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.     

Antecedents and enablers of supply chain agility and its effect on performance: a dynamic capabilities perspective

This paper investigates the fundamental building blocks of supply chain agility, which are conceptualised as supply- and demand-side competence. While the former refers to production and supply management related activities, the latter refers to distribution and demand management related activities. The model further assesses the influence of supply chain agility on operational performance, as well as its mediating role in the relationship between supply- and demand-side competence and performance. Within this framework, process compliance, i.e. how well supply chain management processes are internally executed by the firm's employees, is viewed as an enabler (moderator) on the relationship between supply chain competencies and supply chain agility. Theoretical substantiation is provided by the resource-based view of the firm augmented with the dynamic capabilities perspective. The model is tested with data from 121 supply chain management professionals. Implications for both academic theory development and supply chain and production management practice are provided.     

An intelligent physarum solver for supply chain network design under profit maximization and oligopolistic competition

We propose an efficient bio-inspired algorithm for design of optimal supply chain networks in a competitive oligopoly markets. The firms compete in manufacture, storage and distribution of a product to several markets. Each firm aims at maximisation of its own profit by optimising the design capacity and product flow in the supply chain. We model the supply chain network as a multi-layer graph of manufacturing nodes, distribution nodes and storage centres. To optimise the network, we adopt the mechanisms of a foraging behaviour of slime mould Physarum polycephalym. First, we extend the original Physarum model to deal with networks with multiple sources and sinks. Second, we develop a novel method to solve the user equilibrium (UE) problem by exploiting the adaptivity of the Physarum model: we update the link costs according to the product flow. Third, we refer to an equivalent transformation between system optimum problem and UE problem to determine the optimal product flows and design capacities of a supply chain. At last, we present an approach to update the amount of product supplied by each firm. By comparing our solutions with that in Nagurney (2010b) on several numerical examples, we demonstrate the efficiency and practicality of the proposed method.     

The performance impact of supply chain agility and supply chain adaptability: the moderating effect of product complexity

Even though research has suggested that supply chain agility and supply chain adaptability are distinct capabilities, little is known about their performance effects and about the contextual conditions under which they are effective. Based on a sample of 143 German firms, we empirically investigate the effects of supply chain agility and supply chain adaptability on cost performance and operational performance using hierarchical regression analysis. We ground our investigation in the dynamic capabilities view and contingency theory. We find that supply chain agility and supply chain adaptability positively affect both cost performance and operational performance. We further find evidence for a mediating role of supply chain agility in the links between supply chain adaptability and performance. Product complexity positively moderates the links between supply chain adaptability and cost performance, and supply chain adaptability and operational performance. The results contribute to the literature by offering a more nuanced understanding of the performance implications of supply chain agility and supply chain adaptability, thereby addressing the crucial question of why their benefits may or may not materialise under varying levels of product complexity.     

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.     

The impact of sales and operations planning practices on manufacturing operational performance

There is a lack of rigorous empirical studies directly examining the impact of sales and operations planning (S&OP) practices on manufacturing operational performance. This paper aims to fill this gap by analysing a sample of 725 manufacturers from 34 countries. Hypotheses relate internal S&OP, integration with suppliers (IS) and integration with customers with manufacturing operational performance (delivery, quality and flexibility). The constructs were validated with structural equation modelling and the hypotheses were tested using multiple stepwise regression. Our findings showed a positive and moderate-to-large effect of internal S&OP on manufacturing performance, controlling for firm size, country economic development and market dynamics. There was no significant impact of supply chain integration on manufacturing performance. However, we found that IS positively moderated the relationship between internal S&OP and performance, suggesting that firms with mature IS amplify the effect of internal S&OP on performance. The study is among the first to empirically and rigorously establish the impacts of S&OP practices on manufacturing performance, using a large sample of manufacturers spanning different countries, markets and firm sizes. Results show that S&OP practices have a broad impact across several performance dimensions and are a powerful lever for generating manufacturing performance.     

