Showing papers on "Value chain published in 2006"

Match your innovation strategy to your innovation ecosystem

Abstract: High-definition televisions should, by now, be a huge success. Philips, Sony, and Thompson invested billions of dollars to develop TV sets with astonishing picture quality. From a technology perspective, they've succeeded: Console manufacturers have been ready for the mass market since the early 1990s. Yet the category has been an unmitigated failure, not because of deficiencies, but because critical complements such as studio production equipment were not developed or adopted in time. Under-performing complements have left console producers in the position of offering a Ferrari in a world without gasoline or highways--an admirable engineering feat, but not one that creates value for customers. The HDTV story exemplifies the promise and peril of innovation ecosystems--the collaborative arrangements through which firms combine their individual offers into a coherent, customer-facing solution. When they work, innovation ecosystems allow companies to create value that no one firm could have created alone. The benefits of these systems are real. But for many organizations the attempt at ecosystem innovation has been a costly failure. This is because, along with new opportunities, innovation ecosystems also present a new set of risks that can brutally derail a firm's best efforts. Innovation ecosystems are characterized by three fundamental types of risk: initiative risks--the familiar uncertainties of managing a project; interdependence risks--the uncertainties of coordinating with complementary innovators; and integration risks--the uncertainties presented by the adoption process across the value chain. Firms that assess ecosystem risks holistically and systematically will be able to establish more realistic expectations, develop a more refined set of environmental contingencies, and arrive at a more robust innovation strategy. Collectively, these actions will lead to more effective implementation and more profitable innovation.

Benefiting from Innovation: Value Creation, Value Appropriation and the Role of Industry Architectures

Abstract: Extending Teece's landmark 1986 article, we consider how innovators benefit from value appropriation and creation. We elaborate on value appropriation, first by pointing out the importance of "industry architectures", i.e. sector-wide templates that circumscribe the division of labor; and second, by treating complementarity and factor mobility as distinctive components of cospecialization. This allows us to qualify Teece's prediction, by positing that firms can create an "architectural advantage" in terms of high levels of value appropriation without the need to engage in vertical integration. Such architectural advantage comes about when firms can enhance both complementarity and mobility in parts of the value chain where they are not active. We then elaborate on value creation by indicating how actors can benefit from investing in assets that appreciate because of innovation, which suggests that firms can benefit from encouraging imitation while investing in complementary assets. We also consider how investment in complementary assets changes the scope of the firm and thereby the development of capabilities that support future innovation. Finally, we provide an integrative guide that explains how firms should manage their position along the value chain to capture returns from innovation, thus extending and qualifying Teece's (1986) original predictions and prescriptions.

The Motion Picture Industry: Critical Issues in Practice, Current Research, and New Research Directions

Abstract: The motion picture industry has provided a fruitful research domain for scholars in marketing and other disciplines. The industry has high economic importance and is appealing to researchers because it offers both rich data that cover the entire product lifecycle for many new products and because it provides many unsolved “puzzles.” Although the amount of scholarly research in this area is rapidly growing, its impact on practice has not been as significant as in other industries (e.g., consumer packaged goods). In this article, we discuss critical practical issues for the motion picture industry, review existing knowledge on those issues, and outline promising research directions. Our review is organized around the three key stages in the value chain for theatrical motion pictures: production, distribution, and exhibition. Focusing on what we believe are critical managerial issues, we propose various conjectures---framed either as research challenges or specific research hypotheses---related to each stage in the value chain and often involved in understanding consumer movie-going behavior.

