The purchasing function is growing in importance in today's industrial economy. In many purchasing situations there are a number of conflicting considerations that influence the…
Abstract
The purchasing function is growing in importance in today's industrial economy. In many purchasing situations there are a number of conflicting considerations that influence the final purchasing decision. The professional purchasing person must make profitable buying decisions under these circumstances. The single item purchase lot sizing literature in the past has served as the foundation for developing and studying the requirements planning based models and techniques. The purchasing manager's methods for making quantity (lot size) decisions are examined. Significant literature on the subject is classified and a taxonomy provided. Variations within the purchase lot sizing literature are discussed. Purchase lot sizing literature has important limitations by focusing exclusively on lot sizing as the relevant criterion for making economic order size decisions. A logical extension would be to include, the economic performance of alternative lot size procedures in a capacitated Materials Requirement Planning (MRP) environment. Another extension should consider the economics of jointly ordering from one vendor.
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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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There is great uncertainty and volatility in the evaluation and measurement of green supplier satisfaction. The purpose of this paper is to fill this gap based on the information…
Abstract
Purpose
There is great uncertainty and volatility in the evaluation and measurement of green supplier satisfaction. The purpose of this paper is to fill this gap based on the information entropy theory (IET) to describe the probability of green supplier satisfaction degree.
Design/methodology/approach
The authors introduce a formal model using analytic hierarchy process (AHP), IET and entropy technique for order preference by similarity to an ideal solution (TOPSIS) method to evaluate green supplier satisfaction and promote them for the better implementation of green supply chain management practices.
Findings
The first finding is developing an effective framework for green supplier satisfaction, incorporating various measures of environmental dimension. Second, a hybrid uncertainty decision method is introduced, by integrating AHP and IET and entropy-TOPSIS.
Research limitations/implications
One of the main limitations of the research is that the authors introduced a conceptual example. Real-world applications need to investigate the accuracy and effectiveness of these measures, and the operational feasibility of this method.
Originality/value
This is one of the first works to provide a comprehensive appraisal model for evaluation of green supplier satisfaction. This study and research method can form general guidelines, and organizations can increasingly benefit from using green supplier satisfaction evaluation as a management tool. Green supplier satisfaction evaluation is just the beginning.
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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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Heba F. Zaher and Gilberto Marquez-Illescas
This paper aims to examine the existing literature on firms’ power through the lens of the supply chain and highlights some gaps that could be covered by future research.
Abstract
Purpose
This paper aims to examine the existing literature on firms’ power through the lens of the supply chain and highlights some gaps that could be covered by future research.
Design/methodology/approach
This study uses a systematic framework-based review combining the insights of the antecedents, decisions and outcomes (ADO) and theories, contexts and methods (TCM) frameworks. The review was carried out using a sample of 108 articles published between 1984 and 2022 in 25 prestigious journals.
Findings
The ADO framework maps out the state of the art of the antecedents of power (i.e. sources and types of firm power), the decision to use power and the effect that exercising power over other firms may have on firm performance and the quality of inter-firm relationships. In addition, this framework highlights factors that mediate or moderate the decision to exercise power and the factors that mediate or moderate the outcomes of exercising power or power asymmetry. The TCM framework provides insights into the theories, contexts (i.e. countries, industries, level of analysis and sources of data) and methods used by the existing literature. The content analysis using the aforementioned frameworks provides the basis to elaborate propositions for future research on power in the supply chain from the perspective of gender differences.
Research limitations/implications
This systematic literature review offers a comprehensive guide for researchers to understand the antecedents, decisions and outcomes of firm power in the supply chain, as well as the TCM used in the literature. The content analysis using frameworks provides a road map to investigate the proposed factors that might moderate the decision to exercise power and the outcome of exercising power or power asymmetry from the perspective of gender differences. In addition, based on content analysis, the authors make propositions about TCM that could be applied in future research.
Practical implications
From a practical perspective, this systematic literature review may help managers to better understand the sources and consequences of their firm’s power. This would allow managers to make better decisions when negotiating with their supply chain parties, which could potentially lead to better performance for their firms and the whole supply chain.
Originality/value
To the best of the authors’ knowledge, this study is the first to conduct a comprehensive systematic literature review of the different dimensions of firms’ power in the supply chain.
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Željka Mesic, Adrienn Molnár and Marija Cerjak
The objectives of this paper were twofold: to explore if there are differences in the perceptions about supply chain performance (SCP) and relationship quality (RQ) among…
Abstract
Purpose
The objectives of this paper were twofold: to explore if there are differences in the perceptions about supply chain performance (SCP) and relationship quality (RQ) among traditional food supply chain members, and to examine the influence of individual relationship variables and aggregated relationship quality on SCP in the traditional food sector.
Design/methodology/approach
The survey was conducted in a triadic context with 189 supply chain members (62 suppliers, 65 focal companies and 62 customers) of 65 traditional food supply chains (cheese, olive oil, meat products, brandies and liqueurs, wine and honey) in Croatia. The influence of individual relationship variables and aggregated RQ on perceived SCP was tested using regression analysis.
