Adopt Supply Chain Research Articles

Exploring the Drivers, Challenges, and Opportunities of Supply Chain Technology Adoption for Small and Medium Enterprises (SMEs) in Malaysia

Small and Medium Enterprises (SMEs) have a crucial impact on the Malaysian economy, making major contributions to the functioning of the supply chain. Integrating supply chain technology has become a crucial element in enhancing the efficiency and competitiveness of SMEs in Malaysia. During recent years many developing and developed countries have witnessed the expansion of markets and supply chain networks; in the progress of these market and supply systems SMEs find various complexities when they are implementing or improving the technology integration of their supply chain. The current body of literature often addresses the adoption of technology in a general manner or within larger organizations, resulting in a significant gap in study about the specific circumstances and requirements of small and medium-sized enterprises (SMEs). This study employs a rigorous methodology that analyzes relevant papers to examine the drivers, challenges, and opportunities for adopting supply chain technology among SMEs in Malaysia. By implementing supply chain technology, Malaysian SMEs can increase their performance in many areas of key performance indicators. This includes improving efficiency, optimizing inventory management, achieving cost savings, enhancing customer service, and increasing market competitiveness. It is believed that the findings of the study can be useful for managers of SMEs, policymakers, and interested stakeholders. This will enable SMEs to navigate the challenges of adopting technology more effectively and enhance global competitiveness.

Examine the enablers of generative artificial intelligence adoption in supply chain: a mixed method study

ABSTRACT Generative Artificial Intelligence (Gen-AI) is a burgeoning subfield of artificial intelligence that focuses on creating new content which is poised to revolutionise different industries by 2028. This study aims first to identify key enablers for the successful integration of Gen-AI into the supply chain with the help of Delphi and AHP techniques. Then, we screened these enablers categories and identified seven key enabler categories using the Delphi method. We computed the weights of those categories and ranked them on the basis of their weights with Ethical and Fair AI Practices and Public Trust and Societal Impact among the most significant. Second, this study categorised the tweet into positive, neutral, and negative sentiments using sentiment analysis and identified fifteen topics from secondary data. The research concludes with actionable strategies for practitioners and outlines the significance of ethical and trust-related enablers in the adoption of Gen-AI in the supply chain.

Unearthing the factors of big data analytics (BDA) adoption in supply chain management (SCM)

Technology has revolutionized business operations around the world. There is an ever-increasing trend to digitize business operations around the world. It is not uncommon to see the application of Big Data Analytics (BDA) throughout a vast range of industries and organizations in today's extremely competitive world. However, BDA adoption in supply chain (SC) is less accepted and research in this area remains at its infancy. BDA is extremely useful throughout supply chain functions like manufacturing, distribution, procurement, and marketing. However, a sizable portion of sectors continues to hold divergent opinions regarding big data's alleged benefits. Moreover, there is not a lot of empirical studies that have been published that addresses the adoption of such a tool or better yet, that investigates what factors affect the decision to adopt BDA in supply chain management (SCM). This study aims to develop and extend technology acceptance model (TAM) that considers the critical factors that may affect BDA adoption in SCM by critically analyzing the existing literature. Upon reviewing the literature, it became evident that the main categories of factors that have been thoroughly examined and recognized to be crucial in comprehending BDA adoption and acceptability in SCM are the organizational- and individual-related factors, such as top management and computer self-efficacy.

