Relationships among supply chain strategies, organizational performance, and technological and market turbulences

The impact of supply chain relationship configurations on supplier performance: investigating buyer–supplier relations in the aerospace industry

Purpose

A supplier may sell not only to one buyer (sole relationship configuration) but also to the buyers competitors (shared relationship configuration) for a specific product category. This study examines the performance implications when suppliers establish shared relationships with the buyer’s competitors.

Design/methodology/approach

Secondary data are used to test hypotheses relating a supplier’s relationship configurations to its operational performance. A seemingly unrelated regression approach (SUR) is applied to analyze the data, followed by endogeneity checks of the empirical findings.

Findings

The study shows that suppliers with less-shared ties with buying firms’ competitors exhibit superior inventory efficiency and asset turnover. Thus, suppliers can improve operational efficiency by creating relatively exclusive, deep and trust-based relations instead of more extensively shared and shallower relationships.

Research limitations/implications

Based on agency theory as a theoretical lens and aerospace industry data, this research contributes by addressing the supplier’s perspective and linking its operational efficiency performance with its chosen supply relationship configuration.

Practical implications

Suppliers need to understand the performance implications of choosing relatively exclusive relationships versus shared relationships with buying firms. The research provides new insights for managers and can guide their supply chain decision-making.

Originality/value

Little is known about how a supplier’s relationship configurations can elevate, or impair, its operational efficiency. While conventional wisdom holds that suppliers should focus on multiple avenues of revenue growth by selling to buyers’ competitors, this study demonstrates that more sales to a buying firm’s rivals might, in fact, reduce a supplier’s efficiency.

Sustainable Supply Chain and Business Performance: The Impact of Strategy, Network Design, Information Systems, and Organizational Structure

Technological advancement and the highly competitive nature of business have forced organizations to use multiple strategies to streamline their business operations. Current research investigates the relationship between sustainable supply chain management (SSCM) and business performance, focusing on operational and financial performance. It provides insights into the operational structure, resource utilization, and the identification of strategic tools needed to strengthen organizational performance. The researchers conducted unstructured interviews with 41 industrialists and analyzed them via open-source coding and deducing reasoning. A questionnaire was developed by analyzing critical scientific literature and unstructured interviews. Empirical responses were taken from 202 industrial corporations. The structural analyses indicate that the effective execution of SSCM significantly improves firms’ operational and financial performance. The findings also provide detailed information about different components of SSCM, namely supply chain strategy (SCS), supply chain network design (SCND), organizational structure, and information system, and explain how it relates to the previous literature review by using a multivariate statistical analysis, followed by structural equation modeling (SEM). The findings of current research highlight the significant role of SSC in accelerating firms’ operational and financial performance and suggest that SSCM should be taken as a secondary strategy and must be integrated with the overall business strategy.

The mediating effect of supply chain flexibility on the relationship between supply chain integration and supply chain performance

Purpose

Supply chain integration (SCI) and flexibility (SCF) are recognised as crucial business practices and capability in the global competitive market. However, limited research has paid attention to study the relationship between SCI, SCF and their impact on supply chain performance (SCP). Therefore, the purpose of this paper is to establish a relationship between integration, flexibility and performance.

Design/methodology/approach

The structural equation modelling technique was used to analyse the 187 data collected from Indian organisations through the survey methodology.

Findings

Findings indicate that external integration contributes significantly to realise SCF and SCP. Sourcing and logistics flexibility also help to improve the SCP. The mediation analysis showed that the association of customer and supplier integration with SCP is partially and fully mediated by logistics flexibility, respectively. This study suggests that integration influences the SCP when the firm has a strong association with downstream partners and enough capability for logistics flexibility.

Research limitations/implications

The study has collected cross-sectional data to analyse the relationship between SCI, SCF and SCP. However, as integration requires an effort of the years, longitudinal data and industry-specific studies may provide comprehensive views to validate the results of this study.

Originality/value

Building on relational view theory and dynamic capability theory, the study has proposed the SCP assessment framework based on the relationship between SCI and SCF.

