Showing papers on "Value chain published in 2007"
TL;DR: The increasing adoption of more open approaches to innovation fits uneasily with current theories of business strategy Traditional business strategy has guided firms to develop defensible positions against the forces of competition and power in the value chain this paper.
Abstract: The increasing adoption of more open approaches to innovation fits uneasily with current theories of business strategy Traditional business strategy has guided firms to develop defensible positions against the forces of competition and power in the value chain, implying the importance of constructing barriers rather than promoting value creation through openness Recently, however, firms and even whole industries, such as the software industry, are experimenting with novel business models based on harnessing collective creativity through open innovation The apparent success of some of these experiments challenges prevailing views of strategy At the same time, many of these experimenters now are grappling with issues related to value capture and sustainability of their business models, as well as issues of corporate influence and the potential co-option of open initiatives These issues bring us back to traditional business strategy, which can offer important insights To make strategic sense of innovation communities, ecosystems, networks, and their implications for competitive advantage, a new approach to strategy—open strategy—is needed Open strategy balances the tenets of traditional business strategy with the promise of open innovation
1,144 citations
TL;DR: In this paper, the authors describe how key organizational theories help to distinguish traditional supply chains from best value supply chains, and provide a foundation for future research questions that are focused on Best Value Supply Chains.
807 citations
TL;DR: In this paper, the authors discuss four strategies that firms use to balance a climate of trust and power in a strategic supply chain: identifying an authority, generating a common supply chain identity, utilizing boundary spanning ties, and providing procedural and interactive justice.
632 citations
TL;DR: In this article, a comprehensive review of the available literature on supply chain flexibility has been considered, where appropriate, additional insights have been obtained from related streams such as manufacturing flexibility, agility and supply chain responsiveness.
Abstract: Purpose – A growing body of literature has begun to recognise that in the era of supply chain management it is important to look beyond the flexible factory to the flexible supply chain. This paper seeks to further our understanding of supply chain flexibility and provide a comprehensive review of the available literature.Design/methodology/approach – Published literature on supply chain flexibility has been considered. Where appropriate, additional insights have been obtained from related streams such as manufacturing flexibility, agility and supply chain responsiveness.Findings – Much of the existing research has a limited definition of supply chain flexibility and describes flexibility simply as a reactive means to cope with uncertainty. Supply chain flexibility has emerged from the manufacturing flexibility literature and hence to date is largely confined to a manufacturing context (neglecting the role of services). Empirical research often takes the form of a cross‐sectional postal questionnaire cond...
627 citations
TL;DR: In this article, the authors present the relationship between supply chain linkages and supply chain performance (cost-containment and reliability of supply chain partners) in order to identify the characteristics of determinants of linkages in the supply chain stakeholders (suppliers, internal stakeholders and customers).
Abstract: Purpose – The purpose of this paper is to present the relationship between supply chain linkages and supply chain performance (cost‐containment and reliability of supply chain partners).Design/methodology/approach – Multivariate regression models are developed in order to identify the characteristics of determinants of linkages in the supply chain stakeholders (suppliers, internal stakeholders and customers). The survey was administered to individuals identified from a list of US executive officers, directors, presidents, or vice presidents. Among four hundred respondents, 122 were considered as valid from those who practice supply chain management for their business operations.Findings – Internal integration is the most important contributor to cost‐containment while integration with the supplier is the best strategy to achieve supply chain reliable performance. Availability of electronic ordering systems for customers is an important strategy in cost‐containment. Fast and easy ordering is the best strat...
436 citations
TL;DR: This paper goes beyond the dominant firm-level alignment paradigm by utilizing a value disciplines perspective on strategic foci to conceptualize alignment at the process level, and finds a positive link between alignment and perceived IT business value in each of five primary processes in the value chain.
