Showing papers on "Value chain published in 2010"

Reconceptualizing the Firm in a World of Outsourcing and Offshoring: The Organizational and Geographical Relocation of High‐Value Company Functions

Abstract: In the largest sense, global strategy amounts to (1) the optimal disaggregation or slicing of the firm's value chain into as many constituent pieces as organizationally and economically feasible, followed by (2) decisions as how each slice should be allocated geographically ('offshoring') and organizationally ('outsourcing'). Offshoring and outsourcing are treated as strategies that need to be simultaneously analysed, where just 'core' segments of the value chain are retained in-house, while others are optimally dispersed geographically, as well as dispersed over allies and contractors. This amounts to a reconsideration of the nature of the firm that captures the dynamic changes in global configuration and a reconsideration of what constitutes 'core' activities that need to be retained internally. The article proposes a new research agenda that searches for each firm's optimal degree of disaggregation and global dispersion given that further scattering of value chain activities entail benefits as well as increased complexity and costs.

The Impact of Business Analytics on Supply Chain Performance

Abstract: The paper investigates the relationship between analytical capabilities in the plan, source, make and deliver area of the supply chain and its performance using information system support and business process orientation as moderators. Structural equation modeling employs a sample of 310 companies from different industries from the USA, Europe, Canada, Brazil and China. The findings suggest the existence of a statistically significant relationship between analytical capabilities and performance. The moderation effect of information systems support is considerably stronger than the effect of business process orientation. The results provide a better understanding of the areas where the impact of business analytics may be the strongest.

Integrating Poverty and Environmental Concerns into Value-Chain Analysis: A Conceptual Framework

Abstract: Many policy prescriptions emphasise poverty reduction through closer integration of poor people or areas with global markets. Global value chain (GVC) studies reveal how firms and farms in developing countries are upgraded by being integrated in global markets, but few explicitly document the impact on poverty, gender and the environment, or conversely, how value chain restructuring is in turn mediated by local history, social relations and environmental factors. This article develops a conceptual framework that can help overcome the shortcomings in ‘stand-alone’ value-chain, livelihood and environmental analyses by integrating the ‘vertical’ and ‘horizontal’ aspects of value chains that together affect poverty and sustainability.

Alliance Portfolio Diversity and Firm Performance

Abstract: In this paper, we offer a comprehensive alliance portfolio diversity construct that includes partner, functional, and governance diversity. Grounding our work primarily with the resource and dynamic capabilities-based views, we argue that increased diversity in partners’ industry, organizational, and national background will incur added complexity and coordination costs but will provide broadened resource and learning benefits. Increased functional diversity results in a more balanced portfolio of exploration and exploitation activities that expands the firm’s knowledge base while increased governance diversity inhibits learning and routine building. Hypotheses were tested with alliance portfolio and performance data for 138 multinational firms in the global automobile industry during the twenty-year period from 1985 to 2005. We found alliance portfolios with greater organizational and functional diversity and lower governance diversity were related to higher firm performance while industry diversity had a U-shaped relationship with firm performance. We suggest firms manage their alliances with a portfolio perspective, seeking to maximize resource and learning benefits by collaborating with a variety of organizations in various value chain activities while minimizing managerial costs through a focused set of governance structures.

The Strategic Nexus of Offshoring and Outsourcing Decisions

Abstract: One important effect of the increasing integration of the world economy is the rising importance of possibilities to offshore and outsource value-creating activities. In many industries, firms are able to disaggregate their value chains into smaller parts. This process allows for a less path-dependent approach to the firm's ideal location profile (through offshoring and relocation) and control strategies (through outsourcing). This article argues that optimal decisions regarding individual processes recognize the linkages of these processes with the firm's entire value chain. The article explores the magnitude, sequence, and dynamics of interdependent decisions regarding the location and control of various parts of the value chain. By using case illustrations from the mobile handset and financial services industries, this article provides a novel perspective on the disintegration, mobility, and reintegration of value chain activities in a global context.

Alliance portfolio diversity and firm performance

Abstract: In this paper, we offer a comprehensive alliance portfolio diversity construct that includes partner, functional, and governance diversity. Grounding our work primarily with the resource- and dynamic capabilities-based views, we argue that increased diversity in partners' industry, organizational, and national background will incur added complexity and coordination costs but will provide broadened resource and learning benefits. Increased functional diversity results in a more balanced portfolio of exploration and exploitation activities that expands the firm's knowledge base while increased governance diversity inhibits learning and routine building. Hypotheses were tested with alliance portfolio and performance data for 138 multinational firms in the global automobile industry during the twenty-year period from 1985 to 2005. We found alliance portfolios with greater organizational and functional diversity and lower governance diversity were related to higher firm performance while industry diversity had a U-shaped relationship with firm performance. We suggest firms manage their alliances with a portfolio perspective, seeking to maximize resource and learning benefits by collaborating with a variety of organizations in various value chain activities while minimizing managerial costs through a focused set of governance structures. Copyright © 2010 John Wiley & Sons, Ltd.

