Can a supplier benefit from investing in transaction-specific investments? A multilevel model of the value co-creation ecosystem perspective

2020 ◽  
Vol 25 (6) ◽  
pp. 773-787
Author(s):  
Ming-Chang Huang ◽  
Min-Ping Kang ◽  
Jui-Kun Chiang
Keyword(s):  
Supply Chain ◽  
Transaction Cost ◽  
Network Effects ◽  
Environmental Turbulence ◽  
Firm Level ◽  
Resource Based View ◽  
Content Type ◽  
Specific Investments ◽  
Integrated Supply Chain ◽  
Chain Level

Purpose This paper aims to build and empirically test a multilevel framework integrating transaction cost economics and a resource-based view into a value co-creation ecosystem perspective to explain the chain- and firm-level effects of transaction-specific investments (TSIs) on supplier performance. Design/methodology/approach This paper investigates cross-level network effects using survey data from the List of Taiwanese Central Satellite Production Systems. A total of 34 buyers (hub firms) and 106 suppliers (satellite firms) from 34 supply chains responded to the survey. Findings Findings confirm that individual firms’ TSIs can foster co-specificity at the supply chain level, thereby improving supply chain integration (SCI). SCI can have a positive cross-level moderating effect on the TSI–performance relationship. Research limitations/implications These two key concepts, value co-creation and co-specificity, extend the theoretical application of transaction cost theory and the resource-based view to cross-level study by contributing to the research on the TSI–performance relationship. Practical implications This study’s framework is a counter to the buyer–supplier–supplier relationships in which each actor who may have different goals can create value jointly and share benefits from their TSIs. Social implications Owing to high co-specificity, being embedded in a well-integrated supply chain can be a threat when the environment is turbulent; for losing strategic flexibility, co-specificity and embeddedness may result in a collective adaptation concern. High degrees of SCI may slow the reaction to environmental turbulence for both buyers and suppliers. Originality/value Individual firms’ TSIs can foster co-specificity at the supply chain level, subsequently enhancing SCI. An integrated supply chain can be a collective asset that facilitates value co-creation. Individual firms can benefit from the sharing of collective value. SCI can also increase switching costs, thus reducing the likelihood of individual firm engaging in opportunistic behavior and cost safeguarding.

Impacts of non-GMO standards on poultry supply chain governance: transaction cost approach vs resource-based view

2016 ◽  
Vol 21 (6) ◽  
pp. 743-758 ◽  
Author(s):  
Houda Ghozzi ◽  
Claudio Soregaroli ◽  
Stefano Boccaletti ◽  
Loïc Sauvée
Keyword(s):  
Supply Chain ◽  
Transaction Cost ◽  
Genetically Modified Organisms ◽  
Animal Feed ◽  
Governance Structure ◽  
Empirical Literature ◽  
Governance Structures ◽  
Resource Based View ◽  
Content Type ◽  
Cost Approach

Purpose Following a negative attitude of consumers toward genetically modified organisms (GMOs) and the spaces left by the labeling legislation on GMOs of different countries, some retailers and processors introduced their own non-GMO standards, with the intention of avoiding the presence of GMOs in their products. This paper aims to understand how the implementation of these new retailer-driven standards affects governance structures along the supply chain and the determinants of such change focusing on transaction cost approach (TCA) vs resource-based view (RBV). Design/methodology/approach The non-GMO introduction is investigated as a case study in the poultry industry of France and Italy. The case relies on data primarily collected from interviews with the main actors at five stages of the supply chain from the retailer up to animal feed and crop production. Findings Findings indicate that the introduction of non-GMO products had different impacts on the transactions along the supply chain, generally leading to more integrated relationships. Theoretical relevance depends on the observed transaction and the type of governance structure considered. Interestingly, only RBV explains the shift toward hierarchical governance when this is observed. Originality/value This paper contributes to the empirical literature highlighting the upstream effects caused by the adoption of new standards. On the theoretical side, building on Conner and Prahalad’s (1996) seminal work and leveraging on the concepts of opportunism, “potential” superior knowledge and strategic importance of an activity, this research suggests a comparative framework for identifying governance structures and their determinants under TCA and RBV.

