relationships between AI, KMPs and SCR, as well as their impacts on MFP. In particular, the authors show the positive effects of the adoption of AI on KMPs, as well as the influence of KMPs on SCR and MFP. Finally, the authors demonstrate that KMPs act as a mediator through which AI affects SCR and MFP.Practical implicationsThis study highlights the critical role of KMPs for manufacturing firms that can deploy AI to stimulate KMPs and through attaining a high level of the latter might succeed in enhancing both their SCR and MFP.Originality/valueThis study demonstrates that manufacturing firms interested in properly applying AI to ameliorate their performance and resilience must carefully consider KMPs as a mediator mechanism.

The role of the hub-firm in developing innovation capabilities: considering the French wine industry cluster from a resource orchestration lens

Abstract: PurposeThis paper explores how hub-firms in a regional industrial cluster orchestrate resources to enhance the innovation capabilities of member firms and how this role changes as innovation projects develop. The work advances our understanding of how innovation-oriented clusters can drive the collaboration process, support the development of member capabilities and achieve desired outcomes.Design/methodology/approachThe research utilises exploratory case studies within an innovation cluster, where a hub-firm brings together different players for specific innovation projects. Using resource orchestration theory, the paper analyses six project cases to reveal the shifting roles and activities related to structuring, bundling and leveraging different resources for innovation capabilities particularly associated with improved quality and reputation for the firms and region.FindingsThe study reveals the important role played by the cluster hub-firm in structuring, bundling and leveraging resources to create and fund project teams. After project formation, a team member takes the role of an orchestrator to bundle further and then leverage the resources to achieve desired outcomes for the team and the region.Research limitations/implicationsThis work focuses on a wine industry but has implications for the success orchestration of other regional industrial clusters. Also, the lack of hub-firm interaction during the project process provides an opportunity to consider mechanisms for better guidance of the project team.Practical implicationsThere are implications for practitioners for participating in and further improving the collaborative innovative process.Social implicationsPolicymakers can benefit from the study as the required practices for stimulating innovation capabilities and economic development in a region are discussed.Originality/valueThis research enhances understanding of the hub-firm's role in a regional cluster not only in orchestrating resources to create collaborative innovation projects but how the role shifts over time.

Quality functions' use of customer feedback as activation triggers for absorptive capacity and value co-creation

Abstract: PurposeThe purpose is to understand how the role of quality functions might evolve amidst digitalisation and an increased focus on services. This study focuses on customer feedback and how it can function as activation triggers for developing absorptive capacity, as well as how it relates to the value creation processes.Design/methodology/approachFollowing a qualitative research design, the authors gathered primary data from interviews with quality managers at 17 UK and Swedish firms and triangulated it with secondary information from the firms' web pages.FindingsThe findings show that customer feedback-based activation triggers can support development of absorptive capacity in the quality function if there are established processes for acting on customer feedback. This is often the case for codified feedback, which normally concerns products. However, digitalisation offers new opportunities of engaging in value co-creation, and firms need to develop digital capabilities to manage new technologies and data analytic tools. For personalised feedback (the main category of service-related feedback), established processes are missing.Originality/valueThis study work contributes to knowledge about how quality functions respond to customer feedback on both products and services. It clarifies why the quality function sometimes struggles to contribute to service quality as much as to product quality. From a theory development perspective, the authors contribute to understanding customer feedback-based activation triggers, how they lead to development of absorptive capacity and their relation to value co-creation on a functional level.

Redesigning global supply chains during compounding geopolitical disruptions: the role of supply chain logics

Abstract: PurposeWhy do managers redesign global supply chains in a particular manner when faced with compounding geopolitical disruptions? In answering this research question, this study identifies a constrained system of reasoning (decision-making logic) employed by managers when they redesign their supply chains in situations of heightened uncertainty.Design/methodology/approachThe authors conducted 40 elite interviews with senior supply chain executives in 28 companies across nine industries from November 2019 to June 2020, when the UK was preparing to leave the European Union, the US–China trade war was escalating, and Covid-19 was spreading rapidly around the globe.FindingsWhen redesigning global supply chains, the authors find that managerial decision-making logic is constrained by three distinct environmental ecosystem conditions: (1) the perceived intensity of institutional pressures; (2) the relative mobility of suppliers and supply chain assets; and (3) the perceived severity of the potential disruption risk. Intense government pressure and persistent geopolitical risk tend to impact firms in the same industry, resulting in similar approaches to decision-making regarding supply chain design. However, where suppliers are relatively immobile and supply chain assets are relatively fixed, a dominant logic is consistently present.Originality/valueBuilding on an institutional logics perspective, this study finds that managerial decision-making under heightened uncertainty is not solely guided by institutional pressures but also by perceptions of the severity of risk related to potential supply chain disruption and the immobility of supply chain assets. These findings support the theoretical development of a novel construct that the authors term ‘supply chain logics’. Finally, this study provides a decision-making framework for Senior Executives competing in an increasingly complex and unstable business environment.