Supply Chain Management Strategy

Abstract: Successfully managing a supply chain requires a supply chain management strategy, aligning all of the companies involved in a supply chain with respect to product, market, and supply characteristics. Doing so requires balancing acceptable levels of cost efficiencies and customer service effectiveness and adopting a supply chain orientation in the firm. Keywords: supply chain orientation; sales and operations planning; demand and supply integration; supply chain management strategy; supplu chain design

Building Competitiveness in Africa's Agriculture: A Guide to Value Chain Concepts and Applications

Abstract: The development and business communities involved in the African agriculture and agribusiness sectors have recently experienced a strong resurgence of interest in promoting value chains as an approach that can help design interventions geared to add value, lower transaction costs, diversify rural economies, and contribute to increasing rural household incomes in Sub-Saharan Africa (SSA) countries. Enhancing value chain competitiveness is increasingly recognized as an effective approach to generating growth and reducing the rural poverty prevalent in the region. This is a welcome development for practitioners who have long been convinced of the need to look differently at agriculture not just as a means of survival, but as smaller or larger commercial businesses linked to domestic and global markets and of the need to identify and tap into new sources of potential growth and value addition in the sector. Hopefully, renewed engagement will lead to a substantial increase in the flow of financial resources and technical assistance devoted to supporting market-driven, competitive agro-enterprises and agricultural value chains throughout the African continent. However, there is danger that this renewed engagement may not last, or may even backfire, if the high expectations placed on promoting value chains are not met. Because the development literature is not clear about the concepts and methods relating to value chains, there is risk that sooner or later the benefits of the value chain approach will be overshadowed by unmet expectations. That in turn could cause the approach to be discarded categorically. Although there is no single way to mitigate such risks, this guide aims to offer practical advice and tools to businessmen, policy makers, representatives of farmer or trade organizations, and others who are engaged in SSA agro-enterprise and agribusiness development. This guide is particularly designed for those who want to know more about value chain based approaches, and how to use them in ways that can contribute to sound operational decisions and results for enterprise and industry development, as well as for policy making with respect to doing business, stimulating investment, and enhancing trade in the context of African agriculture.

Integrating Poverty and Environmental Concerns into Value-Chain Analysis: A Strategic Framework and Practical Guide

Abstract: This article aims to guide the design and implementation of action-research projects in value-chain analysis by presenting a strategic framework focused on small producers and trading and processing firms in developing countries. Its stepwise approach – building on the conceptual framework set out in a companion article – covers in detail what to do, questions to be asked and issues to be considered, and integrates poverty, gender, labour and environmental concerns.‘Upgrading’ strategies potentially available for improving value-chain participation for small producers are identified, with the ultimate purpose of increasing the rewards and/or reducing the risks.

Supply chain finance: applying finance theory to supply chain management to enhance finance in supply chains

Abstract: It is now accepted that logistics and supply chain management (SCM) have great potential for improving bottom line results. This paper proposes a framework for investigating the financial issues in logistics and SCM and shows that taking a supply chain perspective on financial issues offers great opportunities for SCM professionals. SCM can not only contribute to improvements in sales, cost of sales, and the invested capital, but also has the potential to improve the capital cost rate as a long neglected supply chain driver of shareholder value.

Chain Empowerment: Supporting African Farmers to Develop Markets

Abstract: This is a book of hope for Africa's smallholder farmers. It shows how they can earn more from their crops and livestock by taking control over the value chains they are part of - chains that link them with consumers in Africa's towns and cities, as well as in other countries. The book is written in easy-to-understand language and is richly illustrated with line drawings. The book describes two basic strategies that groups of farmers can use to improve their incomes: vertical and horizontal integration. Vertical integration means taking on additional activities in the value chain: processing or grading produce, for example. Horizontal integration means becoming more involved in managing the value chain itself - by farmers' improving their access to and management of information, their knowledge of the market, their control over contracts, or their co-operation with other actors in the chain. This book contains 19 case studies showing how groups of farmers throughout Africa have adopted one or both of these strategies to improve their incomes. It shows how development organisations have helped them do this - how they have succeeded, and how they have sometimes failed. It shows the need to invest in improving the quality of existing products, developing new products, establishing market linkages, and building farmer organisation and capacity. The book provides numerous insights for those striving to empower smallholder farmers to develop markets. It will be of particular interest to government policymakers and staff involved in agricultural development, non-government organisations, university faculty and students, trainers, evaluators, and donors seeking ways to promote agriculture in Africa and elsewhere in the developing world.

