Firms In Supply Chain Research Articles

AI-induced anxiety in the assessment of factors influencing the adoption of mobile payment services in supply chain firms: A mental accounting perspective

This research aims to explore the impact of AI-induced anxiety on the adoption of mobile payment services in supply chain firms, viewed through the lens of Mental Accounting Theory. In an era driven by technological advancement, supply chain companies' use of mobile payment services has arisen as a crucial problem. This study is the first to investigate the complicated links between AI-induced anxiety, perceived utility, and the adoption rate of mobile payment systems using the Mental Accounting Theory as a theoretical framework. The study employs a quantitative research approach, using Smart PLS for regression analysis, and gathers its data from major supply chain business players. Our analysis offered important insights into the many aspects influencing the adoption of mobile payment services in supply chain companies. The acceptance rate was shown to be adversely connected with AI-induced anxiety and integration expenses, posing obstacles for businesses seeking to embrace mobile payment systems. In contrast, characteristics such as perceived utility, usability, confidence in security, and backing from upper management were positively connected with adoption rates. These findings provide not only theoretical contributions to the current research, but also concrete advice for supply chain practitioners seeking to exploit mobile payment systems for operational and strategic advantage.

ICT Team Dual-Innovations in the Microlevel of Circular Supply Chain Management: Explicit-Tacit Knowledge, Exchange Ideology, and Leadership Support

An emerging information communication technology (ICT) triggers circular supply chain management (CSCM), there is still much to be addressed effectively, especially at the microlevel of CSCM. The purpose of this article is to build an integrated model for ICT team exploratory and exploitative innovation in the lens of CSCM and circular economy context. Our analysis was supported by 124 industries-ICT teams (368 participants) in Indonesia. We used structural equational model SmartPLS to validate the development model and Sobel approach to confirm the mediation hypothesis. Supply chain manager, ICT department, and industries executive level are suggested to encourage knowledge sharing practices both explicit and tacit knowledge. Firm's supply chain may follow path-goal leaders to promote effectively circular supply chain management. It is also highlighted that exchange ideology as a moderator help leader to understand their team orientation and contribution to knowledge sharing activities and leader's characteristics. We contribute to a microlevel of CSCM context and new understanding of how explicit-tacit knowledge sharing (mediator), exchange ideology (moderator), and leaders support in ICT team exploratory-exploitative innovation, and as new foundation for future studies on cross-CSCM ICT team including encourage more detailed analysis of exchange ideology orientation.

The role of board interlocks in increasing the use of wood in Norwegian construction

This paper studies the existence of board interlocks between wood-based firms in the Norwegian construction supply chain and firms in other industries, and their role in enabling increased use of wood in construction. Wood-based construction remains a niche market globally. The literature highlights two main barriers to wood-based construction: 1) lack of expertise with the material, and 2) lack of coordination and collaboration across the supply chain. As a form of interfirm governance structure, board interlocks may promote innovation in construction, such as applying new materials, products and processes, by fostering strategic collaborations. Drawing on resource dependence theory (RDT) and the theory of dynamic capabilities, we explore this through analysis of registry data, interviews and case studies. It was found that the majority of wood-based firms have board interlocks and that a majority of the firms they are interlocked with belong to industries within the construction supply chain. It was also found that the role of these board interlocks is primarily to secure access to immaterial resources, such as knowledge, expertise and skills, which enables the wood-based firms to engage in processes (sensing, seizing, and reconfiguration) that are important for their dynamic capabilities and therefore closely related to their ability to innovate.

Identification and assessment of supply chain risks: The case of food hubs

AbstractThe supply chain risk management literature highlights the importance of ex‐ante identification and assessment of risks to ensure continuity of firms, in particular, and the high performance of supply chains in which they operate, in general. Supply chain disruptions are harmful and costly for firms. The risk of such disruptions can be particularly consequential for firms in emerging industries that lack resources and for which dominant organizational and supply chain designs do not yet exist. Within local and regional food supply chains, food hubs are nascent enterprises coordinating these supply chains. Building off the existing supply chain risk management literature, this study identifies and assesses the perceived supply chain risks faced by U.S. food hubs. The study employs an exploratory sequential mixed methods research design and the Failure Mode and Effect Analysis methodology for this purpose. The results show risks related to imbalances in food supply and demand, logistical delays, human resources, and infrastructure capacity limitations were perceived to be the highest priority supply chain risks for the U.S. food hubs before the COVID‐19 pandemic. The study further provides insights on association between food hub characteristics and risk, as well as association between risk preferences and risk perceptions of food hub managers [EconLit Citations: L29 Other (Firm Supply Chain Risk Management)].

