scholarly journals Do network capabilities improve corporate financial performance? Evidence from financial supply chains

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Liukai Wang ◽  
Ji Yan ◽  
Xiaohong Chen ◽  
Qifa Xu
Keyword(s):  
Supply Chain ◽  
Financial Performance ◽  
Supply Chains ◽  
Service Providers ◽  
Financial Service ◽  
Corporate Financial Performance ◽  
Network Centrality ◽  
Tobin's Q ◽  
Content Type ◽  
Network Power

PurposeThe purpose of this study is to bridge the gap in the literature on supply chain finance (SCF) by exploring the relationship between network capabilities and corporate financial performance (CFP) in financial supply chains (FSCs).Design/methodology/approachThe authors collect panel data and adopt regression analysis to analyse the joint investment activities among 1359 manufacturing firms and 289 financial service providers in China to explore how network capabilities, both network power and network centrality, improve CFP in the FSCs.FindingsUnder the FSCs environments, network centrality (i.e. eigenvector centrality, closeness centrality and betweenness centrality) raises CFP (ROA, ROE and Tobin's Q) and network power (node degree, clustering coefficient) also improves CFP. However, node strength from the network power stream has a negative effect on Tobin's Q, indicating that when the partner of a firm has an extremely strong influence in FSCs; this weakens the bargaining ability and flexibility of the focal firm, thus reducing its long-term financial performance.Practical implicationsThe joint investment activities among supply chain partners and financial service providers help managers understand the advanced financing solutions generated by internal and external network organisations as well as be aware of network capabilities' impact on CFP in FSCs.Originality/valueThis study answers the call for more empirical research on SCF to provide a broader sample to examine financial supply chain management. This is one of the earliest studies to shed light on a new perspective – how network capabilities improve CFP in the FSCs.

Farm business financial performance in local foods value chains

2018 ◽  
Vol 78 (4) ◽  
pp. 470-488 ◽  
Author(s):  
Mary Clare Ahearn ◽  
Kathleen Liang ◽  
Stephan Goetz
Keyword(s):  
Supply Chain ◽  
Financial Performance ◽  
Supply Chains ◽  
Food System ◽  
Choice Model ◽  
Direct Marketing ◽  
Small Samples ◽  
Local Foods ◽  
Content Type ◽  
Local Supply

PurposeThe purpose of this paper is to identify the factors associated with farm financial success for those farms known to produce for local supply chains. The analysis considers alternative measures of farm financial performance and considers the role of the local foods supply chain in the choice to market locally.Design/methodology/approachThe paper uses a two-stage Heckman approach which addresses the possibility of sample selection bias. In the first stage, the choice model to engage in direct marketing is estimated. In the second stage, the authors estimate a model of the financial performance of those in the sample that direct marketed which includes an IMR term calculated from the parameters of the first stage equation. The analysis uses national farm-level data from the Agricultural and Resource Management Survey of the US Department of Agriculture and combines data from 2009 to 2012 to overcome the constraint of small samples.FindingsIndicators of the development of a local foods supply were positively related to the choice to engage in direct marketing. Factors affecting farm financial performance varied significantly between a short-term and a long-term measure. The results emphasize the importance of considering multiple outcome measures, developing local supply chains and provide implications about beginning farms.Originality/valueIf a local foods system is going to thrive, the farms that market the agricultural products in the local food system must attain a certain level of profitability. The value of the analysis is an improved understanding of the financial performance of farms producing for a small, but growing segment of the food supply chain.

Challenges and opportunities to integrate the oldest and newest manufacturing processes: metal casting and additive manufacturing

2020 ◽  
Vol 26 (6) ◽  
pp. 1145-1154 ◽  
Author(s):  
Paul Lynch ◽  
C.R. Hasbrouck ◽  
Joseph Wilck ◽  
Michael Kay ◽  
Guha Manogharan
Keyword(s):  
Supply Chain ◽  
Additive Manufacturing ◽  
Supply Chains ◽  
Service Providers ◽  
Three Dimensional ◽  
Metal Casting ◽  
Content Type ◽  
Digital Ecosystem ◽  
Volume Production ◽  
Low Volume

