Andreas Reichhart and Matthias Holweg
The purpose of this paper is twofold: first, to develop a typology of co‐located supplier clusters, such as logistics centres or supplier parks, and second, to evaluate the…
Abstract
Purpose
The purpose of this paper is twofold: first, to develop a typology of co‐located supplier clusters, such as logistics centres or supplier parks, and second, to evaluate the theoretical perspectives at hand to investigate the co‐location phenomenon.
Design/methodology/approach
The research encompasses 28 semi‐structured interviews with key operations executives from vehicle manufacturers, component suppliers and logistics service providers at nine co‐located supplier clusters, the findings of which are triangulated with secondary sources.
Findings
The investigation yields two main findings: first, a typology is proposed based on two key dimensions “spatial integration and infrastructure” and “local value‐added”. From a theoretical perspective, the paper further concludes that transaction cost economics is less suited for studying dedicated co‐location, and suggests that future investigations should focus on consolidating the contributions on the spatial dimension of sourcing configurations into a novel theoretical framework.
Research limitations/implications
The study is based on an exploratory research design, investigating a selected number of co‐located supplier clusters only. While the research does not claim to provide a comprehensive survey of co‐located supplier clusters, it proposes a general categorisation that aims to provide a structure currently lacking further research into this phenomenon.
Originality/value
A structured overview of the phenomenon of co‐located supplier clusters is provided, extending the existing morphological debate. Furthermore, the discussion of their theoretical foundations provides novel insights into this phenomenon as well as into the operational implications of value chain modifications in general, with the intention of guiding further research in this area.
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A.I. Millington, C.E.S. Millington and M. Cowburn
This paper explores the conditions under which motor component manufacturers may choose to supply car assembly plants through decentralised production in local assembly units…
Abstract
This paper explores the conditions under which motor component manufacturers may choose to supply car assembly plants through decentralised production in local assembly units (LAUs). The analysis is based on a case study of the decision to supply motor exhausts through an LAU where demand from the OEM company is sequenced. The case suggests that local assembly may result in significant efficiency gains. However, most of these gains flow to the OEM company, while most of the costs of local assembly flow to the component supplier. This finding emphasises the importance of trust and collaboration within supplier relationships, but suggests that significant possibilities for opportunistic recontracting may exist after the establishment of the LAU. Both supplier and OEM company should consider these possibilities when making the initial investment decision.
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Ronald K. Mitchell, Jae Hwan Lee and Bradley R. Agle
In this chapter, we update stakeholder salience research using the new lens of stakeholder work: the purposive processes of organization aimed at being aware of, identifying…
Abstract
In this chapter, we update stakeholder salience research using the new lens of stakeholder work: the purposive processes of organization aimed at being aware of, identifying, understanding, prioritizing, and engaging stakeholders. Specifically, we focus on stakeholder prioritization work — primarily as represented by the stakeholder salience model — and discuss contributions, shortcomings, and possibilities for this literature. We suggest that future research focus on stakeholder inclusivity, the complexity of prioritization work within intra-corporate markets, the integration of stakeholder prioritization with other forms of stakeholder work, and the development of managerial tools for multiobjective decision making within the strategic management context.
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Investigates the determinants, decision process, and performance of mode of entry substitution patterns used by multinational firms. Based on past research, two paths (incremental…
Abstract
Investigates the determinants, decision process, and performance of mode of entry substitution patterns used by multinational firms. Based on past research, two paths (incremental and non‐incremental/zigzag) for adopting entry modes in foreign product markets were conceptualized. Responses primarily via mail survey from executives of 77 Canadian and 108 US manufacturing firms verified usage of the conceptualized paths. Further, it was found that executives do preconceptualize their substitution pattern and that such preconceptualization is useful in strategic planning. Also, the executives identified choice variables critical to each pattern choice and some significant path discriminators. Finally, executives are satisfied with the performance of their chosen substitution paths.
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Kedar Joshi, K.N. Singh and Sushil Kumar
The purpose of this paper is to demonstrate a newly developed integrated multi‐criteria decision method (MCDM) with two‐sided preferences or selection scenario in build‐to‐order…
Abstract
Purpose
The purpose of this paper is to demonstrate a newly developed integrated multi‐criteria decision method (MCDM) with two‐sided preferences or selection scenario in build‐to‐order supply chains so as to explore the future applications like supplier parks.
Design/methodology/approach
The current state of the consolidation scenario of original equipment manufacturers (OEMs) and suppliers is presented and build‐to‐order imperativeness in the case of a supplier park is highlighted. These motivations guided the need for development of a new technique in two‐sided selection scenario. The MCDM technique, like analytical network process (ANP), is integrated with a mutual compatibility index. A hypothetical example is presented to demonstrate the proposed methodology.
Findings
The newly developed integrated methodology helps the decision maker to incorporate both sided preferences in the final supplier‐manufacturer selection.
Originality/value
This paper allows the reader to understand the build‐to‐order supply chain and supplier park situation. The emerging trends in the automobile sector in India are also highlighted. This new integrated technique certainly adds value to the decision maker in today's competitive world.
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David Bennett and Florian Klug
In recent decades the automotive industry has established a variety of new forms of logistics integration between automobile assemblers and their suppliers, in particular those in…
Abstract
Purpose
In recent decades the automotive industry has established a variety of new forms of logistics integration between automobile assemblers and their suppliers, in particular those in the first tier. The purpose of this paper is to outline which form of logistics integration original equipment manufacturer (OEM) assembly plants use to link up with proximate suppliers, and to classify and compare different types of logistics supplier integration.
