Week 5 Presentation

Team A: Week 4-5 Discussion

Emerging Supply Chain Strategies

Henrich Edimo, MBA

Seminar in Global Supply Chain Management (DDBA 8510-3)

Moutaz Abou-Robieh, PhD

July 26, 2015

1Robert E. Davis

Table of Contents

• Synthesis of Assigned Literature

• Gaps in Assigned Literature

• Research Topic Background

• References

• Annotated Bibliography

2Robert E. Davis

Synthesis of Assigned Literature(1 of 6)

• The purpose of this presentation is to explore emerging supply chain management strategies associated with new product developments considering trends and innovations.

• Reflective questions:– What is a supply chain innovation?– When should inter-organizational collaboration occur for new product

developments?– How does supply chain strategies align with corporate strategies?– What are the implications of diffusion in a supply chain?– What are the supply chain management (SCM) trends applicable to

emerging supply chain strategies?– What are the organizational customization best practices for global supply

chains?

3 Robert E. Davis


• Drawing on information gathered during interviews, along with the findings of a literature review; Cassivi, Hadaya, Lefebvre, and Lefebvre (2008) delineated innovations as process, relational, or product. Cassivi et al. suggested process innovation influences product innovation for the downstream design while relational innovation effects product innovation for the upstream design.

• Concerning process integration; Parker, Zsidisin, and Ragatz (2008) found newer products signify the need for earlier supplier integration. Additionally, Parker et al. found prior positive experience with the supplier and the procurement of highly strategic items indicated the need for tighter integration.

4 Robert E. Davis


• In addressing relational innovation, businesses with a supply chain strategy require integration, cooperation and collaboration (Soosay, Hyland, & Ferrer, 2008). Soosay, Hyland, and Ferrer (2008) described that meeting these requirements in turn demand aligned objectives, open communication, sharing of resources, risks and rewards. Soosay et al. found differing relationships could affect the operation of firms and their capacities to innovate.

• Based on a mixed method study, Handfield and Lawson (2007) found that an early supplier capabilities assessment and setting shared technology goals can enhance the effectiveness of new product development (NPD) project teams. Handfield and Lawson also found performing these tasks can lead to improved product design and financial outcomes for the enterprise.

5 Robert E. Davis


• Azadegan, Dooley, Carter, and Carter (2008) stated that some enterprises have a better external knowledge absorption capacity. Accordingly, firms with a better absorption capacity will perform better at transforming supplier based innovations into organizational improvements (Azadegan, Dooley, Carter, & Carter, 2008).

• Wisma (2008) analyzed recent global supply chain management (GSCM) trends and practices. Resultantly, Wisma suggested contextual culture; corporate governance; politics and law; and technology factors are critical to successful international supply chains and risk management.

6 Robert E. Davis


• Supply chain management identified trends include alignment, assessment, contractual issues, as well as management and controls (Wisma, 2008).– Manufactures should consider alignment between their own learning style

and that of the suppliers (Azadegan et al., 2008).– Supply chain actions, whether strategic or tactical, should always be

aligned with the business strategy of the firm (Cassivi, 2008).– Buyers should conduct a detailed supplier assessment prior to project

commencement (Handfield & Lawson, 2007).– Some organizations will pay little attention to relational innovations by

developing tangible means of collaboration such as contracts (Cassivi, 2008; Soosay et al., 2008).

– Supply chain integration should be applied selectively (Parker, Zsidisin, & Ragatz, 2008).

7 Robert E. Davis


• Identified organizational best practices include understanding value sources, finding virtuousness, and tailoring business streams (Wisma, 2008). – Soosay et al. (2008) demonstrated how collaborative relationships can

positively affect the operation of firms and their capability to innovate. – Considering empirical evidence, knowing with whom you are going to do

business rather than knowing how you are going to do business is a significant issue (Cassivi et al., 2008).

– Parker et al. (2008) concluded that high levels of trust lead to tighter integration.

– Handfield et al. (2007) indicated firms that are successful at supplier integration employ a systematic process.

8 Robert E. Davis

Gaps in Literature(1 of 2)

• Parker et al. (2008) explored how contingency factors affected timing and level of supplier integration into NPD. Moreover, the authors explored how varying levels of integration affect project performance and reported the following gaps in literature.– Parker et al. suggested extending the ambit of their findings by examining

the contextual factors appropriate for integrating other supply chain organizations in NPD and their effect on project performance deserves further research.

