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What is the right supply chain for your product (Fisher, 1997)

Why haven’t the new ideas and technologies led to improved performance?
Because managers lack a framework for deciding which ones are best for their
particular company’s situation
...
g
...


Is your product functional or innovative?
1
...

2
...

3
...

4
...

5
...

5
...
Physical function is readily apparent and includes concerting raw
materials into parts, components, and eventually finished goods, and
transporting all of them from one point in the supply chain to the next
...
2
...

6
...
In this instance, the important flow
of information is the one that occurs within the chain as suppliers,
manufacturers, and retailers coordinate their activities in order to meet
predictable demand at the lowest cost
...
That approach is exactly the wrong one for innovative products
...

8
...

9
...

10
...
(be chose from speed and
flexibility, not for their low cost)

Devising the ideal supply-chain strategy
1
...
Whether their company’s supply chain is physically efficient or responsive
to the market
...
Employ a matrix
Functional products
Efficient

Innovative products

Match

Mismatch

Mismatch

Match

supply chain
Responsive--

4
...
A sure sign that a company needs to move to the left is if it has a product
line characterized by frequent introductions of new offerings, great variety,
and low profit margins (example of toothpaste)
6
...


Efficient supply of functional products
1
...

2
...

3
...

4
...


Responsive supply of innovative products
1
...

2
...

3
...
Hedge against the remaining residual uncertainty with buffers of inventory
or excess capacity
...
Mass customization: building the ability to customize a large volume of
products and deliver them at close to mass-production prices
...
Realigning the two is hardly easy
...
(Porter’s generic strategy)

An interaction approach to global sourcing: A case study of IKEA
(Hultman et
...
How the
driving forces of global sourcing have been influenced by interaction between
firms
...
A key component in the low cost strategy at IKEA has been to own only a
small proportion of the means of production
...
The remaining part of the IKEA case study focuses on the global sourcing
of a particular IKEA product, namely the PAX wardrobe system
...
Two main product groups make up the PAX wardrobe system: the
wardrobe frame and a set of sliding doors in various designs
...
The main reason for sourcing tempered glass in China was cost reduction
5
...
g
...


Discussion
1
...

2
...

3
...

4
...

5
...

6
...
1
...

6
...
In sourcing tempered glass for the PAX wardrobe system, Sapa
leveraged IKEA’s knowledge and established relationships; Sapa
could not have managed the sourcing process without the support and
actions of IKEA, including IKEA Components, which performed an
important bridging role
...
3
...

6
...
It was a two-way process and IKEA and Sapa were mutually
dependent
...
Interactions amongst supply network actors, and the effects on the global
sourcing process, were observed not only in the focal relationship – the
relationship between IKEA and Sapa – but also between the supply
network and IKEA
...
Internationalization is the result of interactions between actors and where
one actor’s decision to internationalize can have repercussions across all
the interacting actors in the network

9
...


HOW CAN SUPPLY MANAGEMENT REALLY IMPROVE PERFORMANCE? A
KNOWLEDGE-BASED MODEL OF ALIGNMENT CAPABILITIES
(Handfield, et
...


“What are the characteristics of an effective supply management alignment
process that results in improved outcomes?”
...
The key competitive and business priorities are often expressed through
supplier performance specifications or statements of work
...
Establishing a strong relationship with business unit stakeholders provides
procurement executives the opportunity to establish supply management
goals that are not only consistent with organizational goals, but also
contribute directly to their success (Chen et al
...

3
...
, 2006; Lawson et al
...


H1: Internal stakeholder alignment is positively related to external supply base
alignment
...
Organizations need to establish strategic resources in the form of
capabilities that enable the engagement of internal stakeholders and
creation of value (Wernefelt, 1984)
...
To be able to create strategic alignment, buying organizations must create
mechanisms to guarantee that both internal stakeholders are able to learn
the value of the new category management approach and behave
accordingly (Hult, 2000)
...
Systems orientation is deemed an integral part of the organizational
learning process because it helps to predict events, adjust processes, and
facilitate the free flow of information from the environment
...
Cooperative relationships between strategic buyers and suppliers require
high levels of information exchange (Chen et al
...
, 2009)
to facilitate the streamlining of inter- and intra-organizational processes,
joint new product development, and cost reduction
...
It has been suggested that procurement should have deep knowledge of
the business function, and in some cases may have prior experience in
that same function but in a business or marketing role
...
Procurement’s true accountability is to build a strategy that resolves the
need with an often broad and difficult set of market conditions
...
“system orientation,” defined as the degree to which the members of the
focal supply management unit stress the interconnectedness and mutual
dependence of the activities in the supply management process (Hult et al
...

