Complex and lean or lean and complex? The role of supply chain complexity in lean production

Research on Lean indicates that its association with performance improvement, although compelling, is not uniformly positive. Prior researchers have posited that plants implementing Lean may become too lean or may only implement selected aspects without fully embracing Lean’s synergistic prescriptions. We explore another potential reason for lower-than-expected performance sometimes associated with Lean: supply chain complexity. Using survey data from 209 manufacturing plants in seven countries across three industry groups, we test two alternative mechanisms by which supply chain complexity may influence performance improvements expected from Lean: moderation and mediation. We find that, while supply chain complexity has very little moderating impact on this relationship, it mediates the relationship between Lean and performance. While the majority of the significant mediating effects are negative, serving as a tax on Lean’s effect on performance, our analysis reveals some positive mediating effects, highlighting the difference between dysfunctional and strategic supply chain complexity. Our results indicate that managers should reduce internal and upstream complexity to improve Lean’s effect on performance. In particular, reducing the number of inputs a plant must manage has the widest and largest effect on realizing Lean’s positive influence on performance. Further, we highlight the importance of reducing dysfunctional supply chain complexity, while developing strategies to accommodate strategic supply chain complexity.

Explaining Firm Performance During the COVID-19 With fsQCA: The Role of Supply Network Complexity, Inventory Turns, and Geographic Dispersion

The COVID-19 pandemic has significantly affected firm performance. As a result, many studies have examined the significance of supply network complexity. Our paper uses the fuzzy set qualitative comparative analysis (fsQCA) method to investigate the causal relationships among the supply network complexity, geographic dispersion, inventory turns, and firm performance. Using a sample of 263 Chinese listed firms, we find that no single factor is necessary to achieve high firm performance during COVID-19 and reveal four paths to produce high performance: operational level driven, supply base complexity driven, and customer base complexity driven with supplier distance, and supply network complexity absence. Furthermore, our findings suggest that supply-based complexity-driven and customer-based complexity-driven can improve firm performance, but not all supply network complexity dimensions can improve firm performance. Hence, firms need to choose the suitable path based on their specific situations.

Cities can benefit from complex supply chains

Supply chain complexity is perceived to exacerbate the supply disruptions or shocks experienced by a city. Here, we calculate two network measures of supply chain complexity based on the relative number-horizontal complexity-and relative strength-vertical complexity-of a city's suppliers. Using a large dataset of more than 1 million annual supply flows to 69 major cities in the United States for 2012-2015, we show that a trade-off pattern between horizontal and vertical complexity tends to characterize the architecture of urban supply networks. This architecture shapes the resistance of cities to supply chain shocks. We find that a city experiences less intense shocks, on average, as supplier relative diversity (horizontal complexity) increases for more technologically sophisticated products, which may serve as a mechanism for buffering cities against supply chain shocks. These results could help cities anticipate and manage their supply chain risks.

Supply chain agility and performance: evidence from a meta-analysis

Purpose

The link between supply chain agility (SCA) and performance has been tested in previous research with different samples and results. The present paper quantitatively analyses and summarises the impact of SCA on performance found in previous empirical papers and determines the influence of several identified moderators.

Design/methodology/approach

Using a meta-analysis approach based on a systematic literature review, a total of 63 empirical papers comprising a sample of 14,469 firms were meta-analysed to consider substantive (type of performance and SCA operationalisation) and extrinsic (economic region and industry) moderators.

Findings

Results confirm a significantly large, positive correlation between SCA and performance. None of the analysed moderators has enabled the identification of any significant differences between the SCA and performance correlations by subgroup. However, high heterogeneity in total variance, both in the full sample and the subgroups by moderator, demands further rigorously reported empirical research on this topic with clearly conceptualised variables and frameworks and the use of validated scales.

Research limitations/implications

Several research gaps and best practice recommendations have been indicated to improve future empirical research on this topic.