The Effect of Relational Capital on Organizational Performance in Supply Chain: The Mediating Role of Explicit and Tacit Knowledge Sharing

Relational capital and organizational performance were important factors for achieving sustainable development of the supply chain, and knowledge sharing could create and maintain sustainable competitive advantages of the supply chain. This study examined the comprehensive relationship among relational capital, explicit and tacit knowledge sharing, and organizational performance and the mediating roles of explicit and tacit knowledge sharing between relational capital and organizational performance in the supply chain by using data collected from a questionnaire survey. SPSS, AMOS, and a structural equation model were used to analysis these data and the aforementioned relationships. The results confirmed that relational capital had a positive impact on explicit and tacit knowledge sharing, there was no relation to organizational performance, and explicit and tacit knowledge sharing played mediating roles between relational capital and organizational performance in the supply chain. The research results could provide theoretical guidance for managers to formulate sustainable development strategies that maintain good relationships and economic benefits of enterprises in the supply chain.

The conceptual framework on integrated flexibility: an evolution to data-driven supply chain management

Purpose

This paper aims to establish a relationship between supply chain integration (SCI) and supply chain flexibility (SCF) to develop a two-dimensional approach, i.e. integrated flexibility.

Design/methodology/approach

Building on a relational view and dynamic capability theory, this paper argues that integrated flexibility is the strategy that enables organisations to achieve different positions and states to create distinctive capability. The article has proposed the conceptual framework that connects different supply chain strategies and practices to improve supply chain performance (SCP) considering the cross-disciplinary approach.

Findings

The conceptual framework around the new perspective, i.e. integrated flexibility, is built to deal with issues related to operations management. The paper suggests examining the mediating effect of SCF between SCI and SCP and the moderating role of knowledge management (KM), data analytics (DA) and quality management (QM) practices on their relationship. Moreover, research direction in terms of propositions and implications are developed to showcase how underlying practices streamline the supply chain and lead to superior SCP.

Practical implications

The proposed framework discusses the degree of integration and flexibility levels to guide practitioners in designing a supply chain strategy with their partners and answering how much resources need to be extended to achieve flexible operations and realise SCP.

Originality/value

Authors have developed an entirely new integrated flexibility concept that provides a base to sustain in the competitive market. The foundation of integrated flexibility is built on relational view and dynamic capability theory and supported by DA, QM and KM.

Global Value Chains’ Disaggregation through Supply Chain Collaboration, Market Turbulence, and Performance Outcomes

This research examines supply chain collaboration effects on organizational performance in global value chain (GVC) infrastructure by focusing on GVC disaggregation, market turbulence, inequality, market globalization, product diversity, exploitation, and technological breakthroughs. The research strives to develop a better understanding of global value chains through relational view, behavioral, and contingency theories along with institutional and stakeholder theories of supply chains. Based on conflicting insights from these theories, this research investigates how relationships and operational outcomes of collaboration fare when market turbulence is present. Data is obtained and analyzed from focal firms that are engaged in doing business in emerging markets (e.g., India), and headquartered in the United States. We investigate relational outcomes (e.g., trust, credibility, mutual respect, and relationship commitment) among supply chain partners, and found that these relational outcomes result in better operational outcomes (e.g., profitability, market share increase, revenue generation, etc.). From managerial standpoint, supply chain managers should focus on relational outcomes that can strengthen operational outcomes in GVCs resulting in stronger organizational performance. The research offers valuable insights for theory and practice of global value chains by focusing on the GVC disaggregation through the measurement of market turbulence, playing a key role in the success of collaborative buyer–supplier relationships (with a focus on US companies doing business in India) leading to an overall improved firm performance.

Assessing the objectives of dry ports: main issues, challenges and opportunities in Brazil

Purpose

The purpose is to identify the main characteristics of dry ports (DPs) in Brazil, discussing the role of this logistic player, challenges and opportunities. Furthermore, this study provides a structured framework to drive DP decision-makers, identifying and assessing a network of means–end objectives, which could be replicable to other contexts.

Design/methodology/approach

This article approached initially a literature review and exploratory research to discuss the main characteristics of DPs in Brazil. The second step was to conduct a qualitative analysis following the value-focused thinking (VFT) approach in two case studies in Pernambuco state to assess the achievement of the main objectives.

Findings

This article identified that the main characteristics of DPs in Brazil are offering additional services with a cheaper storage cost, handling mainly import cargo and being connected to seaports through highways. Moreover, this study resulted in a framework to assess the objectives of DPs, which could be replicable in other contexts, improving the current operations of DPs.

Practical implications

The framework to assess DPs' objectives bridged the gap between the literature and the practice working as a tool to drive decision-makers to improve the current performance of DPs in Brazil. Additionally, the main issues, challenges and opportunities discussed provide managers, policymakers and DPs operators with valuable insights into this theme.

