Establishing and developing strategic relationships - the role for operations managers

Purpose – The objectives of this paper are, first to identify, from the literature, the key themes in the management of strategic relationships, second to apply those themes to understand how exemplary organisations establish and develop strategic relationships and third to determine the role of operations managers in this process. Design/methodology/approach – This empirically based research comprised four phases; interviews with managers to identify exemplars, interviews with managers from 27 organisations, data analysis and testing of the findings. Findings – From a theoretical point of view, a revised definition of strategic relationships has been proposed. Many previously disparate elements of relationships have been brought together into seven dimensions of strategic relationships. The scope and nature of exemplary relationships have been captured within each of these dimensions identifying 24 elements, and suggested the key roles for operations managers in establishing and developing their strategic business relationships. Research limitations/implications – This research has responded to the call to help operations managers understand the skill sets required to help them establish and develop strategic business relationships. It has contributed to the growing literature on business relationships and also provided practical guidance for operations managers. The research has a number of inherent weaknesses including the interpretative nature of the analysis and that the interviews were only carried out with one party to the exemplary relationships. The focus of the research was limited to exemplary strategic relationships and the study was conducted in one sector, though a range of types of organisations were involved. Practical implications – From a practitioner perspective, the outputs from the research have been summarised into a number of guidelines which flesh out the role for operations managers looking to identify, establish, evaluate or strengthen their role in establishing and developing strategic business relationships. Originality/value – The paper provides an original and detailed perspective into the nature of strategic business relationships, irrespective of their position in the supply chain, and identifies how such relationships can be established and developed

Integrated game-theory modelling for multi enterprise-wide coordination and collaboration under uncertain competitive environment

In this work, an integrated Game Theory (GT) approach is developed for the coordination of multi-enterprise Supply Chains (SCs) in a competitive uncertain environment. The conflicting goals of the different participants are solved through coordination contracts using a non-cooperative non-zero-sum Stackelberg game under the leadership of the manufacturer. The Stackelberg payoff matrix is built under the nominal conditions, and then evaluated under different probable uncertain scenarios using a Monte-Carlo simulation. The competition between the Stackelberg game players and the third parties is solved through a Nash Equilibrium game. A novel way to analyze the game outcome is proposed based on a win–win Stackelberg set of “Pareto-frontiers”. The benefits of the resulting MINLP tactical models are illustrated by a case study with different vendors around a client SC. The results show that the coordinated decisions lead to higher expected payoffs compared to the standalone case, while also leading to uncertainty reduction.Peer ReviewedPostprint (author's final draft

The Procurement Perspectives of Fruits and Vegetables Supply Chain Planning

Supply chain planning in the fruits and vegetables (FV) supply chains, dealing with short life cycled products in a competitive marketplace, integrates the complex network farmers, food processing and supply to end customers to enhance operations effectiveness

Structuring postponement strategies in the supply chain by analytical modeling

fi=vertaisarvioitu|en=peerReviewed

Developing a conceptual model for examining the supply chain relationships between behavioural antecedents of collaboration, integration and performance

Purpose – The purpose of this paper is threefold: first, review the literature on the topic of behavioural antecedents of collaboration and their impact on supply chain integration and performance; second, lay the theoretical foundations and develop a conceptual model linking behavioural antecedents of collaboration, information integration, coordination of operational decisions and supply chain performance; and third, set out operationalisation considerations. Design/methodology/approach – A conceptual model with theoretical basis on Relational Exchange Theory (RET) and extant supply chain theory is developed as a causal model that can be operationalised using structural equations modelling (partial least squares) and a “single key informant” approach. Findings – Positive relationships between behavioural antecedents of collaboration (trust, commitment, mutuality/reciprocity), information integration, coordination of operational decisions and supply chain performance (efficiency, effectiveness) are hypothesised. RET provides adequate theoretical background that leads to the theoretical establishment of hypotheses between behavioural antecedents, supply chain integration and performance, which are worth testing empirically. Research limitations/implications – The ideas presented in this paper enrich the study of behavioural factors in supply chain management and their impact on supply chain performance, and may benefit researchers in the field. The paper also sets the scene (experimental design, measurement items) for the upcoming field research. The empirical part of the work will provide the necessary evidence for the validation of the established hypotheses. Practical implications – The proposed linkages may stimulate the interest of supply chain strategists towards more collaborative relationship management and affect their decisions on the behavioural antecedents of relationship formation and management. Moreover, the proposed model may help clarify how the integration of critical operational contingencies – information, operational decisions – can help achieve superior supply chain performance. Originality/value – The paper establishes a causal relationship between constructs which have not been researched (mutuality/reciprocity, coordination of operational decisions) or have been researched individually or in combination (impact of integration on performance, impact of collaboration on performance) but not in the proposed integrated way. It also addresses the challenge of lack of theoretical justification on the development of knowledge that will assist decision making in SCM/logistics and its integration into models, processes and tasks. Finally, by using RET in selecting of behavioural factors and establishing hypotheses, it adds to the body of knowledge concerning the use of interorganisational theories in supply chain relationships

