Technological change, information processing and supply chain integration

2018 ◽  
Vol 25 (5) ◽  
pp. 1279-1301 ◽  
Author(s):  
Roman Bartnik ◽  
Youngwon Park

Purpose Technologies change quickly in the automotive industry. This can provide opportunities to firms from emerging economies who try to enter the world stage of automotive production, provided they can react to this more nimbly than established competitors. How technological change affects the supply chain coordination of incumbents from developed economies and new entrants from emerging economies should strongly determine the speed of competitive reaction. By using the example of automotive transmission development, the purpose of this paper is to provide a conceptual model for the analysis and offer research propositions. Design/methodology/approach The authors build a conceptual model based on information processing theory and offer research propositions based on case study evidence of four automotive original equipment manufacturers (OEMs) and five suppliers. Findings The authors find symptoms of two larger trends: increasing specialization and technological linkages and a need to increase external supply chain integration beyond traditional structures. Comparing the effects on Japanese and German incumbents, the authors find that increasing external supply chain linkages proves to be harder for Japanese OEMs. Tight links and routines in the Japanese supply chain networks may harm OEM efficiency under the new technological conditions, e.g. the lack of complete part specifications and high demands for customization. Looking at effects on emerging market firms, Chinese OEMs use quasi-open modular production settings in transmission development and lean strongly on inputs from specialized foreign tier-one suppliers. Speed advantages must be weighed against long-term disadvantages of dependence and insufficient R&D investments. Research limitations/implications The study explores how technological change affects inter-firm development processes. The authors propose a framework and hypotheses based on information processing theory and link the findings to the discussion on the impact of national institutional context on supply chain coordination. Practical implications OEMs wanting to adapt complex existing internal structures to the changing demands for information processing should focus first on improving internal capacities by improving the amount and richness of information flow. Implementing new standards for simultaneous and standardized software development across the supply chain is a key point for this. A second step should be to boost the internal capacity to process higher richness of information, i.e. to understand the meta-knowledge necessary to integrate across technological areas in the development of electronic control units (ECUs). Originality/value The authors draw on original interview data in developed and emerging markets and information processing theory to explore the complexity of inter-firm coordination in automotive supply chains.

Author(s):  
Suning Zhu ◽  
Jiahe Song ◽  
Benjamin T. Hazen ◽  
Kang Lee ◽  
Casey Cegielski

Purpose The global business environment combined with increasing societal expectations of sustainable business practices challenges firms with a host of emerging risk factors. As such, firms seek to increase supply chain transparency, enabling them to monitor operational activities and manage supply chain risks. Drawing on organizational information processing theory, the purpose of this paper is to examine how supply chain analytics (SCA) capabilities support operational supply chain transparency. Design/methodology/approach Using data from 477 survey participants, hypotheses are tested using seemingly unrelated regression. Findings The results reveal that: analytics capability in support of planning functions indirectly affects organizational supply chain transparency (OSCT) via SCA capabilities in source, make, and deliver functions; SCA capabilities in source, make, and deliver positively influence OSCT; and supply uncertainty moderates the relationship between SCA capabilities in make and OSCT. Research limitations/implications This research suffers from limitations inherent in all survey-based research. Nonetheless, the authors found convincing evidence that suggests firms can employ SCA capabilities to meet transparency requirements. Practical implications The findings inform design of SCA systems, noting the importance of linking planning tools with tools that support source, make, and deliver functions. The research also shows how transparency can be increased via employing SCA capabilities. Originality/value This is one of first studies to empirically demonstrate that SCA capabilities can be used to increase supply chain transparency. The research also advances organizational information processing theory by illustrating an analytics capability paradox, where increased levels of certain analytics capabilities can become counterproductive in the face of supplier uncertainty.


2019 ◽  
Vol 39 (5) ◽  
pp. 787-814 ◽  
Author(s):  
Wantao Yu ◽  
Roberto Chavez ◽  
Mark Jacobs ◽  
Chee Yew Wong ◽  
Chunlin Yuan

Purpose It remains unclear how environmental scanning (ES) can generate firm performance through supply chain management (SCM) practices. The purpose of this paper is to investigate the effects of ES on operational performance through supply chain integration (SCI) and supply chain responsiveness (SCR). Design/methodology/approach The scanning–interpretation–action–performance (SIAP) model and organization information processing theory (OIPT) are used to explain the ES–SCI–SCR–performance (S–I–A–P) relationships, which were tested by structural equation modeling of survey data of 329 manufacturing firms in China. Findings The results indicate that ES has a significant positive effect on SCI and SCR. SCI is significantly and positively related to SCR. SCR partially mediates the relationship between ES and operational performance, and fully mediates the relationship between SCI and operational performance. Practical implications Supply chain managers should collaborate with senior executives to obtain signals from ES activities, as input for building SCI and SCR and use SCI as a joint interpretation mechanism of ES signals for developing SCR to reap operational advantages in the rapidly changing business environment. Originality/value Strategic management academics and practitioners have explicitly emphasized the importance of ES in developing strategic plans but are unsure about the role of SCM in creating operational advantages through ES. Using the SIAP model, this study theorizes and demonstrates how SCI and SCR transform signals from ES into operational performance. In doing so, a more precise application of OIPT is explicated in the supply chain context.


