A Transaction‐Efficiency Analysis of an Internet Retailing Supply Chain in the Music CD Industry*

The emergence of the Internet may have fundamentally altered the mechanisms underlying information exchanges between sellers and end consumers. However, little attention has been given to the impact these mechanisms have on the efficiency of supply chain operations. This paper begins to address this deficiency in the literature by evaluating supply chain transaction efficiency effects from Internet purchases by consumers. It develops and empirically tests a theoretical framework examining the role Internet purchases have in establishing transaction‐efficiency levels in product exchanges involving sellers, placed at different supply chain echelons, and consumers. The theoretical framework integrates the transaction‐cost and internet economics, inter‐organizational information systems, and supply chain management literatures. Empirical testing, via structural equation modeling, is based on archival data in the Internet music CD market. The results show that Internet‐mediated purchases by consumers allow for greater transaction efficiencies when inventory ownership is postponed farther upstream in the supply chain and supply chain echelons are disintermediated. The results also indicate that channel structure configuration, defined by the supply chains' Internet retailing echelon, moderates these transaction efficiency effects.     

The Severity of Supply Chain Disruptions: Design Characteristics and Mitigation Capabilities

Supply chain disruptions and the associated operational and financial risks represent the most pressing concern facing firms that compete in today's global marketplace. Extant research has not only confirmed the costly nature of supply chain disruptions but has also contributed relevant insights on such related issues as supply chain risks, vulnerability, resilience, and continuity. In this conceptual note, we focus on a relatively unexplored issue, asking and answering the question of how and why one supply chain disruption would be more severe than another. In doing so, we argue, de facto, that supply chain disruptions are unavoidable and, as a consequence, that all supply chains are inherently risky. Employing a multiple‐method, multiple‐source empirical research design, we derive novel insights, presented as six propositions that relate the severity of supply chain disruptions (i) to the three supply chain design characteristics of density, complexity, and node criticality and (ii) to the two supply chain mitigation capabilities of recovery and warning. These findings not only augment existing knowledge related to supply chain risk, vulnerability, resilience, and business continuity planning but also call into question the wisdom of pursuing such practices as supply base reduction, global sourcing, and sourcing from supply clusters.     

The Impact of E‐Replenishment Strategy on Make‐to‐Order Supply Chain Performance

This research investigates the impact of electronic replenishment strategy on the operational activities and performance of a two‐stage make‐to‐order supply chain. We develop simulation‐based rolling schedule procedures that link the replenishment processes of the channel members and apply them in an experimental analysis to study manual, semi‐automated, and fully automated e‐replenishment strategies in decentralized and coordinated decision‐making supply chain structures. The average operational cost reductions for moving from a manual‐based system to a fully automated system are 19.6, 29.5, and 12.5%, respectively, for traditional decentralized, decentralized with information sharing, and coordinated supply chain structures. The savings are neither equally distributed among participants, nor consistent across supply chain structures. As expected, for the fully coordinated system, total costs monotonically decrease with higher levels of automation. However, for the two decentralized structures, under which most firms operate today, counter‐intuitive findings reveal that the unilateral application of e‐procurement technology by the buyer may lower his purchasing costs, but increase the seller's and system's costs. The exact nature of the relationship is determined by the channel's operational flexibility. Broader results indicate that while the potential economic benefit of e‐replenishment in a decentralized system is substantial, greater operational improvements maybe possible through supply chain coordination.     

敏捷供应链背景下企业合作关系对企业绩效的影响

现有理论文献认为,良好的企业合作关系能够提高企业绩效,但对于其作用效果和作用路径仍缺乏实证研究的支持.本文以重庆市的242家企业为研究样本,通过因子分析和结构方程模型研究了企业合作关系、敏捷供应链和企业绩效三者之间的关系,验证了企业合作关系对敏捷供应链效益、企业绩效水平具有显著的正向影响,而敏捷供应链效益可以很好地提高企业的绩效水平.     

