Showing papers in "Journal of Supply Chain Management in 2008"
TL;DR: In this article, the authors examine outsourcing from the transaction cost economics (TCE) perspective, where the transaction is made the basic unit of analysis and the procurement decision, as between make and buy, is made (principally) with reference to a transaction cost economizing purpose.
Abstract: This article examines outsourcing from the transaction cost economics (TCE) perspective. The transaction is made the basic unit of analysis and the procurement decision, as between make and buy, is made (principally) with reference to a transaction cost economizing purpose. As sketched herein, the ease of contracting varies with the attributes of the transaction, with special emphasis on whether preserving continuity between a particular buyer–seller pair is the source of added value. The basic regularity is this: as bilateral dependency builds up, the efficient governance of contractual relations progressively moves from simple market exchange to hybrid contracting (with credibility supports) to hierarchy. This last corresponds to the “make” decision, which, as viewed from the TCE perspective, is viewed as the organization form of last resort. The article successively describes the lens of contract approach to economic organization, the operationalization of TCE, different styles of outsourcing, qualifications to the foregoing and the main lessons of TCE for the supply chain literature.
918 citations
TL;DR: In this paper, the authors developed a conceptual framework called the "six Ts" of supply chain quality management, which are relevant for any product but are especially critical to the preservation of public welfare through a safe food supply.
Abstract: The March 2007 pet food recall and a rapid progression of comparable incidents have exposed the real potential for food supply chain contamination and disruptions. When organizations source via multilayered supply chains with poor visibility they are particularly vulnerable. In this paper, we develop a conceptual framework called the “Six Ts” of supply chain quality management — traceability, transparency, testability, time, trust and training — which are relevant for any product but are especially critical to the preservation of public welfare through a safe food supply. We describe the globalization of food supply chains and present data on the trends of U.S. food import volumes, both in aggregate and specifically from China. We also highlight the inherent difficulties and risks posed by global food supply chains, using those originating in China as an example. Finally, we provide a research agenda and questions to be addressed regarding the application of the six Ts in global food supply chain management.
474 citations
TL;DR: In this paper, a content analysis was conducted on 405 articles, focusing on the categories covered within the SCM literature, various levels of the chain examined and sample populations and industries studied, as well as the research methods employed.
Abstract: This study covers a decade of academic research in the Supply Chain Management (SCM) field, offering an in-depth analytical review focused on the existing trends and gaps in the supply chain literature. Nine academic journals were investigated and a subject categorization is developed for SCM research. A content analysis was then conducted on 405 articles, focusing on the categories covered within the SCM literature, various levels of the chain examined and sample populations and industries studied, as well as the research methods employed. Finally, a conceptual framework of the most highly researched categories in SCM indicates that there is a need for more research that seeks to understand the nature of multiple links in SCM chains and networks, as opposed to focusing on dyadic and inter-firm relationships.
298 citations
TL;DR: The focus of academic researchers on types of value being extracted from buyer-supplier relationships changed between 1986 and 2005, as did their interest in the buyer mechanisms implemented to create value in these relationships as discussed by the authors.
Abstract: This paper reviews studies of buyer–supplier relationships published in four prominent U.S.-based academic journals between 1986 and 2005. Our review revealed that the focus of academic researchers on types of value being extracted from buyer–supplier relationships changed between 1986 and 2005, as did their interest in the buyer mechanisms implemented to create value in these relationships. Although emphasis has changed over time, we found that scholars have primarily investigated four types of value derived from buyer–suppler relationships: operational performance improvements, integration-based improvements, supplier capability-based improvements and financial performance outcomes. The review also noted that researchers considered more buyer–supplier mutual efforts since 1996 than the earlier decade, but the number of studies investigating buyer practices has declined as a percentage of total publications. We conclude with a discussion of the review's implications for future research and practice.
294 citations
TL;DR: The concept of structural embeddedness as discussed by the authors refers to the importance of framing suppliers as being embedded in larger supply networks rather than in isolation, which helps buying companies create more realistic policies and strategies when managing their suppliers.
Abstract: The concept of structural embeddedness refers to the importance of framing suppliers as being embedded in larger supply networks rather than in isolation. Such framing helps buying companies create more realistic policies and strategies when managing their suppliers. Simply put, the performance of a supplier is dependent on its own supply networks. By adopting the concept of structural embeddedness, we learn that a buying company needs to look at a supplier's extended supply network to arrive at a more complete evaluation of that supplier's performance. By doing so, a buying company may do a better job of selecting suppliers for long-term relationships and may also find value in maintaining relationships with poorly performing suppliers who may potentially act as a conduit to other companies with technological and innovative resources.
291 citations
TL;DR: In this article, Wang et al. developed and tested a research model to investigate the role of information technology (IT) capability of third-party logistics (3PL) providers and how IT capability affects their competitive advantage.
