Developing design principles for the digitalisation of purchasing and supply management

Industry 4.0 and life cycle assessment: Evaluation of the technology applications as an asset for the life cycle inventory

Industry 4.0 technologies present transformative potential in data acquisition for production activities, promising to revolutionize the Life Cycle Inventory process. Despite acknowledging their utility in environmental impact analysis, a gap exists in understanding the specific applicability of these technologies to fulfill ISO 14044 criteria. This study addresses the gap by introducing innovative approaches to Life Cycle Assessment through Industry 4.0 technologies. Beyond existing research, technologies directly impacting LCA development are identified, along with a classification for optimal usage in the LCA process. The crucial role of these technologies in enhanced data collection across life cycle phases is highlighted, introducing a scoring mechanism to identify the technology excelling in enabling Life Cycle Inventory development. Employing a developed framework and systematic literature review, the study aims to identify Industry 4.0 technologies in manufacturing that facilitate LCA. Findings illuminate potential contributions across different product life cycle stages, with cyber-physical systems, the Internet of Things, and Simulation and Modelling identified as the most effective technologies for constructing Life Cycle Inventories. The outcomes provide guidance for practitioners in integrating Industry 4.0 technologies into manufacturing activities, offering valuable insights for environmental sustainability assessment.

Assessing the critical success factors for implementing industry 4.0 in the pharmaceutical industry: Implications for supply chain sustainability in emerging economies

The emerging technologies of Industry 4.0 (I4.0) are crucial to incorporating agility, sustainability, smartness, and competitiveness in the business model, enabling long-term sustainability practices in the pharmaceutical supply chain (PSC). By leveraging the latest technologies of I4.0, pharmaceutical companies can gain real-time visibility into their supply chain (SC) operations, allowing them to make data-driven decisions that improve SC performance, efficiency, resilience, and sustainability. However, to date, no research has examined the critical success factors (CSFs) that enable the pharmaceutical industry to adopt I4.0 successfully to enhance overall SC sustainability. This study, therefore, analyzed the potential CSFs for adopting I4.0 to increase all facets of sustainability in the PSC, especially from the perspective of an emerging economy like Bangladesh. Initially, sixteen CSFs were identified through a comprehensive literature review and expert validation. Later, the finalized CSFs were clustered into three relevant groups and analyzed using a Bayesian best-worst method (BWM)-based multi-criteria decision-making (MCDM) framework. The study findings revealed that "sufficient investment for technological advancement", "digitalized product monitoring and traceability", and "dedicated and robust research and development (R&D) team" are the top three CSFs to adopt I4.0 in the PSC. The study's findings can aid industrial practitioners, managers, and policymakers in creating effective action plans for efficiently adopting I4.0 in PSC to avail of its competitive benefits and ensure a sustainable future for the pharmaceutical industry.

Unfolding sustainable auditing ecosystem formation path through digitalization transformation: How digital intelligence of accountant fosters the digitalization capabilities

This research aims at indulging a consistent image of how Digitalization Capabilities (DC) demonstrates an impact on Sustainable Auditing Ecosystem (SAE) within public sector organizations (PSOs) in developing countries, especial in an emerging market, and gives insights regarding to divergent impacts of the interconnection between DC and SAE moderated by different levels of Accountants' Digital Intelligence (ADI). The state-of-the-art structural equation modelling (SEM) was employed to statistically analyze the survey data collected from self-administered questionnaire distributed to a convenient sample of 323 respondents. Additionally, multi-group analysis (MGA) was implemented to explore the heterogeneity of data and examined substance of the difference in the parameters caused by the moderating variable. The obtained results advocated that it was paramount for PSOs to increase DC for SAE formulation. The MGA findings highlighted a statistically significant difference in the impacts of DC on SAE between various levels of ADI. The insights acquired from final model emerged as a foundation which might buttress policymakers and PSOs' practitioners in initiatives development pertaining to digitalization for SAE formulation.

Dynamic capabilities for digital procurement transformation: a systematic literature review

Purpose

The purpose of this paper is to achieve a collective understanding of the capabilities required for digital procurement transformation (DPT).