Overlapping institutional ownership along the supply chain and earnings management of supplier firms

We explore the impact of overlapping institutional ownership (OIO) within supply chains on the earnings management practices of supplier firms. Utilizing a dataset of U.S. publicly traded supplier firms from 1988 to 2016, we discover that suppliers with institutional ownership overlapping with their major customers exhibit reduced levels of discretionary accruals. This finding implies that such overlap discourages suppliers from engaging in upward earnings management through the manipulation of discretionary accruals. We also find that OIO curtails accrual-based earnings management by enhancing the relationship between supply chain partners and bolstering external monitoring. Additionally, we find that OIO also mitigates the extent of real earnings management undertaken by the supplier firm. These findings remain robust after addressing potential endogeneity concerns. Our results underscore the significant role of OIO within supply chains in curbing both accrual-based and real earnings management by supplier firms.

Coordination contracts and numerical analysis of low-carbon competitive supply chains under the influence of low-carbon goodwill

Introduction: Under the dual opportunities of low-carbon consumption preference and online consumption platforms, vendors’ low-carbon advertising incursions provide opportunities for decarbonization and market position enhancement, as well as further research on the value of low-carbon advertising. This study aims to explore the contractual choices of green vendors’ online channels participating in low-carbon advertising competition under the low-carbon goodwill effect, and to simulate and evaluate the contractual choices of supply chain members.Methods: Using differential games, through the innovative application of the traditional low-carbon goodwill model and the introduction of the low-carbon advertising competition intensity coefficient, we design one-way and two-way cost-sharing contracts under low-carbon competition, coordinate the vicious competition in the supply chain, and provide contractual choices for supply chain participants.Results and discussion: Under the low-carbon advertising competition decision, the manufacturer has an absolute low-carbon market advantage, but the interests of all supply chain members are weakened, and interestingly, the manufacturer, who dominates the market, is the facilitator of the contractual agreement. Second, well-designed pacts can provide manufacturers and traders with more options for low-carbon strategies. Although both one-way and two-way cost-sharing pacts can generate Pareto gains for the supply chain and its members in advertising competition, two-way cost-sharing pacts are superior to one-way pacts in terms of coordination advantages. In addition, an important finding is that greater profit growth can be achieved through contractual cooperation in low-intensity advertising competition. Thus, moderate competition is desirable, while excessive competition can harm the supply chain system. Manufacturers should actively urge retailers to cooperate in order to optimize profits and establish long-term stable partnerships between upstream and downstream firms in green 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.

Research on U-shaped relationship between short-term debt for long-term use and supply chain enterprise default risk: Evidence from Chinese listed firms.

This paper empirically investigates the impact mechanism of short-term debt for long-term use and the default risk of supply chain firms with the data of Chinese A-share listed firms from 2007 to 2021. The study shows that there is a significant U-curve relationship between short-term debt for long-term use and supply chain firms' default risk, and too high or too low a level of short-term loans and long-term investments will worsen firms' default risk. In addition, firm performance plays an mediating effect in the process of short-term debt for long-term investment affecting the default risk of supply chain firms. Finally, customer effect and firm heterogeneity play a moderating role in the impact of short-term loans and long-term investments on the default risk of supply chain firms, and the U-shaped relationship will be strengthened under the high-intensity customer effect. This study has important theoretical and practical significance for analyzing the impact of default risk contagion in supply chain enterprises.

Commodity storage and the cost of capital: Evidence from Illinois grain farms

AbstractCommodity inventories are the key state variable determining the magnitude of commodity price responses to supply and demand shocks. Many firms in commodity supply chains use storage, but we know little about which firms and why. The economic theory of storage asserts that firms in a competitive market for inventories will store based on current and expected market prices and the per‐unit cost of storing. We empirically test at the firm‐level the importance of one major cost of storage: the opportunity cost of capital used to value foregone revenue from deferred commodity sales. To do so, we use panel data from thousands of Illinois farms who hold inventories of corn and soybeans. Although interest rates as a measure of capital costs are unlikely to vary widely across firms in this context, we exploit variation in the weighted average cost of capital due to cross‐firm differences in capital structure. Using two‐way fixed effects regressions, we find a statistically significant average effect of capital costs on inventory that masks notable heterogeneity across firms. Panel quantile regressions reveal two groups of firms: one whose inventory holdings are responsive to changes in the opportunity cost of storage and another whose are not. Our results suggest some farms behave like the profit‐maximizing ones from theory but substantial inframarginal commodity inventories are held by farms for other reasons.

