Rahul Pandey, Dipanjan Chatterjee and Manus Rungtusanatham
In this paper, the authors introduce supply disruption ambiguity as the inability of a sourcing firm to attach probability point estimates to the occurrence of and to the…
Abstract
Purpose
In this paper, the authors introduce supply disruption ambiguity as the inability of a sourcing firm to attach probability point estimates to the occurrence of and to the magnitude of loss from supply disruptions. The authors drew on the “ambiguity in decision-making” literature to define this concept formally, connected it to relevant supply disruption information deficit, positioned it relative to supply chain risk assessment and hypothesized and tested its negative associations with both supply base ties and inventory turnover.
Design/methodology/approach
The authors analysed survey data from 171 North American manufacturers and archival data for a subset (88 publicly listed) of these manufacturers via Ordinary Least Squares (OLS) estimation after ensuring that methodological concerns with survey research have been addressed. They used appropriate controls and employed the heteroskedasticity-based instrumental variable (HBIV) approach to ensure that inferences from our results are not unduly influenced by endogeneity.
Findings
Strong supply base ties decrease supply disruption ambiguity, which, in turn, increases inventory turnover. Moreover, strong supply base ties and data integration with the supply base have indirect and positive effects on inventory turnover. As sourcing firms strengthen ties and integrate data exchange with their supply base, their inventory turnover improves from access to information relevant to detect and diagnose supply disruptions effectively.
Originality/value
Research on supply disruption management has paid more attention to the “disruption recovery” stage than to the “disruption discovery” stage. In this paper, the authors add novel insights regarding the recognition and diagnosis aspects of the “disruption discovery” stage. These novel insights reveal how and why sourcing firms reduce their overall ambiguity associated with detecting and assessing losses from supply disruptions through establishing strong ties with their supply base and how and why reducing such ambiguity improves inventory turnover performance.
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M. Rungtusanatham, F. Salvador, C. Forza and T.Y. Choi
In order to improve performance at the operational level, more and more firms are developing explicit linkages with suppliers and with customers. While the question of “what…
Abstract
In order to improve performance at the operational level, more and more firms are developing explicit linkages with suppliers and with customers. While the question of “what beneficial impact do linkages with suppliers and with customers have for a firm” has been addressed in numerous studies, the equally important question of “why” this beneficial impact arises deserves further discourse and explication. This paper borrows and applies the Resource‐Based View of the Firm, a theoretical perspective prevalent in the strategic management literature, to develop a conceptual framework to describe, explain, and predict the advantages of a firm's linkages with entities in its supply chain on its internal operations. The proposed framework can be used to justify decisions to develop, strengthen, and protect relationships with suppliers on the upstream side and with customers on the downstream side. The framework can also be used to evaluate practices implemented to link a firm to its suppliers and customers and to provide a decision roadmap for firms to better understand how to maximize operational performance benefits from these supply chain linkages.
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This study explores the profound influence of social and cultural factors on the financial conduct of indigenous tribes and groups. Anchored in Vygotsky's sociocultural theory…
Abstract
This study explores the profound influence of social and cultural factors on the financial conduct of indigenous tribes and groups. Anchored in Vygotsky's sociocultural theory, the analysis delves into the intricate interplay between cultural elements, such as bricolage, and the immediate availability of financial resources, illuminating their collective impact on the tribes' financial behaviour. Typically residing in proximity, these communities exhibit homogeneity by forming groups exclusive to their clans, lacking access to conventional financial services and tangible assets that dissuade banks from extending loans. Crucially, the social capital embedded within the group dynamics, often referred to as the peer mechanism, emerges as a pivotal conduit for members to secure capital and bank credit. The synergy of bricolage, representing the adept use of available social capital, facilitates access to finance and credit. Despite the existence of social capital and financial literacy programmes, a stark reality persists – a significant proportion of indigenous people remain financially excluded. This chapter endeavours to scrutinise the ramifications of these factors on tribal financial behaviour, employing the Partial Least Squares Structural Equation Modelling (PLS-SEM) method. Proposing a paradigm shift in financial attitudes, the research underscores the imperative of fostering financial inclusion within indigenous tribes and communities.
