Network industries in the new economy

In this paper we discuss two propositions: the supply and demand of knowledge, and network externalities. We outline the characteristics that distinguish knowledge- intensive industries from the general run of manufacturing and service businesses. Knowledge intensity and knowledge specialisation has developed as markets and globalisation have grown, leading to progressive incentives to outsource and for industries to deconstruct. The outcome has been more intensive competition. The paper looks at what is potentially the most powerful economic mechanism: positive feedback, alternatively known as demand-side increasing returns, network effects, or network externalities. We present alternative demand curves that incorporate positive feedback and discuss their potential economic and strategic consequences. We argue that knowledge supply and demand, and the dynamics of network externalities create new situations for our traditional industrial economy such that new types of economies of scale are emerging and "winner takes all" strategies are having more influence. This is the first of a pair of papers. A second paper will take the argument further and look at the nature of firms' strategies in the new world, arguing that technology standards, technical platforms, consumer networks, and supply chain strategies are making a significant contribution to relevant strategies within the new economy

Eco-efficient supply chain networks: Development of a design framework and application to a real case study

© 2015 Taylor & Francis. This paper presents a supply chain network design framework that is based on multi-objective mathematical programming and that can identify 'eco-efficient' configuration alternatives that are both efficient and ecologically sound. This work is original in that it encompasses the environmental impact of both transportation and warehousing activities. We apply the proposed framework to a real-life case study (i.e. Lindt & Sprüngli) for the distribution of chocolate products. The results show that cost-driven network optimisation may lead to beneficial effects for the environment and that a minor increase in distribution costs can be offset by a major improvement in environmental performance. This paper contributes to the body of knowledge on eco-efficient supply chain design and closes the missing link between model-based methods and empirical applied research. It also generates insights into the growing debate on the trade-off between the economic and environmental performance of supply chains, supporting organisations in the eco-efficient configuration of their supply chains

Social Innovation in the context of Strategic Knowledge Management Processes for Supply Chain Performance Enhancement

The current knowledge-innovation led economy has regards social innovation and strategic knowledge management processes as a vital combination in addressing social, economic and technological problems in a concurrent way. Strategic knowledge management processes that consist the process of knowledge creation, knowledge transfer and knowledge application creates superior knowledge resource that can be embedded into products, processes and services which makes them highly innovative and ultimately contributes towards improving social well-being, enhance economic growth and also improving technological aspect. In similar vein, supply chain management is an integrated system and network which involves the connection process of supplier-end user relationship in terms of producing and delivering of a product, processes and services to the end users. The various network integration processes within the supply chain management system involves different background and motives of actors which may exposed the system into risks that perhaps may disrupt and affect the supply chain performance. Thus, this paper explores and gives a useful insight on the contribution of superior knowledge resource created within the processes of strategic knowledge management among actors in the supply chain management network. The new superior knowledge resource works as a vital solution to enhance the performance process of supply chain management network by improving external integration with suppliers, external integration with customers, and supply chain risk and therefore, helps to improving the quality of peoples life, stimulate economic growth and enhance technological advances i.e. social innovation

Managing knowledge transfer across supply chain:a social network approach

This paper analyzes the theme of knowledge transfer in supply chain management. The aim of this study is to present the social network analysis (SNA) as an useful tool to study knowledge networks within supply chain, to monitor knowledge flows and to identify the accumulating knowledge nodes of the networks

Packaging development in a core production perspective - a case study at Volvo Cars

Business success is the result of focusing enhancement of the total performance of the supply network. While all products need packaging in different stages in the supply network, packaging producers deliver into a “core” network. Thus they are seldom an integrated actor of the core supply network. Consequently, the more the package and product development can be functionally combined, and integrated to the supply chain system, the greater the possibility of being competitive. This is accepted theoretically, however, industrial consequences are not yet highlighted since empirical knowledge about packaging effects on the entire production and supply network is limited

Contextualizing resilience to critical infrastructure maintenance supply networks

PurposeTo be able to continuously provide affordable services to consumers, managers of critical infrastructure (CI) maintenance supply networks have to balance investments in resilience with costs. At the same time, CI providers need to consider factors that influence resilience such as the geographical spread or the location of the network. This study aims to contextualize supply chain resilience knowledge by exploring how maintenance resource configurations impact resilience and costs in CI supply networks.Design/methodology/approachAn in-depth longitudinal single case study of a representative CI provider that has centralized its maintenance supply network is used. Data were collected before and after the change to evaluate the effect of the changes on the maintenance supply network.FindingsThis study shows that in this specific CI maintenance context, structural resource choices such as the quantity or location of spare parts and tools, the creation and exploitation of tacit knowledge and staff motivation impact both resilience and costs due to geographical spread, network location and other network properties.Originality/valueThis study extends general supply chain resilience knowledge to a new setting (i.e. CI) and shows how existing insights apply in this context. More specifically, it is shown that even in engineered supply networks there is a need to consider the effect of human agency on resilience as the creation and exploitation of tacit knowledge are of immense importance in managing the network. In addition, the relationship between normal accidents theory and high reliability theory (HRT) is revisited as findings indicate that HRT is also important after a disruption has taken place

Rural water supply network making a difference

Intensified experience and knowledge sharing is needed to strengthen sustainability, efficiency and effectiveness in rural water supply. RWSN’s objective to create a vibrant knowledge sharing network uses an integrated approach: locating and capturing experiences and best practices, validating knowledge and extracting lessons learnt, storing knowledge and making it accessible, enabling the creation of new knowledge, disseminating and facilitating sharing of knowledge, and supporting application of knowledge by capacity building and training. Thematic programmes keep networks active and innovative. Originally conceived as the Handpump Technology Network (HTN), RWSN recently decided to focus its work in three specific areas: Cost-effective boreholes, Sustainable Handpumps, and Self-supply, incremental improvements by households. RWSN also maintains its interest in developing and promoting sustainable solutions based handpumps and low-cost technologies. Efficient and effective knowledge sharing needs a well-organised backbone. Step-by-step, RWSN has grown to a leading global knowledge network with about 900 individual and institutional members