H2: Purchasing process structure (systems orientation) is positively related to
supply base alignment
...
Supply management involves both a team orientation and a systems
alignment (process structure)
...
Learning occurs through the generation and dissemination of information
in the form of stakeholder requirements, which are effectively translated
via a strong routinized process capability (Peng et al
...

3
...
, 2007)
...
Firms may have a strong process structure and systems orientation, but if
the focus of these efforts do not match those of stakeholders, the right
outcomes will not be achieved (Cousins, Lawson et al
...

5
...
, 1999)
H3: The interaction of internal stakeholder alignment and purchasing process
structure has a positive effect on supply base alignment
...
In the current global environment, the ability of suppliers to quickly adapt
and change in response to the evolving needs of customers has been
documented as paramount for performance (Handfield, 2013)
...
In a complex global supply chain network, network agility is even more
important than low cost and requires a close working relationship,
established performance priorities, and open lines of communication
between buying companies and their suppliers
...


Agility and Alignment Improves Supplier Performance
1
...
,
2002, p
...

2
...

H5: Supply base alignment has a direct and positive effect on buyer

performance improvement
...


Our results point to the importance of common goals, aligned metrics, and
defined processes that occur in parallel between purchasing and stakeholders,
purchasing and suppliers, and the combined synergistic effect of these
performance measurement systems on network agility performance
...


An alternate emerging approach is to organize around internal categories
based on bilateral characteristics defined on the one hand by the needs of
constituent internal stakeholders, but secondarily by the characteristics of the
external supply marketplace
...


in

increasing
When

a

numbers,
change

international

occurs

these

inter-dependencies induce a number of positive and negative effects upon
organizations throughout the network
...
(aim)

‘‘Domino effects’’ in a network are interpreted in this paper as successive
changes in relationships and nets and have effects on the positions of
organizations in a net as well as on the total network of an industry
...
These three are triggered
by the initial change
...
’’

The ‘‘domino effects’’ in a network of interconnected organizations could thus
be regarded as a change (i
...
, establishment or breaking) of a relationship,
triggering a sequence of changes in other relationships within a relatively short
period of time
...


Domino Effects in Networks
l

The initial change: A large or radical change takes place in the network
through a joining of nets or a splitting of a net in the form of acquisitions,
establishing or splitting large strategic alliances, etc
...
Some more attractive organizations with
fast reactions might find new partners directly
...

Some other non-involved representatives that are dissatisfied with their
partner take the opportunity to switch
...
New effects of new acquisitions, joint ventures, etc
...
Further some shorter term solutions from the first stage are
switched to longer term
...
Other non-involved organizations
take the opportunity to switch or enter the market
...


l

Change stage 3: Partners to the representatives switching to the first stage
ex-agents as well as agents in the second stage are searching for new
representatives
...
New companies are entering the market as
partners
...
Changes related to the
initial change are getting more and more blurred on account of other

contextual changes
...


Proposition 2: The higher the degree of integration and complexity of the
network, the more likely it is that domino effects will arise and spread when a
large change takes place
...
Domino effects continue partly as a result of the companies’ interest in not
reducing the degree of extension when leaving one net and joining another
...
The more concerned the organizations are to keep and develop existing
business and international customers, the higher the likelihood of them
selecting a well established representative in the same field, which normally
means selecting a competitor’s representative, thereby increasing the
development of domino effects
...
(choosing
a new partner working with a competitor or which was part of a competing net
...


As one representative becomes connected to a competing net, integration as
well as the trust and commitment to the existing relationship decrease
...
Therefore companies wish to either intensify or
finish the cooperation as quickly as possible
...


International integration seems to be both a reason for changing and
continuation as well as an effect of the changes as more group organizations
in the cases are working together
...
A knowledge base would be to learn which organizations and nets that
form the total industrial network and how they are connected
...
1
...