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Rahul Pandey, Manus Rungtusanatham and Divinus Oppong-Tawiah
With asymmetric investments in exchange (i.e. sourcing) relationships, both sourcing firms and suppliers invest but one party invests more than the other. This paper aims to…
Abstract
Purpose
With asymmetric investments in exchange (i.e. sourcing) relationships, both sourcing firms and suppliers invest but one party invests more than the other. This paper aims to examine the associations between asymmetric (i.e. unequal) investments in exchange relationships and the tendency of the strategic supplier base to shirk as perceived by the sourcing firm, as well as the moderation effects of cross-functional information sharing within a sourcing firm on these associations.
Design/methodology/approach
The authors analyzed survey data from 500 US middle-market manufacturers via ordinary least squares (OLS) estimation. Besides appropriate controls, the authors also employed the heteroskedasticity-based instrumental variable approach to ensure that analytical inferences are not influenced by endogeneity.
Findings
On average, when a sourcing firm invests more than its strategic supplier base into their exchange relationships, the perceived tendency of the strategic supplier base to shirk decreases. This negative association is more pronounced when a sourcing firm facilitates cross-functional information sharing. Conversely, when the strategic supplier base invests more than the sourcing firm into their exchange relationships, the perceived tendency of the strategic supply base to shirk is not detected unless the sourcing firm facilitates cross-functional information sharing.
Originality/value
Prior research reveals that investments by a sourcing firm or by suppliers influence supplier shirking. This paper provides new evidence as to how and why asymmetric investments in exchange relationships relate to the perceived tendency of the strategic supplier base to shirk and new evidence as to how and why cross-functional information sharing safeguards against this tendency when investments in exchange relationships are unequal.
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Henrik Franke, Finn Wynstra, Fabian Nullmeier and Chloe Nullmeier
Managing projects is an important part of operations management, but many projects fail. This study focuses on attribution processes of such disruption from the underrepresented…
Abstract
Purpose
Managing projects is an important part of operations management, but many projects fail. This study focuses on attribution processes of such disruption from the underrepresented perspective of the project manager. The authors consider two types of causes: the more frequently researched environmental uncertainty (i.e. uncontrollable events) and the scarcely researched uncertainty imposed by non-collaborative project sponsors (i.e. other-controllable events).
Design/methodology/approach
The authors test conceptual arguments grounded in attribution theory and the notion of psychological contracts in a scenario-based experiment among 325 practicing project managers.
Findings
The findings indicate that non-collaborative project sponsors negatively affect project managers' motivation, whereas uncontrollable disruptions leave hope to achieve positive future outcomes. This latter effect is further strengthened when project managers have an internal attribution style. They tend to blame the disruption on themselves and generally feel in control of achieving success even if they are not.
Originality/value
These socio-psychological insights nuance the economic idea that uncertainty reduces motivation per se in the context of project disruption appraisal. The authors contribute to the behavioral project management literature and general attribution theory and help guide the allocation of resources during the recovery of failed projects.
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Mehrnoush Sarafan, Brian Squire and Emma Brandon–Jones
Past research has shown that culture has significant effects on people's evaluation of and responses to risk. Despite this important role, the supply chain risk literature has…
Abstract
Purpose
Past research has shown that culture has significant effects on people's evaluation of and responses to risk. Despite this important role, the supply chain risk literature has been silent on this matter. The purpose of this paper is to examine the impact of cultural value orientations on managerial perception of and responses to a supply disruption risk.
Design/methodology/approach
The authors conduct a scenario-based experiment to investigate the effect of cultural value orientations – i.e. individualism-collectivism and uncertainty avoidance – on individuals' perception of risk and supplier switching intention in the face of a supply disruption.
Findings
The findings highlight the negative effect of individualism-collectivism on disruption risk perception and switching intention in high uncertain circumstances. However, these relationships are non-significant in relatively less uncertain situations. Moreover, the findings show that the impact of uncertainty avoidance on risk perception and supplier switching is positive and significant in both low and high uncertain circumstances.
Originality/value
Extant research has traditionally assumed that when confronted with disruption risks, managers make decisions using an economic utility model, to best serve the long-term objectives of the firm. This paper draws from advances of behavioural research to show that cultural value orientations influence such decisions through a mediating mechanism of subjective risk perception.
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Mohammed Farhan, Caroline C. Krejci and David E. Cantor
The purpose of this research is to examine how a change in team dynamics impacts an individual's motivation to engage in helping behavior and operational performance.
Abstract
Purpose
The purpose of this research is to examine how a change in team dynamics impacts an individual's motivation to engage in helping behavior and operational performance.
Design/methodology/approach
An online vignette experiment and a hybrid discrete event and agent-based simulation model are used.
