Networking strategy for competitive advantage

This paper explores the potential of networking strategy as a source of competitive advantage by integrating market- based and resource-based logics. It contributes to operations management literature by considering not just supply chain structures but also others kinds of network that can emerge from horizontal agreements (i.e. alliances, partnerships, joint ventures, etc.). The paper reviews the literature and develops propositions regarding how make/buy/make together decisions, governance mechanisms and network-base structures allow firms both to pursue operations performance objectives and obtain/create valuable resources. A case study supports the propositions and shows a practical application of the presented research framework

Closed-loop supply chains: What reverse logistics factors influence performance?

This paper analyses the inventory and order flow dynamics in closed-loop supply chains (CLSCs). In this kind of supply chains the reverse flow of materials entering the system for recycling purposes complicates the way in which inventories should be managed and replenishment policies should be designed. Specifically, we analyse the relationships between some reverse logistics' factors (remanufacturing lead-time, return rate of recycled products, reverse order policy, and number of supply chain tiers) on the order and inventory variance amplification. We firstly perform a systematic literature review of the related studies. Secondly, by adopting a difference equation math approach and design of experiment we perform a robust what-if analysis of a CLSC under a variety of operational and market conditions. Results show that, ceteris paribus, CLSC outperforms a forward supply chain, both in mono-echelon and multi-echelon structures and under both stationary and turbulent market demands. Furthermore, reducing remanufacturing lead-time and promoting information transparency may be crucial to improve CLSC dynamics. Finally, we use the research findings to provide interesting managerial consideration about how to reduce unnecessary operational members' costs

How firms are using networking decisions to achieve strategic objectives: Building theories from four case studies

Many research studies in OM literature have investigated how different kinds of focal firm decisions regarding business vertical relationships (i.e. with both suppliers and buyers) can positively affect firm’s operations performance and thus improve its competitive position. In this paper we extend this genre of study by also considering business horizontal relationships (i.e with competitors and firms that own complementary capabilities) and by considering the impact of business relationships not only on focal firm’s operations performance but also on its resources endowment. We present four cases that describe what are the strategic manager intents (in term of operations performance and resource endowment) when make decisions about both vertical and horizontal business relationships (i.e. networking strategy). Using theory building through case studies, we identify four archetypes of networking strategy. Each type of networking strategy is a unique configuration of the set of networking decisions adopted and the set of strategic objectives pursued

Business agreements objectives and decisions: a field research

Purpose - Many research studies in operations management (OM) and strategic management (SM) investigate how different kinds of firm decisions regarding business relationships can positively affect firm’s operations performance, resources endowment, and competitive position. Very few studies exist, however, trying to illuminate the actual behavior of managers when making strategic decisions about their company relationships with other companies, as opposed to normative theory. The purpose of this paper is to explore linkages between the “set” of strategic objectives that managers are willing to pursue, the “set” of networking decisions they make, and the “set” of business agreements they sign. Design/methodology/approach – In order to investigate and explore actual manager behaviours about networking strategy, we adopt multiple-case study-based field research. We collect data on 13 business agreements from 3 manufacturing firms in the mechatronic industry in Italy. Within-case and cross-case analyses are mainly used for theory building purposes. Findings – Empirical data allow us to identify four different archetypes of networking strategy. The archetypes capture different connections between “set” of strategic objectives that managers are willing to pursue, “set” of networking decisions that they consider, and “set” of strategic agreements that they actually adopt. Specifically, the identified archetypes are named Multi-alignment, Multi-agreement (Diversification), Multi-objective, and Mono-alignment (Focus) and are related to different association multiplicities among objectives, decisions, and agreements. The implications related to these archetypes are three-fold. First, the Multi-alignment archetype suggests to focus not just on one kind of agreement but on the firm overall portfolio of agreements to understand how different kinds of agreements and networking decisions can play a complementary role in achieving firm’s pre-fixed business objective/s. Second, the Multi-agreement archetype suggests that managers can minimize the risk of loosing the potentiality of networking collaboration by undertaking different kinds of agreements for the same strategic objective. Third, the Mono-alignment (Focus) and Multi-objective archetypes suggest that also just one agreement can potentially pursues one or multiple strategic objectives and thus can allow managers to minimize the cost of managing several networking relationships. Originality/value – The originality of this study consists in exploring linkages between objectives, decisions and networking agreements without specifically focusing on: 1) either vertical or horizontal relationships as, contrarily and respectively, most of the OM and SM papers on business relationships usually do, 2) either operations performance (positioning school) or resource endowment (resource based view school) strategic objectives as, contrarily, most of the OM and SM papers on strategic alignment usually do; 3) any specific kind of agreement contract (outsourcing, alliance, joint venture, etc.) as usually most of the OM and SM papers usually do. This paper comes up with four different networking strategy archetypes that represent different way of matching “set” of networking decisions, strategic objectives and business agreements. They are not related to either vertical or horizontal relationships, either operations performance or resource endowment objectives, and to any contract agreement specific form

Open innovation and firms' performance: State of the art and empirical evidences from the bio-pharmaceutical industry