Practical implications

Practitioners in different economic regions and industries will find consistent evidence of improvements in performance through SCA.

Originality/value

No meta-analysis has been found in previous research to estimate the value of the correlation between SCA and performance and the influence of moderating variables.

Identifying the pathways through digital transformation to achieve supply chain resilience: an fsQCA approach

The manufacturing industry has placed a greater emphasis on digital transformation, especially under the impact of COVID-19. However, the influence mechanism between digital transformation and supply chain resilience is still a topic of discussion. Resource orchestration theory indicates that a firm not only need to emphasize the investment of resources but also pays attention to the allocation of resources. Therefore, based on the resource orchestration theory, this study divides the digital transformation into digital transformation breadth and digital transformation depth and combines R&D spending (R&D intensity and R&D employee) and contingency factors (firm size) to construct a theoretical path of "digital transformation-supply chain resilience." This research uses fuzzy sets qualitative comparative analysis to explore how to configure the digital transformation to achieve high supply chain resilience based on data from 193 listed manufacturing firms. Using the fsQCA software, it was discovered that there were no necessary conditions for achieving high supply chain resilience; sufficient condition analysis revealed that there are six paths to achieving high supply chain resilience, four of which can be summarized as digital transformation driven and the other two as R&D spending driven. These several approaches highlight the complicated causal relationship between digital transformation and supply chain resilience, as well as give theoretical and practical recommendations for firms looking to implement digital strategies and enhance their supply chains.

An Empirical Study on the Use of Digital Technologies to Achieve Cost-Effectiveness in Healthcare Management

Objectives: Healthcare cost reduction is one of the major challenges of the current era. This study was based on the general system theory-based view to assess the significance of sensing communication technologies and processing actuation technologies in improving healthcare quality, leading to cost reduction. Moreover, the contingent rule of healthcare supply chain management in enhancing the influence of improved quality on healthcare cost reduction was also empirically tested. Methods: The sample of the study comprised 337 middle and senior healthcare managers employed in various government and private hospitals and health institutions in Jakarta, Indonesia. The administrative departments of each hospital and health institution was visited to take their consent to conduct this survey at their clinical and non-clinical departments. The data collected was analyzed using SmartPLS ver. 4 software. Results: Results reveal a significant direct and indirect influence of sensing communication technologies and processing actuation technologies on achieving cost-effectiveness in the healthcare sector, in the presence of perceived quality improvement as a mediator. However, the strength of the associations varied and was based on highly reliable and familiar nature of sensing communication technologies compared to processing actuation technologies which were emerging and gaining popularity in recent years. Conclusion: Considering the healthcare cost as a critical factor based on limited resources in emerging economies, healthcare institutions/centers should use digital technologies to achieve cost-effectiveness for providing healthcare facilities in the industry 4.0 era.

Effects of supply chain disruptions due to COVID-19 on shareholder value

Purpose

The purpose of this research work is to examine the financial effect of supply chain disruptions (SCDs) caused by coronavirus disease 2019 (COVID-19) and how the magnitude of such effects depends on event time and space that may moderate the signaling environment for shareholder behaviors during the pandemic.

Design/methodology/approach

This study analyses a sample of 206 SCD events attributed to COVID-19 made by 145 publicly traded firms headquartered in 21 countries for a period between 2020 and 2021. Change in shareholder value is estimated by employing a multi-country event study, followed by estimating the differential effect of SCDs due to the pandemic by event time and space.

Findings

On average, SCDs due to pandemic decrease shareholder value by −2.16%, which is similar to that of pre-pandemic SCDs (88 events for 2018–2019). This negative market reaction remains unchanged regardless of whether stringency measures of the firm's country become more severe. Supply-side disruptions like shutdowns result in a more negative stock market reaction than demand-side disruptions like price hikes. To shareholder value, firm's upstream or downstream position does not matter, but supply chain complexity serves as a positive signal.