Originality/value

This paper is the first study to present a framework to assess the objectives of DPs as a valuable tool to drive decision-makers to improve DPs operations. From this study, lessons could be learned and the process described could be replicable in other countries.

Does technology orientation predict firm performance through firm innovativeness?

Purpose

The purpose of this study is to investigate the impact of technology orientation (TO) on firm performance (FP). This study also aims to identify the mediating role of firm innovativeness (FI) in the relation between TO and FP.

Design/methodology/approach

Quantitative approach has been adopted for analyzing the impact of TO on FP in software houses located in two big cities of Pakistan. Mean, standard deviation, correlation and regression analysis were used.

Findings

Results proved that of TO predicts FP and FI mediate the relationship between TO and FP.

Practical implications

This study used cross-sectional further studies may be conducted using longitudinal research design for achieving in-depth insights.

Social implications

Software houses should focus on TO and innovativeness for improving their performance.

Originality/value

This research guides the way to improve performance TO and innovativeness of software houses based on the empirical results.

Supply chain integration: a review of enablers, dimensions and performance

Purpose

The conceptualization of integration is built on intra- and inter-organizational relationship to manage the entire supply chain. Despite the growing number of research studies, there is a lack of consensus in current literature to define and conceptualize supply chain integration (SCI) and its drivers. The purpose of this paper is to provide comprehensive views on SCI, thereby contributing to existing literature by providing taxonomy to drivers and sources, dimensions and outcome of SCI.

Design/methodology/approach

The systematic approach to literature review has been adopted to carry out this research. The study cites 154 articles, out of which 110 articles have been thoroughly reviewed, covering drivers and sources of SCI, SCI dimensions and SCI outcome.

Findings

For the conceptualization of SCI dimensions, two major themes have been identified: first, internal integration, customer integration and supplier integration; second, information sharing, process coordination and strategic alliance. The authors also found that desire to improve and environmental factors prompt organizations to integrate with their partners to realize the desired outcome. Additionally, the paper identifies that integration plays a significant role in enhancing performance; nevertheless, maturity of integration may have a direct relationship with performance, and the same has been suggested as propositions for further study.

Research limitations/implications

This paper has taken the systematic perspective to review existing studies and projected propositions, which is entirely based on collective views that may require empirical support.

Originality/value

The paper is a unique contribution that reviews the research articles on SCI systematically. The paper also provides a distinct perspective and food for thought to practitioners, as the proposed framework may serve as a reference point to assess current SCI practices in the organizations.

The effect of service quality, innovation towards competitive advantages and sustainable economic growth

Purpose

The purpose of this paper is to determine the effect of service quality and innovation on competitive advantage and sustainable local economy, with marketing mix strategy as the mediating variable (Study in small and medium enterprise (MSME) in Java and Sumatera).

Design/methodology/approach

The study population of this paper is the MSME in Sumatera and Java Islands in Indonesia, as the highest population in Indonesia in 2010–2016 (portion of MSME in Indonesia: Java 58.29 percent and Sumatera 22.22 percent, or total 80.51 percent), and total 16 province in Indonesia: Aceh, Sumatera Utara, Riau, Sumatera Barat, Jambi, Sumatera Selatan, Bengkulu, Lampung, Kep Riau, Kep Bangka Belitung (Sumatera Island), and Banten, DKI Jakarta, Jawa Barat, Jawa Tengah, Jawa Timur, DI Yogyakarta (Java Island). The analysis used in this study is a quantitative approach, namely, structural equation modeling based on variance, also known as the WarpPLS method.

Findings

The findings of this study are as follows: first, service quality has an influence on marketing mix strategies, meaning the application of service quality according to customer needs will create satisfaction. In other words, the better the quality of service provided, the higher the customer satisfaction will be. Second, the quality of service has a direct influence on creating a sustainable local economy, meaning that improving service quality to understand customer needs can enhance sustainable economic growth and competitive advantage through marketing mix strategies. This means that improving service quality in accordance with customer needs will improve the marketing mix strategy leading to a sustainable local economy. Third, the marketing mix strategy has a positive influence on the sustainable local economy, meaning that the higher the marketing mix strategy, the better the strategy for sustainable economic growth and competitive advantage will be.

Originality/value

The effect of marketing mix strategy as mediation (using the Sobel test) on the influence of service quality and product innovation on sustainable local economy and competitive advantage is shown in this study. No previous research studies this relationship at the research location: MSME in Indonesia, especially in Java and Sumatra Islands. Hence, this is one of few studies comprehensively evaluating the effect of service quality and innovation, toward competitive advantages and local sustainable economic: marketing mix strategy as mediating variable (study in MSME in Java and Sumatera).

