Showing papers on "Value chain published in 2018"
TL;DR: A systematic and extensive review of research that captures the dynamic nature of industry 4.0 has been presented in this article, where 85 papers were classified in five research categories namely conceptual papers on Industry4.0, human-machine interactions, machine-equipment interactions, technologies of Industry 4., and sustainability.
707 citations
TL;DR: In this article, the authors investigated the impact of Industry 4.0 on the companies operating in Hungary and found that the spread of real-time data across companies, given the availability of appropriate analytical tools and methods, can have a significant impact on the entire company.
Abstract: In the era of industrial digitalization, companies are increasingly investing in tools and solutions that allow their processes, machines, employees, and even the products themselves, to be integrated into a single integrated network for data collection, data analysis, the evaluation of company development, and performance improvement. To study the impact of Industry 4.0 on the company we used Porter’s (1985) value chain model, which is particularly useful when paying particular attention to corporate areas which have a primary role in customer value creation. Since the primary impact of Industry 4.0 is perceived in value-creating processes, and has so far had the greatest transformative effect in this area, the model can be considered to be appropriate. The objective of our research is to discover how companies operating in Hungary interpret the phenomenon of Industry 4.0, what Internet of Things (IoT) tools they use to support their processes, and what critical issues they face during adaptation. We applied a dual methodology in our investigation: We sent an online questionnaire to manufacturing and logistical service companies to investigate the IoT tools they use, and the problems they face, and received 43 answers we could evaluate. We also conducted four expert interviews with manufacturing firms to get deeper insights into the application, critical issues and development phases of IoT tools. During our research, we found that the spread of real-time data across companies—given the availability of appropriate analytical tools and methods—can have a significant impact on the entire company. In the case of CPS (Cyber Physical System), CPPS and Big Data Technologies, companies using them have been evaluated as having a higher level of logistic service, more efficient processes with their partners, improved cooperation between certain logistic functions, and higher market and financial performance and competitiveness. Applying more efficient production processes, and achieving better productivity and economies of scale, might also result in increased economic sustainability. Furthermore, we have found that companies have started on the path to digital evolution, and investments of this type have already begun.
389 citations
TL;DR: The purpose of the study is to analyze categorically recent advances through qualitative and segmentation methods allowing to reveal trends and areas of opportunity in the industry sense of 4.0 in order to obtain research gaps that may be executed in organizational systems on the value chain.
Abstract: The evolution of markets and customer requirements with highest level of precision, has been achieved created with technology and information systems, a new way of make the operations in the companies, and just the companies with the ability to adapt faster to technological innovations may remain on the market. The last industrial revolution, known as industry 4.0 perceives the operations as a holistic system, its represents a challenge that must be fulfilled and faced in order to achieve stability and permanence in the market, from the point of view of the world economies. In the organizational and business area all the operations must be linked to computer systems and management of information in the network, which causes greater efficiency in the flow. With this new perception of industry and the business, it involves different analytical tools that aim at bigger efficiency in the service to the consumers, resulting in a greater competitiveness in the market and making the differentiator. This work is one of the first surveys that provides an extensive analysis and review of 110 publications that appear from 1/01/12 to 20/02/17. The purpose of the study is to analyze categorically recent advances through qualitative and segmentation methods allowing to reveal trends and areas of opportunity in the industry sense of 4.0 in order to obtain research gaps that may be executed in organizational systems on the value chain. Another point is to be a reference in future research related to the categories selected in this study.
195 citations
TL;DR: In this paper, a structural analysis of business models used by CE-driven firms utilizing the fundamental business model components of value proposition, value creation/delivery, and value capture is presented.
166 citations
TL;DR: In this paper, the authors examine how the circular economy model is pushing companies in developing economies like India to design and implement business models that are based on reduce, reuse, and recycle paradigms.
