Anni-Kaisa Kähkönen, Katrina Lintukangas, Paavo Ritala and Jukka Hallikas
Due to the increasing complexity in supply chains and networks, several key practices have been highlighted as beneficial for supply chain performance. However, it is less known…
Abstract
Purpose
Due to the increasing complexity in supply chains and networks, several key practices have been highlighted as beneficial for supply chain performance. However, it is less known whether adopting such practices affects the innovation performance of the focal firm. This study hypothesises that supplier collaboration practices in four specific areas (green and ethical supply management, early supplier involvement, systemic purchasing and inter-firm learning) may lead to higher focal firm innovation performance, as they require the firm to adopt new business models, processes and product features.
Design/methodology/approach
The hypotheses drawn from previous research are tested with a quantitative survey study of 165 Finnish firms and analysed by means of regression analysis.
Findings
The results show that two examined practices are positively related to focal firm innovation performance: systemic purchasing and green and ethical supply management. Interestingly, early supplier involvement and inter-firm learning did not influence innovation performance.
Originality/value
Little is known about whether adopting certain practices in supply management affects the innovation performance of the firm. In fact, among the performance indicators of supply management, innovation is rarely studied, and more studies using innovation as a performance indicator are called for. Thus, this study focuses on supplier collaboration practices and their relation to the focal firm’s innovation performance.
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Aleksi Harju, Jukka Hallikas, Mika Immonen and Katrina Lintukangas
The purpose of this study is to investigate the role of procurement digitalization in reducing uncertainty in the supply chain (SC) and how it relates to mitigating SC risks and…
Abstract
Purpose
The purpose of this study is to investigate the role of procurement digitalization in reducing uncertainty in the supply chain (SC) and how it relates to mitigating SC risks and improving SC resilience (SCRES).
Design/methodology/approach
Based on survey data collected from the procurement functions of 147 Finnish firms, this study conceptualizes data analytics, information sharing and procurement process digitalization as drivers of procurement digitalization and investigates their impact on SC risk management and SCRES by using partial least squares path modeling.
Findings
Procurement digitalization through data analytics and digital process maturity requires effective information sharing among SC partners and SC risk management to be able to improve SCRES. Procurement digitalization increases information-processing capacities and reduces uncertainty in the SC.
Originality/value
This study contributes to the understanding on the relationships between procurement digitalization and SCRES.
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The scale and measure of the impact of the coronavirus disease 2019 (COVID-19) on economic development has been a popular topic in the literature. The global pandemic has posed…
Abstract
Purpose
The scale and measure of the impact of the coronavirus disease 2019 (COVID-19) on economic development has been a popular topic in the literature. The global pandemic has posed challenges to the supply chains and logistics in many countries, causing delays and disrupting supply chains and decreasing the volume of logistics flows. To ensure economic growth in the future, it is essential to acknowledge the impact the COVID-19 in order to increase the accuracy of anticipating changes during widespread pandemic. In this study, the linkage between economic development and the COVID-19 estimated and real impact is illustrated in a case study comparison between the Finnish and German logistic companies' viewpoints. The study shows how the international COVID-19 pandemic has affected to logistics organization perceptions on the changes in operational environment and continuity of business.
Design/methodology/approach
The empirical part of the study relies on mixed methods approach using panel data from logistics companies and expert group discussion. The panel data participants were logistics sector actors and the data was collected through a questionnaire. Numerous sources found from the literature are used to gain a holistic understanding of the attributes and impact of change in the logistics field.
Findings
This study provides an important, yet sparsely addressed viewpoint to the supply chain management literature by illustrating the changes caused be a widespread pandemic can cause to the logistics sector companies. Furthermore, the findings illustrate how different roles in supply chain actors perceived the COVID-19 in their operations, before and during the pandemic. The findings of the paper illustrate how drastic uncertainty and changes in the operational environment is seen in the logistics organizations. The findings suggest that increased uncertainty and changes in the operational environment can cause significant drop in expectations of the business development in the logistics sector depending on the actor’s role in the supply chain and international perspective.
Originality/value
This paper contributes to the supply chain management and logistics literature with insights into how widespread pandemic is perceived in different roles of the supply chain as well as in different countries where the pandemic has spread in different pace. Analyzing the differences between the expected and realized impact from the business environment can give valuable information for academics and managers in the field, and thus give insights to improve the planning and decision-making in logistics field during a global pandemic.
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Katrina Lintukangas, Jukka Hallikas, Minna Koivisto-Pitkänen and Anni-Kaisa Kähkönen
The purpose of this paper is to unite the fragmented discussion concerning organizational-level capability in terms of purchasing and supply chain management. The capability…
Abstract
Purpose
The purpose of this paper is to unite the fragmented discussion concerning organizational-level capability in terms of purchasing and supply chain management. The capability drivers are identified from the literature and then validated by purchasing professionals. The impacts of the identified capability drivers on supply management capability are empirically examined. To increase a firm’s supply management capability, it is essential to connect purchasing and supply chain management to the firm’s strategy, as well as to establish robust policies and procedures for the activities of supply function, and to promote supplier orientation and the value of supplier networks to the business.
