Research opportunities in purchasing and supply management

Purchasing and supply management (PSM) are crucial for the effective and efficient operation of manufacturing firms, now more than ever. The PSM function has evolved from being routine and mechanical to a function that can deliver true competitive advantage. The trend toward increased globalisation and outsourcing, along with a focus on innovation- and capability-driven supply management, has led to an increased reliance on suppliers. This has significantly enhanced the importance of PSM for manufacturing companies. The heightened significance in practice has been paralleled by an increasing attention of researchers in developing theories and chronicling best practices. At the same time, the rapid rate of change represents both daunting challenges and exciting opportunities for research in PSM. It is the goal of this article to highlight such challenges and discuss ensuing opportunities in PSM research. This objective is accomplished via the nominal group technique involving a panel of leading scholars in the purchasing and supply management field. As such, the article presents a synthesis and discussion of important research themes, poses a set of intriguing research opportunities, and serves as a motivation for future investigation.     

Social and environmental risk management in resilient supply chains: A periodical study by the Grey-Verhulst model

As sustainability and allied concerns are at present gaining greater than before attention amongst stakeholders, enterprises are enforced to consider social and environmental risk assessments along with conventional economic risk assessments. Hence to advance sustainable competitive advantages, the property of resilience is becoming a success factor for enterprises. Resilience is the property of enterprises or their supply chains to resume operations after disruptions and to regain its sustainable competitive advantages quickly and effectively. This study essentially focuses on identifying drivers of social and environmental risk management (SERM) in resilient supply chains and to acknowledge the importance of these drivers towards the implementation of SERM practices of enterprises. Representative case studies of three electronics manufacturing firms were also considered in this research to gain practical insights. Periodical data analysis has been piloted for the collected datasets from these companies. Since the sequences of the collected data show saturated sigmoidal tendencies, the Verhulst model fits best with the data sequences. A Grey-Verhulst model has been implemented in this research and was practically tested for case firms to exemplify the data sequences of prediction and to effectually improve the SERM performances of firms.     

The significance of organizational change management for sustainable competitiveness in manufacturing: exploring the firm archetypes

The successful development and deployment of adequate sustainable manufacturing strategies are still open issues and of utmost interest for research and practice. Guided by this particular challenge, we investigate the significance of organisational change management for sustainable competitiveness in manufacturing. By using six case studies from the Lombardia region in Italy and basing our research on the theoretical constructs of competitive aggressiveness and organisational change, we discover four archetypes of companies that show an increasing sustainable competitiveness with an increasing formalism and persistence in organisational change. Our findings suggest that change management practices are conditional hypothesis for creating competitive advantage through sustainability, and implementation gaps do hinder companies in realising the full potential. The study offers guidance to stakeholders, on how change management actions may potentially affect company performance in the manufacturing sector, as well as providing direction on the impact improved planning and leadership instances can have on the sustainability performance.     

Innovative knowledge sharing,supply chain integration and firm performance of Australian manufacturing firms

A number of reports show that innovation in Australian manufacturing firms is declining. We propose that better knowledge sharing practices can assist these firms to become more innovative. In this paper, we examine this proposition by empirically testing the relationship between knowledge sharing practices within and between trading partners as a framework for integration, and testing for the effect of these practices on firm performance. Data were collected from 418 organisations in the manufacturing industry in Australia to assess the degree to which innovative knowledge sharing practices provide a competitive advantage to Australian firms. Structural equation modelling approach to data analysis was used. It was found that the three innovative knowledge sharing constructs (internal knowledge integration, knowledge integration with customers and knowledge integration with suppliers) were strongly inter-related, providing a case for knowledge-based integration of firms with their trading partners. Further, these three exogenous constructs collectively explained about a third of the variance in the endogenous construct (firm performance). The relationships identified provide support for the efficacy of knowledge-based collaboration as an innovation promoting higher firm performance levels. Managers of manufacturing firms in Australia specifically, and others more generally, can use this as a way to conceptualise how their firms can develop internal integration and collaborative relationships with their trading partners.     