Mapping the risks in technology integration for sustainable outcomes

PurposeTechnology uptake in supply chains frequently encounters challenges when immediate, tangible benefits are not evident. Therefore, this article's central objective is to pinpoint the risks affecting the integration of supply chain technologies for enduring outcomes. Subsequently, these risks will be organized into a hierarchical structure, facilitating a clearer comprehension of their direct and indirect interconnections.Design/methodology/approachA combined TISM and quantitative approach has been used to build the hierarchal structure and to validate the direct, and indirect relationship among risks adopting supply chain technologies. A total of 41 respondents participated in the TISM survey, which resulted in creating a level hierarchical structure. Further, 233 responses are used for the quantitative study using SEM to validate the model obtained from TISM.FindingsThe study's findings indicated the social risks come out with the highest driving power. This includes the fear of job displacement, community disparity and change in the work culture of an organization. At the same time, technological risks can cause system integration, scalability issues, obsolesce compatibility issues, system failures and supply chain sustainability issues.Originality/valueThe novelty of the study can be found in the developed framework and its subsequent confirmation via quantitative evaluation. TISM provides the theoretical foundation, while a quantitative investigation is carried out to verify this theory.

A TOE-DCV approach to green supply chain adoption for sustainable operations in the semiconductor industry

Semiconductor industry plays a critical role for the global economy. Semiconductor industry provides various necessary technologies such as IoT, AI, modern fabrication technologies and so on to various industries including automotive industry, electronic and communication industry, healthcare industry, construction and building industry, space industry, and so on. However, semiconductor supply chain experiences various supply chain related risks and challenges because of its procedural complexities, global supply chain integrations, government policy and regulations, competitiveness, technological complexities, and so on. Not many studies available which investigated the risk, resilience, and complexities regarding green supply chain adoption by semiconductor industry. In this context, the objective of this study is to examine the risks, resilience, and complexities for managing the green supply chain adoption for higher sustainability in the semiconductor industry. Utilizing the TOE framework (Technology-Organization-Environment) and DCV (Dynamic Capability View), we developed a research model to achieve this purpose. Subsequently, this model was validated through structural equation modelling, involving 356 respondents affiliated with the semiconductor industry. This study highlights that technological risk aspects comprising of technological turbulence and risk, compatibility and complexity, organizational dynamic capabilities, and resilience along with appropriate policy and regulations could help successful adoption of green supply chain management in the semiconductor industry.

Role of supply chain management in improving competitive advantage of Indonesian small and medium enterprises

Global competition has forced companies, including small and medium enterprises (SMEs), to improve their competitive advantage. Supply chain management practices are the ways to improve the competitive advantage, particularly in the global competition context. However, there is still doubt SMEs can compete globally, considering they face limited resources, skilled workforce, and business networks. Therefore, this study aims to examine the influence of supply chain management practices, covering cross-functional integration, partnership, responsiveness, and resilience. Moreover, this study has examined which practices dominate in improving competitive advantage. The quantitative study involved 445 SMEs located in East Java, Indonesia. The respondents are supervisors or higher levels and work in departments related to supply chain management, as they can provide the relevant information and possess complete knowledge of management practices. The data were collected via a questionnaire designed with a five-point Likert scale. The responses were analyzed using SmartPLS software 4.0. The results show that cross-function integration improves supply chain partnership, responsiveness, and resilience (β = 0.705, 0.382, 0.324; t-value = 25.177, 6.697, 5.783). Supply chain partnerships affect supply chain responsiveness, resilience, and competitive advantage (β = 0.327, 0.257, 0.249; t-value = 5.933, 4.536, 5.651). Moreover, supply chain responsiveness improves supply chain resilience and competitive advantage (β = 0.285, 0.106; t-value = 5.690, 2.099). Supply chain resilience improves competitive advantage (β = 0.435 and t-value = 8.987). SMEs can enhance their competitive advantage by integrating their internal cross-functional integration and adopting supply chain partnership, responsiveness, and resilience. Acknowledgments The authors would like to thank DIKTI 2023 and Research and Community Outreach Petra Christian University for providing the grant to fund this research.

