Showing papers on "Value chain published in 2011"

“Supply Chain 2.0”: managing supply chains in the era of turbulence

Abstract: Purpose – An underlying principle of supply chain management is to establish control of the end‐to‐end process in order to create a seamless flow of goods. The basic idea is that variability is detrimental to performance as it causes cost in the form of stock‐outs, poor capacity utilisation, and costly buffers. This paper questions this approach and argues that in the light of increasing turbulence a different approach to supply chain management is needed.Design/methodology/approach – The paper reports on the authors' work on a Supply Chain Volatility Index and shows how current supply chain practices may no longer fit the context most businesses now operate in – primarily because these practices were developed under assumptions of stability that no longer hold true. The paper illustrates the findings with case study evidence of firms that have had to adjust to various aspects of turbulence.Findings – The paper is able to show that most current supply chain management models emanate from a period of relat...

The influence of green practices on supply chain performance: a case study approach

Abstract: The main objective of this exploratory paper is to investigate the relationships between green practices of supply chain management and supply chain performance. This relationship is investigated in the context of the automotive industry. Five research propositions are suggested and tested with empirical data derived from five case studies taken from the Portuguese automotive supply chain. The data analysis identifies the most important green practices considered by managers, as well as the performance measures that are most appropriate and most widely used as means to evaluate the influence of green practices on supply chain performance. A conceptual model was derived from the data analysis and it can be used to assess the influence of green practices on supply chain performance. This model provides evidence as to which green practices have positive effects on quality, customer satisfaction and efficiency. It also identifies the practices which have negative effects on supply chain performance.

When are assets complementary? star scientists, strategic alliances, and innovation in the pharmaceutical industry

Abstract: To answer the question of when are assets complementary, we investigate specific resource combinations along the value chain, focusing on two mechanisms that are central to combining resources for innovation in the pharmaceutical industry: recruitment and retention of star scientists, and 2) engagement in strategic alliances. We propose that resource combinations that focus on the same parts of the value chain are substitutes due to knowledge redundancies. Conversely, we hypothesize that resource combinations that link different parts of the value chain are complements due to integration of nonredundant knowledge. To test these hypotheses, we empirically track the innovative performance of 108 global pharmaceutical firms over three decades (1974–2003). Copyright © 2011 John Wiley & Sons, Ltd.

The supply chain of CO2 emissions.

Abstract: CO2 emissions from the burning of fossil fuels are conventionally attributed to the country where the emissions are produced (i.e., where the fuels are burned). However, these production-based accounts represent a single point in the value chain of fossil fuels, which may have been extracted elsewhere and may be used to provide goods or services to consumers elsewhere. We present a consistent set of carbon inventories that spans the full supply chain of global CO2 emissions, finding that 10.2 billion tons CO2 or 37% of global emissions are from fossil fuels traded internationally and an additional 6.4 billion tons CO2 or 23% of global emissions are embodied in traded goods. Our results reveal vulnerabilities and benefits related to current patterns of energy use that are relevant to climate and energy policy. In particular, if a consistent and unavoidable price were imposed on CO2 emissions somewhere along the supply chain, then all of the parties along the supply chain would seek to impose that price to generate revenue from taxes collected or permits sold. The geographical concentration of carbon-based fuels and relatively small number of parties involved in extracting and refining those fuels suggest that regulation at the wellhead, mine mouth, or refinery might minimize transaction costs as well as opportunities for leakage.

Information technology, operational, and management competencies for supply chain agility: Findings from case studies

Abstract: Given the growing emphasis on the need for supply chain agility to sustain competitive advantage, this study explores the impact of the relationship between supply chain competence and supply chain agility on firm performance. Although the influence of supply chain agility on firm performance has been acknowledged, this study further articulates the relationship from the perspective of inter-organizational collaboration. We develop a conceptual model based on the resource-based view and employ a multi-case study method in this exploratory research. Our findings highlight the importance of distinguishing the difference between supply chain agility and supply chain competence and their impact on firm performance. This study contributes to the growing body of conceptual and empirical literature on supply chain agility and adds to the understanding of the complexity of supply chain competence.