Abstract: Even after a decade of research and discussion, strategic alignment, denoting the fit between information technology (IT) and business strategy, remains an enduring challenge for firms worldwide. In this paper, we go beyond the dominant firm-level alignment paradigm by utilizing a value disciplines perspective on strategic foci to conceptualize alignment at the process level. Theory would then suggest that alignment should be tightest in processes that are considered critical to each firm's strategic focus. Using data from matched surveys of IT and business executives at 241 firms, we detect support for this locus of alignment argument when alignment is identified using profile deviation or moderation. We also find a positive link between alignment and perceived IT business value in each of five primary processes in the value chain. By bringing a process-level view to the study of alignment and its impacts, we go beyond a discussion on the extent of fit-a cornerstone of the literature-to whether firms are pursuing the right type of fit for the particular mix of processes underlying their strategy. In this way, a process-level perspective can foster a deeper and more meaningful understanding of how alignment affects firm performance. Our results also show a need for managers to reconsider the steps taken to align IT and business strategy by looking more closely at how IT can support individual processes rather than at how IT can support an entire strategy.
415 citations
TL;DR: In this article, the authors examined the financial benefits of information technology investments around newly adopted IT-based supply chain management (SCM) systems by 123 manufacturing firms over the period 1994-2000.
383 citations
TL;DR: In this article, a new model for service supply chains is developed and applied to the healthcare industry, and the results of this study are relevant both to practitioners in the services industry and to researchers conducting further studies in the field.
Abstract: Despite the extensive amount of academic work devoted to supply chain management, today the structure of service supply chains still remains unexplored. The aim of this paper is to verify and explain this gap with regard to the unique nature of the services industry and the applicability of existing supply chain management literature to service businesses. This paper develops a new model for service supply chains and applies it to the healthcare industry. The results of this study are relevant both to practitioners in the services industry and to researchers conducting further studies in the field.
350 citations
Book•
01 Jan 2007
TL;DR: In this paper, the authors present the building blocks of supply chain management, including: 1. Supply Chain Management and Competitive Strategy 2. Customer Fulfillment Strategies 3. Process Thinking: SCM's Foundation 4. New Product Development Process: Managing the Idea Infrastructure 5. Scanning and Global Supply Chain Design 6. Supply chain Mapping 7. SupplyChain Rationalization and Role Shifting 8. Cost Management 9. Relationship Management 10. Information Sharing 11. Performance Measurement 14. Collaborative Innovation
Abstract: Part I: The Building Blocks of Supply Chain Management 1. Supply Chain Management and Competitive Strategy 2. Customer Fulfillment Strategies 3. Process Thinking: SCM's Foundation 4. The New Product Development Process: Managing the Idea Infrastructure 5. The Order Fulfillment Process: Managing the Physical Flow Infrastructure Part II: Designing the Supply Chain 6. Scanning and Global Supply Chain Design 7. Supply Chain Mapping 8. Supply Chain Cost Management 9. Core Competencies and Outsourcing 10. Supply Chain Rationalization and Role Shifting Part III: Collaborating Across the Supply Chain 11. Relationship Management 12. Information Sharing 13. Performance Measurement 14. People Management: Bridge or Barrier to SCM 15. Collaborative Innovation
257 citations
TL;DR: In this article, a procurement process in the oil/retail petrol industry is examined in a case study, and the benefits for each company involved in the presented case are substantial and can be estimated through a simulation.
Abstract: Purpose – Business renovation, the effective utilisation of information technology and the role of business process modelling and simulation, are all vital in supply chain integration projects. This paper aims to show through a combination of these methods how the performance of the supply chain can be improved with the renovation and integration of processes at various tiers in the chain and by the sharing of information between companies.Design/methodology/approach – Simulation‐based methodology for measuring the benefits of the creation and renovation of business process models combines the methodology of developing process models and its simulation with the simulation of supply and demand. A procurement process in the oil/retail petrol industry is examined in a case study.Findings – Using the proposed methodology, different business process models can be investigated and simulated. The benefits for each company involved in the presented case are substantial and can be estimated through a simulation. S...
222 citations
TL;DR: In this article, the authors describe how supply chains have evolved over the last three decades, arguing that their organizational history can be divided into three periods: the primary focus was on how to make operations throughout the supply chain more efficient.
TL;DR: In this paper, an empirical survey with data from 128 companies was conducted to test the relationship between product design and supply chain design, with specific reference to the product-supply chain model by Fisher.