Determinants of Blockchain Technology Adoption in Agricultural Supply Chain

Blockchain technology adoption in agriculture can bring a win-win situation for all stakeholders in supply chain, which aids in the security of transactions and information in both forward and backward linkages in agricultural supply chain. Furthermore, blockchain platform benefits producers by enhancing their reputation, increasing their competitiveness and reducing fraud by eliminating undesirable practices in the supply chain. This research paper aims to analyze the determinants of blockchain technology adoption in agricultural supply chain. Grey relational analysis is employed to identify the determinant factors of blockchain technology adoption in the supply chain. The factors for blockchain technology adoption in supply chain are identified based on the literature review collected and focus group discussion with experts. Experts are insisted to rate the factors based on the five point likert scale. The findings revealed that data transparency, traceability, interoperability, data immutability and high value pricing, product type, organization trust, and government support can influence the blockchain adoption in supply chain. The findings conclude that priorities must be given to those influential factors which will help the organizational stakeholders in formulating suitable strategy for effectively implementing blockchain technology in the agricultural supply chain.. KEYWORDS :Blockchain technology, Adoption, Factors, Agricultural supply chain, Grey relational analysis.

How to Complete Supply Chain Integration and Improve Supply Chain Performance Through Relationship Governance in the Digital Age

In the process of manufacturing supply chain development, because appropriate governance mechanisms are lacking, manufacturing supply chain stability, integration and other aspects face many challenges. Such as opportunism, “free riding” and data leakage affect supply chain development. Thus, many manufacturing firms are adopting supply chain relationship governance (SCRG) as a strategic to enhance performance. Using data collected from a survey of 295 manufacturing firms, this paper confirms the influence of SCRG on supply chain performance (SCP). The mediating effect of supply chain integration (SCI) and the moderating effect of digital capabilities (DCs) are explored. The results show that SCRG has a beneficial effect on SCP. SCI plays a partial mediating role in SCRG and SCP. DCs positively moderate the relationship between SCRG and SCI. This study is one of the first to explore the role of DCs in the relationship between supply chain partners and the impact on performance. It provides fresh perspectives and real-world evidence for determining the importance of SCRG strategies.

Analyzing the barriers to resilience supply chain adoption in the food industry using hybrid interval-valued fermatean fuzzy PROMETHEE-II model

The resilient food supply chain (RFSC) has been identified as an effective model for mitigating food supply chain (FSC) risks. However, there exist many barriers impacting the implementation of the RFSC. Further, previous studies seldom utilize integrated decision models for identifying and ranking the barriers to implementing RFSC within uncertain environments. Thus, the study establishes an interval-valued Fermatean fuzzy (IVFF) decision framework to identify and rank these barriers. The framework is classified into four stages. First, to model the interaction between preference information, we introduce the IVFF-prioritized weighted average (PWA) operator to collect this information. Then, an integrated IVFF-CRITIC method is proposed to calculate the barrier weights considering their inter-correlation relationships. Next, the IVFF-PWA operator and IVFF-CRITIC method are incorporated into the PROMETHEE-II model to rank the barrier levels of alternative participation in the FSC. Further, a case study about analyzing implementation barriers to RFSC is employed to test the effectiveness and practicality of the presented framework. The result shows that the participation food processing company (priority: 0.161) has the highest barrier level. The findings of this article may offer decision support to stakeholders for mitigating the barriers to implementing a resilient supply chain in the food industry.

Exploring the dynamics of bigdata adoption in the Indian food industry with fuzzy analytical hierarchical process

PurposeThe main aim of this study is to identify and prioritize the factors that influence the adoption of big data analytics (BDA) within the supply chain (SC) of the food industry in India.Design/methodology/approachThe study is carried out in two distinct phases. In the first phase, barriers hindering BDA adoption in the Indian food industry are identified. Subsequently, the second phase rates/prioritizes these barriers using multicriteria methodologies such as the “analytical hierarchical process” (AHP) and the “fuzzy analytical hierarchical process” (FAHP). Fifteen barriers have been identified, collectively influencing the BDA adoption in the SC of the Indian food industry.FindingsThe findings suggest that the lack of data security, availability of skilled IT professionals, and uncertainty about return on investments (ROI) are the top three apprehensions of the consultants and managers regarding the BDA adoption in the Indian food industry SC.Research limitations/implicationsThis research has identified several reasons for the adoption of bigdata analytics in the supply chain management of foods in India. This study has also highlighted that big data analytics applications need specific skillsets, and there is a shortage of critical skills in this industry. Therefore, the technical skills of the employees need to be enhanced by their organizations. Also, utilizing similar services offered by other external agencies could help organizations potentially save time and resources for their in-house teams with a faster turnaround.Originality/valueThe present study will provide vital information to companies regarding roadblocks in BDA adoption in the Indian food industry SC and motivate academicians to explore this area further.

