Distributed production under the pandemic shock: Vulnerability, resilience and the new stage of globalization

The paper draws attention to a new wave of public and academic debate on the future of globalization and on rationality of countries’ further participation in distributed production, i.e., their involvement in global value chains (GVCs) and value-added trade. Raised during the COVID-19 pandemic shock, this debate is the reaction of countries to the global diffusion of downfalls through transborder supplies. We analyze vulnerabilities of GVCs to sudden shocks, demonstrate the role of these risks in escalating the 2020 global recession and in shaping its unique features, as well as scrutinize the emerging post-pandemic strategies of leading MNEs for enhancing the GVC resilience. We argue that despite the collapse of the just-in-time supply system and the crucial dependency of many domestic industries on imports from China, the pandemic shock could neither undermine foundations of distributed production nor lead to mass reshoring. On the contrary, both analyzed practice and surveyed econometric literature confirm that benefits of countries’ participation in GVCs outweigh risks of their falling under potential rippling disruptions. Moreover, MNEs’ resilience strategies, which we classified into three interrelated lines of action (restructuring of GVCs’ supplier networks, production optimization, and GVCs’ digital transformation), give globalization a new impetus. We conclude with describing the changing features of distributed production under the ongoing GVCs’ restructuring and outline a number of promising export opportunities that objectively open up in the 2020s for developing economies, including Russia. In the course of our study, we examine key properties of resilient systems (robustness, flexibility, redundancy), some new notions (disruption risks, ripple effect, etc.), and new management approaches relevant for all types of economies and businesses under increased uncertainty.

Complexity, continuity, and strategic management of buyer–supplier relationships from a network perspective

PURPOSE: Current research seeks to create an economic model that connects strategic management and network theory. However, most theoretical models do not provide empirical evidence of network relationships’ real structure and attributes. The purpose of the paper is to explore the relation between enterprise characteristics and the characteristics of buyer–supplier relationships in supply chain networks. We are specifically interested in business relationships in networks with respect to the various enterprises’ sizes and sectors of industry. The subject of our research was characteristics, such as network relationship complexity, continuity of relationships, and strategic management in networks. The paper summarizes the results of an empirical study on buyer-supplier networks and accentuates the importance of developing and fostering business collaboration for strategic management. METHODOLOGY: We conducted the questionnaire research in 2016–2019 on 360 enterprises from the Czech Republic. We selected the research sample based on the non-probability purposive sampling method. The members of the research team collected data from an online survey and personal visits to enterprises. The statistical analysis of hypotheses is based on the frequency of managers’ answers. To evaluate results, a two-proportion Z-Test is used for comparing different categories of enterprises according to their enterprise size or prevailing sector of the industry. FINDINGS: The main results show that the differences between enterprises involved in the buyer–supplier structures lie mainly in their size. The survey did not identify differences between industry sectors. The findings show that the complexity of networks in the Czech Republic is not high in terms of the number of suppliers or involvement in many supply networks. The continuity of relationships with partners in buyer–supplier networks is relatively long-term oriented. Long-term partnerships reflect the higher quality of relationships and support future integration. However, large enterprises prefer to build contracts for shorter or longer periods. An overall decentralization strategy characterizes the strategic management of buyer–supplier networks. This finding means dividing competencies such as planning, managing, sourcing, decision-making, transporting (delivering) among more enterprises. IMPLICATIONS FOR THEORY AND PRACTICE: The paper provides an insight into understanding how the buyer–supplier network functions. The theory’s implication builds on the connection of supply chain management and strategic management from the network perspective. Supply chain management is viewed as a part of strategic management, and the synthesis of both research areas opens an innovative view to business theory. ORIGINALITY AND VALUE: The paper’s principal value is the connection between contemporary ideas of strategic management and supply chain management. The synthesis of supply chain management and network approach enhances strategic management theory.

Approximation Algorithm-Based Prosumer Scheduling for Microgrids

Since the inherent intermittency and uncertainty of renewable energy resources complicates efficient Microgrid operations, a Demand Response (DR) scheme is implemented for customers in the grid to alter their power-usage patterns. However, for a real-time pricing model at the current DR, the automated decision on the energy price is not trustworthy because of artificial interferences to the power generation. As opposed to energy price, an operational cost-based prosumer scheduling approach would be able to protect the integrity of the power grid operations from deceptive market transactions and assist in robust energy management. To investigate the operational challenges associated with the costs and prosumers in the Microgrid, we focus on formulating the problem mathematically and designing approximation algorithms to solve the problem of how to optimally identify suppliers to minimize the total operational costs associated with providing electricity. We prove the hardness of the scheduling as one of the NP-Hard problems and propose polynomial time algorithms for approximating optimal solutions. With a proper resilience level for reliable power services, the scheduling algorithms include ways to construct not only robust supplier networks, but also group energy communities in terms of black start while minimizing the operational costs. A series of theoretical performances and experimental evaluations also demonstrates the practical effectiveness of this scheduling model for the operations.

International Programs and Possibilities

Leaders are responsible for allocating and managing resources for agility and absorption. The orange world may mean short-term careers, but short-term projects, with key leaders as the core of the organization who remain for long periods. In the blue world are global influencers. Capitalism is leading growth, and employees have everything they need to develop innovation, health insurance, and technology. In this blue world, leading and seeing people is the most important asset. The corporation will develop corporate cultures that empower the workforce and quality of life for employees. The green companies develop a powerful and influential social conscience and sense of responsibility. Often consumers will demand this by lobbying for a change in corporate behavior. Green companies develop strong controls over their supplier networks and demand ethical practice from all vendors in their supply chains. With the world becoming more complex and turbulent, now more than ever we must look at how we frame and reframe our organizations to fit the future. This chapter explores international programs and possibilities.