Experiments in Supply Chain Management Research

Experiments have exerted a growing methodological influence on the SCM discipline in recent years. In their recently published article on this subject, entitled Experiments in Strategy Research: A Critical Review and Future Research Opportunities, Bolinger et al. (2021) examine and categorize experiments by “[identifying] topic areas in which experiments have been effectively deployed as well as several literature streams that have a limited amount of prior experimental research.” The authors also discuss challenges in using experiments, thereby addressing the level of analysis. SCM researchers should pay particular attention to this aspect, as many of the phenomena they study are not located at the firm level, as in strategy research, but at the supply chain level. The authors argue that their work “documents experimental research and provides a methodological practicum, thereby offering a platform for future experiment-based research in strategic management”. Although the authors review extant experimental work in strategic management, their results are certainly also very useful for SCM researchers.

Bolinger, M. T., Josefy, M. A., Stevenson, R., & Hitt, M. A. (2022). Experiments in Strategy Research: A Critical Review and Future Research Opportunities. Journal of Management, 48(1), 77–113. https://doi.org/10.1177/01492063211044416

How a Disruption in Gas Imports From Russia Could Affect Global Supply Chains

A few days ago, the G7 countries rejected Russian demands to pay for future gas supply in rubles. Robert Habeck, Germany’s Federal Minister for Economic Affairs and Climate Action, therefore activated the early warning stage of the country’s gas emergency plan yesterday. Today, Russian President Putin signed a decree halting gas supplies unless paid for in rubles. It is not yet clear what the consequences of this decree will be, as it also contains loopholes. However, what would happen if Russia really stopped exporting energy to Europe? A study conducted by leading economists, entitled What If? The Economic Effects for Germany of a Stop of Energy Imports From Russia, examines the economic impact on Germany. The authors are cautiously optimistic, but the effect will certainly ripple through numerous industrial supply chains. One can hardly imagine the global supply chain consequences if, for example, the world’s largest chemical company BASF had to stop its processes due to a lack of gas. It is now becoming apparent how dependent Germany has become as a result of its focus on Russia as the single source of supply and how urgent it is to switch to renewable energies even faster in order to minimize this dependency.

Writing Skills: The Paragraph

The paragraph is probably the most important unit of a well-written academic text. It has a specific structure and standards that make it effective and enjoyable to read. This video demonstrates how to construct good paragraphs and improve writing with better clarity and flow.

A War in the Middle of Europe

The world is shocked by the Putin regime’s war of aggression against Ukraine – a war in the middle of Europe. It almost seems to me that our species has climbed back into the trees. This war already has many impacts on supply chains, and further implications will only become apparent with a time lag. Instead of taking the long necessary step to expand renewable energies, many EU countries have relied on cheap oil and gas supplies from Russia for too many years. This omission is now taking its revenge by restricting the scope for sanctioning the aggressor. High-tech products also depend on raw materials (e.g., palladium and neon) from Russia and Ukraine. This certainly adds to the current shortage of chips. The effects of this war on food supply chains could be particularly dramatic. Russia supplies important potash fertilizers and many countries around the world are urgently dependent on wheat harvests from Ukraine. But the fields will remain fallow this year.

European Commission’s Directive on Corporate Sustainability Due Diligence

Yesterday, the European Commission adopted a long-awaited Proposal for a Directive on Corporate Sustainability Due Diligence. It aims to “set out a horizontal framework to foster the contribution of businesses operating in the single market to the respect of the human rights and environment in their own operations and through their value chains, by identifying, preventing, mitigating and accounting for their adverse human rights, and environmental impacts, and having adequate governance, management systems and measures in place to this end”. Importantly, the proposal covers the company’s own operations, their subsidiaries and their value chains (indirect and direct business relationships). It covers large companies (500 employees, €150 million net turnover worldwide) and additional companies operating in defined high impact sectors. I am sure many supply chain managers, not just in Europe, will have the 70-page document on their nightstand as required reading for the next few days.

