scholarly journals Supply chain strategies in an era of natural resource scarcity

2018 ◽  
Vol 38 (3) ◽  
pp. 784-809 ◽  
Author(s):  
Dimitra Kalaitzi ◽  
Aristides Matopoulos ◽  
Michael Bourlakis ◽  
Wendy Tate

Purpose The purpose of this paper is to explore the implications of natural resource scarcity (NRS) for companies’ supply chain strategies. Design/methodology/approach Drawing on the resource dependence theory (RDT), a conceptual model is developed and validated through the means of exploratory research. The empirical work includes the assessment of qualitative data collected via 22 interviews representing six large multinational companies from the manufacturing sector. Findings When the resources are scarce and vitally important, companies use buffering strategies. Buffering and bridging strategies are preferred when there are a few alternative suppliers for the specific resource and when there is limited access to scarce natural resources. Research limitations/implications The research focuses on large multinational manufacturing companies so results may not be generalised to other sectors and to small- and medium-sized firms. Future research needs to examine the implications of NRS for organisational performance. Practical implications This research provides direction to manufacturing companies for adopting the best supply chain strategy to cope with NRS. Originality/value This paper adds to the body of knowledge by providing new data and empirical insights into the issue of NRS in supply chains. The RDT has not been previously employed in this context. Past studies are mainly conceptual and, thus, the value of this paper comes from using a qualitative approach on gaining in-depth insights into supply chain-related NRS strategies and its antecedents.

2020 ◽  
pp. 000765031989881 ◽  
Author(s):  
Peter Tashman

Although natural resource scarcity is a pressing issue for many organizations, it has received little attention in management research. Drawing on resource dependence theory, this article theorizes how organizations manage uncertainty from their dependence on scarce natural resources. For this end, it explains how socio-ecological processes involving anthropogenic impacts on ecosystem services cause this form of uncertainty. It then proposes that organizations develop wide-ranging responses to such uncertainty, depending on their predominant institutional logics, from protecting and restoring ecosystems that provision critical natural resources to further developing those ecosystems for optimal resource yields at the risk of degrading them. The article adds to the limited existing research on the unique challenges of managing natural resource scarcity and extends resource dependence theory by accounting for socio-ecological dynamics that create uncertainty regarding natural resources.


2019 ◽  
Vol 39 (12) ◽  
pp. 1323-1354 ◽  
Author(s):  
Dimitra Kalaitzi ◽  
Aristides Matopoulos ◽  
Michael Bourlakis ◽  
Wendy Tate

Purpose The purpose of this paper is to investigate the implications of supply chain strategies that manufacturing companies can use to minimise or overcome natural resource scarcity, and ultimately improve resource efficiency and achieve competitive advantage. The relationship between resource efficiency and competitive advantage is also explored. Design/methodology/approach The proposed research model draws on resource dependence theory. Data were collected from 183 logistics, purchasing, sustainability and supply chain managers from various manufacturing companies and analysed by applying the partial least squares structural equation modelling technique. Findings The results indicate that both buffering and bridging strategies improve resource efficiency; however, only bridging strategies seem to lead to firm’s competitive advantage in terms of ownership and accessibility to resources. The relationship between resource efficiency and competitive advantage is not supported. Research limitations/implications Future research could confirm the robustness of these findings by using a larger sample size and taking into account other supply chain members. Practical implications This research provides guidance to managers faced with the growing risk of resource scarcity to achieve a resource efficient supply chain and an advantage over competitors. Originality/value Studies have explored the appropriate strategies for minimising dependencies caused by the scarcity of natural resources in the field of supply chain management; however, there is limited empirical work on investigating the impact of these strategies on resource efficiency and competitive advantage.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zhexiong Tao ◽  
Shanling Li ◽  
Saibal Ray ◽  
Claudia Rebolledo

Purpose This study aims to investigate how relatively weaker manufacturers respond to the dominance of stronger suppliers and/or customers. The study also analyzes how the competitive intensity perceived by manufacturers moderates their responses to powerful chain partners. Design/methodology/approach Using hierarchical regression, data from 1,417 manufacturing companies sampled from the fifth and sixth versions of the International Manufacturing Strategy Survey were analyzed. Findings This study found that relatively weaker manufacturers often adopt exploration strategies to countervail the dominance of suppliers and adopt exploitation strategies to deal with more powerful customers. In dealing with both dominant suppliers and customers, relatively weaker manufacturers are prone to adopt exploration and exploitation strategies simultaneously and hence become ambidextrous. Furthermore, the link between dominance in supply chains and the exploration (exploitation) strategy is strengthened (weakened) as market competition perceived by manufacturers intensifies. Originality/value The contribution of this paper is multi-folds. First, this paper develops and test a novel theoretical model on how relatively weaker manufacturers create tailored strategies to defend their positions in the supply chain. Second, it integrates resource dependence theory and organizational learning theory to propose that relatively weaker manufacturers could use a unique configuration of exploration and exploitation strategies to counteract the dominance of their suppliers and customers. Third, it investigates supply chain power by considering the manufacturers’ upstream and downstream powerful partners together, rather than individually and fourth, it reveals that relationships linking supply chain power to manufacturers’ tailored strategies are contingent on competitive intensity.


