84836082
Governance Mechanisms for Green Supply Chain Partnership
The literature has recognized the value of green supply chain management in achieving the goals of environmental management. Yet developing and fostering sustainability partnerships among supply chain organizations remains challenging. Bounded rationality and opportunistic behaviors are likely to hinder joint sustainability collaboration and performance. The literature has called for a better understanding of the governance of green supply chain collaboration. This study applies transactional cost economics as a conceptual framework to investigate the relationships among transaction features, governance mechanisms, and environmental performance. Using the data collected from 969 plants in 17 countries, the statistical analysis compares and validates the effectiveness of three alternative governance mechanisms: contractual governance, problem-solving cooperation governance, and information-sharing governance. The statistical results reveal significant performance differences in how firms apply alternative governance mechanisms to mitigate opportunism, manage adaptation problems, and improve green supply chain collaboration and performance. Overall, this study makes research contributions by confirming the mediation effects of governance mechanisms on green supply chain practices. For green supply chains to be a viable practice, firms should apply governance mechanisms in proper alignment with the nature of the collaborative and environmental conditions.
166673154
The Use of Pledges to Build and Sustain Commitment in
Commitment in channel relationships is modeled as a function of (1) each party's perception of the other party's commitment, (2) self-reported and perceived pledges (idiosyncratic investments and c...
154793156
THE ROLE OF SUPPLY MANAGEMENT CAPABILITIES IN GREEN SUPPLY
Managers realize that they should avoid complex green supply initiatives when they do not have the capabilities to implement them. However, they have little guidance on how these capabilities can be developed. This paper provides an initial analysis of the role of supply management capabilities in green supply. We argue that the implementation of green supply is better explained by focusing on the development and deployment of an organization's specialized internal resources, rather than by the more usual focus on external environmental pressures on a firm. Further, we argue that capabilities appropriate for green supply are developed by a proactive corporate environmental stance and by a more strategic purchasing and supply management approach. 
 
We test our model using data from a two-phase survey of 70 operating units within UK public limited companies. Our results indicate support for our conjecture that supply management capabilities are jointly developed by a proactive corporate environmental approach and a strategic purchasing and supply process. Our study results should be useful to business strategists, regulators, and researchers interested in the predictors of corporate green behavior. They should also assist future researchers in many branches of environmental management who are seeking to explore the role of the internal capabilities of firms in supporting environmental management.
153406149
Green supply chain management: pressures, practices and performance within the Chinese automobile industry
Abstract Increasing pressures from a variety of directions have caused the Chinese automobile supply chain managers to consider and initiate implementation of green supply chain management (GSCM) practices to improve both their economic and environmental performance. Expanding on some earlier work investigating general GSCM practices in China, this paper explores the GSCM pressures/drivers (motivators), initiatives and performance of the automotive supply chain using an empirical analysis of 89 automotive enterprises within China. The results show that the Chinese automobile supply chain enterprises have experienced high and increasing regulatory and market pressures and at the same time have strong internal drivers for GSCM practice adoption. However, their GSCM implementation, especially with consideration of external relationships, is poor. Therefore, GSCM implementation has only slightly improved environmental and operational performance, and has not resulted in significant economic performance improvement. In furthering this analysis we investigate one specific organization in this supply chain, the Dalian Diesel Engine Plant, and how this pioneering company has addressed the issues identified by the broader empirical analysis.
14263886
Love me, love me not: A nuanced view on collaboration in sustainable supply chains
In this paper we investigate the collaborative paradigm in Sustainable Supply Chain Management (SSCM). The depth and quality of the relationship between a firm and its suppliers is widely recognised as a critical facilitator of SSCM. Many authors in the field have argued that a collaborative approach to SC relationship management was likely to be more fruitful in achieving sustainable development goals. However, little research has offered a more nuanced perspective on collaborative SSCM and specifically assessed its feasibility outside the context of large companies collaborating on environmental activities. In this paper, we explore collaboration in SSCs through a qualitative study of a large multinational in the food sector working with small agricultural suppliers. We show that there are both supporting and hindering factors to collaborative SSCM. The study reveals the dynamic nature of SC relationships for sustainability and that collaboration can be developed through time thanks to investment in both formal relationship building mechanisms and more relational aspects. The main contributions of the paper lie in its nuanced view of collaboration for SSCM and systematic application of relational theory (Dyer & Singh, 1998) in SSCM.