– Parker et al. also suggested examining NPD effects beyond the first tier in the upstream or downstream supply chain, as well as reverse reverse logists channels when developing new products.

9 Robert E. Davis

Gaps in Literature(2 of 2)

• Azadegan et al. (2008) used organizational learning theory as a framework for exploring how manufacturers can best learn from their suppliers' innovations. The authors only expected stronger buyer-supplier relationships to generate more effectual learning and the impact of innovativeness to be greater when the outsourced item is critical versus noncritical (Azadegan et al., 2008). Consequently, the researchers reported that future research consider other contingencies (Azadegan et al., 2008).

10 Robert E. Davis

Research Topic Background

SCM is typically considered a multidisciplinary system for integrating domains such as strategic management, marketing, and organizational behavior (Mentzer, Myers, & Stank, 2007; Vries & Huijsman, 2011, p. 160). As for activities, SCM identifies, quantifies, assesses and manages the flow of commodities through value chains with the common goal of lessening waste and maximizing resource efficiency (Vries & Huijsman, 2011). By definition, SCM commodities are generic categories of purchased items (Handfield, Sroufe, & Walton, 2005, p. 3). Therefore, a commodity strategy is the firm’s managerial decisions addressing the number of suppliers, sources of supply, the number of warehouses, and supplier relationships for any single product; while remaining purchasing policy compliant (Handfield et al., 2005, p. 3).

11 Robert E. Davis


According to Porter (as cited in Haag & Cummings, 2008), there are three strategies available for outperforming the competition in any industry: cost leadership, differentiation, and focus (p. 21). Cost leadership refers to providing the same commodity priced less than what market rivals can offer (Haag & Cummings, 2008, p. 21). Differentiation reflects provisioning a product or service seen as distinctive in the marketplace by customers (Haag & Cummings, 2008, p. 22). Last, focus reflects centering on presenting a commodity to a bounded market segment or buyer group, or within a targeted product line section (Haag & Cummings, 2008, p. 22). Of these strategies, manufacturers utilizing a lean supply strategy are commonly seeking competitive advantage through cost leadership (Christopher & Towill, 2002; Mentzer et al., 2007).

12 Robert E. Davis


Quality, delivery, and cost typically dominate supplier relationship considerations (Parker et al., 2008; Simpson & Power, 2005, p. 61). However, firms may adopt broader logistic objectives than just ensuring the supply of materials for manufacturing products (Simpson & Power, 2005). These additional objectives may encompass waste reduction, innovation, or social responsibility (Simpson & Power, 2005). Achievement of these objectives within the supply chain requires forming and sustaining supplier relationships through collaboration or compliance (Harms, Hansen, & Schaltegger, 2011). Collaboration enables achieving the objectives as mentioned above through trust, whereas compliance is achieved through organizational power utilization (Harms et al., 2011). Nonetheless, information sharing and a mutual commitment

13 Robert E. Davis


to performance improvement are required for both approaches; while appropriately managing safeguards that prevent opportunism (Simpson & Power, 2005, p. 64). Reducing waste to produce cost leadership is the essential focal of the lean approach (Christopher & Towill, 2002, p. 8). Whereby, management of the supply relationship is a key lean production component (Simpson & Power, 2005, p. 63). Regarding this matter; lean manufacturing requires customer-supplier relationships generating an exceptional degree of motivated learning and trust (Simpson & Power, 2005, p. 61). In securing and maintaining lean manufacturing benefits, lean supply deployments should reflect high-levels of information sharing, supplier rapid performance improvements, and low transaction costs (Simpson & Power, 2005,

14 Robert E. Davis


p. 61). Consequently, the lean supply methodology expects suppliers to participate actively in eliminating all removable waste (Simpson & Power, 2005, p. 63) within the commodity pipeline. SCM strategies commonly involve inter-functional and inter-organizational integration, coordination, and collaboration throughout the links (Stank, Keller, & Daugherty, 2001). As a case in point, enabling alignment flexibility to create differentiation through service levels is the principal agile supply chain approach objective (Christopher & Towill, 2002; Ismail & Sharifi, 2006). Whereby, central agile administration elements are material adjustment to market and competition requirements, reconfiguration of processes, as well as behavioral and relationship issues resolution (Ismail & Sharifi, 2006, p. 431). Therefore, agile methodology

15 Robert E. Davis


deployments require customer-supplier relationships generating an exceptional degree of coordination and trust (Ismail & Sharifi, 2006). Nonetheless, the primary challenge to inter-functional and inter-organizational coordination is the elimination of behavioral isolationism by organizational unit employees (Mentzer et al., 2007).