Abstract: Third-party logistics (3PL) providers have become important players in global supply chain management as increasing numbers of firms are outsourcing their logistics activities. However, the role of the information technology (IT) capability of these 3PL providers has not drawn much research attention. The way in which 3PL providers develop IT capability and how IT capability affects their competitive advantage deserve further investigation. This study has developed and tested a research model to address these issues. By integrating the concept of technology orientation from the strategic orientation literature into the resource-based theory, we investigate both the antecedents and the consequences of IT capability among 3PL providers. The model was tested using survey data collected from 105 3PL firms in China. The results show that technology orientation has a significant impact on resource commitment to IT and managerial involvement in developing IT capability of 3PL firms. It also indicates that IT capability significantly affects three important dimensions of the competitive advantage of these firms, namely, reducing costs, providing innovative and customized services, and improving service quality. This study is one of the first to adopt the resource-based perspective to investigate IT capability issues in the 3PL industry. It provides valuable insights for 3PL managers, and emphasizes the importance of technology orientation in the development of strong IT capability among 3PL firms.
254 citations
TL;DR: In this article, the authors discuss the characteristics of what has come to be labeled "the resource-advantage research tradition" and offer it as an appropriate grounding for purchasing strategy, in particular, and supply chain management, in general.
Abstract: A key issue for strategic supply chain management research is whether purchasing can be a source of long-term competitive advantage. Recent resource-based works in strategic management suggest that purchasing cannot be a source of long-term competitive advantage. In contrast, recent works in supply chain management suggest that purchasing can be such a source. This article explains why works in strategic management and supply chain management come to such radically different conclusions on purchasing strategy. Specifically, this article points out that the negative conclusion concerning purchasing strategy is derived from theories of competition based on the neoclassical, equilibrium economics research tradition. Therefore, the positive case for strategic purchasing needs to be grounded in a research tradition that provides a clean break from the neoclassical, equilibrium economics research tradition. The authors discuss the characteristics of what has come to be labeled “the resource-advantage research tradition” and offer it as an appropriate grounding for purchasing strategy, in particular, and supply chain management, in general.
211 citations
TL;DR: In this paper, the authors build and test an empirical model to examine how buyer firms respond to dependency on a supplier by undertaking either socialization processes or closer integration in order to achieve relational capital.
Abstract: Effective supply chain configurations are increasingly cited as a key driver of value creation. However, many supplier relationships are characterized by differing levels of dependence between the parties, which has the potential to influence the outcomes achieved. We build and test an empirical model to examine how buyer firms respond to dependency on a supplier by undertaking either socialization processes or closer integration in order to achieve relational capital. Using empirical data collected from 111 UK purchasing executives, a structural equation model is used to test the theoretical framework. The results provide support for four of the five hypotheses developed. Buyer firms facing high supplier dependency are found to undertake socialization processes to mitigate the dependency and generate relational capital. However, buyer dependency did not, in isolation, lead to increased levels of supplier integration. The study extends our understanding of how firms deal with asymmetric power within their supplier relationships and suggests important implications for both research and practice.
164 citations
TL;DR: In this paper, the authors use organizational learning theory to develop a conceptual model of learning factors that act as contingencies and magnify the effect of supplier innovativeness on the manufacturer's performance.
Abstract: Manufacturers increasingly rely on innovation from their suppliers to improve the cost, quality, and timeliness of their products. Manufacturing capabilities are enhanced by supplier innovativeness directly, because of the embedded nature of the supplied component, and indirectly, as the manufacturer learns from its suppliers. We use organizational learning theory to develop a conceptual model of learning factors that act as contingencies and magnify the effect of supplier innovativeness. First, we argue that a manufacturer's absorptive capacity, its ability to learn and use external knowledge, positively moderates the impact of supplier innovativeness on the manufacturer's performance. Second, we examine how different combinations of manufacturer–supplier learning styles lead to relatively more or less interorganizational learning, contingent upon whether the outsourcing is design versus manufacturing oriented. Our model can help managers consider knowledge transfer as part of their supplier selection criteria.
162 citations
TL;DR: In this paper, the authors investigated the alignment-performance link in purchasing and supply management in a comprehensive manner, and suggested that the relative fit between business strategy and purchasing strategy, labeled as strategic alignment, and between purchasing strategies and purchasing practices, referred to as purchasing efficacy, is key to achieving superior financial performance.