An evaluation of product commonality and group technology production methods in a pre-defined multiple-machine scenario

Group technology has been used successfully for a number of years as a setup reduction tool. It is especially valuable in low-volume high-mix manufacturing environments where products and machines may be partitioned into product families and machine cells. The partitioning of machines or processes into cells may be limited by practical constraints, and the partitioning of products is complicated as the number of products and processes increases. In this paper, the authors examine the behaviour of various grouping strategies lauded as being appropriate in situations where machine partitioning and product routeing are determined by technological constraints. Of specific experimental concern in this paper is the effect of the mean and variance of component part commonality between products on system performance under various grouping strategies in a multiple-machine environment.     

The Impact of Geographic Proximity on What to Buy,How to Buy,and Where to Buy: Evidence from High‐Tech Durable Goods Market*

Social contagion effects due to geographical proximity refer to the social effects wherein the behavior of an individual varies with the behavior of other individuals who are geographically close. Although the influence of such effects on consumer choices has been established in several contexts, much of the extant studies have focused on its effect on consumers’ decision of whether to buy a new product or adopt a new innovation. There has been no systematic examination of the influence of geographic proximity on other aspects of consumers’ product buying process such as what to buy (i.e., brand choice), how to buy (i.e., the channel), and where to buy (i.e., retailers). Such effects can matter significantly in high‐technology and durable goods markets and therefore, it is critical to understand the scope of these on consumers’ choice of retailers and channel as well. Drawing on literatures from word of mouth effects, ecommerce, and consumers’ perception of risk in their purchase process, we develop a set of hypotheses on the effect of geographic proximity on consumers’ choices of what to buy, how to buy, and where to buy. Leveraging a microlevel dataset of purchases of personal computers, we develop brand‐, retailer‐, and channel‐related measures of proximity effects at the individual consumer level and estimate a joint disaggregate model of the three choices that make up a product purchase process to test these hypotheses. Our results indicate a significant contagion effect on each of the three choices. Furthermore, we find evidence of a greater effect of geographic proximity on inexperienced consumers—those who are new to the product category. Our results thus help develop a holistic understanding of the influence of social contagion effects on consumers’ decision making.     

The Importance of Social Embeddedness: Churn Models at Mobile Providers

This article argues the importance of social embeddedness at mobile providers by examining the effects of customers’ network topological properties on churn probability—the probability of a customer switching from one telecommunication provider to another. This article uses data from regional snowball sampling—the only practically feasible network sampling method—to identify groups with significantly different churn ratios for customers with different network topological properties. Clear evidence indicates that individual network characteristics (node‐level metrics) have considerable impact on churn probabilities. The inclusion of network‐related measures in the churn model allows a longer‐term projection of churners and improves the predictive power of the model. With no possibility to carry out repeated sampling, sample stability was checked through simulation results. On the one hand, this article highlights the importance and effectiveness of the provider's tailored marketing campaigns by showing that customers targeted by direct marketing campaigns are less threatened by churn than nontargeted customers. On the other, this article shows that social embeddedness blocks the impact of the very same marketing efforts. This article forwards the idea that social embeddedness, also prevalent in vendor switching, can be extended to understanding the development of professional societies threatened by membership churn.     

A Structural Analysis of the Effectiveness of Buying Firms' Strategies to Improve Supplier Performance

Many manufacturing firms have increased the amount of component parts and services they outsource, while refocusing on their core capabilities. Outsourcing parts and services to independent, external suppliers means that suppliers' performance is increasingly critical to the long‐term success of these buying firms. Buying firms are increasingly using disparate supplier development strategies to improve supplier performance including supplier assessment, providing incentives for improved performance, instigating competition among suppliers, and direct involvement of the buying firm's personnel with suppliers through activities such as training of suppliers' personnel. Using resource‐based theory, internalization theory, and structural equation modeling, we examine the impact of these supplier development strategies on performance. We conclude that direct involvement activities, where the buying firm internalizes a significant amount of the supplier development effort, play a critical role in performance improvement.     