Design/methodology/approach

The authors contextualize theory about dynamic capabilities (DCs) to integrate the fragmented body of literature on procurement digitalization by means of a systematic literature review (SLR). By extracting and clustering capabilities, as well as proven performance outcomes from existing literature in the field, the authors develop a conceptual model of the DCs required for DPT.

Findings

The authors first introduce and define DPT and the corresponding motivations that trigger firms to invest in advanced digital technologies. Second, by adopting the DC lens, the authors provide an overview of nine microfoundations required for DPT and highlight the strategic options procurement leaders can use when strategizing about adopting combinations of digital technologies. Third, the authors present a future research agenda on DCs for DPT.

Research limitations/implications

The developed conceptual model must be verified and enhanced through further empirical research.

Practical implications

The conceptual model can be used by procurement leaders as a starting point and framework when strategizing about digitally transforming the procurement organization.

Originality/value

The study is the first to synthesize previous research findings on procurement digitalization through an SLR in order to develop a fine-grained conceptual model that supports practitioners and researchers alike in better understanding the capabilities required for and potential performance outcomes of DPT.

Socially responsible operations in the Industry 4.0 era: post-COVID-19 technology adoption and perspectives on future research

Purpose

As focal firms in supply networks reflect on their experiences of the pandemic and begin to rethink their operations and supply chains, there is a significant opportunity to leverage digital technological advances to enhance socially responsible operations performance (SROP). This paper develops a novel framework for exploring the adoption of Industry 4.0 technologies for improving SROP. It highlights current best-practice examples and presents future research pathways.

Design/methodology/approach

This viewpoint paper argues how Industry 4.0 technology adoption can enable effective SROP in the post-COVID-19 era. Academic articles, relevant grey literature, and insights from industry experts are used to support the development of the framework.

Findings

Seven technologies are identified that bring transformational capabilities to SROP, i.e. big data analytics, digital twins, augmented reality, blockchain, 3D printing, artificial intelligence, and the Internet of Things. It is demonstrated how these technologies can help to improve three sub-themes of organisational social performance (employment practices, health and safety, and business practices) and three sub-themes of community social performance (quality of life and social welfare, social governance, and economic welfare and growth).

Research limitations/implications

A research agenda is outlined at the intersection of Industry 4.0 and SROP through the six sub-themes of organisational and community social performance. Further, these are connected through three overarching research agendas: “Trust through Technology”, “Responsible Relationships” and “Freedom through Flexibility”.

Practical implications

Organisational agendas for Industry 4.0 and social responsibility can be complementary. The framework provides insights into how Industry 4.0 technologies can help firms achieve long-term post-COVID-19 recovery, with an emphasis on SROP. This can offer firms competitive advantage in the “new normal” by helping them build back better.

Social implications

People and communities should be at the heart of decisions about rethinking operations and supply chains. This paper expresses a view on what it entails for organisations to be responsible for the supply chain-wide social wellbeing of employees and the wider community they operate in, and how they can use technology to embed social responsibility in their operations and supply chains.

Originality/value

Contributes to the limited understanding of how Industry 4.0 technologies can lead to socially responsible transformations. A novel framework integrating SROP and Industry 4.0 is presented.

Designing Value Chains for Industry 4.0 and a Circular Economy: A Review of the Literature

The growth of emerging digital technologies has led to premature and inconsistent conclusions about the relationship between circular economy and value chain activities. A structured, systematic review approach was used to examine the titles and abstracts of 912 papers from the circular economy and digital transformation, strategic management, and operations management literature. We looked at a relevant selection of 79 articles to develop a research agenda. The literature review helped identify strategic initiatives impacting the firm value chain’s redesign involving logistics capabilities, marketing, sales, and service. Outcomes of this study make significant contributions to the field. First, firms must reorganize their business models that align with their value chain activities. Second, the literature review in this study adds to a growing understanding of the field of research by showing that engaging with Industry 4.0 and the circular economy is desirable and necessary for internalizing knowledge flows across different value chain actors. Third, this study is a first step in the right direction in developing and understanding the critical role of value chains and evolving business models in a global economy with calls for more sustainable development.

