Innovative Supply Research Articles

Innovation for zero-deforestation sustainable supply chain management services: a performance measurement and management approach

PurposeFood sector supply chains have significant negative environmental impacts, including the expansion of global food commodity production, which is driving tropical deforestation – a major climate and biodiversity problem. Innovative supply chain monitoring services promise to address such impacts. Legislation also designates “forest-risk commodities”, demanding supply chain due diligence of their provenance. But such data alone does not produce change. This study investigates how theory in performance measurement and management (PMM) can combine with sustainable supply chain management (SSCM) and decision theory (DT) via case study research that addresses paradoxes of simplicity and complexity.Design/methodology/approachGiven existing relevant theory but the nascent nature of the topic, theory elaboration via abductive case study research is conducted. Data collection involves interviews and participatory design workshops with supply chain actors across two supply chains (coffee and soy), exploring the potential opportunities and challenges of new deforestation monitoring services for food supply chains.FindingsTwo archetypal food supply chain structures (short food supply chains with high transparency and direct links between farmer and consumer and complex food supply chains with highly disaggregated and opaque links) provide a dichotomy akin to the known/unknown, structured/unstructured contexts in DT, enabling novel theoretical elaboration of the performance alignment matrix model in PMM, resulting in implications for practice and a future research agenda.Originality/valueThe novel conceptual synthesis of PMM, SSCM and DT highlights the importance of context specificity in developing PMM tools for SSCM and the challenge of achieving the general solutions needed to ensure that PMM, paradoxically, is both flexible to client needs and capable of replicable application to deliver economies of scale. To advance understanding of these paradoxes to develop network-level PMM systems to address deforestation impacts of food supply chains and respond to legislation, a future research agenda is presented.

To Transfer or Not? Analysis of the Original Equipment Manufacturer's Strategic Outsourcing Strategy in the Presence of the Supplier's Innovation Effort

Recently, a new trend has arisen in which many original equipment manufacturers (OEMs) outsourced to traditional low-cost manufacturing bases (e.g., China) have started to transfer production to new emerging regions with even lower costs (e.g., Southeast Asia). However, it is still unclear whether and when OEMs should transfer to the new environment, especially when taking the traditional supplier's initial innovation effort into consideration. To address this question, we consider a sourcing game where one OEM sources from a traditional low-cost supplier that can be either competitive (CS) or noncompetitive (NS) initially. Moreover, both of these types of suppliers have the ability to innovate by themselves. Driven by the increasing cost pressure, the OEM may transfer to a new supplier (LS) that has an even lower cost but suffers yield uncertainty. The equilibrium results show that the OEM is less likely to transfer when its brand value is large enough. Interestingly, we find that the competition between the CS and OEM does not always prompt the OEM to transfer. When the brand advantage is large enough and the traditional supplier's unit production cost for the OEM is moderate, the OEM should not transfer under the CS scenario but should transfer under the NS scenario. Finally, we find that when the OEM's brand advantage increases, the effectiveness of innovation in preventing the OEM from transferring decreases under the CS scenario, while it increases under the NS scenario.

Flexibility as a performance measurement of supplier innovativeness and supply chain integration in the hotel industry

Flexibility as a performance measurement of supplier innovativeness and supply chain integration in the hotel industry

Flexibility as a performance measurement of supplier innovativeness and supply chain integration in the hotel industry

Flexibility as a performance measurement of supplier innovativeness and supply chain integration in the hotel industry

Navigating Supply Chain Complexity: Empirical Insights from the Developing Country Readymade Garments Industry

Purpose- The study aims to develop an efficient model to handle challenges of supply chain management in readymade garments industry. This paper illustrates the systematic literature reviews and experimental evidence-based study of readymade garments companies of a developing Asian country. The present study also finds the pattern for the healthy and sustained development of clothing enterprises. Design/methodology/approach- This paper illustrates the systematic literature reviews and experimental evidence-based study of readymade garments companies of a developing Asian country. The existing qualitative and quantitative studies were reviewed to find out the challenges in supply chain and the recommendable solutions are provided. The studies undertaken in Asian developing countries were only considered in this study. Findings- The innovation on supply chain management for readymade garments company in developing country will help enterprise to setup legal guidelines for smooth production process. The new innovative supply chain management has two characteristics, a balance of high efficiency and cost saving. Dual-source supply chain management, manufacturing outsourcing, and multi-supplier management are three elements of it. The ICT information management platform is a critical component in ensuring the supply chain flexibility of the clothing industry. Implications- Through the research of application and analysis of the innovative supply chain systems of readymade garment industry of Asian developing countries. It helps to setup guideline, and direction for the practical operation way of modern enterprise with innovative supply chain system knowledge and practice. Originality/value- All this relies on its unique and efficient supply chain management, this paper explains and analyzed innovative supply chain management. This paper also contributes by providing solution to overcome from the challenges of supply chain management in readymade garments industry. Paper Type- Research paper

