Vol. 47, No. 1
Thought Leader Forum
Introduced by Craig R. Carter, Co-Editor-in-Chief of the Journal of Supply Chain Management
Studying Supply Chains from a Social Network Perspective
Social networks often exist among individuals who are boundary spanners in an inter-organizational network. These relationships are critical in explaining why inter-organizational networks are formed, disintegrate, and succeed or fail. Trust is central in most theories of social network effectiveness, and it also should be true in supply chain networks. This article proposes that supply chain architects consider supply chains that exhibit small world properties. This optimizes trust within the clique, but enables predictions and innovations to "hop" across cliques to other regions in the supply chain. The article concludes by proposing that networks should be studies over time and not as stagnant structures, and highlights a new methodology (SoNIA) for this.
Joseph Galaskiewicz, Ph.D., is Professor in the Department of Sociology at the University of Arizona, Tucson, Arizona.
Relevance of Strategic Management Theory and Research for Supply Chain Management
This article examines the relevance of several prominent theoretical perspectives in strategic management for supply chain management. The resource-based view of the firm, transaction cost economics, organization learning theory and social capital are reviewed for their applicability to important research questions in supply chain management. The work includes a discussion of some common strategic management research methods that can be useful in supply chain management research. The paper concludes that the research in strategic management and supply chain management are complementary, and that both fields could benefit from more integration of the work from both.
Michael A. Hitt, Ph.D., is Distinguished Professor of Management and Joe E. Foster '56 Chair in Business Leadership in the Mays Business School at Texas A&M University, College Station, Texas.
Reframing Supply Chain Management: A Service-Dominant Logic Perspective
Shifting the dominant thinking of supply chain management toward the concepts of service, value co-creation, value propositions, operant resources, networks, service ecosystems and learning opens up many research opportunities and strategies for improved organizational performance. The emerging thought world of service-dominant logic is presented as a means to reframe supply chain scholarship and practice for increased relevance and impact.
Robert F. Lusch, Ph.D., is the Executive Director of the McGuire Center for Entrepreneurship, and holds the James and Pamela Muzzy Chair in Entrepreneurship at the University of Arizona, Tucson, Arizona.
Understanding the Relationships between Internal Resources and Capabilities, Sustainable Supply Management, and Organizational Sustainability
This study aspires to empirically evaluate the effect of firm-specific resources and/or capabilities on sustainable supply management (SSM) and sustainability performance. Specifically, enviropreneurship and strategic purchasing are, respectively, recognized as firm-specific capabilities and resources that are fundamental to pursuing sustainable supply practices. SSM is forwarded as a key relational capability that can result in significant improvements in organizational sustainability. Using data collected from 145 U.S. firms and advanced structural equation modeling approaches, a number of direct, mediation and moderation effects are hypothesized and tested. Five of the six proposed hypotheses were found to be significant, providing strong support for the significant role that internal resources/capabilities can play in managing sustainable supply practices as well as organizational sustainability. Surprisingly, the hypothesis suggesting that strategic purchasing could moderate the relationship between enviropreneurship and SSM was found to be insignificant. This result suggests that managers need to realize that a strategic purchasing function alone cannot help in achieving the lofty goals of sustainability. On the contrary, the prime objective of firms must be to nurture an enviropreneurial orientation within their organization. Further implications for future research and practice within SSM are offered.
Anthony Paulraj, D.B.A, is Associate Professor in the Coggin College of Business at the University of South Florida, Jacksonville, Florida.
Information Technology as an Enabler of Supply Chain Collaboration: A Dynamic-Capabilities Perspective
Despite substantial information technology (IT) investments, many organizations have failed to obtain hoped-for improvements in supply chain (SC) performance. Therefore, we investigate the mechanisms through which IT influences SC performance. Specifically, we use the resource-based view (RBV) of the firm to ascertain how IT can be exploited to obtain a distinctive SC advantage. We do this via a multi-method (survey and case-study) approach at two periods of time. We use a nested structural equation model (SEM) to test six hypotheses. Likewise, we content-analyze interviews to contextualize the EM findings. Importantly, we find that investments in IT make their greatest competitive contribution when they enable a dynamic SC collaboration capability. The findings provide valuable insight to guide IT investments designed to improve SC performance.