Integrated knowledge management in the supply chain: Assessment of knowledge adoption solutions through a comprehensive CoCoSo method under uncertainty

The natural dispersion of supply chain (SC) elements and the distribution of knowledge within these elements have necessitated an integrated knowledge management (KM) process in the SC. The use of KM poses many challenges for the members of the SC, and the key to the survival of the SC lies in identifying and solving these challenges. For this reason, this paper aims to appraise the challenges of knowledge adoption in the steel SC and proposes solutions to address these challenges. To determine the significance of challenges in the SC and rank the effective knowledge adoption solutions to address these challenges, a new method called Comprehensive CoCoSo (CoCoCoSo) is introduced based on the CoCoSo method. This method consists of three parts: weighting the challenges, weighting the experts, and ranking the solutions, respectively. In the first part, a new process for weighting the challenges based on CoCoSo is presented; in the second part, the CoCoSo method is enhanced by the ideal average concept for weighting the experts, and finally, a new prescription of CoCoSo is introduced in the ranking part of the knowledge adoption solutions. Also, type-2 fuzzy sets (T2FSs) are used to consider the uncertainty in experts' opinions. T2FSs are much stronger compared to classical fuzzy sets because they have fuzzy membership degrees and prepare more degrees of freedom to consider uncertainty. Then, the challenges in the steel SC are determined using experts' opinions, and then the importance of these challenges is assessed. Furthermore, solutions to face these challenges are outlined, and then using the CoCoCoSo method, the efficiency of solutions to solve the challenges is evaluated and ranked according to their efficiency. Among the proposed solutions, affirmative leadership for KM adoption in SC and creating reliable teamwork have been identified as the most effective solutions. Also, sensitivity analysis shows that the proposed method is sensitive to the weight of the challenges. Finally, the validity of the proposed method has been confirmed by comparing it with well-known methods in the literature. Additionally, using the different degree index, the superiority of the proposed method over well-known methods in the literature has been determined.

Critical Role of Coopetition Among Supply Chains for Blockchain Adoption: Review of Reviews and Mixed-Method Analysis

The major purpose of this study is to investigate the role of coopetition among supply chains in blockchain adoption leading to sustainability in supply chains. This research uses a three-step process. First, a review of reviews is conducted to search the variables that would positively influence adoption of blockchain in supply chain. In the second step, total interpretive structural modeling (TISM) was utilized to understand the relationships among the enablers. Following the qualitative phase, an empirical study was conducted to test the hypotheses related to the mediating role of coopetition. Review of reviews identified 17 variables that can positively influence blockchain adoption in supply chain. The findings of TISM model revealed the hierarchical relationship among the enablers of blockchain adoption for supply chain management based on their relative importance. The results of the SEM-based study indicated that ‘coopetition’ plays a mediating role between the driver and dependent variables leading to sustainable supply chain. The research offers practical insights to integrate blockchain application in the supply chains leading to better supply chain transparency and ultimately sustainability. The research would support managers to develop suitable strategies to strengthen mechanism to enhance coopetition among competing supply chain to realize the benefits of emerging technologies. The originality of the study lies in the study of variables that influence blockchain adoption in supply chain using a mixed-method approach. Further, the research establishes the critical role of coopetition in achieving the benefits of blockchain adoption.

