Identification of barriers to synergistic implementation of TQM-SCM

Purpose

The study aims at finding out major barriers for synergistic adoption of TQM-SCM in the medium- and large-scale manufacturing organizations in India. All these barriers create hurdles for the organizations as well as supply chain partners in improving their business performance. The study is a blend of theoretical and practical frameworks, which will focus on key barriers leading to interrupt the successful synergistic implementation of TQM-SCM in manufacturing organization.

Design/methodology/approach

Firstly, survey of 116 Indian organizations has been carried out to identify barriers that hinder successful implementation of TQM-SCM. Afterward, VIKOR approach was proposed to rank the major barriers of TQM-SCM implementation in Indian manufacturing organizations.

Findings

Identification of barriers to synergistic implementation of TQM-SCM in the manufacturing industry of India, ranking of these barriers in terms of their severity.

Originality/value

The adoption of TQM-SCM on synergistic basis is still in its early stages in India. To the authors’ knowledge, this is the first study that is designed to prioritize barriers responsible for hindering successful synergistic implementation of (TQM-SCM) in Indian manufacturing industry. Further, the results of the study will be helpful for managers in order to prepare action plans to overcome the hurdles to TQM-SCM implementation.

The effects of trust and distrust on ICT-enabled information sharing in supply chains

Purpose

Drawing on transaction cost economics (TCE) and social exchange theory (SET), the purpose of this paper is to explain why and how external environment, governance structures and interpersonal relationships influence information and communication technology (ICT)-enabled information sharing in supply chains (SCs) of small- and medium-sized enterprises (SMEs) from developing economies.

Design/methodology/approach

The authors adopt a theory-building approach using a multiple case study design, including four SMEs operating in SCs from two developing economies (i.e. Republic of North Macedonia and People’s Republic of China), in which the authors conduct both within-case and cross-case analyses.

Findings

Social bonds (known as vrski in Macedonian and guanxi in Chinese) were found to govern buyer–supplier exchanges by supporting the establishment of personal trust and the reduction of distrust. These social bonds compensate for the institutional deficiencies in developing economies and thus encourage ICT-enabled information sharing by SMEs in their SCs.

Research limitations/implications

By applying the theoretical perspectives of TCE and SET to the cross-case analysis, the authors develop nine propositions to explain ICT-enabled information sharing and its interdependencies with external environment, governance structures and interpersonal relationships in developing economies. Further research is recommended to refine and test the generalizability of the theoretical model.

Practical implications

Firms have to develop and nurture social bonds with their suppliers from developing economies to reduce risks related to the environmental uncertainty and institutional voids. This can increase trust and decrease distrust associated with ICT-enabled information sharing.

Originality/value

The study examines why and how external environment (environmental uncertainty and institutional environment), social bonds (vrski and guanxi) and interpersonal mechanisms (trust and distrust) influence ICT-enabled information sharing of SMEs operating in developing economies.

Logistics Innovation in China: The Lens of Chinese Daoism

Innovation is vital for the logistics industry. This paper develops a Daoism-based conceptual model for logistics innovation in China. It identifies research gaps in this area and provides directions for future research. Following a content-based literature review methodology, 45 studies were selected. We identified five research themes: interpretation of logistics innovation; Chinese institutional environment for logistics innovation; innovation generation; innovation adoption; and innovation capability. We integrate the process view and outcome view of logistics innovation and propose that logistics capability, as an innovation outcome, is reflected and measured by innovation generation and adoption. This study is probably one of the first conceptual development papers on logistics innovation in China, providing a model for innovation within this context. It provides new avenues of research in this emerging, albeit important, area of research. Our conceptual framework utilizes Chinese Daoism philosophical thinking to provide a new lens for logistics innovation that is sensitive to the cultural environment.

The effects of risk and reward sharing on quality performance

Purpose

Firms face critical challenges in managing product quality in a global supply chain. In many cases, these challenges could be regarded as an agency problem which is a result of the goal conflict between the supply chain members. To address such agency problem, the purpose of this paper is twofold: first, to explain how risk and reward sharing practices contribute to firms’ quality performance in the supply chain; and second, to identify the drivers of applying risk and reward sharing.