2
...
(where to find latent conflicts
and companies waiting for a change
...
Possible indirect relationship changes should be thought through before
embarking upon the switch and before making the extra financial capital
available
...
1
...
(better possibilities to influence and foresee
changes of strategic relationships within the net
...
In other cases, efforts to decrease dependencies in the net should be

considered
...
Since the domino effects shorten the decision time and since the suitable
partners might not be available,some pre-planned short run alternatives
might be a possibility while planning long term solutions
...
1
...


Supply management capabilities, routine bundles and their impact on
firm performance
(Day, Lichtenstein and Samouel, 2015)

Our study is the first to separate out ostensive and performative patterns of
routine bundles with supply management capability as a second-order latent
construct
...


The routines characterising a supply management capability should
encapsulate the diversity of repeated routines involved in day-to-day supplier
interaction, both in terms of the observable practices as well as the written
rules and scripts for addressing supply management
...
Supply management capability is a second-order latent
construct whose sub-dimensions are supply management integration (H1a),
coordinated

sourcing

(H1b),

collaboration

management

(H1c),

and

performance assessment (H1d)
...
Supply management integration (SMI) is the alignment and integration of
supply management practices across the firm (Narasimhan and Das,
2001), and is a pivotal routine if a firm is to leverage the greatest value
from its supply base (Narasimhan and Das, 2001; Chen et al
...
, 2008)
...
1
...


1
...
This degree of influence encourages a shared understanding about supply
management matters extending across the firm, and results in those with
supply management skills being involved in key make or buy decisions
...
3
...
Co-ordinated sourcing (CS) is reflective of the need to formulate sourcing
strategies, with evidence showing this group of activities has a direct
impact on firm performance (Carr and Smeltzer, 2000; Cousins, 2005)
...
1
...

3
...

3
...
Opportunities for the routine sharing of innovation will also be shared
between close partners
...
Performance assessment (PA), according to Paulraj et al
...

4
...
Such approaches account for the internal and external tracking of
performance, which needs a dual internal (self-assessment) and external
(supplier) assessment schema
...
Supply management capability does not have a positive direct
impact on firm-level financial performance
...
Supply management capability has a positive impact on
firm-level operational performance
...


Supply

management

capability's

impact

on

financial

performance is mediated through operational performance
...


Our evidence, in summary, suggests a pattern of routines which appear to be
the constituents of a core architecture for supply management capability
...
It is useful to learn and perfect particular patterns of day-to-day activity
such as the co-ordination of purchases across the organization, enabling
methods to assess the firm’s total expenditure with suppliers, and business
process which control the cost of inputs from suppliers
...
It is striking that such routines, and those involving collaboration
management, might not simply be within the control and remit of supply
management personnel
...
It will be instructive for practitioners therefore to consider how the
development, control and accountability for repeated and reliable routines
inter-play with how supply management capability is executed
...
In essence, it seems that a routine-based perspective of supply
management may enable a more cross-functional way of ‘seeing’ how
supply management occurs within and between organizations
5
...


From purchasing (an operating function) to supply management (a strategic
one)
...


Attractive new options, or serious vulnerabilities, or both, may come to light as
the assessment explores questions like these:
1
...
1
...

2
...
How much risk is acceptable
3
...
Vendor mix, extent of contractual coverage, regional spread of supply
sources, and availability of scarce materials all contribute to the
company's supply risk profile
...
What make-or-buy policies will give the best balance between cost and
flexibility?
5
...
The profit impact of a given supply item can he defined in terms of the
volume purchased, percentage of total purchase cost, or impact on
product quality or business growth
...
Supply risk is assessed in terms of availability, number of suppliers,
competitive demand, make-or-buy opportunities, and storage risks and
substitution possibilities
...
Purchased items into the categories: strategic (high profit impact, high
supply risk), bottleneck (low profit impact, high supply risk), leverage (high
profit impact, low supply risk), and noncritical (low profit impact, low supply
risk)
...
It systematically reviews the supply market, assessing the availability of
strategic materials in terms of both quality and quantity, and the relative
strength of existing vendors
...
The company then analyzes its own needs and supply lines to gauge its
ability to get the kind of supply terms it wants
...
Of the contrasting criteria of supplier and company strength, six
comments:
3
...
Suppliers' capacity utilization: the risk of supply bottlenecks
...
2
...