153839653
Environmental management and manufacturing performance: The role of collaboration in the supply chain
Abstract As corporations attempt to move toward environmental sustainability, management must extend their efforts to improve environmental practices across their supply chain. The literature characterizing environmental management within the supply chain has been slowly building, but remains sparse. Using a survey of North American manufacturers, this paper examines the impact of environmental collaborative activities on manufacturing performance. Environmental collaboration was defined specifically to focus on inter-organizational interactions between supply chain members, including such aspects as joint environmental goal setting, shared environmental planning, and working together to reduce pollution or other environmental impacts. These practices can be directed either upstream toward suppliers or downstream toward customers. The influence of collaboration in each direction was empirically assessed for multiple objective and perceptual measures of manufacturing performance using a sample of plants in the package printing industry. Generally, the benefits of collaborative green practices with suppliers were broadest. In contrast, collaboration with customers yielded mixed outcomes. Overall, evidence emerged that upstream practices were more closely linked with process-based performance, while downstream collaboration was associated with product-based performance.
29109230
Achieving supply chain environment management: an exploratory study
The concept of collaborating with supply chain parties to improve manufacturing sustainability is referred to as Supply Chain Environmental Management (SCEM) or 'greening the supply chain'. The extant literature suggests the benefits of SCEM but offers no guidelines for its development and practice. Using case research that involved direct observation and systematic interviews with five manufacturers, this study examines how manufacturing firms involve various supply chain partners (e.g. suppliers, customers, peer organisations, government and community) in their environmental supply chain. The results indicate that a firm's environmental partnership should be aligned with its Environmental Management (EM) strategy. An SCEM framework is proposed for planning and monitoring the development of environmental partnership. Additional suggestions for achieving SCEM are made, followed by the presentation of several research propositions for future research.
167800096
The Green Supply Chain: Integrating Suppliers into Environmental Management Processes
INTRODUCTION The environment has become a critical issue in business today. In the 1960s and 1970s businesses typically considered environmental compliance to be a "fringe" issue which elicited little discussion at executive levels. Since then, several highly visible environmental disasters (e.g., Love Canal, Three Mile Island, Exxon Valdez) have demonstrated the importance of having a comprehensive environmental strategy in place. As is true of Total Quality Management (TQM), environmental strategies must be conceived and supported by top management, but deployed in every functional area of an organization to be meaningful. Previous research showed how cross-functional "buy-in" is necessary to integrate environmental strategies with supply chain management.[1] This study extends the findings of that research by focusing on the role of purchasing and supply chain management in improving the environmental performance of an organization. The next section discusses the growing importance of environmental management to business. Case studies are discussed and a set of generic guidelines regarding the role of purchasing and supply chain management in environmental management is presented. The final section summarizes the conclusions and insights from the study. APPROACHES TO ENVIRONMENTAL MANAGEMENT The traditional view of environmental management in business has been either "we need only comply to the letter of the law," or worse yet, "ignore it and it might go away." These attitudes grew out of the perception that any actions which improved the environment were detrimental to interests of business. Such perceptions were often fueled by the news media (e.g., the ongoing dispute concerning the logging industry and the spotted owl in the Pacific Northwest). Traditional "anti-business" environmental perceptions also led to instances where companies decided it was in their best interest to pollute and pay a small fine, instead of finding ways to prevent or eliminate the waste. Penalties associated with polluting escalated with the passage of the Superfund in the 1970s, SERA in the 1980s, and other legislation in the 1990s, and businesses began to realize that some level of compliance would be necessary. The typical response of companies was to comply with the legislation, but to rarely integrate these policies across the company. This type of response to environmental issues can be termed "resistant adaptation."[2] A slightly more developed environmental management approach accepts the goal of minimizing waste, without trying to eliminate the source of the waste. Companies pursuing this approach often try to find ways to "clean up" or store the waste once it is created. Companies that install smokestack devices to reduce the level of pollutants emitted into the air, without trying to reduce the level of pollutants produced, are "embracing without innovating." This reactive approach to environmental issues is characterized by "end-of-the-pipe" solutions.[3] While embracing environmental issues without changing current processes provides the company with a sense of social legitimacy,[4] it usually leads to narrow, incremental solutions.[5] As such, companies are not realizing the competitive implications of environmentally-friendly supply chain practices; they merely experience penalty avoidance. Companies are now starting to recognize the possible competitive advantages associated with environmental awareness.[6] However, as environmental management makes its way into corporate strategic planning, it must also be integrated with the day-to-day processes of the organization. Companies which make minimal changes to optimize their current processes can be called "receptive" to environmental issues. Companies which look beyond their current processes to find and eliminate sources of waste are more "constructive" in their response. Constructive responses to environmental issues focus on the value embodied in the product and process by integrating product planning and changes into environmental planning and response. …
55443591
The link between eco-innovation and business performance: a Taiwanese industry context
Abstract In practice, there are various types of eco-innovation. While each type of innovation has its own attributes, determinants, and contribution to business performance, it is not effective to implement eco-innovation programs without a holistic view. This study draws from the resource-based view theory to investigate inter-relationships among three types of eco-innovation (process, product, organizational) and their relative impact on business performance. Using structural equation modeling with 121 samples collected from Taiwan Environmental Management Association, we find that eco-organizational innovation has the strongest effect on business performance. Additionally, eco-process and eco-product innovations partially mediate the effects of eco-organizational innovation, and eco-product innovation mediates eco-process innovations' effects on business performance. Business performance is directly and indirectly affected by eco-organizational, eco-process, and eco-product innovations. The findings suggest that, in order to develop effective eco-innovation programs, managers must understand the interdependence and co-evolutionary relationships between different types of eco-innovation. Overall, this study extends the discussion of innovation to the area of environmental innovation or eco-innovation.