Author(s):  
Clay Posey

Supply chains operate under conditions of uncertainty, and chain members exchange information as a means to mitigate such uncertainty within the chain. While these exchanges have largely been viewed as a positive method of achieving operational cohesion, some supply chains appear to benefit more from increased levels of information sharing than others. To assist in explaining the performance differences experienced by supply chains engaged in information-sharing activities, a new perspective of information sharing within supply chains based on organizational information processing theory (Galbraith, 1973) is introduced. More specifically, it is posited that individual supply chains may be examined as single information processors and that their characteristics can induce complexities in the shared information—ultimately an issue that affects how supply chains process this information. Furthermore, the degree to which supply-chain members’ information systems are compatible with each other is posited to also play a significant role in information-processing capabilities.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lujie Chen ◽  
Mengqi Jiang ◽  
Fu Jia ◽  
Guoquan Liu

Purpose The purpose of this study is to develop a synthesized conceptual framework for artificial intelligence (AI) adoption in the field of business-to-business (B2B) marketing. Design/methodology/approach A conceptual development approach has been adopted, based on a content analysis of 59 papers in peer-reviewed academic journals, to identify drivers, barriers, practices and consequences of AI adoption in B2B marketing. Based on these analyses and findings, a conceptual model is developed. Findings This paper identifies the following two key drivers of AI adoption: the shortcomings of current marketing activities and the external pressure imposed by informatization. Seven outcomes are identified, namely, efficiency improvements, accuracy improvements, better decision-making, customer relationship improvements, sales increases, cost reductions and risk reductions. Based on information processing theory and organizational learning theory (OLT), an integrated conceptual framework is developed to explain the relationship between each construct of AI adoption in B2B marketing. Originality/value This study is the first conceptual paper that synthesizes drivers, barriers and outcomes of AI adoption in B2B marketing. The conceptual model derived from the combination of information processing theory and OLT provides a comprehensive framework for future work and opens avenues of research on this topic. This paper contributes to both AI literature and B2B literature.


2014 ◽  
Vol 19 (1) ◽  
pp. 64-78 ◽  
Author(s):  
Ming-Chang Huang ◽  
Ghi-Feng Yen ◽  
Tzu-Chuan Liu

Purpose – Effective and efficient supply chain coordination requires the integration of all product flow processes. However, inconsistent empirical results have been obtained with respect to the relationships between supply chain integration (SCI) and performance. Drawing on efficiency-flexibility arguments, this paper seeks to develop a SCI model that includes buyer-supplier-supplier relationships, and proposes a contingency framework for reexamining the SCI-supplier performance relationship under demand and technological uncertainties. Design/methodology/approach – A two-stage data collection process was conducted, and a total of 878 suppliers that listed in the Taiwanese “Center-Satellite Production System” with supply contract were contacted for this study. Finally 164 suppliers were gathered and screened as valid responses. Hierarchical regression analysis was used to test the hypotheses in this study. Findings – Evidence indicates that SCI has a significant positive effect on the suppliers' performance. The positive SCI-performance relationship can be moderately weakened by demand uncertainty; however, this positive SCI-performance relationship will be strengthened by technological uncertainty. Originality/value – While supply chain management is needed to manage the vertical and horizontal relationships simultaneously, this study offers a framework to solve efficiency-flexibility dilemma arguments when dealing with “exploitation” and “exploration” alternatives to help to reexamine the inconsistent SCI-performance relationship. Furthermore, based on transaction cost theory, this paper takes the nature of uncertainty into account for improving the theoretical background of the SCI-performance relationship arguments. Empirical results indicate the existence of an ambidextrous supply chain integration strategy which justifies the choice of which one is preferable in efficiency-flexibility dilemma arguments.


Author(s):  
Rachel K. Smith ◽  
R. Edward Bashaw

One of the most visible retailing phenomena of the past two decades has been the increase in sales of private labels (PL), or retail brands. Driven by retail consolidation, attractive margins, consumer sophistication, supply chain efficiencies, merchandising strategies, and pricing, PL offer a wider assortment of price and merchandise options for both retailer and consumer. An important part of the overall merchandising mix in the U.S. and Europe for decades, PL have only recently begun to make inroads in other parts of the world. Using the information processing theory, this paper outlines how retailers in three big emerging markets should use the theory in practice to enhance their PL branding strategy.


2019 ◽  
Vol 23 (9) ◽  
pp. 1782-1805 ◽  
Author(s):  
Shivam Gupta ◽  
Sameer Kumar ◽  
Shampy Kamboj ◽  
Bharat Bhushan ◽  
Zongwei Luo

Purpose This paper aims to examine the link between information systems (IS) agility, HR performance management systems and job satisfaction using organizational information processing theory. The objective of this study answers the following questions: How does use of different IS agility impact HR systems and job satisfaction? What are the connecting pathways by which IS agility affects HR systems and job satisfaction? Design/methodology/approach The authors developed a theoretical framework based on the organizational information processing theory and collected primary data through an online-based questionnaire. Following these procedures, the authors analyzed the data using structural equation modeling (SEM). Findings SEM analysis of the data from 150 respondents supports the organizational information processing theory. The authors proposed eight hypotheses, and only one was rejected. Research limitations/implications The data were collected from South Africa only, which is an emerging economy, and these cross-sectional data were gathered from the perspectives of the respondents. Originality/value The present paper empirically tests the conceptual model through the lens of organizational information processing theory.


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