Supply Chain Relationships Research Articles

Effects of Working Capital Management on Small and Medium-sized Enterprises' Profitability from the Continuity of Supply Chain Relationships

Purpose: The object of this paper is to analyze the impacts on the CCC, DIO, DRO, DPO, which are a factor for measuring WCM and profitability (ROA) from a supply chain relationship perspective between two large Korean automotive manufacturers (Hyundai Motor Company and Kia Corporation) and SMEs in the automotive parts manu-facturing industry.
 Design/methodology/approach: We used two Korean automotive manufacturers (Hyundai Motor Company and Kia Corporation) and SMEs of Korean automotive parts manufacturing industry's panel data in this research. The panel data model was used to investigate the impacts of CCC and its factors on ROA to test the hypotheses. For analyzing the panel data, a model of fixed effects was used in this research.
 Findings: According to the groups, the CCC shows a negative correlation with both ROA. DIO is negatively associated with ROA. DPO shows a positive correlation with ROA. In contrast, DPO shows a negative correlation with ROA. DPO shows a positive correlation with ROA. Conversely, DPO shows a negative correlation with ROA.
 Research limitations/implications: The limitations of this research show that because the analysis was made on the basis of the automotive industry in Korea, it is difficult to apply it to other industries in other countries. A comparative international analysis is therefore needed. The implications of this paper are the impacts of CCC, DIO, DRO, and DPO on profitability based on large enterprises and SMEs in aspects of the supply chain relation-ships, which previous studies did not cover sufficiently.
 Originality/value: Prior study mainly concentrated on the impacts of the CCC, DIO, DRO, and DPO on profitability based on SMEs in various industries from many countries. But this research focused on the CCC and profitability from the perspective of supply chain relationship between Korean large enterprises and SMEs.

Intimacy, Passion, and Commitment in Supply Chain Relationships: Examining the Triangular Theory of Love

Purpose - This study empirically analyzes the impact of intimacy, passion, and commitment on information sharing and logistics performance within inter-company relationships in the supply chain.
 Design/Methodology/Approach - We adopted the triangular theory of love and established a research model on the assumption that these elements of human relationships—intimacy, passion, and commitment—lead to information sharing and improved logistics performance. To examine their correlations, a survey was administered among professionals in supply chain-related departments in South Korea. Subsequently, we tested hypotheses through structural equation modeling using SPSS 18.0 and AMOS 18.0.
 Findings - We found that all the components of the triangular theory of love—intimacy, passion, and commitment—significantly positively impacted information sharing. Moreover, we confirmed that information sharing significantly positively impacts logistics performance, which can represent supply chain performance.
 Research Implications - Based on these results, the following conclusions can be drawn: To form new business relationships and measure performance, fundamental human relationships between supply chain participants are crucial, as is the development of tools to quantitatively measure these relationships. For quantitative performance, information sharing based on human relationships is necessary. Therefore, as qualitative relationships and quantitative performance are increasing proportionally, supply chain participants must recognize their importance.

Changes in supply chain relationships and the enterprise internationalization process

Using data from listed companies in China, we find that changes in supply chain relationships have a significant negative impact on the level of enterprise internationalization, including internationalization scale, boundary and depth. The deterioration of financial conditions and the decrease in innovation ability are the transmission mechanisms by which changes in supply chain relationships inhibit enterprise internationalization. In addition, to cope with the business risks brought by changes in supply chain relationships, enterprises tend to adopt diversified business strategies, which also weakens the adverse impact of these changes on the internationalization to a certain extent. Heterogeneity research shows that the negative impact of changes in supply chain relationships on internationalization is mainly manifested in nonstate-owned enterprises and enterprises with high supply chain concentration. These conclusions provide a theoretical and practical reference for enterprises to optimize supply chain relationships and promote the process of internationalization.

