Supply chain integration, risk management and manufacturing flexibility

The impact of operational risk on performance in supply chains and the moderating role of integration

Purpose

This study aims to empirically investigate the impact of operational risk (i.e. supply, manufacturing and demand risks) on supply chain performance and the moderating role of integration (i.e. supplier, internal and customer integrations) in mitigating the impact of these risks, respectively.

Design/methodology/approach

A research framework of hypotheses is tested by structural equation modeling with data collected from the fourth round of the high-performance manufacturing project.

Findings

It is revealed that manufacturing and demand risks negatively impact operational performance, and more importantly, internal and customer integrations help to reduce the impact of these two risks. Additionally, the effects of both supply risk and supplier integration are only significant for large firms.

Practical implications

Supply chain managers need to appropriately develop the levels of integration to mitigate the adverse impact of operational risk.

Originality/value

Operational performance is always threatened by different types of risk that adversely affect the supply, production and demand sides of manufacturing firms. Despite this fact, large-scale data-based empirical research on the impact of operational risk on the performance of supply chains has been scarce. This study aims to fill this literature gap.

Firm-specific political risk: a systematic investigation of its antecedents and implications for vertical integration and diversification strategies

Purpose

Uncertainties caused by political risks can drastically affect global supply chains. However, the supply chain management literature has thus far developed rather limited knowledge on firms' perception of and reactions to increased political risks. This study has two main purposes: to explore the relationship between extant risk exposure and perceived firm-specific political risk and to understand the impact of firm-specific political risk on firms' vertical integration and diversification strategies.

Design/methodology/approach

The authors developed a unique dataset for testing our hypotheses. Specifically, the authors sampled manufacturers (SIC20-39) listed in the United States from 2002 to 2019. The authors collected financial and diversification data from Compustat, vertical integration data from the Frésard-Hoberg-Phillips Vertical Relatedness Data Library and political risk data from the Economic Policy Uncertainty database. This data collection process yielded 1,287 firms (8,329 observations) with available data for analysis.

Findings

A two-way fixed-effect regression analysis of panel data revealed that firms tend to be more sensitive to political risk when faced with income stream uncertainty or strategic risk. By contrast, exposure to stock returns uncertainty does not significantly influence firms' sensitivity toward political risk. Moreover, firm-specific political risk is positively associated with vertical integration and product diversification. However, firm-specific political risk does not result in higher levels of geographical diversification.

Originality/value

This study joins the literature that systematically explores the antecedents and implications of firm-specific political risk, thus broadening the scope of supply chain risk management.

Introduction of a Corporate Security Risk Management System: The Experience of Poland

To ensure the economic security of companies, it is necessary to introduce a risk management system based on the use of various tools, especially financial ones. The purpose of the article is to scientifically substantiate the paradigm of integration of the risk management mechanism into the system of economic security in companies on the basis of risk-oriented management. The main study method was an online survey of 50 Polish companies in January–April 2021 using a developed questionnaire consisting of 40 questions. According to the results of the expert survey, it is determined that regardless of the type of economic activity of the enterprise, the main goal of introducing risk-oriented management is to preserve assets and increase the efficiency of financial and economic processes. The introduction of risk-oriented management is perceived as a tool to increase the value of the company and ensure the achievement of strategic goals. Fraud is a significant risk to the state of economic security for modern enterprises. To prevent the fact of fraud, taking into account the specifics of the operation of companies, it is suggested to conduct an annual examination. As a result, the suggested procedure should include an audit (audit of financial statements, forensics, transition to international financial reporting standards, audit of systems and processes), assessment (assessment for audit and reporting in accordance with international financial reporting standards, risk management assessment in accordance with international standards, assessment of the effectiveness of economic security), tax analytics (identification of tax risks, analysis of compliance with tax legislation, tax audit), and a due diligence procedure for investment objects.

Transformational leadership, integration and supply chain risk management in Vietnam's manufacturing firms

Purpose

Due to an increase in vulnerability, supply chain risk management (SCRM) has gained the attention of both researchers and practitioners. Although different approaches have been widely used to discuss the implementation of risk management, the impacts of leadership factors on SCRM have received little attention. To fill this gap in the literature, this study aims to examine whether transformational leadership and integration facilitate SCRM and enhance performance.

Design/methodology/approach

Using 261 Vietnamese manufacturing companies as sample, this study applies partial least squares based structural equation modeling (SEM) to test the proposed hypotheses.