3
...
1
...

3
...
2
...

3
...
Uniqueness of suppliers' product: natural scarcity, high technological

sophistication, and/or entry barriers
...
4
...
5
...

3
...
Potential costs in the event of nondelivery or inadequate quality: extra
cost and may influence production
...
On items where the company plays a dominant market role and suppliers'
strength is rated medium or low, a reasonably aggressive strategy (exploit)
is indicated
...
On items where the company's role in the supply market is secondary and
suppliers are strong, the company must go on the defensive and start
looking for material substitutes or new suppliers ("diversify")
...
For supply items with neither major visible risks nor major benefits, a
defensive posture would be overconservative and costly
...

4
...


Phase 4: action plans
1
...

2
...


Practical applications

Strengthening the organization
Effective relations
1
...

2
...

3
...


Systems support
1
...

2
...

3
...

4
...

5
...
And price reduction or savings,
inventory reduction, reduced clerical work, and better delivery and service
...
, 2017)

Purpose – The purpose of this paper is to develop a synthesised conceptual
framework for global sourcing (GS) strategy and structure
...


To design a GS strategy, we argue that MNCs need to make decisions on:
what items to source globally in terms of quantity, complexity and importance
to the company, i
...
, the supply internationalisation dimension; what internal
capabilities (e
...
information processing capabilities) to build to support the GS
process, i
...
, the internal integration dimension; and what external resources
(including supplier relationships), i
...
, capable suppliers, are needed to provide
components that a firm cannot make by itself due to high costs or lack of
capacity or capability, i
...
, the external integration dimension
...
Supply internationalisation negatively affects internal integration
...
Supply internationalisation positively affects external integration
...
Additional decision-making power delegated to subsidiaries (e
...
IPOs or
plants) increases the complexity of the GS structure
...
Additional decision-making power delegated to subsidiaries (e
...
IPOs or
plants) increases the specialisation of the GS units
...
Additional decision-making power delegated to subsidiaries (e
...
IPOs or
plants) increases the need for a combination of formal and informal control
systems and more-complex coordination mechanisms
...
Higher complexity in the GS organisational structure of a firm increases
the need for a combination of formal and informal control systems and
more-complex coordination mechanisms
...
As GS units become more specialised, there is an increasing need for a
combination of formal and informal control systems and more-complex
coordination mechanisms
...
ICT capabilities are an enabler of GS coordination and control
mechanisms
...
As a firm’s GS strategy becomes more internally integrated (1) its GS
structure decreases in complexity (2) less decision-making power is delegated
to subsidiaries (3) the GS units become less specialised
...
Increased internationalisation of a firm’s GS strategy increases (1)
delegation of decision-making power to subsidiaries (e
...
IPOs or plants) (2)
the complexity of its GS structure and (3) the specialisation of its GS units
...
As a firm’s GS strategy becomes more externally integrated (1) its GS
structure becomes more complex (2) more decision-making power is
delegated to its subsidiary purchasing units (e
...
IPOs or plants) and (3) its
subsidiary purchasing units become more specialised
...
As a firm’s GS strategy becomes more internally integrated, its control
system becomes more formal and bureaucratic; as a firm’s GS strategy
becomes less internally integrated, its control system becomes more informal
and democratic
...
As a firm’s GS strategy becomes more internationalised, there is an
increasing need for a combination of formal and informal control systems and
more-complex coordination mechanisms
...
, 2014)
Three clusters of IPOs (compare against their own corporation and achieve a
fit)
1
...
1
...

1
...
The motives for sourcing from China by their parent companies
included but were not confined to the fact that (1) China represents a
‘growing market’ and contributes more than 10% of the company's
total revenue; (2) China is the ‘main supply market’ to the companies
with at least 20% of the total being spent in China
...
3
...

2
...
1
...

2
...
China is seen as a ‘growing market’ with the current contribution over
10%, or China is a ‘main supply base’
...
3
...

3
...
1
...

3
...
The motives for sourcing from China were simply because it was
cheaper than sourcing from elsewhere
...
3
...


A causal model and propositions development
1
...

2
...