Supply chains and the success of M&As: investigating the effect of structural equivalence of merging firms' supplier and customer bases

Abstract: PurposeThis study investigates the extent to which structural equivalence between acquiring and target firms is associated with post-merger and acquisition (M&A) performance—a relationship that is proposed to be moderated by industry-level vertical relatedness between acquiring and target firms.Design/methodology/approachApplying social network analysis and regression, this study analyzes a buyer–supplier relationship network dataset of 279 M&A deals completed between 2010 and 2017 to test the hypotheses. Structural equivalence is measured as the proportion of common customers and suppliers between an acquiring firm and a target firm.FindingsSupporting a view about the importance of supply chains in explaining M&As outcomes, the results suggest that the structural equivalence in the supplier network is positively associated with post-M&A firm performance. The results also show that the effect of the structural equivalence in the customer network is moderated by vertical relatedness between two merging firms (i.e. structural equivalence contributes to post-M&A performance when vertical industry relatedness is high).Originality/valueThis study contributes to the M&A and supply network literature by investigating the performance implications of structural equivalence in supplier and customer networks, demonstrating the importance of taking a supply chain view when explaining M&As outcomes. Specifically, the authors suggest considering structural equivalence as a new type of relatedness between merging firms (i.e. relatedness in network resources in explaining post-M&A performance). It also indicates how industry-level vertical resource relatedness, which is about relatedness in internal resources between the two firms, could interact with firm-level network resource relatedness, which is about relatedness in external supply chain resources between the two firms, in affecting post-M&A performance.

Interplay between servitization and platforms: a longitudinal case study

Abstract: Purpose This paper aims to empirically explore the evolution of servitization and how platforms affect the transition between the stages of servitization. Design/methodology/approach The authors conducted an in-depth case study of a Chinese manufacturer (i.e. Haier) using a longitudinal design. Three rounds of data collection were conducted between 2014 and 2020. The authors carried out 50 semi-structured interviews and 11 workshops to collect data from senior and middle managers of Haier and its business partners. Findings The authors found that Haier’s servitization journey includes three stages (i.e. product-oriented solution, integrated solution and smart connected solutions) that evolve in the target of the services and the digital components of the solutions. Haier has also developed three types of platforms (i.e. service platform, supply chain platform and platform ecosystem) to support the implementation of servitization. The empirical evidence reveals that platforms can address the complexities that emerged when Haier implements the different stages of servitization as well as enable Haier to transition from one stage of servitization to the next. Originality/value This study enhances the current understanding of the evolution of servitization and the roles of digital technologies in the transition between the stages of servitization. It also provides empirical evidence regarding how the platform approach enables the development of servitization. By clarifying the interplay between servitization and platforms, this study provides guidelines for managers on how to develop platforms to both advance and benefit from servitization.

Supplier absorptive capacity: learning via boundary objects in sustainability-oriented supplier development initiatives

Abstract: PurposeTo study the learning processes and mechanisms involved in sustainability-oriented supplier development (SSD), including how knowledge is transmitted by the buyer and how it is received, understood and internalised by the supplier.Design/methodology/approachAn exploratory longitudinal multi-case study approach is adopted. The research context is a social SSD project focusing on occupational health and safety (OHS) management at four supplier factories. The paper draws on the constructs of absorptive capacity and boundary objects.FindingsThe development of a supplier's absorptive capacity for OHS management is triggered by the transfer of boundary objects that are created by the buyer. Findings suggest that each supplier starts explorative learning in a similar and passive way in order to accept the knowledge, but then each supplier proactively transforms and exploits the knowledge through continuous sensing, seizing, and reconfiguring loops that develop the boundary objects in a way that fits their own needs and contexts, incorporating the objects into organisational structures and routines.Research limitations/implicationsThe research furthers the understanding of the development of supplier absorptive capacity for sustainability via SSD projects, including how it is triggered and sustained. The impact of ostensive and performative aspects of boundary objects on knowledge transfer is presented. Finally, insight is provided into how absorptive capacity and dynamic capabilities are linked in the context of SSD.Practical implicationsBuying firms should seek to develop boundary objects that can trigger and maintain learning momentum for sustainability at supplier organisations in addition to effectively transferring SSD-related sustainability knowledge. There is also a need to allow for sufficient flexibility in the design of the boundary objects, and to pay sufficient attention to how suppliers contextualise and embed them into their own organisations, providing support for this process where necessary. For the supplier, establishing structures and routines for OHS management can help to prepare for future audits, thereby reducing audit fatigue.Originality/valueThe paper contributes to the supply chain learning literature by exploring the development of supplier absorptive capacity for sustainability triggered by the focal buying firm. It sheds new light on the role of boundary objects for facilitating knowledge transfer and learning between supply chain members in the context of SSD projects.