Agile supply chain strategy and supply chain performance: complementary roles of supply chain practices and information systems capability for agility

The paper examines the mediating effect of supply chain (SC) practices on the relationship between agile supply chain (ASC) strategy and SC performance. It further examines the moderating effect of information systems (IS) capability for agility on this mediated relationship. Using the theoretical lenses of complementarity and the information processing view of the supply chain, we hypothesise that strategic supplier partnership, customer relationship, postponement and lean practices, mediate the relationship between ASC strategy and SC performance. We further hypothesise that IS capability for agility moderates each of these mediated relationships. We empirically test the hypotheses using survey data from members of senior and executive management in the logistics/supply chain functions of 205 firms. The paper contributes to the literature on ASCs by theoretically explaining and empirically demonstrating how SC practices and IS capability for agility act together to effect a positive relationship between ASC strategy and supply chain performance.     

The use of manufacturing technologies–an external influence perspective

Given the generally positive relationship between technology utilisation and performance, why do some plants use installed technologies to a lesser extent than others? Literature suggests that the extent of use of technology, as a decision of choice, is influenced by a variety of factors. Organisational and individual influences include process type, plant size, perceived usefulness of the technology, and user demographics (Zhang, P., Aikman, S.N., and Heshan, S., 2008, Two types of attitudes in ICT acceptance and use. International Journal of Human–Computer Interaction, 24 (7), 628–648; Swamidass, P.M. and Kotha, S., 1998, Explaining manufacturing technology use, firm size and performance using a multidimensional view of technology. Journal of Operations Management, 17 (1), 23–37; Davis, F., Bagozzi, R., and Warshaw, P., 1989, User acceptance of computer technology: a comparison of two theoretical models. Management Science, 35 (8), 982–1003). External factors such as customer mandates and firm nationality have also been found to affect technology use (White, A., Johnson, M., and Wilson, H., 2008, RFID in the supply chain: lessons from European early adopters. International Journal of Physical Distribution and Logistics Management, 38 (2), 88–107; Kotha, S. and Swamidass, P.M., 1998, Advanced manufacturing technology use: exploring the effect of the nationality variable. International Journal of Production Research, 36 (11), 3135–3146). In this stream of research, one external factor of potential influence–supply chain management–remains conspicuously absent. This study uses data from industry to (a) develop rationales for a relationship between the extent of use of manufacturing technologies and supply chain management; and (b) offer data-based verification and insights on the nature and management of this relationship. Results suggest that the extent of use of specific manufacturing technologies increases or declines depending on the specific supply chain management practice in use. The findings raise interesting implications for managers and scholars.     

The impact of diversifying and de novo firms on regional innovation performance in an emerging industry: a longitudinal study of the U.S. ethanol industry

There is growing interest among strategy scholars and policy makers regarding the influence of diversifying and de novo firms on regional innovation activities in emerging industries. This paper examines how the population, entry, and exit of diversifying and de novo firms in regions influence regional innovation output in an emerging industry. Using longitudinal data from the U.S. ethanol industry, we find that the local population and exit of diversifying and de novo firms have differing impacts on regional innovation output. Our findings contribute to the literature on firm heterogeneity, agglomeration, and regional innovation systems.     

Supply chain agility: the influence of industry culture on asset capabilities within capital intensive industries

Supply chain agility in capital-intensive industries is argued as strongly linked to the capabilities of the individual processing assets comprising the chain. Therefore the desired asset capabilities conducive to overall agility need to be designed in to plant and equipment. However, in addition to asset design, how the assets are used in the production process is an important factor in determining capabilities. In culturally-conservative industries the penetration of modern operations management (OM) practices is expected to be limited and this will hold back the contribution that assets can make to supply chain agility.

First the paper begins by reviewing the need for agility in supply chains and links this to agile plant capabilities. Next the research context and collaboration is described, which focused upon the speciality chemicals industry and involved three UK universities and thirteen industrial partners. Experiences drawn from industrial case studies undertaken in the research initiative are used to illustrate in a practical manner the key asset capability underpinning agility, that of reconfigurability. The paper adopts a novel focus on a process industry to complement the work on agility that is more usually grounded in discrete manufacturing.     