Abstract: Purchasing and supply management (PSM) has become a discipline of major strategic importance for effectively competing in today's global marketplace. Literature recognizes that the full value-creation potential of the purchasing function can only be realized if its decisions and activities are aligned with the organization's overall strategic orientation. Despite general agreement on this matter, research and practice lacks knowledge on how exactly such an alignment can be achieved and what performance implications it has. Therefore, this article empirically investigates the alignment-performance link in PSM in a comprehensive manner. Drawing on the theory of production competence, we suggest that the relative fit between business strategy and purchasing strategy, labeled as strategic alignment, and between purchasing strategy and purchasing practices, referred to as purchasing efficacy, is key to achieving superior financial performance. Results from profile deviation analysis on data collected globally from 141 strategic business units (SBUs) with revenues greater than US$3 billion support our hypotheses. Findings provide clear guidance to managers on how to design their purchasing strategies and practices to achieve maximum alignment and thus to effectively contribute to the SBU's financial success.
151 citations
TL;DR: In this paper, the authors draw upon transaction cost economics and resource dependence theory to develop a model that depicts the key factors that determine cooperative norms and reveal that cooperative norms positively influence suppliers' performance, which subsequently affects buyers' satisfaction.
Abstract: Cooperative norms are a critical governance mechanism of the buyer-supplier relationship. Prior studies generally assume that cooperative norms are pre-existing and utilize norms as an antecedent to other constructs. Little attention has been paid to the antecedents of the decision to develop cooperative norms. In this paper, we draw upon transaction cost economics and resource dependence theory to develop a model that depicts the key factors that determine cooperative norms. Based on the results derived from an empirical study of 278 Chinese companies, we find that these factors significantly impact cooperative norms. The study also reveals that cooperative norms positively influence suppliers' performance, which subsequently affects buyers' satisfaction.
TL;DR: In this article, the authors explore how contingency factors affect the timing and level of supplier integration into new product development, and how varying levels of integration affect project performance, using structural equation modeling to analyze data on 116 NPD projects employing supplier integration sampled from international organizations representing a wide variety of industries.
Abstract: While research on internal integration in new product development (NPD) has progressed to the examination of contingency factors that assess adequate levels of integration, contingency models examining the appropriate timing and level of integration with suppliers in NPD have yet to be empirically tested. The purpose of this study is to explore how contingency factors affect the timing and level of supplier integration into NPD, and how varying levels of integration affect project performance. The study uses structural equation modeling to analyze data on 116 NPD projects employing supplier integration sampled from international organizations representing a wide variety of industries. Results suggest that newer products signify the need for earlier supplier integration, while positive prior experience with the supplier and the procurement of highly strategic items indicate the need for tighter integration. When employed, these patterns of activity result in high levels of perceived NPD performance.
TL;DR: In this paper, the authors present a set of guidelines to assist empirical researchers to assure that their studies fulfill the requirements of good theory based upon traditional scientific theory building, so that researchers will develop studies that will have a lasting impact on their academic field.
Abstract: Business academics have focused their attention on empirical investigation of programs' effect on organizational competitive performance. These studies primarily emphasize theory building. With the many definitions of theory, academics are not certain whether their research papers meet the specific requirements for theory development required by the academic field of the philosophy of science. Certainly, supply chain academics generally believe that their academic articles fulfill the requirements of theory building. Although many of these articles do have elements of theory, more focus is needed on the specific requirements of theory to assure that academic research is “good” theory building. The primary purpose of this research paper is to logically develop a set of guidelines to assist empirical researchers to assure that their studies fulfill the requirements of good theory based upon traditional scientific theory building. By fulfilling the requirements of good theory, researchers will develop studies that will have a lasting impact on their academic field. To achieve a lasting impact on an academic field, it is necessary to follow a logical plan. This article provides a plan for logical guidelines for developing an understanding of how and why “good” theory building is achieved. This article logically develops a formal conceptual definition of theory along with its related properties to understand these guidelines. Next, it analyzes the requirements of theory, “good” theory, and their properties. These guidelines are included in the existing philosophy of science publications. However, this article consolidates these sources and logically explains why these guidelines are needed. In the conclusion, the guidelines are summarized to serve as a summary checklist for supply chain researchers to use for ensuring their articles will be recognized as a contribution to the academic field. So in that sense, this article does not develop a revolutionary new insight into theory-building empirical articles, but rather integrates diverse traditional philosophy of science requirements into a much simpler set of guidelines. Through logical development of these guidelines, researchers will understand the structure of theory and how to ensure their studies can be modified to have a lasting impact on the field of supply chain management.
TL;DR: In this article, the authors investigated whether trust can form at the price determination stage of the supplier selection process and examined two factors that may affect trust formation: the communication channel employed by the buyer and the amount of complexity involved in the purchase.