Achieving supply chain excellence through supplier management

Purpose

The purpose of this paper is to develop a supplier selection and management program to improve overall supplier performance.

Design/methodology/approach

Supplier performance is measured in terms of quality and delivery within a fast moving consumer goods (FMCG) business of a multinational company based in Thailand using a case study methodology. The quality and delivery related data were collected from daily deliveries at the manufacturing plant both before and after implementing the supplier management program.

Findings

Findings of the study suggest that the selection of suppliers based on their performance is important for manufacturing firms. Moreover, the supplier selection and management program can contribute effectively to improving suppliers’ performance.

Research limitations/implications

This case study has been conducted based on a single company within the FMCG industry. Hence, it limits the generalizability of the findings across industries.

Practical implications

The study provides a real-life tool for practitioners to learn about the importance of strategic decision-making process pertaining to the supplier selection and management program.

Social implications

This study demonstrates that through a transparent supplier evaluation process, the firms can develop trust and long-term relationship with their suppliers for pursuing the goals of product development and innovation.

Originality/value

Implementing a supplier management system is a critical step in enhancing an organization’s overall competitiveness. To develop an effective supplier management system firms must have objective measures and share those with their suppliers. Developing metrics for suppliers’ evaluation is the key to achieving continuous improvement as evidenced in this case.

The influence of the Digital Divide on Big Data generation within supply chain management

Purpose

The purpose of this paper is to examine the influence of the Digital Divide (DD) and digital alphabetization (DA) on the Big Data (BD) generation process, to gain insight into how BD could become a useful tool in the decision-making process of supply chain management (SCM). Similarly, the paper aims to recognize and understand, from a value-creation perspective, the correlation between DD and BD generation and between DD and SCM.

Design/methodology/approach

The approach utilized in the present study consists of two steps: first, a systematic literature review was conducted aiming at finding out to determine the existing relationship between “Big Data Analytics” (BDA), “SCM” and the “DD”. A total of 595 articles were considered, and analysis showed a clear relationship among BDA, SCM, and DD. Next, the Vector autoregressive (VAR) approach was applied in a case study to prove the correlation between DD (as part of internet usage) and internet acquisitions, and in general terms the relationship between DD and Trade. Internet usage and internet acquisition in imports and exports at the European level were considered as variables in an empirical study of European trade. The novelty of this two-tiered approach consists in its application of a systematic literature review, the first of its kind, to generate inputs for the longitudinal case study of imports and exports at the EU level. In turn, the case study tested the accuracy of the theorized relationship among the main variables.

Findings

By analyzing the connection between DD and internet acquisitions, a positive and long-lasting impulse response function was revealed, followed by an ascending trend. This suggests that a self-multiplying effect is being generated, and it is reasonable to assume that the more individuals use the internet, the more electronic acquisitions occur. We can thus reasonably conclude that the improvement of the BD and SCM process is strongly dependent on the quality of the human factor. Tackling DA is the new reading key in the decision-making process: quantifying the added value of the human factor in SCM is challenging and is an ongoing process, based on the opportunity cost between automation in decision-making or relying on the complexity of human factors.

Research limitations/implications

One of the biggest limits in our research is the lack of the time series available on consumer orientations and preferences. Data on the typology of customer preferences, and how they are shaped, modified, or altered, were non-accessible, though big companies may have access to this data. The present longitudinal study on European trade helps clarify how and to what extent BDA, SCM, and DD are inter-related. The modeling of the theoretical framework likewise highlights several identifiable benefits for companies of adopting BDA in their business processes.

Practical implications

Understanding the obstacles to DD in trade companies and states, and identifying their influence on firm performance, serves to orient the decision-making process in SCM toward reducing DD to generate important economic benefits. Enhancing internet usage may accelerate longer-term investments in human resources, offering developing countries unprecedented opportunities to enhance their educational systems and to improve their economic policies, widening the range of opportunities for businesses and poor states.

Social implications

BD generation will undeniably influence microeconomic decisions: they will become evaluation tools of more efficient economic progress in small and/or large economies. However, an economically efficient society will be achievable only in those countries in which qualified human resources can generate and manage BD, to unlock its potential. This twofold effect will surely affect the socio-economic and geopolitical situation. The economic progress of conventional countries may vacillate if it is not adequately flanked by qualified human resources able to progress the information and communication technology (ICT) prevalent in contemporary economies. Consequently, the social impact of investments in ICT capacity building will necessarily affect future socio-economic scenarios. New indicators will become necessary to measure the conventional progress, and one of them will surely be DD.