16 Robert E. Davis

References

17 Robert E. Davis

Azadegan, A., Dooley, K. J., Carter, P. L., & Carter, J. R. (2008). Supplier innovativeness and the role of interorganizational learning in enhancing manufacturer capabilities. Journal of Supply Chain Management, 44(4), 14-35. doi:10.1111/j.1745-493X.2008.00070.x

Cassivi, L., Hadaya, P., Lefebvre, E., & Lefebvre, L. A. (2008). The role of collaboration on process, relational, and product innovations in a supply chain. International Journal of E-Collaboration, 4(4), 11-32. doi:10.4018/jec.2008100102

Christopher, M., & Towill, D. R. (2002). Developing market specific supply chain strategies. International Journal of Logistics Management, 13(1), 1-14. doi:10.1108/09574090210806324

References

18 Robert E. Davis

Haag, S., & Cummings, M. (2008). Management information systems for the information age (Laureate Education, Inc., custom ed.). Boston, MA: McGraw-Hill/Irwin.

Handfield, R., Sroufe, R., & Walton, S. (2005). Integrating environmental management and supply chain strategies. Business Strategy and the Environment, 14(1), 1-19. doi:10.1002/bse.422

Handfield, R. B., & Lawson, B. (2007). Integrating suppliers into new product development. Research Technology Management, 50(5), 44-51. Retrieved from https://www.iriweb.org

References

19 Robert E. Davis

Harms, D., Hansen, E. G., & Schaltegger, S. (2013). Strategies in sustainable supply chain management: An empirical investigation of large German companies. Corporate Social Responsibility & Environmental Management, 20(4), 205-218. doi:10.1002/csr.1293

Ismail, H. S., & Sharifi, H. (2006). A balanced approach to building agile supply chains. International Journal of Physical Distribution & Logistics Management, 36(6), 431-444. doi:10.1108/09600030610677384

Mentzer, J. T., Myers, M. B., & Stank, T. P. (Eds.). (2007). Handbook of global supply chain management. Thousand Oaks, CA: Sage.

References

20 Robert E. Davis

Parker, D. B., Zsidisin, G. A., & Ragatz, G. L. (2008). Timing and the extent of supplier integration in new product development: A contingency approach. Journal of Supply Chain Management, 44(1), 71-83. doi:10.1111/j.1745-493X.2008.00046.x

Simpson, D. F., & Power, D. J. (2005). Use the supply relationship to develop lean and green suppliers. Supply Chain Management, 10(1), 60-68. doi:10.1108/13598540510578388

Soosay, C. A., Hyland, P. W., & Ferrer, M. (2008). Supply chain collaboration: Capabilities for continuous innovation. Supply Chain Management, 13(2), 160-169. doi:10.1108/13598540810860994

References

21 Robert E. Davis

Stank, T. P., Keller, S. B., & Daugherty, P. J. (2001). Supply chain collaboration and logistical service performance. Journal of Business Logistics, 22(1), 29-48. doi:10.1002/j.2158-1592.2001.tb00158.x

Vries, J., & Huijsman, R. (2011). Supply chain management in health services: An overview. Supply Chain Management: An International Journal, 16(3), 159-165. doi:10.1108/13598541111127146

Wisma, M. (2008). Global business management: Current trends and practices. The Journal of Applied Business and Economics, 8, 96-109. Retrieved from http://www.aebrjournal.org

Annotated Bibliography(1 of 10)

22 Robert E. Davis

Evanschitzky, H., Eisend, M., Calantone, R. J., & Jiang, Y. (2012). Success factors of product innovation: An updated meta-analysis success factors of product innovation. Journal of Product Innovation Management 29, 21-37. doi:10.1111/j.1540-5885.2012.00964.xEvanschitzky, Eisend, Calantone, and Jiang conducted an updated and extended the meta-analytic investigation of the factors affecting new product success. The researchers concluded that decreased effects of common success factors occur over time. The authors also revealed that culture emerges as an important moderating factor on effect sizes. Moreover, the authors identified a significant shift in research interest in NPD success factors. The authors furnished insights concerning what implications the resource-based view implies for product innovation, development, and launch. Moreover, the authors provided insights regarding the variety of moderations that affect each asset basis differentially. The author suggested scholars employ more differentiated investigations of culture as a critical factor moderating the significance of NPD success. Additionally, the authors suggested researchers conduct further assessments of market orientation and dedicated human resources as potentially significant success factors.