Moving towards “Slow Food”, the new frontier of culinary innovation in India

2016 ◽  
Vol 8 (4) ◽  
pp. 444-460 ◽  
Author(s):  
Sandeep Munjal ◽  
Sanjay Sharma ◽  
Pallavi Menon
Keyword(s):  
Supply Chain ◽  
Value Chain ◽  
Positive Impact ◽  
Round Table Discussion ◽  
Bottom Line ◽  
Slow Food ◽  
Content Type ◽  
Hospitality Sector ◽  
Integrated Supply Chain ◽  
Backward Integration

Purpose The paper aims to research the current understanding of Slow Food in the Indian hospitality sector and to identify how the industry can embrace the concept and its sustainability. To begin, underpinnings are considered in relation to traditional, locally produced food for patrons that is actually “farm to fork” in terms of its delivery model as evidenced by backward integration in the supply of key ingredients. The economics of the backward integration is analysed to measure its impact on businesses’ bottom-line in the context of an inflationary economy. Design/methodology/approach Existing published literature is reviewed with reference to the “Slow Food movement” from both an international and Indian perspective. Vedatya’s approach to sustainable culinary value chain creation and its applicability for industry adoption with an intent to offer Slow Food on commercial menus is documented and discussed. A round table discussion with key food and beverage leaders is also documented and analysed to establish the current state of awareness and readiness of the sector to offer “Slow Food” through an integrated supply chain in India. Findings Slow Food as a concept is new to India; there is a huge shift in many parts of the world towards food that is fresh, traditional and drawn from locally available ingredients. This research shares Vedatya’s experience in developing an integrated value chain that can provide a sustainable Slow Food model for the Indian hospitality and restaurant sector to deploy with a positive impact on profitability too. Research limitations/implications There is need for more research to better understand the feasibility of hospitality businesses working on supply chain with backward integration, to offer “Slow Food” to consumers. While there seems to be a demand for traditional food, this paper does not research that aspect; further research is required to ascertain the potential demand for Slow Food in India. Practical implications The popularity of Slow Food is global; however, the Indian hospitality sector is yet to warm up to this potential. The customer focus on healthy, traditional, fresh food opens an opportunity to innovate, and businesses that build capacity to offer real farm-to-fork menus can become market leaders and will reap bottom-line benefits through lower input costs because of supply chain integration. Originality/value This paper is unique in terms of offering a discussion on the potential of Slow Food as the next realm of culinary innovation in India. It also adds value by sharing the Vedatya experience in terms of developing an integrated supply chain that facilitates the Slow Food offering in a farm-to-fork format. The model can be emulated by commercial hospitality businesses resulting in cost advantages and higher satisfaction levels of customers.

Antecedents to supply chain innovation

2020 ◽  
Vol 31 (1) ◽  
pp. 145-171
Author(s):  
Fatma Nur Karaman Kabadurmus
Keyword(s):  
Supply Chain ◽  
Empirical Studies ◽  
Business Environment ◽  
Innovation Activity ◽  
Market Reforms ◽  
Sustainable Supply Chain ◽  
Firm Level ◽  
Middle Income ◽  
Content Type ◽  
Innovation Activities

PurposeThe purpose of this study is to examine organizational and environmental (competition, capital scarcity and organization of labor) factors that affect firms' innovation activities within the supply chain.Design/methodology/approachThis study empirically examines the factors that affect firms' innovation activities using firm-level data from the last round of Business Environment Enterprise Performance Surveys (BEEPS). The analysis covers major supply chain functions: production, delivery and support systems.FindingsThe study shows that drivers of innovation vary with the type of innovation activity; as such, innovation efforts across supply chain functions should prioritize strategic resources that will create competitive advantages. Our results also reveal that sustainability efforts in the Eastern Europe and Central Asia (EECA) region should prioritize labor market reforms over capital market reforms.Originality/valueCurrent research on innovation and supply chain issues does not explicitly analyze innovations that occur in different sustainable supply chain functions, and empirical studies that focus on the determinants of innovations in the supply chain network are very limited. The data used in this study cover 30 economies in EECA, many of which are low- and middle-income countries, and thus contribute to the implementation of sustainable practices in developing countries.

scholarly journals Projecting at the project level: MMC supply chain integration roadmap for small housebuilders

2019 ◽  
Vol 19 (2) ◽  
pp. 193-211 ◽  
Author(s):  
Ruth Dowsett ◽  
Martin Green ◽  
Martin Sexton ◽  
Chris Harty
Keyword(s):  
Supply Chain ◽  
Supply Chain Integration ◽  
Future Research ◽  
Firm Level ◽  
Content Type ◽  
Timber Frame ◽  
Road Map ◽  
Innovation Activities ◽  
The Uk ◽  
Key Aspects