Modeling of Optimal Concession Contract between Port Authority and Terminal Operators using Channel Coordination Model

세계 해운 시장의 급격한 변화는 항만 산업에 큰 영향을 미친다. PA (항만공사)와 TOC (터미널 운영 회사)는 경쟁 우위를 확보하기 위하여 지금까지 항만 시설과 장비에 많은 투자를 해왔다. TOC는 경쟁사 및 해운 회사로부터의 요구 사항에 따라 수익성을 제고하기 위해 노력한다. 같은 상황에서 PA도 경쟁력을 찾고 있다. 시장의 불확실성과 기술적 변화는 PA와 TOC가 협력하여 더 나은 재정 상태를 요구하고 있다. PA와 TOC간에는계약을 통해 여러 방식으로 운영된다. 세계의 60-70%가 운영중인 임대 기능 모델에 따르면, PA는 항만의 토지 및 인프라를 소유∙관리하며, TOC는 터미널 운영을 담당한다. PA와 TOC는 계약을 통해 고정 요금제 내지 단가 요금제 등의 여부를 결정한다. 세계 항만 임대 시스템을 비교해 볼 때, 절대적인 고정된 계약 방식이 없다고 한다. 아시아의 대부분 지역에서는 고정 요금제를 이용하고, 유럽 지역에서는 고정 요금제와 단가 요금제가 혼합된 계약을 이용한다. 그동안 세계 항만 임대 시스템에 간한 연구는 많지 않았다. 특히 구체적 수치를 제공하지 않거나 비실용적 연구가 많았다. 한편, 이전 연구에서는TOC보다 PA 관점에서의 이익 극대화를 도모하는 데 중점을 두었다. 만약 PA가 처리량을 늘림으로써 이익을 극대화하고자 할 때, 고정 임대 계약이 더 유리한 선택이다. 이 연구는 공공기관과 민간 단체 상호간의 이익 극대화의 방식으로 연결하는 방법에 중점을 두고 있다. PA가 TOC에게 제안하는 4 가지 유형의 계약 방식은 비조정, 조정, Cournot 및 Collusion 모델로 비교하고, 동시에 각 계약 방식에 대해 모듈 수행과 수치 분석을 통해 모델을 비교한다. 연구 결과는 향후 항만 임대 계약을 수립하는 데 중요한 영향을 미칠 것이다. 비교 수치 분석을 관찰하면 다음과 같은 주요 결과를 얻을 수 있다. 결과에 따르면, 고정 계약과 단가 계약을 합친 조건이 각각의 고정 및 단가 계약제 보다 더 높다는 것을 알 수 있다. PA가 TOC의 이익과 위험을 다루는 만큼 TOC가 처리량을 증가시킬 수 있으며, 이것은 PA와 TOC 간의 총이익을 극대화 할 수 있다. 따라서PA가 조정 없는 계약을 제공하는 것보다 조정된 계약을 제공 할 때 더 많은 이익을 낼 수 있다. 그리고 PA와 TOC의 통합 이익은 각각의 이익보다 더 높다. PA와TOC의 통합 이익을 통해서 PA는 TOC에게 적절한 계약 방식을 제공하고 상호간의 이익 극대화를 도모할 수 있다. PA가 이익을 늘리려고 시도 할 때마다 수익과 수요 위험을 공유함으로써 TOC와의 관계를 유지해야한다. PA는TOC와의 협조로 어떤 계약방식을 선택하더라도 이익을 창출할 수 있다.|Rapid changes in the global maritime market have a major impact on the port industry. PA (Port Authority) and TOC (Terminal Operating Company) have invested heavily in port facilities and equipment so far to secure competitive advantage. TOC strives to improve profitability in accordance with requirements from competitors and shipping companies. In the same situation, PA is also looking for its own profitability. Market uncertainty and technological changes require PA and TOC to achieve better financial conditions in cooperation. The ports are operated in different contracts. According to the landlord function model which is operated by 60-70% of the world, the PA owns and manages the land and infrastructure of the port, and the TOC is responsible for terminal operations. The PA and TOC will decide whether to use a fixed fee or a unit fee through the contract. There is no absolute contract method in the port leasing system. Most regions in Asia prefer to use the fixed fee, while European countries prefer to use a mix of fixed fee and unit fee. There have been few studies on the port leasing system. In particular, most of them did not provide specific calculations or were impractical. On the other hand, previous studies have focused on