Drivers of low-carbon practices in green supply chain management in construction industry: An empirical study in China

Understanding the drivers of low-carbon practices in green supply chain management in the construction industry is essential because it largely addresses the major problem of global warming due to carbon dioxide emissions. The purpose of this study is to investigate key drivers of low-carbon practices in green supply chain management in construction industry. Based on institutional theory, relational view theory, and self-determination theory, three drivers for low-carbon practices were identified, namely, environmental regulation, supply chain relationship, and organizational culture. Then a questionnaire was administered and data were collected from the owners, contractors, designers, and other relevant parties of the construction project. Partial least squares structural equation modeling was used to analyze data. The results show that supply chain relationship and organizational culture are positively and directly correlated with the low-carbon practices level of green supply chain management. In addition, this study also found that organizational culture partially mediates the relationship between supply chain relationship and low-carbon practices. Contrary to expectations, environmental regulation has no direct effect on practices, while supply chain relationship and organizational culture fully mediate the relationship between environmental regulation and practices. As limited research has been conducted to examine the drivers for green supply chain management low-carbon practices in the construction industry, this study bridges the knowledge gap and contributes to the current knowledge system of green supply chain management. Additionally, the findings of this study can provide authorities and practitioners with a deeper understanding of low-carbon practices in green supply chain management, and helping to propose more feasible measures to reduce carbon dioxide emissions and improve environmental performance.

Can Blockchain Technology Help Overcome Contractual Incompleteness? Evidence from State Laws

Real-world contractual agreements between firms are often incomplete, leading to suboptimal investment and loss of value in supply chain relationships. To what extent can blockchain technology help alleviate problems arising from contractual incompleteness? We examine this issue by exploiting a quasi-natural experiment based on the staggered adoption of U.S. state laws that increased firms’ in-state ability to develop, adopt, and use blockchain technology. We find that, after exposure to a pro-blockchain law, firms with greater asset specificity exhibit more positive changes to Tobin’s Q, research and development, and blockchain-related innovation. Also, such firms appear to rely less on vertical integration, form more strategic alliances, and shift their emphasis to less geographically proximate customers. Overall, our results suggest that blockchain technology can help firms remedy constraints and inefficiencies arising from contractual incompleteness. This paper was accepted by Will Cong, Special Section of Management Science: Blockchains and Crypto Economics. Supplemental Material: The data files and online appendix are available at https://doi.org/10.1287/mnsc.2022.04139 .

Applying blockchain to quality food products: a marketing perspective

PurposeThe purpose of this paper is to enrich the knowledge about blockchain (BC) technology implementation in the agri-food industry by providing an interpretive framework of the key marketing opportunities and challenges, related to the adoption of BC for Geographical Indication (GI) products.Design/methodology/approachThe study adopts an explorative qualitative research design through the cognitive mapping technique applied to the cognition of different market players involved in agri-food BC projects: farmers, distributors, companies and consultancies.FindingsThis study presents a comprehensive examination of the marketing impacts of BC across various marketing objectives, including product enhancement, brand positioning, consumer relationships, market access and supply chain relationships. It highlights the capability of BC to facilitate data-enabled ecosystems within the agri-food sector, involving supply chain actors and control agencies. Additionally, the study sheds light on the challenges (technological, collaborative, political, financial and organizational) associated with the implementation of BC in the marketing of agri-food products.Research limitations/implicationsThis work provides a comprehensive examination of the relevance of BC in the marketing activities of firms, particularly in the context of quality food products. It highlights the main areas of impact and effects and emphasizes the complexity of the phenomenon, which extends beyond its technical issues. Furthermore, it offers a systematic exploration of the challenges associated with the adoption of BC in marketing activities, thus contributing to a broader understanding of the implications of BC adoption in companies' marketing strategies.Practical implicationsThe practical implications for this work addresses both GI companies and policy makers. Implications for companies relate to the market benefits associated with the implementation of BC, which allow further strengthening of market positioning, relationships of trust within the supply chain and integration between physical and digital market channels. The study also systematizes the challenges underlying the implementation of BC projects. The implications for policy makers regard the role they have to play in BC projects at regulatory, financial and policy levels.Originality/valueStudies focusing on BC applications in marketing are still limited and characterized by a very narrow perspective (especially in the food industry). This study contributes to the conceptual design of the marketing applications of BC in the agri-food sector. The value of the study also lies in having framed the marketing impacts of BC in a holistic perspective, along with the technological and non-technological challenges that are related to the integration of BC in marketing strategy and operations.