Findings

This study demonstrates three contributions for exist leadership and supply chain literature. First, the characteristics of transformational leadership effectively facilitate the internal and external integration in supply chain with higher responsiveness, visibility and integration. Second, transformational leadership has indirectly effect to supply chain risk management practice (SCRMP) throughout supply chain integration (SCI). Additionally, three dimensions of integration enable SCRM and partially mediate the relationship between transformational leadership and SCRM. Furthermore, SCRM not only plays a partially mediating role in the relationship between internal integration, customer integration and supply chain performance but also fully mediates the relationship between supplier integration and supply chain performance.

Practical implications

This study addresses that the paper extends the content of the relationship between transformational leadership and SCI by three integration dimensions among of exist literature. Transformational leadership should be literarily included into part of leadership strategy on SCRMPs since it is shown to have an indirectly positive improvement effect on SCRM. In addition, the paper is targeted the supply chain downstream performance (SCDP) with integration and risk management with the concept of considering downstream performance is a key section to confront the external stakeholder and customers, Finally, the authors emphasized companies should be aware of the importance about how to include transformational leadership, SCI and SCRMP into its supply chain management.

Originality/value

This study contributes to the SCRM literature by empirically examining the effect of transformational leadership and SCI on SCRM and performance in Vietnam, which is few and far better than that of developed countries.

Identification and Characterization of Supply Chain Operational Risk Profiles in Manufacturing Companies

Research on the interactions between risk, integration, and performance in supply chains (SCs) is increasingly attracting attention of researchers in recent years. Although risk usually has negative effects on performance, limited evidence has been provided to show whether companies differently exposed to operational risk (i.e., high, moderate, or low exposure) also have different levels of integration and operational performance. Therefore, this study aims to identify and characterize different profiles of operational risk (i.e., supply, manufacturing, and demand risks) between manufacturing companies along with considering contextual factors such as company size and industry type. Data are collected from the fourth round of the High Performance Manufacturing Project and subsequently analyzed by cluster analysis and analysis of variance (ANOVA). Three different clusters have been identified: Two clusters are moderately and highly impacted by operational risk, respectively, while the other cluster is almost not impacted by manufacturing risk but highly impacted by supply risk and demand risk. The results also indicate that companies with different profiles of operational risk have different levels of integration and operational performance. An important contribution of the current study is the development of a hypothesized framework of interactions between operational risk, integration, and operational performance to provide opportunities for further research.

Supply Chain Governance Mechanisms, Green Supply Chain Management, and Organizational Performance

While firms understand that implementing green supply chain management (GSCM) is important, they seem uncertain about how to manage their green initiatives by looking beyond their own facilities. Building a green supply chain requires the participation of all partner firms across the supply chain. However, partner firms are different in size, situation, capabilities, and even industries. Thus, encouraging them to participate in green initiatives is difficult. Many small and medium enterprises (SMEs) hesitate to comply with green initiatives as they require a substantial amount of investment. This study empirically examines the causal relationship between the partnership governance mechanism and the success of GSCM. Based on transaction-cost economics theory (i.e., opportunism) and relational perspectives (i.e., trust) as the theoretical background, this study found that governance mechanisms between suppliers and manufacturers are positively related to GSCM performance. It showed that formal governance is important in the process-management side, while relational governance is critical for sharing knowledge in GSCM. The implications of the study results provide strategic insights on how the choice of governance mechanism affects GSCM performance and thus a firm’s competitiveness.

Supply chain integration and economic performance: empirical evidence from a developing country

Purpose

This study seeks to investigate the impact of supply chain integration (SCI) practices on economic performance in Vietnamese enterprises.

Design/methodology/approach

Based on data collected from 144 Vietnamese enterprises, this study employs partial least squares path modeling to analyze the direct and indirect relationships among external integration, information integration, process integration and economic performance.

Findings

Analytical results indicate that of the three SCI practices, external integration has a significant and positive impact on economic performance. Process integration and information integration, on the one hand, reveal insignificant direct impact on economic performance, and on the other, show significant indirect effect on economic performance through external integration.

Originality/value

This study sheds new light on the contribution of SCI to economic performance in developing economies and offers suggestions for not only local management but also foreign investors on the efficient allocation of resources to achieve higher economic performance.