Abstract: Purpose – The paper seeks to test the relationships among product design and supply chain design, with specific reference to the product‐supply chain model by Fisher.Design/methodology/approach – An extensive empirical survey with data from 128 companies; the approach is basically theory testing, in that it investigates an existing framework, and discusses extensions.Findings – Significant relationships are found between product types and supply chain types, as well as concerning the impact of alignment on performance.Research limitations/implications – Instead of treating the supply chain characteristics associated with different supply chain types as either/or choices, some companies select properties from both supply chain types in order to gain additional benefits. This creates a supply chain frontier of physical efficiency and market responsiveness; a concept that deserves further attention by researchers. A limitation is that it would be interesting to perform a longitudinal study.Practical implicat...
TL;DR: A novel approach that integrates the analytic hierarchy process (AHP) technique, system dynamics (SD), and discrete-event simulation (DES) to model the service and manufacturing activities of the global supply chain of a multinational construction equipment corporation.
TL;DR: In this paper, a conceptual framework for critical analysis of private standards in agri-food chains is proposed, drawing on an extended form of value chain analysis combined with insights on facets of governance from international relations and political science in order to capture the structural, institutional and normative governance implications of psis.
Abstract: Private standards initiatives (psis) abound in agri-food chains as retailers and brands seek to minimise risks and also respond to new demands from civil society. They represent a new form of regulation, which raises questions regarding governance in the South. Recognising the policy-driven nature of much work to date in this area, I set out a preliminary framework for critical analysis of psis in agri-food chains, focusing on both the vertical and horizontal dimensions of governance. The proposed conceptual framework draws on an extended form of value chain analysis combined with insights on facets of governance from international relations and political science in order to capture the structural, institutional and normative governance implications of psis.
TL;DR: In this article, the authors introduce a complementary index measuring how firms are configuring their value chains, whether they are replicating value chain activities from country to country or locating them in globally specialized units in order to exploit an international division of labor.
Abstract: and Key Results
The IB literature informs us of several ways to measure firms’ degree of globalization. In this paper we make the argument that in fact none of the existing indices really measure firms’ degree of “global specialization”, that is, to what extent their allocation of resources is multidomestic or global.
In order to remedy this we introduce a complementary index measuring how firms are configuring their value chains — whether they are replicating value chain activities from country to country or locating them in globally specialized units in order to exploit an international division of labor. We then test this “global specialization” index empirically on a sample of Danish MNCs.
We find that the index is able to identify a distinct group of firms with significantly higher degrees of global value chain configuration. The firms in this group do not necessarily score high on conventional internationalization measures.
TL;DR: In this article, a case study of the fast moving consumer goods sector is provided which shows how the proposed "Supply Chain Kano-QFD" technique can be deployed to engage the capabilities and enthusiasm of the firms along the chain to enhance the value of the final consumable.
Abstract: Purpose – Supply chain performance is two‐dimensional: efficiency and effectiveness. The purpose of this paper is to further define and explore the demarcation between supply chain effectiveness and supply chain efficiency.Design/methodology/approach – A case‐study research method is adopted in this paper. This contribution discusses an approach for the improvement of supply chain effectiveness, i.e. Supply Chain Kano‐QFD.Findings – A case‐study of the fast moving consumer goods sector is provided which shows how the proposed “Supply Chain Kano‐QFD” technique can be deployed to engage the capabilities and enthusiasm of the firms along the chain to enhance the value of the final consumable.Practical implications – “Supply Chain Kano‐QFD” is an integrative method which helps drive effectiveness by focusing on how the various supply chain members might jointly develop innovative solutions to create unique, individualized sources of consumer value.Originality/value – A review of the existing supply chain lite...
TL;DR: In this paper, a synergy between the approaches of knowledge management in a learning organization and supply chain management is developed so that learning chains can be created in order to unleash innovation and creativity by managing knowledge in supply chains.