Does service modularity enhance new service development performance in supply chains: an empirical study

PurposeCustomer firms and suppliers are valuable knowledge resources that can be used for achieving superior new service development (NSD) performance. This study aims to investigate how supply chain relationship quality (SCRQ) and knowledge sharing promote the success of NSD, and examines service modularity as an important contingency factor that enhances NSD performance in supply chains.Design/methodology/approachBased on service-dominant logic, this study builds a conceptual model to empirically explore the impacts of SCRQ and knowledge sharing on NSD performance, and highlights the moderating effect of service modularity by means of survey methodology of 295 Chinese service firms to test the research hypotheses.FindingsRegression analysis results show that SCRQ has significant positive effects on knowledge sharing and NSD performance; knowledge sharing plays a partial intermediary role between SCRQ and NSD performance; and service modularity partially moderates the relationships between SCRQ, knowledge sharing and NSD performance.Research limitations/implicationsGeneralizations here are limited to Chinese service firms. Service modularity in manufacturing firms experimenting with servitization has yet to be examined and provides a good avenue for future research.Originality/valueThis study contributes to service management literature by providing empirical understanding of how service modularity affects NSD performance in multiprovider contexts. Furthermore, this study offers novel insights on the impacts of inter-firm relationship quality and knowledge sharing in modular collaborative innovation.

A Comparative Analysis of the Japanese Overseas SEZ in Phnom Penh and the Chinese Overseas SEZ in Sihanoukville, Cambodia: from the Perspective of Porter’s Diamond Model

This study focuses on the development and influence of special economic zones (SEZs), examining factors such as enterprise competitiveness, main industries, supply chain relationships, and the development environment of the zones. The lack of a consistent framework for assessing the performance and impact of SEZs has been a challenge in research. To address this, the paper employs Porterʼs Diamond Model to analyze the factors that contribute to the development and influence of SEZs, suggesting that this model can serve as a comprehensive framework for future SEZ research. The existing research on SEZs in developing countries is found to be inadequate. However, the SEZs established in Cambodia through collaborations with China and Japan have played a significant role in the countryʼs rapid economic growth. By examining two specific cases — the Japanese-invested Phnom Penh SEZ and the Chinese-invested Sihanoukville SEZ — this study identifies common operational challenges faced by developing countries in establishing SEZs. Furthermore, by exploring different collaboration models and assessing the impacts on local communities, this research offers valuable insights for policymakers and international investors in their decision-making processes.

Governing buyer–supplier relationships to foster relational rents in organic short food supply chains

PurposeThis paper aims to analyze the influence of governance mechanisms in the generation of relational rents for supplier in short food supply chains (SFSCs).Design/methodology/approachThis study used data from a survey of 181 organic producers in SFSCs, using partial least squares structural equation modeling (PLS-SEM) with the aid of the SmartPLS® 3 software for the analysis.FindingsThe results show the relationship between formal and informal governance mechanisms and relational rents. The predominance of informal mechanisms enabled a higher explanatory power than that provided by formal governance mechanisms. Further, the authors found that the complementary use of governance mechanisms has a stronger impact on generating relational rents. However, contextual factors such as relationship time, power asymmetry and uncertainty in demand have not shown any influence on governance mechanisms for generating relational rents.Originality/valueThe result sheds new light on the relevance of governance mechanisms to foster relational rents to suppliers in SFSCs. It also shows that contextual factors that affect relationships in traditional supply chains do not play a relevant role in SFSCs due to their specific characteristics.