158759570
Environmental Sustainability as a Source of Product Innovation: The Role of Governance Mechanisms in Manufacturing Firms
Over the past two decades, since the emergence of the triple bottom line philosophy, the relationship between environmental sustainability and corporate performance has received a lot of attention, but has generated mixed or often even contradictory results. A few recent studies have inferred that innovations are the missing link that connects the environmental sustainability of a firm to other performance metrics; however, the evidence of such a proposition has been restricted to being conceptual or anecdotal. Relying on a knowledge governance approach, this study presents exploratory empirical evidence indicating that the impacts of a firm’s sustainability initiatives on its innovation performance originate from the governance mechanism it uses for sustainability, not sustainability outcomes per se. We tested this research proposition by using a subsample of Global Manufacturing Research Group’s global survey data. Our results support the positive impacts of two widely-used environmental sustainability governance mechanisms (i.e., internal monitoring and supplier collaboration) on product innovation capability. The findings further provide more useful and effective options for manufacturing firms and managers, to establish environmental sustainability governance mechanisms that can be converted into product innovation capability.
154907083
LEAN, GREEN, AND THE QUEST FOR SUPERIOR ENVIRONMENTAL PERFORMANCE
We examine the relationship between lean manufacturing practices and environmental performance as measured in terms of air emissions and resource use. We draw on two unique surveys of 31 automobile assembly plants in North America and Japan, which contain information on manufacturing practice and environmental performance, as well as in-depth interviews with 156 plant level employees at 17 assembly plants. Our survey results and interviews suggest that lean management and reduction of air emissions of volatile organic compounds (vocs) are associated negatively. Lean manufacturing practices contribute to more efficient use of paints and cleaning solvents, but these in-process changes are not sufficient to meet the most stringent air regulations. We found some evidence to support the link between lean practices and resource efficiency. While our survey results were in hypothesized direction, they were not statistically significant. In-depth semi-structured interviews, however, suggest a more robust relationship, and we use them to describe some mechanisms by which all three aspects of lean management (buffer minimization, work systems, and human resource management) may be related to environmental management practices and performance.
54225277
Contract duration and relationship-specific investments: Empirical evidence from coal markets
This paper examines empirically the importance of relationship investments in determining the duration of coal contracts negotiated between coal suppliers and electric utilities, using data for 277 coal contracts. For each contract, measures of the duration of contractual commitments agreed to by the parties at the contract execution stage and measures of the importance of relationship specific investments are developed. The results provide strong support for the view that buyers and sellers make longer commitments to the terms of future trade at the contract execution stage, and rely less on repeated bargaining, when relationship-specific investments are more important. Copyright 1987 by American Economic Association.
154582274
The Economic Institutions of Capitalism: Firms, Markets, Relational Contracting
This study is based on the belief that economic organization is shaped by transaction cost economizing decisions. It sets out the basic principles of transaction cost economics, applies the basic arguments to economic institutions, and develops public policy implications. Any issue that arises, or can be recast as a matter of contracting, is usefully examined in terms of transaction costs. Transaction cost economics maintains that governance of contractual relations is mainly achieved through institutions of private ordering instead of legal centralism. This approach is based on behavioral assumptions of bounded rationalism and opportunism, which reflect actual human nature. These assumptions underlie the problem of economic organization: to create contract and governance structures that economize on bounded rationality while safeguarding transactions against the hazards of opportunism. The book first summarizes the transaction cost economics approach to the study of economic organization. It develops the underlying behavioral assumptions and the types of transactions; alternative approaches to the world of contracts are presented. Assuming that firms are best regarded as a governance structure, a comparative institutional approach to the governance of contractual relations is set out. The evidence, theory, and policy of vertical integration are discussed, on the basis that the decision to integrate is paradigmatic to transaction cost analysis. The incentives and bureaucratic limits of internal organization are presented, including the dilemma of why a large firm can't do everything a collection of small firms can do. The economics of organization in presented in terms of transaction costs, showing that hierarchy also serves efficiency and permits a variety of predictions about the organization of work. Efficient labor organization is explored; on the assumption that an authority relation prevails between workers and managers, what governance structure supports will be made in response to various types of job attributes are discussed, and implications for union organization are developed. Considering antitrust ramifications of transaction cost economics, the book summarizes transaction cost issues that arise in the context of contracting, merger, and strategic behavior, and challenges earlier antitrust preoccupation with monopoly. (TNM)
167424723
OUTSOURCING: TRANSACTION COST ECONOMICS AND SUPPLY CHAIN MANAGEMENT†
This article examines outsourcing from the transaction cost economics (TCE) perspective. The transaction is made the basic unit of analysis and the procurement decision, as between make and buy, is made (principally) with reference to a transaction cost economizing purpose. As sketched herein, the ease of contracting varies with the attributes of the transaction, with special emphasis on whether preserving continuity between a particular buyer–seller pair is the source of added value. The basic regularity is this: as bilateral dependency builds up, the efficient governance of contractual relations progressively moves from simple market exchange to hybrid contracting (with credibility supports) to hierarchy. This last corresponds to the “make” decision, which, as viewed from the TCE perspective, is viewed as the organization form of last resort. The article successively describes the lens of contract approach to economic organization, the operationalization of TCE, different styles of outsourcing, qualifications to the foregoing and the main lessons of TCE for the supply chain literature.