Re-conceptualizing Bartlett and Ghoshal's Classification of National Subsidiary Roles in the Multinational Enterprise

Abstract: We re-conceptualize the Bartlett and Ghoshal typology of national subsidiary roles in the multinational enterprise (MNE), using a resource bundling perspective. Our view is that national subsidiary roles can vary dramatically across value chain activities. We focus on the distinction among innovation, production, sales, and administrative support activities. For each value chain activity, the subsidiary bundles sets of internal competences with accessible, external location advantages. We also address the effects of regional integration on national subsidiary roles. Such schemes may affect substantially the extent to which location advantages of individual countries can be accessed and bundled with internal competences, thereby typically altering some national subsidiaries' roles in specific value chain activities. However, such substantive changes in specific value chain activities performed by national subsidiaries do not necessarily lead to any move in conventional subsidiary role typologies, such as the Bartlett and Ghoshal one, since these typologies only acknowledge aggregate subsidiary role changes, supposedly valid for the entire value chain.

Using ISO 14001 to promote a sustainable supply chain strategy

Abstract: Formally adopted in 1996 by the International Organization of Standardization, ISO 14001 represents a voluntary international environmental standard, which will likely be adopted by a vast majority of corporations. Its major focus is on the structure, implementation and maintenance of a formal environmental management system. Despite its international acceptance, ISO 14001 is surrounded by controversy and criticism. The literature is clearly divided in its assessment of ISO 14001, which is viewed as a variant of total quality environmental management or a paper-driven process of limited value. In this study, case-based research is used to address the competing views of the standard to show that ISO 14001 registration can be leveraged across the supply chain into a competitive advantage. By looking at ISO 14001 registered firms, we compare different amounts of integration and sustainability in the supply chain. We then posit several research propositions to provide an empirical framework for the impacts of ISO 14001 on supply chain design and how it will evolve in the future. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.

Moving local food through conventional food system infrastructure: Value chain framework comparisons and insights

Abstract: There is growing recognition that the direct marketing initiatives favored by many local food activists and proponents often lack the capacity to meet rapidly expanding consumer demand for local food. To address these needs, some food systems researchers have identified a role for ‘transitional’ food systems that piggyback on the pre-existing, conventional local food system infrastructure, while moving toward the social and economic benefits of direct marketing. This paper uses a value chain model (based on business management studies and adapted to the context of agrifood enterprises) as a framework for investigating how actors who are accustomed to working within the logic of the traditional produce industry incorporate local food into their overall operations. Using a qualitative comparative case study approach, the paper examines how features of the value chain structure and governance mechanisms operate in two food distribution networks that are transitioning toward localization in a rural and an urban region of Pennsylvania, respectively. Case study analysis focuses on conventional wholesale produce distributors as the link between local producers and local buyers. Interviews with the distributors, producers and buyers reveal the sources and outcomes of challenges affecting how the distributors organize their purchasing and selling of local produce. Network practices, in turn, have equity implications as distributors struggle to pay producers enough to maintain their economic viability, while still making local produce accessible to a wide range of consumers. Policy-makers and practitioners seeking to support the ‘scaling up’ of local and regional food systems should consider targeted development of technical infrastructure in processing and distribution, as well as outreach on appropriate shared ownership models. Future research should be longitudinal to determine the longer-term role and contribution of the conventional food system infrastructure in transitioning to more sustainable local and regional food systems.

A New Introduction to Supply Chains and Supply Chain Management: Definitions and Theories Perspective

Abstract: Supply Chain and Supply chain Management have played a significant role in corporate efficiency and have attracted the attention of numerous academicians over the last few years. Academic literature review discloses an important spurt in research in practice and theory of Supply Chain (SC) and Supply Chain Management (SCM). Connecting and informing on Supply Chain, Supply Chain Management and distribution Management characteristics have contributed to the Supply Chain integration. This integration has generated the approach of extended corporate and the supply chain is nowadays manifested as the cooperative supply chain across intercorporate borders to increase the value across of the whole supply chain. This paper seeks to introduce supply Chain and Supply Chain Management. A Supply Chain and Supply Chain Management definition, theoretical, practical and measurement analysis are proposed. Several randomly selected refereed academic articles were methodically analyzed. A number of key findings have arisen: the field is a comparatively new one; several researchers have different perception of the discipline; the consensus is lacking on the definition of the terms: the Supply Chain and Supply Chain Management are widely defined; contextual focus is mainly on the manufacturing industry; research methods employed are mostly theoretical conceptual; the findings also suggest that undertaking a theory view could make important contributions towards defining the scope of supply chains. The literature review in this research proposes critical lexicons that are mostly used in academic dissertation. These notions can be beneficial for academician or organizations that are involve in Supply Chain Management business.

