International Journal of Value Chain Management (16 papers in press)
The effects of reverse logistics on cost control abilities: An insight manufacturing companies in Malaysia
by Yudi Fernando, Shih Sim Tan Sharon, Ika Sari Wahyuni-TD, Blanka Tundys
Abstract: This study aims to examine the effect of reverse logistics on the ability of manufacturing firms to control costs. The data were collected from manufacturing firms registered under the Federation of Malaysia Manufacturers (FMM). A total of 275 manufacturing firms participated in this survey. The Variance-based Structural Equation Modeling (SEM) with the Partial Least Square (PLS) was used to validate the measurement constructs and test the proposed hypotheses. The statistical results indicated that three dimensions constructs of reverse logistics: (1) remanufacturing, (2) material recycling, and (3) green disposal have a significant and positive relation with the ability of firms to control costs. The firms need to practice green operations and sustainability orientation activities to maintain lower costs, improve the quality of products, stakeholders well-being and lower carbon footprint for greener environments.
Keywords: reverse logistics; remanufacturing; material recycling; green disposal; operations strategy.
Assessment of bargaining power, market risk and coordination costs in the Thailand cassava marketing channel
by Shahab e Saqib, John K. M. Kuwornu
Abstract: This paper examined the balance of bargaining power and market risks among actors, as well as the coordination costs in the Thai cassava marketing channel using annual data spanning 1980-2007. The results revealed that cassava producers were exceedingly risk averse and that there was bilateral bargaining power between the producers and wholesalers. The variability in profit for wholesalers was higher than that of producers. The coordination cost generally showed positive linear trend over the years and this demonstrates the existence of information asymmetry in the marketing channel. The policy recommendations are presented.
Keywords: Bargaining power; market risk; coordination cost; cassava; Thailand.
Characteristics of self-managing teams in rapid product development projects
by Harri Kaikkonen, Harri Haapasalo, Kai Hänninen
Abstract: Product development organisations are facing an increasing amount of rapid, small-scale development projects to fulfil market and customer needs. Self-managing teams have been proposed as effective means in creating new radical innovation, but their use has not been widely studied in smaller and faster product development projects, which are increasing in numbers. A multiple-case study was conducted to analyse seven business-to-business companies product development models and the use of self-management in their rapid product development teams. The findings indicate that the companies use very similar characteristics of self-management to support rapid product development projects, but all characteristics of self-management do not support rapid product development teams. Notable success factors for rapid product development were dedicating competent developers for rapid projects, co-locating the development team, effective face-to-face communication and implementing a defined, but flexible workflow for rapid product development.
Keywords: product development; new product development; NPD; product development process; self-management; self-managing teams; self-organization; rapid product development; B2B; agile methods.
Customer Care Excellence in the New Product Development Process: A Case Study
by Ville Isoherranen, Jukka Majava
Abstract: Excellence in product development can be achieved by integrating various stakeholders requirements into a winning offering. After-market services have become increasingly important for companies, as digitalisation enables new business models and revenue streams. The integration of customer care must be performed in the product development (PD) process already in the early concepting and development phases in order to ensure an excellent customer experience. The traditional elements of care spare parts, service tools, and support must be coupled with new services. Future cutting-edge products demand new self-support, repair and upgrade capabilities that are enabled by the digitalisation of product-service assets and low-cost distribution platforms. This study aims to increase knowledge how care capabilities can be created in PD by analysing the critical care inputs and their effects in the product concepting phase. In addition, the critical care outputs in the case companys product development process in the main phases are presented.
Keywords: customer care; design for care (DfC); design for excellence (DfX); digitalisation; new product development (NPD.
Development of an Ant colony optimisation-based heuristic for a location-routing problem in a two-stage supply chain
by Vinay V. Panicker, Vamshidhar Reddy M., Sridharan R.
Abstract: The location-routing problem (LRP) considers facility-location and vehicle-routing decisions. These decisions have to be tackled simultaneously since they are interdependent. In this work, a two-stage LRP is considered wherein customers are to be served from a number of plants through a number of depots. Since LRP is an NP-hard problem, heuristic approach becomes the only alternative to solve the problem as the problem size increases. An ant colony optimization-based heuristic is proposed to solve the problem. For the purpose of performance evaluation of the proposed heuristic, various problem sizes are generated and the computational results are analysed. The results of this study reveal that the proposed heuristic is efficient for solving location routing problem in a two stage supply chain.