Digital Analysis of Logistics and Supply Chain Management Innovation of E-commerce Enterprises in Green Economy

Abstract This paper centers on the logistics and supply chain management of e-commerce enterprises, studies the development mode of e-commerce logistics as well as the logistics process, and constructs a collaborative innovation model of e-commerce logistics integration based on supply chain management. Through the synergistic composite system in the role of management activities, the harmonious coexistence between the various components of the subsystem order parameter in order to achieve the overall effect of the system. The dynamic evolution process of consumers, e-commerce platforms and logistics enterprises is simulated and analyzed, and the optimal decision-making under the integrated collaborative innovation mode is studied. The results show that under the platform warehousing + distribution integration synergy (SP) mode, the double marginal effect is 0.865, and both e-commerce platform and logistics enterprises reach a steady state at 0.723. The purpose of this paper is to propose innovative supply chain management and logistics warehousing solutions that can achieve cross-border e-commerce logistics integration based on supply chain management.

When and how to introduce upstream competition in an innovation supply chain

Considering an innovation supply chain with a primary supplier involvement in the new product development of a downstream manufacturer who sells to consumers, we address when and how to introduce a secondary supplier by applying order commitment besides innovation quality-dependent contract and revenue-sharing contract. Our results show that the secondary supplier should be invited after the new product development is achieved. The innovation quality-dependent order commitment contract can improve the innovation quality of the supply chain. The innovation quality-dependent wholesale price contract warrants the supplier's innovation quality to keep the same level as the single-supplier supply chain and improves the primary supplier's profit. The incentive effect of a revenue-sharing contract on the supplier's innovation quality is more substantial when introducing a secondary supplier after new product development than before. Furthermore, the negative effect of the supplier's competition on innovation quality and profit of the manufacturer can be alleviated by wholesale price decision-making power consignment. We also provide rich managerial insights into supplier involvement in new product development practices by analyzing the equilibrium behaviors and numerically simulating significant decision variables concerning the demand sensitivity to innovation quality.

Codevelopment Versus Outsourcing: Who Should Innovate in Supply Chains

Outsourcing has long been a strategy to decrease cost. Increasingly firms recognize the value in their supply chains and call on suppliers to innovate, both in products and processes. Innovation to increase quality and demand or to reduce costs is critical to firm and supply chain success. In a two-stage supply chain, we investigate the impact of focal firm and supplier innovation costs (and capabilities) on the type of outsourcing chosen and the resulting investments in process and product innovation. The focal firm determines whether to perform design (including product innovation in the form of quality enhancement) and manufacturing (including process innovation in the form of cost reduction) in-house, to outsource manufacturing/process innovation while insourcing design/product innovation, to outsource both manufacturing/process innovation and design/product innovation, or to codevelop product innovation while outsourcing manufacturing/process innovation. We also examine the conditions under which codevelopment is favorable, given the supply chain faces potential positive and negative synergies from either the colocation of the innovation activities or costs of collaboration. After characterizing the optimal outsourcing decision, we find that the decision to outsource is more nuanced than simply which activities to outsource but must include options to collaborate on particular activities and specifically product innovation. We offer the insight to managers that codevelopment, despite the costs of collaboration, can benefit the firm and result in higher profits. This occurs through the improvement of demand via higher quality products.

Supplier innovativeness, supplier relationships, and enterprises' finance constraints

AbstractIn this study, we adopt the perspective of supplier innovation and manually collect samples of enterprises and their suppliers listed on China's Shanghai and Shenzhen A‐shares markets from 2008 to 2021 to investigate whether supplier innovativeness affects enterprises' financing constraints. We find that supplier innovativeness can significantly alleviate enterprises' financing constraints; this effect is more significant when the relationship between enterprises and suppliers is more stable and their economic dependence is higher. The analysis of the mechanism of action reveals that supplier innovativeness can alleviate enterprises' financing constraints by enhancing their innovativeness. The heterogeneity analysis finds that the alleviation effect of supplier innovativeness on enterprises' financing constraints is more significant in nonstate‐owned enterprises. We examine the factors influencing enterprises' financing constraints from the unique perspective of supplier innovativeness, enrich the literature on financing constraints and provide new ideas for enterprise managers and policymakers.