Relational Antecedents of Information Flow Integration for Supply Chain Coordination

Abstract: A new model of competition, where competition is among supply chain networks rather than individual firms, is transforming traditional market-based buyer-supplier relations to one of competition among cooperative sets. In order to integrate and realize performance gains from participating in cooperative supply networks, the importance of information sharing across the supply chain has been emphasized in different literature streams. In this study, we examine the relational antecedents of this critical aspect of supply chain integration-that is, information flow integration. Our objective is to investigate the relationship between relational orientation of the focal firm, as characterized by (1) long-term orientation of its supply chain relationships, (2) asset specificity, and (3) interaction routines and the information flow integration between a firm and its supply chain partners. A research model was developed and data were collected from 110 supply chain and logistics managers in manufacturing and retail organizations. Our results suggest that tangible and intangible resources invested in supply chain relationships enable the integration of information flows with supply chain partners. Specifically, formal and informal interaction routines that take time and effort to develop enable integration of informational flows across a firm's supply chain. Investments in relation-specific assets and long-term orientation in relationships enable the development of these interaction routines.

Designing the Boundaries of the Firm: From Make, Buy, or Ally to the Dynamic Benefits of Vertical Architecture

Abstract: The concept of vertical architecture defines the scope of a firm and the extent to which it is open to final and intermediate markets; it describes the configurations of transactional choices along a firms value chain. A firm can make or buy inputs, and transfer outputs downstream or sell them. Permeable vertical architectures are partly integrated and partly open to the markets along a firms value chain. Increased permeability enables more effective use of resources and capacities, better matching of capabilities with market needs, and benchmarking to improve efficiency. Partial integration promotes a more dynamic, open innovation platform and enhances strategic capabilities by linking key parts of the value chain. This permeable vertical architecture, accompanied by appropriate transfer prices and incentive design, facilitates resource allocation and guides a firms growth process. Our longitudinal study of a major European manufacturer suggests that to understand how firm boundaries are set and what their impacts are, we need to complement the microanalytic focus on transactions with a systemic analysis at the level of the firm. It also shows how, over and above transactional alignment, decisions about boundaries and vertical architectures can transform a firms strategic and productive capabilities and prospects.

Greening the Supply Chain

Abstract: Part 1 - Conceptual Overviews and Frameworks: Framework for Strategic Environmental Sourcing.- Effects of Green Purchasing Strategies on Supplier Behavior.- New Paths to Business Value: Linking Environment, Health and Safety Performance to Strategic Sourcing.- Integrating Quality, Environmental, and Supply Chain Management Systems into the Learning Organization.- Network Dynamics of an Energy Supply Chain.- Strategic Business Operations, Freight Transport and Eco-efficiency: A Conceptual Model.- Reverse Logistics for Recycling: Challenges Facing the Carpet Industry.- Part 2 - Empirical Studies: Customer and Supplier Relations for Environmental Performance.- Horses for Courses: Explaining the Gap Between the Theory and Practice of Green Supply.- Green Purchasing in Chinese Large and Medium-sized State-owned Enterprises.- Greening of Suppliers/In-bound Logistics - In the South East Asian Context.- Environmental initiatives in the manufacturing supply chain: A story of light-green supply.- Part 3 - Case Studies: Environmental Supply Chain Innovation.- Greening Supply Chains: A Competence-Based Perspective.- A Total Product System Concept: A Case Study of the smart(TM) Automobile.- Environmental Management in Automotive Supply Chains: An Empirical Analysis.- Green Supply Chain Management at Advanced Micro Devices.- Part 4- Tools and Technology for Aiding Green Supply Chain Management: Environmental Quality in the Supply Chain of an Original Equipment Manufacturer: What does it mean?.- Creating a Green Supply Chain.- Computer Aided Resource Efficiency.- E-commerce Solutions to Environmental Purchasing.

Sustainable competitiveness in global value chains: how do small Danish firms behave?

Abstract: Purpose – Small and medium‐sized enterprises (SMEs) have increasingly become integrated into global value chains, where they face social and environmental requirements from multinational buyers. The purpose of this paper is to examine the role of SMEs with respect to sustainable supply chain management in global value chains.Design/methodology/approach – Drawing from a survey of sustainable supply chain management practices among 300 Danish SMEs, the paper discusses the concept of governance in global value chains. The paper addresses two questions: first, to what extent are SMEs affected by social and environmental requirements from buyers? Second, to what extent do SMEs apply such requirements to their own suppliers?Findings – The paper concludes that SMEs face requirements from their buyers much more frequently than they apply such requirements to their own suppliers. Also many buyer requirements in the value chain seem to be latent in that they are neither contractual nor subject to verification. The ...

