Ranking Journals: Academic Journal Guide 2018 (“ABS List”)

Three years ago, the Chartered Association of Business Schools (ABS) has released its last ranking of business journals: the Academic Journal Guide (AJG), also known as the “ABS list”. This ABS ranking has become quite influential as the guiding journal ranking across management disciplines in the UK. Although the ranking has been heavily criticized (see my previous post) and more democratically-developed rankings exist (e.g. VHB-JOURQUAL), the ABS ranking has since been adopted by many business schools also in other countries.

Shortly after the publication of the ABS list, Nature has published ten principles to guide research evaluation, which have since become known as the Leiden Manifesto. One of these principles argues that quantitative evaluation should support qualitative, expert assessment, not replace it. Similarly, the San Francisco Declaration on Research Assessment (DORA), which has been signed by thousands of researchers worldwide, asks “not [to] use journal-based metrics […] as a surrogate measure of the quality of individual research articles, to assess an individual scientist’s contributions, or in hiring, promotion, or funding decisions”. Indeed, the negative consequences of rankings are well-documented (see, for example, Espeland & Sauder, 2007 and Grant & Kovács, 2018).

Unfortunately, the ABS list has often been used in exactly the way the Leiden Manifesto and DORA wanted to prevent us from doing – with very negative consequences for our discipline. Many SCM researchers feel that the ABS list undervalues the journals of our discipline. For example, Journal of Supply Chain Management, a journal with one of the highest impact factors in management (5.789), is ranked by ABS 2015 as a “3” only and Journal of Business Logistics as a “2”. Comparing our journals to other disciplines, like accounting or marketing, it becomes apparent to me that these journals deserve a “4*” and “4”. Worse even, many SCM journals have suffered from their low ABS rankings, as SCM researchers who took the ABS ranking too seriously, felt they should publish in the higher-ranked journals of other disciplines. AJG 2015 has thus become a self-fulfilling prophecy.

Today, the Academic Journal Guide 2018 has been released. It contains more than 1,500 entries. Unfortunately, AJG 2018 did not adapt the ranks of leading SCM journals. Only Journal of Operations Management gets a “4*”, while Decision Sciences, Journal of Supply Chain Management and Supply Chain Management: An International Journal get a “3” again. International Journal of Physical Distribution and Logistics Management, Journal of Business Logistics and Journal of Purchasing and Supply Management all still get a “2” only. The fact that the rank of none of these journals has changed indicates that the new ranking does not seem to cover all the changes and improvements our discipline has made in the last couple of years. My suggestion would be to ignore AJG 2018, as it does not seem to represent the journals of our discipline properly.

Teaching Case – Everything Is Connected: A New Era of Sustainability at Li & Fung

The Case Centre has recently announced the winners of their 2018 global awards and competitions. Already last year, the winning case in the Production and Operations Management category was closely related to supply chain management (see my previous post, Zara: The World’s Largest Fashion Retailer). This is also the case for the 2018 category winner, which is titled Everything Is Connected: A New Era of Sustainability at Li & Fung. It was written by Hau L. Lee and Sheila Melvin. The case deals with the way how Li & Fung, a Hong-Kong-based trading company, reacted to the Rana Plaza disaster and other such events to ensure sustainable supply chain management. Li & Fung’s Head of Learning and Development is right when saying: “The hard part is to make sustainability part of our DNA, to get 27,000 people to understand that this is now as fundamental to us as the fact that we source globally.” Therefore, this case could be a great building block for future SCM courses!

Business Success through Sustainable SCM

Are business success and sustainability contradictory? A new whitepaper by Schmidpeter & Bungard, sponsored by DHL, is rather optimistic and argues that both goals can instead be mutually beneficial. The paper is titled Unlock the True Value of Your Supply Chain: Business Success through Sustainable Supply Chain Management. The authors states: “Sustainable Supply Chain Management (SSCM) can help drive positive business change by helping companies save costs, strengthen ‘license to operate’ and generate additional revenue streams.” But the authors also acknowledge that “[a]lthough there are good tools and best practices available for integrating sustainability into your business, there is no silver bullet that will let you realize the benefits of SSCM overnight”. They also acknowledge that the Sustainability department should not do it alone: “The topic of sustainability should be on the agenda for every leader and employee within a company”. The white paper might partly be quite optimistic, but it provides several good practices from business reality.

