Supply Chain Structure, Inventory Turnover, and Financial Performance: Evidence from Manufacturing Companies in China

Using data collected by the World Bank, we empirically investigate the relationship between Chinese manufacturers’ supply chain attributes, raw material and finished goods inventory turnover, and return on sales. Our findings indicate that location proximity, relationship continuity, and the relative power of the manufacturer over suppliers and customers have a significant impact on inventory performance, which in turn drives profitability. We especially focus on characteristics unique to China’s business environment. We find that Chinese manufacturing companies have relatively weak operational performance, and better operational performance is associated with closer distance, longer relationship with suppliers and customers, and relative power over suppliers. Unlike their counter parties in some developed countries, Chinese manufacturers’ profitability relies on both downstream and upstream inventory performance, with downstream inventory performance playing a somewhat more important role

Special Topic Forum on Supply Chain Management in Emerging Markets: Critical Research Issues

Spurred by the rapid development of international markets, w enhanced ease of communications and rapidly developing infrastructure, supply chains that transcend national boundaries have become standard in today's dynamic global environment, causing a number of critical research issues to emerge. The importance of such issues is intensified when considered in the unique environment faced by supply chains in emerging economies, such as Brazil, Russia, India and China. Traditional supply chain management practices may be ineffective, due to the unique characteristics of supply chains in emerging economies or that span developed and emerging economies. In this special topic forum, we seek high quality conceptual and empirical research that addresses critical research issues related to managing supply chains in emerging economies. Conceptual papers should draw upon and extend existing theoretical foundations, developing models and propositions for future research. Empirical research studies that employ survey methodology, structured case research, secondary data analysis, controlled experiments and other empirical approaches are welcomed. In line with JSCM's mission statement, authors must clearly identify how their work extends or contributes to theory relating to global supply chain management, as well as providing implications for practice

Operational Capabilities: The Secret Ingredient

We develop a theoretical definition of operational capabilities, based on the strategic management and operations management literature, and differentiate this construct from the related constructs of resources and operational practices, drawing upon the resourcebased view of the firm as our foundation. We illustrate the key features of operational capabilities using the illustration of a restaurant kitchen. Because the traits of operational capabilities are distinct, they create a barrier to imitation, making them a potential source of competitive advantage. However, operational capabilities are particularly challenging to measure, because they emerge gradually and are tacit, embedded, and manifested differently across firms. In solving this measurement conundrum, we draw upon similar situations experienced by Schein (2004) and Eisenhardt and Martin (2000) in operationalizing organizational culture and dynamic capabilities. A taxonomy of six emergent operational capabilities is developed: operational improvement, operational innovation, operational customization, operational cooperation, operational responsiveness, and operational reconfiguration. A set of measurement scales is developed, in order to measure each of the operational capabilities, and validated using two different datasets. This allows replication of the psychometric properties of the multi-item scales and helps to ensure the validity of the resulting measures

Comparative Analysis of Resilience by Supply Network Structure

This research applies Kim, et al.’s (2015) supply network structure archetypes to case data related to two disruptions in three industries in Brazil. A total of seven supply networks were studied, through in-depth interviews and archival documents. The findings suggest that there may be additional supply network structures that are relevant. Centralization appears to be a function of the size of the focal firm. There was evidence of an evolution of supply network structures with focal firm size

On Theory in Supply Chain Uncertainty and its Implications for Supply Chain Integration