Keywords: Ant Colony Optimization (ACO); Supply Chain Management; Location Routing Problem; Logistics; Heuristic.
Leanness Assessment in Automotive Industry: Case Study Approach
by Masoud Rahiminezhad Galankashi, Syed Ahmad Helmi, Muhammad Hisjam
Abstract: The main objective of this study is to develop a framework to assess the leanness of companies in the automotive industry. Although Lean Manufacturing (LM) has been discussed in previous studies, leanness assessment is less investigated. Therefore, to fill this gap, this study is conducted to assess the leanness of three manufacturing companies with regard to different supply chain drivers. Principally, six drivers of facility, inventory, transportation, sourcing, pricing and information are selected as the major components of supply chains. The lean-related activities of each driver are identified and a benchmarked questionnaire is applied to assess the leanness of companies. Next, different leanness of each driver is calculated accordingly. An overall quantity of leanness is also provided for each company. Finally, some managerial insights and future research directions are recommended. According to the results, second case study has the highest degree of leanness in comparison to other two companies. In addition, this company has the best performance with regard to each supply chain driver.
Keywords: supply chain strategy; lean manufacturing; leanness assessment; automotive industry; framework.
An Integrated Model of the Adoption of Radio Frequency Identification Technology in the Hotel Industry
by Javad Khazaei Pool, Shabnam Doosti, Reihaneh Alsadat Tabaeeian, Marjan Mortazavi
Abstract: Radio frequency identification (RFID) represents a brand new technology that promises to improve process efficiency in hospitality settings. The technologyorganizationenvironment (TOE) framework and technology acceptance model (TAM) are applied to gain insights into influences on the adoption intention of RFID in the hotel industry. By adopting the TOE framework and TAM as a theoretical base, this descriptive-survey study used questionnaire to collect data in 92 different hotels in Iran. The proposed research model is tested against using structural equation modeling (SEM). The Results showed that TOE framework and TAM have positive effects on intentions to use RFID. Our results support the proposed conceptualization and shed significant and useful insights on the key factors associated with hotels' adoption of RFID.
Keywords: Hotels; RFID; TOE framework; TAM; Technology adoption.
Application of Fuzzy technique to make closed loop decision in clothing value chain
by MANOJ KUMAR PARAS, Antonela Curteza
Abstract: Increasing concern over the environment has encouraged consumer and industry to think about the huge amount of discarded clothes. This study has considered four methods: direct reuse, up-cycling, down-cycling and incineration to close the loop of clothing value chain. Three factors (material, economy and technology) affecting closed loop decision have been identified. These factors have a different degree of influences on the decision making the process of closed loop clothing value chain. Research data has been collected from the reverse logistic experts from clothing industry. The fuzzy technique has been used to quantify the response of experts. Findings have been analysed with the help of analytic hierarchy process technique. The material factor is found to dominating factor in the closed loop decisions over economy and technology. Up-cycling and direct reuse emerged to be the best alternatives in the current scenario. The clothing companies may replicate this approach of developing hierarchy model to choose best alternatives for the closed loop value chain.
Keywords: Closed loop chain; Clothing value chain; Reuse; Fuzzy technique; AHP.
Integration with Transport Suppliers and Efficiency of Travel Agencies
by Dejan Dragan, Abolfazl Keshavarzsaleh, Borut Jereb, Darja Topolšek
Abstract: The performance of Tourism Supply Chain (TSC) is robustly tied to efficiency of all entities involved, including the travel agencies. Concomitantly, the efficiency of TSC itself can be obtained through Tourism Supply Chain Management (TSCM). This paper goes far beyond the borders of TSC and TSCM concepts and carries out the analysis of relationships between External Integration (EI) with transport suppliers and the efficiency of travel agencies. To do so, Data Envelopment Analysis (DEA) and Structural Equation Modelling (SEM) are used. The obtained results showed a noticeable influence of External Integration (EI) with water and air suppliers on the efficiency.
Keywords: tourism supply chain; external integration; transport suppliers; efficiency of travel agencies.