3212613
Asymmetrical deployment of specific assets and contractual safeguarding in industrial purchasing relationships
The marketing literature based on transaction cost analysis (TCA) has only scantily explored whether the identity of the party (i.e., the buyer or the supplier) that employs specific assets is of importance in instances when alignments of contractual safeguards of specific assets occur in buyer ‐ supplier relationships. Imbalanced deployment of specific assets highlights the problem of asymmetrical dependence in purchasing relationships. This article draws heavily on TCA and related works in marketing in an attempt to analyze and compare interfirm dependence, exposure to opportunism, and formalization of purchase contracting (FORM) across channel dyads where the buyer and the supplier respectively carry out relation-specific investments. In particular, an investigation of 161 industrial purchasing relationships demonstrated that the level of formalized purchase contracting was significantly greater when the supplier unilaterally deployed specific assets in a relationship as opposed to situations where mainly the buyer employed assets at risk. This and other findings clarify the issue of asymmetrical dependence structures in industrial marketing relationships. D 2000 Elsevier Science Inc. All rights reserved.
5667901
Suppliers and Environmental Innovation: The Automotive Paint Process
Automobile assembly plants worldwide face increasing pressures in the environmental arena. How a plant responds to these issues has significant implications for the cost and quality of plant operations. This paper uses three case studies of US assembly plants to examine the role of partnerships between original equipment manufacturers (OEMs) and their suppliers in improving the environmental performance of manufacturing operations. We find that strong partnerships with suppliers, supported by appropriate incentive systems, were a significant element of the successful application of innovative environmental technologies. Supplier staff members were an important part of achieving environmental performance improvements while maintaining production quality and cost goals. The management factors influencing the extent and nature of supplier involvement are identified. The results of this work point to the importance of suppliers in addressing the manufacturing challenges of the future.
9229516
Untangling Safeguard and Production Coordination Effects in Long-Term Buyer-Supplier Relationships
We untangle safeguard and coordination effects of interfirm governance mechanisms in the context of hazardous buyer-supplier relationships. We propose that the extent to which such mechanisms prevail as safeguards or coordination devices varies with the moderating effects of complexity and asset specificity. In nonspecific but complex exchanges, such mechanisms operate more as coordination mechanisms, whereas in specific, noncomplex ones, they are safeguard mechanisms. Through a system of mathematical derivatives, we specify and quantify these conditions to demonstrate when each theoretical perspective is more relevant. We validate our model with survey data from 239 suppliers and explore implications for theory and practice.
14859972
Formal control and social control in domestic and international buyer–supplier relationships
Abstract Focusing on long-term buyer–supplier relationships, this article addresses two questions: (1) What are the antecedents that lead to the adoption of formal control, social control, or both? (2) What is the nature of the relationship between formal control and social control - are they substitutes or complements? We develop a model to investigate the impact of the length of cooperation and institutionalization on the use of control mechanisms. Further, we argue that in China, formal control and social control may be substitutes in domestic buyer–supplier relationships, but they may be complements in international relationships. Survey data collected nationwide with executives in 380 domestic and 200 international buyer–supplier relationships in China are used to test our hypotheses.