Systematic review of manufacturing strategy studies focusing on congruence aspect

Purpose

This study provides a systematic review of the literature within the manufacturing strategy (MS) domain focusing on the congruence aspect of different strategic functions to determine the state-of-the-art research progression and the trend of publications.

Design/methodology/approach

We have adopted a five-stage review methodology consisting - 1) Article Identification; 2) Inclusion/Exclusion; 3) Review of the Articles; 4) Literature Analysis; 5) Future research directions. 121 articles focusing on congruence aspects and specific to the MS domain are identified and reviewed. Bibliometric analysis comprising keyword co-occurrence using a VOSviewer© software, and citation analysis is performed. Further, content analysis is carried out to categorize articles based on the type of research methodology, type of tool/method used, and aspects considered for congruence study.

Findings

Based on the research gaps identified in the existing literature on the congruence aspect within the MS domain, this study offers future research directions. Majorly, the work found is an empirical survey. Literature scants to develop a framework that helps to quantify the congruence between two strategic functions.

Research limitations/implications

This study facilitates researchers and practitioners to understand the congruence between different strategic aspects studied in the literature and the level of fit between them. Further, the identified research directions can encourage researchers and practitioners to conceive novel approaches to conduct future works on congruence theme.

Originality/value

The unicity of the current review lies in its theme, i.e. congruence aspect within MS. To the best of author's knowledge, no comparable study is observed to review the congruence aspect in any other domain.

Linking supply chain integration to supply chain orientation and performance – a knowledge integration perspective from Indian manufacturing industries

Purpose

The purpose of this paper is to investigate the complex interrelationships among the key constructs, supply chain orientation (SCO), supply chain integration (SCI) and supply chain performance (SCP) in Indian manufacturing industries. These relationships have been studied using the relational view (RV) and the knowledge-based view (KBV) theoretical perspectives.

Design/methodology/approach

The conceptual model was derived from the existing body of knowledge in the supply chain domain. The study is based on a sample size of 122 data collected via face-to-face meetings with the Indian manufacturers using well-established scales. The covariance-based structural equation modeling was used to test the proposed hypotheses.

Findings

In Indian manufacturing and supply chains, SCO has a positive relationship with SCI and SCP. Moreover, the direct impact of SCO on SCP diminishes when SCI is used as a mediating variable. This study also observes positive impact of: i) SCO on SCP, ii) SCI on SCP and iii) discovery of mediating role of SCI on SCP under the theoretical lenses of RV and KBV.

Research limitations/implications

Cross-sectional survey of manufacturing firms of one country (using one response per firm) calls for validation covering other parts of the world and demands a longitudinal survey. This research will trigger more scholarly, practice and policy debate among researchers studying Indian and emerging economies context.

Practical implications

The notion of a holistic view of the SC with a focus on improving the customer value can enhance strategic partnerships among the SC partners (i.e. SCI) and overall SCP. Firms should make efforts to include SCI in SC designs to successfully transform SCO into SCP.

Originality/value

The originality of the research lies in studying the complex interrelationships among key concepts of SC in a unique Indian manufacturing context. The Indian supply chains operate in a set of unique characteristics, which have been detailed out in this paper. This paper not only establishes the mediating role of SCI for overall SCP in emerging economies but also enhances the scholarly knowledge in the SC domain. Most studies report SCO as a single-order construct, measured by scales comprising of only few items. The second-order SCO measures in this study bring credibility to the findings. Additionally, it contributes to both academicians and practitioners alike in the context of an integrated SC in emerging economies.

Supply Chain Integration Enables Resilience, Flexibility, and Innovation to Improve Business Performance in COVID-19 Era

The COVID-19 pandemic has brought about a sudden change from normal conditions to disruption conditions, and industrial sectors have experienced eroded growth. In particular, the manufacturing industry experienced a slowdown due to the sudden disruption in supply and demand. This situation stimulates the manufacturing industry to recover from this current challenging disruption. This study investigates the impact of supply chain integration on business performance through supply chain resilience, supply chain flexibility, and innovation system in Indonesia’s manufacturing companies. Data collection has obtained as many as 470 questionnaires considered valid for further analysis. Data analysis used the partial least square (PLS) technique using smartPLS software version 3.0. The results show that supply chain integration affects innovation system, supply chain flexibility, and supply chain resilience because of its ability to share complete product information and share production planning. Innovation systems and supply chain flexibility enhance supply chain resilience through the ability to deal with sudden changes in customer demand and production problems. Supply chain integration improves business performance through innovation, supply chain flexibility, and supply chain resilience in the COVID-19 era. This research could be the best practice for managers in restoring manufacturing performance quickly. This study also contributes to the current research in supply chain management.

