scholarly journals On the relationship between financial performance and position of businesses in supply chain networks

2020 ◽  
Vol 227 ◽  
pp. 107690
Author(s):  
A. Seiler ◽  
C. Papanagnou ◽  
P. Scarf
2021 ◽  
Vol 6 (1) ◽  
Author(s):  
Siddharth Arora ◽  
Alexandra Brintrup

AbstractThe relationship between a firm and its supply chain has been well studied, however, the association between the position of firms in complex supply chain networks and their performance has not been adequately investigated. This is primarily due to insufficient availability of empirical data on large-scale networks. To addresses this gap in the literature, we investigate the relationship between embeddedness patterns of individual firms in a supply network and their performance using empirical data from the automotive industry. In this study, we devise three measures that characterize the embeddedness of individual firms in a supply network. These are namely: centrality, tier position, and triads. Our findings caution us that centrality impacts individual performance through a diminishing returns relationship. The second measure, tier position, allows us to investigate the concept of tiers in supply networks because we find that as networks emerge, the boundaries between tiers become unclear. Performance of suppliers degrade as they move away from the focal firm (i.e., Toyota). The final measure, triads, investigates the effect of buying and selling to firms that supply the same customer, portraying the level of competition and cooperation in a supplier’s network. We find that increased coopetition (i.e., cooperative competition) is a performance enhancer, however, excessive complexity resulting from being involved in both upstream and downstream coopetition results in diminishing performance. These original insights help understand the drivers of firm performance from a network perspective and provide a basis for further research.


2020 ◽  
Vol 24 (3) ◽  
pp. 655-674
Author(s):  
Robert Ogulin ◽  
Gustavo Guzman ◽  
Subasinghage Maduka Nuwangi

Purpose This paper aims to develop a conceptual taxonomy for building requisite knowledge capabilities for different supply chain network (SCN) types. Specifically, it examines knowledge capabilities required for three types of SCNs: efficient, collaborative and agile SCNs. Design/methodology/approach This paper integrates two bodies of thought (i.e. knowledge management and organisational learning) and applies them to SCNs. An abductive research process is used to develop this conceptual taxonomy. Findings The conceptual taxonomy details three archetypical knowledge capabilities – exploitation, exploration and ambidextrous. Those knowledge capabilities are required for efficient, collaborative and agile SCNs, respectively. Research limitations/implications This paper is conceptual and theory-based. The next stages of the research seek to further strengthen the explanatory value of the taxonomy through empirical validation. Practical implications The taxonomy developed in this paper provides a valuable and pragmatic tool for managerial decision-making in the context of SCNs. Specifically, it provides a roadmap for practitioners since the study develops an understanding of the relationship between knowledge capabilities and types of SCNs. Originality/value This is one of the earliest studies that attempt to unearth requisite knowledge capabilities for different types of SCNs.


Author(s):  
Franco Müller Martins ◽  
Jacques Trienekens ◽  
Onno Omta

This paper analyses how the technical and managerial support of buyers affects the performance and investment capacity of Brazilian pig farmers. The paper also analyses the influence of the farmers’ investment capacity on their own performance and how that performance in turn influences the investment requirements demanded by buyers. We developed a structural equation model applied to a sample of 199 farmers including piglet farmers (n=91) and finishers (n=108) working under production contracts. The model includes two constructs that assess performance – financial performance and production and quality performance. The results show that buyer support positively influences both performance constructs and investment requirements for piglet farmers and finishers. The relationship between buyer support and investment capacity was significant only in the sample of finishers. Farmers’ investment capacity positively influences both performance constructs in the sample of piglet farmers. For finishers, investment capacity influences only financial performance. Moreover, only production and quality performance of finishers influences investment requirements. The results provide buyers and farmers with insights for refinements in support policies and management.


Author(s):  
Afresco Brazhkin

Numerous studies have stressed the critical nature of aligning a product's attributes to its supply chain design (i.e., supply chain fit). Fisher (1997) developed the concept of supply chain fit, stating that enterprises must evaluate the nature of their products' demand before constructing a supply chain. I extend Fisher's (1997) paradigm by providing a more thorough understanding of when firms should invest in supply chain fit. I argue that assuming that perfect supply chain fit always results in enhanced financial performance is oversimplistic, as the benefits of perfect supply chain fit may be outweighed by the resources expended to attain it. To conduct this research, I will use archival and survey data to examine the moderating effects of six dimensions of environmental uncertainty on the relationship between supply chain fit and financial performance (e.g., munificence, market dynamism, technological dynamism, technical complexity, product diversity, and geographic dispersion).