23 Robert E. Davis

Gimenez, C., Vaart, T., & Donk, D. P. (2012). Supply chain integration and performance: The moderating effect of supply complexity. International Journal of Operations & Production Management, 32(5), 583-610. doi:10.1108/01443571211226506Gimenez, Vaart, and Donk conducted a quantitative methods study addressing the effectiveness of supply chain integration in different contexts. The authors found that supply chain integration increases performance if supply complexity is high. The authors also found very limited or no influence of supply chain integration detected in the case of low supply complexity. Moreover, the authors found in a high supply complexity environment that structured communication use effects cost performance adversely when pursuing supply chain integration. This quantitative research is useful for understanding how supply complexity moderates the relationship between integration and performance. First, the authors suggested future studies examine the interrelationships of the constructs on cooperative behavior. Second, the authors suggested further research to investigate if structured communication increases costs in large firms. Third, the authors suggested future studies analyze the interrelationships between the different integration dimensions and their effects on performance. Fourth, the authors suggested further research to examine in more detail the integration profiles required under various levels of supply complexity.


24 Robert E. Davis

Gunasekaran, A., Hong, P., & Fujimoto, T. (2014). Building supply chain system capabilities in the age of global complexity: Emerging theories and practices. International Journal of Production Economics, 147, 189-197. doi:10.1016/j.ijpe.2013.11.012Gunasekaran, Hong, and Fujimoto provided a special issue editorial of the International Journal of Production Economics. Gunasekaran et al. suggested emerging theories and practices deserve careful examination. The authors concluded that selected special issue articles brought out the problem associated with constructing sustainable supply chain capabilities in the era of global complexity. The authors indicated the special publication included innovative and conceptual, analytical, and empirical studies that addressed design and implementation issues of sustainable development strategies and techniques or related issues for building sustainable supply chain capabilities. Gunasekaran et al. furnished insights concerning suitable strategies, and relevant methods and technologies for building sustainable supply chain capabilities in the global complexity era. Gunasekaran et al. suggested the special issue provides a basis for exploring the emerging theories and practices of global complexity. Moreover, the authors suggested that resultantly further development, as well as refinement through future research, could occur.


25 Robert E. Davis

Harms, D., Hansen, E. G., & Schaltegger, S. (2013). Strategies in sustainable supply chain management: An empirical investigation of large German companies. Corporate Social Responsibility & Environmental Management, 20(4), 205-218. doi:10.1002/csr.1293Harms, Hansen, and Schaltegger investigated risk-oriented and opportunity-oriented strategic approaches regarding supplier management. Harms et al. attempted to survey 80 large and medium sized firm employees in Germany. The authors found that large German stock companies mainly implement risk-oriented sustainable supply chain management (SSCM) strategies.This quantitative research is useful for understanding risk-oriented and opportunity-oriented strategic approaches to SSCM. The authors suggested researchers conduct comparative analysis of internationally operating small and medium-sized enterprises. Moreover, the authors suggested further research to analysis of new SSCM practices that re-conceptualize whose in the chain.


26 Robert E. Davis

Hitt, M. A. (2011). Relevance of strategic management theory and research for supply chain management. Journal of Supply Chain Management, 47(1), 9-13. doi:10.1111/j.1745-493X.2010.03210.xHitt reviewed the relevance of several prominent theoretical perspectives in strategic management regarding supply chain management. The author discussed the resource-based view, transaction cost economics, organization learning theory and social capital for their applicability to significant research questions in supply chain management. The authors concluded that the research in strategic management and supply chain management are complementary and that both fields of study could benefit from more integration of research.Hitt furnished insights concerning resource orchestration and dynamic capabilities. The author suggested the relationship between the enterprise, and their suppliers is an essential component of resource flows management. The author also suggested there may be a larger challenge in integrating resources obtained from external sources with internal resources about the integration of various collections of internal resources.


27 Robert E. Davis

Lee, K., & Kim, J. (2011). Integrating suppliers into green product innovation development: An empirical case study in the semiconductor industry. Business Strategy & The Environment, 20(8), 527-538. doi:10.1002/bse.714Lee and Kim explored the role of suppliers in enhancing the manufacturer’s ability to realize a successful green innovation in product development. The researchers indicated there was a powerful linkage between environmental compliance and green NPDs. The authors also suggested there is a strategically close relationship of environmental collaboration between suppliers and the buying firm through technological integration. Moreover, the authors revealed including principal suppliers in green NPD for environmentally demanding customers, and markets can bring environmental and commercial success.The authors furnished insights concerning supplier involvement and green product innovation development in supply chain management. The authors suggested scholars employ comparative studies in different industries to gain an enhanced understanding of green product development. Additionally, the authors suggested researchers conduct studies of the proactivity impact of green strategy and top management commitment concerning green product technologies.