Examining the effects of green supply chain management practices and their mediations on performance improvements

Environmental pressures have caused green supply chain management (GSCM) to emerge as an important corporate environmental strategy for manufacturing enterprises. For manufacturers to fully realise the performance potentials of GSCM, they need to integrate internal GSCM practices emphasising functional coordination with external GSCM practices such as cooperation with suppliers and customers in the implementation. Using coordination theory, this article examines three models used to evaluate the mediation relationships between the external and internal practices of GSCM with respect to environmental, economic, and operational performance. We posit that the strategic stance of manufacturing enterprises in improving their overall performance and competitive position requires a joint coordination of internal and external GSCM practices. Survey data collected from 396 Chinese manufacturing enterprises are used to validate our arguments by testing the mediation effects of two categories of GSCM practices. Our empirical results show support for the mediation effects, which indicates the importance for manufacturers to coordinate between the internal and external aspects of implementing GSCM practices to reap the performance benefits. Coordinating internal and external GSCM practices to seek performance improvements is an important aspect of the manufacturing operations strategy. The dynamics of implementing GSCM practices and the performance contingencies are worthwhile topics to pursue in future research.     

A comparative study of lean and agile manufacturing with a related survey of current practices in the UK

In response to changing success factors and environmental pressures, companies are aspiring to break out of mass production and become lean or agile. Whereas performance enhancements of lean practices have been demonstrated, it is now the case that markets have become increasingly characterized by turbulence, a situation in which reliance on lean practices is insufficient, and that survival requires adoption of agile practices. As a result, a comparative study of lean and agile manufacturing with a related survey of current practices in the UK was carried out, the results of which is presented in this paper. The paper explored the threats to lean and the drivers of agile manufacturing. Using data from a questionnaire survey, four hypotheses were tested, which was indicative of the benefits of agile manufacturing. In contrast to their lean counterparts, agile companies paid attention to a wider range of competitive capabilities. They therefore had a lower range of mean scores on competitive capabilities. Independent sample tests of significant difference in business performance measures revealed that the agile companies consistently outperformed their lean competitors on all business performance measures studied. In addition, a wider range of competitive capabilities and performance measures of the agile companies correlated significantly and positively whilst such correlation was observed for only a narrow range of capabilities and performance measures for lean companies. The results suggest that competing simultaneously on multiple competitive capabilities enhance performance better than a rather narrow focus on cost and quality.     

The impact of market focus on operations practices

A key element of successful organisations is the alignment of their strategy and tactics. This study explores the relationship between a firm's competitive strategy and its operations practices in the context of a developing economy. Two competitive strategies are examined; a niche market strategy characterised by targeting specific market segments, and a broad market strategy characterised by serving a wide range of market segments. Three sets of operations practices consistent with the adoption of lean manufacturing, Total Quality Management, and relationship development in a supply chain context, are explored. Using survey data from senior managers in Thailand, results show that for firms adopting a niche market focus, competitive strategy directly influences process management and relationship development, which in turn affect workforce commitment. Only workforce commitment has a direct effect on operational performance. In contrast, for firms adopting a broad market focus, competitive strategy directly influences workforce commitment, which in turn affects process management and relationship development practices. It is the latter practices that directly influence operational performance.     

Sustainable supply chain management in Indian organisations: an empirical investigation

The present work is an attempt to investigate the adoption of sustainable supply chain management (SSCM) practices amongst manufacturing and process based organisations in India and its impact on organisational performance encompassing all three dimensions of sustainability. SSCM practices conceived in the present study include environmental management practices (EMP), socially inclusive practices for employees (SPE), socially inclusive practices for community (SPC), operations practices (OP) and supply chain integration (SCI) which were treated as exogenous variables. Organisational performance considered in this study includes five dimensions, namely environmental performance (EPR), employee-centred social performance (ESP), community-centred social performance (CSP), operations performance (OPR) and competitiveness, which were regarded as endogenous variables. The analysis was carried out with the help of structural equation modelling considering natural logarithm of manpower as a control variable. Few major findings are mentioned. EMP does not have any significant association with OPR, nor does it result in competitiveness. However, when jointly mediated through both EPR and OPR, EMP leads to competitiveness. SPC has significant negative association with competitiveness, when only direct relationship is considered. However, indirect relationship between SPC and competitiveness shows significant positive association when mediated through CSP. The resultant total effect between SPC and competitiveness turns out to be insignificant. Further, OPR fully mediates the relationship between OP and competitiveness. Managerial implications of the findings are discussed.     