Findings
It was found that there were no significant differences in the perception of overall SCP and RQ among supply chain members. It was identified that aggregated RQ and all individual relationship variables (trust, commitment, economic satisfaction, non-coercive and coercive power, reputation and conflict) have a significant influence on perceived SCP of the traditional food supply chains.
Practical implication
This study provides a systematic approach to investigate the SCP and supply chain RQ in the traditional food sector. The findings suggest that managers should not neglect any aspect of supply chain relationship to keep high SCP and to be competitive on the market.
Originality/value
This multiple supply chain study makes an original empirical contribution to the supply chain and network management literature by using a triadic approach to investigate RQ and SCP. The influence of individual RQ constructs and aggregated RQ on traditional food SCP examined in this study has not been explored thus far. This study also makes an original empirical contribution by investigating RQ and SCP in the traditional food sector, which has received little attention recently.
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Frank Wiengarten, Mark Pagell and Brian Fynes
Although outsourcing has emerged as a key business practice in global supply chain management it has not always been successfully adopted. Since the reasons for outsourcing…
Abstract
Purpose
Although outsourcing has emerged as a key business practice in global supply chain management it has not always been successfully adopted. Since the reasons for outsourcing success and failure are underexplored this research aims to investigate the role of contractual completeness and complementary enforcement practices such as cooperation and monitoring and sanctioning practices under varying risk scenarios. Critically, these relationships are examined in the context of two serious risks: legal risk in the guise of rule of law and supplier non-conformance risk.
Design/methodology/approach
Cross-country, survey data was collected through the global manufacturing research group and combined with secondary data from the World Bank. The authors carried out a series of regression analysis to explore their research questions.
Findings
The results indicate that risk is a critical component of outsourcing success with legal risk reducing outsourcing performance on both cost and quality and supplier risk reducing outsourcing performance on quality. The results also indicate that these outcomes can be mitigated in some settings via complete contracts and complementary practices. These findings are likely to be generalized throughout the supply chain and are of relevance beyond the dyad.
Originality/value
In the realm of supply chain practices this study presents a comprehensive attempt to assess the importance of risk and complementary practices for the success of outsourcing contracts. Furthermore, it assesses the role of contextual factors such as risk and the rule of law.
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The purpose of this study is to assess (a) the relationship between internal and external IS integration and their respective impacts on internal and external cost management…
Abstract
Purpose
The purpose of this study is to assess (a) the relationship between internal and external IS integration and their respective impacts on internal and external cost management strategies, (b) the relationship between internal and external cost management strategies, and (c) the effects of internal and external cost management strategies on profitability, controlling for firm size. Furthermore, this study investigates whether internal and external IS integrations produce direct significant effects on firm profitability or whether these relationships are established through cost management strategies.
Methodology/approach
The study uses survey data from a cross-section of 241 U.S. manufacturing firms. Data were analyzed using structural equation modeling.
Findings and implications
The results indicate that neither internal IS integration nor external IS integration has a direct significant impact on firm profitability. Rather, internal cost management strategy fully mediates the relationship between internal IS integration and profitability; similarly, the relationship between external IS integration and profitability is fully mediated through external cost management strategy. The results provide evidence that firms seeking profitability solely by investing in IS integration may not necessarily realize enhanced profitability; the firms must focus their attention on intervening processes, such as business strategy, in order to determine the profitability derived from IS integration.
Originality
As far as it can be ascertained, this study is the first to explore the impact of internal and external IS integration on firm profitability within the context of internal and external cost management strategies.
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Hashem Aghazadeh, Hossein Maleki and Sajedeh Sadat Majidi
Seyi S. Stephen, Ayodeji E. Oke, Clinton O. Aigbavboa, Opeoluwa I. Akinradewo, Pelumi E. Adetoro and Matthew Ikuabe
This chapter investigated tendering in stealth construction, emphasising innovative approaches and methodologies that prioritise environmental protection, safety, efficiency, and…
Abstract
This chapter investigated tendering in stealth construction, emphasising innovative approaches and methodologies that prioritise environmental protection, safety, efficiency, and aesthetics. It began with an overview of the construction industry’s tendering processes, followed by an in-depth examination of various tendering types, including competitive and negotiated methods. The study highlighted contemporary trends such as electronic tendering, Building Information Modelling (BIM), green and sustainable procurement, risk management, data analytics, artificial intelligence, lean construction practices, and blockchain technology. Moreover, with a specific focus on stealth construction, the chapter further analysed certain criteria, including building cross-section development, visibility, radio frequency emission, and countermeasures. It explored integrating functional construction systems, including environmental, safety, health, and quality management. Additionally, it discussed methods like green building, modular construction, and low-impact techniques. Lastly, the chapter emphasised the strategies to achieve environmental protection, safety, speed, economy, and aesthetics in tendering for stealth construction.