Supply Chain Coordination with Contracts

Today I would like to talk about Supply Chain Coordination with Contracts, a chapter written by Cachon (2003). It has become the standard reference when it comes to teaching some key supply chain models. Coordination between the members of a supply chain is certainly very relevant but also challenging. Because the members of a supply chain are typically concerned with optimizing their own objectives, their actions might not lead to optimal supply chain performance. Therefore, contracts need to be carefully designed. The author “reviews and extends the supply chain literature on the management of incentive conflicts with contracts”. For example, Cachon presents key supply chain models, hereby extending the newsvendor model “by allowing the retailer to choose the retail price in addition to the stocking quantity” and “by allowing the retailer to exert costly effort to increase demand”. Teaching such models can help students to gain the required problem-solving competencies and abstraction capabilities that are needed in today’s business world.

Cachon, G.P. (2003). Supply Chain Coordination with Contracts. Handbooks in Operations Research and Management Science, 11 (Supply Chain Management: Design, Coordination and Operation), 227-339 https://doi.org/10.1016/S0927-0507(03)11006-7

Report Confidence Intervals and Effect Sizes, not p Values!

Several journals have already reacted to the p value debate. For example, an ASQ essay provides suggestions that not only every editor should read. Another example are the policies published by SMJ: SMJ “will no longer accept papers for publication that report or refer to cut-off levels of statistical significance (p-values)”. Instead, “authors should report either standard errors or exact p-values (without asterisks) or both, and should interpret these values appropriately in the text”. “[T]he discussion could report confidence intervals, explain the standard errors and/or the probability of observing the results in the particular sample, and assess the implications for the research questions or hypotheses tested.” SMJ will also require authors to “explicitly discuss and interpret effect sizes of relevant estimated coefficients”. It might well be that we are currently observing the beginning of the end of null-hypothesis statistical tests. And it might only be a matter of time before other journals, also SCM journals, require authors to remove references to statistical significance and statistical hypothesis testing and, ultimately, to remove p values from their manuscripts.

The Constitution of Trust

Trust plays an important role in supply chain management research (see some of my previous posts, e.g. The More Trust the Better! Really?, The Evolution of Trust). An article by Free (2008), titled Walking the Talk? Supply Chain Accounting and Trust among UK Supermarkets and Suppliers, asks: “How are calculative practices implicated in the constitution of trust in the UK retail sector?” This leads to two principal findings: First, “existing definitions of trust need to be more tightly and coherently elaborated to be applicable in the inter-organizational context”. The author proposes “a set of trust constructs that reflects both institutional phenomena (system trust) and personal and interpersonal forms of trust (trust, trusting behaviours, trustworthiness and trusting disposition)”. Second, “trust can be invoked in both ritualistic and instrumental ways”. Here, the author suggests “that the simple dichotomy of trust and distrust […] should be expanded to embrace manipulation and the use of trust as a discursive resource”.

Free, C. (2008). Walking the Talk? Supply Chain Accounting and Trust among UK Supermarkets and Suppliers. Accounting, Organizations and Society, 33 (6), 629–662. https://doi.org/10.1016/j.aos.2007.09.001

Three Types of SCM Definitions

Today, I present Mentzer et al.’s (2001) must-read article, Defining Supply Chain Management. The authors demonstrate that, “although definitions of SCM differ across authors […], they can be classified into three categories”: (1) SCM as a management philosophy (= supply chain orientation), which involves a systems approach to viewing the supply chain as a whole, a strategic orientation toward cooperative efforts, and a customer focus; (2) SCM as an implementation of a management philosophy, which involves seven activities such as “mutually sharing information”; and (3) SCM as a set of management processes, which includes processes such as “customer relationship management” and “order fulfillment”. The article also contains a useful definition of SCM as “the systemic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain, for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole”.

Mentzer, J.T., DeWitt, W., Keebler, J.S., Min, S., Nix, N.W., Smith, C.D. & Zacharia, Z.G. (2001). Defining Supply Chain Management. Journal of Business Logistics, 22 (2), 1–25. https://doi.org/10.1002/j.2158-1592.2001.tb00001.x

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