Purpose This paper aims to investigate the current state, technological challenges, economic opportunities and future directions in the growing “indirect” hybrid manufacturing ecosystem, which integrates traditional metal casting with the production of tooling via additive manufacturing (AM) process including three-dimensional sand printing (3DSP) and printed wax patterns. Design/methodology/approach A survey was conducted among 100 participants from foundries and AM service providers across the USA to understand the current adoption of AM in metal casting as a function of engineering specifications, production demand, volume and cost metrics. In addition, current technological and logistical challenges that are encountered by the foundries are identified to gather insight into the future direction of this evolving supply chain. Findings One of the major findings from this study is that hard tooling costs (i.e. patterns/core boxes) are the greatest challenge in low volume production for foundries. Hence, AM and 3DSP offer the greatest cost-benefit for these low volume production runs as it does not require the need for hard tooling to produce much higher profit premium castings. It is evident that there are major opportunities for the casting supply chain to benefit from an advanced digital ecosystem that seamlessly integrates AM and 3DSP into foundry operations. The critical challenges for adoption of 3DSP in current foundry operations are categorized into as follows: capital cost of the equipment, which cannot be justified due to limited demand for 3DSP molds/cores by casting buyers, transportation of 3DSP molds and cores, access to 3DSP, limited knowledge of 3DSP, limitations in current design tools to integrate 3DSP design principles and long lead times to acquire 3DSP molds/cores. Practical implications Based on the findings of this study, indirect hybrid metal AM supply chains, i.e. 3DSP metal casting supply chains is proposed, as 3DSP replaces traditional mold-making in the sand casting process flow, no/limited additional costs and resources would be required for qualification and certification of the cast parts made from three-dimensional printed sand molds. Access to 3DSP resources can be addressed by establishing a robust 3DSP metal casting supply chain, which will also enable existing foundries to rapidly acquire new 3DSP-related knowledge. Originality/value This original survey from 100 small and medium enterprises including foundries and AM service providers suggests that establishing 3DSP hubs around original equipment manufacturers as a shared resource to produce molds and cores would be beneficial. This provides traditional foundries means to continue mass production of castings using existing hard tooling while integrating 3DSP for new complex low volume parts, replacement parts, legacy parts and prototyping.

scholarly journals Low-Carbon Initiatives of Logistics Service Providers: The Perspective of Supply Chain Integration

2019 ◽  
Vol 11 (12) ◽  
pp. 3233 ◽  
Author(s):  
Cheng Qian ◽  
Shenghui Wang ◽  
Xiaohong Liu ◽  
Xueying Zhang
Keyword(s):  
Supply Chain ◽  
Financial Performance ◽  
Supply Chains ◽  
Service Providers ◽  
Supply Chain Integration ◽  
Low Carbon ◽  
Corporate Environmental Responsibility ◽  
Logistics Service ◽  
Carbon Supply ◽  
Logistics Service Providers

Logistics service providers (LSPs) are under tremendous pressure in the fight against global climate change. While existing research has examined the operational importance of LSPs in decarbonizing supply chains, the strategic perspective of LSPs on low carbon supply chains has not received enough attention. Motivated by the evolving role of LSPs from a service provider to a resource integrator in the supply chain, drawing on the relational view of inter-organizational competitive advantage, this paper focuses on LSPs’ low-carbon supply chain integration (SCI) and empirically investigates its drivers and outcomes. Data from 124 Chinese LSPs shows that LSPs’ corporate environmental responsibility and customer environmental requirement have positive relationships with LSPs’ low-carbon SCI, and that LSPs’ low-carbon SCI is positively related to LSPs’ environmental and financial performance. In addition, LSPs’ environmental performance is found to have a positive relationship with LSPs’ financial performance. These findings not only provide new insights for LSPs’ low-carbon supply chain initiatives, but also highlight the importance of SCI as a strategic approach in low-carbon supply chain management.

scholarly journals Integrating the Supply Chain … 25 years on

2016 ◽  
Vol 46 (1) ◽  
pp. 19-42 ◽  
Author(s):  
Graham C. Stevens ◽  
Mark Johnson
Keyword(s):  
Supply Chain ◽  
Financial Performance ◽  
Supply Chains ◽  
Original Work ◽  
State Of The Art ◽  
Conceptual Approach ◽  
Content Type ◽  
Firm Financial Performance ◽  
Practical Implications ◽  
Selection Of