Design/methodology/approach
Data and methodological triangulation are utilized in the form of focus group sessions and a large scale survey. A regression analysis of the data from 165 Finnish firms is performed to examine the influence of the drivers.
Findings
The drivers of supply management capability proposed in this study and ranked by the focus group were the strategic status of procurement, supplier orientation, and the formalization of organizational responsibilities and roles in the purchasing function. An examination of these components and their relation to capability by means of a regression analysis showed that they have positive effects and high explanatory power on supply management capability.
Originality/value
The paper summarizes capability studies in the field of purchasing and supply chain management from the last two decades and also fulfils the need for empirical studies concerning the concept of supply management capability. Moreover, it contributes to the theory development by confirming that supply management capability really is a strategic asset of a firm.
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Anni-Kaisa Kähkönen, Katrina Lintukangas and Jukka Hallikas
This study aims to investigate the role of sustainable supply management (SSM) practices in a firm’s overall sustainability performance and reflect the significance of supply…
Abstract
Purpose
This study aims to investigate the role of sustainable supply management (SSM) practices in a firm’s overall sustainability performance and reflect the significance of supply management in this performance. The paper uses dynamic capability view as a theoretical foundation for the research of SSM practices and differentiates between reactive and proactive practices.
Design/methodology/approach
The research design includes a focus group session with nine supply management professionals and survey data collected from 111 companies. The research objectives are examined by means of quantitative analyses.
Findings
The empirical results show that SSM practices represent a significant share of the firm’s sustainability performance overall. However, the significance of the practices differs depending on the strategic type and importance of the practice. SSM practices reflecting reporting and upstream SCM activities aim to ensure sustainability of the entire supply chain and have a focal role in improving firm’s sustainability performance.
Originality/value
A three-dimensional matrix for the categorization of SSM practices is proposed. This is a novel theoretical contribution to the SSM literature. Reactive practices are basic ones where the strategic importance regarding the development of new capabilities is low. Proactive practices are dynamic in nature and aim toward the development of new capabilities. Thus, proactive practices have a long-term effect and are necessary for gaining higher sustainability performance.
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Jukka Hallikas, Mika Immonen and Saara Brax
This study aims to investigate digitalization as a performance driver in supply chains, especially the role of data analytics in the digitalization of procurement. The study…
Abstract
Purpose
This study aims to investigate digitalization as a performance driver in supply chains, especially the role of data analytics in the digitalization of procurement. The study investigates how digital procurement capabilities are linked to data analytics capabilities and supply chain operational performance and how this links to business success.
Design/methodology/approach
Using operational and dynamic capabilities as foundations for data analytics capabilities, this paper studied the digital procurement capabilities and proposed the conceptual model and hypotheses for empirical testing. The collected industry survey data and structural equation method are then applied to test the hypotheses.
Findings
The study confirms positive and significant relationships among digital procurement capabilities, data analytics capabilities and supply chain performance. Digital procurement capabilities mediate the positive relationship between external data analytics capabilities and supply chain performance.
Research limitations/implications
This study has some limitations that should be addressed. The empirical study was based on survey data from a questionnaire that was probably challenging for some respondent companies with low levels of digital procurement and data analytics. Also, it is necessary to adopt secondary data to measure business performance in future studies which reduces the effect of subjective bias.
Practical implications
From the managerial point of view, the findings highlight the importance of gaining knowledge from gathered data and digitalized processes. Managers must focus on data utilization capabilities to improve the operational performance expected from the digitalization of supply chain activities. In addition, managers need to consider exploiting of data through new creative approaches as part of standardized operations.
Originality/value
The present study contributes to existing knowledge by investigating the mediating role of data analytics capabilities between the digitalization of procurement and supply chain performance. The findings support a positive relationship between the data analytics capabilities and supply chain performance in digital upstream supply chain procurement processes. The present study also clarifies the impact and role of data analytics capabilities in digital supply chain development and success.
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Sirpa Multaharju, Katrina Lintukangas, Jukka Hallikas and Anni-Kaisa Kähkönen
Sustainability-related risk management of logistics service providers (LSPs) is an essential part of sustainability performance of focal companies, as logistics services touch the…
Abstract
Purpose
Sustainability-related risk management of logistics service providers (LSPs) is an essential part of sustainability performance of focal companies, as logistics services touch the entire supply chain (SC) – from raw material sources to end-customers. The purpose of this paper, draws on resource-based view and stakeholder theory in exploring how companies can manage environmental and social sustainability-related risks from logistics service suppliers. This kind of capability is essential in order to maintain reputation in the eyes of stakeholders, and to maintain long-term financial performance.