Manufacturers’ Acquiescence to Buyers’ Sourcing Requests in Industrial Markets

ABSTRACT Purpose This study examines a three-level interdependent hierarchical supply chain and explores the antecedents and consequences of a manufacturer’s acquiescence to a buyer’s request to source a component from a designated component supplier. Methodology This research collected survey data from 212 Chinese mining companies and analyzed the data using structural equation models. Findings First, a manufacturer’s acquiescence is negatively associated with its industrial knowledge and technological capability as perceived by the buyer, but positively correlated with the relational ties between the buyer and the designated component supplier. Second, the detailing efforts strengthen the impact of perceived industrial knowledge but weaken that of relational ties on acquiescence. Third, the manufacturer’s acquiescence ensures the buyer’s power maintenance and procurement outcome certainty, and improves the manufacturer’s customer loyalty and control of sourcing information. Research implications The research highlights the significance of understanding acquiescence within an interdependent supply chain network and indicates that acquiescence will not necessarily lead to the acquiescing firm’s dependence disadvantage. Practical implications The research suggests that firms can use acquiescence to preserve interdependent supply chain relationships. When deciding whether to acquiesce or not, firms should consider not only the market perceptions of their resources and capabilities but also the supply chain networks. Detailing can be an effective method to reduce the pressure for acquiescence. Originality In the context of a manufacturer’s sourcing decisions, the research provides fresh insights into acquiescence in a three-level hierarchical supply chain relationship.

Sustainable ERP Systems: A Green Perspective

Sustainability has become a top priority for industries today. Businesses require a centralized system for sustainable management. These platforms, which use systems for sustainability, are called Sustainable Enterprise Resource Planning (S-ERP) systems, aligning environmental and social impacts with corporate processes to achieve sustainable goals. Cloud-based technologies form the foundation of S-ERP systems. Cloud technology enables energy savings and facilitates information sharing, allowing for effective management of the system. Cloud computing reduces carbon footprint and lowers operational costs. Reducing electronic waste, also known as e-waste, is important for recycling and reuse. Digital platforms improve waste management and facilitate the collection and analysis of product performance data. Acting quickly is important for the sustainability of the supply chain, and green supply chain management consists of various dimensions: internal environmental management, external environmental management, investment recovery, and eco-design. Carbon footprint decreases with the implementation of Circular Economy (CE), optimizing energy consumption and improving waste management. Digital tools transform business models. Supply chain management (SCM) and green supply chain are also important. Implementing environmental policies and criteria is effective. Sustainability indicators are considered as an absolute measurement tool that can be used to assess not only environmental performance but also social and economic performance. This study examines ERP systems and software, sustainability, and supply chain relationships, and compares current ERP with sustainable ERP from a green perspective using CO2 consumption as a measure.

Competitive actions and supply chain relationships: How suppliers' value‐diminishing actions affect buyers' procurement decisions

AbstractWhile greater competitive activity is generally associated with competitive advantage, certain competitive actions by a supplier may have spillover effects that adversely impact buying firms, leading them to reduce future purchases from the supplier. We study the effects of competitive actions in the context of vertical buyer–supplier relationships. Specifically, leveraging insights from screening theory, we examine how a supplier firm's value‐diminishing competitive actions—moves that may negatively impact buyer firms—lead to subsequent reductions in the buyer's procurement allocations and how contextual factors moderate such adverse effects. We test the associated hypotheses using a panel dataset comprising 12,690 dyadic buyer–supplier observations. A series of econometric analyses provide consistent evidence that a supplier's value‐diminishing actions are associated with decreases in the buyer's purchases from the supplier, thus highlighting the “dark side” of competitive actions. Furthermore, we find that the supplier's downstream vertical relatedness and the degree to which rival suppliers pursue value‐diminishing actions moderate this effect. Our findings, thus, add to our understanding of factors that shape the success and continuity of supply chain relationships and help supplier firms evaluate the economic viability of their competitive actions.

Supplier geographical concentration and corporate innovation

Firms should stabilize their supply-chain relationships and rely more on innovation-driven development strategies in the post-pandemic period. This study explores the effect of suppliers’ geographical concentration on corporate innovation. Using data on A-share listed firms in China from 2007 to 2020, we find that suppliers’ geographical concentration significantly and negatively affects corporate innovation. Furthermore, the channel test results show that suppliers’ geographical concentration restrains corporate innovation primarily through their strong bargaining power and by exacerbating the firm's financing constraints.