28 Robert E. Davis

Qrunfleh, S., & Tarafdar, M. (2014). Supply chain information systems strategy: Impacts on supply chain performance and firm performance. International Journal of Production Economics, 147, 340-350. doi:10.1016/j.ijpe.2012.09.018Qrunfleh and Tarafdar examined the relationship between supply chain and information systems strategy. Furthermore, Qrunfleh and Tarafdar studied the relationship effect on supply chain performance and firm performance. The authors found that that the information systems for efficiency (information systems for flexibility) strategy enhances the relationship between Lean (Agile) supply chain strategy and supply chain performance. The authors also found a positive association between supply chain performance and firm performance. Moreover, the authors also found a full (partial) mediation effect of supply chain performance on the relation between Agile (Lean) supply chain strategy and firm performance.

This quantitative research is useful for understanding how supply chain and information systems strategies can work together to boost supply chain performance. First, the authors suggested future studies use and build on developed and validated measurements. Second, the authors suggested further research to investigate the fit between supply strategy and information systems strategy in different industries.


29 Robert E. Davis

Roh, J., Hong, P., & Min, H. (2014). Implementation of a responsive supply chain strategy in global complexity: The case of manufacturing firms. International Journal of Production Economics, 147, 198-210. doi:10.1016/j.ijpe.2013.04.013

Roh, Hong and Min examined how firms construct a responsive supply chain in global manufacturing environments. Built upon a synthesis of the existing literature and relevant theories, Roh et al., presented a research model that defined the drivers, strategy, and practices of a responsive supply chain and the performance outcomes. The authors showed that effectual implementation of a responsive supply chain strategy involves the integration of inter-organizational resources across the global supply chain to enhance pull production capabilities.

This quantitative research is useful for understanding the definitional requirement for a responsive supply chain strategy in terms of the product range, as well as the frequency and innovativeness of the product offerings. The author suggested that the foundational contextual factors that affect the extent of a responsive supply chain strategy deployment are mostly the size of firms, industry characteristics, and customer as well as supplier bases. Moreover, the authors suggested researchers conduct studies considering how firms effectively respond through their supply chains to changing market requirements while identifying and incorporating emerging supply chain practices. Last, the authors suggest researchers elaborate on the multiple dimensions of various types of supply chains..

.


30 Robert E. Davis

West, J., & Bogers, M. (2014). Leveraging external sources of innovation: A review of research on open innovation. Journal of Product Innovation Management, 31(4), 814-831. doi:10.1111/jpim.12125West and Bogers conducted a meta-analytic investigation of open innovation considering how and why firms commercialize external sources of innovations. The researchers concluded there was a trend to ignore the importance of business models. Moreover, the authors identified a trend in open innovation to employ innovation in a way inconsistent with earlier innovation management definitions.The authors furnished insights concerning the convergence, divergence, and gaps in the academic literature on leveraging external sources of innovation. The author suggested scholars examine the end-to-end innovation commercialization process. Additionally, the authors suggested researchers investigate the moderators and boundaries of leveraging external sources of innovation.


31 Robert E. Davis

Zhu, Q., Sarkis, J., & Lai, K. H. (2012). Green supply chain management innovation diffusion and its relationship to organizational improvement: An ecological modernization perspective. Journal of Engineering and Technology Management, 29(1), 168-185. doi:10.1016/j.jengtecman.2011.09.012Zhu, Sarkis, and Lai presented an overview of green supply chain management (GSCM) innovation diffusion. Drawing on innovation diffusion and ecological modernization theories, Zhu et al., identified three types of industrial manufacturers based on the adoption of GSCM practices. The researchers indicated that differences exist between the three types of GSCM adopters in terms of their environmental, operational, and economic performance.The authors furnished insights concerning the benchmarking for environmental management practices and performance improvement. The authors suggested scholars examine if and how Chinese manufacturers can learn from similar foreign manufacturers. Moreover, the authors suggested researchers investigate early adopter diffusion to the followers as well as the laggards. Last, the authors suggested researchers examine alternative motivations for adopting GSCM and how they influence innovation diffusion as well as the link to performance outcomes.

Week 5 Presentation

Documents

Transcript of Week 5 Presentation