Abstract: According to the UN Sustainable Development Goals in 2016, the demand for resources will require natural resources equivalent to two and three planets by 2030 and 2050, respectively. The linear economic model driven by a “take-make-dispose” philosophy is unable to manage the demand and supply balance in consumption of natural resources. This imbalance is affecting the sustainability of the countries and enterprises as well as affecting the global supply chain leading to socioeconomic and environmental risks and volatility. Realizing the future resource scarcity challenge, the current linear economy model is giving way to the circular economy model. The circular economy model focuses on careful alignment and management of resource flows across the value chain by integrating reverse logistics, design innovation, collaborative ecosystem, and business model innovation. This article examines how circular model is pushing the companies in developing economies like India to design and implement business models that are based on reduce, reuse, and recycle paradigms. © 2016 Wiley Periodicals, Inc.
158 citations
TL;DR: In this paper, a CO2 value chain is defined as a network of technologies and infrastructures along with its associated activities required to convert low-value resources to high-value products and energy services, and deliver them to customers.
Abstract: In addition to carbon capture and storage, efforts are also being focussed on using captured CO2, both directly as a working fluid and in chemical conversion processes, as a key strategy for mitigating climate change and achieving resource efficiency. These processes require large amounts of energy, which should come from sustainable and, ideally, renewable sources. A strong value chain is required to support the production of valuable products from CO2. A value chain is a network of technologies and infrastructures (such as conversion, transportation, storage) along with its associated activities (such as sourcing raw materials, processing, logistics, inventory management, waste management) required to convert low-value resources to high-value products and energy services, and deliver them to customers. A CO2 value chain involves production of CO2 (involving capture and purification), technologies that convert CO2 and other materials into valuable products, sourcing of low-carbon energy to drive all of the transformation processes required to convert CO2 to products (including production of hydrogen, syngas, methane etc.), transport of energy and materials to where they are needed, managing inventory levels of resources, and delivering the products to customers, all in order to create value (economic, environmental, social etc.). Technologies underpinning future CO2 value chains were examined. CO2 conversion technologies, such as urea production, Sabatier synthesis, Fischer-Tropsch synthesis, hydrogenation to methanol, dry reforming, hydrogenation to formic acid and electrochemical reduction, were assessed and compared based on key performance indicators such as: CAPEX, OPEX, electricity consumption, TRL, product price, net CO2 consumption etc. Technologies for transport and storage of key resources are also discussed. This work lays the foundation for a comprehensive whole-system value chain analysis, modelling and optimisation.
154 citations
TL;DR: Wang et al. as discussed by the authors presented a conceptual model extended from the innovation value chain model to simultaneously estimate the R&D and commercialization efficiencies for the high-tech industries of 29 provincial-level regions in China.
126 citations
TL;DR: The authors identified exemplar business organizations that had each changed their business models to resolve the tension of waste as a burden and/or resource, and found these organizations applied systems thinking to reframe their product and service offerings and developed material circular flows in their business model.
Abstract: Traditionally, wasted resources are considered a burden that imposes a cost on organizations. However, ecological sustainability principles underpinning the linked discourses of industrial ecology and the Circular Economy conceptualize waste as intrinsically valuable. Our research identified exemplar business organizations that had each changed their business models to resolve the tension of waste as a burden and/or resource. Synthesizing these cases, we found these organizations applied systems thinking to reframe their product and service offerings and developed material circular flows in their business models. Analysis of how our exemplar organizations changed their business models to tackle pressing sustainability issues and to resolve the burden–resource tension show that the focus of change is on reconceptualizing their understanding of the role of waste in the value chain of their products and services. This altered understanding of waste as a resource across their value networks initiated negotiations with their existing suppliers to also modify their supply chain practices.
106 citations
TL;DR: In this paper, the authors identify three different social responsibility paradigms: value chain responsibility, supply chain responsibility and consequential responsibility, and point out that each responsibility paradigm implies a specific matching system model.
104 citations
TL;DR: In this article, the authors draw on both these literatures and emphasize that the MNE integration of upstream and downstream strategic considerations to maximize its control of bottleneck assets implies an optimal geographic footprint, typically asymmetric, with a spatial scale that varies dramatically across the different activities of the value chain.