Performance measurement of construction suppliers under localization, agility, and digitalization criteria: Fuzzy Ordinal Priority Approach

The suppliers' performance plays a vital role, with a domino effect, in project success, organizational competitiveness, protecting supply chain and construction industry from disruptions and PESTEL risks (political, economic, social, technological, environmental, and legal). Therefore, measuring the performance of the construction suppliers has become the primary focus of project-oriented organizations and the core of business decision-making, especially during global megatrends. The question that may arise here is, "How can the performance of the construction suppliers be determined under uncertainties considering the post-COVID-19 era?" Organizations need eligible suppliers for the rapid recovery of the supply chain and construction sector at this critical stage. Given the importance of the issue, this study aims to propose a novel approach for measuring the performance of construction suppliers using the fuzzy ordinal priority approach (OPA-F). OPA-F is a recent development in multiple criteria decision-making (MCDM) that can determine the criteria weights for performance measurement using fuzzy linguistic variables. We do not always have access to a complete data set in real-world situations and business environments. Nevertheless, OPA-F can handle this dilemma, even with incomplete input data. This research intends to consider three main aspects of the construction suppliers, known as (L-A-D) capabilities, including localization, agility, and digitalization. In this regard, we bring up a case study from the construction industry to demonstrate the application of the proposed framework. The findings show that the most critical criterion is "digitalization" for the case study. This criterion covers "supply chain automation" and "virtualization and dematerialization" of services/products. The proposed approach is practical and straightforward, particularly for academicians and decision-makers; it can also incorporate uncertainties.

The road towards industry 4.0: a comparative study of the state-of-the-art in the Italian manufacturing industry

Purpose

This paper has two objectives: first, to investigate the state-of-the-art of Industry 4.0 (I4.0) adoption in Italian manufacturing firms and, second, to understand variations in technologies implemented and business functions involved, benefits perceived, and obstacles encountered in I4.0 implementation over a three-year period.

Design/methodology/approach

The approach adopted in this research is descriptive, nesting longitudinal features. The paper presents a descriptive survey of 102 Italian manufacturing companies. The authors also evaluated non-response biases. The longitudinal approach was achieved by comparing the responses of the 40 sub-samples in common with a second similar survey launched three years prior, which aimed to identify patterns of evolution in the adoption of the I4.0 paradigm.

Findings

Survey findings demonstrate that Italian manufacturing companies still have limited awareness of I4.0 technologies, and the adoption of I4.0 technologies differs per technology. Company size and information system coverage level are the two factors that impact the company's technology adoption level. The comparative study shows that knowledge and adoption increase in a three-year interval with an unbalanced involvement of business functions regarding the I4.0 transformation. Indeed, companies are still seeking I4.0 solutions to reduce costs and lead times primarily, and the benefits perceived by companies are shown to be related to the number of I4.0 technologies in use. Finally, when companies put the I4.0 technologies into practice, competence is constantly considered the most significant barrier.

Research limitations/implications

This paper aims at conducting a thorough investigation into the development of I4.0 adoption in manufacturing companies. The main limitation of this study concerns the limited number of subjects involved in the longitudinal study (40) and the focus on a limited geographical area (Italy). In addition, more I4.0 technologies could also be incorporated into the survey protocol to gain further insight into I4.0 development.

Originality/value

The authors provide one of the first attempts to assess the variations of I4.0 implementation concerning technology adoption, business function involvement, and the alteration of benefits and obstacles. Several studies presented in the literature highlight the lack of longitudinal studies investigating the development of the I4.0 paradigm in a specific manufacturing context: this paper is the attempt at filling this gap.

Smart Additive Manufacturing: The Path to the Digital Value Chain

The aim of this article is to characterize the impacts of Smart Additive Manufacturing (SAM) on industrial production, digital supply chains (DSCs) and corresponding digital value chains (DVCs), logistics and inventory management. The method used consists of a critical review of the literature, enriched by the authors’ field experience. The results show that digital transformation of manufacturing is affecting business models, from resource acquisition to the end user. Smart manufacturing is considered a successful improvement introduced by Industry 4.0. Additive Manufacturing (AM) plays a crucial role in this digital transformation, changing the way manufacturers think about the entire lifecycle of a product. SAM combines AM in a smart factory environment. SAM reduces the complexity of DSCs and contributes to a more flexible approach to logistics and inventory management. It has also spurred the growth and popularization of customized mass production as well as decentralized manufacturing, rapid prototyping, unprecedented flexibility in product design, production and delivery, and resource efficiency and sustainability. SAM technology impacts all five Fletcher’s stages in DVCs. However, the need for clear definitions and regulations on 3D printing of digital files and their reproduction, as well as product health, safety, and integrity issues, cannot be ignored. Furthermore, investment in this technology is still expensive and can be prohibitive for many companies, namely SMEs.