The influence of organizational culture on supply chain integration

A team of employees that strives for the realization of a common goal is what every company needs, and the success of business depends on the way of functioning and thinking of that team. The organizational culture shapes the way employees think, react and behave. The business practice of companies in the Republic of Serbia has shown that the organizational culture oriented to employees, action and challenges is an important determinant of improving all business performance indicators, including the supply chain integration, which is the main topic of analysis within this paper. The dimensions of organizational culture affect internal integration, integration with customers and integration with suppliers, determining the generation of the key goal of supply chain management which refers to the delivery of the right product, at the right place, at the right time and at reasonable costs.

Development of a supply chain risk index for manufacturing supply chains

Purpose

The purpose of this paper is to identify, classify and prioritize supply chain risks faced by Indian micro small and medium manufacturing companies and to develop a comprehensive supply chain risk index.

Design/methodology/approach

Primary data has been collected from 354 Indian micro small and medium enterprises on the different supply chain risks faced by them. An extensive literature review followed by expert's interview has been carried out in order to finalize the supply chain risks. A hybrid methodology consists of AHP and Fuzzy TOPSIS is applied for the data analysis. A sensitivity analysis has been done to check the robustness and consistency of the results.

Findings

Results depict the importance of supply side and financial side risks faced by manufacturing supply chains, thus adding to the ongoing academic debate on the importance of supply chain finance solutions.

Research limitations/implications

Study is limited to the scope of an emerging market. Generalization of results needs more systematic studies around the world in different supply chains.

Practical implications

Supply chain managers can consider the benchmark framed in this study in order to identify the health of their supply chain and to efficiently employ supply chain risk management strategies.

Originality/value

The current study is novel in developing a supply chain risk index using a hybrid AHP-Fuzzy TOPSIS methodology with a comprehensive list of 26 supply chain risks under 5 categories for an MSME supply chain. To the best of the authors’ knowledge, this is the first study incorporating financial risks in the development of a supply chain risk index.

Bayesian networks for supply chain risk, resilience and ripple effect analysis: A literature review

In the broad sense, the Bayesian networks (BN) are probabilistic graphical models that possess unique methodical features to model dependencies in complex networks, such as forward and backward propagation (inference) of disruptions. BNs have transitioned from an emerging topic to a growing research area in supply chain (SC) resilience and risk analysis. As a result, there is an acute need to review existing literature to ascertain recent developments and uncover future areas of research. Despite the increasing number of publications on BNs in the domain of SC uncertainty, an extensive review on their application to SC risk and resilience is lacking. To address this gap, we analyzed research articles published in peer-reviewed academic journals from 2007 to 2019 using network analysis, visualization-based scientometric analysis, and clustering analysis. Through this study, we contribute to literature by discussing the challenges of current research, and, more importantly, identifying and proposing future research directions. The results of our survey show that further debate on the theory and application of BNs to SC resilience and risk management is a significant area of interest for both academics and practitioners. The applications of BNs, and their conjunction with machine learning algorithms to solve big data SC problems relating to uncertainty and risk, are also discussed.

Inhibitors and enablers of supply chain integration across multiple supply chain tiers: evidence from Malawi

Purpose

This paper investigates the inhibitors and enablers of supply chain integration (SCI) across multiple tiers in the supply chains of manufacturing-based small and medium-sized enterprises (SMEs) in Malawi.

Design/methodology/approach

Following a qualitative approach, data were collected through face-to-face interviews across three supply chains, each consisting of a focal manufacturer, a major supplier and a retailer.

Findings

The research identified interpersonal relationships, supplier cost transparency and joint supply chain management (SCM) investments as key enablers of SCI. Concerning the inhibitors of SCI, the study found that a lack of external integration inhibited internal integration by acting as a source of disruption to intra-firm processes and relationships. Further, the research found weaker links between manufacturer–-retailer dyads than in manufacturer–supplier dyads, which constrained the ability to achieve multi-tier supplier–manufacture–retailer integration. The study also revealed that resource and infrastructural deficiencies, a culture of fear and intimidation within and between firms, corruption in sourcing transactions and a lack of inter-firm trust inhibited SCI.