Competing Through Supply Chain Management: Creating Market-Winning Strategies Through Supply Chain Partnerships

Abstract: Meeting the challenge of supply chain management. The challenge of today's business environment. Evolution of supply chain management. Developing SCM strategies. Supply channel management. Supply chain inventory management. Supply chain quality and performance measurement. The workforce and information technology. Implementing SCM. Index.

Review article: A review of soft computing applications in supply chain management

Abstract: It is broadly recognised by global companies that supply chain management is one of the major core competencies for an organisation to compete in the marketplace. Organisational strategies are mainly concentrated on improvement of customer service levels as well as reduction of operational costs in order to maintain profit margins. Therefore supply chain performance has attracted researchers' attention. A variety of soft computing techniques including fuzzy logic and genetic algorithms have been employed to improve effectiveness and efficiency in various aspects of supply chain management. Meanwhile, an increasing number of papers have been published to address related issues. The aim of this paper is to summarise the findings by a systematic review of existing research papers concerning the application of soft computing techniques to supply chain management. Some areas in supply chain management that have rarely been exposed in existing papers, such as customer relationship management and reverse logistics, are therefore suggested for future research.

Value Chains, Donor Interventions and Poverty Reduction: A Review of Donor Practice

Abstract: Summary Value chain interventions are increasingly popular amongst donors aiming to promote market-oriented growth and poverty reduction. Based on the reflections of the community of practice itself and extensive desk research, this review critically examines the causal models underlying value chain interventions and asks how and to what extent their poverty alleviation impacts have been systematically investigated. Concentrating on a selection of 30 donor-led value chain interventions, the review finds two main patterns of engagement: (a) one which funnels assistance by partnering with lead firms in the value chain –lead firm projects; and (b) one which works with chains without a lead firm –value chain linkage projects. Targeting of the poor seems more effective in value chain linkage projects and in those lead firm projects where beneficiaries are identified in both the chain's suppliers and distributors. Controversially, despite a wealth of positive anecdotal evidence, the vast majority of projects did not carry out an impact assessment of their poverty alleviation objectives and it is therefore unclear whether the value chain intervention: (a) is responsible for the improvements observed; (b) benefits the poor disproportionately; and (c) is more cost effective than other alternative approaches. Assessing the poverty alleviation effects of individual interventions in a rigorous way is costly and challenging but necessary to ensure long term effectiveness of the interventions as well as optimising the use of public funds. There is a need to carry out systematic impact assessment at the programme level to develop a strong evidence base. Finally, this review provides some guidelines for designing and managing value chain interventions, particularly regarding the identification of situations in which the value chain approach is most appropriate and those where other private sector-oriented approaches (such as Business Development Services and Making Markets Work for the Poor) may be more suitable or complementary.

Supply Chain Integration: Cluster Analysis of the Impact of Span of Integration

Abstract: Purpose – This paper aims to explore whether firms that integrate only with partners adjacent to them in the supply chain exhibit different patterns of supply chain practice and performance than those that also integrate with partners more distant in the supply chain.Design/methodology/approach – Cluster analysis of survey data is used to partition firms based on the span of the supply chain involved in their integration efforts.Findings – Firms with a broad span of integration have a greater focus on alignment with suppliers and customers, and have more of a supply chain focus than those with a narrow span. They also demonstrate higher levels of performance attributable to supply chain relationships.Practical implications – Results highlight the importance to supply chain professionals of taking a broad view of the supply chain rather than focusing only on first tier suppliers and customers. They also suggest the importance of exploring opportunities to facilitate broader participation in supply chain in...

Matching Product Architecture and Supply Chain Configuration

Abstract: In this paper, we examine the suggested link between product architecture (i.e., the extent to which a product is modular vs. integral) and supply chain configuration (i.e., whether the product development is done internally by the manufacturer in an integrated supply chain or in collaboration with a supplier in a decentralized supply chain). Our model suggests that the choice of product architecture depends on firm, market, and product characteristics in addition to supply chain structure. In contrast to other studies, we find that the optimal mapping from architecture to supply chain structure is not always one-to-one. A decentralized supply chain may be associated with a more integral product when the technical collaboration penalty is not excessive and suppliers have significantly superior product development capabilities. Furthermore, in a decentralized supply chain, the nature of the relationship between the original equipment manufacturer and its supplier (adversarial or collaborative) plays a role in the choice of product architecture: modular architectures are more likely when the parties have adversarial relationships, while long-term trust-based relationships facilitate more integral product architectures.