Supply chain flexibility in an uncertain environment: exploratory findings from five case studies

Abstract: Purpose – The objective of this paper is to illustrate and examine the different flexibility strategies adopted by supply chain participants as a result of different environmental uncertainties.Design/methodology/approach – An exploratory multi‐case study, involving five Chinese companies in the textile and apparel industry, was conducted.Findings – The analysis, based on the supply chain literature, reveals that the unpredictable dynamics of the supply chain can arise from a variety of internal and external sources, including suppliers, operating systems, customers, and competitors. In response to the various environmental uncertainties and risks in the supply chain, four types of flexibility strategy are identified in our case analysis: laggard, conservative, agile, and aggressive. The results also suggest that the adoption of flexibility strategies should match a firm's business environment and that better supply chain responsiveness can be achieved in two ways: by reducing uncertainties and by improvi...

Knowledge management in supply chain: An empirical study from France

Abstract: Supply chain management has assumed a leading operations strategy position in both manufacturing and service industries, and over the past 10years companies have seriously implemented supply chain management strategies in their organizations Knowledge management (KM) is a major enabler of supply chain management, and is a critical element in information intensive and multi-cultured enterprise environments Realizing the importance of knowledge management in supply chain (SC), an attempt has been made in this paper to propose a conceptual framework for KM in SC and to validate the framework with help of an empirical study conducted with French companies Finally, a summary of findings and conclusions is presented for KM in SC

Exploring supply chain innovation

Abstract: Supply chain management promises competitive advantages for industrial organizations. The introduction of new products and services, or entry into new markets, is likely to be more successful if accompanied by innovative supply chain designs, innovative supply chain management practices, and enabling technology. This is a widely accepted premise in business practice today. However, systematic research and knowledge about supply chain innovation (SCI) is little developed. There is a lack of common terminology, of agreement about the conceptual understanding, and of related empirical work. This paper presents an exploratory study that aims to provide a better understanding of SCI, mirroring leading edge practice, and providing a sound terminological and conceptual basis for advanced academic work in the field. The research is based on an in-depth literature review and the analysis of a set of secondary data sources: 36 SCI cases, drawn from applications for the Council of Supply Chain Management Professionals’ (CSCMP) Supply Chain Innovation Award. As results of the research, a new SCI definition, the construction of a descriptive model of its key elements, and discussion of implications are presented.

Beyond the vertical? Using value chains and governance as a framework to analyse private standards initiatives in agri-food chains

Abstract: The significance of private standards and associated local level initiatives in agri-food value chains are increasingly recognised. However whilst issues related to compliance and impact at the smallholder or worker level have frequently been analysed, the governance implications in terms of how private standards affect national level institutions, public, private and non-governmental, have had less attention. This article applies an extended value chain framework for critical analysis of Private Standards Initiatives (PSIs) in agrifood chains, drawing on primary research on PSIs operating in Kenyan horticulture (Horticulture Ethical Business Initiative and KenyaGAP). The paper explores the legislative, executive and judicial aspects of governance in these southern PSIs highlighting how different stakeholders shape debates and act with agency. It is argued that governance is exercised ‘beyond the vertical’ in that one can identify wider horizontal processes of governance, including how the scope of key debates is constructed (especially in legislative governance) but analysis of executive governance emphasises the dominant role of the lead buyers.

Forces, trends, and decisions in pharmaceutical supply chain management

Abstract: Purpose – The purpose of this paper is to identify and examine the major forces that are changing the way biopharmaceutical medications are purchased, distributed, and sold throughout the supply chain. This will become important as healthcare reform moves forward, and logistics will be transformed in this industry.Design/methodology/approach – Multiple interviews with key informants at each level of the value chain were combined with manifest text analysis from practitioner articles to derive key insights into the primary change drivers influencing the future of the biopharmaceutical supply chain.Findings – The research discovered radical shifts in the structure of the biopharmaceutical supply chain. Future research into biopharmaceutical supply chain practices will need to explore three primary issues: How will supply chain member compensation influence the power of parties within the network? How will the role of supply chain intermediaries change the landscape of medication delivery to the end customer...