The research presented in this paper explores the effect of inbound, outbound and coupled open innovation practices on firms' performances in the biopharmaceutical industry. Specifically, although existing researches on open innovation effectiveness have separately investigated the effect of open innovation practices on innovation and financial performance, this study evaluates the concurrent effect of these practices on both such performance dimensions in a single framework. We state the importance for a manager to explore concurrently the influence of specific open innovation practices both on innovation and economic-financial performance. We empirically test our framework on a sample of 120 companies listed on the NASDAQ biotechnology index

External knowledge sourcing for R&D activities: antecedents and implications of governance mode choice

This paper investigates how internal and external factors affect the choice between alliances and joint ventures (A&JVs) and mergers and acquisitions (M&As) for the external sourcing of research and development (R&D) activities, and whether or not such a choice is really con- tingent, that is, is it the best choice in terms of its impact on firms’ innovative performance under those circumstances? We build a set of hypotheses based on both the transaction-cost theory and the resource-based view, and test them through a secondary data source analy- sis. We found that companies adopt either R&D M&A or A&JV depending on internal (e.g. resources and capabilities, innovation experience) and external (e.g. degree of industry spe- cialisation) factors. Surprisingly, this contingent choice turns to be effective on innovative performance only for the internal factors, rather than the external. This paper contributes to inter-firm relationships literature by presenting the real advantages of using integrated and contingency theoretical models to understand contingent decisions

Groupthink and Project Performance: The Influence of Personal Traits and Interpersonal Ties

This study explores whether the negative impact of "groupthink concurrence-seeking behavior" (GTB) on business process reengineering (BPR) projects is affected by group members personal traits and interpersonal ties within the group. To this purpose we conduct and present the results of a longitudinal controlled field experiment over 18 BPR projects lasting 3 months and involving 18 teams comprising 71 first-year MBA students. The main contribution of this study is twofold. First, we explicitly consider and measure the core construct of groupthink phenomenon: that is, GTB. Existing organizational behavior literature has, contrarily, considered only its causes, symptoms, and outcomes. Second, we show evidence that GTB does have a negative impact on group performance in BPR project settings. In this regards, results also indicate that while perceived control, conscientiousness and interpersonal evaluation mitigate the negative impact of GTB on group project performance, confidence, and previous relationships amplify this negative impact, even if they have a direct positive effect on performance. Thanks to the findings of this study, we are able to provide valuable suggestions to managers in charge of BPR projects for ensuring effective performance of project teams and controlling for potential obstacles due to GTB

Inventory record inaccuracy in supply chains: the role of workers’ behavior

Purpose This research aims at exploring the effect of inventory record inaccuracy due to behavioral aspects of workers on the order and inventory variance amplification. Design/methodology/approach We adopt a continuous-time analytical approach to describe the effect of inbound throughput on the inventory and order variance amplification due to the workload pressure and arousal of workers. The model is numerically solved through simulation and results are analyzed with statistical general linear model. Findings Inventory management policies that usually dampen variance amplification are not effective when inaccuracy is generated due to workers’ behavioral aspects. Specifically, the psychological sensitivity and stability of workers to deal with a given range of operational conditions have a combined and multiplying effect over the amplification of order and inventory variance generated by her/his errors. Research limitations/implications The main limitation of our research is that we model workers’ behavior by inheriting a well-known theory from psychology that assumes a U-shaped relationship between stress and errors. We do not validate this relationship in the specific context of inventory operations. Practical implications The paper gives suggestions for managers who are responsible for designing order and inventory policies on how to take into account workers’ behavioral reaction to work pressure. Originality/value The logistics management literature does not lack of research works on behavioral decision making causes of order and inventory variance amplification. Contrarily, this paper investigates a new kind of behavioral issue, namely the impact of psycho-behavioral aspects of workers on variance amplification

Methodological approach to study the dynamics of production networks: Discrete-event simulation modelling

This paper shows how discrete-event simulation represents an appropriate tool for approaching the dynamics of production networks. Three important factors influencing production network dynamics, specifically finite production capacity, manufacturing lead time, and its variability are discussed and a basic discrete-event simulation model is presented. Such model, which in its basic form represents a simple retail/distribution two-stage supply chain, is then extended in order to take into account those factors that can not be included in a classical control theoretical model

Do horizontal relationships matter to production and operations managers?

This paper shifts the focus of production, operations and supply chain management business relationships from the vertical to the horizontal side and calls for more research on this issue. The main intent is to provide managerially oriented arguments regarding the linkages between the achievement of operations-related goals and decisions related to horizontal business relationships. Specifically, we address the following research question: Does a linkage exist between production and operations objectives and the decisions a company makes about horizontal agreements, particularly horizontal governance mode choice? To answer this research question, we develop literature-based hypotheses and collect data from 4316 agreements of mergers and acquisitions and alliances and joint venture announced and completed between 2000 and 2010 by 88 of the first 100-ranked members of the Fortune 500 in the year 2000. We then test the hypotheses through a binary logistic regression model. This study brings interesting results and findings in terms of how and why production management considerations should play a crucial role in the type of strategic decisions that are usually reserved for finance and strategy managers. Operations managers should be fully involved in such decisions if they are to be well acquainted about how their choices impact on operational objectives