Digital Transformation Management of Supply Chain Firms Based on Big Data from DeFi Social Media Profiles

Emerging technologies in the digital context can favor industrial sector firms in their aim to improve their performance. Digitalization is mainly expressed through the utilization of big data that originate from various sources. Blockchain technology has led to the extended adoption of capitalization of Decentralized Finance (DeFi) services, such as cryptocurrency trade platforms. Supply chain firms, in their quest to exploit any means and collaborations available to promote their services, could place advertisements on DeFi’s social media profiles to boost their financial performance. Social media analytics, as a part of the big data family, are an emerging tool for promoting a firm’s digital transformation, based on the plethora of customer behavioral data they provide. This study aims to examine whether the social media analytics of DeFi platforms are capable of affecting their website visibility, as well as the financial performance of supply chain firms. To do so, the authors collected data from the social media profiles of the most-known DeFi platforms and web analytics from the most significant supply chain firms’ websites. For this purpose, proper statistical analysis, Fuzzy Cognitive Mapping, Hybrid Modeling, and Cognitive Neuromarketing models were adopted. Throughout the present research, it has been discerned that from an increase in the social media analytics of DeFi platforms, their website visibility increases, while the organic and paid traffic costs of supply chain firms decrease. Supply chain firms’ website customers tend to increase at the same time.

External financing, channel power structure and product green R&D decisions in supply chains

PurposeThis study aims to focus on the optimal green R&D of a capital-constrained supply chain under different channel power structures as well as the impact of capital constraint, financing cost, channel power structure and cost-reducing efficiency on green R&D and supply chain profitability.Design/methodology/approachA two-echelon supply chain is considered. The upstream firm engages in green R&D but has capital constraints that can be overcome by external financing. Green R&D is beneficial to reduce production costs and increase consumer demand. Based on whether or not the upstream firm is capital constrained and dominates the supply chain, four models are developed.FindingsCapital constraints significantly lower green R&D and supply chain profitability. Transferring leadership from the upstream to the downstream firms leads to higher green R&D levels and downstream firm profitability, whereas the upstream firm's profitability is increased (decreased) if green R&D investment efficiency is high (low) enough. Greater financing costs reduce green R&D and downstream firm profitability; however, the upstream firm's profitability under the model in which it functions as the follower increases if the initial capital is sufficient. More importantly, empirical analysis based on practice data is used to verify the theoretical results reported above.Practical implicationsThis study reveals how upstream firms in supply chains decide green R&D decisions in situations with capital constraints, providing managers and governments with an understanding of the impact of capital constraint, channel power structure, financing cost and cost-reducing efficiency on supply chain green R&D and profitability.Originality/valueThe major contributions are the exploration of supply chain green R&D by taking into consideration channel power structures and cost-reducing efficiency and the validation of theoretical results using practice data.

Firms’ value impact of C2M mode empowered by big data based on event study

PurposeThis study aims to analyze and discuss whether and how consumer-to-manufacturer (C2M) mode empowered by e-commerce retail platforms’ big data affects the stock returns of firms in supply chains.Design/methodology/approachThis study selects 195 companies affected by four C2M events as samples and empirically analyzes the impact mechanisms of C2M mode on supply chain firms’ stock returns by event study.FindingsThis paper finds that C2M announcements own a positive impact on the stock returns of supply chain firms. Further, the results show that the business and financial characteristics play a significant impact on the relationship between the C2M mode and firm stock return performance. For example, C2M mode leads to huge stock returns when firms cooperate with the platforms related to their business content. In addition, the business scope can strengthen the positive promotion of C2M mode in stock returns, while business concentration weakens the positive promotion of C2M mode in stock returns.Originality/valueThe results found in this paper can provide practical guidance for the firms in supply chains to further apply C2M mode from the business characteristics and financial performance view.

Reinforcing resilience on the supply side: the role of supplier capabilities

PurposeThis research study aims to investigate supplier integration's (SI) impact on supply-side resilience (SSR) while considering the intervening role of supplier sustainability and supplier flexibility (SF).Design/methodology/approachGrounded in the dynamic capabilities view (DCV), the study posits that integration of the focal firm with firm's suppliers leads to sustainability on the supplier's side, which makes the firms more flexible to work with during disruptive circumstances, resulting in resilience on the supply side. The hypotheses are tested on the data of 181 manufacturing firm supply chain managers from a developing country.FindingsThe research findings confirmed the hypothesized model suggesting that SI positively impacts SSR. The results also confirm the existence of sequential mediation of supplier sustainability and SF between the SI–SSR relationship.Practical implicationsThe results of this study show that SI is the primary capability for organizations seeking SSR. Furthermore, the supply-side capabilities, to be effective, are developed in a specific order.Originality/valueThis research advances the body of knowledge by identifying the underlying mechanisms through which SI augments SSR.