Purpose This paper aims to provide insights into how supply chain integration may occur for small housebuilders adopting modern methods of construction (MMCs). The process of creating an empirically informed road map is described, whereby the practical day-to-day challenges of adopting a timber-frame solution on a small housing development in Southeast England were fed into a road map of future supply chain integration scenarios. The intention is to better position small housebuilders to contribute in addressing the shortfall in housing that continues to face the UK. Design/methodology/approach Interviews with supply chain members along with on-site observations captured key aspects of integration. Findings were used within two collaborative forums to guide discussion in a dual approach; discussing the challenges of timber-frame on the project and what would be needed on future projects for the firms analysed. Findings Empirically informed malleable roadmaps, of the kind developed within this study, provide feasible options for small housebuilders and suppliers of MMCs to collectively collaborate when transitioning towards fully integrated supply chains. Practically, the roadmapping approach, and the roadmap itself, would help small housebuilders and suppliers of MMCs transition towards full integration. Opening up avenues of integration that are spread across yet connected through numerous phases, firms and technologies helps construction professionals use more sophisticated modular and volumetric off-site solutions. Research limitations/implications Data collection took place over the course of a year. Future research could expand this relatively short duration to analyse the potential for construction professionals within the supply chain to integrate further over a longer period of time. Originality/value The novelty and contribution of this paper lie in the development and application of an alternative approach to roadmapping that departs from the normative linear examples of roadmaps found within the technology-roadmapping literature. The authors present a structured yet flexible approach to roadmapping that is both representative of the strategic planning and innovation activities that occur within small housebuilding firms and open to adaption to account for firm-level characteristics and contingencies. Positioned alongside firm-level dynamics (e.g. business cases and approaches to design), the roadmapping approach also reinforces the potential of incremental rather than whole-scale transitions.

Business environment-supply chain framework and benchmarking supply chain structures

2018 ◽  
Vol 25 (8) ◽  
pp. 3021-3044 ◽  
Author(s):  
Meryem Uluskan ◽  
A. Blanton Godfrey
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Path Analysis ◽  
Direct Effect ◽  
Business Environment ◽  
Chain Management ◽  
Content Type ◽  
The Usa ◽  
Micro Level ◽  
Chain Level

Purpose The purpose of this paper is to develop a supply chain management framework covering different business environment levels, that is, macro, micro and supply chain levels, and also to evaluate Haiti vs China as apparel-sourcing partners by assessing macro-level, supply-chain-level and micro-level environments from the US apparel buyers’ perspective. Design/methodology/approach In order to achieve this, first, a framework covering these business environment levels was developed and tested through path analysis. Prior to path analysis exploratory factor analysis was conducted to verify proposed factor structures. Data were collected using face-to-face interviews with a sample of 41 apparel companies that operate in the USA and source from China and Haiti. Findings This study found that both supply-chain-level and micro-level environments positively impact global supply chain performance. Supply-chain-level also has a direct effect on micro-level environment and macro-level environment has only a direct effect on supply-chain-level environment. Interviews and discussions based on this framework indicate that Haiti’s proximity to the USA, price, low-wage rates, small-order sourcing opportunities and good basic sewing skills are among Haiti’s strengths. Originality/value This study is unique in developing a multi-level environment framework for supply chain management and in comparing Haiti and China in terms of their supply chains to evaluate the potential competitiveness of Haitian apparel supply chain.

Comparative multi criteria analysis and dependent optimisation through integrated supply chain

2014 ◽  
Vol 63 (8) ◽  
pp. 1046-1069 ◽  
Author(s):  
Sanjay Sharma ◽  
Akshat Sisodia
Keyword(s):  
Supply Chain ◽  
Lead Time ◽  
Service Level ◽  
Inventory Level ◽  
Inventory Policies ◽  
Inventory Cost ◽  
Content Type ◽  
Customer Service Level ◽  
Integrated Supply Chain ◽  
Different Levels