maximizing profits from the perspective of PA rather than TOC. This research focuses on how to connect to the method of maximizing profit between public and private entities. The four types of contracts proposed by the PA to the TOC are compared with the uncoordination, coordination, Cournot and Collusion models, and at the same time, model comparisons and numerical analysis are performed for each contract method. The results of the study will have a significant impact on establishing future port lease contracts. Observing the comparative numerical analysis, the following main results are obtained. According to the results, it can be seen that the two-part tariff is higher than the each of fixed and unit contracts. As the PA shares with the profits and risks in cooperation with the TOC, the TOC can increase throughput, which can maximize the total benefit between PA and TOC. Thus, the PA can make more profits when it comes to providing a contract that is coordination contract provide more than uncoordination contract. And the joint profit of PA and TOC is higher than the respective total profits. Through the joint profit of PA and TOC, the PA can provide the TOC with the appropriate contractual condition and maximize their joint profits. The PA, in cooperation with the TOC, is able to generate profits no matter what contract type it chooses.Table of Contents LIST OF TABLES III LIST OF FIGURES III ABSTRACT IV 초록 VI CHAPTER 1. INTRODUCTION 1 1. BACKGROUND 1 2. AIM AND OBJECTIVES 6 3. SIGNIFICANCE 9 4. STRUCTURE OF THE THESIS 10 CHAPTER 2. LITERATURE REVIEW 11 1. PORT ECONOMICS 11 1. PORT GOVERNANCE 11 2. CONTRACTS: LEASEHOLD AND CONCESSION 16 3. PRICING MECHANISM 18 2. CONCESSION CONTRACT SCHEMES 21 1. FIXED-FEE CONTRACT 21 2. UNIT-FEE CONTRACT 22 3. TWO-PART TARIFF CONTRACT 22 4. FOREIGN AND KOREAN PORT CONTRACT SCHEMES 22 3. RISK SHARING CHARACTERISTICS 26 1. RISKS TYPES IN CONCESSION CONTRACTS 27 2. RISK ALLOCATION BETWEEN PA AND TOC 28 CHAPTER 3. THEORETICAL BACKGROUND AND MODEL DEVELOPMENT 30 1. THEORETICAL BACKGROUND 30 1. BERTRAND MODEL 31 2. COURNOT MODEL 32 3. STACKELBERG MODEL 33 4. COLLUSION MODEL 34 2. MODEL DEVELOPMENT 38 1. TERMINAL OPERATORS’ OPTIMAL BEHAVIORS UNDER THREE SCHEMES 41 2. PORT AUTHORITY’S OPTIMAL BEHAVIORS UNDER FOUR SCHEMES 45 3. COURNOT COORDINATION 55 4. COLLUSION COORDINATION 59 5. COMPARING THE ASSUMPTION MODELS 64 3. COORDINATION THROUGH SHARING THE RISK AND REVENUE 72 1. ASSUMPTION 72 2. SHARING THE JOINT PROFIT 73 3. SHARING THE MARKET UNCERTAINTY 73 4. SHARING THE MARKET RISK 74 CHAPTER 4. NUMERICAL ANALYSIS AND RESULTS 75 CHAPTER 5. CONCLUSION 81 1. SUMMARY 81 2. IMPLICATIONS 83 3. LIMITATION 84 4. FURTHER STUDIES 85 REFERENCE 86Docto

