Supply chain decision making supported by an Open books policy

Based on a study of a buyer–seller relationship in the automotive industry, this article identifies 17 different decision-making processes where openly sharing cost data—a so-called open books policy—plays an important supporting role. These processes relate to supplier selection, various activities that occur prior to production, and the full-speed production stage of the exchange process. Overall, open books plays the greatest role in the pre-production stage, although it is found to support decision-making relating to supplier selection and decision-making during full-speed production to a greater extent than the literature recognizes

Generation of human and structural capital: lessons from knowledge management

Interorganizational and social relationships can be seen as part of the intellectual capital of a firm. Existing frameworks of intellectual capital, however, fail to address how relationships should be managed to generate more intellectual capital. Drawing on the interaction approach and the fields of intellectual capital and knowledge management, this paper develops a framework for managing relationships. The framework is illustrated with a case study. It is also noted that firms can improve relationship management and thus generate more intellectual capital

Social cross-functional vendor selection in technologically uncertain sourcing situations

Based on an in-depth case study of an automotive manufacturer sourcing parts for high technology projects, this study investigates the intentions and structure of socialization within and between firms during the supplier selection process in technologically uncertain sourcing situations. Here, we aim to answer the question of how socialization can hedge against the high levels of uncertainty for manufacturers selecting suppliers of high technology resources. The case represents a major automotive manufacturer in Northern Europe, and is based on 38 semi-structured interviews with representatives of the different functions involved in the sourcing for the new development projects. Our data suggest that internal and external socialization during the supplier selection process can improve internal alignment and problem solving, and external familiarity towards the sourcing task. In this context, socialization took place on functional, cross-functional, and (inter)corporate levels, with higher functional autonomy during the assessment, and higher cross-functional integration during negotiations and decision making, adding to the debate on whether functions should be integrated or separated

Managing appropriation concerns and coordination costs in complex vendor relationships: Integration and isolation as governance strategies

Many studies have shown that the inter-organizational governance mechanisms required to manage appropriation concerns come into conflict with the mechanisms needed to manage coordination costs. Research has, however, largely left unanswered the question of how client organizations govern complex vendor relationships that involve multiple categories, transactions, and activities where appropriation concerns and coordination costs must be managed simultaneously. We propose that this may be achieved by utilizing two strategies; while integrating some activities, transactions and categories, others can be isolated. Drawing on 23 interviews as well asprocedural documents associated with vendor management, this study examines how a leading automotive manufacturer governs relationships with three vendors. The analysis reveals how corporate and operational-level staff combine formal and informal governance mechanisms as they pursue integration and isolation strategies, enabling the client organization to maintain and develop longterm complex relationships. Our findings lead us to question a tendency in the literature to regard isolation as negative and integration as an ideal strategy for managing long-term relationships. Only when utilized in tandem will isolation and integration strategies enable organizations to align the conflicting governance mechanisms required to manage appropriation concerns and coordination costs

Exploring entrepreneurial learning: A comparative study of technology development projects

In this paper, we report findings from a comparative study of factors that influence the learning process that underlies entrepreneurial innovation, as entrepreneurs move from an initial intuition to a well-developed new product or service. Evidence from our comparative study highlights the self-reinforcing effect of prior related knowledge, perceived incentives and the degree of control on the allocation of entrepreneurs' limited time, attention and resources. Combining theory and evidence from our study, we propose an interpretative model that suggests that innovation in entrepreneurial ventures rests on self-reinforcing learning cycles that lead entrepreneurs to dedicate increasing resources to the exploration of some opportunities at the expense of others, following a sensemaking process affected by their previous knowledge and their degree of involvement in the projects

The interplay between social capital and international opportunities: a processual study of international ‘take-off’ episodes in Chinese SMEs

The paper presents a processual analysis of international take-off episodes in Chinese SMEs. In considering the dynamics of pre-internationalization, the paper posits four temporally finer-grained, phases based on an actor’s orientation towards international opportunities. Based on a sample of twenty Chinese SMEs, the paper theorizes 12 temporally fine-grained take-off episodes, or which appear in practice as a series of tactical moves through which Chinese SMEs advance through the four phases in the longer pre-internationalisation of the process. By considering the multi-dimensional nature of social capital in international take-off, the findings contribute to a greater understanding of how forming international relationships work in the context of pre-internationalization in SMEs, also adding insights into the dynamics of internationalisation as an entrepreneurial and networked endeavour

Internationalisation as a process of strategy and change : A study of 16 Swedish industrial SMEs

This thesis reports a study of the internationalisation processes of 16 industrial SMEs located in the county of Jönköping (Sweden). More specifically, it identifies changes in international strategies, identifies reasons why changes are undertaken and discusses how these changes can be understood when placed in the context of the internationalisation process. The findings show that industrial SME managers tend to stress the importance of foreign sales but are often much more reluctant to buy products abroad. This means that while changes in foreign sales market strategy occur frequently in many firms, the process of foreign sourcing market expansion unfolds more slowly, involving fewer markets. The findings also indicate preferences for a low degree of complexity in foreign sales and purchasing. Therefore, industrial SMEs typically become involved in more complex ventures like foreign subsidiaries only when this is perceived as necessary, for example when there is risk of losing a foreign market. Mostly, changes in industrial SMEs’ international strategies are undertaken as responses to external opportunities, such as unsolicited orders. Changes much less frequently find their origin in internal initiatives. This pattern appears to pervade throughout the internationalisation process, even if a more critical attitude towards potential changes arises with increasing experience