Modelling joint outsourcing and offshoring decisions

Offshoring and outsourcing have emerged as two most essential and important strategies for the manufacturing firms globally. This has happened due to the relentless forces of competition and globalisation, which has forced modern manufacturing firms to disaggregate themselves and reach for foreign investments, technological inputs through collaboration and cooperation among markets and partners. Outsourcing and offshoring simultaneously has potential to help the firm to meet three strategic goals i.e. ‘efficiency’ through cost minimisation; ‘exploration’ through an access to the right and technologically capable firm vendors/ Suppliers/ players; and ‘exploitation’ from development of global markets. Both outsourcing and offshoring have grown to a great extent either by the number of companies involved or by the number of multiple nations are involved. Hence, addressing both offshoring and outsourcing strategies together can provides value to the supply chain in economical and efficient way. Therefore, this paper is an attempt to model joint outsourcing and offshoring decision integrated with fuzzy-MCDM approaches using fuzzy data to optimise total cost through right selection of suppliers to meet demand of global markets, thus, achieving efficiency, exploration and exploitation. The model addresses qualitative and quantitative criteria in joint decisions and is also illustrated to show the cost effectiveness.     

Digitalization for supply chain resilience and robustness: The roles of collaboration and formal contracts

Black swan events such as the coronavirus (COVID-19) outbreak cause substantial supply chain disruption risks to modern companies. In today’s turbulent and complex business environment, supply chain resilience and robustness as two critical capabilities for firms to cope with disruptions have won substantial attention from both the academia and industry. Accordingly, this study intends to explore how digitalization helps build supply chain resilience and robustness. Adopting organizational information processing theory, it proposes the mediating effect of supply chain collaboration and the moderating effect of formal contracts. Using survey data of Chinese manufacturing firms, the study applied structural equation modelling to test the research model. Results show that digitalization has a direct effect on supply chain resilience, and supply chain collaboration can directly facilitate both resilience and robustness. Our study also indicates a complementary mediating effect of supply chain collaboration on the relationship between digitalization and supply chain resilience and an indirect-only mediation effect on the relationship between digitalization and supply chain robustness. Findings reveal the differential roles of digitalization as a technical factor and supply chain collaboration as an organizational factor in managing supply chain disruptions. Paradoxically, formal contracts enhance the relationship between digitalization and supply chain resilience but weaken the relationship between supply chain collaboration and supply chain resilience. The validation of moderating effects determines the boundary conditions of digitalization and supply chain collaboration and provides insights into governing supply chain partners’ behavior. Overall, this study enhances the understanding on how to build a resilient and robust supply chain.     

New flexibility drivers for manufacturing,supply chain and service operations

Increasing product proliferation, customisation, competition and customer expectations, as well as supply side disruptions, pose significant challenges to firm operations. Such challenges require improved efficiency and resilience in manufacturing, service and supply chain systems. New and innovative flexibility concepts and models offer a prospective route to such operational improvements. Several emerging issues in flexibility, such as risk and uncertainty management, environmental sustainability, optimal strategies under competition, optimal operations with strategic consumer behaviours are being examined in this regard. This overview provides a concise review of these critical research issues, and discusses related papers featured in this special issue. Four major flexibility drivers are classified: disruption risks, resilience and the ripple effect in the supply chain; digitalisation, smart operations and e-supply chains; sustainability and closed-loop supply chains; and supplier integration and behavioural flexibility.     

Strategic alliance formation and the effects on the performance of manufacturing enterprises from supply chain perspective

This study examines the antecedents of strategic alliance formation in manufacturing firms in China, the alliance effect on innovation capability and dyadic quality performance, and how these two organisational capabilities are related to the supply chain performance of Chinese manufacturing enterprises in Shanghai. We perform a series of statistical techniques including logistic regression analysis, multivariate analysis of variance (MANOVA) and multiple regression analysis for assessing the hypothesised relationships. Our findings indicate that relational stability and effective communication are significant antecedent factors influencing strategic alliance formation among Chinese manufacturing enterprises. Such alliance formation is found to benefit innovation capability and dyadic quality performance, which are significant contributors to the supply chain performance of Chinese manufacturers. We provide important theoretical and practical implications on these antecedents and consequences of strategic alliance formation leading to supply chain performance in the Chinese manufacturing context.     

Leagile supply chain: design drivers and business performance implications

In the context of a dynamic and hypercompetitive business environment, effective supply chain design helps organisations to align resources for improved flow of products and services and satisfy customers’ diverse needs. Scholars have proposed several mutually exclusive supply chain designs such as efficient versus responsive, and lean versus agile. Quantitative testing has revealed that supply chain designs of many firms do not match with what was conceptually expected. To address this mismatch, in this study, a new approach to supply chain leagility is introduced and the impact of uncertainty as the key design driver of supply chains on leagility is investigated. The partial least squares (PLS) was employed to analyse data collected from 299 Australian firms by administering a structured questionnaire. Results indicate that higher performance is achievable on minimising the deviation from a balanced supply chain in which aspects of both leanness and agility are equally embedded. Further, the level of uncertainty directly and positively affects the Deviation from Leagility (DFL) index.     