Abstract: Purpose – The purpose of this paper is to develop a synergy between the approaches of knowledge management in a learning organisation and supply chain management so that learning chains can be created in order to unleash innovation and creativity by managing knowledge in supply chains.Design/methodology/approach – Through extensive literature review, commonalities between knowledge management and supply chain management were elicited. Knowledge Advantage framework, which was developed as a part of CRC for Construction Innovation Australia, research project “Delivering improved knowledge management and ICT diffusion in Australian construction industry”, has been proposed to extend across the supply chain in order to develop learning chains.Findings – The paper provides a conceptual grounding for future research in the area of knowledge management and supply chain management and suggests that, as unit of competition changes from organisation vs organisation to chain vs chain under supply chain management, l...
TL;DR: In this article, the authors demonstrate the importance of a strategic approach to collaborative innovation and the use of a value chain research methodology for identifying opportunities for co-innovation in the Houston Farms value chain.
Abstract: Purpose – The purpose of this article is to demonstrate the importance of a strategic approach to collaborative innovation and the use of a value chain research methodology for identifying opportunities for co‐innovation.Design/methodology/approach – Value chain analysis is used to map three flows in the Houston Farms value chain; material flow, information flow and relationships. Having diagnosed the current level of co‐innovation we then identify improvement projects and opportunities for co‐innovation to reduce cost and add value, for the benefit of the value chain as a whole.Findings – The application of the value chain analysis methodology to the Houston Farms value chain revealed the importance of strategy and robust processes in key areas for co‐innovation – R&D and new product development. It also revealed that small businesses can enjoy a degree of success as a result of comparative advantage in certain areas but that sustainable competitive advantage cannot occur by chance – identifying the pote...
TL;DR: In this article, the authors consider how a better understanding of entrepreneurial activities can help explain how firm and industry boundaries change over time and how a more comprehensive understanding of boundary setting can explain where entrepreneurial activities are directed.
Abstract: In this paper, we consider how a better understanding of entrepreneurial activities can help explain how firm and industry boundaries change over time and how a more comprehensive understanding of boundary setting can explain where entrepreneurial activities are directed. We start from the premise that while entrepreneurs believe themselves to have superior ideas in one or multiple parts of the value chain, they are characteristically short of cash, and of the ability to convince others to provide it. This premise motivates a simple model in which the entrepreneur has a value-adding set of ideas for ‘upstream’ and ‘downstream’ parts of a value chain, as well as for the ways to make these two parts of the value chain work better when joined under unitary control. Assuming that the entrepreneur's objective is to maximize her wealth, we observe that even in the presence of transactional risks or other factors that might make integration preferable to specialization, initial scope depends also on relatively unexplored factors such as (a) how severe the entrepreneur's cash constraint is, and (b) how much value the entrepreneur's ideas add at each part of the value chain. Entrepreneurs will focus on the areas that provide the maximum profit yield per available cash – a criterion which implies that scope choices depend on cash availability and the depth of the demand for the new idea along the value chain. We also note that entrepreneurs make money not only from the operating profits of their firms, but also from the appreciation of the assets the firm has accumulated. This consideration can change the optimal choice of the firms’ boundaries, as entrepreneurs must be sensitive to choosing the segment that will enable them to benefit not only in terms of profit, but also in terms of asset appreciation. We propose that, in the entrepreneurial context especially, it is helpful to focus on the multiple considerations affecting the choice of boundaries for ‘a’ firm – the context faced by an individual entrepreneur – rather than on generic considerations affecting ‘the’ (representative) firm. Scope choices reflect the entrepreneur's own theory of ‘how to make money’.
01 Jan 2007
TL;DR: In this article, the authors provide an over-view of the past and some projections for the future in the new field of e-services, and provide an approach to consider the consumer early in the design process.
Abstract: Services marketing research increases in both intensity and relevance as services contribute an increasing share of the world’s economy and as firms and their customers increasingly interact through electronic networks. E-services present sharp new challenges to both researchers and practitioners because the processes from beginning to end of the e-service value chain are markedly different than those for offline services and because the electronic environment offers increased flexibility throughout the value chain. This flexibility creates the requirement to impose some sort of structure on all of the possible service and channel design choices. E-service flexibility creates an opportunity, and the need, to think about the consumer early in the design process. Finally, flexibility makes it difficult, but critically important, to consider various scenarios suggesting future developments in e-services. Our goal is to provide an over-view of the past and some projections for the future in the new field of e-services.