Microfoundations of supply chain sustainability practices: A social capital perspective

Despite the growth of supply chain sustainability (SCS) research, exactly how supply chain (SC) relationships lead to sustainability is not yet clearly understood. Although interest in investigating sustainability performance and practice in a broader manner is evident, little attention has been given to the microfoundations of SCS. To address this knowledge gap, our study was grounded on social capital theory because microfoundations are related to individual behaviours and choices. This paper describes our investigation into ways that microfoundations of social capital operationalise SCS practices in both honey and cashew nuts SCs. We employed a dual case study method comprising 39 interviews, direct observations and an examination of secondary data, which allowed for empirical data triangulation. An inductive analysis of the data uncovered seven microfoundations of SCS: trust, reciprocity, close relationships, honesty, commitment, compliance and networks. These microfoundations triggered SC processes (i.e. supplier selection, transparency, supplier loyalty, leadership, training, learning, research and development, regular meetings, joint partnerships and certifications) towards enhanced sustainability outcomes on a macro level. Based on these results, an analytical framework was developed to illustrate how SCS practices are operationalised by microfoundations and to foster managers’ awareness of their SC relationships (i.e. familiar, institutional, commercial or normative). This paper contributes to both theory and practice by carving out the microfoundations of SCS and SC processes that lead to enhanced sustainability outcomes.

Technology Training, Buyer-Supplier Relationship, and Quality Upgrading in an Agricultural Supply Chain

Abstract This paper examines the impacts of technology training and buyer-supplier relationship on technology adoption and quality upgrading. We randomly varied subjects of each training group across farmer–exporter clusters—farmers, exporters, both, or none—and provided training on Good Agricultural Practices (GAP). We find that training farmers enhances technology adoption and quality upgrading. Yet, the effects are much stronger when farmers and exporters are trained together. We document a plausible mechanism to explain this finding: joint training improves buyer-supplier relationship, which facilitates contract trade between farmers and exporters. We find no effect of GAP certification eligibility on technology adoption.

Application of social media in supply chain 4.0 practices: a bibliometric analysis and research trends

In recent years, although scholars and practitioners in the supply chain (SC) field have become increasingly aware of the importance of social media for multipurpose applications, the subject remains unclarified about its functions and outcomes, especially in the 4.0 context. This review paper aims to visualize the big picture and structure of knowledge related to the application of social media in managing supply chains by adopting a bibliometric analysis on a sample of 354 research articles retrieved from the Web of Science during the period between 2008 and 2022 with two widely used bibliometric techniques: co-citation and co-word analysis. We discovered five major clusters of how social media is used in the supply chain context, including (1) in enhancing supply chain sustainability and business transformation, (2) social media analytics as an effective technique to extract business value, (3) in facilitating communication and coordination in the supply chain network, (4) in promoting social interaction and customer relationship management, and (5) in the development of supply chain relationship management. These will enable practitioners to adopt early changes in their SC, allowing them to become competitive and gain market leadership. Supply chain managers can connect with other SC stakeholders and share information through social media to improve operations, establish relationships, reduce risks, and altogether reach for sustainability. Potential research ideas are also offered for future investigation.

Information sharing in African perishable agri-food supply chains: a systematic literature review and research agenda

PurposeThe aim of this paper is to provide a review of state-of-the-art literature on information sharing in the context of African perishable agri-food supply chains (AFSCs). In doing so, the authors hope to stimulate further research and advance both theory and practice on African perishable AFSCs, which is a relevant, but under-investigated context.Design/methodology/approachThe authors’ systematic literature review covers a period of 21 years (2000–2021). After providing the bibliometric and methodological insights related to this sample of literature, the authors provide a detailed analysis and discussion of the key aspects of information sharing in African perishable AFSCs, based on a review framework grounded in the information sharing literature.FindingsThe authors’ review revealed that information sharing in African AFSCs is still in its nascent stage. Findings are based on four themes of (1) why share information (mainly to gain market access), (2) what information is shared (price and market information) (3) how it is shared (still traditional communication, with limited adoption of digital technologies?) and (4) antecedents, drivers and barriers (technology adoption and socio-economic background of Africans).Research limitations/implicationsThis paper outlines a research agenda for advancing the theory on information sharing in AFSCs. Furthermore, the review highlights the importance of context, supply chain structure, relationships, product characteristics and culture in studying AFSCs.Originality/valueA review on information sharing in African perishable AFSCs does not appear to exist in operations and supply chain management (O&SCM) and agribusiness journals.