The impacts of product design changes on supply chain risk: a case study

Abstract: Purpose – The main purpose of this paper is to address the impact of product design changes on supply chain risk, and to identify the supply chain risk dimensions in the Chinese special‐purpose vehicle (SPV) industry in the context of product design change.Design/methodology/approach – Case study methodology is adopted to describe the current situation of supply chain risk management in the Chinese SPV industry. Data are mainly collected from in‐depth semi‐structured interviews, and a cause‐effect diagram is used to identify and summarize the internal and external risk dimensions of supply chain risk.Findings – This paper identifies both the internal and external supply chain risk from the perspective of the focal manufacturer in the SPV supply chain. At the level of the external supply chain, customer‐required design change normally leads to risk in supply, delivery, and policy. Internally for the manufacturer, the risk dimensions are R&D, production, planning, information, and organization. All of these...

Understanding Michael Porter: The Essential Guide to Competition and Strategy

Abstract: Competitive advantage. The value chain. Five forces. Industry structure. Differentiation. Relative cost. If you want to understand how companies achieve and sustain competitive success, Michael Porter's frameworks are the foundation. But while everyone in business may know Porter's name, many managers misunderstand and misuse his concepts. Understanding Michael Porter sets the record straight, providing the first concise, accessible summary of Porter's revolutionary thinking. Written with Porter's full cooperation by Joan Magretta, his former editor at Harvard Business Review, this new book delivers fresh, clear examples to illustrate and update Porter's ideas. Magretta uses her wide business experience to translate Porter's powerful insights into practice and to correct the most common misconceptions about them--for instance, that competition is about being unique, not being the best; that it is a contest over profits, not a battle between rivals; that strategy is about choosing to make some customers unhappy, not being all things to all customers. An added feature is an original Q&A with Porter himself, which includes answers to managers' FAQs. Eminently readable, this book will enable every manager in your organization to grasp Porter's ideas--and swiftly deploy them to drive your company's success.

Global value chains in the automotive industry: an enhanced role for developing countries

Abstract: In this paper, we apply global value chain (GVC) analysis to recent trends in the global automotive industry. We focus on how the recent economic crisis has accelerated pre-crisis trends towards greater importance of the industry in the developing world. The regional structure of production in the industry has largely confined the impact of the crisis within each major producing country/region. 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 local markets. While it appears that some large developing countries, especially China and India, are gradually gaining more independence and autonomy as their industries and markets gain size and importance, supplier countries such as Mexico and countries in East Europe remain as dependent appendages of adjacent regional production systems.

Value Chain Linkages and the Spillover Effects of Strategic Information Technology Alignment: A Process-Level View

Abstract: The alignment of information technology IT and business strategy is a perennial challenge for corporate executives. While earlier studies confirm the value of alignment, there is still some question as to how alignment creates value and the level at which value is created. In this research, we use a series of theoretical arguments based on the interconnected structure of the value chain to consider the extended effects of alignment at the process level. Since processes are often linked to create a complex chain of activities, the absence or presence of alignment in any process could have implications for business performance elsewhere in the value chain. Minimally aligned processes can not only disrupt performance within the focal process, but their effects may also be felt further downstream in the form of bottlenecks and a diminution in the business value of IT. Using a simplified form of the value chain and data from matched surveys of business and IT executives at 317 U.S. and EU firms, we examine how the effects of alignment on a given process spill over into processes further downstream, creating higher IT business value in those downstream processes. We also show that these spillover effects continue along the length of the value chain and do not diminish based on distance from the focal process. Our results reinforce the call for firms to improve the fit between business and IT strategy by showing how efforts to improve alignment in a given process can deliver a stream of benefits along the value chain. This research provides a fresh perspective on the value of alignment, facilitating a deeper understanding and appreciation of the link between strategic IT alignment and firm performance.