Developing environmental and social performance: the role of suppliers’ sustainability and buyer–supplier trust

We explore how environmental and social performance of manufacturing firms can be improved as sustainable supply chain management (SSCM) develops and evolves within a firm from internal to external practices. Importantly, this study considers how key suppliers’ sustainability performance and buyer–supplier trust mediate and moderate such a development. A conceptual framework is developed which relies on resource-based theories and emerging empirical evidence. Then, partial least square methodology is applied on survey data from a sample of Italian manufacturing firms. Results show that manufacturing firms’ sustainability performance improves as SSCM develops; however, while internal practices have a direct impact on performance, the effect of external practices on a manufacturing firm’s sustainability performance is fully mediated by key suppliers’ sustainability performance. Yet, buyer–supplier trust significantly influences the scope of such gains. Since evidence suggests that manufacturing firms are still struggling with how to leverage supply chain innovation potential for sustainable development, this study provides a timely and valuable contribution.     

Implementing visual management for continuous improvement: barriers,success factors and best practices

Visual management (VM) has become an important lean management practice for continuous improvement and has gained increasing attention from academics and practitioners. While operations management scholars have studied its benefits and functions, the factors that enable or hinder VM implementation have not been systematically investigated. Against this background, our study analyses qualitative case study data from Swiss manufacturing firms to reveal important barriers and success factors that are relevant for the implementation of VM. Moreover, for each success factor, we present several best practices observed in the case companies to overcome the associated barriers. The results contribute to the emerging field of VM within the lean management literature and provide insights for practitioners how to implement VM more effectively.     

Structural and infrastructural practices as elements of content operations strategy. The effect on a firm's competitiveness

Some extant theoretical studies and different empirical results have demonstrated that a firm's behaviour explains several notable competitiveness microeconomic foundations, based on a wide bundle of elements. Firms can directly control most of these elements; in this paper, we will focus on those related to operations management. Therefore, products, processes, technology, equipments or quality control systems will centre our attention. These, and some additional elements, constitute decisions within the operations management area that must be included in the content of operations strategy. Operations strategy can be conceptualized as a set of decisions or practices with regard to structure and infrastructure variables. On the one hand, these strategic decisions influence a firm's abilities successfully to reach some competitive priorities such as cost, quality, delivery and flexibility, and, on the other hand, to obtain the expected performance. This research analyzes which are the main structural and infrastructural practices that constitute operations strategies in manufacturing companies, and investigates the effect of these decisions on some firm competitiveness indicators.     

Management practices of Australian manufacturing firms: why are some firms more innovative?

Whilst many studies have focused on the adoption of individual or sets of innovative management practices (e.g. lean production), fewer studies have evaluated a diverse set of management practices and firm contextual factors which may limit (or enable) the accumulation of groups of innovations in organisations. The Australian manufacturing sector is a novel setting to investigate such issues due to, among other reasons, a protracted decline of the competitive position of the sector. In this paper, we use a data-set from the Australian government funded management practices benchmarking project which was part of the World Management Survey and empirically evaluate why some companies have more innovative management practices than others. The conceptual model developed draws mainly on innovation diffusion theory and prior empirical findings. We find that (1) firms which adopt clusters of better management practices have greater performance; and (2) several firm characteristics explain the adoption of better management practices, such as education level of employees and managers, firm size, ownership by a multinational firm, and diffused ownership structure. The study has practical implications for policy-makers and stakeholders who are interested in supporting the adoption of better management practices by firms to enhance productivity in the manufacturing sector.     