TEDARİK ZİNCİRİ STRATEJİLERİNİN SWOT ANALİZİ İLE BELİRLENMESİ: BİR UYGULAMA

A strategy is a plan of action designed to achieve a long-term or general purpose. It is a military term, and its origin goes back to Sun Tzu. Its use in the modern sense coincides with the 1980s. In the increasingly competitive environment in recent years, businesses need to make a difference in the market, increase their profitability, closely follow technological developments, etc. They attach importance to developing their strategies in the corporate sense and in the field of business management strategies. However, it has been determined that enterprises cannot develop in the field of supply chain management strategies, which is one of their functional strategies, especially in the researches. Determining supply chain strategies will enable them to compete in the market, especially in terms of reducing costs, increasing customer experience, adopting innovative approaches or quality. Businesses may choose to compete in only one of these factors, or they may adopt several factors. In this study, a supply chain strategy determination study was carried out in a company that has a very important position in the wood-based panel industry sector and has adopted supply chain management, but where no strategic decisions or projects have been created. SWOT analysis was used in terms of company and supply chain process. Ten (10) supply chain strategies were determined.

Proactiveness, knowledge management capability and innovation ambidexterity: an empirical examination of digital supply chain adoption

PurposeThis paper has predicted digital supply chain (DSC) adoption through the role of firms' proactiveness, knowledge management capability (KMC), innovation ambidexterity and the moderating effect of environmental dynamism.Design/methodology/approachSurvey data from 354 managers in manufacturing and service firms were analysed using the PLS-SEM model.FindingsThe present study's findings ascertained the significant role of innovation ambidexterity in influencing DSC adoption, given that innovation exploration's direct and mediating impacts were greater than innovation exploitation's. Firms' proactiveness had the highest path coefficient value among the endogenous variables as an indispensable source for firms to successfully embrace KMC and innovation ambidexterity. The role of firm size on DSC adoption was also significant, revealing that SMEs were more likely than larger firms to adopt DSC practices. Despite its significant effect on innovation ambidexterity, KMC surprisingly exhibited no direct influence on DSC adoption. Furthermore, the findings demonstrated the significant moderating role of environmental dynamism on the effect of KMC on innovation exploration.Research limitations/implicationsThis research endeavour has presented valuable insights for scholars and managers, furnishing them with a framework to facilitate decision-making processes regarding adopting DSC practices. A key insight gleaned from this study has been the remarkable value of firms' proactive behaviour and innovation ambidexterity in facilitating DSC adoption decisions. Such adoption has empowered organisations to deploy appropriate interventions and allocate resources efficiently, considering the pivotal role of innovation exploration in contrast to the relatively limited impact of innovation exploitation within this context. Managers may also underscore the significance of firm size in shaping DSC adoption decisions. Small- and medium-sized enterprises (SMEs) have been more likely to embrace DSC initiatives than their larger counterparts. The agile scale and streamlined organisational structures of SMEs often translate into faster decision-making processes, allowing for DSC adoption with relative ease. SMEs might also exhibit a greater openness to reap the benefits associated with DSC systems, such as improved operational efficiency and cost reduction.Originality/valueThe present study has advanced DSC adoption research by examining innovation ambidexterity, knowledge management capability and firms' proactiveness. It has also provided valuable insights for scholars and managers, presenting a framework for decision-making processes regarding DSC adoption in an emerging economy context.

