How can suppliers increase their buyers’ CSR engagement: the role of internal and relational factors

PurposeBuyer engagement proves important supports for suppliers' corporate social responsibility (CSR); however, little is known about whether and how buyer CSR engagement can be actively searched for by a supplier and what activities and policies of suppliers could enhance buyer CSR engagement. From the perspective of resource dependence theory, this study aims to explore how suppliers seek to achieve buyers' CSR engagement.Design/methodology/approachThe proposed model and hypotheses were tested by structural equation modeling methodology using survey data collected from 243 manufacturing and service firms in China.FindingsThe results show that instrumental CSR motives and internalization of CSR policies jointly improve buyers' dependence, which in turn increases buyers' CSR engagement. In addition, this study investigates the influence of suppliers' trust on the effect of buyers' dependence on buyers' CSR engagement and finds a negative moderating effect on the dependence–engagement relation.Practical implicationsThe findings show that suppliers can actively engage in CSR to strengthen their position and improve the buyer CSR engagement. In fact, proactive CSR policies and implementation do pay off in the long run for them.Originality/valueThis study offers a fresh perspective on the role of suppliers in improving CSR. In contrast to much of the literature that has considered buyer-initiated practices and policies, this is the first theoretical and empirical investigation into how suppliers can increase the buyer CSR engagement.

Intuitive global sourcing – a study of supplier selection decisions by apparel SMEs

PurposeThe purpose of this paper is to create knowledge on the intuitive global sourcing process applied by small and medium-sized enterprise (SME) managers.Design/methodology/approachThis study reports on qualitative inquiries with experienced sourcing managers from 10 SMEs in the textile industry. The study follows a three-step semi-structured interviewing process, allowing us to gradually unveil the detailed nature of the intuitive supplier selection process.FindingsNine of the 10 SMEs rely on a highly intuitive supplier selections process, where one supplier at a time is gradually taken into the exchange while testing the supplier’s behavior. The process consists of an early heuristics sub-process, which gradually switches over to a more advanced intuiting behavioral pattern-matching process.Practical implicationsMost OM/SCM research has treated global sourcing and supplier selection as a highly rational, analytical and deliberate optimization problem. This study uncovers a completely different, and frequently successful, intuitive process, which could inspire managers in companies of all sizes, faced with high uncertainty about global supplier selection decisions.Originality/valueIntuition has recently been adopted in the global sourcing literature. However, this study is the first to offer detailed insights into a predominantly intuitive global sourcing process, specifically as it is managed by SMEs.

Power, shared goals and supplier flexibility: a study of the HUB-and-spoke supply chain

PurposeSupplier flexibility reflects a supplier's operations-related decisions in responsively providing the necessary inputs to the focal firm. Drawing on resource-dependency theory and transaction cost economics, this study develops a conceptual framework to explain the differential effects of a focal firm's power over supplier flexibility in the context of the hub-and-spoke supply chain (SC). This study also considers the goals shared between the focal firm and its suppliers as an important contingency factor within the framework.Design/methodology/approachThis study tests the proposed conceptual framework using dyadic survey data from a hub-and-spoke SC consisting of a large construction contractor and its 100 suppliers in Indonesia.FindingsThe findings show that coercive power has an inverted U-shaped effect on supplier flexibility, while legal-legitimate power has a U-shaped effect. Furthermore, shared goals positively moderate the U-shaped effect between legal-legitimate power and supplier flexibility.Originality/valueThis study differentiates between the impacts of coercive power and legal-legitimate power on supplier flexibility in the hub-and-spoke SC. It also demonstrates that shared goals play a moderating role in affecting the impacts of legal-legitimate power on supplier flexibility. These findings also have important implications with regard to integrating resource-dependency theory and transaction cost economics to explain these associations.

