How do network resources affect firms' network-oriented dynamic capabilities?

While the extant literature investigating the dynamic capabilities that cross the boundaries of firms (i.e., network-oriented dynamic capabilities) has predominantly focused on the identification of their underlying routines or their impact on the firms' performance, the determinants of these routines have largely remained unexplored. Our study seeks to address this issue by investigating how the attributes of network resources (i.e., assets that belong to or are deployed by actors with whom a firm is connected through direct or indirect relationships) influence firms' network-oriented dynamic capabilities. A multiple-case study including 50 network resource sets embedded in 10 business units of five multinational firms spanning pharmaceutical, aircraft power system, and consumer goods' industries is conducted. The findings reveal the effects of eight network resource attributes on the three clusters of network-oriented dynamic capabilities (i.e., sensing, seizing and transforming) as follows: rarity affects the effectiveness of sensing, complementarity affects the effectiveness of seizing, accessibility and usability affect the efficiency of seizing, scalability and appropriability affect the effectiveness of transforming, and finally utility and versatility affect the efficiency of transforming

Determinants of supply chain structure

This dissertation is a contribution to the study of manufacturing subcontracting, with particular reference to the European Automotive industrial sector. It takes as its central theme, the structure of supply chains - the way in which value addition is split amongst members of the chain. The thesis addresses a central question: What factors determine optimum structure and practice in modem-day industrial supply chains? This devolves into a number of derivative questions to which various parts of the study are addressed. With reference to 24 case study supply chains the investigation first tests whether existing theory can fully explain the changing structures. From the results of these tests a new model is postulated and then further work is carried out to validate the model. It was found that the concentration in existing theory on primarily dyadic relationships meant that when taken alone, current theory was insufficient to explain the changes in supply chain structure in the European automotive industry in the mid to late 1990s. It is felt that the work is novel in that it addresses the whole supply chain, and demonstrates the clear link between the physical structure and other determining success factors. Two methods for recording and systematically comparing both the structure and management practices in supply chains were developed - termed 'Fixed Reference Benchmark' and 'Hierarchical Structure Mapping'. These two models were tested, and used in the comparison of 24 European automotive supply chains. The results of this analysis showed the dominant factors that most heavily influenced the structure of supply chains in the European Automotive Industry to be: Criticality of component (which in turn affects the acceptability of risk), the level, and pace of development of technology for the component or system of the supply chain (which is strongly linked to bargaining power), the desire to reduce the complexity of logistics (which is also linked to acceptability of risk), the desire to reduce the cost of demand fluctuations, and the capital intensity of the production process. It is felt that this study of supply chain structures is valuable in its contribution to new knowledge on three levels. At a theoretical level, it analyses the current theory, exposing gaps and anomalies. At an empirical level it presents contemporary data that in some parts simply substantiates and in others adds to the current theory. On a practical level it aims to present a picture which is of use to practitioners making decisions on the future of individual supply chains

Supplier relationship management best practices applied to the manufacture of a helicopter airframe in China

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Mechanical Engineering; in conjunction with the Leaders for Manufacturing Program at MIT, 2009.Page 67 blank.Includes bibliographical references (p. 65-66).Sikorsky's recently begun program to manufacture the S-76 helicopter airframe at a supplier in China is examined as a case study of supplier relationship management. Best practices and key principles from the literature and other industry case studies are identified. Key concepts covered include: importance of product architecture and supplier strategic role on the appropriate type of supplier relationship to develop; the different stages of relationship management; the concept of making investments in a supplier relationship as a way of achieving desired relationship closeness; the importance of geography and culture on foreign supplier relationships. The best practices and principles are then used to analyze Sikorsky's performance in the China S- 76 airframe program to date. It is found that while Sikorsky is engaged in several key supplier relationship management activities, significant improvement could be made by more carefully considering how to overcome geographic and cultural distance and by making decisions about relationship investments in a more analytical way, with a focus on bottom-line financial impact. Finally, a generalized process for managing supplier relationships is developed. The six steps are: * Determine the appropriate relationship to develop with the supplier * Determine current supply chain proximity with the supplier * Determine stage of supplier relationship management and appropriate type of investments * Develop menu of relationship investment options * Determine the attractiveness of investment options * Select, prioritize and make investments.R. Jon King.S.M.M.B.A

Managing multi-tiered suppliers in the high-tech industry

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2009.Includes bibliographical references (leaves 131-135).This thesis presents a roadmap for companies to follow as they manage multi-tiered suppliers in the high-tech industry. Our research covered a host of sources including interviews and publications from various companies, consulting companies, software companies, the computer industry, trade associations, and analyst firms among others. While our review found that many companies begin supplier relationship management after sourcing events, we show that managing suppliers should start as companies form their competitive strategy. Our five step roadmap provides a deliberate approach for companies as they build the foundation for effective and successful multi-tiered supplier relationship management.by Charles E. Frantz and Jimin Lee.M.Eng.in Logistic

Service company's adaptation of supply chain to cope with volatile oil and gas market