3
...

4
...
The more strategic the motives of sourcing from China are, the more
decentralised the global purchasing strategy for China will be
...
the IPO capabilities (e
...
, sourcing, supplier development, order fulfillment,
and logistics management) are strategic processes for those strategic and
quasi-strategic IPOs to implement GP strategy
...
P2
...

7
...
The more complex an IPO's structure and the more capabilities it has,
the more likely an IPO is to become a ‘proactive follower’ IPO
...
P4
...

9
...
An IPO's
followership influenced by its capabilities could ‘back-influence’ the GP
strategy (reciprocal and dynamic)
...
We found strategy and structure influence one another but in our study
IPO structure had an increasing influence over GP strategy to a degree
that IPOs could become a leader in the relationship with the corporate
purchasing organisation, therefore making decisions

11
...

12
...


Implications:
1
...

2
...


A Natural Resource Scarcity Typology: Theoretical Foundations and
Strategic Implications for Supply Chain Management
(Bell et al
...
)
adversely impact the supply chains that firms construct to serve customer
markets
...
How firms use natural resources is impacted by both the renewability and
scarcity of a held resource (difficult to ignore by supply chain managers)
...
Environmental pollution and damage can provide negative influence on
renewable resources
...
Degeneration refers to scarcity of a resource due to a currently degraded
but remediable resource base
...
Munificence refers to the availability of renewable resources
...
Depletion: when nonrenewable resources are scarce

8
...
The challenge for supply chain managers is to develop appropriate
strategies that enable ongoing utility creation based on each resource
scarcity status
...
Resource employment approaches
1
...
Avoidance, where product designs preclude the use of a scarce

natural resource
1
...
logistics techniques, where resources are shifted to a site suffering
from local scarcity
1
...
Allocation approaches that ration scarce resources
1
...
Sustainment approaches that ensure the availability of a resource
...
Conservation approaches:
2
...
Resource recovery initiatives such as returns management and closed
loop supply chain management for nonrenewable resources
2
...
Resource base protection initiatives, that improve and secure
underlying renewable resource bases
3
...

3
...
In a situation of Global Degeneration, (e
...
, global corn resources are
scarce due to the combined effects of soil pollution, increased demand
for food, increased industrial usage), a Fortification strategy would be
warranted
...

3
...
Alternatively, when faced with Local Degeneration, firms should
employ a Mobilization strategy, combining a logistics approach with
resource base protection
...
3
...

3
...
In the case of Local Depletion, firms should apply a Compilation
strategy, combining a logistics approach with a recovery approach
...
5
...

3
...
Global Abundance of a resource calls for a Preservation strategy that
combines sustainment and recovery approaches
...
7
...

3
...
In the case of Global Munificence of a renewable resource such as rice,
firms should employ a Perpetuation strategy
...
2009)
...
Firms must both understand the actual current status, and how societal
forces (i
...
, consumption, resource base degradation) may transition a
resource to a future status
...
The ever changing dynamic status of NRS highlights the significance of
NRS as a supply chain risk factor of growing importance
...


Information System Innovations and Supply Chain Management:
Channel Relationships and Firm Performance
(Kim, Cavusgil and Calatone, 2006)

First, we explore whether and in what way a firm's internal channel capabilities
are enhanced by Supply Chain Communication System innovations
...
g
...


Third, we investigate the extent to which SCCS innovation is a source of
competitive advantage for firms
...
Applied Technological Innovation for SCCS
1
...
Proactive adoption of new SCCS technologies through applied
technological innovations, especially before they are fully adopted by
competitors in the industry, can be a source of competitive advantage
enhancing efficiency in channel activities both within the firm and with
its partners (affect a firm's channel capabilities, e
...
, information
exchange, inter-firm coordination positively)
...
Administrative innovation for SCCS
2
...
administrative innovation for SCCS in this study refers to the extent to
which the firm possesses the necessary knowledge and skills to
exploit or use its SCCS in a way that competitors cannot imitate easily
...
2
...

For example, SCCS deployment can be tailored to the firm's core
competencies or capabilities
...
3
...

3
...
1
...

3
...
Hypothesis 1a: Applied technological innovations for SCCS facilitate
inter-firm systems integration (supported)
...
3
...