Design/methodology/approach

The hypothesised model, based on agency theory, is empirically verified by original survey data of 200 Chinese manufacturing companies using the structural equations modelling approach in a context of product recall.

Findings

Supplier involvement and task programmability are two significant antecedents of risk and reward sharing. Further, the paper shows that risk and reward sharing have a positive effect on quality performance, however, in terms of contribution to quality performance, risk sharing and reward sharing may be substitution practices.

Practical implications

This research explains how managers could embrace better preparedness for risk and reward sharing in their supply chains. It is also suggested that although risk and reward sharing are seen as efficient means to improve quality performance, such practices should not be treated as a bundle.

Originality/value

Building on supply partnership literature, this paper contributes to agency theory by providing a solution to the agency problem, i.e., risk and reward sharing and adding to the limited understanding of the antecedents of risk and reward sharing and examining the effects of risk and reward sharing on quality performance.

Disruption causes and disruption management in supply chains with Chinese suppliers

Purpose

The purpose of this paper is to identify and rank supply chain disruption causes for Western buying firms in the Chinese market; to identify supplier-relationship-specific mitigation strategies to avoid and resist such disruptions; and to develop and propose a framework of relational supply chain disruption management with Chinese suppliers.

Design/methodology/approach

Two group exercises with 42 representatives from Western manufacturing buying firms and nine in-depth interviews were conducted. The group exercises applied the nominal group technique.

Findings

The authors identified and ranked 22 disruption causes in China for Western buying firms. Evaluating the five most urgent causes, 43 mitigation strategies could be identified that build on implementing strategic relationships with Chinese suppliers. A framework of relational supply chain disruption management for Western buying firms was developed with six propositions on primary constructs, mediators, and moderators, highlighting guanxi as a fundamental construct of relations within the Chinese culture.

Research limitations/implications

The findings contribute to theory development at the intersection of risk management and culture. Quantitative testing of the proposed relationships in the framework is needed to derive more reliable conclusions.

Practical implications

The study depicts how cultural differences between Chinese suppliers and Western buyers influence relational supply chain disruption management strategies. Using the study findings, managers of Western buying firms are informed regarding the most pressing disruption causes in the Chinese market and the value and strategic use of Chinese-supplier relationships.

Originality/value

The study provides a valuable contribution to the scant body of literature on disruption management in supply chains with Chinese suppliers. It contributes to our understanding of a successful risk management in the presence of cultural differences.

The dark side of global sourcing: a systematic literature review and research agenda

Purpose

The purpose of this paper is to present a systematic review of the literature concerning the negative aspects of global sourcing (GS). It complements prior research on the positive aspects of GS, advances theoretical understanding of the phenomenon, and suggests an agenda for future research.

Design/methodology/approach

The sourcing, international business and supply chain management literature is systematically reviewed and findings from 83 previous studies are investigated.

Findings

Research on the downsides of GS has intensified over the last decade, but the related knowledge has been very fragmented and oftentimes latent. This literature review extracts knowledge around 28 antecedents to GS downsides from the literature and illustrates their potential harmful effects along operational and financial performance dimensions. Findings suggest that future research should focus more on the effects of decision-making biases and the effects of firm-internal barriers. The dynamic and hidden costs of GS should also be scrutinized in more depth.

Originality/value

This study is the first systematic literature review of the downsides of GS. It facilitates a more balanced and nuanced picture of GS to help managers make better-informed GS decisions. The review also offers a holistic research framework that opens up avenues for much-needed research into the “dark side” of GS.

Theory development in China-based supply chain management research

Purpose

Although well established in North America and Europe, the study of supply chain management (SCM) is still at a relatively early stage in its development in China. The transformation and rapid growth of the Chinese economy has, nevertheless, created major supply chain challenges for the country making SCM a very fertile area of business research. In Western countries, research on SCM is now mature and underpinned by a solid body of theory. The purpose of this paper is to examine the extent to which research on SCM in China has also developed a theoretical basis.