An investigation of supply chain performance measurement in the Indian automotive sector

Abstract: Purpose – The purpose of this paper is to investigate the relevance of the concept of supply chain performance in developing countries. The research also attempts to identify performance measure sets for supply chain performance in the context of a developing nation.Design/methodology/approach – The research focuses on supply chain practices in the Indian automobile sector. It identifies and discusses the main motives and determinants for the adoption and implementation of supply chain management concepts. It reviews the relevance of the main models to measure the performance of supply chain in developing countries. The research is based on a combination of qualitative and quantitative methods. Primary data were collected through semi‐structured interviews and an exploratory survey. Performance measure sets were identified through factor analysis.Findings – This research proposes that the concept of supply chain performance is not fully embraced by the Indian automobile sector and highlights the difficult...

Managing supply chains for competitiveness: the Indian scenario

Abstract: Purpose – The paper aims to analyse research conducted for assessing the current state of supply chain management practices followed by Indian organisations and identifying important areas that need to be addressed in order to increase their competitivenessDesign/methodology/approach – The paper begins by proposing a framework for evaluating the supply chain strategy of an organisation along the three key dimensions – supply chain objectives, supply chain processes, and management focus on supply chain activities Data collected through survey questionnaire for the three dimensions have been used to assess the alignment of supply chain strategy with the overall business strategy through statistical analysisFindings – The research findings reveal that most of the Indian organisations have aligned their supply chain objectives with their business objectives They are now on course of aligning their processes and management focus Enhanced level of competitiveness would require Indian organisations to mana

Strategic considerations in the development of lean agri‐food supply chains: a case study of the UK pork sector

Abstract: Purpose – To show how value chain analysis techniques have highlighted opportunities for strategic change in a UK agri‐food supply chain and to present an initial model of an integrated supply chain based on the application of lean principles.Design/methodology/approach – The paper reports on action research carried in two red meat industry supply chains, each of which spanned the whole chain from farm to consumer. Both of these case studies involved teams of managers from the companies in the chains together with facilitation by the researcher.Findings – The paper builds on existing theoretical work to show that value chain analysis methods combined with lean principles can provide a powerful framework for the analysis and improvement of supply chain activity.Research limitations/implications – The research is based on case studies of only two supply chains both of which were related to pork products. It would be beneficial if further studies could be undertaken of other agri‐food chains in meat and in o...

Risk Management in Sustainable Supply Chain Management (SSCM): Lessons Learnt from the Case of GMO-Free Soybeans

Abstract: A well designed risk-oriented supply chain management can put companies in a privileged position to deliver sustainable and reliable long-term benefits to all stakeholders in the value chain. The case of GMO-free soybean supply illustrates the various aspects of risk prevention that can lead to a systematic model of sustainable supply chain management. The article illustrates how – after consumers pressed the food industry to exclude GMO soybeans from their products – a sustainable soybean supply chain was established. Approaching the issue on a pragmatic basis, several tools have proved to be useful in constructing the supply chain. The authors show what the crucial points of sustainable supply chain management are. They point out the great contribution of standards and platforms such as BSCI, ETI, SA8000 and Fairtrade labelling, whereas process models such as AA1000 provide useful guidance on immunization against potential stakeholder risks. Finally, the article shows how a systematic approach can help companies to establish their tailored sustainable supply chain management. Copyright © 2005 John Wiley & Sons, Ltd and ERP Environment.