Supply chain transparency for sustainability – an intervention-based research approach

Abstract: Purpose The COVID-19 pandemic has impacted all manufacturing sectors from basic products to luxury goods including the automobile industry. This has necessitated a new line of research on competency building, transparency, and sustainability in automotive supply chains. In this study, the authors examine the competencies required to improve the automotive supply chain routine operations to address the parts supply crisis from multitier suppliers in the post-COVID-19 environment. The authors also propose a list of competencies required in the automotive supply chains to deploy the transparency for sustainability (TfS) framework on a long-term basis. Design/methodology/approach The authors have adapted a cross-case study process using intervention-based research and a design science approach for use in this study and used multiple sources for data collection such as published literature, operational experience, and critical opinions of original equipment manufacturer representatives. The research design includes interviews with global OEMs practitioners as one of the relevant sources of information. Findings The impact of the COVID-19 pandemic outbreak on automotive manufacturing operations and global supply chains is unprecedented. The TfS framework cycle has been validated using the real-world semiconductor supply crisis which deals with multitier sustainable supply chain management (MTSSCM), and the authors found that there are competency gaps when compared with existing literature. The list of key competencies identified along with the formulation of design propositions to facilitate both the supply crisis and collaboration among automotive firms to enhance their business performance were also presented. Research limitations/implications The COVID-19 pandemic is impacting the automobile sector significantly. This situation has created many opportunities and obstacles, but this paper only considers the automotive semi-conductor shortage situation, which may be resolved in the near future when there are more installed capacities. Therefore, it is unclear whether the proposed responses will result in long-term solutions. Further adjustments may be needed to revisit the TfS framework. The research paper only addresses the automotive side of the current supply crisis, but more sustainability issues may arise in the future, which need to be dealt with separately. Practical implications Research findings may prove particularly interesting to global automotive vehicle manufacturers, suppliers and policy makers who are seeking to understand multitier supply networks to resolve the current challenges associated with the post-COVID-19 pandemic situation. Originality/value In addition to contributing to developing competency requirements, this study enhances the evolving research stream of MTSSCM by linking it to wider research applications of intervention-based research coupled with design science.

Effect of lean implementation on team psychological safety and learning

Abstract: PurposeFrontline teams are at the centre of lean transformations, but the teams also transform as they implement lean. This study examines these changes and seeks to understand how lean relates to team psychological safety and learning.Design/methodology/approachThis research setting is the Romanian division of a leading European energy company. The authors collected team-level audit and survey data, which the authors used to test the effect of lean implementation on team psychological safety and learning. The authors’ team-level data are complemented with qualitative interviews conducted with team members and headquarters leaders.FindingsThe results of the regression analyses show that leanness is positively associated with team psychological safety, which is in turn positively associated with learning. Thus, this research provides evidence that leanness – mediated by team psychological safety – increases team learning.Practical implicationsLean changes team dynamics and learning positively by ensuring and promoting an emotionally sound work environment with clear team structures, an appropriate level of autonomy, and strong leadership.Originality/valueThis paper contributes evidence of important psychological mechanisms that characterise team-level lean implementation. Particularly, the authors highlight how team psychological safety mediates the relationship between leanness and team learning.

Towards social network metrics for supply network circularity

Abstract: PurposeDespite the systemic nature of circular economy (CE), theorisation that draws from a supply network perspective is only incipient. Moreover, the operations and supply chain management (OSCM) field has engaged in little dialogue with circularity. This study explores social network analysis (SNA) to depict how the shift from linear to circular not only leads to higher rates of resource economy, repair and recycle but also reshapes governance dynamics and network structure of supply networks.Design/methodology/approachThe study departs from a systematic review of the literature and draws from core concepts in OSCM, CE and SNA to offer theoretical propositions that articulate how social network metrics can depict supply network circularity. The framework is illustrated with examples from fashion and electronics industries.FindingsFour theoretical propositions enlighten how betweenness centrality, eigenvector centrality and network density can explain the shift from linear to circular supply networks across the three CE strategies of narrowing, slowing and closing.Originality/valueThe combination of biomimicry, CE, the push–pull dichotomy and social network metrics offer a theory-driven framework for supply network circularity.