4
...
1
...
1
...
Such knowledge would include any changes in the business
environment, such as market and customer preferences
...
1
...
Hypothesis 2a: Applied technological innovations for SCCS
facilitate information exchange with the focal firm's channel
partner (unsupported)
...
1
...
Hypothesis 2b: Administrative innovations for SCCS facilitate
information exchange with the focal firm's channel partner
(supported)
...
2
...
2
...
Reduce transaction costs
...
2
...
Hypothesis 3a: Applied technological innovations for SCCS
enhance inter-firm coordination with the focal firm's channel
partner (unsupported)
...
2
...
Hypothesis 3b: Administrative innovations for SCCS enhance
inter-firm coordination with the focal firm's channel partner

(supported)
...
2
...
Hypothesis 3d: Information exchange facilitates interfirm
coordination (supported)
...
3
...
3
...
interfirm systems integration partially mediates the influence of
SCCS innovations on a firm's channel capabilities, including
interfirm information exchange and coordination
...
3
...
Hypothesis

2c:

Interfirm

systems

integration

facilitates

information exchange (supported)
...
3
...
Hypothesis 3c: Interfirm systems integration facilitates interfirm
coordination (supported)
...
4
...
4
...
The responsiveness of the partnership is defined as the extent
to which the firm, collectively with the channel member for whom
SCCS is deployed, reacts to environmental changes or new
market developments
...
4
...
Hypothesis

4a:

Information

exchange

facilitates

responsiveness of the partnership (supported)
...
4
...
Hypothesis 4b: Interfirm coordination facilitates responsiveness
of the partnership (supported)
...
Market Performance as the Ultimate Outcome
5
...
The firm's market performance is adopted as the ultimate outcome
variable in this study
...
2
...

5
...
Hypothesis 5b: Interfirm coordination facilitates market performance
(unsupported)
...
4
...

6
...
1
...

6
...
Hypothesis 6: The effect of applied technological innovations and
administrative innovations on information exchange and inter-firm
coordination is greater when the partner is more critical to the firm
...
We postulated that both applied technological and administrative
innovations for SCCS will facilitate channel capabilities: information
exchange, coordination, and responsiveness of the partnership
...
The relative importance of administrative innovations that reflect a firm's
managerial processes better than applied technological innovations
...
Inter-firm systems integration,
3
...
Such integration is a necessary accompaniment to derive an adequate
return from applied technological innovation
...
2
...

3
...
it is possible the importance of effective information exchange and
inter-firm coordination across all channel members dominates channel
relationships
...
One valuable insight for managers is that reliance on applied technological
innovations alone does not improve supply chain capabilities directly, both
in terms of information exchange and inter-firm coordination activities
...
Advanced technology, by itself, does not lead to competitive advantage
...


3
...

4
...

5
...
Applied technological
innovations should be accompanied by interfirm systems integration
...
High-quality information exchange not only helps coordinate with channel
partners but also improves responsiveness of the partnership and market
performance
...
Effective

inter-firm

coordination

improves

responsiveness

of

the

partnership but not market performance directly
...
The effects of IS resources on information exchange and coordination are
independent of the criticality of the channel partner
...
” Broadly speaking, it refers to
weak or absent infrastructure, property rights protections, governance systems,
and rules and norms of social conduct
...
How do the MNEs engage with other institutional actors to overcome the
challenge imposed by institutional voids?
2
...

We call this process (that is, setting up end-to-end SCs in emerging
economies) SC localization
...


“Created environment,” on the other hand, suggests an MNE modifies the
pre-existing business conditions in an emerging economy
...


Findings
Li-nian translates as “systemized thinking and ideas manifested in technology
and management systems, supported by values and beliefs
...
Thus, the business

operations, management systems and technology of the MNEs are considered
embodiments of social and environmental sustainability
...
It leads to
the assessment of industry-wide assets and technologies, who controls which
parts, industry governance and marketization of the industry, and more
...
SC localization enacts
the li-nian of the MNEs, bearing new institutional content
...
The
goal or issue identifies institutional actors and mobilizes them to collaborate in
building an end-to-end SC in the host country
...
This process
also impinges on the cognitive, normative and regulative institutional elements
that structure the SC field
...