Joint decisions for R/M integrated supply chain using system dynamics methodology

In the remanufacturing/manufacturing (R/M) integrated supply chain, the decisions of the manufacturer, the wholesaler, the retailer, the parts producer, the raw materials supplier, the collector, and the disassembly centre are interactional. In this paper, a system dynamics model is proposed to examine the long-term behaviour of the R/M integrated supply chain with reuse, remanufacturing, and recycling. The optimal decision sets of the remanufacturing ratio and the setup period of remanufacturing (r) are given, the joint decisions of all members of R/M integrated supply chain under optimal r are presented by the simulation results, and the impacts of optimal r on the joint decisions are analysed.     

Innovation and Firm Growth: Is R&D Worth It?

The paper contributes to an emerging literature that critically questions the degree to which R&D, at the centre of national and transnational innovation policies, results in firm growth. The differences in how innovation affects firm growth is explored for small and large publicly quoted US pharmaceutical firms between 1950 and 2008. We observe that the positive impact of R&D on firm growth is highly conditional upon a combination of firm-specific characteristics such as firm size, patenting and persistence in patenting. For small firms, R&D boosts growth for only a subset of firms: namely, those that patent persistently for a minimum of five years. For large pharmaceutical firms, on the other hand, R&D may have a negative impact on growth; potentially resulting from the low R&D productivity these firms have suffered from since the mid-1990s. These results raise important issues around the R&D and firm growth relationship for small and large firms as well the role of persistence in innovation for boosting firm performance.     

基于价值链的汽车产业供应链协同管理分析

汽车产业供应链协同管理的关键是鉴别供应链的低效及其原因.通过对汽车产业供应链现状的分析,提出了由敏捷性和速度驱动的汽车产业供应链协同管理的价值链模型,并以上海某汽车制造企业为核心的汽车行业供应链为例证明了基于价值链的供应链协同管理在实践中给供应商、制造商以及供应链整体带来的收益和竞争优势,从而说明汽车产业基于价值链的供应链协同管理是一种有效的管理模式.     

Product and employee development in advanced manufacturing: Implementation and impact

As competitive intensity increases and the need for rapid, responsive and efficient production rises, manufacturers need to develop effective strategies that lever all a firm's resources into a competitive weapon. One challenge managers face in today's dynamic global economy is to choose appropriate manufacturing practices and then to integrate them into a cohesive value-added strategy that will yield enhanced competitive performance. The sheer number and range of manufacturing 'strategies' that have emerged over the past 20 years exacerbate the challenge. The goal of this study is therefore to look at four highly publicized manufacturing strategies and then examine their interrelationships and impact on firm performance: (1) integrated product development, (2) employee development, (3) just-in-time manufacturing and (4) manufacturing automation. The responses of 158 managers from randomly selected US manufacturing firms were used to develop a covariance matrix to facilitate the use of a structural equations model via LISREL. The analysis indicates that employee and product development strategies are important antecedents of just-in-time and automation strategies. All four advanced manufacturing practices have significant, positive impacts on organizational competitiveness.     

Cumulative manufacturing capabilities: an extended model and new empirical evidence

There has been intense debate in the manufacturing strategy literature on the way in which firms work on different manufacturing capabilities, with two opposing approaches considered – the trade-off model and the sand cone model. Analysis of these models has essentially been based on study of the links amongst four classic manufacturing capabilities (quality, delivery, flexibility, and cost efficiency) and has obviated the need to consider environmental protection as an important manufacturing capability. This study analyses the theoretical arguments and the prior empirical evidence on the two models, and proposes and tests an extended sand cone model which includes the environmental protection objective alongside the four traditional ones. The research uses structural equation modelling and data from a sample of 274 manufacturers to contribute additional empirical evidence on the existence of cumulative effects amongst manufacturing capabilities. It is observed that the predominant strategic model in these firms is one of multiple, non-incompatible capabilities with cumulative effects according to the following sequence: quality, delivery, flexibility, environmental protection, and cost efficiency.