157719043
A Framework of Sustainable Service Supply Chain Management: A Literature Review and Research Agenda
In recent years, the interdisciplinary research of supply chains and sustainability has received extensive, yet gradual, attention; when compared to the rapid economic growth of the service industry, however, sustainable supply chain management has not been systematically explored yet. It has not only great theoretical significance, but also positive practical significance to provide a framework for the operation of a sustainable service supply chain from a sustainable development point of view. Based on the triple bottom line (TBL), we have analyzed related sustainable supply chain management research between 2006 and 2015, reviewed papers involving two or three bottom lines as well, and then introduced some classical frameworks for manufacturing supply chain management and service supply chain management. Afterward, by analyzing the differences between the manufacturing and service industries, we propose a framework of sustainable service supply chain management (SSSCM). Based on the impacts of sustainable development TBL on service supply chain participants, we have finally made a framework for sustainable operation facing triads service supply chain and proposed a future research agenda.
154678129
Determinants of supplier‐retailer collaboration: evidence from an international study
Purpose – This paper aims to increase the understanding of social and technical factors contributing to successful supplier‐retailer collaboration. The objective is to identify the necessary supply chain architecture for supplier‐retailer collaboration, and demonstrate how it influences supply chain performance.Design/methodology/approach – Five pairs of suppliers and retailers in Taiwan were studied with each pair serving as a unit of analysis. In each case, data pertaining to eight relationship variables critical to collaboration between supplier and retailer were collected and analyzed. A comprehensive supplier‐retailer relationship model is developed with five specific research positions: supplier‐retailer business relationship (interdependence, intensity, trust) affects long‐term orientation; supplier‐retailer business relationship affects supply chain architecture (information sharing, inventory system, information technology capabilities, coordination structure); long‐term orientation affects suppl...
34141473
Inter‐organizational communication as a relational competency: Antecedents and performance outcomes in collaborative buyer–supplier relationships
Abstract Inter-organizational communication has been documented as a critical factor in promoting strategic collaboration among firms. In this paper, we seek to extend the stream of research in supply chain management by systematically investigating the antecedents and performance outcomes of inter-organizational communication. Specifically, inter-organizational communication is proposed as a relational competency that may yield strategic advantages for supply chain partners. Using structural equation modeling, we empirically test a number of hypothesized relationships based on a sample of over 200 United States firms. Our results provide strong support for the notion of inter-organizational communication as a relational competency that enhances buyers’ and suppliers’ performance. Implications for future research and practice are offered.
6347503
Supplier relationship-specific investments and the role of safeguards for supplier innovation sharing
The vast majority of the supplier innovation literature has focused on how buying firms can effectively “pull” innovations from their suppliers. Yet, we know remarkably little about the factors that contribute to a supplier voluntarily “pushing” innovations to its customers. The present study addresses this research gap in the context of industrial buyer–supplier relationships and with a specific focus on relationship-specific investments. Drawing on theory from the relationship-marketing literature and on transaction cost theory, we devise and test a proposed theoretical model that links the level of a supplier's relationship-specific investments to its sharing of innovative ideas regarding products and processes with customers. The model also considers the role of contract length, relationship age, and buyer–supplier cooperation as possible safeguards. The empirical results suggest that a supplier's relationship-specific investments encourage a supplier to suggest ideas of process innovations but to refrain from suggestions about product innovations. The latter effect, however, can be attenuated by appropriate formal and informal safeguards.
153809140
Governing buyer–supplier relationships through transactional and relational mechanisms: Evidence from China
Abstract Building on economic and social exchange theories, this study investigates the different roles transactional and relational mechanisms have in hindering opportunism and improving relationship performance in an emerging economy. Our study applied to manufacturer–distributor dyads in China and used matched survey data (225 paired sample firms) to test our hypotheses. Our hierarchical multivariate regression and semipartial correlation analyses suggest that transactional mechanisms are more effective in restraining opportunism while relational mechanisms are more powerful in improving relationship performance. This performance is improved more significantly when both contracts and relational norms are used jointly than when used separately. Likewise, opportunism is curbed more effectively when both contracts and trust are used jointly than when used individually.
5244826
The Impact of Competitive Strategy and Supply Chain Strategy on Business Performance: The Role of Environmental Uncertainty
This article investigates the relationships among competitive strategy, supply chain strategy, and business performance while examining the moderating effect of environmental uncertainty. A total of 604 questionnaires were collected from three cities in China, and the statistical results show significant moderating effects of external environment on the relationships among competitive strategy, supply chain strategy, and business performance. Firms that primarily focus on a differentiation strategy emphasize an agile supply chain strategy. Cost leaders are inclined to implement both lean and agile supply chain strategies, but their emphasis on agile strategy is significantly greater in a volatile environment than in a stable environment. The choice of supply chain strategy does not appear to be an “either-or” decision and firms could adopt either a lean or an agile strategy, or both, depending on the environment. This article provides significant managerial implications for supply chain practitioners to co-align supply chain strategy and competitive strategy with the environment to improve performance.