THE DYNAMICS IN CUSTOMER-SUPPLIER RELATIONSHIPS IN SOUTH AFRICAN AUTOMOTIVE SUPPLY CHAINS
by Aletta Tolmay, Johanna Badenhorst-Weiss
Abstract: Although the automotive industry is of utmost importance to the South African economy, the industry is faced by numerous challenges brought about by increased globalisation pressures including strained customer-supplier relationships resulting in increased supply chain risks. Literature suggests automotive component suppliers have limited scope for differentiation, and are left with only the relationship to add value, which promises to mitigate risk. The study reported on in this paper asked the following question: What is the nature of customer-supplier relationships in automotive supply chains in South Africa with regard to the dynamics between the elements of relationship value, trust and commitment? Through hierarchical regression, trust revealed a direct and strong correlation with relationship value, whilst commitment acted as a partial mediator. An important risk mitigation strategy might be the investment in close customer-supplier relationships. This paper makes a valuable contribution towards the theoretical conceptualisation of relational governance within automotive supply chains.
Keywords: Trust; commitment; relationship value; relational governance; automotive industry.
Bargaining power, market risk, and coordination costs in the cassava starch marketing channel in Thailand: A three stage principal-agent model and application
by John K. M. Kuwornu, Shahab E. Saqib, Marife L. Moreno
Abstract: This study examined bargaining power, market risk and coordination costs in the Thailand cassava starch marketing channel using a three-stage principal-agent marketing channel model using annual data over the period 1980-2015. The empirical results revealed that the fixed compensations for producers decreased over the period of study and reached neagtive levels in 1999 and 2008-2015. These results indicates that the producers had to make specific investments to enhance the performance of the marketing channel in these years. The fixed compensations for the wholesalers were positive and increased over the period of study. This indicates that in the market relationship between the producers and the wholesalers, the wholesalers possess higher bargaining power than producers. In general, the producers were risk seeking whereas the wholesalers risk were averse over the study period. The processors being risk neutral bear more risk in the marketing channel than producers and wholesalers, while the producers bear more risk than the wholesalers confirming the finding that the producers were risk seeking while the wholesalers were risk averse. The coordination cost of the marketing channel showed negative trending pattern over the period of study. This result implies that information flow in the marketing channel has improved over the years and this would be realized in the improved performance of the cassava starch marketing channel in Thailand. The findings have implications for the development of the cassava sector in Thailand.
Keywords: Cassava starch; market risk; coordination costs; three stage principal-agent marketing channel model; Thailand.
Supply chain improvement and product diversification through integrated zoning of Bangladesh rice milling industry
by MOAZZEM HOSSAIN, Rawnak Jahan
Abstract: The purpose of this paper is to assess the integration status and associated weaknesses of informal rice milling industry in Bangladesh and explore the achievable benefits through reorientation of the informal rice industry into integrated and specialized rice industry zone(s) (SRIZ). The study investigates the feasible integrated development of rice and paddy/rice oriented supplementary industries through clustering and grouping into SRIZ. Furthermore, it identifies new opportunities in terms of business, technology up gradation, product diversification, industry sustainability, standardization and food security in an otherwise traditional rice supply chain of Bangladesh and similar other rice producing developing countries Both structured and semi-structured questionnaire survey have been conducted to know the detail characteristics of sporadically developed rice manufacturing industry in various parts of Bangladesh. Using a proposed integration evaluation criteria rice supply chain integration status is evaluated along with identification of associated problems due to current poor integration situation. Analysis of endogenous and exogenous shortcomings of informal rice mills system in Bangladesh engenders solution mechanisms through promotion of integration, clustering and specialized zoning of rice mills. The findings of this research will be useful both for policy makers and agribusiness researchers in rice-producing countries, especially, which have informal setup of rapidly growing rice mills.
Keywords: Rice Supply Chain; Chain Integration; Clustering; Specialized zone; Business with rice by-products; Bangladesh and Rice producing countries.