The moderating role of organizational readiness on the blockchain adoption in supply chain among Saudi SMEs

The study aims to investigate the moderating role of Organizational Readiness (OR) in the relationship between Supply Chain Agility (SCA) and Blockchain Adoption Intention (BAI) among these SMEs, drawing on the Resource-Based View (RBV) theory. The study adopts a positivist approach and a cross-sectional design to explore how organizational readiness moderates blockchain adoption in Saudi SMEs. It uses a quantitative methodology, surveying decision-makers from SMEs engaged in supply chain activities to gather data. Data analysis is performed using Structural Equation Modeling (SEM). The study's findings indicate that Operational Supply Chain Transparency (OSCT) impacts Supply Chain Alignment (SCL), Supply Chain Adaptability (SCD), SCA, and BAI. Moreover, there is a positive influence of SCL on SCD and SCA. SCA also significantly influences BAI. Furthermore, the moderation analysis shows that OR significantly affects the SCA-BAI relationship, indicating that higher OR amplifies the positive impact of supply chain agility on blockchain adoption intention, underscoring the critical roles of supply chain factors and OR in blockchain adoption among SMEs. Based on the RBV theory, the study delves into how constructs like SCL, OSCT, SCD, and SCA are influenced by blockchain technology. It assesses the extent to which these factors would impact the propensity of SMEs to implement blockchain yet explores the moderating influence of OR on this dynamic.

Outsourcing for emergency relief: Unravelling key strategies

Modern relief organisations are overwhelmed with complex emergency response operations. Man-made and natural disasters are affecting millions of people, infrastructure and land. In developing countries, many emergency relief programs fail due to ineffective outsourcing management of emergency response services. This has been worsened by failure to understand the concept of outsourcing and measures to improve it. Little is known about the key strategies of outsourcing and their impact on emergency relief performance. Thus, the study sought to establish key strategies of outsourcing and their impact on performance of emergency relief programme. The study employed a descriptive research design tapping into quantitative research approach. To collect data from respondents, the closed-ended questionnaires were used. Descriptive and inferential statistics were used in analysing the quantitative data. The study found that adopting strategies to enhance outsourcing improved the organisation’s efficiency and effectiveness in performing emergency relief services. The study revealed that investing in information technology and software systems; and adopting supply chain modelling, algorithms and programming are impetus strategies that can be implemented by a leading non-governmental organisation to enhance outsourcing. Thus, there is significant relationship between exercise of sustainable strategies that enhances outsourcing and performance improvement of emergency relief services. The management of the organisation should adopt information technology, artificial intelligence and data analytics when outsourcing services within the organisation. The study focused on a leading non-governmental organisation in Zimbabwe neglecting other emergency relief organizations and thus making it difficult to make inferences to other players. Therefore, th? researcher recommends that further studies should consider taking all humanitarian organisations to have a comprehensive understanding on the issue under study.

Why companies adopt supply chain sustainability practices: A study of companies in Brazil

With the increased concern about social and environmental impacts, managing sustainability in supply chains has become a focus of interest. In consequence, companies are adopting supply chain sustainability practices also due to pressures from various stakeholders. Questions arise about how certain types of pressures can influence the adoption of behavioral and technical practices related to sustainability and how these relationships vary along supply chains. The research utilizes data from Brazilian companies and employs structural equation modelling to investigate the adoption of sustainability practices in supply chains. Normative and mimetic pressures positively affect behavioral and technical practices. On the other hand, coercive pressures have no influence on the adoption of sustainability practices, whether technical or behavioral. The findings enhance the understanding of how institutional pressures shape the adoption of sustainability practices, benefiting companies and policymakers aiming to promote sustainable supply chains.

What motivates firms to adopt a green supply chain and how much does it matter?