Quality management practices and operational performance: Empirical evidence for Spanish industry

Progressive implantation of the ideas and techniques related to the concept of quality management is perhaps the most patent expression of the change and innovation which has taken place in organizations in recent years. Companies aim to increase their competitive advantage by improving operational performance. Or is this the case? The research is based on information obtained from a wide sample of industrial plants ( n = 965), employing more than 50 workers and belonging to all sectors of the manufacturing industry in Spain. After a thorough review of the literature relevant to this issue, a series of hypotheses is tested using logit models. Multiple regression analysis is applied in order to ascertain which dimension of the quality management practices has the greatest effect. The results are consistent with those of most of the studies carried out to date and demonstrate a significant relationship between the level of implementation of quality management practices and improvement in operational performance in terms of cost, quality and flexibility. Quality management practices related to product design and development, together with human resource practices, are the most significant predictors of operational performance.     

The use of best design practices: An analysis of US navy contractors

Rapid and successful introduction of new products is a potentially significant source of competitive advantage for manufacturing firms. Organizations need to identify and manage those critical elements of the product development process (PDP) that have a positive influence on new product success. This research identifies the distinctive product development and design practices, policies and tools currently followed by companies (Navy contractors) that participated in an empirical research study known as the Best Manufacturing Practices Program. A summary of practices reported in the case studies is compiled using content analysis techniques, and the most interesting practices by individual companies are highlighted. We find numerous examples of sophisticated CAD techniques being used to enhance the development process, including expert system design advisers, computer simulation, and design databases. Companies are emphasizing the design policies of concurrent engineering and teamwork, and documenting design process knowledge into design manuals. Company effort still appear focused primarily on the phase of detailed design rather than the concept selection phase.     

Lean practices implementation and their relationships with operational responsiveness and company performance: an Italian study

Although many firms report large benefits from lean implementation, a lot of scepticism still remains regarding attainable results and the possibility to apply Lean approach outside high-volume manufacturing and stable context. In this work, combining field interviews with literature review, theoretical connections have been developed among Lean manufacturing techniques, operational responsiveness and company growth performances. A conceptual model has been proposed for investigating the network of influences among lean practices (supplier management, human resource management, just-in-time and total quality management practices), operational responsiveness (Product mix variety, Product innovation and Time effectiveness) and company growth performances in Italian companies. Using structural equation modelling, a second-order confirmatory factor analysis has been used to test the hypothesised relationships in the structural models. This study highlights that the operational responsiveness is only partially connected to a Lean strategy of a company. Indeed, the lean practices implementations are negatively influenced by product mix variety and innovation, while positively influenced by time effectiveness variables. Moreover, product mix variety and time effectiveness are the main characteristics of the operational responsiveness that positively influences company growth performances. So time effectiveness could be considered as a mediator between Lean best practices and firm growth. Moreover, no direct relationship has been found between lean bundles and firm’s performances. Lack of resources and mainly poor communication and managers’ commitment and support seem to be the main obstacles of lean implementation and success.     

Empirical relationships between some manufacturing practices and performance

Intense global competition, rapid technological changes, advances in manufacturing and information technology and discerning customers are forcing manufacturers to adopt manufacturing practices and competitive priorities that enable them to deliver high quality products in a short period of time. Identifying manufacturers’ competitive priorities and effective manufacturing practices has long been considered one of the key elements in manufacturing strategy research. This paper presents the results of a study conducted to identify some of the effective manufacturing practices that have a significant influence on manufacturing performance. This study also identifies the main competitive objectives of manufacturing industries that participated in the study. The results reported in this paper are based on data collected from a survey using a standard questionnaire administered to 1000 manufacturers in Australia. Evidence indicates that product quality and reliability are the main competitive factors for manufacturers and price has become surprisingly a relatively less important factor. Results show that simultaneous pursuit of advanced quality practices can neutralize the potential negative impacts of manufacturing difficulties and significantly improve product quality and manufacturing performance. Failure mode and effect analysis (FMEA) is shown to be an important tool for improving product quality and on time delivery performance. FMEA practice driven by the intention to improve customer satisfaction is more effective than that practised to fulfil customer requirements. Effective supplier relationships are shown to contribute positively to the manufacturing performance. The results also suggest that maintaining a supplier rating system and product data management and regularly updating them with field failure and warranty data are important manufacturing practices.     