Let the buyer beware: how network structure can enable (and prevent) supply chain fraud

PurposeSupply chain fraud is a significant global concern for firms, consumers and governments. Evidence of major fraud events suggests the role of supply chain structures in enabling and facilitating fraud, as they often involve several parties in complicated networks designed to obfuscate the fraud. This paper identifies how the structural characteristics of supply chains can play an important role in enabling, facilitating and preventing fraud.Design/methodology/approachThe research follows a theory elaboration approach. The authors build on structural holes theory in conjunction with a multiple case study research design to identify new concepts and develop propositions regarding the role of network structure on supply chain fraud.FindingsThis research shows how structural holes in a supply chain can create advantages for unscrupulous firms, a role we call tertius fraudans, or the cheating third. This situation is exacerbated by structural ignorance, which refers to the lack of knowledge about structural connections in the network. Both structural holes and structural ignorance can create information gaps that facilitate fraud, and the authors propose solutions to detect and prevent this kind of fraud.Originality/valueThis paper extends structural holes theory into the domain of fraud. Novel concepts including tertius fraudans, structural ignorance and bridge collapse are offered, alongside a series of propositions that can help understand and manage structural supply chain fraud.

Uncertainty management in engineering-service development: the role of organisational capabilities

PurposeEngineering-service (ES) development is characterised by high uncertainty, the management of which is crucial for the success of the offering during the provision of ESs. This paper studies suitable organisational capabilities to address different uncertainty types.Design/methodology/approachBased on conceptualisation of individual uncertainty types and organisational capabilities, this study investigated their empirical links through six case studies of ES development projects. The data consisted of 64 semi-structured interviews, 10 weeks of observational data and 166 supporting documents describing the projects.FindingsThe findings provide empirical evidence for four distinct uncertainty types (environmental, organisational, technical and relational uncertainty) and the organisational capabilities needed for addressing them. The authors identified unique dominant capabilities for each uncertainty type (commercialisation for environmental uncertainty, coordination for organisational and technical uncertainty, and relational capabilities for relational uncertainty), which were complemented with supporting capabilities, including project management and integration.Originality/valueThis study contributes to the service operations literature by merging previously separate research streams on uncertainty and organisational capabilities in ESs and servitization. Through this merge, this study offers a more coherent understanding by extending previously sporadic insights into specific links between individual uncertainty types and individual capabilities.

The impact of asymmetric perceptions of buyer-supplier governance mechanisms on relational rents

PurposeBuyers and suppliers often perceive relationship governance mechanisms, such as trust and contractual fairness, in different ways. These differences in perception create an extra layer of complexity that is often ignored in the extant literature. This study adds to the understanding of how perceived asymmetries in trust and contractual fairness, two key relationship governance mechanisms, impact relational rents. This study also analyzes how boundary spanners aid managers to deal with these perceived asymmetries.Design/methodology/approachBased on survey data of 103 buyer–supplier dyads from a single global manufacturer of industrial equipment, the authors test hypotheses of perceived asymmetries in trust and contractual fairness, as well as the moderating effect of boundary spanners, on relational rents.FindingsThis research challenges the belief that asymmetries negatively impact or lead to unstable buyer–supplier relationships. Furthermore, it explains how preferential treatment and length of the relationship could reduce the impact of asymmetric perceptions.Practical implicationsThis study stresses that open communication, which considers different viewpoints, helps to overcome the negative differences in attitude and perception. In addition, the authors found that long-term relationships seem to be far more resilient in dealing with asymmetries and that preferential treatments are best applied in (approximately) symmetric relationships in terms of contractual fairness.Originality/valueWhile studies on buyer–supplier relationships often assume symmetric perceptions of governance mechanisms, asymmetric perceptions are far more prominent in reality. This study aims to improve one’s understanding of the impact of these asymmetries as well as how boundary spanners can affect these perceptions.

Preparing supply chain for the next disruption beyond COVID-19: managerial antecedents of supply chain resilience

PurposeCOVID-19 once again showed the importance of building resilience in supply chains. Extant research on supply chain resilience management has successfully identified a set of organizational antecedents that contribute to supply chain resilience. However, little is known about the mechanisms by which these antecedents are developed within a firm. Drawing on the dynamic managerial capabilities theory, the current study aims to investigate the critical role that supply chain managers play in developing the organizational antecedents. Specifically, this study shows that supply chain managers' social capital, human capital and cognition are instrumental to the development of three organizational supply chain resilience antecedents: visibility, responsiveness and flexibility, which subsequently enhance the firm's supply chain resilience.Design/methodology/approachThe authors employ survey data collected from 598 manufacturing firms in Australia, and Hayes and Preacher's (2014) parallel multiple mediator model to empirically test the hypotheses.FindingsThe findings of the study establish that supply chain managers' social capital, human capital and cognition indeed have implications for developing supply chain resilience. Furthermore, the mediators through which managers' social capital, human capital and cognition improve supply chain resilience are identified in the current study.Originality/valueThe study contributes to the extant literature on supply chain resilience, investigating the role that supply chain managers play in developing the resilience of their firm.