TL;DR: In this article, the authors highlight the future opportunities in value chain research to achieve more profitable and sustainable sugar industries in different countries by conducting an extensive review of value chain studies in sugar.
TL;DR: Using the notion of value disciplines to model strategic foci, it is found in a matched survey of executives in 241 firms that IT business value is highest in firms with a multi-focused business strategy and lowest in those with a single focus.
Abstract: Previous research finds that firm performance is highest when firms maintain a singular strategic focus as opposed to a multi-focused strategy. Yet, from an IT perspective, there is still some debate as to whether IT business value or the contribution of IT to firm performance is also maximized when firms maintain a single-focused strategy. Using the notion of value disciplines to model strategic foci, we find in a matched survey of executives in 241 firms that IT business value is highest in firms with a multi-focused business strategy and lowest in those with a single focus. We also find a relationship between strategic foci and the primary locus of IT value within the value chain for all focus-types except those emphasizing operational excellence. If all firms are using IT to reduce operating expenses, operationally excellent firms may find it increasingly difficult to sustain a low-cost advantage over time through IT.
TL;DR: In this paper, a generic model equipped with a "process visualizing" feature by capturing RFID logistics data to represent different logistics processes' status, and sharing them through web-based technology to supply chain parties is provided.
Abstract: Purpose – To provide a new generic model equipped with a “process visualizing” feature by capturing RFID logistics data to represent different logistics processes' status, and sharing them through web‐based technology to supply chain parties.Design/methodology/approach – In order to provide logistics service companies an effective way to manage their logistics processes and help both the up and down stream supply chain parties maximize their activities linkage within the value chain, the proposed system integrates radio frequency identification (RFID) and IT applications to optimize information flow in a supply chain. In doing so, the objective of visualizing logistics process is achieved.Findings – It is found that the proposed model enhanced the performance of third party logistics providers and their supply chain partners in three main areas. They include a significant reduction in inventory level, a substantial drop in the chance of out‐of‐stock and, a significant improvement in the efficiency of deli...
TL;DR: In this paper, the authors offer insights from industry in three areas of practice and a report on the outcome of a workshop of supply chain executives to improve alignment between supply chain and new product development (NPD).
Abstract: Purpose – Improving alignment between supply chain and new product development (NPD) can enhance market impact and revenue growth. Additionally, it can remove a lot of frustration for supply chain managers, who currently are often the last to find out about NPD, whereas their contribution is crucial when it comes to getting products to market on time and in the right volumes. Whereas a recent research note published in this journal offered possible avenues for progressing alignment between NPD and the supply chain, this paper seeks to offer insights from industry on how to actually achieve progress.
Design/methodology/approach – This paper offers insights from industry in three areas of practice and a report on the outcome of a workshop of supply chain executives.
Findings – The experience from case companies shows that companies are making progress in aligning NPD and the supply chain by improving basic alignment, improving supply chain readiness and leveraging supply chain capability to make NPD better.
Practical implications – In addition to case examples, a set of screening questions for supply chain managers to bring to alignment meetings with NPD are offered, supporting a growing supply chain contribution to NPD.
Originality/value – Following on from a research note published in this journal, this paper offers experiences from companies that have actually made progress with improving alignment as well as results from a focused workshop of senior supply chain executives. Together these findings can assist in making the path forward suggested in the research note a reality in practice.
Posted Content•
TL;DR: In this article, the authors integrated theory and practices of supply chain management, incorporating more than 15 years of research and industry consulting experience to both government and industry firms, focusing on how to build a competitive supply chain using viable management strategies.
Abstract: Integrating theory and practices of supply chain management, this book incorporates more than 15 years of supply chain and operations management research and industry consulting experience to both government and industry firms.The coverage focuses on how to build a competitive supply chain using viable management strategies, operational models, decision-making techniques, and information technology. It includes a core presentation on supply chain management and new initiatives such as e-commerce, collaborative planning, forecasting, and replenishment (CPFR), data mining, knowledge management, and business intelligence.