How supply quality management improves an organization's quality performance: a study of Chinese manufacturing firms

Because of unfavourable economic conditions, organizations worldwide have to constantly reconstruct their business strategies in order to survive. Recent studies have stressed the importance of supply quality management (SQM) for the general competitiveness of manufacturers. However, very little empirical research has been carried out that specifically examines how SQM practices lead to improvements in quality across an organization. To scrutinise the impact of SQM practices, a survey was conducted of 138 leading manufacturing companies in the Pearl River Delta (PRD), a manufacturing hub in southern China dubbed ‘the factory floor of the world’. By using path analytic techniques, a model was constructed to portray the relationships among SQM practices and organizational quality performance. This model could act as a tool of reference for companies seeking to improve their SQM systems, and help them in their efforts to raise quality across the company. This paper demonstrates that quality-conscious management practices speed up the implementation of SQM practices. This paper finally reveals the influential effect of SQM practices on both supply quality and organizational quality performance.     

Establishment of critical success factors for implementation of product lifecycle management systems

The present study has been undertaken with the purpose of investigating the critical success factors for the implementation of product lifecycle management (PLM) systems in manufacturing companies. Two exploratory case-based studies were conducted followed by a generalised study to establish the critical success factors for PLM systems’ implementation in manufacturing firms. Hybrid multi-criteria decision-making methods were employed to identify the causal factors and prioritise them for the implementation of PLM systems in an automotive and aerospace firm. The priority of the factors has also been confirmed by executives from broader PLM domain through a confirmatory t-test. The identified critical success factors can be utilised as directive guidelines by manufacturing organisations for the successful implementation of PLM systems. Most researchers have studied only the technological aspects of PLM, while very few have discussed the success factors to PLM implementation. The present study is highlighting PLM as a management concept, supporting PLM systems implementation in organisations, and discussing the critical success factors for effective PLM systems implementation.     

Proposition of a model for measuring adherence to lean practices: applied to Turkish automotive part suppliers

The objective of this study is to develop a model for measuring adherence to lean practices for automotive part suppliers and to assess the relationship between the firm performance and the adoption of lean principles. This model has been developed by utilising the lean practices defined in the literature. The proposed model has been successfully applied to a large number of automotive part suppliers, and has been tested for its statistical validity. To test the proposed model, data were obtained from 207 automotive part suppliers by using the Computer-aided Telephone Interview method. Validity and reliability tests of the developed model of leanness are realised through exploratory and confirmatory factor analyses. Correlation analyses are used to examine the relationships between the lean applications and company performance and size. Analysis of Variance (ANOVA) is applied to reveal whether there are differences in the use of lean techniques across different company categories. The study shows that, in general, Turkish automotive part suppliers are performing their internal production in compliance with the lean manufacturing principles. Furthermore, it is found that there is a significant relationship between adaptation of lean principles by the supplier firms and their performance. The proposed model of leanness can be used by companies in the automotive industry to measure their leanness levels.     

A study of the quality management methods employed by U.K. automotive suppliers

This paper reports on the results of a postal questionnaire survey of quality management methods, awareness and attitudes of suppliers to three major companies in the U.K. automotive industry. The main issues discussed include the quality management systems operated by suppliers, the methods by which quality improvement is pursued, quality-related training, and suppliers' interaction with both their own customers and vendors. The findings to specific questions were disappointing and illustrate the poor state of quality management development in some suppliers; overall the survey evidence indicates that many suppliers have a traditional attitude towards quality management. For example: it is possible to inspect quality into a product; component quality can be graded at different levels according to individual customer requirements; if the customer does not return the product then quality must be satisfactory; the quality manager is responsible for the quality improvement programme. Quality management tools and techniques are often seen as an end in themselves rather than a means to an end, that of improvement. It is clear that a number of suppliers assume that introducing statistical process control is the same as developing a total approach to quality management. There also appears to be a dilution of the quality message as requirements are passed down the supply chain, and in general communication and feedback between customer and supplier is poor.