Research limitations/implications

The paper extends earlier evidence that internal integration is a prerequisite for external integration demonstrating that a basic level of external integration is necessary to prevent disruptions to internal integration.

Originality/value

This study is one of the few to go beyond the focal firm perspective and explore the inhibitors and enablers of SCI across multiple supply chain positions, and provides new evidence on the role of external integration in achieving internal integration.

A hybrid multi-criteria decision-making approach to assess the enablers of manufacturing flexibility under fuzzy environment

Purpose

The study aims to assess and prioritise the enablers of manufacturing flexibility by evaluating the degree of environmental uncertainty and manufacturing flexibility in an uncertain environment.

Design/methodology/approach

The study proposes a methodological approach based on fuzzy quality function deployment (FQFD), fuzzy analytical hierarchical process (FAHP) and fuzzy technique for order of preference by similarity to ideal solution (FTOPSIS) to assess and prioritise enablers of manufacturing flexibility in an uncertain environment.

Findings

The study proposes a methodological approach that can facilitate firms to concentrate on preferred enablers and assist them in formulating a strategy to develop manufacturing flexibility. The empirical case study analysis of an Indian auto-air conditioning manufacturing firm was done to illustrate the effectiveness, flexibility and feasibility of the proposed approach.

Research limitations/implications

The proposed approach is limited to manufacturing flexibility. This study does not consider inter-dependencies among environmental uncertainties.

Practical implications

The proposed methodological approach can assist practitioners in the identification and development of the preferred enablers to improve manufacturing flexibility. Thus, practitioners can invest strategically in the right resources to improve manufacturing flexibility.

Originality/value

The study proposes and validates a methodological approach that simultaneously addresses drivers and enablers of manufacturing flexibility; therefore, it aims to fill the gaps of earlier studies that have majorly studied flexibility concept in an isolated way.

Narrowing the Gaps: Assessment of Logistics Firms’ Information Technology Flexibility for Sustainable Growth

In a supply chain management context, the effective management of Information Technology (IT) flexibility has been an issue to be resolved. However, no analytical method that calculates the required and actual level of IT flexibility dimensions has been proposed. This paper aims to provide an analytical tool that measures the required and actual levels of IT flexibility dimensions to provide the best value from a logistics firm’s IT flexibility. To do so, we propose a combined Importance‒Performance Analysis (IPA) and Partial Least Squared Structured Equation Modelling (PLS-SEM) method based on a multidimensional IT flexibility model. By comparing industry-level data with client firm data, our method allows for effective identification of a client logistics company’s multiple IT flexibility gaps and indicates where particular management interventions are required. By proposing importance and performance as measurement scales, our research suggests an analytical tool that managers can utilize to assess IT flexibility and identify any gaps that exist between actual and required flexibility levels. This allows managers to effectively address areas that demand further attention. This approach also leads to an improved understanding of how organisations can extract the best value from their investment in IT flexibility to contribute to sustainable growth.

Confirmation of a measurement model for manufacturing flexibility development practices

Purpose

The study aims to conceptualize and empirically develop an instrument to measure manufacturing flexibility development practices in firms.

Design/methodology/approach

Using a dataset of 315 responses, a series of procedures were used to develop, modify and refine item measures of constructs to enhance their reliability and validity. Further, following a competing model strategy, alternative models were compared to finalize the manufacturing flexibility development practices.

Findings

The study develops 36-item instrument capturing eight distinct constructs that influence manufacturing flexibility development, namely operational improvement practices, supplier integration practices, advanced manufacturing technologies, advanced human resource practices, supplier flexibility, customer integration practices, marketing and manufacturing integration practices and product-process technology integration. The derived factors exhibit an adequate level of consistency, reliability and validity.

Research limitations/implications

Since the external environment is always affected by externalities, tools and technologies used to develop flexibility may also vary over time. Therefore, the developed measurement instrument can be used over the medium term. Further, the statistical generalizability of this study cannot be drawn beyond the scope of this sample.

Practical implications

The derived items measure and their underlying factor structure facilitates practitioners to identify areas that need attention. Practically, practitioners should strive to improve multiple factors that influence manufacturing flexibility to arrive at the full realization of flexibility.

Originality/value

This study is probably the first to develop an instrument for assessing the factors influencing the potential of manufacturing flexibility.