This study integrates the elaboration likelihood model, institutional theory, and the image management perspective to identify the internal and external forces that can effectively drive firms to adopt a green supply chain. Using survey data from a sample of 246 firms in the Chinese manufacturing sector, we empirically examine how the internal green process and green product innovation of firms and different types of external institutional pressures contribute to their adoption of a green supply chain, which in turn can explain the variation in their environmental and new-product development performance. Results of our structural equation modeling analysis reveal that the internal green process and green product innovation of firms and three types of external institutional pressures (i.e., coercive, normative, and mimetic pressures) play an important role in driving green supply chain adoption. Moreover, firms can improve their environmental and new-product development performance by adopting a green supply chain. In addition, though the image management motivation of firms tends to play a negative moderating role in the relationship between their green process innovation and green supply chain adoption, such motivation positively moderates the contribution of coercive pressure to their green supply chain adoption. Our findings can help explain why emerging-market firms tend to adopt a green supply chain and do not follow the pattern predicted by classical strategic management theories. The results of our study clearly demonstrate the determinants and consequences of the adoption of a green supply chain of firms and confirm that their green supply chain adoption can exert a positive effect on their environmental and new-product development performance. Overall, our research highlights the importance of recognizing internal innovation and external institutional forces in driving the green supply chain adoption of firms, which in turn will contribute to their environmental and new-product development performance. In this regard, our study extends the stream of research on green supply chains and sheds new light on the importance of abandoning the conventional supply chain and adopting a green one. Our study also provides important implications for research, practice, and policymaking.

Investigating the Role of Supply Chain Environmental Risk in Shaping the Nexus of Supply Chain Agility, Resilience, and Performance

Supply chain environmental risks are pivotal situational factors that significantly influence the intricate relationship between a business’s supply chain agility, supply chain resilience, and its ultimate supply chain performance. This study aims to explore the interplay between supply chain agility, supply chain resilience, and supply chain performance, while also investigating the moderating effect of supply chain environmental risks. Data analysis was conducted using hierarchical regression based on a questionnaire survey involving 416 companies in Taiwan’s manufacturing supply chain. The findings reveal several key insights. Firstly, supply chain agility has a positive influence on supply chain resilience, highlighting the importance of a flexible and responsive supply chain to handle challenges effectively. Secondly, supply chain resilience plays a vital role in determining supply chain performance, underscoring its significance in maintaining operational efficiency and effectiveness. Furthermore, the study identifies that supply chain environmental risks can act as a positive moderator in the relationship between supply chain agility and supply chain resilience. In other words, when faced with environmental risks, companies with higher supply chain agility can leverage this capability to reinforce their supply chain resilience, leading to improved supply chain performance. Additionally, the results shed light on the mediating role of supply chain resilience between supply chain agility and supply chain performance. This suggests that a resilient supply chain acts as an intermediary mechanism through which the positive effects of supply chain agility translate into enhanced overall performance. Given the uncertain and turbulent market environment today, these findings emphasize the importance of adopting supply chain agility and supply chain resilience as indispensable business strategies. Therefore, enterprise leaders and managers should proactively implement measures to enhance these aspects of their supply chain to effectively navigate and overcome environmental risks, ultimately driving supply chain performance.

Partial centralization in a durable‐good supply chain

There has been extensive research on the strategic choice between supply chain centralization and decentralization. However, most research assumes complete centralization or complete decentralization but omits the commonly adopted supply chain structure of partial centralization. With partial centralization, a firm owns a portion, but not all, of its partner. To help fill this research gap, in this paper, we make a major contribution by explicitly analyzing partial centralization in a supply chain where a durable‐good manufacturer owns a portion of its downstream retailer. We start with a two‐period model and derive analytical equilibrium outcomes of the supply chain and its members under complete centralization, complete decentralization, and partial centralization. First, our analysis reveals that partial centralization with an appropriate portion of ownership can yield the desirable product sales pattern over periods and alleviate the time‐inconsistency problem in selling durable goods. As a result, partial centralization can become the equilibrium structure for a durable‐good supply chain. Second, the manufacturer's optimal ownership level in the retailer decreases in the product durability and decision horizon length, implying that complete decentralization is more likely to be the supply chain structure in equilibrium for higher product durability and longer decision horizon. Third, our extended analyses demonstrate the robustness of the main results with backward partial centralization. Moreover, partial centralization outperforms conventional strategies such as two‐part tariffs that can coordinate a supply chain but not fully solve the time‐inconsistency problem associated with durable goods.