Practitioners' learning about healthcare supply chain management in the COVID-19 pandemic: a public procurement perspective

PurposeThe procurement and supply of crucial healthcare products in the early stages of the COVID-19 emergency were chaotic. To prepare for future crises, we must be able to describe what went wrong, and why, and map out ways to build agility and resilience. How can this be done effectively, given the highly complex and diverse network of actors across governments, care providers and supply chains, and the extreme uncertainty and dynamism in the procurement system and supplier markets? The purpose of this study was to capture learning from practitioners in “real time” in a way that could frame and inform capacity building across healthcare systems with varying procurement and supply management maturity.Design/methodology/approachThis exploratory study involved interviews with 58 senior public procurement practitioners in central and regional governments, NGOs and leaders of professional organizations from 23 countries, very early in the COVID crisis. Following the first, inductive phase of analysis leading to five descriptive dimensions, the awareness-motivation-capability (A-M-C) framework was applied in a further round of coding, to understand immediate challenges faced by procurement practitioners, how the complex, multi-level procurement system that shaped their motivations to respond and critical capabilities required to face these challenges.FindingsDevelopments across 23 countries and practitioners' learning about procurement and supply in the pandemic crisis can be captured in five overarching themes: governance and organization, knowledge and skills, information systems, regulation and supply base issues. Together these themes cover the strengths and gaps in procurement and supply capability encountered by procurement leaders and front-line personnel. They highlight the various facets of structure, resource and process which constitute organizational capability. However, to account better for the highly dynamic situation characterized by both unprecedented rivalry and cooperation, analysts must also pay attention to actors' emerging awareness of the situation and their rapidly changing motivations.Originality/valueThe application of the A-M-C framework is unique in the healthcare supply chain and disaster management literature. It enables a comprehensive overview of healthcare procurement from a system perspective. This study shows how increasing system preparedness for future emergencies depends both on developing critical capabilities and understanding how awareness and motivation influence the effective deployment of those capabilities.

Public procurement capabilities as engines for collaboration and enhanced performance in complex projects

PurposeThis paper explores how public buyers' capabilities promote collaboration with private suppliers to obtain enhanced performance in complex projects.Design/methodology/approachThe authors conducted two case studies on the procurement of complex military projects by the Brazilian armed forces involving public buyers and private suppliers. The authors followed the Gioia methodology to inductively analyze data from interviews, official documents, media articles and project meeting notes.FindingsThe authors identified public procurement capabilities that are antecedents of collaborative trust-based relationships with suppliers in complex public-private projects. The authors unpack these capabilities in three subsets: abilities to manage the bidding and contracting process, to handle relationships with prominent stakeholders, such as audit control bodies and to manage knowledge acquired within and across current and past projects. By developing these capabilities, public buyers can build collaborative trust-based relationships with suppliers, which enable the conciliation of operational performance (i.e. on-time delivery, budget and scope compliance) and policy goals (i.e. inclusion of local suppliers in supply chains).Originality/valueThe authors extend the literature on the enablers of trust and collaboration in buyer-supplier relationships by providing a detailed account of which capabilities are necessary on the buyer side in complex projects, especially when accountability standards create barriers for collaborative practices. The authors also reinforce the importance of the operations and supply chain management scholarship in policy debates by showing how buyer-supplier interactions can create value in complex projects with public and private sectors.

Is lean a theory? Viewpoints and outlook

PurposeLean remains popular in a wide range of private and public sectors and continues to attract a significant amount of research. However, most of this research is not grounded in theory. This paper presents and discusses different expert viewpoints on the role of theory in lean research and practice and provides guidelines for future research.Design/methodology/approachSeven experienced lean authors independently provide their views to the question “is Lean a theory?” before Rachna Shah summarizes the viewpoints and provides a holistic outlook for lean research.FindingsAuthors agree, disagree and sometimes agree to disagree. However, a close look reveals agreement on several key points. The paper concludes that Lean is not a theory but has plenty of theoretical underpinnings. Many lean-related theories provide promising opportunities for future research.Originality/valueAs researchers, we are asked to justify our research drawing on “theory,” but what does that mean for a practice-driven phenomenon such as lean? This paper provides answers and directions for future research.