Gender and agricultural value chains: A review of current knowledge and practice and their policy implications

Abstract: This paper introduces value chain analysis and development as tools for addressing gender inequities in markets. We describe how factors such as access to assets, gendered education differentials and the nature and value of economic activities affect the way in which men and women participate and gain in value chains, distinguishing among household, institutional and chain levels of analysis. Current empirical evidence for the role of upgrading in value chains in impacting gender inequities in markets is weakened by our as yet imperfect understanding of the issues. However, horizontal coordination can reduce gender-related disparities in bargaining and management power as a precursor to stronger vertical relationships. Improvements in processes, products and functional distribution in value chains can improve chain-level outcomes leading to women's empowerment and, ultimately, to improved household poverty outcomes. However, this progression from positive impacts to desirable outcomes is not a given and depends on often complex context-specific socio-cultural norms. In particular, the benefits of women's participation in agricultural value chains are determined by their control of productive resources and household level decisions. Where both sexes play a role in decision making generic interventions, or even those applied to men only, can benefit both sexes. Where women do not participate in spending decisions a more gender-specific approach that targets underlying gender issues in households and institutions is required. We illustrate that unsound gender analyses can miss the point, resulting in flawed understanding of the real issues and ineffective or even damaging interventions. We conclude that the universal application of packages of generic 'default' interventions risk doing harm and that upgrading strategies should be applied on a case by case basis and only after a thorough and robust analysis of causal factors. We outline for practitioners what a robust analysis should look like and present a menu of policy options for acting to promote gender equity and reduce poverty using the value chain analysis and development approach.

Success factors for innovation management in networks of small and medium enterprises

Abstract: Because firms today operate in increasingly turbulent and complex environments, they need to be more proactive and innovative. Networks are gaining in importance, especially for small and medium enterprises with limited resources as R&D cooperations or cooperations along the value chain seem to be the only way to succeed with technologically challenging and promising but also expensive and risky product innovations. One of the key problems of these networks, however, is the question of how to plan, organize and control the innovation processes that are distributed over several partners. Theoretically derived and empirically proven success factors could help as much here as in the traditional success/failure discussion of new product development within firms. This paper discusses the effects of such factors, which partly derive from the traditional success/failure discussion within firms (e.g. market potential, product advantage, technological synergy, proficiency of technological or marketing activities) but also factors derived from recent network research (e.g. trust or dependence on partners). Their effect on new product performance is discussed on the basis of a comprehensive survey with 271 participating networks. The results confirm the traditional success factors, especially the product advantage and proficiency factors. But they also show that network-related success factors (especially network cohesion and organization) are of similar major importance.

Reinventing R&D in an open innovation ecosystem.

Abstract: Today, the idea that random collisions and interactions offer solutions and business opportunities is no longer acceptable. Instead, partnerships and alignments, both downstream and upstream, are paramount for cross-fertilization and synergy. To survive, and thrive, in today's world of global innovation, alliances based on compatible differences must be sought. Innovation Partnerships and the Sharing-is-Winning model represent a paradigm shift toward accelerating co-development of sustainable innovation, with alignment of the entire value chain with consumer-centric innovations being one of its main pillars. It includes 3 levels of typical joint development: universities, research institutes, and centers; start-ups and individual inventors; a select number of key strategic suppliers. Reinventing R&D in an open innovation ecosystem and increasing success rates in an increasingly competitive marketplace require implementing significant steps--both perceived and tangible. Specific recommendations are provided for 10 major identified topics: leadership, strategy, the consumer, the value chain, internal experts and championship, metrics, IP, culture, academia, and passion. The Sharing-is-Winning model extends the scope of open innovation to sustainable and enhanced processes of co-innovation.

Value chain dynamics, local embeddedness, and upgrading in the clothing sectors of Lesotho and Swaziland

Abstract: This paper assesses the implications for upgrading of integration into two distinct clothing value chains in Lesotho and Swaziland- the value chain characterised by Taiwanese investment and feeding into the US market under the African Growth and Opportunity Act (AGOA) and the value chain characterised by South African investment and feeding into the South African market These value chains differ with regard to ownership patterns, end markets, governance structures, retailers’ demands, and investors’ motivations These different characteristics have crucial impacts on upgrading possibilities, including functional, process and ‘local’ upgrading Thus, from the perspective of upgrading and sustainability, ownership patterns, local embeddedness and market diversification matter The emergence of South Africa as an alternative end market and the different value chain dynamics operating in the South African retailer-governed value chain opens up new opportunities from those of the AGOA/Taiwanese-dominated value chain