Purpose – Twenty-five years ago IJPDLM published “Integrating the Supply Chain” (Stevens, 1989). The purpose of that original work was to examine the state-of-the-art in supply chain management (SCM). There have been substantial changes to the landscape within which supply chains function and changes to supply chains themselves. Given these changes it is appropriate to re-visit what is the new state-of-the art and determine whether the 1989 conceptualization requires extending. The authors also attempt to assess whether the evolution of SCM is associated with improved financial performance. The paper aims to discuss these issues. Design/methodology/approach – The authors take a conceptual approach to suggest that SCM is undergoing a transition to devolved, collaborative supply chain clusters. In addition, the authors consider imperatives and models for supply chain change and development. In line with the 1989 work, many of the observations in this invited paper are based on the primary author’s experience. The authors use a selection of financial data from leading firms to assess whether benefits attributed to SCM and changes in supply chain operating models have affected financial performance. Findings – The authors formalize a model for the dynamics of SCM change. The authors also synthesize a number of models of SCM that extend the original, highly cited work. These include goal-oriented networks and devolved, collaborative supply chain clusters. The authors also find the associations between the evolution of SCM and measures of firm financial performance over time to be equivocal. Practical implications – This work proposes two additional operating models that firms can implement in order to improve the efficacy of their supply chains. Originality/value – The authors extend Stevens (1989) original work by synthesizing a number of additional models for SCI.

scholarly journals Chain coordinators’ strategic leadership and coordination effectiveness

2017 ◽  
Vol 29 (5) ◽  
pp. 515-533 ◽  
Author(s):  
Pervaiz Akhtar ◽  
Sushil Kaur ◽  
Khanyapuss Punjaisri
Keyword(s):  
Supply Chain ◽  
New Zealand ◽  
Financial Performance ◽  
Supply Chains ◽  
Food Supply ◽  
Supply Chain Coordination ◽  
Strategic Leadership ◽  
Content Type ◽  
Food Supply Chains ◽  
Practical Implications

Purpose Although suitable leadership is crucial for chain coordinators (chief executive officers (CEOs), managing directors and heads of departments) to achieve the effectiveness of supply chain coordination (operational and social performances contributing to financial performance), the potential caveats in New Zealand-Euro agri-food supply chains are the lack of theoretical as well as empirical investigations that scrutinize the linkages between leadership styles, their interactions and the effectiveness of supply chain coordination. The purpose of this study is therefore to address the above knowledge gap. Design/methodology/approach Structural equation modelling and interaction effects are applied to the data collected from chain coordinators working in the selected New Zealand-Euro agri-food supply chains (dairy, meat, fruits and vegetables). Findings The results indicate that participative leadership is more strongly correlated with the effectiveness of supply chain coordination than directive leadership. The directive leadership is also significant, which leads towards the adoption of strategic leadership. Interaction effects further conclude that companies perform better when their chain coordinators apply strategic leadership practices. Moreover, operational (service quality and product quality) and social (trust in and satisfaction with supply chain partners) performances are the key determinants of financial performance (increased sales, profit and market share). Practical implications The results enhance the understanding of chain coordinators and help them to achieve coordination effectiveness among agri-food supply chain partners. Therefore, the study provides practical implications linked with contemporary international agri-food supply chains. Originality/value This study provides in-depth analysis to develop a comprehensive theoretical framework, which helps to confirm the complicated linkages between the underlying constructs, with the specific characteristics of New Zealand-Euro agri-food supply chains. Consequently, the results also clarify the earlier ambiguous findings from other industries and countries.

scholarly journals Challenges in extending sustainability across a transport supply chain

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Helena Forslund ◽  
Maria Björklund ◽  
Veronica Svensson Ülgen
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Agency Theory ◽  
Service Providers ◽  
Third Party ◽  
Information Asymmetries ◽  
Environmental Implications ◽  
Content Type ◽  
Transport Supply