Design/methodology/approach
The data of this multiple-case study were collected from semi-structured interviews in eight case-companies in Finland. Five of the cases are primary logistics buyers, and three represent LSP companies.
Findings
The cross-case analysis showed that primary buyers of logistics services use their sustainability criteria as a prerequisite for LSP candidates, and when the level is adequate and equal, other factors, e.g. price and capacity, are decisive. Based on the analysis, large LSPs are preparing for the future competition, and act in a more sustainable manner than their customers (buyers) expect at the moment, while small LSPs strictly comply with the regulation. However, buyers’ requirements for sustainable logistics services are increasing as the stakeholder expectations for comprehensively sustainable SCs are growing.
Originality/value
Only little research has been conducted on sustainable logistics from the buyer company’s risk management perspective. This paper adds the knowledge of sustainability-related risk management in purchasing of logistics services and in the logistics industry.
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Elina Karttunen, Katrina Lintukangas and Jukka Hallikas
The aim of this study was to identify interventions for and mechanisms of the digital transformation of purchasing and supply management (PSM) processes. The digital…
Abstract
Purpose
The aim of this study was to identify interventions for and mechanisms of the digital transformation of purchasing and supply management (PSM) processes. The digital transformation of tactical and operational PSM processes has often progressed slowly despite the solid knowledge of advanced technologies.
Design/methodology/approach
This study used a qualitative exploratory approach based on 14 interviews with PSM executives from firms that are continuously working toward using advanced technologies in their PSM processes but have not yet gained full strategic benefits from digital transformation.
Findings
This study formulates five propositions regarding interventions and mechanisms that can positively influence the digital transformation of PSM processes. The main intervention in this regard is the renewal of data infrastructure, including platforms. PSM-related data should meet needs from both tactical and operational viewpoints. When applications serve as a source of data, they support digital transformation. Mechanisms such as supplier measurement and process improvement are outcomes of the digital transformation of PSM processes.
Practical implications
This study highlights the importance of common data sets for tactical and operational purchasing. These purchasing data should be owned and served by a cross-functional team. To create this interoperability, a firm needs global governance of open standards.
Originality/value
This study makes a theoretical contribution to the discussion of what kind of interventions positively influence on the digital transformation of PSM processes. Specifically, this study explains the integration needs of data and applications.
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Elina Karttunen, Mika Matela, Jukka Hallikas and Mika Immonen
Buyer–supplier relationships in public procurement have garnered increasing attention in research, yet studies on the perspective of suppliers on public procurement have remained…
Abstract
Purpose
Buyer–supplier relationships in public procurement have garnered increasing attention in research, yet studies on the perspective of suppliers on public procurement have remained limited. This research takes the perspective of suppliers and aims to investigate the innovativeness of suppliers and the impact of supply chain ambidexterity strategies on their perceptions about public procurement in terms of innovation enablers and customer attractiveness.
Design/methodology/approach
This research draws from a survey of 137 suppliers to the public sector in Finland and applies PLS-path modeling to test its hypotheses.
Findings
The findings reveal that the ambidexterity strategy of suppliers in the supply chain influences how they perceive the innovation enablers and customer attractiveness of public organizations since processes of public procurement do not support these strategies fully. Supplier innovativeness has an influence on the perceived innovation enablers of public procurement, which, in turn, influences customer attractiveness.
Practical implications
The innovativeness and strategies of suppliers for the supply chain have an impact on how attractive they perceive public procurement. The findings of this research provide insights on why the customer attractiveness of public procurement may not be high enough to secure the competition in their bidding processes.
Originality/value
The study’s contribution adds to the field of buyer–supplier relationships and customer attractiveness in public procurement by showing the importance of innovation enablers and highlighting the impact of supplier's ambidexterity in the supply chain on their perceptions about public procurement.
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Paavo Ritala, Jukka Hallikas and Heli Sissonen
Cooperation between competing firms (or coopetition) has been under increasing research interest during the last decade. It is generally proposed that coopetition can be a…
Abstract
Cooperation between competing firms (or coopetition) has been under increasing research interest during the last decade. It is generally proposed that coopetition can be a beneficial strategy that can enable gaining a competitive advantage. Current contributions linking coopetition with actual firm performance, however, are few. In order to address this issue, we conduct an empirical study in the global information and communication technology sector to examine the effect of strategic alliances between key competitors on the performance of a single firm. Our results indicate that a high relative number of strategic alliances among a group of firm’s key competitors contributes negatively to firm performance. This implies that firms should be aware of the risks that are included in cooperating with too many of their most direct competitors.