TL;DR: In this paper, a set of framework conditions to explain the diffusion of renewable energy technologies is used to analyze recent developments in four leading industrial countries, and concludes that Japan and Germany are competing to be the lead countries for the introduction of this technology.
TL;DR: In this article, the authors investigated the implications of global sourcing for the innovative capacity of the outsourcing company and argued that the loss of organizational proximity that is inherent in outsourcing is compounded by the increase in geographical distance.
Abstract: The main message of the proponents of strategic outsourcing is that it pays off to concentrate on the activities that you are good at. The result of specialization along the value chain will be a product that will be more competitive in terms of price, quality, and innovation. Globalization has many dimensions, but here we mainly want to consider the movement of manufacturing activities to low wage locations. In this paper we will investigate the implications of global sourcing for the innovative capacity of the outsourcing company. We will argue that these implications will be more pronounced in the case of global sourcing, because in that case the loss of organizational proximity that is inherent in outsourcing is compounded by the increase in geographical distance. The findings presented in this paper are the results from an ongoing research project on the relationships between research, development, and manufacturing against the background of increased global outsourcing of manufacturing. The...
01 Dec 2007
TL;DR: A framework for understanding inter-stakeholder communications within agricultural value chains, focusing on the needs of small producers is provided, drawing from the experiences designing agricultural information systems in India and Central America.
Abstract: Smallholder farmers face many challenges competing in the global marketplace. One major constraint is the lack of access to information and communications, which could be used to make decisions and reach new markets. In this paper, drawing from our experiences designing agricultural information systems in India and Central America, we provide a framework for understanding inter-stakeholder communications within agricultural value chains, focusing on the needs of small producers. First, we outline the major types of stakeholders - including farmers, consumers, intermediaries and various supporting organizations. Then, we survey the major categories of information systems supporting communication between stakeholders, focusing on those reaching small farmers. Based on this survey, we provide the following categorization of information flows within agricultural value chains: 1) link-to-link (L2L): those information flows required to coordinate the sale, movement, and distribution of produce along the value chain, 2) peer-to-peer (P2P): communications required to share knowledge and experiences between members of the same stakeholder group, and the expert community serving that stakeholder group and 3) end-to-end (E2E): communications between producers and consumers, for example, to facilitate exchange of non-economic values to be used as external inputs to market pricing (e.g, certification). We outline some reasons why current information systems have had difficulty in reaching small producers, and highlight a few technology trends that could contribute to increasing the fidelity and accessibility of communications, both between producers and consumers, as well as within their respective stakeholder communities.
Dissertation•
01 Jan 2007
TL;DR: In this paper, the authors present different optimization models for the natural gas value chain, which are designed to help analyze the value chain for natural gas and give decision support for the gas producers.
Abstract: This thesis presents different optimization models for the natural gas value chain. It focuses on the new challenges faced by the participants in the value chain for Norwegian gas after the liberalization of the European gas markets. Most of the models have a producer perspective and are designed to help analyze the value chain for natural gas and give decision support for the gas producers. The modelling framework in this thesis consists of linear programming, mixed integer programming, quadratic programming, stochastic programming and mixed complementarity problems. The thesis consists of this introductionary summary and four papers. Some of the work in this thesis has been sponsored by the VENOGA and the RAMONA project. VENOGA is a project involving Statoil, the Research Council of Norway, NTNU and SINTEF. The goal of the project is to build decision support models and competence for efficient operation and coordination in value chains where Norwegian gas is central. The RAMONA project involves the University in Stavanger, the University in Bergen, NTNU, SINTEF, Statoil, Gassco and CognIT. The intention with the project is to develop methods to optimize regularity and security of supply for the Norwegian gas production- and transportation system.
TL;DR: The Web Content Aggregators (WCAs) are identified as new players that provide third part content to other companies, institutions and end-users and efficiency, complementarities, lock-in, and novelty of value creation model has been applied specifically to them.