Purpose – The purpose of this paper is to compare various inventory policies and their effect on various performance metrics at different levels of a multi stage supply chain. Later the model is integrated to include optimization of entire supply chain through implementation of collaborative supply chain model. Design/methodology/approach – Alternative inventory policies have been developed at different echelons and a comparison reflecting the usability on various factors such as inventory level, inventory cost and service level is presented so as to support the decision-making process. Various inventory policies such as economic order quantity, periodic ordering (T, M) and stock to demand have been considered. Along with the basic assumptions; lead time, demand variability, variability in demand during lead time, stock out costs have also been included to make the model more applicable to practical situations. Findings – After the selection of most appropriate inventory policy at each level through a decision matrix, the total cost of operating such a supply chain is calculated along with other parameters such as service level and inventory turns. The approach is of aggregating the optimized value at each echelon referred to as aggregated supply chain in the paper. Then the concept of integrated supply chain is introduced which optimizes the supply chain as a whole, rather than aggregating local optima. The comparison is made between the two approaches that prove the integrated supply chain's superiority. Furthermore, dependent optimization is run as it is not practically possible for each echelon to optimize at the same time. Originality/value – Each echelon is allowed to optimize at a time and other echelons assume corresponding values. This final comparative multi criterion analysis is based on the three factors, i.e. inventory cost, customer service level and inventory turnover with different weights assigned to each factor at different levels of a supply chain. Finally a consolidation of results is made to reflect the overall preference which proves that an integrated supply chain best serves all the parameters combined together.

An empirical study of Chinese SME grocery retailers’ distribution capabilities

2016 ◽  
Vol 21 (1) ◽  
pp. 63-77 ◽  
Author(s):  
Teck-Yong Eng
Keyword(s):  
Supply Chain ◽  
Market Orientation ◽  
Uncertain Environments ◽  
Resource Based View ◽  
Content Type ◽  
Behavioral Norms ◽  
Supply Chain Relationships ◽  
Interfirm Relations ◽  
Internal Distribution ◽  
The Right

Purpose – This study aims to examine theoretical insights from market orientation and resource-based view for enhancing grocery retailers ' distribution capabilities. The distribution capability of a firm can influence both effective and efficient handling of external stocks and internal distribution of products in response to changing market demands. Although firms rely on distribution capability to manage their supply chain to ensure the right products are in the right place at the right time, few studies examine the underlying factors that support distribution capabilities for a firm’s upstream and downstream supply chain activities especially in uncertain environments. Design/methodology/approach – In the context of retail firms, a review of the literature shows that distribution capability can be conceptualized as an interfirm phenomenon based on theoretical insights from the resource-based view, market orientation and network structure. Findings – Data from a sample of 247 small- and medium-sized grocery retailers operating in three major Chinese cities highlight a salient and positive relationship between a retailer’s distribution capabilities and its performance in uncertain environments. Originality/value – However, a retailer’s strong interfirm relations in a distribution network are negatively associated with retailer performance. Similarly, the influence of interfirm market orientation on retailer performance cannot be established in the supply chain. The study suggests that SME grocery retailers would benefit from understanding their numerous supply chain relationships and managing them (rather than relying on centrally ingrained relationships), and developing behavioral norms of interfirm market orientation among different supply chain partners.

scholarly journals Cost-based transfer pricing with the existence of a direct channel in an integrated supply chain

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jumpei Hamamura
Keyword(s):  
Supply Chain ◽  
Cost Allocation ◽  
Transfer Pricing ◽  
Variable Cost ◽  
Fixed Cost ◽  
Direct Channel ◽  
Content Type ◽  
Fixed Cost Allocation ◽  
Transfer Prices ◽  
Integrated Supply Chain

Purpose This study aims to analytically explore the economic role of transfer pricing in a vertically integrated supply chain with a direct channel, specifically when it uses cost-based transfer prices, as is frequently observed in management practices. We compare two representative transfer pricing methods: full-cost and variable-cost pricing. Although many firms open a direct channel, which affects the optimal decision on transfer prices, prior literature has not considered this case. Design/methodology/approach We demonstrate the results using a non-cooperative game theoretical approach. Findings The results show that full-cost pricing is more profitable than variable-cost pricing when the fixed cost allocation to the marketing division is low, contrary to the established position in prior studies, from which I select their benchmark case. Moreover, we obtain a counterintuitive result, whereby, the firm-wide profit of a vertically integrated supply chain increases with fixed cost allocation. Originality/value This study considers the direct channel and internal transfer pricing in a vertically integrated supply chain, while prior research only considers one or the other. This model suggests an optimal choice of cost-based transfer pricing in managerial decisions. In addition, the authors demonstrate the positive effect of increasing fixed cost allocation, which prior management studies do not show. The findings of this study have implications for managerial practice by providing insights into supply chain design and showing that firms should consider the competition between channels when making decisions about transfer pricing methods.