Effects of the crisis on the automotive industry in developing countries : a global value chain perspective

Abstract: This paper applies global value chain analysis to study recent trends in the global automotive industry. The authors pay special attention to the effects of the recent economic crisis on the industry in developing countries. The principal finding is that the crisis has accelerated pre-crisis trends toward greater importance of the industry in the South. More rapid growth of car ownership is the impetus, but the co-location and close interaction of suppliers and lead firms in this industry is an important catalyst. Opportunities to move up in the value chain for suppliers in emerging economies have proliferated and are likely to become even stronger now that an increasing number of new models are developed specifically for markets in developing countries. The co-location of assembly and parts plants in national and regional production systems has largely confined the impact of sales declines during the crisis to each country/region. In addition, the different development strategies followed by countries like Mexico, China, and India are slowly converging as their industries gain size and independence.

Examining the interrelationships between supply chain integration scope and supply chain management efforts

Abstract: In this article, we study the concept of supply chain integration scope by comparing firms that involve immediate supply chain partners in their strategic efforts (narrow supply chain scope) versus firms that involve supply chain partners beyond the immediate level, for example second tier suppliers and end customers (broad supply chain scope). By relying on Coordination Theory and expanding upon Frohlich and Westbrook's (2001) ‘arcs of integration’ principle, we propose that supply chain integration scope and the type of supply chain management efforts deployed by firms are correlated. We use data from a large sample of US and European firms to explore the association between supply chain integration scope and supply chain management efforts. The results show that supply chain integration scope can be predicted by a firm's supply chain management efforts. The implications of our results for practising managers are also offered. Our results suggest that supply chain managers should consider the practices ...

The constructs of sustainable supply chain management - a content analysis based on published case studies

Abstract: The intersection of supply chain management and sustainability is still a rather young research field emerging as growing topic only recently. This paper outlines findings of a content analysis assessing systematically all case studies in the field of sustainable supply chain management, published from 1994 to 2007 in English-speaking peer-reviewed journals, and thus, mapping and evaluating the scope of current SCM topics reflected in these case papers. The analysis confirms previous research that highlights pressures from governments, customers and stakeholders as triggers of sustainable supply chain management and the neglect of the social dimension of sustainability within supply chain management. Improving supplier performance or, at least, assuring minimum performance standards can be generally regarded important objectives of supply chain strategies. Communication is an outstanding characteristic both for traditional and sustainable supply chain management; though far-reaching supply chain integration is still rather limited.

An Economic Industry and Institutional Level of Analysis of Corporate Social Responsibility Communication

Abstract: This study identifies the similarities and differences in corporate social responsibility (CSR) communication at the institutional and economic industry level of analysis. Findings suggest that at the institutional level of analysis, a corporate consensus exists about the scope of CSR and is largely understood as welfare capitalism. However, at the economic level of analysis, differences across economic industries exist based on value-chain position. Specifically, industries further up the value-chain focus on the safety of their employees, ethical business practices, and environmental stewardship as essential elements of CSR, whereas economic industries closer to customers in the value chain were more likely to focus on philanthropy and education as CSR.