Preventing supplier non-conformance: extending the agency theory perspective

Purpose

The supply chain management literature and agency theory suggest that preventing supplier non-conformance—a supplier's failure to conform to the requirements of the buyer—requires monitoring supplier behavior. However, case studies collected to explore how buyers monitored suppliers revealed an unexpected empirical phenomenon. Some buyers believed they could prevent non-conformance by either trusting their suppliers or relying on a third party, without monitoring their behavior. The purpose of this article is to examine conditions when buyers should monitor supplier behavior to prevent non-conformance.

Design/methodology/approach

This article employs a mixed-method design by formulating an agent-based simulation grounded in the case-study findings and agency theory to reconcile observed unexpected behaviors with scholarly suggestions.

Findings

The simulation results indicate that buyers facing severe consequences from non-conformance should opt to monitor supplier behavior. Sourcing from trusted suppliers should only be reserved for buyers that lack competence and have a small number of carefully selected suppliers. Moreover, buyers facing minor consequences from non-conformance should generally favor sourcing from trusted suppliers over monitoring their behavior. The results also suggest that having a third-party involved in monitoring suppliers is an effective path to preventing non-conformance.

Originality/value

By combining a simulation with qualitative case studies, this article examines whether buyers were making appropriate decisions, thereby offering contributions to theory and practice that would not have been possible using either methodological approach alone.

The design and planning of an integrated supply chain for perishable products under uncertainties

Purpose

This paper aims to design an optimal supply chain network and to develop a suitable distribution planning under uncertainty for perishable product's supply chain. The ultimate goal is to help in making decisions under uncertain environments.

Design/methodology/approach

In this paper, stochastic programming is used under conditions of demand, supply and process uncertainties, and a non-linear mathematical model is developed for perishable product’s supply chain. Authors’ study considers disruptions in transportation routes and also within the facilities and investigates optimal facility location and shipment decisions while minimising the total supply chain cost. A scenario-based approach is used to model these disruptions. The retailer level uncertainty due to demand-supply mismatch is handled by incorporating the newsvendor model into the last echelon of supply chain network. In this paper, two policies are proposed for making decisions under uncertain environments. In the first one, the expected cost of the supply chain is minimised. To also consider the risk behaviour of the decision maker, authors propose the second policy through a conditional value-at-risk approach.

Findings

Authors discuss the model output through various examples that are provided via a case study from the milk industry. The supply chain design and planning of the disruption-free model are different from those of the resilient model.

Practical implications

Authors’ research benefits the perishable products industries which encounter the disruption problems in their transportation routes as well as in the facilities. Authors have demonstrated the research through a real-life case in a milk industry.

Originality/value

The major contribution of authors’ work is the design of the supply chain network under disruption risks by incorporating aspects of product perishability. This work provides insight into areas such as the simultaneous consideration of demand, supply and process uncertainties. The amalgamation of newsvendor model and the approximation of the non-linearity of retailer level cost function especially in the context of supply chain under uncertainty is the first of its kind. We provide a comprehensive statistical study of uncertainties that are present in the supply chain in a unique manner.

Mitigating counterfeit risk in the supply chain: an empirical study

Purpose

The purpose of this paper is to adopt a contingency theory from a quality perspective to develop a model for assessing the impact of counterfeit prevention efforts on supply chain (SC) performance.

Design/methodology/approach

Based on the participation of 140 managers across ten industry sectors, a theoretical model is proposed and structural equation modeling is used to examine the relationships among SC risk management integration, SC counterfeit risk orientation (CRO), SC counterfeit risk mitigation (CRM), SC metric consistency (MC) and SC performance (service and cost benefits).

Findings

Findings suggest that firms with greater SC risk management integration have a stronger orientation toward counterfeit risk, greater maturity in CRM, more consistent SC metrics and better SC performance outcomes. CRO alone was not found to significantly improve SC MC.

Research limitations/implications

Results are based on managerial perceptions of SC counterfeit risk and performance metrics. Survey respondents were predominantly from the same country (the USA).

Practical implications

The paper represents a potential quality management framework for SC risk management, in the context of counterfeiting that includes a contingency perspective.

Originality/value

The study advances knowledge of how firms may address the challenging issue of counterfeiting in the SC. Empirical findings offer a firm-level quality management framework for managerial decision making in the context of counterfeiting.