Stanley E. Fawcett, Ph.D., is the Visiting Distinguished Professor of Logistics and Supply Chain Management at Georgia Southern University, Statesboro, Georgia,
Cynthia Wallin, Ph.D., is Assistant Professor of Global Supply Chain Management at Brigham Young University, Provo, Utah,
Chad Allred, Ph.D., is Assistant Professor at Brigham Young University, Provo, Utah,
Amydee M. Fawcett, MPA, is a doctoral student at the University of Arkansas, Fayetteville, Arkansas
Gregory M. Magnan, Ph.D., is Professor of Operations and MBA Program Director it the Albers School of Business and Economics at Seattle University, Seattle, Washington.
To Bid or Not to Bid: Drivers of Bidding Behavior in Electronic Reverse Auctions
Electronic reverse auctions (eRAs) are a popular tool used in sourcing and business research. However, the complexity of decisions made during this type of auction is not yet fully understood. The authors use date from a published laboratory experiment that had examined the impact of eRA configuration on buyer price and supplier perceptions of opportunism. In the present study, the authors analyzed data from the 11,882 time-interval observations and 2,549 bids submitted by suppliers to explore the factors that affect suppliers' decisions to submit bids in eRAs. The effects of supplier characteristics, bidding history and experience, auction configuration, and timing on the propensity to bid at a specific point in time during the eRA are estimated utilizing continuous time hazard rate analysis techniques. Our results indicate that the supplier's need for cognition and number of prior auction failures, online auction configuration, and the rank status of a supplier's bid at a given point in time all significantly affect the propensity to submit a bid. Also, if suppliers have previously submitted many bids in the online auction, they tend to submit more subsequent bids, suggesting an escalation of commitment dynamic that may underlie the potential for a bidding frenzy.
Sengun Yeniyurt, Ph.D., is Assistant Professor in the Rutgers Business School at Rutgers University, Piscataway, New Jersey,
Stevie Watson, Ph.D., is Assistant Professor Professor in the Rutgers Business School at Rutgers University, Piscataway, New Jersey,
Craig R. Carter, Ph.D., is Professor in the College of Business Administration at the University of Nevada, Reno, Nevada
Cynthia Kay Stevens, Ph.D., is Associate Professor in the Robert H. Smith School of Business at the University of Maryland, College Park, Maryland
Managing Buyer-Supplier Relationships: Empirical Patterns of Strategy Formulation in Industrial Purchasing
In this paper, we investigate how industrial buyers align their relationships with suppliers to the contextual characteristics of the purchase. We propose that patterns of purchasing strategy are evidenced, in part, by the alignment of three fundamental domains: the firm's strategic intent for a given purchase, the environment in which a purchase is made, and the type of relationship adopted by industrial buying firms with their selected suppliers. Using a cluster analysis on data collected from 226 buyers in a sample of U.S. industrial firms, we identified four primary types of purchases. Our results provide a partial empirical validation of the purchasing types presented in purchasing portfolio models. However, we identify a fourth type, the adversarial purchase, which cannot be mapped to existing portfolio models. We also found evidence that the dimensions of portfolio models may not be as independent as commonly assumed. We discuss the implications of our findings for practitioners and for research.
Regis Terpend, Ph.D., is Assistant Professor of Supply Chain Management in the College of Business and Economics at Boise State University, Boise, Idaho,
Daniel Krause, Ph.D., is Professor of Supply Chain Management in the Faculty of Business at the University of Victoria, Victoria, British Columbia (CANADA)
Kevin Dooley, Ph.D., is Professor of Supply Chain Management at the W.P. Carey School of Business at Arizona State University, Tempe, Arizona