Findings
Study findings demonstrate how a non-core worker's perception of team dynamics influence engagement in helping behavior and system performance.
Originality/value
This study provides a further understanding on how team members react to changes in team processes. This study theorizes on how an individual team member responds to fairness concerns. This study also advances our understanding of the critical importance of helping behavior in a retail logistics setting. This research illustrates how the theory of strategic core and procedural justice literature can be adopted to explain team dynamics in supply chain management.
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Anto John Verghese, Xenophon Koufteros and Richard Peters
The authors argue that the supplier’s perspective in managing buyers using relationship commitment is incomplete. The primary reasons for incompleteness are that: the effects of…
Abstract
Purpose
The authors argue that the supplier’s perspective in managing buyers using relationship commitment is incomplete. The primary reasons for incompleteness are that: the effects of the two types of relationship commitment (i.e. affective and continuance) on buyer behaviors (i.e. individualized consideration and opportunism) are largely ignored from a supplier’s perspective; there is quandary regarding the effects of the two relationship commitment types in a relationship, whether they are favorable or not; and there is also ambiguity regarding the conditions under which relationship commitment types might serve as effective relational governance mechanisms. The paper aims to discuss this issue.
Design/methodology/approach
The authors employ survey data obtained from 207 suppliers to test the hypotheses using structural equations modeling.
Findings
The authors extend contemporary knowledge on supplier relationship commitment by revealing that at high-levels of buyer-leverage, supplier affective commitment can induce buyer opportunism and supplier continuance commitment can induce buyer individualized consideration. Furthermore, buyer-leverage positively moderates the interaction effect of supplier commitment types to promote buyer opportunism.
Research limitations/implications
The authors do not examine a buyer’s perspective, but from a supplier’s perspective, suppliers can maximize their benefits from their relationship commitment by embracing affective commitment while ensuring that buyers do not have excessive leverage.
Originality/value
The study presents a significant contribution to the extant literature on relationship commitment by probing the dual nature of supplier relationship commitment; albeit for specific configurations of commitment types and buyer-leverage.
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Byung-Gak Son, Sangho Chae and Canan Kocabasoglu-Hillmer
Catastrophic supply chain disruptions can significantly damage the operational and financial performance of firms. While a growing body of literature on supply network structures…
Abstract
Purpose
Catastrophic supply chain disruptions can significantly damage the operational and financial performance of firms. While a growing body of literature on supply network structures has studied what influences supply networks' vulnerability to supply chain disruptions and capability to recover from them, it remains unclear how supply network structures change after major supply chain disruptions. We aim to provide an understanding of how these changes occur.
Design/methodology/approach
Using a natural experiment approach and supply network data from Factset, this study investigates how firms' supply network structures change after experiencing the catastrophic supply chain disruptions caused by the 2011 Tohoku earthquake and tsunami in Japan. We capture post-earthquake supply network changes using the measures of degree centrality and ego network density.
Findings
The results of the analysis suggest that compared to unaffected firms, the affected firms experience changes in their supply network structures tending toward lower complexity measured by in-degree centrality, out-degree centrality and ego network density.
Originality/value
This study contributes to social network theory and the complex adaptive supply network literature by providing empirical evidence of structural changes in supply networks after catastrophic supply chain disruptions. A managerial contribution is made by providing a reflection on why these changes might be occurring and alert firms to the challenges of managing complexity in their supply networks.
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Manus Rungtusanatham, Jeffrey A. Ogden and Bin Wu
The Deming management method, which encompasses the breadth of W. Edwards Deming's approach to quality management, has had significant impact on the practice and scholarship of…
Abstract
The Deming management method, which encompasses the breadth of W. Edwards Deming's approach to quality management, has had significant impact on the practice and scholarship of quality management. In this paper we present a scholarly introspection and discussion on scientific research related to the Deming management method, the contributions of such research to theory development in quality management, and future research directions to pursue in order to continue to advance scientific knowledge in quality management. In doing so, we traced the historical development of the Deming management method. We present and discuss two streams of research related to the Deming management method, namely the concept of profound knowledge and the Deming‐based theory of TQM. We also highlight several opportunities for future research that would advance theory development in the TQM discipline – opportunities anchored by the imperative for confirmatory research that requires proper operationalization and primary data, and the plausibility of theory refinement and extension through the specification of new relationships and the inclusion of moderators and mediators.