Design/methodology/approach
The data and insights for this paper come from a literature review of research and practitioner papers and studies to survey logistics integration models in theory and practice. In addition, data are collected through semi‐structured interviews and site visits.
Findings
The main findings are summarised in five conditions which characterise logistics supplier integration in the automotive industry. These conditions vary significantly between local dedicated supply as discussed in this paper and the traditional supply, which is distant and scattered around suppliers. These main conditions are “geographical proximity”, “delivery contents, volume and sequence”, “shared investment and asset specificity”, “information sharing and information technology system integration” as well as “transport system”. Although all of the five conditions were considered relevant for the description of existing integration forms, only the “geographical proximity” dimension is emerged as most suited for a formal typology. Therefore, a seven‐step integration model was developed which allows for a categorisation and comparison of existing logistics integration forms of proximate supply.
Research limitations/implications
This research aims to support the academic study of cross‐company and inter‐organisational supplier integration by providing consistent criteria for cross‐site comparisons. A holistic and consistent understanding of different logistics integration types will be necessary, which will help in evaluating the actual integration forms such as supplier parks.
Originality/value
The majority of studies into the supplier integration phenomenon conclude that logistical concerns are the driving factor behind supplier co‐location. Therefore, the focus of this research is on the spectrum of vertical integration in logistics between the vehicle manufacturers and their suppliers.
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Mickey Howard, Mike Lewis, Joe Miemczyk and Alistair Brandon‐Jones
This paper investigates the stalled adoption of a supplier park at Bridgend Engine Plant in the UK. It starts from the position that not all firms can or should implement the same…
Abstract
Purpose
This paper investigates the stalled adoption of a supplier park at Bridgend Engine Plant in the UK. It starts from the position that not all firms can or should implement the same set of practices.
Design/methodology/approach
Critical incident technique and semi‐structured interviews over five years were used to understand the influence of institutional and strategic choices during the implementation of a supplier park. A conceptual framework was developed to incorporate practices broadly associated with parks, i.e. improving supply stability, supply coordination, redefining the OEM/supplier boundary and enhancing interaction between co‐located firms.
Findings
The findings demonstrate a limited implementation of supply practices at Bridgend with only one component supplier brought onto the site. The original plan was to create a supplier park that would “grow” to an industrial park, creating an automotive sector in the area. However, a combination of operational, processual, and contextual factors have conspired against the plan.
Research limitations/implications
The combination of a broad range of theoretical and practical elements means there are associated discussions that could be more fully explored. Condensing the interview notes has resulted in the researchers' own interpretation of events becoming a significant reality filter. Whilst single case studies raise inevitable concerns over comparability, our focus is on theoretical generalizability through richness of empirical data.
Originality/value
As firms continue to use best practice as a core ingredient of strategy, researchers must respond with robust theoretical concepts explaining adoption and implementation. This paper integrates disparate perspectives across multiple levels in order to build a richer and more believable picture of a stalled initiative. Three key conclusions can be drawn: the contingent nature of “bundles of practice” implications of political ambiguity over the efficiency argument and the effect of isomorphic or bandwagon responses by firms.
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Tomi Solakivi, Ain Kiisler and Olli-Pekka Hilmola
This research analyzes the development of logistics outsourcing market in two countries, Estonia and Finland, with different paths as members of the single European market. The…
Abstract
Purpose
This research analyzes the development of logistics outsourcing market in two countries, Estonia and Finland, with different paths as members of the single European market. The purpose of this paper is to examine whether the two markets have become more similar or whether their logistics costs and logistics markets have developed differently over time.
Design/methodology/approach
The development of the logistics market is addressed through two survey-based variables. Logistics costs are used to measure the size of the logistics market, whereas logistics outsourcing is analyzed to measure the development phase as well as the market potential for logistics service provision.
Findings
Estonian logistics outsourcing market was found to be underdeveloped and small compared to the Finnish market. At the same time, the logistics costs of Finnish companies are high and rising, whereas the costs of Estonian firms are declining.
Research limitations/implications
The results imply that the level of outsourcing might explain the visibility of logistics costs, which should be taken into account when making estimates on logistics costs both at the firm as well as on country level.
Social implications
Logistics sector is an important source of national competitiveness and employment. This research identifies subareas for the two countries on how to develop competitiveness through the logistics market.
Originality/value
This research provides a unique method to estimate the size of logistics outsourcing market in these two countries. It also represents as one of the rare works to provide multiyear comparison between countries in logistics costs.
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Robert E. Morgan and Constantine S. Katsikeas
It has been suggested that there is a lack of consensus regarding the conceptual domain of cross‐national studies. That said, the theoretical focus of such scholarly activities…
Abstract
It has been suggested that there is a lack of consensus regarding the conceptual domain of cross‐national studies. That said, the theoretical focus of such scholarly activities has tended to reflect the multidisciplinary nature of the field. By far the most significant contributions to knowledge in the area can be sourced to the international economics, international finance and international business literatures. The proliferation in focuses and the diversity of empirical studies to be found within these literatures, demonstrates the wealth of understanding that can be attributed to the research of cross‐national commercial activities and operations. Attempts to explicate many of the dominant theories within these literatures. Contributions to the macro level of analysis can be found in the form of theories of international trade. Alternatively, micro theories engage the organization as the level of analysis and consideration is given to both the foreign direct investment decision process and pattern pursued by firms in internationalization. Discusses the nature and emphasis of these theories in the form of a critique.