Hamid Moradlou, Hendrik Reefke, Heather Skipworth and Samuel Roscoe
This study investigates the impact of geopolitical disruptions on the manufacturing supply chain (SC) location decision of managers in UK multinational firms. The context of study…
Abstract
Purpose
This study investigates the impact of geopolitical disruptions on the manufacturing supply chain (SC) location decision of managers in UK multinational firms. The context of study is the UK manufacturing sector and its response to the UK's decision to leave the European Union (EU), or Brexit.
Design/methodology/approach
The study adopts an abductive, theory elaboration approach and expands on Dunning's eclectic paradigm of international production. A Delphi study over four iterative rounds is conducted to gather and assess insights into manufacturing SC location issues related to Brexit. The panel consisted of 30 experts and managers from a range of key industries, consultancies, governmental organisations, and academia. The Delphi findings are triangulated using a focus group with 38 participants.
Findings
The findings indicate that the majority of companies planned or have relocated production facilities from the UK to the EU, and distribution centres (DCs) from the EU to the UK. This was because of market-seeking advantages (being close to major centres of demand, ease of access to local and international markets) and efficiency-seeking advantages (costs related to expected delays at ports, tariff and non-tariff barriers). Ownership and internalisation advantages, also suggested by the eclectic paradigm, did not play a role in the location decision.
Originality/value
The study elaborates on the OLI framework by showing that policy-related uncertainty is a primary influencing factor in the manufacturing location decision, outweighing the importance of uncertainty as an influencer of governance mode choices. The authors find that during geopolitical disruptions managers make location decisions in tight time-frames with incomplete and imperfect information, in situations of high perceived uncertainty. The study elaborates on the eclectic paradigm by explaining how managerial cognition and bounded rationality influence the manufacturing location decision-making process.
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Hamid Moradlou, Samuel Roscoe, Hendrik Reefke and Rob Handfield
This paper aims to seek answers to the question: What are the relevant factors that allow not-for-profit innovation networks to successfully transition new technologies from…
Abstract
Purpose
This paper aims to seek answers to the question: What are the relevant factors that allow not-for-profit innovation networks to successfully transition new technologies from proof-of-concept to commercialisation?
Design/methodology/approach
This question is examined using the knowledge-based view and network orchestration theory. Data are collected from 35 interviews with managers and engineers working within seven centres that comprise the High Value Manufacturing Catapult (HVMC). These centres constitute a not-for-profit innovation network where suppliers, customers and competitors collaborate to help transition new technologies across the “Valley of Death” (the gap between establishing a proof of concept and commercialisation).
Findings
Network orchestration theory suggests that a hub firm facilitates the exchange of knowledge amongst network members (knowledge mobility), to enable these members to profit from innovation (innovation appropriability). The hub firm ensures positive network growth, and also allows for the entry and exit of network members (network stability). This study of not-for-profit innovation networks suggests the role of a network orchestrator is to help ensure that intellectual property becomes a public resource that enhances the productivity of the domestic economy. The authors observed how network stability was achieved by the HVMC's seven centres employing a loosely-coupled hybrid network configuration. This configuration however ensured that new technology development teams, comprised of suppliers, customers and competitors, remained tightly-coupled to enable co-development of innovative technologies. Matching internal technical and sectoral expertise with complementary experience from network members allowed knowledge to flow across organisational boundaries and throughout the network. Matrix organisational structures and distributed decision-making authority created opportunities for knowledge integration to occur. Actively moving individuals and teams between centres also helped to diffuse knowledge to network members, while regular meetings between senior management ensured network coordination and removed resource redundancies.
Originality/value
The study contributes to knowledge-based theory by moving beyond existing understanding of knowledge integration in firms, and identified how knowledge is exchanged and aggregated within not-for-profit innovation networks. The findings contribute to network orchestration theory by challenging the notion that network orchestrators should enact and enforce appropriability regimes (patents, licences, copyrights) to allow members to profit from innovations. Instead, the authors find that not-for-profit innovation networks can overcome the frictions that appropriability regimes often create when exchanging knowledge during new technology development. This is achieved by pre-defining the terms of network membership/partnership and setting out clear pathways for innovation scaling, which embodies newly generated intellectual property as a public resource. The findings inform a framework that is useful for policy makers, academics and managers interested in using not-for-profit networks to transition new technologies across the Valley of Death.
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Loay Salhieh, Ala'a Mehiar, Ismail Abushaikha, Hendrik Reefke and Loay Bani-Ismail
The aim of this study is to investigate and examine the impact of strategic purchasing practices (SPP) on strategic-fit (SF) by analyzing the influence of SPP on purchasing…
Abstract
Purpose
The aim of this study is to investigate and examine the impact of strategic purchasing practices (SPP) on strategic-fit (SF) by analyzing the influence of SPP on purchasing involvement in business strategy formulation with path-goal theory leadership styles as moderators.
Design/methodology/approach
Using survey data from 320 respondents representing 64 manufacturing firms in the Middle East, the authors measure SPP, purchasing involvement, leadership styles and SF of the purchasing function with business strategy.
Findings
Building on the path-goal approach to leadership, results suggest that participative, supportive and achievement-oriented leadership (AOL) styles are pure moderators, while directive leadership style (DLS) is a quasi-moderator in boosting the relationship between SPP and strategic purchasing involvement (SPI).
Research limitations/implications
Limitations of the sampling methodology and sample size restricts the scope for generalizing the hypotheses. Further, data were collected only from manufacturing companies. The paper provides managerial implications on purchasing involvement in business strategy formulation and the different roles of leadership styles.
Originality/value
This is the first scholarly work to examine the different leadership styles as a moderator that affects the strategic involvement and status of strategic purchasing.
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Hendrik Reefke and Mattia Trocchi
Supply chains (SCs) are integral to the globalized economy and offer many business opportunities but can also lead to unintended social and environmental impacts. Accurate…
Abstract
Purpose
Supply chains (SCs) are integral to the globalized economy and offer many business opportunities but can also lead to unintended social and environmental impacts. Accurate performance assessments are crucial for SC control and are also a cornerstone for sustainable development. Hence, procedural, technological, and operational support is needed to facilitate a balanced approach to performance measurement for sustainable SCs.
Design/methodology/approach
The paper combines concepts derived from literature on performance measurement in SCs and sustainability with the balanced scorecard (BSC). Synthesis of these related approaches leads to the proposal of a customized scorecard design and development processes which are further elaborated through illustrations and practical examples.
Findings
A scorecard design customized for sustainable SCs is proposed along with development and implementation processes.
Research limitations/implications
The organization and synthesis of related performance measurement approaches advances the theoretical understanding of how a BSC can be operationalized in sustainable SCs. Research opportunities are derived based on the presented findings. The results are limited due to their mainly conceptual development.
Practical implications
The BSC is illustrated by practical examples in an attempt to demonstrate the feasibility and practical value of the conceptual approach.
Originality/value
The field of sustainable supply chain management continues to be beset by little guidance in terms of principles and applicable tools for performance assessment. The paper provides structure in this regard, integrates concepts central to the performance of sustainable SCs, and supports the practical application of a BSC approach.