167388505
The importance of contextual factors in the success of outsourcing contracts in the supply chain environment: the role of risk and complementary practices
Purpose – Although outsourcing has emerged as a key business practice in global supply chain management it has not always been successfully adopted. Since the reasons for outsourcing success and failure are underexplored this research aims to investigate the role of contractual completeness and complementary enforcement practices such as cooperation and monitoring and sanctioning practices under varying risk scenarios. Critically, these relationships are examined in the context of two serious risks: legal risk in the guise of rule of law and supplier non-conformance risk. Design/methodology/approach – Cross-country, survey data was collected through the global manufacturing research group and combined with secondary data from the World Bank. The authors carried out a series of regression analysis to explore their research questions. Findings – The results indicate that risk is a critical component of outsourcing success with legal risk reducing outsourcing performance on both cost and quality and supplier...
211628926
A Shared Information-Based Petri Net Model for Service Parts Planning
A considerable amount of electronic products are returned after sales, especially in such an economic downturn situation. After repair and refurbishment, the used products can be returned into the markets which fulfill the forward supply chains into a close loop. In this paper, we consider the service parts planning in the beginning of product rolling plan together with the sales through quantities to minimize the inventory level in the period of product lifecycle. A Petri Net is used to model a simple closed-loop supply chain with shared sales information. PUSH and PULL inventory policies are used in this research. Finally, it is investigated how a third party service provider uses this mechanism to improve the accuracy of inventory planning.
51693547
Cost-Sharing Contracts for Energy Saving and Emissions Reduction of a Supply Chain under the Conditions of Government Subsidies and a Carbon Tax
To study the cooperation of upstream and downstream enterprises of a supply chain in energy saving and emissions reduction, we establish a Stackelberg game model. The retailer moves first to decide a cost-sharing contract, then the manufacturer determines the energy-saving level, carbon-emission level, and wholesale price successively. In the end, the retailer determines the retail price. As a regulation, the government provides subsidies for energy-saving products, while imposing a carbon tax on the carbon emitted. The results show that (1) both the energy-saving cost-sharing (ECS) and the carbon emissions reduction cost-sharing (CCS) contracts are not the dominant strategy of the two parties by which they can facilitate energy savings and emissions reductions; (2) compared with single cost-sharing contracts, the bivariate cost-sharing (BCS) contract for energy saving and emissions reduction is superior, although it still cannot realise prefect coordination of the supply chain; (3) government subsidy and carbon tax policies can promote the cooperation of both the upstream and downstream enterprises of the supply chain—a subsidy policy can always drive energy saving and emissions reductions, while a carbon tax policy does not always exert positive effects, as it depends on the initial level of pollution and the level of carbon tax; and (4) the subsidy policy reduces the coordination efficiency of the supply chain, while the influences of carbon tax policy upon the coordination efficiency relies on the initial carbon-emission level.
158724946
Toward Supply Chain Sustainability: Governance and Implementation of Joint Sustainability Development
The extant sustainability literature has argued that supply chain (SC) members can gain both financial and operational benefits from a joint sustainability development (JSD) effort. However, no guidance has been provided on how SC members could collaborate on their sustainability development efforts to achieve the intended economic performance. This study addressed this research gap by proposing different contractual governances, based on a game-theoretic approach, for both manufacturer and retailer to better engage in JSD. Specifically, multiple JSD contractual arrangements regarding profit and associated cost sharing between manufacturers and retailers were defined and evaluated. Our analyses show that the manufacturer behaves opportunistically when the impact of a retailer’s effort on consumer demand is low. In other words, the retailer increases its sustainability effort, but not the manufacturer. However, such opportunistic behavior can be removed under a revenue sharing arrangement. That is, the manufacturer becomes cooperative with the retailer, and both retailer and manufacturer increase their JSD efforts. Several numerical experiments were conducted to assess the effectiveness of various revenue sharing arrangements (no sharing, partial profit sharing, and total profit sharing) in devising and implementing a mutually beneficial JSD program. Accordingly, several guidelines for the SC JSD implementation are provided.
154184247
Supply chain analysis under green sensitive consumer demand and cost sharing contract
In this paper, we explore supply chain coordination issues arising out of green supply chain initiatives and explore the impact of cost sharing contract on the key decisions of supply chain players undertaking green initiatives. Our motivation comes from firms conducting pioneering work in the area of carbon footprint reduction in their supply chains through product redesign. Through a game theoretic approach we show how product greening levels, prices and profits are influenced by cost sharing contract within the supply chains. We study two models of cost sharing – one in which the retailer offers a cost sharing contract and the other in which the retailer and manufacturer bargain on the cost sharing contract. We also study the impact of greening costs and consumer sensitivity towards green products. Our key contribution lies in modelling cost sharing contract and analysing its impact on a green supply chain. Our study contributes to the burgeoning field of green supply chains and collaboration between channel partners.