An Empirical Investigation of the Contribution of Strategic Sourcing to Manufacturing Flexibilities and Performance*

Empirical studies for achieving manufacturing flexibility goals have centered around the uses and advantages of advanced technology. Few studies have examined alternative ways of attaining flexibility objectives. Strategic sourcing finds mention in the literature as a potential route to manufacturing flexibility. However, little empirical evidence exists to validate this view. Literature also describes manufacturing flexibility as a multidimensional concept but fails to adequately examine the synergies among the different dimensions. This research investigates the influence of strategic sourcing and advanced manufacturing technologies on specific manufacturing flexibilities, and examines relationships among different flexibilities. The results are tied to manufacturing cost reduction. The findings suggest that strategic sourcing can assist in the achievement of modification flexibilities. Volume and modification flexibility are found to influence new product flexibility. Modification flexibility is found to influence manufacturing cost reduction. The results show that strategic sourcing can be used to target specific manufacturing flexibilities and that interflexibility synergies need to be considered while formulating flexibility-based manufacturing strategies.     

Supply Chain Conflict Due to Store Brands: The Value of Wholesale Price Commitment in a Retail Supply Chain*

Store brands are of increasing importance in retail supply chains, often causing channel conflict, as the retailer's product directly competes with the manufacturer's national brand. Extant research on the resulting channel interactions either assumes the national brand manufacturer can credibly commit to maintaining a wholesale price or that he lacks such ability. However, these two scenarios imply very different supply chain interactions, as only a national brand manufacturer with commitment ability can strategically adjust a national brand wholesale price to prevent a store brand introduction by the retailer. We specifically analyze the impact of this assumption on the manufacturer, the retailer, and the customers. We determine when long‐term contracts that provide the manufacturer with such commitment ability can improve supply chain profitability.     

Information Technology and Process Performance: An Empirical Investigation of the Interaction Between IT and Non‐IT Resources*

Drawing on the resource‐based view, we propose a configurational perspective of how information technology (IT) assets and capabilities affect firm performance. Our premise is that IT assets and IT managerial capabilities are components in organizational design, and as such, their impact can only be understood by taking into consideration the interactions between those IT assets and capabilities and other non‐IT components. We develop and test a model that assesses the impact of explicit and tacit IT resources by examining their interactions with two non‐IT resources (open communication and business work practices). Our analysis of data collected from a sample of firms in the third‐party logistics industry supports the proposed configurational perspective, showing that IT resources can either enhance (complement) or suppress (by substituting for) the effects of non‐IT resources on process performance. More specifically, we find evidence of complementarities between shared business–IT knowledge and business work practice and between the scope of IT applications and an open communication culture in affecting the performance of the customer‐service process; but there is evidence of substitutability between shared knowledge and open communications. For decision making, our results reinforce the need to account for all dimensions of possible interaction between IT and non‐IT resources when evaluating IT investments.     

The Decision of the Supply Chain Executive to Support or Impede Supply Chain Integration: A Multidisciplinary Behavioral Agency Perspective*

Applying the behavioral agency model developed by Wiseman and Gomez‐Mejia (1998) , this article analyzes human resource factors that induce supply chain executives (SCEs) to make decisions that foster or hinder supply chain integration. We examine two internal sources (compensation and employment risk) and one external source (environmental volatility) of risk bearing that can make SCEs more reluctant to make the decision to promote supply chain integration. We argue and empirically confirm the notion that an employment and compensation system that increases SCE risk bearing reduces the SCE's willingness to make risky decisions and thus discourages supply chain integration. We also reveal that this negative relationship becomes stronger under conditions of high environmental volatility. In addressing the “so what?” question, we found empirical support for the hypothesis that supply chain integration positively influences operational performance. Even though this decision has a positive value for the firm, we showed that SCEs discourage supply chain integration when they face higher risk bearing. Hypotheses are tested using a combination of primary survey data and archival measures in a sample of 133 Spanish firms.