Possible green-technology innovation motivated by China’s pilot carbon market: new evidence from city panel data

ABSTRACT Whether the carbon market can promote green technology innovation is a controversial topic because of an incomplete understanding of the mechanism and inconsistent datasets. This study first comprehensively explores the theoretical mechanism of the carbon market on green technology innovation from four aspects: the compensation effect, cost control motivation, crowding-out effect, and spillover effect. A sample of 209 cities in China is employed to empirically test the impact of China’s pilot carbon market on green technology innovation and its regional and industry heterogeneity using quasi-natural experiments. We found that China’s pilot carbon market has significantly promoted green technology innovation at the city level, especially in provincial capital cities, achieving a maximum effect two years after the shock. However, there is no significant spillover effect on the surrounding non-pilot cities, and Chongqing has realized the suppression of green technology innovation under the domination of the crowding-out effect. At the industry level, the pilot carbon market significantly promotes green technology innovation in the transportation, construction, chemical, and power industries but exhibits crowding-out effects in the steel industry. Finally, we propose policy implications for maintaining reasonable and stable carbon prices to stimulate compensation effects, scientifically determining the order of industry inclusion to avoid crowding-out effects, and accelerating inter-regional supply chains and technological cooperation to release spillover effects. Key policy insights: It is recommended to scientifically determine a reasonable carbon price range and introduce institutions, individuals, and other trading entities to improve the liquidity of the carbon market and the effectiveness of carbon prices. Considering the high cost triggered by the complex processes of the steel industry in developing countries, its inclusion may inhibit green technology innovation; thus, it is necessary to be cautious about including the steel industry in the carbon market. To build a carbon market in developing countries, the order of industry inclusion must be determined based on scientific calculations of the costs of green technology innovation in the industry. Avoid using self-declaration for carbon quota allocation and focus on improving national basic innovation capabilities to ensure the supply of green technology innovation.

Orchestrating resources with suppliers for product innovation

AbstractHow orchestrating external, supplier‐provided resources affects product innovation is an important question. While product innovation is essential to achieve a competitive advantage, it is costly as it requires significant investments. It thus puts a severe strain on firm resources, which is particularly critical for resource‐scarce small–medium enterprises (SMEs). Therefore, these firms must combine their own resources with those of external parties, particularly suppliers, to enhance their product innovation. However, knowledge about how orchestrating these resources affects product innovation is limited, because empirical studies on resource orchestration have largely focused on firm‐internal resources; furthermore, there is ambiguity regarding the extent to which drawing on external resources is beneficial. In addition, the conditions that affect the resource orchestration–product innovation relationship remain unexplored. Therefore, we focus on supplier logistics integration (SLI), an important resource orchestration action referring to the orchestration of external, supplier‐provided resources; we draw on the resource orchestration framework and the related work on organizational rigidity to theorize that there is an inverted U‐shaped relationship between SLI and product innovation. Additionally, we suggest that learning orientation and environmental dynamism mitigate rigidities associated with high levels of SLI and thus facilitate the translation of SLI into product innovation. Testing our hypotheses with data from Swedish SMEs supports our theorizing and provides important contributions. Most importantly, we extend the resource orchestration framework to include the focus on external, supplier‐provided resources, thereby advancing our knowledge and understanding of resource orchestration for product innovation in SMEs.

Do customer ESG performance affect supplier innovation? Evidence from China's listed firms

In the context of the growing importance of sustainable supply chain management, we investigate the impact of customer ESG performance on supplier innovation using a paired sample of Chinese customer-supplier data from 2009 to 2020. The results show that favorable customer ESG performance is positively associated with supplier innovation, and the association is particularly pronounced when the supplier is more digitally transformed or geographically closer to the customer.

Study on the Modernization of Supply Chain Management of the Luxury Industry in the Context of the Digital Economy

As a field with both traditional and modern characteristics, the luxury industry has been profoundly affected by the wave of the digital economy. The luxury industry, characterized by tradition and modernity, has been profoundly affected by the wave of the digital economy. The luxury industry has relied heavily on the traditional offline sales model, but with the outbreak of the COVID-19 epidemic, offline sales worldwide have been severely impacted, and the prosperity of the industry once had faded. Under such circumstances, a transformation of supply chain management in the luxury industry is imminent. This study first introduces the development status of the luxury industry in the context of the digital economy; then analyzes the problems and shortcomings of the traditional supply chain model; and finally examines the application of digital tools such as AI, blockchain technology and sustainability in the luxury supply chain. Using a case analysis approach, we aim to provide insights into innovative supply chain management applications in the luxury industry and to reveal how these tools can improve the supply chain’s efficiency, transparency and sustainability through real-life case studies.