Abstract: IB scholars have long studied the multinational enterprise (MNE) and now recognize that its ability to capture value stems from its control of bottleneck assets. In contrast, economic geographers and regional scientists have largely focused their attention on the locations within which economic and business systems operate. In this article, we draw on both these literatures. We emphasize that the MNE’s integration of upstream and downstream strategic considerations to maximize its control of bottleneck assets implies an optimal geographic footprint. This optimal footprint is typically asymmetric, with a spatial scale that varies dramatically across the different activities of the value chain. Upstream innovation processes are likely to be based on highly local considerations like the availability of specialized resources and collocation advantages. In contrast, downstream sales and marketing processes are likely to driven by imperatives of high volume and global reach. Further, in the current fast clockspeed business environment, the location and nature of bottleneck assets are likely to change rapidly and unpredictably, making organizational flexibility a crucial MNE capability.
87 citations
TL;DR: In this article, the authors analyzed how well Brazil, the world's leader in sugarcane production, is positioned to reach these goals by using two conceptual tools: one is the "biomass-based value web" which was developed as an extension of the value chain concept with the aim to capture the links within and between value chains that arise from the cascading and joined use of biomass.
TL;DR: In this paper, the authors identify and examine strategies to promote sustainable livelihoods in a conservation landscape by using the Community Livelihood Appraisal and Product Scanning (CLAPS) method to describe potential commodities and conduct value chain and market analyses.
TL;DR: Wang et al. as discussed by the authors proposed a hierarchical structure of sustainable supply chain management and developed a multi-item measurement scale to reflect the specific management practices of sustainable S2S management, which can provide managers with a "to do list" to make specific business decisions to achieve sustainable development.
Abstract: Drawing from the research of green supply chain management and corporate social responsibility, this research proposes a hierarchical structure of sustainable supply chain management and develops a multi-item measurement scale to reflect the specific management practices of sustainable supply chain management. In this research, sustainable supply chain management is operationalised as a third-order factor reflected by three second-order factors, namely external green supply chain management, internal green supply chain management and corporate social responsibility. Utilising a rigorous, multi-step scale development method and data from 293 Chinese manufacturers, this research validates a 31-item measurement scale and approves the proposed third-order structure. The results confirm the multidimensionality of sustainable supply chain management, which suggests that it is necessary for the future researches to consider both environmental and social aspects. The valid measurement scales provide managers with a “to do list” to make the specific business decisions to achieve sustainable development in the supply chain.
TL;DR: In this article, the authors apply the concepts of value capture and strategic coupling from the Global Production Networks (GPN) literature to assess the developmental impacts of formally-registered (protected) GIs in the Indonesian coffee sector.
TL;DR: In this paper, a normative approach was taken to understand whether the current palm oil value chain governance comply with the principle of good governance, and the focus was on analyzing options to improve the current governance towards good governance.
TL;DR: In this article, the authors synthesize knowledge from the social-ecological systems (SES), supply chain management, and value chain development literature to make three contributions to this research gap.
Abstract: Although agricultural value chain resilience is a crucial component to food security and sustainable food systems in developing countries, it has received little attention. This paper synthesizes knowledge from the social-ecological systems (SES), supply chain management, and value chain development literature to make three contributions to this research gap. First, we conceptualize agricultural value chain resilience and relate it to overall food system resilience. Second, we identify seven principles that are hypothesized to contribute to SES resilience, relate them to supply chain management theory, and discuss their application in agricultural value chains. A key insight is that the appropriateness of these principles are important to assess on a case-by-case basis, and depend in part on trade-offs between resilience and other dimensions of value chain performance. Third, we integrate two common tools, the Resilience Alliance’s assessment framework and value chain analysis techniques, to outline an adaptable participatory approach for assessing the resilience of agricultural value chains in developing countries. The objectives of the approach are to cultivate a chain-wide awareness for past and potential disturbances that could affect food security and other essential services provided by the value chain, and to identify upgrades that can build resilience against these key disturbances.
03 Apr 2018
TL;DR: Digital Transformation (DT) is an essential trend for manufacturing companies as digitalization of the value chain affects the entire company as mentioned in this paper, and strategic management functions should consider DT technologies in their decision making process.