Energy security performance evaluation revisited: From the perspective of the energy supply chain

The previous research on energy security performance (ESP) has often treated the energy security system as a “black box,” meaning that it has not explored the internal composition structure of the system or the linking relationships of the energy supply chain. This study proposes a comprehensive evaluation framework and a comparative study of ESP evaluation in 32 OECD countries over 20 years, dividing the energy system into four processes. A dynamic network Data Envelopment Analysis (DNDEA) model is used to analyze the energy system's overall performance and each process's performance, considering their internal structure and dynamic characteristics. The ESP results show that half of the 32 OECD countries had perfect efficiency scores, while the other half had scores ranging from 0.0222 to 0.74. The study also found more progress in the second half of the 20-year period. In terms of the four individual processes, the total primary energy supply (TPES) and total final energy consumption (TFEC) processes had consistently high scores, while the secondary energy resources (SER) process had room for improvement. Based on a cross-check of the various ESP results over the past 20 years, as well as the ESP in the most recent decade, seven countries (Austria, Canada, Finland, South Korea, Luxembourg, Norway, and Switzerland) were identified as benchmarks for their strong performance, and the study examined the indicators underlying their success. The study also identifies areas for improvement in underperforming countries and determines future directions for improvement.

Multi-tier supply chain behavior with blockchain technology: evidence from a frozen fish supply chain

Relationships in multi-tier supply chains (MTSCs) are complex and require constant information sharing. For MTSCs involved in perishable product distribution, blockchain technology (BCT) is one of the most promising technologies that can ensure products’ traceability and safety. This study examines a Portuguese MTSC for frozen fish products piloting BCT adoption for its supply chain (SC) practices. The goal is therefore to explore the consequences of information availability inherent for BCT adoption pilots in the SC context. This study follows a mixed-method approach, with qualitative and quantitative data collection techniques. Three semi-structured interviews with players from a single frozen fish SC, including supplier, transporter, and retailer were conducted. MAXQDA Analytics Pro 2022 software was used for further coding and data analysis. An online survey among retail chain consumers was conducted resulting in 112 responses. Regression analysis and Pearson correlation test were further performed via IBM SPSS Statistics software. Data collection for both parts took place between December 2021 and July 2022. This study explores four layers in the SC– including supplier, transporter, retailer and final consumer. Findings revealed a current lack of extensive and detailed information from upper tiers regarding products’ characteristics. Despite being hyped as a “trust-enabling” technology, BCT was found not to eliminate the need for trustful relationships between players prior to adoption, as information input requires human intervention. Even in those cases when the traceability option is not of major interest to final consumers, findings revealed a higher probability of purchasing fish products that have traceable information available.

Analysis of Supermarket Supply Chain Management

Supply chain management is one of the main challenges in the development of the retail industry. As an important form of retail trade, supermarkets have attracted the attention of the whole retail industry. At present, large, medium, and small supermarkets are facing complete market competition, and each supermarket enterprise has more or less problems in its own supply chain relationship. The problem of how to solve the problems of various types of supermarket enterprises, improve their management programs, and win the market has become particularly important. Based on the existing literature and statistical data, this paper analyzes the problems existing in the supermarket retail industry in China, focusing on the deficiencies of the current supply chain and how to manage and optimize the supply chain. The result shows that the supply chain in domestic supermarkets still has a long way to improve. There are mainly five types of problems, which are supplier problems; delivery problems; location problems; display problems; and pricing problems. These kinds of problems might cause the loss of customer loyalty. The solution consists of three parts: diversifying the product supplier to ensure that the popular product never runs out; replacing the products shelf so that the customer can grab the popular product at first sight; and replacing the products shelf so that the customer can grab the popular product at first sight. Finally, be precise with the products pricing strategy; stress the price of the popular products and increase the profit for the unpopular ones.