Influence of Agronomic Practices on the Antioxidant Compounds of Pigmented Wheat (Triticum aestivum spp. aestivum L.) and Tritordeum (× Tritordeum martinii A. Pujadas, nothosp. nov.) Genotypes.

Twelve pigmented wheat genotypes, one tritordeum, and one common wheat were grown in three field experiments under varying nitrogen (N) fertilization rates to investigate the contributions of genotype, environment, and fertilization on the levels of phenolic acids, anthocyanins, carotenoids and antioxidant capacity of the grains. Soluble phenolic acids increased significantly (+16%) in the environment with high soil N content, while bound phenolic acids and anthocyanins decreased (-16 and -57%). N fertilization affected the agronomic and qualitative traits but had limited effects on some bioactive compounds (bound phenolic acids and anthocyanins). The greatest differences appeared among the color groups and within the same color types, with the black group showing the most anthocyanins and phenolic acids (34.4 and 1207 mg·kg-1) and the highest antioxidant capacity. Some of the cultivars could be promising for the development of innovative supply chains and the production of functional foods, as they showed good yield and quality performances, and good antioxidant features.

A theory on ICER pricing and optimal levels of cost-effectiveness thresholds: a bargaining approach.

In many health systems around the world, decisions about the reimbursement of-and patient access to-new medicines are based on health technology assessments (HTA) which, in some countries, include the calculation of an incremental cost-effectiveness ratio (ICER). Decision-makers compare the ICER against a pre-specified value for money criterion, known as the cost-effectiveness threshold (CET), to decide in favour of or against reimbursement. We developed a general model of pharmaceutical markets to analyse the relationship between the CET value and the distribution of the health and economic value of new medicines between consumers (payers) and producers (life science industry developers). We added to the existing literature in three ways: including research and development (R&D) cost for developers as a sunk cost; incorporating bargaining using the Nash bargaining solution to model payer bargaining power from regulation and use of competition; and analysing the impact of a non-uniform distribution of developers R&D costs on the supply of innovation. In some circumstances of bargaining power distribution and R&D cost, we found that using a CET value in HTA decision-making higher than the supply-side CET is socially efficient. Decision-makers should consider adjustable levels of the CET or interpretation of ICERs higher than the CET according to the bargaining power effect. The findings of this research pointed to the need for more research on the impact of bargaining power, how R&D investment responds to rewards, i.e. the elasticity of innovation, and pre- and post-patent expiry modelling.

How can a buying company develop a Toyota-style supplier network while its lean capabilities are still evolving?

PurposeToyota had mature lean capabilities when developing its supplier network. This paper aims to explore how companies can develop a Toyota-style supplier network (TSN) while their lean capabilities are still evolving.Design/methodology/approachTheoretically, this paper relies on the literature on lean maturity levels and lean supplier network development. Empirically, the paper portrays a Toyota-style initiative, detailing the buyer’s efforts to develop internal lean capabilities concurrently with developing lean in its supplier network. It compares the Network for supplier innovation (NSI) initiative with TSN development regarding activities, organizations and knowledge-sharing routines.FindingsUnlike the sequential development in the case of Toyota, NSI improved performance and capabilities in the buyer’s supplier network by implementing lean in the firm and its supplier network concurrently. Third-party involvement was the key to the initiative’s success.Research limitations/implicationsThe findings are based on an in-depth single-case study which allows theoretical generalization but not statistical generalization. Furthermore, the case study concerns an initiative with Norwegian firms during a financial recession. Future studies should consider these limitations on how firms with evolving lean capabilities can develop a TSN-style supplier network and the importance of involving third parties operating in the role of lean master.Practical implicationsThis study suggests what buying firms should consider when designing a TSN initiative, enrolling suppliers and engaging third parties that can take on the role of lean master.Originality/valuePrevious research has focused on how mature lean firms develop lean suppliers and networks. This paper extends this to firms whose lean capabilities are still evolving.