Abstract: Digital Transformation (DT) is an essential trend for manufacturing companies as digitalization of the value chain affects the entire company. Strategic management functions should consider DT tech...
TL;DR: This article examined the role of institutional factors that enable firm-and country-specific drivers of emerging market (EM) firms' internationalization based on case-based research conducted in one EM, Turkey.
TL;DR: This paper presents a model of these interactions and sketches out an analytical view as to how production organization takes place in the mining sector, and how these location-specific forces induce change in the industry over time.
TL;DR: This study provides the first structured overview of the current trade in commercial MAPs from Nepal to China and makes public policy recommendations to increase the transparency and sustainability of trade by improving traditional border markets and removing market barriers.
TL;DR: In this paper, the authors proposed a framework of production planning and control with carbon tax under Industry 4.0 and use the tire industry as the illustrative example, where the mathematical programming model, with activity-based costing (ABC) and Theory of Constraints (TOC) for production planning, is used to achieve the optimal solution under various production and sale constraints in order to find the optimal product-mix maximizing the profit.
Abstract: In recent years, the international community has placed great emphasis on environmental protection issues. The United Nations has also successively enacted relevant laws and regulations to restrain international greenhouse gas emissions and some countries implemented carbon tax levies to reduce air pollution. The tire industry is a manufacturing industry with high pollution and high carbon emissions; therefore, the purpose of this paper is to propose a framework of production planning and control with carbon tax under Industry 4.0 and use the tire industry as the illustrative example. In this framework, the mathematical programming model, with Activity-Based Costing (ABC) and Theory of Constraints (TOC) for production planning, is used to achieve the optimal solution under various production and sale constraints in order to find the optimal product-mix maximizing the profit. On the other hand, Industry 4.0 utilizes new technologies such as 3D printing, robot and automated guided vehicle (AGV) and links all the components in the manufacturing systems by using various sensor systems, Cyber-Physical Systems (CPS) and Internet of Things (IoT) to collect and monitor the activity data of all the components in real-time, to give intelligent responses to various problems that may arise in the factory by the real-time analysis results of cloud computing and big data and to attain the various benefits of Industry 4.0 implementation. The parameters of the mathematical programming model will be updated periodically from the new big data set. In this paper, an illustrative example is used is used to demonstrate the application of the model. From the optimal solution and sensitivity analyses on increasing the raw material’s prices and carbon taxes will affect the profits. This framework can provide a general approach to help companies execute production management in the way of more efficiency, less cost, lower carbon emission and higher quality across the value chain for the tire industry and other industries.
01 Sep 2018
TL;DR: A reference framework where DTs built upon process and system data gathered from the field, allow to quickly assess the sustainability performances of both existing and planned production mixes and to compare achievable impacts with changing processes and technologies is proposed, thus enabling advisory features for sustainability-aware decision making in structured, multi-entity value networks.
Abstract: Digitalization has shown the potential to disrupt industrial value chains by supporting real-time, risk-free and inexpensive inputs to decision making towards enhanced companies’ productivity and value networks flexibility. Developing a reliable and robust digital replica of the physical systems of the value chain is one of the most advanced (and challenging) approaches to digitalization, condensed in the concept of Digital Twin (DT). DT plays a fundamental role in creating a data-rich environment where simulation and optimization procedures can be run. With DT expected to become a commodity in the coming years, simulation and optimization become therefore a more accessible instrument for the improvement of manufacturing and business processes also in small enterprises with limited investment capacity. While scientific literature has analysed the adoption of DT in the optimization of products lifecycle, no contributions have yet focused on the exploitation of DT to improve the sustainability performances of whole value chains. In this paper we propose a reference framework where DTs built upon process and system data gathered from the field, allow to quickly assess the sustainability performances of both existing and planned production mixes and to compare achievable impacts with changing processes and technologies, thus enabling advisory features for sustainability-aware decision making in structured, multi-entity value networks. Internal validation will be deployed referring to real case studies.