Abstract: This study investigates business-to-business interpersonal trust formation (trust that develops between boundary spanning individuals from different organizations) during the price determination stage of the supplier selection process. We first investigate whether trust can form at this stage. Then we examine two factors that may affect trust formation: the communication channel employed by the buyer and the amount of complexity involved in the purchase. Hypotheses are tested with a behavioral experiment (N=117) comparing three communication media (face-to-face, email, and Internet reverse auctions) and two levels of procurement complexity. Results show that trust formation does occur at the price determination stage; however, the degree to which trust grows depends on the communication channel employed and on the level of procurement complexity. Our study enhances managerial understanding of the possibility of developing (or eroding) trust early in the buyer-seller relationship, and it sheds light on the appropriateness of various supplier selection tools under various conditions. In addition, this research contributes to the supply chain management field by complementing the existing trust literature which typically focuses on interorganizational trust that is formed or eroded later in the supply relationship.
TL;DR: In this paper, the authors review the evolution of the supply management function from the 18th century to 1940, and examine the continued evolution of supply management from 1940 until the present.
Abstract: This is the first of a two-part paper, which reviews the evolution of the supply management function from the 18th century to 1940. A second paper will examine the continued evolution of supply management from 1940 until the present. The 1830–1940 period in North America was one of tremendous development for purchasing. It started with occasional reference in management texts and, particularly after 1900, saw the evolution of a host of ideas representing the foundation of today's perspective on supply management. At no time did purchasing practitioners and academics see the function as a narrow buying activity. Clearly, our predecessors were well aware of the benefits of integration and would have been comfortable with today's supply chain management precepts. They also recognized value, cost and price analysis, value analysis, purchasing research, talent management, outsourcing the supply function, supplier relationships, strategy and the need for performance measurement. They strived to contribute effectively to organizational goals and strategies, well aware of the potential impact of their actions on organizational success. An understanding of supply's evolution may not only assist today's supply management practitioners and academics in placing current practices and theories in context but also in charting our future.
TL;DR: In this paper, the authors examine the relationship between TQM orientation and the adoption of eight supplier-facing e-commerce applications and propose that certain supplierfacing ecommerce applications enhance competition among suppliers, while others enhance supplier relationships.
Abstract: Total Quality Management (TQM) is widely adopted in industry and well studied in academe. It includes a philosophy and set of practices for supply management. However, these elements evolved before widespread adoption of the Internet, which transforms the supply management landscape by presenting various tools for organizations to select and manage suppliers. Therefore an important research undertaking today is to understand how the Internet has affected manufacturers that embrace TQM. As part of this undertaking, we examine the relationship between TQM orientation and the adoption of eight supplier-facing e-commerce applications. We propose that certain supplier-facing e-commerce applications enhance competition among suppliers, while others enhance supplier relationships. Drawing upon strategic contingency theory, we hypothesize that TQM orientation is negatively associated with the adoption of the first category of application and is positively associated with the adoption of the second category. Logistic regression was used to test hypotheses using survey data collected from manufacturers located in six countries and three industries. The results show that organizations which have heavily embraced TQM do use e-commerce somewhat differently from other organizations. However, the results also point out potentially troubling inconsistencies between e-commerce adoption and other elements of strategy.
TL;DR: In this paper, the authors discuss the different ways economics can influence a business school discipline, followed by perspectives on the field of supply chain management, and conclude that economics is a powerful discipline with the potential for rich contributions to the younger, newer business school disciplines.
Abstract: Economics is a powerful discipline, with the potential for rich contributions to the younger, newer business school disciplines. This article first discusses the different ways economics can influence a business school discipline, followed by perspectives on the field of supply chain management. The core sections of the paper are, first, the influence of economics on supply chain management through empirical methods, and second, the influence of economics on supply chain through theories.
TL;DR: In this article, the authors examined 26 appointments of the first CPO and corresponding reporting line establishments in large North American and European organizations and found that changes in corporate strategy accounted for nearly 80 percent of the appointments and the CEO had a major say in decisions related to who would be hired as the first chief purchasing officer as well as his or her reporting line.
Abstract: The chief purchasing officer (CPO) plays a critical role in ensuring supply contributes effectively to organizational goals and strategies. The selection of the individual who will become the company's first CPO is especially important. A reporting line establishment occurs at the same time as an appointment of a first CPO when a large organization centralizes a previously decentralized supply function. Using case-based methodology, this research in large North American and European organizations examined 26 appointments of the first CPO and corresponding reporting line establishments. Data collection and analysis covered six aspects: drivers, CPO background, reporting line, the key decision makers and influencers involved in the decision, tenure of the first CPO and tenure of the first reporting line. It was found that changes in corporate strategy accounted for nearly 80 percent of the first CPO appointments and the CEO had a major say in decisions related to who would be hired as the first CPO as well as his or her reporting line. Almost 30 percent of internally recruited CPOs did not have any supply experience. However, externally recruited CPOs always had supply experience, but did not necessarily come from a CPO position. The CPOs reported to a variety of different positions, with the CEO and VP shared services being the most popular. The average tenure for the first CPO was more than one year longer than his or her reporting line. The potential implications for supply executives are explored. Opportunities for future research are also identified.
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