Data‐driven insights for circular and sustainable food supply chains: An empirical exploration of big data and predictive analytics in enhancing social sustainability performance

AbstractAlthough the circular economy is commonly used among industries in developing countries to achieve carbon neutrality targets, its impact on social sustainability must be clarified. Stakeholders (for instance, community stakeholders) have been observed to be unaware of the focal firm's circular supply chain activities. Because this gap has not been generally reflected in the literature, it is critical to perform an empirical study to bridge the gap between theory and practice. The goal of this research was to determine whether new technologies such as big data and predictive analytics might influence an organization's propensity to share information related to circular economy practices with stakeholders as well as to increase connectivity with those stakeholders in the Industry 4.0 era. We also investigated whether these actions could increase stakeholder trust and engagement and social sustainability as a result. We tested our theoretical model using samples from food supply chain firms in South Africa. Confirmatory factor analysis was conducted using WarpPLS 7.0 software. The findings show that firms that deploy big data and predictive analytics are more likely to share information related to the circular economy with stakeholders and that these firms are also well‐connected with those stakeholders, resulting in increased trust and engagement. This, in turn, contributes to the social sustainability of supply chains. Our research has made a significant contribution by encouraging a theoretical debate regarding the willingness to share information regarding the circular economy and the social sustainability of the supply chain.

Enhancing supply chain resilience and realizing green sustainable development through the virtual environment of the metaverse

AbstractThis study explores how the virtual environment of metaverse generates benefits to drive firms' rational choice in mutual trust building, and further ensures the green knowledge sharing intention maintaining for continuous enhancing supply chain resilience and realizing green performance, further promoting environmentally sustainable development. A conceptual framework is formulated by incorporating the natural resource‐based view, knowledge‐based view, and rational choice theory. This framework is supported and validated using PLS‐SEM. The findings of the analysis reveal that the virtual environment of the metaverse can create a sense of physical proximity, effectively managing communication distance and influencing firms' emotional attitude during interactions. Furthermore, the metaverse facilitates sensory feedback, thereby strengthening emotional expression. Based on these observations, supply chain firms are likely to adopt rational thinking and demonstrate rational behavior, making choices that foster mutual trust. As trust is established, it promotes the sharing of green knowledge, strengthens supply chain resilience, facilitates the achievement of environmentally friendly performance in the green supply chain, and contributes to the sustainable development of the environment. This study makes valuable contributions to the existing literature concerning the integration of green supply chain and the metaverse.

Supply chain resilience to climate change inflicted extreme events in agri-food industry: The role of social capital and network complexity

In light of climate change inflicted extreme events—such as floods, fires, droughts, storms, and hurricanes, along with the consequent widespread business disruptions—supply chain resilience (SCR) has emerged as a critical tool to sustain business performance. However, little in-depth theoretical and empirical research has been conducted in relation to the link between exposure to climate change and SCR and the underlying mechanisms and boundary conditions that explicate this relationship. Using time-lagged data drawn from 260 firms in the Australian food supply chains, we examined how exposure to climate change influences SCR in the face of extreme events, and whether intra- and inter-firm social capital and network complexity affect this relationship. Our analysis revealed that exposure to climate change events has a direct positive—albeit not statistically significant—influence on SCR to extreme events. Nevertheless, we found that exposure to climate change significantly and positively influences SCR to extreme events through the mediation of intra- and inter-firm social capital. Additionally, we uncovered that network complexity does not influence the effect of intra-firm social capital on SCR to extreme events, whereas it does negatively influence that of inter-firm social capital. The reliability and validity of our results were confirmed by means of robustness tests. Our study, which has several theoretical and practical implications, makes specific contributions to the United Nations Development Goals.

Within firm supply chains: Evidence from India

There are competing theories on whether vertical ownership is motivated by the transfer of physical inputs or the transfer of intangibles. Using administrative data on the universe of goods shipments in Karnataka, India, we show that the supply of goods along the production chain is an important rationale for vertical integration. First, we develop and estimate a gravity model of input sourcing, and find that: (1) establishments have a strong preference for sourcing their physical inputs from suppliers within the same firm relative to other frictions such as distance and state borders, and (2) the share of within-firm trade would be near 2% absent this preference for internal suppliers. Next, we compare this to the data and find that 38% of products are sourced by establishments exclusively from within the firm when a vertically integrated supplier exists; an order of magnitude higher than our 2% benchmark. Finally, we validate that within-firm sourcing is associated with determinants of physical supply chain transaction costs such as product specificity and R&D investment.