TL;DR: In this article, the authors analyzed in-depth case studies from Ghana, Indonesia, Rwanda, and Uganda to better understand a surprising empirical finding: farmers that experience strong PPP results in terms of productivity and incomes may still remain dissatisfied, while those experiencing much more modest gains can view the PPP favorably.
01 Jan 2018
TL;DR: In this article, the authors identified the secondary market entrepreneurs supporting the Airbnb ecosystem and investigated how they impact the sharing accommodation experiences by categorising their services based on the Porter's value chain model.
Abstract: Research in the sharing economy predominately focuses on issues related to the exchange parties and the sharing platforms, ignoring the secondary market of the numerous entrepreneurs emerging around sharing ecosystems. By conducting an exploratory study, this chapter first identified the secondary market entrepreneurs supporting the Airbnb ecosystem and then, it investigated how they impact the sharing accommodation experiences by categorising their services based on the Porter's value chain model. The study also investigated the ability of these entrepreneurs to shape and form new ‘hospitality’ markets by categorising their market forming capabilities according to the “learning with the market” framework. Findings reveal that the services provided by these entrepreneurs: are similar to the accommodation services provided in the commercialised hospitality context; and they influence the market practices of the ‘trading’ actors participating in the Airbnb ecosystem. Consequently, the sub-economies created by the secondary market of these entrepreneurs are shaping and evolving the sharing accommodation market to a commercialised ‘authentic’ hospitality experience.
TL;DR: In this article, the authors present a case study of a haute couture designer who used 3D digital technology in collaboration with a recognized 3D software company for developing his first luxury footwear collection.
Abstract: The purpose of this paper is to show how 3D digital technology can bring value to the fashion industry by analysing the specific benefits it offers along the value chain. Additionally, the authors show some of the challenges ahead identified for both software and fashion firms.,The authors present by means of a case study the experience of an haute couture designer who used 3D digital technology – in collaboration with a recognised 3D software company – for developing his first luxury footwear collection.,The enhancement of creativity and a better communication with suppliers are just some of the benefits identified in the case study from the use of 3D digital technology. In addition, challenges such as the development of a digital culture or the need for technology simplification are drawn from the case.,Apart from the benefits and challenges drawn from the case study, which can be useful to practitioners in this industry, the authors also identify the collaboration through which the experience took place as an interesting practice to implement as a previous step of a digital transformation strategy.,Despite the growing interest the fashion industry is showing in the use of new digital technologies, academic research on this topic is still scarce. Therefore, the case study presented in this paper adds value to the literature showing how 3D technology can help fashion from concept to consumer.
TL;DR: In this paper, a diagnostic study explains how a complex configuration of actor interaction within an institutionally and agro-ecologically challenged value chain leads to the enduring absence of maize farming credit support.
Abstract: Maize production is of critical importance to smallholder farmers in Ghana. Various factors limit the productivity of smallholder maize farming systems undergirded by the lack of capital for critical investments both at the farm and at national policy levels. Using a value chain approach, this diagnostic study explains how a complex configuration of actor interaction within an institutionally and agro-ecologically challenged value chain leads to the enduring absence of maize farming credit support. We find a cycle of credit rationing resulting from value chain challenges such as agro-ecological uncertainties, inadequate GAPs training, weak farmer groups and market insecurity. This condition is sustained by an interplay between mistrust, insufficient information across the value chain and inadequate control strategies in the maize credit system. We argue that Digital Platforms (DPs) show potential to help overcome some information and communication gaps and related uncertainties that impede traditional value chain credit arrangements. This is promising in terms of aiding awareness and coordinated responsiveness to agro-ecological farm conditions and the development of farming records databases. Thus, DPs could generate new networks and forms of cooperation in the maize value chain in this regard. As a tool for mediating trust in value chain credit cooperation, strategic use of these DP contributions could help initiate an entry point for recalibration of trust perceptions. Significant considerations and improvements are however needed to harness DPs effectively in mediating trust for maize credit provision, not least being farmer digital inclusion in DP implementation, effective intermediation and network governance arrangements and digital contributions towards cost-effective agro-ecological controls in the erratic maize farming context. This approach to trust building should therefore not be viewed as a quick fix but as a process of trial and error, and learning by doing.