The oil and gas market has great significance across the globe, but the unpredictability in this industry is a huge challenge that affects all the supply chains in this market. These conditions contribute to a competitive and diverse market where service firms struggle to keep productivity in order to lower costs and boost operating performance. This paper gathers data on the oilfield service industry and explore existing literature on service supply chain agility to discover empirically the application of strategies that can be implemented within the sector. The major difficulties and risks faced during an oil crisis were identified through analyses on the performance of the leading global service provider (Schlumberger). Global mobility and supplier related challenges were found to be the main factors that harm the company's capacity to deal with market fluctuations. And the constructive tactics developed to achieve a strategic edge over competition have been used as the foundation of this study. Through executives’ interview, internal documentation research and relevant literature review it was discovered that agility in Schlumberger was attained by establishing supply chain visibility and the development of flexible policies and processes. By leveraging internal capabilities and digital solutions to enhance the procurement activities and overcome the looming risks it´s possible to successfully operate in complex market. A recommendation framework was presented as supply chain managers’ benchmarking scheme. This framework highlighted approaches that can be taken in terms of suppliers, internal capabilities and customers as a way to contribute to greater supply chain agility

VERTICAL INTEGRATION FOR FULL OUTSOURCING: GROWTH AND INTERNATIONALIZATION OF A PORTUGUESE PACKAGING FIRM

Based on a case study of a Portuguese packaging firm, this paper examines how vertical integration of the supplier serves as a vehicle for the full outsourcing of the client firms' needs in a solution that reduces transaction costs, favors specialization, and permits small and mediumsized firms to develop competencies that may be exploited in a wide array of projects. Vertical integration by the supplier (a governance decision) is a strategic response to changes in the sourcing model of the clients. Client-supplier relationships have inter-spatial and inter-temporal value that surpasses spot market exchanges.strategic outsourcing, vertical integration, internationalization, case study

The role of purchasing in the management and performance of supplier relationships: an empirical investigation in service organisations

This thesis investigates the role of purchasing managers (and departments) in supplier relationships( SRs) and assesses the impact of their role on SRs' performance. Driven by the importance of outsourcing in organisations, there is an intense interest in academia in the study of SRs and an increased awareness that purchasing has an important role to play in their management. In the literature however there appears to be an incoherent view of the actual role of purchasing in SRs, which is limited to anecdotal accounts that take the vague assumption that purchasing managers and departments, by virtue of their position in organisations, manage the SRs. The aim of this thesis is to push theory forward by exploring this role in a systematic way and to investigate whether and how it varies across SRs that involve the exchange of products/services with certain structural characteristics.I n that way it generates insights about how the purchasing function can be leveraged to better manage SRs. A multiple case study research design is employed in order to achieve a deeper and greater understanding of the processes that define the actual role of purchasing. Empirical research is conducted in two large service organisations in the UK (a financial organisation and an airport operator), examining seven diverse SRs that involve the exchange of products and services with different levels of asset specificity and criticality. An integrated framework of various activities that purchasing managers are involved in for the management of SRs is developed initially. The way that purchasing managers conduct these activities in the different SRs is then examined to generate insights about the actual role of purchasing in the individual SRs that is defined in terms of four variables (level of contribution to the development of trust in the SR, level of power in the SRs, level of involvement in the SR and level of contribution to the development of commitment in the SR). With the use of a gap analysis model to assess the performance of the individual SRs, the impact of the role of purchasing on SRs performance is finally extrapolated. The results provide support for the following primary conclusion. The widely held assumption that purchasing managers are in effect supply chain managers is tempered by the findings of this research, which observed a far more limited role for purchasing managers (and a negative impact) in the management of SRs relating to products/services which have high levels of criticality and asset specificity. Their negative impact in such SRs was also observed to have implications for the dyadic relationship of the purchasing department with the internal (customer) departments, which under certain conditions can create problems of coordination in the organisations. From a managerial point of view this thesis demonstrates in a systematic way the contribution and role of purchasing to SRs. The framework of activities that is developed may provide a useful reference point for the auditing and improvement initiatives of purchasing professionals in SRs. From this, guidance about the types of situation in which certain activities may be more important than others will provide a useful guide to how purchasing departments may be involved in an effective and efficient way. Academically, this thesis utilises an innovative conceptual method in evaluating SRs by incorporating two major theoretical frameworks and provides with insights in delineating the actual role of the purchasing function in SRs. Finally, the thesis contributes to the ongoing debate of the establishment of a contiguous Supply Chain Management discipline, by investigating its problem domain

The R&D Boundaries of the Firm and the Governance of R&D Alliances: Essays on Institutions, Strategic Considerations and Contract Structure

The three essays in this dissertation examine questions related to the R&D boundaries of the firm and the governance of R&D alliances. The first essay draws on institutional theory to examine the history of corporate R&D in the U.S. since the mid-19th century. Formal and informal institutional rules and constraints are shown to play a role in the initial rise of markets for technology in the 19th century, their decline during the early-20th century, and their eventual return at the end of the 20th century. The influence of formal and informal institutions on the adoption of in-house R&D labs in the US during the mid-20th century is also examined. In the second essay, the focus shifts to an investigation of the discrete project-level R&D outsourcing decision. A framework for understanding the direct and indirect influence of strategic considerations and environmental factors is developed. The impact of project- and transaction-level characteristics on the R&D outsourcing decisions are also considered, highlighting the importance of integrating information possessed by managers from different levels of the firms. Finally, the second essay proposes that cross-level interactions may exist within the framework, which may help to explain why the decisions observed in some cases run counter to the predictions traditionally derived from theory. The third essay includes two empirical studies that examine different aspects of the contracts designed to govern R&D alliances. Using a unique set of contracts from the medical device industry, the studies in the final essay investigate the factors that influence the structure of R&D alliance contracts and the assignment of key decision and control rights in such contracts. In addition, the final essay investigates the impact of previous alliance experience on the relationship between the key factors identified and the structure of R&D alliance contracts