Yi-Su Chen, Tsai-Shan S. Shen and Manus J. Rungtusanatham
The purpose of this study is to assess the validity and predictability of insights from the investment model (IM) in the context of strategic manufacturer–industrial supplier…
Abstract
Purpose
The purpose of this study is to assess the validity and predictability of insights from the investment model (IM) in the context of strategic manufacturer–industrial supplier relationships. IM is a theoretical model in social psychology pertaining to interpersonal relationship discontinuity. This formal empirical test of IM in a different context supports vertical theory borrowing and minimizes the risk of committing atomistic fallacy.
Design/methodology/approach
Data collected from 256 sourcing professionals participating in a scenario-based role-playing experiment were analyzed via structural equation modeling. The authors also performed bootstrapping to assess indirect effects.
Findings
The IM is generally applicable to the context of interfirm relationship dissolution. Relative to the original context of interpersonal relationship dissolution, three nuances are detected: investment size as an antecedent has lowered prominence in influencing commitment; satisfaction level, quality of alternatives and investment size have non-orthogonal effects on commitment; and satisfaction level influences relationship continuity through and beyond commitment.
Research limitations/implications
The empirical findings broaden boundary conditions for IM insights. Beyond interpersonal relationship dissolution, the IM appears to also describe, explain and predict interfirm relationship dissolution.
Practical implications
Keeping the manufacturer satisfied is critical. Moreover, suppliers should be cautious when entering joint product development agreements.
Originality/value
This study appears to be among the first to formally validate the applicability of IM insights as they pertain to the dissolution of strategic manufacturer–industrial supplier relationships.
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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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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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Matthew Schwieterman, Manus Rungtusanatham, Thomas J. Goldsby, W.C. Benton, Martha C. Cooper and Esen Andiç-Mortan
This research seeks to identify the motivations, means and outcomes of supply chain integration (SCI) among firms in the middle market (i.e. those with annual revenues between…
Abstract
Purpose
This research seeks to identify the motivations, means and outcomes of supply chain integration (SCI) among firms in the middle market (i.e. those with annual revenues between US$10m and US$1bn). These firms often interface with larger, more powerful firms in the supply chain – both suppliers and customers. Understanding how these firms are challenged and benefit from integrative mechanisms in supply chain relations can lead to better outcomes more often.
Design/methodology/approach
The research utilizes an online focus group methodology featuring 39 participants. The participants were able to interact in written form with a professional moderator, as well as each other, over the course of three days.
Findings
The research presents evidence that firms in the middle market adopt SCI as a response to pressure from customers and suppliers. These firms also view technology as a primary means of achieving integration. Despite their disadvantageous size position relative to larger customers and suppliers, firms in the middle market achieved positive outcomes from integration.
Research limitations/implications
Because of the specific context of middle-market firms, this research may lack generalizability. However, providing contextualization regarding firm size contributes specificity to the large number of studies detailing the challenges and benefits of SCI.
Practical implications
Managers of firms in the middle market should find value in this study as it explicates the possible benefits their firms may realize through integration with customers and suppliers. Moreover, this research outlines several of the possible means through which integration can be achieved. Further, managers in smaller and larger firms can better understand the motives and needs of middle-market companies with which they interact.
Originality/value
Despite voluminous literature on SCI, this paper provides context-specific findings by isolating the implications of SCI to firms in the middle market.
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Sunil Babbar, Xenophon Koufteros, Ravi S. Behara and Christina W.Y. Wong
This study aims to examine publications of supply chain management (SCM) researchers from across the world and maps the leadership role of authors and institutions based on how…
Abstract
Purpose
This study aims to examine publications of supply chain management (SCM) researchers from across the world and maps the leadership role of authors and institutions based on how prolific they are in publishing and on network measures of centrality while accounting for the quality of the outlets that they publish in. It aims to inform stakeholders on who the leading SCM scholars are, their primary areas of SCM research, their publication profiles and the nature of their networks. It also identifies and informs on the leading SCM research institutions of the world and where leadership in specific areas of SCM research is emerging from.
Design/methodology/approach
Based on SCM papers appearing in a set of seven leading journals over the 15-year period of 2001-2015, publication scores and social network analysis measures of total degree centrality and Bonacich power centrality are used to identify the highest ranked agents in SCM research overall, as well as in some specific areas of SCM research. Social network analysis is also used to examine the nature and scope of the networks of the ranked agents and where leadership in SCM research is emerging from.
Findings
Authors and institutions from the USA and UK are found to dominate much of the rankings in SCM research both by publication score and social network analysis measures of centrality. In examining the networks of the very top authors and institutions of the world, their networks are found to be more inward-looking (country-centric) than outward-looking (globally dispersed). Further, researchers in Europe and Asia alike are found to exhibit significant continental inclinations in their network formations with researchers in Europe displaying greater propensity to collaborate with their European-based counterparts and researchers in Asia with their Asian-based counterparts. Also, from among the journals, Supply Chain Management: An International Journal is found to exhibit a far more expansive global reach than any of the other journals.
Research limitations/implications
The journal set used in this study, though representative of high-quality SCM research outlets, is not exhaustive of all potential outlets that publish SCM research. Further, the measure of quality that this study assigns to the various publications is based solely on a publication score that accounts for the quality of the journals, as rated by Association of Business Schools that the papers appear in and nothing else.
Practical implications
By informing the community of stakeholders of SCM research about the top-ranked SCM authors, institutions and countries of the world, the nature of their networks, as well as what the primary areas of SCM research of the leading authors in the world are, this research provides stakeholders, including managers, researchers and students, information that is helpful to them not only because of the insights it provides but also for the gauging of potential for embedding themselves in specific networks, engaging in collaborative research with the leading agents or pursuing educational opportunities with them.