TL;DR: In this paper, the authors explored the impact of network and managerial capabilities on the performance of entrepreneurial firms in the architecture and real estate sector and showed that network capabilities are more important for creating competitive advantage in entrepreneurial firms than in other firms.
Abstract: Building on the organizational capabilities view, this study explores the impact of network and managerial capabilities on the performance of entrepreneurial firms in the architecture and real estate sector. We apply an extended organizational capabilities model by integrating Porter’s value chain model and Grant’s hierarchy of organizational capabilities. Starting from differences in entrepreneurial orientation between architecture and real estate development firms, we argue that under higher environmental uncertainty, network capabilities are more important for the performance of architecture firms whereas managerial capabilities are more important for the performance of real estate development firms. Employing data from Austria, Germany, and Switzerland, the research results support the hypotheses. This study integrates Porter’s value chain concept and the organizational capabilities model and delivers a contribution to the organizational capability theory. In addition, it contributes to the entrepreneurship literature by showing that network capabilities are more important for creating competitive advantage in entrepreneurial firms than in other firms.
TL;DR: In this paper, the authors analyzed 15 years of news collected from two Brazilian newspapers and concluded that the value chain faces challenges in reaching higher value-in-use creation for all involved actors, including coffee shops, coffee producers, cooperatives, intermediaries, and regulators.
Abstract: Brazil represents approximately 29% of the world’s coffee exports, with 15% of that being “specialty coffee.” Most Brazilian coffee exports are composed of commoditized green beans, influencing the value chain to be grounded on an exchange paradigm. This scenario started to change with the introduction of specialized coffee shops, coffee capsules for home consumption, and demand for a more artisanal product. A paradigm of value creation along the chain drives production processes that aim to differentiate products through superior coffee beans and unique experiences. This study was developed through content analysis of 15 years of news collected from two Brazilian newspapers. Additionally, we interviewed owners of coffee shops, coffee producers, cooperatives, intermediaries, and regulators. We concluded that the value chain faces challenges in reaching higher value-in-use creation for all involved actors.
TL;DR: In this article, the authors conducted an empirical study to assess the inclusion of social sustainability in the decisions of supply chain in multinational manufacturing organizations in India and found that decision making in the supply chain of multinational manufacturing organisations in India specifically in manufacturing industry is incorporating social sustainability.
Abstract: The purpose of the paper is to assess the inclusion of social sustainability in the decisions of supply chain in multinational manufacturing organisations in India. Indian organisations are resorting to sustainability-based reporting for greater transparency and for creation of brand value for their organisations. There are tremendous economic upheavals and changes across the complete value chain, and thus, responsible business practices are becoming a necessity for the long-term survival of organisations. Sustainability, as a strategy, is responsible utilisation of resources and is reported through social, economic and environmental factors in an organisation. For sustainability as a strategy, there has to be a complete organisational inclusion and employee engagement through decision making at operational levels along the value chain. The research paper is an empirical study done through a survey using a structured questionnaire to collect information to evaluate decision criteria particularly for social sustainability, from the middle and top level executives in Indian manufacturing organisations. Multinational manufacturing organisations in India are trying to be more responsible because of mandated CSR policy, and thus, sustainability through social factors is getting more prominence. A multiple linear regression analysis is used to explain the correlation and inclusion of social factors on the decision-making process in the supply chain of multinational manufacturing organisations in India. This study reveals that decision making in the supply chain of multinational manufacturing organisations in India specifically in manufacturing industry is incorporating social sustainability. The study highlights that decision making involving social sustainability needs larger frameworks for organisational preference. While the study provides evidence of social sustainability-based practices in multinational manufacturing organisations in India, it does not deal with social sustainability practices. The study also has limitation as has been limited to organisations which follow sustainability practices and make disclosures through GRI framework.
TL;DR: In this paper, the authors discuss six interdependent factors that inhibit scope 3's ambition of promoting the measurement and management of GHG emissions throughout the value chain, including transaction costs, power, responsibility allocation, uncertainty, location contingency and production costs.