A knowledge-based view of analytics capability in purchasing and supply management

Purpose

The purpose of this study is to elaborate on how analytics capability develops within the PSM function. This study is an in-depth exploration of how analytics capability develops within the purchasing and supply management (PSM) function.

Design/methodology/approach

A multiple case study was conducted of the PSM function of six case firms, in which primary data were collected through semi-structured interviews with PSM analytics stakeholders. The data were analyzed based on an analytics capability framework derived from the literature. Cases were chosen based on them having advanced PSM practices and ongoing analytics projects in the PSM area.

Findings

The findings shed light on how the firms develop their analytics capability in the PSM functional area. While we identify several commonalities in this respect, the authors also observe differences in how firms organize for analytics, bringing analytics and PSM decision-makers together. Building on the knowledge-based view of the firm, The authors offer a theoretical explanation of our observations, highlighting the user-driven side of analytics development, which has largely been unrecognized by prior literature. The authors also offer an explanation of the observed dual role that analytics takes in cross-functional initiatives.

Research limitations/implications

The exploratory nature of our study limits the generalizability of our results. Further, our limited number of cases and interviewees indicate that there is still much to explore in the phenomenon of developing analytics capability.

Practical implications

Our findings can help firms gain a better understanding of how they could develop their analytics capability and what issues they need to consider when seeking leveraging data through analytics for PSM decisions.

Originality/value

This paper is, to the best knowledge of the authors, the first empirical study of analytics capability in PSM.

Emerging trends in digital transformation: a bibliometric analysis

Purpose

Ubiquitous digital technologies are driving organisations to embrace non-traditional digitally transformed business models incessantly. Heterogeneous literature contributions have resulted in a spur in the research related to business transformation driven by digital technologies in recent years; consequently, the research under the digital transformation (DT), even though becoming a hotspot, remains very fragmented. The authors endeavour to holistically present the literature's intellectual structure under DT as a concept, its evolving journey and the emerging research streams in the business and management domains using the techniques of bibliometric analysis.

Design/methodology/approach

By performing bibliometric analysis on 234 research articles published over the last 20 years in the DT domain, retrieved from Thompson Reuters Web of Science TM, this study culls out thorough insights from the citation, co-citation and keyword analysis. Further emerging research streams were evaluated using VOSviewer software.

Findings

The study depicts an overall incremental trend of year-on-year publications, authors' performance, publication journals, associated institutions and research driving countries, along with key insights from co-citation network analysis. Furthermore, the study evaluates four research areas – organisational impacts, applied applications and insights, operational processes and social aspects, comprising eighteen research streams that comprehensively cover-up research under the DT domain.

Research limitations/implications

The study contributes to the literature of DT by amalgamating the status of the present research, but more importantly, by deriving the research areas and research streams, which can be further expanded by researchers as future research streams.

Practical implications

For the practitioners, the study aims to act as a ready reckoner repository with practice-oriented literature references to facilitate them building knowledge and taking effective strategic decisions to harness the benefits of DT more proficiently.

Originality/value

This study illustrates the bibliometric structure of the DT literature and presents insights from the growth of the literature year-on-year.

Application of Industry 4.0 in the Procurement Processes of Supply Chains: A Systematic Literature Review

The fourth industrial revolution has significantly changed the traditional way of managing supply chains. The applications of Industry 4.0 (I4.0) technologies such as the Internet of Things (IoT) and Artificial Intelligence (AI) in different processes of supply chains have assisted companies to improve their performance. Procurement can be considered a critical process in supply chain management since it can provide novel opportunities for supply chains to improve their efficiency and effectiveness. However, I4.0 applications can be costly and may not be reasonably affordable. Therefore, the benefits of implementing these technologies should be clarified for procurement managers before investing in the digitalization of the procurement process. Despite the importance of this issue, few papers have attempted to address the effects of I4.0 technologies and smart systems in procurement. To fill this gap, a Systematic Literature Review (SLR) on the applications of I4.0 technologies in procurement has been used in this study. By reviewing 70 papers through appropriate keywords, a conceptual framework is developed to classify different value propositions provided by the different applications of I4.0 technologies in procurement processes. Results reveal nine value propositions that can provide a better understanding for the procurement department to analyze the benefits of implementing the related I4.0 technologies in different activities. Finally, findings and future study opportunities are concluded.