Leveraging customer benevolence for resilience: a supplier perspective

Purpose

With more than half of customer-experienced disruptions attributed to first-tier suppliers, supplier resilience (SRES) is fundamental to the resilience of the supply chain. However, little is known about the relational aspects that engender SRES, from the purview of the supplier. The purpose of this paper is to examine the explanatory role of suppliers’ relationship commitment dimensions (i.e. affective and continuance), which may foster SRES through customer benevolence. Moreover, the impact of customer benevolence on SRES is examined considering varying levels of industry dynamism.

Design/methodology/approach

Survey data from 207 manufacturing firms are utilized to test the hypotheses taking potential endogeneity issues into consideration.

Findings

Affective and continuance commitment induce customer benevolence, which furthers SRES. Specifically, affective commitment is the most potent approach to induce customer benevolence, while the dampening effect of industry dynamism is more palpable at the higher levels of industry dynamism.

Research limitations/implications

This study did not account for specific disruption types and the contingent effects of power asymmetry.

Practical implications

This study empirically demonstrates that suppliers can leverage customer benevolence via relationship commitment to achieve SRES. However, the efficacy of customer benevolence to engender SRES is limited to environments not characterized by high levels of industry dynamism.

Originality/value

This paper highlights the role of relational mechanisms in achieving resilience from the purview of a supplier using survey data.

Enterprise Resilience Assessment—A Quantitative Approach

Enterprise resilience is a key capacity to guarantee enterprises’ long-term continuity. This paper proposes a quantitative approach to enhance enterprise resilience by selecting optimal preventive actions to be activated to cushion the impact of disruptive events and to improve preparedness capability, one of the pillars of the enterprise resilience capacity. The proposed algorithms combine the dynamic programming approach with attenuation formulas to model real improvements when a combined set of preventive actions is activated for the same disruptive event. A numerical example is presented that shows remarkable reductions in the expected annual cost due to potential disruptive events.

Analysis of supply chain risk in the ceramic industry using the TOPSIS method under a fuzzy environment

Purpose

Risk management has emerged as a critical issue in operating a supply chain effectively in the presence of uncertainties that result from unexpected variations. Assessing and managing supply chain risks are receiving significant attention from practitioners and academics. At present, the ceramic industry in Bangladesh is growing. Thus, managers in the industry need to properly assess supply chain risks for mitigation purposes. This study aims to identify and analyze various supply chain risks occurring in a ceramic factory in Bangladesh.

Design/methodology/approach

A model is proposed based on a fuzzy technique for order preference using similarity to an ideal solution (fuzzy-TOPSIS) for evaluating supply chain risks. For this, 20 supply chain risk factors were identified through an extensive literature review and while consulting with experts from the ceramic factories. Fuzzy-TOPSIS contributed to the analysis and assessment of those risks.

Findings

The results of this research indicate that among the identified 20 supply chain risks, lack of operational quality, lack of material quality and damage to inventory were the major risks for the ceramic sector in Bangladesh.

Research limitations/implications

The impact of supply chain risks was not shown in this study and the risks were considered independent. Therefore, research can be continued to address these two factors.

Practical implications

The outcome of this research is expected to assist industrial managers and practitioners in the ceramic sector in taking proactive action to minimize supply chain risks. A sensitivity analysis was performed to determine the relative stability of the risks.

Originality/value

This study uses survey data to analyze and evaluate the major supply chain risks related to the ceramic sector. An original methodology is provided for identifying and evaluating the major supply chain risks in the ceramic sector of Bangladesh.

Effect of Total Quality Management Practices and JIT Production Practices on Flexibility Performance: Empirical Evidence from International Manufacturing Plants

This paper presents the results of an empirical study investigating the relationship between Total quality management (TQM) practices, Just-in-time (JIT) production practices, and flexibility performance in manufacturing companies. Correlation and regression analysis are applied to analyze the data collected from 280 manufacturing plants in 12 countries including China, Finland, German, Italy, Israel, Japan, Korea, Spain, Sweden, Taiwan, United Kingdom, and Vietnam from 2013 to 2015 in the framework of a High Performance Manufacturing Project. The analytical results confirm the closed linkage between TQM, JIT production practices and flexibility performance. Moreover, this study indicates that the effect of JIT production practices on flexibility performance can be strengthened with a higher level of TQM practices. The main findings of this study suggest that flexibility performance can be built up by implementing both TQM and JIT production practices, and TQM should be regarded as the platform to maximize the effect of JIT production on flexibility performance.