Design/methodology/approach

The research involved a systematic review of 150 papers published in 18 journals in the fields of SCM, logistics, operations management and marketing during the period 2004-2014. A three-step process was adopted to select appropriate journals, identify relevant articles and classify them in terms of their theoretical content.

Findings

The study has confirmed that, because of its unique economic, political and cultural setting, supply chain development in China has presented new research challenges. Many examples were found of researchers conducting quasi-experiments to test the applicability of established theories to Chinese supply chains while others have tried to develop new ones that are more closely aligned with the Chinese economy and management practices. Researchers have exhibited a heavy reliance on existing theories, with relatively few attempting to customise them to the Chinese context or to construct new ones.

Research limitations/implications

Given the broad scope of SCM, it is possible that the journal and paper selection processes have accidentally screened out relevant papers. The total sample of papers is, nevertheless, large for an explorative study of this type and should, therefore, give an overall impression of the level of theory development in Chinese SCM research.

Practical implications

This study provides a general framework within which to assess the application and development of theories in the Chinese SCM context. It is principally concerned with three components: the SCM phenomena studied, the Chinese business environment and the theoretical contribution of the research. The paper is targeted more at an academic audience than practitioners, though provides an overview of the research so far undertaken on SCM in China that should be of wider interest.

Originality/value

This study is the first of its kind to review China-based SCM research systematically from the perspective of theory development. It should support the evolution of SCM theory not only in China but also more generally.

Identifying and managing supply quality risk

Purpose

The purpose of this paper is to provide a framework for identifying and managing supply quality risk (SQR).

Design/methodology/approach

The research method began with a literature study to form a grounded model of how organizations identify and perceive SQR and associate various supplier quality management practices (SQMPs) with SQR sources. The second phase consisted of structured interviews at three companies in the food machinery industry in order to refine these concepts and examine causal relationships.

Findings

The findings from this study indicate that firms may be more likely to implement integrative supply chain practices when supplier or component sources of SQR are considered to be a significant threat. Conversely, market sources of SQR were generally not perceived as being significant, and therefore do not warrant as much direct intervention in their management.

Research limitations/implications

Most previous studies on supply chain risk focus on delivery disruptions. However, there is a lack of knowledge on identifying, assessing, and managing supply risk associated with quality. By addressing these issues and outlining future research directions the authors help provide a starting point for contributing to this line of study in supply risk theory and practice.

Practical implications

The framework developed in this paper can aid supply chain professionals in understanding what constitutes SQR and providing insight to approaches for managing this form of supply risk.

Originality/value

This is the first empirical study that the authors are aware of that links various sources of SQR to specific SQMPs.

Supplier development for sustainability: contextual barriers in global supply chains

Purpose

– The purpose of this paper is to explore contextual barriers to supplier development for sustainability (SDS) in global supply chains and managerial remedies to mitigate such barriers.

Design/methodology/approach

– A dyadic case study design was adopted with a Western European buyer and six of its Chinese suppliers. The database consists of 41 interviews and 81 documents.

Findings

– Contextual barriers to SDS in global supply chains derive from complexities in the sustainability concept, socio-economic differences, spatial and linguistic distance, as well as cultural differences between buyers and suppliers. Partial remedies include effective joint communications, an open organizational culture, and the fostering of cross-contextual understanding.

Research limitations/implications

– The findings contribute to theory development at the intersection of sustainable and global supply chain management research. They help to explain why scarce sustainability-related progress in global supply chains has occurred in recent years.

Practical implications

– The identified barriers facilitate managerial decision making that will expedite SDS progress in global contexts.

Social implications

– By diffusing knowledge regarding available remedies, the study contributes to improving SDS effectiveness, thereby fostering sustainability capabilities and performance of suppliers.

Originality/value

– This research highlights the criticality of contextual barriers to SDS. The barrier effects that stem from differing real-world conceptions of sustainability may inform future sustainable supply chain management research within and beyond SDS.