Originality/value

This study provides the first empirical evidence on the financial impact of SCDs induced by COVID-19. Combining with signaling theory and event system theory, this study provides a new boundary condition that explains the impact mechanism of SCDs caused by the pandemic.

Service supply chain resilience: a social-ecological perspective on last-mile delivery operations

Purpose

Considering the last-mile delivery service supply chain as a social-ecological system rather than just a firm-based service system, this research exploit the COVID-19 pandemic disruption to investigate how the supply chain develops resilience from a viewpoint that integrates a social-ecological perspective with the traditional engineering one.

Design/methodology/approach

This research adopt a multi-case study approach using qualitative data collected via semi-structured interviews with executive-level managers from nine leading UK last-mile delivery companies. Data analysis is guided by a research framework which is developed by combining the social-ecological perspective with the structure–conduct–performance paradigm. This framework aids the investigation of the impacts of external challenges on companies' resilience strategies and practices, as well as performance, in response to disruptions.

Findings

The research identifies three distinct pathways to resilience development: stabilization, focussing on bouncing back to the original normal; adaptation, involving evolutionary changes to a new normal; transformation, involving revolutionary changes in pursuit of a new normal-plus. Three strategic orientations are identified as operating across these pathways: people orientation, digital orientation, and learning orientation.

Originality/value

In contrast to the manufacturing supply chain focus of most current research, this research concentrates on the service supply chain, investigating its resilience with a social-ecological perspective alongside the traditional engineering one.

Untangling the complexity generating material delivery “schedule instability”: insights from automotive OEMs

Purpose

Changes frequently made to material delivery schedules (MDSs) accumulate upstream in the supply chain (SC), causing a bullwhip effect. This article seeks to elucidate how dynamic complexity generates MDS instability at OEMs in the automotive industry.

Design/methodology/approach

An exploratory multiple-case study methodology involved in-depth semistructured interviews with informants at three automotive original equipment manufacturers (OEMs).

Findings

Dynamic complexity destabilizes MDSs primarily via internal horizontal interactions between product and process complexities and demand and SC complexities. A network of complexity interactions causes and moderates such instability through complexity absorption and generation and complexity importation and exportation.

Research limitations/implications

The multiple-case study contributes to empirical knowledge about the dynamics of MDS instability. Deductive research to validate the identified relationships remains for Future research.

Practical implications

In revealing antecedents of complexity’s effect on MDS instability, the findings imply the need to develop strategies, programs, and policies dedicated to improving capacity scalability, supplier flexibility, and the flexibility of material order fulfillment.

Originality/value

Building on complexity literature, the authors operationalize complexity transfer and develop a framework for analyzing dynamic complexity in SCs, focusing on complexity interactions. The identification and categorization of interactions provide a granular view of the dynamic complexity that generates MDS instability. The identified and proposed importance of readiness of the SC to absorb complexity challenges the literature focus on external factors for explaining complexity outcomes. The results can be used to operationalize such dynamic interactions by introducing new variables and networks of relationships. Moreover, the work showcases how a complexity perspective could be used to discern the root causes of a complex phenomenon driven by non-linear relationships.

Boosting Sustainable Operations with Sustainable Supply Chain Modeling: A Case of Organizational Culture and Normative Commitment