Performance measurement in tourism: a value chain model

Abstract: Purpose – The tourism industry consists of various players and tourism demand is met by the joint efforts of these players. However, it seems that there is no attempt in the tourism management literature proposing frameworks or models, which can assist the tourism companies, evaluate and control the overall tourism value chain. This paper attempts to show the usability of value chain concept in the tourism industry to manage and measure the value chain processes.Design/methodology/approach – A tourism value chain model with four stages; win order, pre‐delivery support, delivery, and post‐delivery support, is developed. A value chain performance measurement model for the tourism industry is suggested according to the value chain model developed.Findings – There is an opportunity to study the tourism industry as a value chain and to develop a value chain oriented performance management and measurement framework that would allow various players to communicate and coordinate their processes and activities in ...

Global value chains in the agrifood sector

Abstract: This paper discusses agriculture and poverty reduction in the context of globalisation. Taking the global value chain perspective (GVC), it analyses the trends in agribusiness and their consequences for strategies to eradicate poverty through increasing export growth. The paper looks at inter-firm linkages in global agribusiness, thereby placing agricultural production and processing in developing countries in the context of broader agribusiness and agrifood systems. The paper focuses on two issues, the first being the importance of standards, which, by definition, operate at multiple points along the GVC and are created, adopted, applied and verified by different actors. They impact in two particularly direct ways: the extent and codification of information required to sustain transactions their impact on supplier competence. The second issue is the importance of increasing concentration, relating to input supplier concentration; production concentration; processing; and consumer outlet concentration. In terms of the value chain, concentration matters for two reasons: concentration at one point of a value chain, often leads to concentration at other levels concentration at particular points in the value chain creates oligopolies and inequalities in market power. A value-chain analysis of the impacts of global concentration and the evolving global-standards environment highlights a number of challenges and opportunities for multiple actors involved in value-chain development. These challenges raise a number of policy issues for developing country governments and other agencies concerned with export agribusiness, which have been grouped in three broad areas: ensuring the continued access of agribusiness producers to global markets and supporting the competitiveness of the sector increasing revenues from agribusiness, particularly through adding value to exports enhancing the poverty alleviation impact of export agribusiness.

Value Chains Versus Supply Chains

Abstract: The concept of a Value Chain has existed for twenty years but we find it still is an unclear concept. It has been suggested that the third generation supply chain is based on customer intimacy and is fully synchronized. In this paper, the authors discuss the need to relate the concepts of the value chain and the supply chain in a more comprehensive and integrative manner. We begin with a discussion of value and the development of the concept of value chain. We then discuss similarities and differences of the value chain and the supply chain, and conclude with suggestions regarding the need for synchronizing value and supply chains to optimize business performance.

Performance measurement in the value chain: manufacturing v. tourism

Abstract: Purpose – This is a conceptual paper. Its purpose is to compare the performance measurement of manufacturing and tourism industries from a value chain perspective.Design/methodology/approach – The paper achieves its objective by reviewing the relevant literature from both manufacturing and tourism fields. It compares and contrasts the particular characteristics of both industries as well as the work done in these fields with respect to performance measurement and management in their value chains.Findings – The paper finds that in the manufacturing industry the latest thinking in supply chain management, and consequently value chain management, has led to the development of performance measurement frameworks for the entire supply chain – such as the SCOR model. The tourism industry, on the other hand, consists of various players and tourism demand is met by the joint efforts of these players. Consequently, the interdependency of tourism organizations is high. Although recent works demonstrate an increasing...

Clusters and supply chain management: the Amish experience

Abstract: Purpose – To demonstrate the linkage between Porter's cluster theory and supply chain management, and provide evidence of their potential joint positive impact on competitiveness and firm performance.Design/methodology/approach – The paper examines the linkage between cluster theory and supply chain management using data from a case study of the Amish furniture industry in Homes County, Ohio, USA.Findings – Using the Amish furniture industry and a representative furniture firm as examples, the paper shows the positive impact of operating within an integrated supply chain in a geographically concentrated cluster.Research limitations/implications – Use of a single case study approach limits the generalizability of the findings; the paper recommends further study of linkages in other industries and locations.Practical implications – The study suggests that firms build competitive advantage by initially focusing primarily on local resources when selecting supply chain partners, rather than looking only for lo...