158491207
A Dynamic Failure Rate Forecasting Model for Service Parts Inventory
This study investigates one of the reverse logistics issues, after-sale repair service for in-warranty products. After-sale repair service is critical to customer service and customer satisfaction. Nonetheless, the uncertainty in the number of defective products returned makes forecasting and inventory planning of service parts difficult, which leads to a backlog of returned defectives or an increase in inventory costs. Based on Bathtub Curve (BTC) theory and Markov Decision Process (MDP), this study develops a dynamic product failure rate forecasting (PFRF) model to enable third-party repair service providers to effectively predict the demand for service parts and, thus, mitigate risk impacts of over- or under-stocking of service parts. A simulation experiment, based on the data collected from a 3C (computer, communication, and consumer electronics) firm, and a sensitivity analysis are conducted to validate the proposed model. The proposed model outperforms other approaches from previous studies. Considering the number of new products launched every year, the model could yield significant inventory cost savings. Managerial and research implications of our findings are presented, with suggestions for future research.
168129209
Buyer–Supplier Contracts versus Joint Ventures: Determinants and Consequences of Transaction Structure
When a buyer firm and a supplier firm plan to transact, what factors drive their choice of mechanism to govern the relationship? Focusing on contract-governed versus joint venture–governed relationships, the authors present a theoretical framework that specifies the conditions that make one or the other form of relationship structure more appropriate. This study was designed to address potential limitations regarding measurement, financial consequences, and context in the extant literature. The authors employ measures derived from Standard & Poor's Compustat financial database and an overall measure of firm reputation to examine empirically differences in firm characteristics across the two types of relationships. To examine the financial consequences of relationship structure, the authors use event-study techniques that tie stock price reactions to the governance mechanism choice. The results suggest that buyers and suppliers are more likely to form a joint venture (versus simple contract) when (1) the supplier's degree of asset specificity is high, (2) monitoring the supplier's behavior is difficult, and (3) the supplier has a poorer reputation. The authors find that vertical joint ventures (between buyers and suppliers) are economically similar to contracts, to the extent that abnormal wealth gains go solely to the supplier firms. Horizontal joint ventures (partners are at the same level of the value chain), however, provide bilateral, synergistic wealth gains. The results suggest that buyers and suppliers can use joint ventures to reduce certain governance problems rather than to gain synergies.
114278939
The Evolution of an International Academic Manufacturing Survey
The Global Manufacturing Research Group (GMRG) is a multi-national community of researchers dedicated to the study and improvement of manufacturing supply chains world-wide (www.gmrg.org). A major part of its effort has been the collection and analysis of empirical data gathered directly from manufacturing firms. Over the past 20+ years, new manufacturing issues have arisen, the operations management research community’s understanding of questionnaire design and data collection methods have improved, and empirically based academic research has expanded. As a consequence, the GMRG questionnaire has been revised three times. In each instance an international group of researchers was involved in the effort. This article describes the evolution of the GMRG survey. Table 1 summarizes the GMRG survey periods, data collection results, and related theoretical background since 1986. The First GMRG 1.0 (1986-1989)
15153976
Do Formal Contracts and Relational Governance Function as Substitutes or Complements
While transaction cost economists have generally argued that hazardous exchange conditions warrant complex contracts or vertical integration, other scholars have argued that trust or relational forms of governance effectively support exchange. These scholars view relational governance as a substitute for complex, explicit contracts. Indeed, some have suggested that contracts directly undermine the evolution of trust in exchanges. We advance and empirically test the alternative argument that formal contracts and relational governance are complements. Rather than hindering or replacing relational governance, contracts may promote the formation of long-term, trusting exchange relations. Using data from a sample of exchanges in information services, we find empirical support for the proposed complementary relationship.
154209184
Outsourcing decisions in global supply chains: an exploratory multi-country survey
Outsourcing has become a necessity for most companies in today's competitive environment, which is also evidenced by a growing interest by academics worldwide. However, to date very few multi-country studies exist that compare and contrast outsourcing decisions and practices by organisations in different countries. The present research aims to contribute to this area by reporting and analysing results from a survey conducted in 15 countries. Using a total dataset of 806 responses, empirical exploratory insights are reported on the evolving approaches and concepts of outsourcing decision-making in different countries. More specifically, this study provides characteristics of the most important suppliers to respondents across the 15 nations, and explores rationales for outsourcing, highlighting country-specific similarities and differences. In addition, using transaction cost economics (TCE), four hypotheses are developed and tested, linking contract specificity, purchase risk, supplier responsiveness, and procedural rigour to purchase performance within an outsourcing context. In addition, differences on these main variables across the 15 countries are explored. Insights for academia and practice are highlighted.