Originality/value
This research is the first of its kind to identify and rank the top SCM authors and institutions from across the world using a representative set of seven leading SCM and primary OM journals based on publication scores and social network measures of centrality. The research is also the first of its kind to identify and rank the top authors and institutions within specific areas of SCM research and to identify future research opportunities relating to aspects of collaboration and networking in research endeavors.
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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.
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Manus Rungtusanatham, John C. Anderson and Kevin J. Dooley
Describes the process and outcomes of operationalizing the 14 dimensions underlying the SPC implementation/practice construct. Employs a standard procedure to create a measurement…
Abstract
Describes the process and outcomes of operationalizing the 14 dimensions underlying the SPC implementation/practice construct. Employs a standard procedure to create a measurement instrument comprising 14 measurement scales, with the number of constituent measurement items ranging from one to four, that correspond to the 14 dimensions underlying the SPC implementation/practice construct. Reports the results of assessing three properties of measurement quality for these newly‐created measurement scales, namely: face validity, internal consistency reliability and uni‐dimensionality. Such a measurement instrument can then be applied to examine antecedents and consequences of SPC implementation/practice and to diagnose existing organizational efforts at implementing and practicing SPC and to identify opportunities to improve organizational implementation and practice of this quality improvement intervention. Demonstrates the application and interpretation of the SPC implementation/practice measurement instrument within one organizational setting. Concludes by identifying future research needs.
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Fabrizio Salvador, Cipriano Forza, Manus Rungtusanatham and Thomas Y. Choi
Many studies claim that when an organization interacts with suppliers and with customers across the supply chain, the organization would achieve improved time performances. This…
Abstract
Many studies claim that when an organization interacts with suppliers and with customers across the supply chain, the organization would achieve improved time performances. This claim, however, has undergone limited theoretical development, as well as subsequent systematic empirical testing. As a result, we still have incomplete understanding of the “why” (i.e. the rationale) and the “how” (i.e. the mechanisms by which) of such interaction’s impact on time performances. This study addresses these issues through both model development and empirical analyses of 164 plants. Our analyses suggest two findings. First, when an organization interacts with suppliers and with customers on quality management issues, the organization would improve its time performances indirectly as a result of complete mediation by internal practices for: quality management; low management; inter‐unit coordination; and vertical coordination. On the other hand, when an organization interacts with suppliers and with customers on materials flow management issues, the impact on time‐related performances can either be completely or partially mediated by internal practices.
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Fabrizio Salvador, Manus Rungtusanatham, Cipriano Forza and Alessio Trentin
This paper aims to investigate the factors enabling or hindering the simultaneous pursuit of volume flexibility and mix flexibility within a supply chain through the lens of a…
Abstract
Purpose
This paper aims to investigate the factors enabling or hindering the simultaneous pursuit of volume flexibility and mix flexibility within a supply chain through the lens of a manufacturing plant seeking to implement a build‐to‐order (BTO) strategy.
Design/methodology/approach
To accomplish this empirical investigation, an in‐depth case study involving a manufacturing plant and its supply chain was designed. Prior to primary and secondary data collection, this research setting had already decided to implement a BTO strategy and had, moreover, carefully assessed several practices for BTO strategy implementation, as well as their interactions.
Findings
The studied case suggests that a number of approaches typically used to increase volume flexibility, actually negatively affect mix flexibility and vice versa. The existence of such trade‐offs may ultimately inhibit the implementation of a BTO strategy and this was the case in the studied company. Nevertheless, empirical evidence also suggests that, to some extent, volume flexibility and mix flexibility may be achieved synergistically, as initiatives such as component standardization or component‐process interface standardization would improve both volume flexibility and mix flexibility.
Research limitations/implications
The pursuit of volume flexibility and mix flexibility in implementing a BTO strategy in a specific setting and from primarily an operations management perspective was investigated. As such, the findings can be complemented by viewing the case study results through the lens of other established general management theories or by replicating the study in different research settings.
Originality/value
While past research informs us about how manufacturing firms can successfully achieve mix flexibility or volume flexibility, there are few insights for understanding how volume flexibility and mix flexibility can both be simultaneously achieved within a manufacturing plant and its supply chain. This research fills this gap in the literature and contributes to the development of a theory of BTO strategy implementation, especially in terms of volume flexibility, mix flexibility and their interactions.
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Priscilla Huldt Navarro and Linnea Haag
The purpose of this paper is to explore how process management (PM) can support small- and medium-sized enterprises (SMEs) in pursuing sustained competitive advantage. For this…
Abstract
Purpose
The purpose of this paper is to explore how process management (PM) can support small- and medium-sized enterprises (SMEs) in pursuing sustained competitive advantage. For this purpose, a dynamic capabilities (DC) lens was used.
Design/methodology/approach
A narrative literature review and a multiple case study with an action research approach at two road freight transport companies were used.
Findings
PM provides structure and system thinking to support the development of competitive advantage. Concerning PM, management of knowledge, management style and process orientation are key factors for the generation of competitive advantage for SMEs.
Research limitations/implications
This study contributes to PM literature by studying its support for and implementation at SMEs. Furthermore, the study contributes to the literature on DC by providing concrete examples of activities linked to such capabilities.
Practical implications
This study contributes to practitioners by providing examples of implementing PM and identifying competitive advantage, connected with PM elements.
Social implications
This study has social and environmental implications for the quality of life of the Swedish people.
Originality/value
This paper contributes to clarifying the connection between the research fields of quality management and DC to explore how PM can support SMEs in pursuing sustained competitive advantage.