Strategic Positioning Under Agricultural Structural Change: A Critique of Long Jump Co-operative Ventures

Industrial Organization, Agribusiness,

Three Theoretical Perspectives for Understanding Inter-firm Coordination of Construction Project Supply Chains

The success of construction projects is highly dependent on the coordination of a fairly large number of stakeholders, such as client organizations, designers, general contractors, and subcontractors. Each of those stakeholders can both affect and be affected by the way a project is managed, and none of them usually has the power or the ability to coordinate project supply chains. However, the existing literature on supply chain management does not provide a comprehensive theoretical foundation for describing or explaining the coordination of construction project supply chains. This paper discusses the role of three different theoretical perspectives for understanding the inter-firm coordination process of project supply chains in the construction industry: the Theory of Coordination, the Transaction Cost Theory and the Language-Action Perspective. The contribution of each theoretical approach is pointed out in the paper, and their complementary role is illustrated in a case study carried out in a petrochemical construction project in Brazil

STRATEGIC POSITIONING UNDER AGRICULTURAL STRUCTURAL CHANGE: A CRITIQUE OF LONG JUMP CO-OPERATIVE VENTURES

Structural change in US agriculture has disrupted the traditional organization of the supply chain. Not only does the scale increase of firms common during the industrial period (1970-1995) continue, but also with the rise of a knowledge-based economy, new organizational forms and supply chain linkages are proliferating. Examples are the radical transformation of the relationship between input suppliers and producers in the biotech arena, the dominance of the swine industry by the integrated model, the rise of marketing and production contracting, and the arrival of multi-member closed producer organizations such as the new generation cooperatives and limited liability companies. The focus of this research is these new integrated producer organizations. Much of the activity and subsequent analysis of new producer organizations has focused on value-added opportunities through integration (i.e., Merrett et al, 1999). There are numerous examples from pasta plants and egg breaking, to cattle feeding, hog slaughter, and alcohol production. These value-added opportunities we define as long jump ventures. That is, they lie outside the core competencies of the principles in the firm, the producers. Strategic management theory (Prahalad, 1986,1990,1993; Quinn, 1977,1990; Mintzberg, 1987,1994,1996,1998,2000) suggests that there may be other opportunities available to producer organizations that better leverage their core competencies, short jump ventures. Short jump ventures are value-creating opportunities that involve a minimum R&D, less capital, less risk, and less direct specialized knowledge. While the economy at large is producing vast quantifies of long jump innovations in the fields of biotechnology and information, there is another revolution occurring in business involving short jump innovation in the area of service. This new field, known as; one-to-one marketing (Pepper, 1993, 1999), relationship management (Hansen, 1983), relationship marketing (Curry, 2000), and strategic partnering (Rackam, 1996), focuses on the supplier-client interface. Value is created by significant coordination between supplier and client. The boundary between firms is blurred, knowledge is actively shared, and partners are dedicated to mutual profitability. By understanding the needs of the client, the supplying firm is able to adapt its products and more importantly services. This creates a unique and more valuable business for the supplier insulating it from competitive forces and allowing greater value capture. This not only creates greater supply chain efficiency, but intra-firm and inter-firm product innovation result as well. The objective of this paper is to study strategic options for production agriculture dealing with the failure of the commodity business model. From this analysis of strategic positioning the paper introduces relationship management as a viable strategic alternative for commodity producers. Finally, a case study of the Wairarapa Lamb Cooperative, a New Zealand based firm doing business in the United States, is introduced. The case serves not only as an example of relationship management in agriculture but also demonstrates how producers can work within their own core competencies, leverage knowledge assets, and avoid highly specific fixed assets. The methodology will be: 1) Review the literature as to the types of activities in which integrated producer organizations are engaged. 2) Present a theoretical model of strategy analyzing short jump versus long jump ventures. 3) Introduce Relationship Management. 4) Employ a case study example of the theory in practice. This paper theoretically analyzes producers' vertical integration through "brick and mortar" investments, such as hog slaughter and ethanol production. A theoretical model using strategic management theory and a case study are used to critique the long jump strategy and suggest relationship management as a more viable alternative.Agribusiness,