This article develops a theoretical conceptualization of supply chain uncertainty, based on the foundation provided by contingency theory, classical organization theory, and information processing theory. We develop a theoretical analogy between a supply chain and an organization, then highlight key differences, which leads us to hypothesize that there are three key types of supply chain uncertainty. Micro-level uncertainty is based on the variability of inputs to the technical core of a supply chain, corresponding to the traditional operationalization of uncertainty in the supply chain and operations management literature. Meso-level uncertainty is the lack of information needed by a supply chain member, corresponding to the information processing theory perspective. This is often due to the conflicting pressures of differentiation and interdependence in a supply chain, where members may withhold information that they feel could compromise their interests. Macro-level uncertainty, based on the equivocality construct, is related to unclear and ambiguous situations faced by supply chain members in rapidly changing external environments. We propose that all three types of uncertainty coexist in a supply chain and may interact with each other. Based on contingency theory's focus on alignment of process and structure with the environment, we test the relationship among supply chain integration (process), centralization, formalization and flatness (organization structure) and the dimensions of uncertainty (environment). Hypotheses are tested using hierarchical regression on data collected from 339 globally distributed manufacturing plants. It reveals that, as hypothesized, micro-level and meso-level uncertainty are positively related to SCI and that macro-level uncertainty is inversely related to it. The organization structure variables of centralization and formalization had a moderating effect, strengthening or reducing the main effects of uncertainty. The results are discussed in terms of their consistency with the theoretical foundation, implications for decision makers facing supply chain uncertainty and future research opportunities

The impact of supply chain integration on performance: A contingency and configuration approach

This study extends the developing body of literature on supply chain integration (SCI), which is the degree to which a manufacturer strategically collaborates with its supply chain partners and collaboratively manages intra- and inter-organizational processes, in order to achieve effective and efficient flows of products and services, information, money and decisions, to provide maximum value to the customer. The previous research is inconsistent in its findings about the relationship between SCI and performance. We attribute this inconsistency to incomplete definitions of SCI, in particular, the tendency to focus on customer and supplier integration only, excluding the important central link of internal integration. We study the relationship between three dimensions of SCI, operational and business performance, from both a contingency and a configuration perspective. In applying the contingency approach, hierarchical regression was used to determine the impact of individual SCI dimensions (customer, supplier and internal integration) and their interactions on performance. In the configuration approach, cluster analysis was used to develop patterns of SCI, which were analyzed in terms of SCI strength and balance. Analysis of variance was used to examine the relationship between SCI pattern and performance. The findings of both the contingency and configuration approach indicated that SCI was related to both operational and business performance. Furthermore, the results indicated that internal and customer integration were more strongly related to improving performance than supplier integration

A cross-cultural examination of the relationships among human resource management practices and organisational commitment: an institutional collectivism perspective

Previous research has shown that human resource management (HRM) practices vary across cultures. However, little research has empirically compared the effects of various HRM practices on firm-level or individual-level outcome variables across cultures. Drawing upon psychological contract theory and the literature on cultural values, the present study examined the effects of three organisational-level HRM practices on individual organisational commitment in a survey of 2424 individuals in 120 organisations located in four countries and three industries. Based upon the GLOBE study, we classified the four countries into two groups – high versus low institutional collectivism. The results of our hierarchical linear modelling (HLM) analyses found significant differences in the effects of organisational-level HRM on individual organisational commitment across cultures for two of the three HRM practices included in our model: training and teamwork. We also found partial support for differences across cultures for the effects of the third HRM practice: employee involvement in decision making. Overall, our results support the utility of theoretical and empirical models that address multiple levels of analyses to better understand the mechanisms through which the HRM-performance link takes place across national cultures

The impact of supply chain complexity on manufacturing plant performance

This paper puts forth a model of supply chain complexity and empirically tests it using plant-level data from 209 plants across seven countries. The results show that upstream complexity, internal manufacturing complexity, and downstream complexity all have a negative impact on manufacturing plant performance. Furthermore, supply chain characteristics that drive dynamic complexity are shown to have a greater impact on performance than those that drive only detail complexity. In addition to providing a definition and empirical test of supply chain complexity, the study serves to link the systems complexity literature to the prescriptions found in the flexibility and lean production literatures. Finally, this research establishes a base from which to extend previous work linking operations strategy to organization design [Flynn, B.B., Flynn, E.J., 1999. Information-processing alternatives for coping with manufacturing environment complexity. Decision Sciences 30 (4), 1021–1052]