Management Models for Corporate Social Responsibility

Abstract: Finally in Business: Organising Corporate Social Responsibility in Five.- Finally in Business: Organising Corporate Social Responsibility in Five.- Generic Models for the Business Context.- The SIGMA Management Model.- CSR in the Extractive Industry: An Integrated Approach.- RainbowScore(R): A Strategic Approach for Multi-dimensional Value.- COMPASS to Sustainability.- sustManage(TM) - Integrating Corporate Sustainability.- The Molecule Model.- Global Compact Performance Model.- Generic Models for the Societal Context.- WEV: A New Approach to Supply Chain Management.- A Model for Multi-stakeholder Partnerships on Human Rights in Tourism.- The Guangcai Model.- Community Learning in the Indian Education Sector.- Creating Space for CSR in Melbourne.- Organising Identity.- Integrating People, Planet and Profit.- Reflexivity: Linking Individual and Organisational Values.- Self-Organising Leadership: Transparency and Trust.- The CSR Brand Positioning Grid.- Organising Transactivity.- On Dialogue: A Self-Development Tool.- Stakeholder Engagement: The Experience of Holcim.- Managing Expectations in Partnerships.- A Stepwise Approach to Stakeholder Management.- Fair Labour Association Model.- A Stakeholder Model for Emerging Technologies.- Organising Systems.- Product Stewardship for CSR.- Sabento Model: Social Assessment of Biotechnological Production.- The Branding of CSR Excellence.- The Four Dimensions of Responsible Purchasing.- The Hurdles Analysis: A Way to Greener Public Procurement.- Strategic CSR Communication: Telling Others How Good You Are.- CSR Online: Internet Based Communication.- Organising Accountability.- A Product Sustainability Assessment.- Drawing the Lines in Value Chain Responsibility.- Resource Efficiency Accounting.- The GoodCorporation Framework.- Promoting Human Rights in the Supply Chain.- Organising the Business Proposition.- Assessing the Value Chain Context.- Pursuing Sustainability Through Enduring Value Creation.- Price: Earnings Ratio and Commercial Performance.- A Strategy Model for Sustainable Profits and Innovation.- Modelling the Business Case for Sustainability.- Creating Competitive Advantage: The Sustainable Value Model.- CSR Upside Down: The Need for Up-Front Knowledge Development.

Values based supply chain management and emergent organizational structures

Abstract: Purpose – The purpose of this paper is to describe an emergent supply chain management system that supports a sustainable values based organization (VBO) using a structuration theory‐based framework.Design/methodology/approach – A case study of a sustainable beef cooperative employing a structuration theory framework provides insights into sustainable supply chain management models.Findings – The supply chain design and management afford the key to the VBO's success. In order to attain the necessary price premium, the unique product attributes acquired through the natural beef production process must be sustained along the entire supply chain and communicated to the end customer. Structuration theory is useful in understanding supply chain management in VBOs.Research limitations/implications – The paper has implications for studying VBOs, particularly those prioritizing sustainability values. The descriptive model presented is useful in settings where organizational structure and the supply chain are need...

Effects of the crisis on the automotive industry in developing countries : a global value chain perspective

Abstract: This paper applies global value chain analysis to study recent trends in the global automotive industry. The authors pay special attention to the effects of the recent economic crisis on the industry in developing countries. The principal finding is that the crisis has accelerated pre-crisis trends toward greater importance of the industry in the South. More rapid growth of car ownership is the impetus, but the co-location and close interaction of suppliers and lead firms in this industry is an important catalyst. Opportunities to move up in the value chain for suppliers in emerging economies have proliferated and are likely to become even stronger now that an increasing number of new models are developed specifically for markets in developing countries. The co-location of assembly and parts plants in national and regional production systems has largely confined the impact of sales declines during the crisis to each country/region. In addition, the different development strategies followed by countries like Mexico, China, and India are slowly converging as their industries gain size and independence.

Internal benchmarking for assessment of supply chain performance

Abstract: Purpose – In global scenario, many organizations own supply chains, which operate in different countries. The performance of these supply chains, owned by the same organization must be same if they operate in countries with similar economical, political, and social conditions. In this paper, an effort has been made to propose a methodology for the internal benchmarking to reduce the variability in performance among supply chains of same focal firm. The proposed methodology of internal benchmarking for assessment of supply chain performance demonstrated through a case supply chain.Design/methodology/approach – A case of global supply chains is presented in which a focal firm owns three supply chains operating in three different countries. In order to assess and improve the performance of these supply chains relative to each other, a benchmarking methodology is proposed.Findings – An extensive use of performance value analysis (PVA) and strength, weaknesses, opportunities, and threats (SWOT) analysis provid...

Aligning business process reengineering in implementing global supply chain systems by the SCOR model

Abstract: As supply chains continue to replace individual companies as the management arena for value-adding from the beginning of the twenty first century, understanding the supply chain management practices in a globalisation context becomes increasingly important. The Supply Chain Operations Reference (SCOR) Model, which was developed by the experts and practitioners of the Supply Chain Council, is a major framework for supply chain planning that features supply chain management practices and business process reengineering. Despite being an integrative guide with many merits, it only provides a ‘top-down’ approach that requires the comparative analyses of post- and pro-performance indices as a basis of business process modification. This study discusses the limitations of current SCOR analysis and provides a mapping technique—Causes/Effects, the SCOR Standard, and Mutual Solution (CESM)—for gap mapping, problem prioritisation, and business process modification in a supply chain setting. As such, it is one of the...