Antecedents and consequences of supply chain information integration: a resource-based view

2016 ◽  
Vol 21 (6) ◽  
pp. 661-677 ◽  
Author(s):  
Baofeng Huo ◽  
Zhaojun Han ◽  
Daniel Prajogo
Keyword(s):  
Supply Chain ◽  
Service Quality ◽  
Financial Performance ◽  
Information Integration ◽  
Positive Relationship ◽  
Operational Efficiency ◽  
Equation Modeling ◽  
Resource Based View ◽  
Content Type ◽  
Antecedents And Consequences

Purpose This paper aims to investigate the antecedents of supply chain information integration (SCII) and their consequences on company performance from the perspective of resource-based view (RBV). Design/methodology/approach Based on empirical survey data collected from 202 Australian manufacturers, this study examines the effects of strategic supply chain relationship (SCR) and supply chain technology (SCT) internalization on external and internal information integration (II) and the effects of external and internal II on operational (operational efficiency and service quality) and financial performance. Structural equation modeling and the maximum-likelihood estimation methods are used to test the proposed relationships. Findings The results indicate that both strategic SCR and SCT internalization are positively related to external and internal II. Moreover, strategic SCR has a stronger positive relationship with external II than with internal II, and SCT internalization has a stronger positive relationship with internal II than with external II. Internal II is positively related only to service quality, and external II is positively related only to operational efficiency. Both operational efficiency and service quality are positively related to financial performance. Originality/value This study contributes to the SCII literature and provides significant managerial implications for manufacturers to leverage their supply chain resources and capabilities by establishing a resources-capabilities-performance framework for the antecedents and consequences of SCII.

Made in Vietnam

2018 ◽  
Vol 21 (4) ◽  
pp. 581-600 ◽  
Author(s):  
Thuy Phung Minh Thu ◽  
Joris Knoben ◽  
Patrick Vermeulen ◽  
Dat Tho Tran
Keyword(s):  
Developing Countries ◽  
Supply Chain ◽  
Product Innovation ◽  
Firm Level ◽  
Content Type ◽  
External Knowledge ◽  
Sources Of Knowledge ◽  
Research Institutes ◽  
Collaborative Knowledge ◽  
Different Sources

PurposeThe purpose of this paper is to simultaneously test the association between three different sources of knowledge (internal, collaborative and regional) and innovation. This study aims to expand the insights by assessing these associations in the context of a rapidly developing and liberalizing economy; Vietnam. By conducting this study with Vietnamese data, the authors can assess whether the association between different sources of knowledge and innovation shows systematic differences to those in advanced economies.Design/methodology/approachIn this study, the authors utilize data from two main sources: The World Bank Enterprise Survey and the Innovation Capabilities Survey. These firm-level surveys comprise non-agricultural formal and private sector firms. For Vietnam, 300 manufacturing firms have been included in the sample. The authors use a series of binary logistic regression models to analyze the data.FindingsThe analyses reveal that internal R&D has a strong positive association with product innovation. In contrast to findings in Western economies, not all kinds of collaborative knowledge sources have a significant association with innovation. Only collaborative knowledge gained from inside the supply chain is positively related to product innovation. Unexpectedly, negative effects from using too much external knowledge were also found.Research limitations/implicationsDue to the cross-sectional nature of the data causality could not be inferred from the study. Moreover, a relatively large number of the measures were dichotomous due the large number of missing observations for more detailed measurements of the variables.Practical implicationsWhen developing their innovation strategy firms in developing countries should take into account that collaborating with partners useful, but only if they collaborate within the supply chain. As such, firms should increase their interaction with suppliers and customers and put their efforts on the development of customized solutions for them.Social implicationsThe Vietnamese Government could implement policies that help to enhance the quality of universities and research institutes. In most developed countries, universities and research institutes are vital sources of knowledge for innovation whereas they are not in Vietnam.Originality/valueThis paper contributes to the growing body of literature on firm-level innovation in developing countries. It identifies several core differences between the drivers of innovation in developed and developing contexts. Surprisingly, a feature that was expected to differ, the negative effect of over-search of external knowledge on innovation, was also found in Vietnam.

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