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1 – 3 of 3Kuntal Bhattacharyya, Alfred L. Guiffrida, Milton Rene Soto-Ferrari and Paul Schikora
Untimely delivery of goods and services, especially in a post-COVID landscape, is a critical harbinger of end-to-end fulfillment. Existing literature in supplier delivery modeling…
Abstract
Purpose
Untimely delivery of goods and services, especially in a post-COVID landscape, is a critical harbinger of end-to-end fulfillment. Existing literature in supplier delivery modeling is focused on penalizing suppliers for late deliveries built into a contractual transaction, which eventually erodes trust. As such, a holistic modeling technique focused on long-term relationship building is missing. This study aims to design a supplier evaluation model that analytically equates supplier delivery performance to cost realization while replicating a core attribute of successful supply chains – alignment, leading to long-term supplier relationships.
Design/methodology/approach
The supplier evaluation model designed in this paper uses delivery deviation as a unit of measure as opposed to delivery duration to enhance consistency with enterprise resource planning protocols. A one-sided modified Taguchi-type quality loss function (QLF) models delivery lateness to construct a multinomial probability penalty cost function for untimely delivery. Prescriptive analytics using simulation and optimization of the proposed mathematical model supports buyer–supplier alignment.
Findings
The supplier evaluation model designed herein not only optimizes likelihood parameters for early and late deliveries for competing suppliers to enhance total landed cost comparisons for on-shore, near-shore and off-shore suppliers but also allows for the creation of an efficient frontier toward supply base optimization.
Research limitations/implications
At a time of systemic disruptions such as the COVID pandemic, global supply chains are at risk of business continuity. Supplier evaluation models need to focus on long-term relationship modeling as opposed to short-term contractual penalty-based modeling to enhance business continuity. The model offered in this paper is grounded in alignment – a cornerstone of successful supply chain integration, and offers an interesting departure from traditional modeling techniques in this genre.
Practical implications
The results from this analytical approach offer flexibility to a supply manager toward building redundancies in the supply chain using an efficient frontier within the supply landscape, which also helps to manage disruption and maintain end-to-end fulfillment.
Originality/value
The model offered in this paper is grounded in alignment – a cornerstone of successful supply chain integration, and offers an interesting departure from traditional modeling techniques in this genre. The authors offer a rational solution by creating an evaluation model that uses penalty cost modeling as an internal quality measure to rate suppliers and uses the outcome as a yardstick for negotiations instead of imposing penalties within contracts.
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Sameer Prasad, James Jaffe, Kuntal Bhattacharyya, Jasmine Tata and Donna Marshall
Billions of entrepreneurs at the Base of the Pyramid (BoP) operate as small-scale producers within multi-tiered supply chain networks. Unfortunately, a majority of these…
Abstract
Purpose
Billions of entrepreneurs at the Base of the Pyramid (BoP) operate as small-scale producers within multi-tiered supply chain networks. Unfortunately, a majority of these entrepreneurs are simply unable to derive sufficient value from the network and are vulnerable to disasters and poverty. The purpose of this paper is to develop a typology that examines dynamic and triadic power relationships in order to create value chains for BoP producers.
Design/methodology/approach
This paper builds upon the available literature and a relevant historical case study to develop a typology. The validity of the typology is ascertained by examining and comparing two current BoP silk weaver communities in India.
Findings
The typology captures essential environmental variables and relates them to mediated and non-mediated forms of power which, in turn, shape the value derived from the supply chain network.
Practical implications
The typology provides specific recommendations for BoP producers, such as the formation of cooperatives, engaging in political unionization and ensuring that their social networks expand beyond local communities.
Originality/value
The typology brings together structuration theory and power and provides a framework for understanding supply value. This typology is generalizable to dynamic multi-tiered supply chain networks.
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Pratim Datta and Kuntal Bhattacharyya
How appropriate are the innovation returns from offshored information technology (IT) research and development (R&D)? In light of the emergence and spate of IT R&D offshoring…
Abstract
Purpose
How appropriate are the innovation returns from offshored information technology (IT) research and development (R&D)? In light of the emergence and spate of IT R&D offshoring, this paper aims to investigate the mechanics of governance in attracting IT R&D inflow in offshored hosts and, more importantly, whether R&D offshoring provides instrumental and legitimate IT innovation returns (intellectual property (IP)) to outsourcing countries as investors.
Design/methodology/approach
The authors combine the calculus of host‐country governance and IT R&D inflows with IT innovation returns to the US from its offshored IT R&D investments. They argue on the basis of the golden mean – a principle of moderation where too little or too stringent governance deters IT R&D investments; more importantly, too little and too much IT R&D investments fail to stimulate IT innovation returns to the investors.
Findings
An analysis of 81 World Trade Organization (WTO) countries underscores the authors' argument that the calculus between governance and IT innovation productivity is mediated by IT R&D investments. However, the relationship is non‐linear with diminishing marginal returns‐to‐scale.
Research limitations/implications
The non‐linear relationships between governance, R&D foreign direct investments (FDI) and patent‐level returns show a threshold effect often overlooked by existing research. Together, this article points out the need for researchers to consider diminishing returns to scale from overarching emphases on governance or IT R&D over‐investments.
Practical implications
As multinational companies in developed countries increasingly offshore IT‐related R&D, this investigation is relevant, current, and disconcerting – implying the need for multinationals to revisit their IT R&D offshoring strategies and priorities.
Originality/value
These research findings do not support the “win‐win” pitch for IT R&D offshoring. Instead, this research points to the fact that, while there are some economic benefits derived from R&D FDI, there are inflection points beyond which innovations returns diminish. Where the inflection point lies depends on countries as well as specific firms and industries.
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