The real effect of innovation information disclosure: from the perspective of supplier innovation

ABSTRACT This paper investigations the impact of customers’ innovation information discovery in management discussion and analysis (MD&A) on the innovation of suppliers. We find that the more innovation information disclosed in MD&A, the higher innovation level of the supplier, and the higher the similarity between the supplier’s patent and the customer’s patent. Further analysis shows that when the degree of information asymmetry between suppliers and customers is higher, innovation is more important to suppliers, suppliers are more dependent on customers, and customers discovery more forward-looking information, the role of customer innovation information discovery on supplier innovation investment is more obvious. The economic sequences test finds that the impact of customer innovation information discovery on supplier innovation significantly import the investment efficiency and enterprise value of enterprises. Our findings provide evidence on the influence of public textual information on the real economy from the perspective of supply chain and theoretical basis for the importance to intensify information discovery in the capital market.

Estimation of the Overmature Wood Stock and the Projection of the Maximum Wood Mobilization Potential up to 2100 in Hungary

The demand for woody biomass as a key raw material of the developing circular bioeconomy is expected to increase. This has led to the need of increased timber productivity and the search for new procurement methods, new assortments, and innovative supply chains. Timber is regarded as a climate-friendly resource, which can contribute to climate change mitigation through long-term carbon storage and through the substitution of fossil products and fossil fuels. Thus, it is of high importance to assess the amount of timber that can be harvested without compromising sustainability concerns. In this paper, we examined the amount of the wood stock accumulated in overmature stands in Hungary. We define overmature stands being those stands where the actual age of the stand is over its cutting age prescribed by the forest authority. According to our results, 11.5% of the standing volume in Hungary is overmature, and the wood stock of overmature stands has increased by more than 250% in the last 40 years. The importance of the overmature forests is enormous, as they represent an unused wood stock reserve, which could be available to meet the growing demand for timber. In our study, we also conducted a simple yield table-based projection on the maximum amount of timber available for harvest in the period 2020–2100 based on the data of the national forestry database and the cutting ages prescribed by the forest authority in the forest management plans. According to our results, even without new afforestation, more timber becomes available for harvest annually in the 2020–2100 period than the level of the average harvests of the last five historic years. In the 2020–2050 period, an additional 56% of timber is projected to become available for harvest as a maximum. This means a maximum additional potential of 4059 thousand m3, even without the harvesting of the stands, which were already overmature in the starting year of the projection. In the first part of the projection period, industrial wood available for harvest is forecasted to be above the average historic level of industrial wood production. However, in the second part of the projection period, the industrial wood yield shows a decreasing tendency and even drops below the 2017–2021 average. The decreasing availability of industrial roundwood in the second part of the projection period points out the importance of innovation in the wood industry. The inclusion of drought tolerant species, which are nowadays less used for industrial purposes seems inevitable in the production of high-quality wood products.

The commercialization of timber bamboo in Nepal: A SWOT-AHP analysis

Non-Timber Forest Products (NTFPs) have the potential to support sustainable livelihood development and forest conservation. Among NTFPs, bamboo has gained popularity as a potential substitute for wood-based timber. In Nepal, bamboo is a culturally and ecologically important plant distributed across major ecological regions. Despite its potential, the current use of bamboo in Nepal is limited. To address this, we conducted a study using expert interviews, a Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis, and the Analytic Hierarchy Process (AHP) to identify the key factors necessary for the successful commercialization of bamboo in Nepal. Our findings highlight the importance of local employment, marketing infrastructure, research and development, and product quality and delivery. Overall, the Nepalese bamboo industry shows high potential for development, with strengths and opportunities outweighing weaknesses and threats. Our study identifies four areas for improvement to support the commercialization of the Nepalese bamboo industry i) integrating traditional knowledge into innovative supply chains, ii) improving policy support, iii) building capacity in bamboo harvesting and management, and iv) utilizing community forestry networks to grow bamboo. Our results have implications for policymakers and industry stakeholders looking to develop sustainable and profitable bamboo industries in Nepal and beyond.

COGNITIVE BACKGROUND OF VERTICAL FDI SPILLOVERS: AWARENESS MOTIVATION COGNITIVE CAPACITY

This study aims to investigate how the awareness, motivation, and capacity of local organizations affect vertical FDI spillovers in the Turkish automotive industry within the framework of institutional theory. A multiple case study method was used in this study, in which interviews, observations, and documents of seven local supplier organizations were subjected to content analysis. The findings show that the expectations of multinational companies for efficiency in buyer-supplier relationships have limited the awareness, motivation and capacity of local suppliers for internationalization and innovation. This situation prevents local organizations, especially those located at the lower rungs of the supply chain, from capturing the positive effects of vertical FDI spillovers.