Originality/value

The novelty of the present study is twofold: first, it is the first meticulous meta-analysis developed using a very wide analysis of the published literature to highlight a previously hidden relationship among DD, BD, and SCM. This comparative approach made it possible to build a theoretical framework for the real evaluation of the impact of BDA on different organizational elements, including SCM. Second, the research emphasizes the need to reform and reshape the studies on BDA, convincing companies that it is necessary to understand that the obstacles (DD and DA, i.e. internet usage) must be addressed with conscious decision-making processes, strategically and resolutely, to transform points of weakness into opportunities.

A comparative assessment of win-win and win-lose negotiation strategy use on supply chain relational outcomes

Purpose

The purpose of this paper is to study the relational impact of using win-win or win-lose negotiation strategies within different types of buyer-supplier relationships.

Design/methodology/approach

A multi-method approach is used. Qualitative interviews with supply chain managers reveal that relationship-specific assets and cooperation are important relational factors in buyer-supplier negotiations. Framing interview insights within the social exchange theory (SET), hypotheses are tested using a scenario-based behavioral experiment.

Findings

Experimental results suggest that win-lose negotiators decrease their negotiating partner’s commitment of relationship-specific assets and levels of cooperation. In addition, the use of a win-lose negotiation strategy reduces levels of relationship-specific assets and cooperation more in highly interdependent buyer-supplier relationships than relationships that are not as close.

Research limitations/implications

Buyer-supplier relationships are complex interactions. Negotiation strategy choice decisions can have long-term effects on the overall relationship. As demonstrated in this study, previous research focusing on one side “winning” a negotiation as a measure of success has oversimplified this complex phenomenon.

Practical implications

The use of a win-lose negotiation strategy can have a negative impact on relational outcomes like cooperation and relationship-specific assets. For companies interested in developing strong supply chain relationships, buyer and suppliers should choose their negotiation strategy carefully as the relational impact extends beyond the single negotiation encounter.

Originality/value

Previous research predominantly advocates for the use of a win-win negotiation strategy within interdependent relationships. This research offers evidence that the use of a win-lose strategy does have a long-term relational impact.

To examine the relationships between supplier development practices and supplier-buyer relationship practices from the supplier’s perspective

Purpose

The purpose of this paper is to examine the relationships between supplier development practices (SDPs) and supplier-buyer relationship practices from the supplier’s perspective (SBRSP), and seek to understand how specific SDPs may impact a buyer’s operational performance as well as supplier-buyer relationship practices.

Design/methodology/approach

The authors conducted a survey of 512 respondents from the different manufacturing firms in India and applied structural equation modelling to test a structural model that proposes the impacts of various efforts of SDPs on a buyer’s performance as well as SBRSP.

Findings

The study concludes that SDPs and SBRSP together improve the relationship between a buyer and supplier, and this improved relationship leads to competitive advantages (CAs) followed by profitability. Results indicate that supplier perspective of buyer-supplier relationship can be improved under the condition of SDPs and SBRSP together. SDPs are driven by productive measure and competitive pressure, whereas customer uncertainty is found to be statistically insignificant.

Research limitations/implications

The study was carried out in North Maharashtra Industrial Zone of India, where the auto sector and machine/components manufacturing firms have been established for a considerable period of time. Results of the study are limited to manufacturing organizations predominantly focussing on the automobile sector and machine/components manufacturing firms.

Practical implications

This study provides significant insights into the specific impact of various SDPs and SBRSP for both academics and practitioners. SDPs along with SBRSP practices lead to improvement in the relationship leading to CAs. SBRSP suggests that trust, long-term commitments and the supplier’s perspective are important practices for relationship improvement.

Originality/value

The current study attempts to identify what are the success factors for the supplier-buyer relationship from the supplier’s perspective and SDPs and how the supplier-buyer relationship can be improved under the condition of SDPs and SBRSP. Hence, the aim is to develop a more thorough understanding of the outcomes of a supplier-buyer relationship improvement from both buyer’s and supplier’s perspective, under the conditions of supplier development to achieve CAs leading to profitability. Furthermore, the study analyses the effect of the improved supplier-buyer relationship for achieving CAs leading to profitability.