The importance of sustainability in supply chain management is growing worldwide. It is possible to find reasons for this using various phenomena that negatively affect humanity, e.g., climate change, scarce materials, supply disruptions, and complex fossil fuel dependency. Because of that, is extremely important to constantly look for new ways to systematically increase sustainability in enterprises and their logistics and supply chain processes by considering different stakeholders and influential factors. Therefore, this paper explores how different types of organizational culture and normative commitment impact sustainability and each other in business logistics and supply chains and develops a conceptual model to manage this challenge. Gaining new insights is valuable especially for managers to obtain better information on how to improve sustainability not just by integrating green technologies but mainly by changing culture, attitude, and perception in their enterprises. The research is focused on employees from global logistics or related branches in micro, small, medium, and large enterprises with the primary activity mostly related to manufacturing, transport, and storage. The findings are based on the questionnaire which was sent directly to 1576 employees from 528 enterprises. A total of 516 employees from enterprises that are mostly located in 34 countries responded to requests for participation. The results reveal statistically significant positive and negative impacts, e.g., clan culture has a positive statistically significant impact on the sustainable development of supply chains. Most of the connections to the eighth Sustainable Development Goal by the United Nations (decent work and economic growth) were also found, which was the enterprise's highest priority with a share of 52.99%. A contribution to the theory development is gained using the developed model that considers both positive and negative statistically significant impacts studied.

Direct and mediation effect of supply chain complexity drivers on supply chain performance: an empirical evidence of organizational complexity theory

Purpose

In today's globalized business environment, growing supply chain complexity (SCC) is arguably a major threat to the firm's business continuity with an adverse impact on the firm's competitive advantage and business performance. Researchers, though, investigated the impact of SCC drivers on a firm's operational performance, but the key question “Which supply chain complexity drivers severely impact the supply chain performance (SCP)?” remains largely unanswered from empirical research. The present study aims to decompose the SCC into four major constituting sub-categories (upstream, operational, downstream and external) to explore the causal impact of SCC drivers on SCP in direct and mediated manner.

Design/methodology/approach

The indicators applied for measuring constructs in the “Measurement model” are obtained from existing literature to increase the validity and reliability of the model. First, a pilot survey involving 25 SC managers from various manufacturing firms was conducted for indicator refinement and content validation. Second, the large-scale response data were collected through extensive surveys. This research explores the causality by testing the hypothesis applying Structural Equation Modeling (SEM) based on the responses received from 246 firms.

Findings

The study investigates the impact of SCC drivers on SCP through direct and mediation effect. The results indicate that upstream and operational SCC drivers play a mediating role in managing SCP. The findings reveal that upstream and operational SCC drivers adversely impact the SCP. Furthermore, the impact of downstream complexity on SCP is moderated through operational complexity drivers. The result explains the theoretical relation among SCC drivers supported by empirical validity.

Practical implications

The outcome offers practical relevance to supply chain (SC) managers in SCC and SCP management. Knowing the effect of SCC drivers among themselves and on SCP will facilitate the SC managers in devising the right strategies. The study provides a framework for prioritizing the resource in addressing the SCC issues among many.

Originality/value

The study addresses the apparent gap in the literature by modeling the impact of SCC drivers on SCP, which remained largely unexplored. First, it contributes to developing complex relationships among SCC drivers. Second, the direct and mediated causal effect of the SCC drivers individually and combinedly on SCP are explicated.

A Systematic Literature Review of Blockchain-Enabled Supply Chain Traceability Implementations

In recent years, traceability systems have been developed as practical tools for improving supply chain (SC) transparency and visibility, especially in health and safety-sensitive sectors like food and pharmaceuticals. Blockchain-related SC traceability research has received significant attention during the last several years, and arguably blockchain is currently the most promising technology for providing traceability-related services in SC networks. This paper provides a systematic literature review of the various technical implementation aspects of blockchain-enabled SC traceability systems. We apply different drivers for classifying the selected literature, such as (a) the various domains of the available blockchain-enabled SC traceability systems and relevant methodologies applied; (b) the implementation maturity of these traceability systems along with technical implementation details; and (c) the sustainability perspective (economic, environmental, social) prevalent to these implementations. We provide key takeaways regarding the open issues and challenges of current blockchain traceability implementations and fruitful future research areas. Despite the significant volume and plethora of blockchain-enabled SC traceability systems, academia has so far focused on unstructured experimentation of blockchain-associated SC traceability solutions, and there is a clear need for developing and testing real-life traceability solutions, especially taking into account feasibility and cost-related SC aspects.