Modeling Supply Chain Firms’ Stock Prices in the Fertilizer Industry through Innovative Cryptocurrency Market Big Data

Due to the volatility of the markets and the ongoing crises (COVID-19, the Ukrainian war, etc.), investors are keen to exploit any potential chances to make profits. For this reason, the idea of harvesting data from cryptocurrency market users takes an innovative step. Potential investors in supply chain firms in the fertilizer industry need to know whether the observation of data originating from the cryptocurrency market is capable of explaining their stock price variation. The authors identify the innovative utilization of cryptocurrency markets’ user analytical data to model and predict the stock price of supply chain firms in the fertilizer industry stock price. The main aim of this research is to evaluate the contribution of cryptocurrency market big data as a predicting factor for the stock price of fertilizer market firms. Such a finding improves the knowledge and decision-making of potential investors in the fertilizer market. Moreover, this study seeks to highlight the benefits of utilizing cryptocurrency market big data for other financial purposes, apart from stock price prediction. The analytical data was derived from cryptocurrency websites and applications and was then processed through statistical analysis (correlation and linear regressions), Fuzzy Cognitive Maps (FCM), and Hybrid Modeling (HM) modeling. The hybrid model’s simulation showed that analytical data from the cryptocurrency markets tend to explain and predict the stock price of supply chain firms in the fertilizer industry. Such data refer to Bitcoin’s website organic keywords and traffic costs, as well as paid traffic costs from cryptocurrency trade websites/apps. A rise in Bitcoin and cryptocurrency trade websites’ organic and paid traffic costs tend to increase supply chain firms in the fertilizer industry’s stock prices, while Bitcoin’s website organic keywords variation decreases accordingly.

The changing landscape of digital transformation in supply chains: impacts of industry 4.0 in Vietnam

PurposeThe purpose of the article is to contribute to the body of research on digital transformation among members of the supply chain operating in an emerging economy. This paper researches the digital transformation trends happening across Vietnamese supply chains, by investigating the current adoption rates, predicted impact levels and financial investments being made in key Industry 4.0 technologies.Design/methodology/approachBy using a semi-structured online survey, the experiences of 281 supply chain professionals in Vietnam were captured. Subsequently, statistical techniques examining variances in means, regression analysis and Monte Carlo simulation were applied.FindingsThe findings of this study offer a comprehensive understanding of Industry 4.0 technology in Vietnam, highlighting the prevalent technologies being prioritized. Big data analytics and the Internet of things are expected to have the most substantial impact on businesses over the next 5–10 years and have received the most financial investment. Conversely, Blockchain is perceived as having less potential for future investment. The study further identifies several technological synergies, such as combining advanced robotics, artificial intelligence and the Internet of things to build effective and flexible factories, that can lead to more comprehensive solutions. It also extends diffusion of innovation theory, encompassing investment and impact considerations.Originality/valueThis study offers valuable insights into the impact and financial investment in Industry 4.0 technologies by Vietnamese supply chain firms. It provides a theoretical contribution via an extension of the diffusion of innovation theory and contributes toward a better understanding of the current Industry 4.0 landscape in developing economies. The findings have significant implications for future managerial decision-making, on the impact, viability and resourcing needs when undertaking digital transformation.

Pressured Chains: The role of Supply Chain Technology Utilisation

The institutional theory elucidates that businesses seek to provide a reasonable and relevant explanation for their behaviour because they are motivated by the need for social justification within institutional settings that shape their strategic directions and decisions. This study examined the supply chain performance implications of institutional pressures and supply chain technology among Ghanaian firms. The study employed the quantitative method and survey design. Data was sourced from 394 managers of small to large-scale firms operating in the Greater Accra Metropolis of Ghana. Data were analysed using Structural Equation Models (SEM). The study found that institutional pressures positively relate to supply chain performance. It was also discovered that supply chain technology utilisation (SCTU) mediates the relationship between Institutional pressures (INP) and supply chain performance (SCP). The finding shows the relative importance of INP and SCTU on the performance of supply chains of firms in Ghana. The study recommended that firms in Ghana and Africa must pay critical attention to supply chain technology to enhance their supply chain operations. The study provides practical implications for firms by highlighting the importance of institutional pressures and supply chain technology utilization in supply chain performance. This will provide firms with the insight to identify the most important institutional pressures that affect their supply chain technology utilization and performance. The study also encourages the use of technology in supply chain management. This can lead to more efficient and effective supply chains, which can help society by lowering prices and making more products available. The study is unique in its focus as it attempts to shift the discourse beyond how institutional pressures influence firms’ environmental and sustainability performance to how they impact supply chain performance.