Supply Chain Performance Management A Structured Literature Review
by Nilesh Wankhade, Goutam Kumar Kundu
Abstract: From supporting function to business enabler, the role of supply chain (SC) is evolving significantly. Well managed SC brings cost benefits, agility and flexibility in the businesses and provides competitive advantage and differentiation strategy. Changing trends, roles and business environments also brings the complexity in the way SC is coordinated, controlled and managed. To address this complexity and manage the supply chain, effective SC performance management is must. The concept of managing the performance of entire chain is evolving rapidly and attracting the attention of academicians, consultants and researchers. Using a structured approach, this research reviews the literature on SC performance measures, metrics and management and also focuses on the various theoretical frameworks, approaches and their classifications based on content, context and process. Further this article also provides the taxonomy in the field of SC Performance, its definitions and interpretation to derive various metrics in various frameworks used for SC performance measurement. In addition, potential future directions and a commentary on SC performance management, managing strategic fit, contextual traits, trends in SC and its impact on SC performance management, SC visibility, collaboration, trust and performance followed by SC performance management & risk management are provided to conclude the review.
Keywords: Supply chain management; Supply chain performance management; SCPM; Supply chain metrics; Supply chain performance frameworks.
Special Issue on: ICOM 2015 Competing through Innovation Management
MODELS OF INNOVATIONS: AN OVERVIEW OF PERSPECTIVES AND EXPOSITIONS
by Bala Krishnamoorthy, Madhavi Damle
Abstract: Competition and Global Markets directly affect the expanding economy of a country and survival of a Business. The pressure of competitive environment precipitates the need to innovate and create an extra edge or the value that will help the customer choose better when all things are equal. Innovation is crucial in maintaining strong economic growth and increasing global competition. The innovation invigorates brand growth and customer loyalty for a sustainable period of time and even pre-empts competition. Over last two decades, there is a considerable body of knowledge for the concept of innovation and has accumulated significant patterns.
In this paper, we bring forth awareness about the impact that innovation has for the changing dynamics of the business, which is to deliver value for the demands of pulsating markets. The paper attempts to perceive various aspects of innovation having an impact on the business model and the markets. Furthermore, paper recognizes various related aspects as Convergence of Subcultures and Subdomains, Innovation-Based Economy, Integration of digital virtual systems; their seamlessness and ideal framework for an innovative Business Model. The businesses, today, in the digital age are Information Communication Technology driven.
We also look at Innovation, for the developments within the business and look at the changing aspects of its impact on the market behaviors done here, with focused perspective for the review of models of Innovation. We identify the forces for that bring about the need to innovate for value creation. The difference in our finding is the market phenomenon that is changing, how it affects the sustainable value creation. The emerging realities today under Digital economy, where concepts like digital investments, the digital value of a business and Digital Depth, Intranet and Depth of Data, as emerging concepts, continually make for important components in the value creation, delivery, and sustenance.
Keywords: Innovation; knowledge management; Diffusion of Innovation; Models of Innovation; Business Model Innovation.
A Front-Foot Approach to Conflict Triggered by Favoritism
by Sam Eldakak, Tara AL Hadithy
Abstract: The purpose of this paper is to create a comprehensive image of favoritism by disclosing the consequences of ethical decision-making and deliberate on how it can be a front-foot approach to conflict that is triggered by favoritism. We argue that the present literature review is split regarding the views on the concept of favoritism and its implications on the society. Some philosophers and psychologist have agreed and disagreed on the impact of favoritism on organizations. Hence, the paper adopts both the Ethical Climate Topology and the Five Aspects of Ethical Climate outlined by Victor and Cullen (1988) to explain the correlations between a moral environment and favoritism which leads to an effective encapsulation of the relationship between ethical climate and favoritism with regard to decision-making and its interrelations with subjectivity and accountability. Conclusions have been drawn and implications have been discussed.
Keywords: Favoritism; Conflict; Consequences; Ethical Theories.
Low cost carriers versus traditional carriers and its impact on financial performance : A comparative study on the UAE airlines companies
by Sherine Farouk, Jacob Cherian, Ingy Shaaban
Abstract: The initial appearance of U.S. low-cost carriers forced incumbents to create new forms of competitive advantage. However, these hindrances proved to be successful for nearly two decades. In any case, a new report by the NBK capital, an investment bank based in Kuwait recorded that in the Middle East, especially in the Gulf region, the low cost carrier sector has established itself as a thriving industry with lots of potential in hardly four years. This paper endeavors to highlight some of the differences between the two markets and it gives an explanation as to how the advantages of the Middle East low cost airlines would be enough to bypass the financial performance of the traditional carriers.
Keywords: Financial Performance; Middle East; Low Cost Carriers; Airline industry.