2018 ◽  
Vol 15 (4) ◽  
pp. 514-535
Author(s):  
Huei-Wen Pao ◽  
Cheng-Yu Lee ◽  
Pi-Hui Chung ◽  
Hsueh-Liang Wu

Purpose The industry-wide adoption of a novel practice is often considered to be an institutional change. Although research on institutionalization has been accumulating, how and why embedded actors in the field become motivated to embrace change that remains sidelined. Viewing the introduction of a new human resource management practice, the recruitment of non-compulsory certified manpower, which is still in its infancy in the service sector of Taiwan, as a new institution, the purpose of this paper is to identify the distinct motives behind firms’ hiring decisions, and examine the extent to which such hiring decisions are contingent on institutional conditions and firm attributes. Design/methodology/approach The data used to test the hypotheses were drawn from a survey on service firms in Taiwan in the second half of 2011. Hypotheses were examined through moderated hierarchical regression analyses in a sample of 254 Taiwanese service firms across major sectors. Findings Integrating the resource dependency and social contagion views, the study contends that resource scarcity drives, or legitimacy enables, service firms to deviate from traditional hiring patterns and instead adopt new preferences toward certified manpower. The study not only shows that social factors should be incorporated into the diffusion of a new HR recruitment practice in the service sector, which is traditionally based upon economic considerations, but also sheds light on the context-dependent nature of the process of institutional innovation. Originality/value This study is an attempt not only to test a dual-theoretical model on the extent to which a service firm’s new hiring pattern is influenced by two distinct types of motivation, but also to evidence how an institutional innovation, in terms of the regime of service manpower certification, takes root and spreads in the field. The managerially discretional account of the resource dependence theory needs to be reconciled with social contagion theory, which highlights the influence of collective actions and so provides a better understanding of the diffusion of new HR recruitment practices in the service industry.


2018 ◽  
Vol 23 (3) ◽  
pp. 239-254 ◽  
Author(s):  
Amir Qamar ◽  
Mark Hall

PurposeThe purpose of this paper is to robustly establish whether firms are implementing Lean or Agile production in the automotive supply chain (SC) and, by drawing on contingency theory (CT) as our theoretical lens, independently determine whether Lean and Agile firms can be distinguished based upon contextual factors.Design/methodology/approachPrimary quantitative data from 140 firms in the West Midlands (UK) automotive industry were obtained via a constructed survey. Analysis incorporated the use of logistic regressions to calculate the probability of Lean and Agile organisations belonging to different groups amongst the contextual factors investigated.FindingsLean and Agile firms co-exist in the automotive SC and Lean firms were found to be at higher tiers of the SC, while Agile firms were found to be at lower tiers.Originality/valueThe originality of this study lies within the novel methodological attempt used to distinguish Lean and Agile production, based upon the contextual factors investigated. Not only is the importance of CT theoretically approved, but “received wisdom” within SC management is also contested. Extant literature propagates that the automotive SC is comprised of organisations that predominantly adopt Lean production methods, and that in SCs comprised of both Lean and Agile organisations, the firms closer to the customer will adopt more flexible (Agile) practices, while those that operate upstream will adopt more efficient (Lean) practices. The findings from this study have implications for theory and practice, as Lean and Agile firms can be found in the automotive SC without any relationship to the value-adding process. To speculate as to why the findings contest existing views, resource dependence theory and, more specifically, a power perspective, was invoked. The authors provide readers with a new way of thinking concerning complicated SCs and urge that the discipline of SC management adopts a “fourth” SC model, depicting a new Lean and Agile SC configuration.