2020 ◽  
Vol 12 (9) ◽  
pp. 3850
Author(s):  
Jongjin Sohn ◽  
Jongseon Lee ◽  
Nami Kim

While researchers have long examined the relationship between corporate environmental responsibility (CER) and financial performance, the evidence remains inconclusive. Moreover, whether sustainable supply chain management plays a role in enhancing the financial performance of focal firms has yet to be fully investigated. As firms’ investment in CER often pays off in the long-term, applying multiple time horizons, short- to long-term considerations, is needed to determine the effects of CER. This study examined the role of CER in improving financial performance based on multiple time horizons. In particular, the effects of CER on financial performance were explored in terms of internal operations and supply chains. The moderating effects of regulatory stringency on the relationship between CER and a firm’s short- or long-term financial performance were also investigated. Firms’ CER was studied using carbon data from Trucost. Carbon footprint can be an appropriate proxy for CER, as it provides information on supply partners’ environmental concerns. A unique dataset of the carbon footprint of 714 North American firms in 19 industry sectors in 2003–2010 was used. The results indicated that firms benefit from CER not only in their internal operations but also in their supply chains in both the short and long-terms. The moderating effects of regulatory stringency were significant for CER only in terms of the supply chain but not for internal operations. In industries with a high level of regulatory stringency, the positive effects of CER on short-term financial performance in the supply chain become weaker, but the same effects on long-term financial performance become stronger. By investigating the effects of two distinct carbon footprint aspects on financial performance at different time horizons, this study sheds light on the importance of CER in firms’ internal operations and supply chains.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nikhat Afshan ◽  
Purnendu Mandal ◽  
Angappa Gunasekaran ◽  
Jaideep Motwani

PurposeThe purpose of this paper is to examine the mediating role of immediate performance outcomes on the relationship between dimensions of supply chain integration (SCI) and financial performance.Design/methodology/approachThis study tests the proposed model linking dimensions of SCI, immediate performance outcomes and financial performance using structural equation modeling on a sample of Indian manufacturing companies.FindingsThe findings suggest that the relationship between dimensions of SCI and firm performance is fully mediated through the immediate performance outcomes.Originality/valueThis study deals with the potential benefits of SCI, especially in developing countries like India, where a little research has been done in this area. Also, this study provides support to practitioners that SCI is an effective way of improving both supply chain performance and financial performance.


Author(s):  
Li Chunsheng ◽  
Christina W.Y. Wong ◽  
Ching-Chiao Yang ◽  
Kuo-Chung Shang ◽  
Taih-cherng Lirn

Purpose Building supply chain (SC) resilience is crucial for business continuity given the ever-changing environmental conditions. Based on the resource orchestration and organizational culture theories, the purpose of this paper is to investigate the business value of SC resilience with the consideration of the roles of internal integration (II) and external integration (EI), risk management culture (RMC) and SC flexibility (SCF). Design/methodology/approach This study investigates how RMC, SCF and intra and interorganizational integration affect the performance of SC resilience. It collects primary and secondary data from 194 manufacturing firms listed in the Taiwan Stock Exchange and Taipei Exchange. Findings Results validate the authors’ hypothesis that RMC, SCF and II improve the financial performance of firms through SC resilience efforts. Research limitations/implications This study uses firms from Taiwan manufacturing industry, which might introduce country and industry bias. Practical implications This study helps managers improve the financial performance of their SC resilience efforts by developing RMC, SCF, II and IE across functions and partner firms. Originality/value This study contributes to the literature by empirically testing the relationship between SC resilience and financial performance, and how the relationship is moderated by RMC, SCF, II and EI based on the theories of organizational culture and resource orchestration.


2021 ◽  
Vol 9 (3) ◽  
pp. 908-921
Author(s):  
Deniz Özbay

The linkage between sustainable supply chain management (SSCM) and financial performance has attracted increasing interest from both researchers and practitioners. Although many have argued that the SSCM practices improve financial performance, empirical studies have produced mixed results, and the direction of the relationship is still unclear.  This study examined the relationship between SSCM and financial performance for Turkish manufacturing companies. Financial performance was measured using ROA, ROE and price to book ratio, while SSCM performance was measured with a new multivariable performance indicator. Financial performance data were obtained from the Bloomberg Database, while SSCM data were collected from non-financial reports using content analysis. The total sample included 47 manufacturing companies listed in Borsa İstanbul, covering 584 firm-year observations for 2007-2019. Panel data regression analysis was used to test the relationship between SSCM and financial performance. Similar to the literature's general view, the findings support a positive linear relationship between SSCM and firm financial performance.


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