Supply chain strategies in an era of natural resource scarcity

Big data driven innovation for sustaining SME supply chain operation in post COVID-19 scenario: Moderating role of SME technology leadership

Due to the COVID-19 pandemic, there is an unprecedented crisis for businesses. The small and medium enterprises (SMEs) have been impacted even more, due to their limited resources. Extant literature has prescribed many treatments on how SMEs could survive in post COVID-19 situation, but studies did not analyse how big data driven innovation could improve supply chain management (SCM) process in the post COVID-19 pandemic under the moderating influence of SME technology leadership support. Thus, there is a research gap in this important domain. The aim of this study is to examine the impact of big data driven innovation and technology capability of the SME on its supply chain system. The study also investigates the moderating role of SME technology leadership support on SME performance in the post COVID-19 scenario. With the help of literature and resource-based view (RBV) and dynamic capability view (DCV) theory, a theoretical model has been developed conceptually. Later the model is validated using structural equation modelling (SEM) technique with 327 usable respondents from SMEs from India. The study found that both big data driven innovation and the techno-functional capability of SME impacts supply chain capability which in turn impacts the SME performance in the post COVID-19 scenario. The study also finds that there will be a moderating impact of SME technology leadership support on SME performance.

The dark side of supply chain digitalisation: supplier-perceived digital capability asymmetry, buyer opportunism and governance

Purpose

In this paper, the authors seek to contribute to the supply chain digitalisation literature by investigating a potential dark side of supply chain digitalisation from the viewpoint of the small and medium-sized enterprise (SME) suppliers, namely digital capability asymmetry and the partner opportunism of more digitally capable large buyers against SME suppliers. The authors seek to contribute further to the governance literature by investigating the effectiveness of the governance mechanism (legal contracts and relational contracts) in suppressing partner opportunism of this nature.

Design/methodology/approach

Using survey data collected from 125 Korean SMEs, the authors employed a hierarchical regression method to test a set of hypotheses focussing on the dark side of supply chain digitalisation and the effectiveness of the governance mechanism.

Findings

The study’s findings suggest that supplier-perceived digital capability asymmetry, wherein a buyer has a superior digital capability than its SME supplier, increases the SME supplier's dependence on the more digitally capable buyer, with the result that it is more exposed to buyer opportunism. Moreover, the results suggest that only relational governance is effective in protecting SME suppliers from buyer opportunism of this nature.

Originality/value

So far, the overwhelming majority of supply chain digitalisation research has debated its “bright side”. On the contrary, from the resource dependence theory perspective, this paper explains its dark side by providing empirical evidence on (1) the links between supplier-perceived digital capability asymmetry and a buyer's opportunism through an increased supplier's dependence and (2) the effectiveness of different types of governance in opportunism suppression.

Megatrends and Trends Shaping Supply Chain Innovation

Companies operate in a macro-environment that is changing considerably due to large, transformative global forces namely megatrends and trends. The wave of these megatrends and trends generates new prospects as well as challenges for the future of supply chains. This chapter provides a review of 23 major megatrends and 72 trends identified in multiple dimensions along Political, Economic, Social, Technological, Legal, and Environmental (PESTLE) dimensions. The results are based on a systematic literature review and an experts’ workshop, and can be used to generate future supply chain scenarios.

Supply chains under resource pressure

Purpose

The purpose of this paper is to investigate the implications of supply chain strategies that manufacturing companies can use to minimise or overcome natural resource scarcity, and ultimately improve resource efficiency and achieve competitive advantage. The relationship between resource efficiency and competitive advantage is also explored.

Design/methodology/approach

The proposed research model draws on resource dependence theory. Data were collected from 183 logistics, purchasing, sustainability and supply chain managers from various manufacturing companies and analysed by applying the partial least squares structural equation modelling technique.

Findings

The results indicate that both buffering and bridging strategies improve resource efficiency; however, only bridging strategies seem to lead to firm’s competitive advantage in terms of ownership and accessibility to resources. The relationship between resource efficiency and competitive advantage is not supported.

Research limitations/implications

Future research could confirm the robustness of these findings by using a larger sample size and taking into account other supply chain members.

Practical implications

This research provides guidance to managers faced with the growing risk of resource scarcity to achieve a resource efficient supply chain and an advantage over competitors.

Originality/value

Studies have explored the appropriate strategies for minimising dependencies caused by the scarcity of natural resources in the field of supply chain management; however, there is limited empirical work on investigating the impact of these strategies on resource efficiency and competitive advantage.

The dilemma of inter-organizational relationships

Purpose

Power is central to inter-organizational relationships. The literature distinguishes between structural power (i.e. dependence) and behavioral power (i.e. use of power), yet few studies considered them simultaneously. Opportunism is generally linked to use of power, but it remains unclear whether use of power deters or invites opportunism. In this study, the authors treat dependence as a driver of use of power and opportunism as its outcome, and empirically test relationships among dependence, power, and opportunism from both buyer and supplier perspectives. The paper aims to discuss these issues.

Design/methodology/approach

This study examines how buyer and supplier dependence influence the other’s and their own use of coercive and non-coercive power, which lead to opportunism of two parties, based on data from 240 companies in China on their perceived relationships with major suppliers.

Findings

Results show that buyer/supplier dependence is positively related to supplier’s/buyer’s use of coercive and non-coercive power. Buyer’s and supplier’s use of coercive power also positively influences their opportunism. Buyer’s use of non-coercive power is negatively related to both partners’ opportunism, whereas supplier’s use of non-coercive power is not significantly related to either partner’s opportunism.

Originality/value

This study contributes to literature in two ways. First, the authors distinguish the structural aspect of power from its behavioral aspect and demonstrate that dependence, which represents structural power, generates different patterns of influence on use of coercive and non-coercive power when considered from buyer’s and supplier’s perspectives. Second, the authors reexamine relationships between use of power and opportunism and show that buyers and suppliers react differently to use of different types of power.