Structuring the phenomenon of procurement digitalisation: contexts, interventions and mechanisms

Purpose

The study develops a structure for procurement digitalisation by identifying its context drivers, technology interventions and performance-inducing mechanisms and exploring the linkages between these variables.

Design/methodology/approach

The study draws on rich interview and workshop data on 48 digital intervention projects, as reflected by mental models of managers from 12 case organisations in manufacturing, retail and service sectors. Supported by an a priori structure, the study employs an abductive cross-case analysis approach.

Findings

Results suggest several categories within the elements of context, intervention and mechanism to structure procurement digitalisation and the linkages between them. Seven propositions that reflect digitalisation strategy options in procurement are developed regarding the linkages. Internal complexity dominantly drives procurement digitalisation, motivating communication support and process structuring interventions, which in turn aim at procurement coordination and control as well as process improvement. External coercive pressure and external dynamism also drive interventions for information processing and decision aiding, which appear to be linked with supply market knowledge, strategic alignment and supplier capability assessment. Therefore, an internal–external dichotomy is observed as the main thrust of procurement digitalisation.

Practical implications

The study supports decision makers in developing digitalisation strategy options for different procurement contexts. The results also raise awareness of a possible bias in existing strategies for procurement digitalisation.

Originality/value

A novel forward-looking approach is employed to enable the design and construction of systems that do not yet exist by focusing on the mental models of managers in a systematic way.

Blockchain Technology for Sustainable Supply Chain Management: A Systematic Literature Review and a Classification Framework

Through a systematic review of publications in reputed peer-reviewed journals, this paper investigates the role of blockchain technology in sustainable supply chain management. It uses the What, Who, Where, When, How, and Why (5W+1H) pattern to formulate research objectives and questions. The review considers publications since 2015, and it includes 187 papers published in 2017, 2018, 2019, and the early part of 2020, since no significant publications were found in the year 2015 or 2016 on this subject. It proposes a reusable classification framework—emerging technology literature classification level (ETLCL) framework—based on grounded theory and the technology readiness level for conducting literature reviews in various focus areas of an emerging technology. Subsequently, the study uses ETLCL to classify the literature on our focus area. The results show traceability and transparency as the key benefits of applying blockchain technology. They also indicate a heightened interest in blockchain-based information systems for sustainable supply chain management starting since 2017. This paper offers invaluable insights for managers and leaders who envision sustainability as an essential component of their business. The findings demonstrate the disruptive power and role of blockchain-based information systems. Given the relative novelty of the topic and its scattered literature, the paper helps practitioners examining its various aspects by directing them to the right information sources.

Distributed manufacturing: a new form of localised production?

Purpose

The emergence of distributed manufacturing (DM) is examined as a new form of localised production, distinct from previous manifestations of multi-domestic and indigenous production.

Design/methodology/approach

Supply network (SN) configuration and infrastructural provisioning perspectives were used to examine the literature on established localised production models as well as DM. A multiple case study was then undertaken to describe and explore the DM model further. A maximum variation sampling procedure was used to select five exemplar cases.

Findings

Three main contributions emerge from this study. First, the research uniquely brings together two bodies of literature, namely SN configuration and infrastructure provisioning to explore the DM context. Second, the research applies these theoretical lenses to establish the distinctive nature of DM across seven dimensions of analysis. Third, emerging DM design rules are identified and compared with the more established models of localised production, drawing on both literature and DM case evidence.

Practical implications

This study provides a rich SN configuration and infrastructural provisioning view on DM leading to a set of design rules for DM adoption, thus supporting practitioners in their efforts to develop viable DM implementation plans.

Originality/value

The authors contribute to the intra- and inter-organisational requirements for the emerging DM context by providing new perspectives through the combined lenses of SN configuration and infrastructural provisioning approaches.