Leveraging Open-standard Interorganizational Information Systems for Process Adaptability and Alignment: An Empirical Analysis

PurposeThe purpose of this paper is to understand the value creation mechanisms of open-standard inter-organizational information system (OSIOS), which is a key technology to achieve Industry 4.0. Specifically, this study investigates how the internal assimilation and external diffusion of OSIOS help manufactures facilitate process adaptability and alignment in supply chain network.Design/methodology/approachA survey instrument was designed and administrated to collect data for this research. Using three-stage least squares estimation, the authors empirically tested a number of hypothesized relationships based on a sample of 308 manufacturing firms in China.FindingsThe results of the study show that OSIOS can perform as value creation mechanisms to enable process adaptability and alignment. In addition, the impact of OSIOS internal assimilation is inversely U-shaped where the positive effect on process adaptability will become negative after an extremum point is reached.Originality/valueThis study contributes to the existing literature by providing insights on how OSIOS can improve supply chain integration and thus promote the achievement of industry 4.0. By revealing a U-shaped relationship between OSIOS assimilation and process adaptability, this study fills previous research gap by advancing the understanding on the value creation mechanisms of information systems deployment

Evolution of Supply Chain Collaboration: Implications for the Role of Knowledge

Increasingly, research across many disciplines has recognized the shortcomings of the traditional “integration prescription” for inter-organizational knowledge management. This research conducts several simulation experiments to study the effects of different rates of product change, different demand environments, and different economies of scale on the level of integration between firms at different levels in the supply chain. The underlying paradigm shifts from a static, steady state view to a dynamic, complex adaptive systems and knowledge-based view of supply chain networks. Several research propositions are presented that use the role of knowledge in the supply chain to provide predictive power for how supply chain collaborations or integration should evolve. Suggestions and implications are suggested for managerial and research purposes

Relational Learning and Organizational Cultural Intelligence

Learning occurs at the individual and organizational, as well as within one organization and in interaction in a network of organizations. This paper explores relational learning, inter-organizational setting, in the cross-cultural setting. Relational learning includes in: information sharing, joint sense-making, and integration of knowledge among two or more organizations or partners. We propose that national cultural differences, values, and context of communication, influence relational learning, but organizational cultural intelligence translates relational learning to relationship performance. We conclude our paper with implications for managers/organizations and the avenues for future research

Small and Medium sized Enterprises’ Collaborative Buyer-Supplier Relationships: Boundary Spanning Individual Perspectives

Boundary-spanning individuals (BSIs) play a critical role in supply chain management, especially in small and medium sized enterprises (SMEs) where interactions with buyers and suppliers can depend heavily on just a few individuals. This study, utilizing data from Korean manufacturing-sector SMEs, explores whether cooperative social value orientations of SMEs’ BSIs influence the effects of collaborative buyer-supplier initiatives. The results suggested that the performance implication of decision-sharing initiative increases when BSIs have a high level of cooperative social value orientation. However, it also negatively moderates the relationship between risk/benefit sharing (involving financial losses or gains) and performance suggesting possible negative side-effects. However, we found that such orientation also negatively moderates the relationship between risk/benefit sharing (involving direct financial losses or gains) and relationship performance suggesting possible negative side-effects

A Conceptual Framework of Reverse Logistics Impact on Firm Performance

This study aims to examine the reverse logistics factors that impact upon firm performance. We review reverse logistics factors under three research streams: (a) resource-based view of the firm, including: Firm strategy, Operations management, and Customer loyalty (b) relational theory, including: Supply chain efficiency, Supply chain collaboration, and institutional theory, including: Government support and Cultural alignment. We measured firm performance with 5 measures: profitability, cost, innovativeness, perceived competitive advantage, and perceived customer satisfaction. We discuss implications for research, policy and practice