2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Qing Lu ◽  
Jie Wu ◽  
Mark Goh ◽  
Robert De Souza

Purpose The ramp-up in humanitarian logistics operations is a stage when the demand surges, often at the start of an emergency. In response, agility is a key strategy used by the humanitarian organizations (HOs). However, the HOs are constrained by their existing resources and have to respond in the ramp-up process under their resource dependency. The purpose of this paper is to develop a framework on agility-building strategies used by HOs for the ramp-up. Design/methodology/approach This study applies both the dynamic capabilities perspective and resource dependence theory to humanitarian relief operations, and develops four testable propositions to explore the agility-building strategies of the HOs for the ramp-up process. A multiple-case study is conducted on six international HOs operating in Indonesia to verify them, in addition to an extensive literature search. Findings The case study shows that the human resource management, pre-positioning, standardization and supplier management of the HOs are all related to their resources and environment in the ramp-up process. The authors highlight the practical differences between the few super large, resource rich and centralized HOs with the second-tier HOs. Research limitations/implications Given the small sample size and single country as the site of study, some findings may not be applicable to the other HOs or in other regions. Practical implications The propositions could be applicable to other HOs operating under similar environments, and potentially to the commercial enterprises operating in a highly volatile environment with severe resource scarcity. Originality/value This study provides new insights into ramp-up operations and into how HOs build their agility and reduce their resource dependencies. Theoretically, the paper applies two established theories in the strategic management literature to a new field.


2018 ◽  
Vol 38 (4) ◽  
pp. 1061-1090 ◽  
Author(s):  
Yu Gong ◽  
Fu Jia ◽  
Steve Brown ◽  
Lenny Koh

Purpose The purpose of this paper is to explore how multinational corporations (MNCs) orchestrate internal and external resources to help their multi-tier supply chains learn sustainability-related knowledge. Design/methodology/approach An exploratory multiple case study approach was adopted and three MNCs’ sustainable initiatives in China were examined. The data were primarily collected through 43 semi-structured interviews with managers of focal companies and their multi-tier suppliers. Findings The authors found that in order to facilitate their supply chains to learn sustainability, MNCs tend to orchestrate in breadth by internally setting up new functional departments and externally working with third parties, and orchestrate in depth working directly with their extreme upstream suppliers adopting varied governance mechanisms on lower-tier suppliers along the project lifecycle. The resource orchestration in breadth and depth and along the project lifecycle results in changes of supply chain structure. Practical implications The proposed conceptual model provides an overall framework for companies to design and implement their multi-tier sustainable initiatives. Companies could learn from the suggested learning stages and the best practices of case companies. Originality/value The authors extend and enrich resource orchestration perspective (ROP), which is internally focused, to a supply chain level, and answer a theoretical question of how MNCs orchestrate their internal and external resources to help their supply chains to learn sustainability. The extension of ROP refutes the resource dependence theory, which adopts a passive approach of relying on external suppliers and proposes that MNCs should proactively work with internal and external stakeholders to learn sustainability.


2021 ◽  
Vol 12 (2) ◽  
pp. 182
Author(s):  
Kwame Asamoah ◽  
Devika Nadarajah

There is no denying the fact that operations of manufacturing organisations have had adverse impact on the global environment and Ghana is no exception. Factors such as climate change, depletion of natural resources, environmental pollution and increase in carbon footprint as well as violation of human rights which have characterized the activities of these organisations over decades have led to a growing call by key stakeholders on manufacturing companies to have a paradigm shift in their approach to manufacturing in ways that meet environmental, economic, and social needs. It appears that an integration of manufacturing activities among channel members within the supply chain is a good approach in reducing the harmful effects of their operations, create value and wealth out of such activities and improve upon their operational performance. This paper is purposed to extend and strengthen theory building on sustainable supply chain management (SSCM) concept and supply chain integration to foster improved operational performance based on resource dependence theory.


2019 ◽  
Vol 24 (2) ◽  
pp. 256-270 ◽  
Author(s):  
Dimitra Kalaitzi ◽  
Aristides Matopoulos ◽  
Ben Clegg

Purpose The purpose of this paper is to investigate dependencies that arise between companies during the ramp-up of production volume in the electric vehicle (EV) supply chain. Design/methodology/approach An inter-company case study method has been used. Data were collected via tours of manufacturing plants, workshops and interviews from multiple tiers in a supply chain, namely, a niche EV manufacturer, as well as two of its tier-one suppliers and five of its tier-two suppliers. Findings As production volumes increased, a more relational approach was found to be necessary in inter-company relationships. The authors’ research showed that key suppliers, in addition to providing the parts, pursued a supply chain orchestrator’s role by offering direct support and guidance to the niche EV manufacturer in designing and executing its development plans. Research limitations/implications The resource dependence theory (RDT) is used to analyse and explain the changing dependencies throughout the planning and execution of production ramp-up. Practical implications This study will help supply chain managers to better manage resource dependencies during production ramp-up. Originality/value This study explores dependencies during the early stages of the production ramp-up process in the EV sector, which is in itself in the early stages of evolution. RDT is used for the first time in this context. This study has moved beyond a simple dyadic context, by providing empirical insights into the actions taken by an EV manufacturer and its suppliers, towards a multi-tier supply chain context, to better manage resource dependencies.


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