Purpose Sustainability approaches across product supply chains are well-known, while similar knowledge on transport supply chains (TSC) is limited. The purpose of this paper is to explore sustainability approaches and managerial challenges in extending sustainability across a TSC. Design/methodology/approach This paper presents a case study of a TSC with a shipper, a third-party logistics firm and a hauler. Each actor’s views on sustainability-related communication and relations with other TSC actors are analyzed through the lens of agency theory. Findings Each dyad in the TSC reveals different, more or less collaboration-based approaches. Challenges are revealed, including the lack of shipper understanding for the TSC context and the use of immature contracts, which disincentivizes sustainability compliance. The multi-tier study object reveals the silencing of distant actors and the need for actors to take on mediating roles to bridge information asymmetries. Research limitations/implications Combining literature perspectives (relations, communication and agency theory) provides a deeper understanding of the approaches applied and identifies different challenges. The inclusion of agency theory reveals principal problems such as information asymmetries between agents and less-informed principals and suggests complementary labels of supply chain actors. Practical implications Practical contributions include the highlighting of managerial challenges, which can aid managers in extending sustainability across TCSs. Social implications The case study method offers insights into collaboratively improving sustainability in supply chains (such as using contracts), thus having social and environmental implications. Originality/value The paper narrows knowledge gaps about managing sustainability among logistics service providers and analyzes data from multi-tier actors.

scholarly journals Who’s to blame or praise? Performance attribution challenges in outsourced service provision in supply chains

2016 ◽  
Vol 21 (5) ◽  
pp. 513-533 ◽  
Author(s):  
Kostas Selviaridis
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Service Provision ◽  
Service Management ◽  
Service Providers ◽  
Harmful Effect ◽  
Performance Measurement System ◽  
Business Services ◽  
Content Type ◽  
Performance Attribution

Purpose The aim of this paper is to understand the antecedents and effects of performance attribution challenges arising in the provision of business-to-business (B2B) services in supply chains. Design/methodology/approach The study draws on three in-depth case studies of logistics service providers (LSPs) offering supply chain solutions to their clients in Sweden. The analysis of performance attribution challenges and their antecedents and effects is based on 38 semi-structured interviews and review of 43 documents, including contracts and performance monitoring records. Findings Three key antecedents of performance attribution challenges are stressed. Two of these, the inseparability and contestability of service inputs, are closely related to the notion of service co-production. The third antecedent is the limited provider capability in performance data collection and analysis. Performance attribution challenges may result in provider aversion to performance-related risk and have a harmful effect on client relationships, for example, in terms of provider perceptions of opportunism and unfair allocation of gains. These effects can be mitigated through contracting, interventions in performance measurement system design and deployment of relational mechanisms. Research limitations/implications The paper extends the service management literature that emphasises on service co-production by suggesting that inputs of the client firm and its supply chain partners may not only vary in quality but also can be inseparable from provider inputs and highly contestable. It also empirically demonstrates how performance attribution challenges and their antecedents and effects manifest themselves in B2B service provision, as opposed to supply chain settings where the main user of logistics services is the consumer. Practical implications LSP managers should contract for performance based on high-quality and incontestable external inputs they rely upon. Contractual specifications (performance indicators and related incentives) should explicate and consider the inputs required by clients and their supply chain partners to minimise their contestability. Originality/value The study proposes an empirically based framework of the antecedents and effects of performance attribution challenges, an issue that has received scant attention in logistics outsourcing research and the business services literature more broadly.

Governance modes in supply chains and financial performance at buyer, supplier and dyadic levels: the positive impact of power balance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Leonardo Marques ◽  
Paulo Lontra ◽  
Peter Wanke ◽  
Jorge Junio Moreira Antunes
Keyword(s):  
Financial Performance ◽  
Supply Chains ◽  
Information Entropy ◽  
Performance Metrics ◽  
Maximal Entropy ◽  
Power Balance ◽  
Network Centrality ◽  
Content Type ◽  
The Impact ◽  
Governance Modes

