Implementing supplier integration practices to improve performance: The contingency effects of supply base concentration

Companies are recently facing increasing supply chain disruptions that may influence their supply base design choices. However, studies investigating how these choices affect the effectiveness of other supplier management practices, such as supplier integration, are scarce. The aim of this paper is to explore the impact of various types of supplier integration on the buyer's efficiency and innovation, as well as the contingency effects of supply base concentration, an important supply base design choice. Drawing upon Social Exchange Theory, we argue that the expected benefits of supplier integration activities to efficiency and innovation are strengthened by supply base concentration. We test our hypotheses using data collected from 324 manufacturing plants. Hierarchical regression results reveal that some supplier integration types improve performance only under higher levels of supply base concentration, while the effects of other supplier integration types vary according to the type of performance considered or are not significant at all. In addition, the results suggest that developing technologies to share information with suppliers may be counterproductive in driving efficiency. Besides enriching the supplier integration literature, this research offers guidance for managers who wish to improve efficiency and innovation, while also considering the pros and cons of supply base concentration

Managing operations across the supply chain

Bai

Presenting Map-based Information When Using Geographic Information Systems

Geographic information systems (GIS) have taken on an increasingly important role supporting organizational decision making. The effectiveness of GIS as a decision support tool comes primarily from the visual display of data in the form of maps. When presenting information as a geographic map, the level of data aggregation used potentially affects aspects of task complexity such as information load and the potential for pattern recognition by the user. Other task attributes related to data aggregation effects include problem size, data dispersion, and users’ spatial orientation skills. Results from an experiment indicate that all of these map information characteristics have significant influence on decision performance

Managing operations across the supply chain, 2nd ed./ Morgan Swink (et al)

xxxii, 603 p.: ill, tab.; 28 cm

Product Portfolio Architectural Complexity and Operational Performance: Incorporating the Roles of Learning and Fixed Assets

Managers struggle to cope with complexity in their product portfolios. However, research into diversification, product platforms, and other issues related to product portfolio complexity has often produced inconsistent guidance. This situation is at least partially attributable to an incomplete definition of portfolio complexity, and to corresponding limitations of theories applied to date. To address these limitations, we define product portfolio complexity as a design state manifested by the multiplicity, diversity, and interrelatedness of products within the portfolio. We conceptually establish the three-dimensional nature of complexity and present a model to provide insights into how each dimension impacts operational performance. As an extension to prior theoretical perspectives, the model explicitly addresses the roles of organizational learning and the character of fixed assets (utilization and flexibility) as mediator and moderator of product portfolio architectural complexity\u27s effects, respectively. We also incorporate the principle of diminishing returns to address potential non-linearities in the proposed relationships. Prior theories and research studies have neglected these issues. We conclude by discussing useful perspectives with which to view the model, and by presenting measures of portfolio complexity and approaches for testing the propositions developed herein

Contingency role of a Supplier\u27s operational efficiency in the customer relationship – performance links

Purpose: Extant studies on the relational capital—performance benefits in buyer–supplier relationships (BSRs) give limited attention to the value of internal resources/capabilities possessed by each party, thus imply the universal benefits of relational capital regardless of a party\u27s own abilities. To fill this gap in the literature, this paper aims to investigate whether and how a firm\u27s operational efficiency moderates the relation between its relational ties with the largest customer and its performance outcomes. Design/methodology/approach: This study employs a large panel data of US public firms and their major customer relationships for the period of 1980–2018 from Compustat and a two-stage least square regression to address endogeneity concerns. Findings: The authors find that suppliers achieve different performance benefits and disbenefits from their relational ties with major customers depending on their own operational efficiency. Specifically, strong suppliers achieve higher market share and lower profitability as relational ties with major customers increase. In contrast, weak suppliers who develop high levels of relational ties with their major customers tend to increase their profit-generating potential, yet their market share declines. Thus, the findings suggest that suppliers make different trade-offs between profit enhancement and pie expansion depending on their operational efficiency. Research limitations/implications: As a secondary data study, this research relies on proxy measures to capture relational ties in BSRs. Although the validity of the proxy measures are well established in the literature, additional primary information on sample firms and their relationships may be able to identify other types of internal and external resources and capabilities that can be leveraged as relational capital. Practical implications: Relational ties with major customers entail both relational capital and relational liabilities. Strong suppliers trade off their profit-maximizing potential for the pie expansion opportunity via sales growth to major customers. On the other hand, weak suppliers achieve higher profits from relational ties with major customers, but this benefit comes at the expense of pie expansion due to decreasing sales to major customers. Managers should be aware of performance trade-offs between profit enhancement and pie expansion depending on a firm\u27s internal capabilities and carefully choose to develop and exploit relationship-based assets with customers depending on their performance goals. Originality/value: The contrasting performance outcomes demonstrated by strong and weak suppliers in this study challenge the prevailing assumption about the broad performance benefits of relational ties in BSRs. To the best of the authors’ knowledge, this research is the first to empirically substantiate the contingency role of suppliers\u27 operational efficiency in the relational capital—performance link

Managing operations across the supply chain, 2nd ed./ Morgan Swink (et al)

xxxii, 603 p.: ill, tab.; 28 cm