Propositions
An MNE employs cultural resources to legitimize its value propositions
...


P1: An MNE's framing of sustainability-oriented value propositions reveals
institutional voids
...
Such initiatives give the MNE credibility among institutional actors
...


P1b: The MNE's ability to translate and incorporate the broad cultural
meanings of the society facilitates legitimization of new operations practices
...

It initiates collaboration among actors in SC operations
...


P2a: Continuous ideation predicates changing cognition among institutional
actors, which guides structuring the SC and the SC field
...
The emerging SC
modifies the institutional elements of the SC field, which in turn provide the
rules, logic and scripts for strategic actions
...


Approaches to managing global sourcing risk (Christopher et al, 2011)

Core question: How do managers assess global sourcing risk and what actions
do they take to mitigate it?

Findings and discussion related to case studies
The majority of the companies identified low cost manufacturing as one of the
most important factors for their global sourcing strategy
...
However, both priorities were often difficult to achieve
simultaneously
...


A lack of communication with the global supply base, which may not
understand the product requirements and the brand strategy, was seen as a
key risk
...
Companies were seeking to consolidate their supply
network at the same time as wishing to be located in various strategic locations
around the globe
...


Being able to design and re-design the chain in a changing environment is a
key factor in developing supply chains that are efficient, effective and robust
...


Positive outputs cannot be expected unless global sourcing risk mitigation and
management strategies are implemented in a complete, comprehensive and
integrated manner
...


Supply Relational Risk: What Role Does Guanxi Play?
(Jia & Zsidisin, 2014)

Guanxi can be a source of supply relational risk because there are several
distinct differences in its approach as compared with western forms of supply
relationship management
...

1
...
1
...

2
...
Risk associated with the relationship-building process

Philosophical orientation (three risks)
1
...
Risk associated with the Yin-yang principle and harmony
2
...
Yin-yang principle is that when relationships conflict, only two
movements are available to either partner, to push or pull
...
2
...

3
...
1
...
Socialisation
1
...
Socialisation is the level of interaction between, and communication of,
various actors within and between the firms, which leads to the
building of personal familiarity, improved communication and problem
solving (Gupta & Govindarajan, 2000)
...
2
...
3
...
,
2006; Kale et al
...
Cultural adaptation
2
...
cultural adaptation as “An attempt to elicit approval from members of a
foreign culture by attempting to become behaviourally more similar to
members of that culture
...
406)
2
...
Lin (2004) provides a useful process model of cultural adaptation and
claim that cultural adaptation process includes three separate

elements: understand, adjust and learn
...
Hybrid national culture as a composite culture of the buying and selling
firms with a unique blend of the national cultures where the firms come
from that straddles the space between buyers and suppliers, results from
learning and adaptation by cross-cultural partners and contain selective
adaptation and distinctive configurations that may depart from both home
and local cultures
...
A converged or hybrid culture seems to be a selective composite culture of
the western buyers and Chinese supplier and consist of all the elements of
Guanxi (to which Western buyers adapted and Chinese suppliers stick)
combined with Western rules and procedures (to which Chinese supplier
adapted and Western buyer stick)
...
The hybrid culture can vary in ‘strength’ due to different levels of cultural
behavioural adaption in the various stages of relationship development
...
the hybrid culture in the commitment/ partnership stage is not necessarily
characterised by the highest level of cultural adaptation i
...
, ‘learn,’ and as
such the hybrid culture may not be as strong despite the maturity of the
relationship
...
Transcultural Boundary Spanners (TBS), defined as: Those individuals
who routinely socialise formally and informally at the buyer-supplier
interface and who have varying degrees of understanding of the cultural
differences between buyers and suppliers and who attain some level of
cultural behavioural adaptation
...
As Simon (1991) argued, it was groups of individuals rather than
organisations that learnt
...
the boundary of the hybrid culture is confined to the interface formed by

the two groups (IPOs and account management teams) of TBSs and
doesn’t permeate into the rest of the organisation i
...
, those who are
further away from the buyersupplier interface
...
Socialisation and cultural adaptation processes are intertwined in a way
that socialisation is visible and explicit at the surface level while cultural
adaptation is more invisible and implicit at a deeper (close to cultural value)
level
...
socialisation may be a prerequisite to cultural adaptation because without
socialisation and interaction, it is impossible for people to understand each
other’scultural values and then adapt accordingly if necessary
...
We therefore propose that:
7
...
The combined informal and formal socialisation leads to cultural
adaptation
...
P1a
...