PurposeThis study analyzes whether power in the supply chain, based on governance modes and network centrality, explain financial performance at different levels of analysis: buyers, suppliers and dyads.Design/methodology/approachThe study employs a dual macro-micro lens based on global value chain (i.e. market, modular, relational and captive governance modes) and social network analysis (network centrality) to assess the impact of power (im)balance onto financial performance. Different from previous research, this study adopts information reliability techniques – such as information entropy – to differentiate the weights of distinct financial performance metrics in terms of the maximal entropy principle. This principle states that the probability distribution that best represents the current state of knowledge given prior data is the one with largest entropy. These weights are used in TOPSIS analysis.FindingsResults offer insightful reflections to SCM research. We show that buyers outperform suppliers due to power asymmetry. We ground our findings both analyzing across governance modes and comparing network centrality. We show that market and modular governances (where power balance prevails) outperform relational and captive modes at the dyadic level – thus inferring that in the long run these governance modes may lead to financially healthier supply chains.Originality/valueThis study advances SCM research by exploring the impact of governance modes and network centrality on performance at both firm and dyadic levels while employing an innovative combination of secondary data and robust set of techniques including TOPSIS, WASPAS and information entropy.

Involving financial service providers in supply chain finance practices

2017 ◽  
Vol 18 (1) ◽  
pp. 42-62 ◽  
Author(s):  
Judith Martin ◽  
Erik Hofmann
Keyword(s):  
Supply Chain ◽  
Service Providers ◽  
Integrated Management ◽  
Value Added ◽  
Financial Service ◽  
Expert Interviews ◽  
Financial Flows ◽  
Content Type ◽  
Supply Chain Finance ◽  
Multi Method Approach

Purpose The purpose of this paper is the analysis of reasons to involve financial service providers (FSPs) in the integrated management of supply chain flows through supply chain finance (SCF) practices. In addition, service requirements are derived for FSPs in order to respond to company needs related to SCF practices. Design/methodology/approach The selected methodology represents a multi-method approach. First, a survey with 62 companies from Switzerland and ten expert interviews were applied to analyze company needs. Second, the study was complemented with a review of gray press, online offers and 11 expert interviews on the service offer of FSPs for managing supply chain flows. Findings The results derive company needs for an integrated management of supply chain flows. The company needs are matched with available service offer of FSPs. Based on this match quality gaps are identified and service requirements are derived. The results describe initial measures to close the quality gaps. Research limitations/implications This research primarily focuses on financial flows related to the working capital of companies thereby neglecting fixed assets. Practical implications The results provide companies with a structured process to analyze the value added of FSPs. FSPs can use the results to better match their service offer with company needs. Originality/value This research contributes to research on SCF by developing a structured process for analyzing the company needs for SCF practices as well as the value added of FSPs in offering these practices.

scholarly journals Building reputation through sustainable supplier selection: the case of an emerging economy

2020 ◽  
Vol 29 (3) ◽  
pp. 315-332
Author(s):  
Mohammad Asif Salam ◽  
Murad Ali
Keyword(s):  
Supply Chain ◽  
Financial Performance ◽  
Supply Chains ◽  
Supplier Selection ◽  
Emerging Economy ◽  
Equation Modeling ◽  
Content Type ◽  
Sustainable Supply Chains ◽  
Sustainable Supplier Selection ◽  
The Impact

PurposeThe purpose of this research is to examine the drivers of sustainable supplier selection (SSS) and investigate the extent to which it is associated with a buyer's financial performance within an emerging economy context.Design/methodology/approachThe data were collected from 235 supply chain and procurement professionals in Thailand. The structural relationship was tested using partial least squares based structural equation modeling (PLS-SEM) and PROCESS tool.FindingsBased on the empirical findings, firms that pursue sustainability initiatives during supplier selection process enjoy better financial performance than their competitors. The analysis suggests six hypothetical paths explain SSS. Suppliers' human rights and safety focus are the most powerful determinants of SSS. Significantly, positive support was found for the SSS and buyers' financial performance relationship. Finally, there is a significant moderating effect of resource investment on sustainability efforts.Research limitations/implicationsData for the study were collected from a single industry, so the findings are indicative but not representative of all supply chains. Due to this limitation, the findings cannot be generalized across other countries and industries. This study is a starting point in understanding the role of SSS in creating a sustainable supply chain. Future research may develop a comprehensive understanding of the nature and magnitude of the impact of SSS on sustainable supply chains.Originality/valueThis paper contributes toward an understanding of the determinants of SSS and its consequences for sustainable supply chains.

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