45273826
Transaction Cost Analysis: Past, Present, and Future Applications
Over the past decade, transaction cost analysis (TCA) has received considerable attention in the marketing literature. Marketing scholars have made important contributions in extending and refining...
168505817
Challenges for Global Supply Chain Sustainability: Evidence from Conflict Minerals Reports
The vertically integrated corporation of the 20th century has been replaced by disaggregated global supply chains across many industries. Dis-integration can reduce costs, but also limits the abili...
5281538
Common method biases in behavioral research: a critical review of the literature and recommended remedies.
Interest in the problem of method biases has a long history in the behavioral sciences. Despite this, a comprehensive summary of the potential sources of method biases and how to control for them does not exist. Therefore, the purpose of this article is to examine the extent to which method biases influence behavioral research results, identify potential sources of method biases, discuss the cognitive processes through which method biases influence responses to measures, evaluate the many different procedural and statistical techniques that can be used to control method biases, and provide recommendations for how to select appropriate procedural and statistical remedies for different types of research settings.
168025892
Inter-organizational relationships and strategy quality in green supply chains — Moderated by opportunistic behavior and dysfunctional conflict
Abstract This paper presents a new research model to examine the factors influencing the quality of strategies developed and implementation in inter-organizational relationships in a green supply chain. In this study, we examine how attitude toward relationship orientation affects inter-organizational strategy quality, and how this association is affected by the opportunistic behavior and dysfunctional conflict. Relationship orientation, measured by relational benefits, relational proclivity, and connectedness, refers to the desire to develop and maintain relationships with green supply chain partners. Data are collected from 451 manufacturing firms that are among the top 1000 Taiwanese manufacturing firms of 2010 listed by Business Weekly . Relationship orientation, or the desire to develop and maintain relationships with collaborative partners, was found to be positively associated with the strategy quality. Our results show that opportunistic behavior and dysfunctional conflict decrease the willingness and damage efforts to establish relationships to enhance the strategy quality for the green supply chain.
167477157
Why supply chain collaboration fails: the socio-structural view of resistance to relational strategies
Purpose – The purpose of this study is to elaborate theory regarding the reasons why collaboration strategies fail. The relational view posits that supply chain integration can be a source of competitive advantage. Few firms, however, successfully co-create value to attain supernormal relational rents. Design/methodology/approach – This study uses a quasi-longitudinal, multi-case interview methodology to explore the reasons why collaboration strategies fail to deliver intended results. The authors interviewed managers at 49 companies in Period 1 and managers at 57 companies in Period 2. In all, 15 companies participated in both rounds of interviews. Findings – This study builds and describes a taxonomy of relational resistors. The authors then explore how sociological and structural resistors reinforce each other to undermine collaborative behavior. Specifically, the interplay among resistors: obscures the true sources of resistance; exacerbates a sense of vulnerability to non-collaborative behavior that ...
153864462
Mediated effect of environmental management on manufacturing competitiveness: An empirical study
The extant literature has not thoroughly examined the inter-relationships among continuous improvement (CI), supplier management (SM), environmental management (EM), and manufacturing competitiveness. This study posits that environmental management is partially an extension of advanced manufacturing practices, continuous improvement and supplier management, since a significant portion of EM programs is based on the foundations of those practices. Therefore, EM can be regarded as a mechanism through which CI and SM practices reinforce their contribution to manufacturing competitiveness. A meditational regression model is constructed and the statistical results suggest that firms with closer supplier partnerships and solid continuous improvement practices are more likely to develop a proactive EM program, which in turn enhances competitive advantage through cost savings, quality improvement, and process/product innovation. The influences of SM and CI on cost and delivery performance are lessened with the presence of EM programs. Environmental management must not function separately from SM and CI. Finally, the effect of culture and industry is discussed with suggestions for future research.
53965580
Supply chain collaboration in industrial symbiosis networks
Abstract A strategy supporting the development towards a circular economy is industrial symbiosis (IS). It is a form of collaborative supply chain management aiming to make industry more sustainable and achieve collective benefits based on utilization of waste, by-products, and excess utilities between economically independent industries. Based on an extensive analysis of published studies on existing IS collaborations and interviews with central stakeholders of a comprehensive IS, this paper investigates IS from a supply chain collaboration perspective. A theoretical framework is built and used to discuss how industrial symbiosis pursues sustainability and to identify the main collaboration aspects and performance impacts. This framework is then used in the analysis of selected published cases. Based on this, we derive propositions on the organizational and operational requirements for collaboration in the context of IS networks, related to the supply chain integration and coordination practices. As IS has only received little attention in the operations and supply chain management community, our propositions directly lead to future research directions. Furthermore, the analysis in this paper provides directions to increase the feasibility and resource efficiency of IS networks and can hence be used by stakeholders involved in these networks.