Information Sharing in Multi-Tier Supply Chains - Moving Beyond the Dyads

As international competition increased towards the end of last century, companies realized the importance of collaborating and sharing information with suppliers and customers to remain competitive. By sharing information such as forecasts of future demand with partners in the supply chain, it was possible to lower inventory holding costs and increase the service level to customers, and thereby increase the competitiveness of the involved companies. Previous research has proposed several benefits related to information sharing in supply chains. Suggested benefits include, for instance, better planning and scheduling of production lines, improved allocation and utilization of resources for transportation and warehousing, and reduced inventory levels and tied-up capital. However, it appears that few companies have been able to implement and benefit from information sharing. Several researchers conclude that information sharing in the supply chain is limited. Particularly, it seems as if companies have not been able to benefit from sharing information across multiple tiers in the supply chain. The lack of information sharing across multiple tiers is a challenge which is important to address considering that companies continue to struggle with problems related to the, so called, bullwhip effect. A supply chain which suffers from the bullwhip effect can experience distorted demand information as it is shared upstream in the chain. Such variations in demand information can lead to incorrect production planning and thereby alternately high inventory levels and increased costs for overtime and rush orders. Against this background, several questions arise: For what reasons do companies refrain from sharing information across multiple tiers despite the fact that literature suggest that it is beneficial? Further, are there any companies that have implemented information sharing across multiple tiers and, if so, what are the documented benefits? Searching the answers to these questions reveals a gap in literature in that the majority of previous research studies have focused on dyadic relationship (i.e. supplier-buyer) instead of multi-tier supply chains (e.g. supplier-manufacturer-customer). The purpose with this dissertation is therefore to move beyond the dyads and explore information sharing in the supply chain, and investigate opportunities and challenges involved with sharing information across multiple tiers. The purpose is addressed in three separate but connected studies. Following a pilot study, a systematic literature review is conducted to establish current knowledge in the research area. Thereafter, two empirical studies are conducted: a case study which maps an entire supply chain where data is collected from multiple tiers; and a Delphi study including a panel of experts who share their insights through multiple questionnaires. The findings indicate that companies, for different reasons, refrain from sharing information across multiple supply chain tiers. One reason is the many challenges involved with implementing information sharing across multiple supply chain tiers. The major challenges include lack of trust between companies; lack of information quality; difficulties to share risks and benefits; lack of business processes; and the lack of a dominant player who can initiate change in the supply chain. Many companies are also preoccupied with internal issues and lack the ability to engage in information sharing across the supply chain. Another reason, from the perspective of contingency theory, seems to be that information sharing across multiple tiers is only beneficial in few, particular contexts. Such contexts relate to planned changes in the supply chain, for example in relation to new product introductions when future demand is uncertain. Findings also suggest a negative inter-relation between important and feasible contexts. In other words, in cases where it is possible to implement information sharing it is perceived to be less valuable and in cases where it is more valuable it is more difficult to implement. The findings further suggest that companies focus their information sharing with supply chain partners that represent high intensity of interdependence. Interdependence theory can thus help to explain why companies mostly share information with dyadic, strategic partners where the partners represent a large percentage of each other’s portfolio and turnover. Moving beyond the dyads, the intensity of interdependence is reduced as firms are embedded in many networks and often have multiple suppliers and customers. The willingness to engage in multi-tier information sharing is therefore reduced. This dissertation, which is one of the first to study information sharing in the extended supply chain, indicates that information sharing across multiple tiers is a rare phenomenon in industry. The dissertation also points out that several aspects must be considered to be able to implement and benefit from information sharing across multiple tiers. One of the contributions of the dissertation is a conceptual framework which can be used to guide future research and also function as decision support for companies to address and implement multi-tier information sharing

Value appropriation in business exchange: literature review and future research opportunities

Purpose – Value appropriation is a central, yet neglected aspect in business exchange research. The purpose of the paper is to generate an overview of research on active value appropriation in business exchange and provide the foundation for further research into value appropriation, as well as some initial guidance for managers. Design/methodology/approach – Literatures investigating value appropriation were identified by the means of a systematic review of the overall management literature. Findings – The authors provide an overview and comparison of the literatures and find that they apply diverse understandings of the value appropriation process and emphasize different mechanisms and outcomes of value appropriation. Research limitations/implications – Based on the literature comparison and discussion, in combination with inspiration from alternative business exchange literature, the authors propose four areas with high potential for future research into value appropriation: network position effects, appropriation acts and behaviors, buyer-seller relationship effects, and appropriation over time. Practical implications – Boundary spanning managers acting in industrial markets must master the difficult balance between value creation and appropriation. This review has provided an overview of the many managerial options for value appropriation and created knowledge on the effects of the various appropriation mechanisms enabling managers to secure company rents while not jeopardizing value creation. Originality/value – To the authors’ knowledge, this paper represents the first attempt at reviewing the management literature on value appropriation in business exchange. The authors provide overview, details, comparisons, and frame a research agenda as a first step towards establishing value appropriation as a key phenomenon in business exchange research.Chris Ellegaard, Christopher J. Medlin, Jens Geersbr

Exploring Sustainable Supply Chain Management: A Social Network Perspective

Purpose The implementation of sustainable supply chain management (SCM) calls for an acknowledgement of uncertainty inherent in complex environment. Confucianist society forms social networks in Confucianist society, called guanxi networks, influence economic behaviours and business practices in the workplace. The purpose of this study is to explore how these social networks influence the implementation of sustainable SCM. In doing so, this study aims to critically investigate the constructs of guanxi networks, their impact on flow of supply chain capital and how this leverages the implementation of sustainable SCM. Design/methodology/approach Two systematic literature reviews are conducted to understand the constructs of social networks in Confucianist culture and their impacts on the flow of supply chain capitals. The reviews also analyse evidence related to the economic, social and environmental practices to reveal the current state of the literature and research gaps. Propositions and a framework are developed to support future research in this area. Findings The constructs of ganqing, renqing, xinren and mianzi in guanxi networks have expanded the contexts of social networks in Western literature. Guanxi networks increase the flow of supply chain capital and generate trust between players, thus enhancing capabilities to implement sustainable SCM. Guanxi networks also create the mechanism of network governance with which to increase sustainable SCM implementation under the institutional logics of sustainability. Research limitations/implications The conceptual framework and justification are based on the reviews of current studies in the field. Future empirical study is encouraged to test the propositions, both in Confucianist culture and other countries with culture of social networks. Originality/value Social networks are socially constructed concepts. The constructs of guanxi networks revealed in this study have developed the knowledge of Western-based social network theory. Besides, arguments from a social network perspective provide an alternative answer to explain increased behavioural commitment and companies’ investment in sustainable SCM. This study helps practitioners understand the logic of this social norm and to use it to maximise their operation outputs, including sustainable SCM implementation