9
...
TBSs acting as boundary spanners and cultural knowledge brokers
and setting the boundary of the hybrid culture reduce cultural tension
between a buyer and a supplier
...
Hybrid culture is an outcome of cultural adaptation embedded in informal
and formal socialisation between interface teams
...
The nature of the hybrid culture is a combination of Guanxi elements and
western rules and procedures
...
P2
...

4
...
The stronger the hybrid culture in a cross border buyersupplier

relationship the greater the relational capital obtained
...
When both parties saw benefits from the relationship in the form of either
relational capital or business performance, they were more willing to
engage and socialise with each other, adapt culturally and achieve a
stronger hybrid culture
...
P4
...

7
...

8
...


The Scenario Analysis Technique
1
...

2
...


Eight Scenario Steps Used by Daimler-Benz Aerospace

Daimler-Benz Aerospace Has developed global scenarios for air traffic up to
the year 2015 as well as regional scenarios for Europe, North American and
Asia
...
You need to develop and put into place a monitoring system to determine
what will be going on in the future and whether, with the passing of time,
the predictions you have made are still correct
...
The scenario planning is based on an environment monitoring system, into

which we put in qualitative information
...
Select a number of individuals throughout the company to be monitors or
“scanners,” they are on the lookout for special areas of interest, new
developments, and the latest research results from around the world
...
Scenario planning provides hints as to what and where the most important
developments are, and which ones are “driving” the system (and therefore
need to be given priority monitoring)
...
“Weak signals” are also trend indicators: cannot be classified at the
moment, so all you can do is collect them and try to find a trend after a few
weeks
...
Nearly all available information sources are used in our company
...
Collect all the relevant ideas from key staff inside the company
...
Implementation of large-scale studies (study broad plans, monitors, and
coordinates all the activities needed for such a large-scale study)
...
It is important to involve all the product divisions in our study and
decision-making processes to ensure acceptance of the results
...
We try to analyze all these factors within a large network of
interrelationships to get a deeper understanding of the dynamics of the
system
...
On demand, we form small, competitor-specific expert groups to generate

a new competitor analysis
...
All the analysis made by the team can be found in a special database
called DAMIS, which stands for “Dasa Market Information System”
3
...
e
...


A working definition of SCRR as:
l

The risk to the supply chain of either party in a buyer-supplier relationship
not fully committing to joint efforts due to either problems associated with
cooperation or problems associated with opportunistic behaviour
...
In the context of this research, we refer to our first risk root as family
orientation vs self-interest rather than adopting the more generalist
dimension of collectivism and individualism
...
We might conclude that the Guanxi network is featured by harmony within
hierarchy
...
Hofstede’s power distance dimension does not capture the characteristic
of internal harmony, which we understand to be an essential element of
the Guanxi network
...
Relationship building in China is dominated by the forces of Guanxi and as
such is informal, has a long-term orientation and is based on the interplay
of face and renqing, i
...
it occurs at a personal level
...
In the West, the process of building a relationship has a short-term

orientation, is more formal and based on the interplay of competition and
cooperation, i
...
it occurs at a corporate rather than personal level
...
Lin (2004) proposes that there are three levels of cultural adaptation: to
understand, to adjust and to learn
...
As it seems logical that cultural adaptation offers itself as a mitigating
strategy against SCRR caused by cultural differences, we consider cultural
adaptation to be a form of international inter-firm learning
...
There are generally three concepts describing close business relationships:
strategic alliance, partnership and obligational contractual relations
...
In the context of this research, the mutual benefifits realised by both
parties in a buyer-supplier relationship will be related to partnership
performance:
2
...
Relationship effectiveness refers to the degree to which partners find
the relationship to be productive and worthwhile
...
2
...

3
...

4
...
These include relationship effectiveness, relationship
quality and cost-reduction benefits
...
In a relationship with a Chinese firm Guanxi quality should be included as
a key indicator of relationship quality from the Chinese partner’s
perspective and is therefore grouped with relationship q

---