Exploring the Multiplex Architecture of Supply Networks

This paper attempts to provide quantitative and statistically significant evidence on the multiplex nature of a multi-tier supply network. The unique primary data consisted of component-level supply networks is analyzed to examine the interrelationships among their architectural properties based on various network tie types. All the supply network partners’ bidirectional responses stretching from an OEM to its raw materials suppliers are collected and treated as directed-valued in the analysis. Our findings collectively show that different types of supply network ties across multiple tiers of supply chain partners shape different supply network architectures

A Dynamic Pricing Game Investigating The Interaction Of Price And Quality On Sales Response

There is some question as to whether or not consumers use price as an indicator of product quality. In the case of non-durable goods there is some evidence that consumers do equate higher price products with higher quality products. These products are those that the consumer must experience personally before making a judgment on the product quality. In the case of durable goods there is less empirical evidence to support the price-quality connection. This paper develops a dynamic game model to investigate the price-quality connection in the presence of competition.  Specifically, the paper investigates whether or not the optimal pricing strategy in the case of a durable good, where consumers may collect quality information about the product as units diffuse into the market, should be a high quality-high price strategy or a high quality-low price strategy. This question is examined by means of a dynamic game model, which is an extension of the Narasimhan-Ghosh-Mendez (NGM) quality diffusion model. The paper explicitly incorporates competition into the NGM model. Price trajectories for two competing firms are derived so that profits are maximized for the two competitors. It is shown that the price trajectory for the firm using quality as a strategic lever is shown to be lower than that of the firm that was not using a quality strategy. This result strongly suggests that a firm pursuing a quality strategy should couple this strategy with a lower price than its competition and should not couple high prices with high quality in an effort to signal the product’s superior quality to consumers.&nbsp

Supplier Evaluation and Rationalization via Data Envelopment Analysis: An Empirical Examination

Strategic evaluation of supplier performance assists firms in improving their operations across a variety of dimensions. Specifically, it aids in supplier process improvement, which in turn enhances firm performance, allows for optimal allocation of resources for supplier development programs, and assists managers in restructuring their supplier network based on performance. In order to address these issues, this article proposes a methodology for effective supplier performance evaluation based on data envelopment analysis (DEA), a multi-factor productivity analysis technique. The efficiencies derived from the DEA model are utilized in conjunction with managerial performance ratings in identifying supplier clusters, which are categorized into high performers and efficient (HE), high performers and inefficient (HI), low performers and efficient (LE), and low performers and inefficient (LI). Effective benchmarks from the HE cluster are identified for improving the operations of suppliers in the HI, LE, and LI clusters. Finally, managerial insights and implications from the study are discussed.Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/72517/1/j.1745-493X.2001.tb00103.x.pd

An Examination of the Effect of Continuous Quality Improvements on Optimal Pricing for Durable Goods

This paper investigates the nature of optimal prices for a durable good in the presence of continuous quality improvements. The analysis of optimal prices is based on a nonlinear dynamic model of sales response that relates price, quality, average life of a product and the persistence of quality perceptions. Numerical solutions to the model are derived by employing the generalized reduced gradient algorithm. The results show that optimal price depends on the persistence of quality perceptions and the average life of a product (an aspect of quality). The analysis of optimal results affirms results based on other models and provides insights on the influence that quality has on optimal pricing. The implications of the results and suggestions for future research are discussed.Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/71882/1/j.1540-5915.1996.tb00858.x.pd

An Examination of the Relationship Between Environmental Practices and Firm Performance

Recently, there has been a great deal of interest in the research literature regarding how environmental practices (EPs) can improve firm performance. According to Rondinelli and Vastag (1995), firms may have been reacting to an increasingly difficult regulatory environment or responding to market pressure. Either way, the responses of firms to environmental pressures has led to practices that impact profitability. Currently, more firms are trying to understand the benefits of a proactive approach to environmental policies. Some firms may be motivated to become environmentally proactive since it could lead to more efficient use of resources and improve corporate image. Despite this intuitive argument, many firms are reluctant to take a more aggressive and proactive approach to EPs, due to a dearth of evidence that benefits exceed the costs of pursuing these initiatives. This attitude is attested to by the relatively low number of ISO 14000 certifications that have been issued to U.S. firms (NIST 1998, ISO 2001)

A Framework for Corporate Environmental Practices and Its Applications for Enhancing Environmental Mangaement

The research reported in this paper explicates environmental management practices more comprehensively than has been attempted previously. Environmental management practices are grouped into those that relate to operational, tactical and strategic levels of a firm. While these firms engage in many environmental practices to varying degrees, the results of this study suggest many firms are emphasizing a subset of practices at the operational and strategic levels. The conceptual framework and results of this study can be used to develop measurement scales to guide additional research in this area

Environmental Management Practices: A Framework

The research reported in this paper develops a framework for environmental management practices (EMPs). Specifically, EMPs are grouped into the formal systems that integrate environmental procedures and processes that relate to the operational, tactical and strategic levels of a firm. Content analysis of the environmental reports of 45 multinational firms reveals the validity of the proposed EMP framework. The results of this qualitative study suggest many firms are emphasising a subset of practices at strategic and operational levels but tactical practices remain underutilised. The conceptual framework and results of this study can be used to develop measurement scales to guide additional research and to develop theory in the area of environmental management

Acquisition of Operations Capability: A Model and Test across US and European Firms

In this paper, a three-factor model of operations capability is presented which, unlike previous studies that view capability as an outcome, examines the drivers of capability acquisition. The model proposes that capability acquisition is a function of an organization\u27s commitment to the principles of quality management, just-in-time practices, and effective new product development processes. Furthermore, the paper proposes that these underlying facets of capability acquisition are common across geographic boundaries. The model is tested using data drawn from US and European companies. Results not only provide support for the three-factor model, but also for the invariance of the model and its underlying components between US and European firms

Procedural justice in procurement management and inclusive interorganizational relations:An institutional perspective

This paper applies the concept of procedural justice to one of the most important focal points of interorganizational relations: the purchaser-supplier relationship. The few extant studies of the concept in the purchaser-supplier domain have overlooked an important aspect of this key relationship: that is, inclusiveness in procurement. This is despite the fact that interest in the specific empirical context of supply chain links between large purchasing organizations (LPOs) and ethnic minority suppliers (EMSs) from disadvantaged communities proceeds apace on both sides of the Atlantic. Institutional theory is used to examine the form that procedural justice takes in eight case studies of LPOs from the private and public sectors, which actively engage with inclusive procurement management initiatives in England. The guiding question is twofold: 'What may LPO approaches to installing procedural justice in procurement management entail?' and 'How are these approaches shaped?' This paper identifies specific approaches to installing procedural justice for inclusive procurement and submits theoretical propositions about how these are shaped. The study contributes to a macro-level assessment of procedural justice, i.e. interorganizational procedural justice, as a significant aspect of inclusive interorganizational relationships, which is a domain in need of theoretical development