Spanning flexibility: supply chain information dissemination drives strategy development and customer satisfaction

Abstract: Purpose – To respond to an increasingly uncertain environment, firms are seeking to enhance flexibility across the value chain. Spanning flexibility, a critical dimension of value chain flexibility, is the ability of a firm to provide horizontal information connections across the value chain to meet a variety of customer needs. This research organizes literature on spanning flexibility and classifies it according to competence and capability theory.Design/methodology/approach – The study collected data from 273 manufacturing executives related to spanning flexibility. The instruments used to collect these data have been validated via literature review and structured interviews with executives. Structural equation modeling was applied to these data to test relationships among the variables in the study.Findings – This study develops valid and reliable instruments to measure the sub‐dimensions of spanning flexibility. The results indicate strong, positive, and direct relationships between flexible spanning ...

Managing Costs and Cost Structure throughout the Value Chain: Research on Strategic Cost Management

Abstract: Strategic cost management is deliberate decision making aimed at aligning the firm's cost structure with its strategy and optimizing the enactment of the strategy. Alignment and optimization must comprehend the full value chain and all stakeholders to ensure long-run sustainable profits for the firm. Strategic cost management takes two forms: structural cost management, which employs tools of organizational design, product design, and process design to build a cost structure that is coherent with strategy; and executional cost management, which employs various measurement and analysis tools (e.g., variance analysis and analysis of cost drivers) to evaluate cost performance. In this chapter, I develop a model that relates strategic cost management to strategy development and performance evaluation. I argue that although management accounting research has advanced our understanding of executional cost management, other management fields have done more to advance our understanding of structural cost management. I review research in a variety of management fields to illustrate this point. I conclude by proposing that management accounting researchers are uniquely qualified to create a body of strategic cost management knowledge that unifies structural and executional cost management.

Value chain analysis in consumer focus improvement: A case study of the UK red meat industry

Abstract: Purpose – A key vision of tomorrow's industry is creating supply chains which collaboratively strive on enhancing the value to the end-consumer. The purpose of this paper is to introduce the food value chain analysis (FVCA) methodology for improving consumer focus in the agri-food sector based on the lean paradigm, value stream mapping and value chain analysis (Porter, 1985). Design/methodology/approach – This contribution presents a case-study of a UK red meat supply chain explaining how the FVCA method enabled a team of researchers and practitioners to identify the misalignments of both product attributes and supply chain activities with the consumer needs. Findings – This paper explains how the FVCA methodology potentially realigned the processes along the supply chain with the true consumer requirements and why the supply chain effectiveness was improved; this follows with a description of the subsequent efficiency gains from application of the FVCA methodology. Originality/value – This paper further defines the demarcation between supply chain “effectiveness” and “efficiency”. This paper contributes to the debate on the importance of supply chain effectiveness by linking to consumer value at every stage of the supply chain.

From tinkering around the edge to enhancing revenue growth: supply chain‐new product development

Abstract: Purpose – To expand beyond existing research on the integration of supply chain and new product development that has a limited focused on the need to pre-inform supply chain before product launch, the need for new product development to consider the impact of product design on supply chain operations and research has focused on ensuring product availability at the product launch. Design/methodology/approach – This research note suggests avenues forward and areas for practice and research to progress. Findings – The existing and limited focus on involving supply chain in new product development overlooks several central issues and opportunities that companies are beginning to explore and that can be supported by research. In particular the opportunity to focus on leveraging supply chain in new product development, for greater market impact and revenue growth. Practical implications – Addressing the path forward, beyond limited approaches requires greater alignment between new product development and supply chain, it requires a focus that goes beyond just ensuring product availability and it requires alignment much further upstream in the new product development process. Examples of early progress in companies are provided. Originality/value – In addition to summarizing existing research, new avenues for research and practice are offered that can tremendously improve alignment and the contribution of supply chain on new product development, for the good of the company as a whole. Specific research areas are suggest to enable research to support the realization of the path forward in this area.