Personal Predictions for Supply Chain Management in 2022

The year 2022 has been going on for quite a while. I see the following topics at the top of the agenda in both academia and business: First, the last few months have been characterized by a large number of supply chain hiccups. Missing chips in the automotive industry have become a symbol of this development. Therefore, supply chain resilience is more important than ever. Second, a lot is currently happening in the European Union in terms of supply chain laws. Stricter rules on supply chain liability are expected shortly, and several EU countries have recently pushed their legislation forward. Third, many companies are transforming their linear into circular supply chains, see the new DHL report entitled Delivering on Circularity. Finally, many companies are also concerned with net-zero goals – and more importantly with action plans for these goals. Many of these plans explicitly involve the supply chain. Although I am a bit late, I wish you a good supply chain year 2022.

Why Do We Need Different Business Schools?

In this video, Martin Parker, a Professor at the University of Bristol, UK, and author of the book Shut Down the Business School, argues that business schools encourage students to think that they should approach the future with the same tools that have created our problems. He thinks we need new schools, what Martin calls “schools for organizing”. We should ask ourselves what SCM teaching might look like at such schools.

What Is the Eisenhardt Method, Really?

There are different types of case-based research methods that differ considerably in their basic assumptions and objectives. An example of such a method is the multi-case theory-building approach, which is based on the work of Kathleen M. Eisenhardt. Her 1989 article, which laid the foundation for this method, has been cited tens of thousands of times to date. Unfortunately, there are countless misconceptions about the method in terms of types of data, number of cases, and performance emphasis. The method is also often overinterpreted as a rigid template, although it was never intended to be such a template. In a new article entitled What Is the Eisenhardt Method, Really?, Eisenhardt now puts her method in a new light and argues that the method’s relatively few defining features enable a wide variety of research possibilities. It should be clear that this new article is important reading for anyone who wants to do research with Eisenhardt’s method and for anyone whose work aims at theory building.

Eisenhardt, K.M. (2021). What Is the Eisenhardt Method, Really? Strategic Organization, 19(1), 147–160. https://doi.org/10.1177/1476127020982866

What the 2021 Nobel Prize Means to SCM Research

This year’s Nobel Memorial Prize in Economics goes to David Card “for his empirical contributions to labour economics” and Joshua D. Angrist and Guido W. Imbens “for their methodological contributions to the analysis of causal relationships”. The Royal Swedish Academy of Sciences writes in a comprehensive article about the scientific background of this prize (PDF): “Taken together, […] the Laureates’ contributions have played a central role in establishing the so-called design-based approach in economics. This approach – aimed at emulating a randomized experiment to answer a causal question using observational data – has transformed applied work and improved researchers’ ability to answer causal questions of great importance for economic and social policy using observational data.” Similar to what is still widespread in SCM research today, the traditional approach to causal inference in economics relied on structural equation models at least until the 1980s, but, based on the laureates’ work on the local average treatment effect, natural experiments have become increasingly popular in economics. Unfortunately, almost no corresponding research exists in our discipline, but a certain number of natural experiments were carried out in related disciplines (e.g.; Lee & Puranam, 2017; Li & Zhu, 2021; Huang et al., 2021). Perhaps this Nobel Prize can serve as an inspiration for more natural experiments also in the SCM discipline?

How to Eliminate Deforestation From Supply Chains

Supply chains have a decisive influence on global deforestation, a phenomenon closely related to the climate and biodiversity crises. Therefore, guidance is needed for decision-makers to inform the design, implementation and monitoring of supply-chain initiatives to reduce global deforestation. Lambin et al.’s (2018) article, entitled The Role of Supply-Chain Initiatives in Reducing Deforestation, reviews such initiatives, their effectiveness, and the challenges they might face. The authors propose “a typology of strategies pursued by private sector actors to reduce deforestation”. This typology is based on two questions: “Was the strategy adopted independently by a single company or as part of a multi-stakeholder process?” and “Does the initiative only define and communicate goals, or does it also implement actionable changes?” This leads to four supply-chain initiatives: (1) company pledges, (2) codes of conduct, (3) collective aspirations, and (4) sectoral standards. In sum, the article gives a very good overview of key initiatives that could help us to solve one of the most important problems of our time.

Lambin, E.F., Gibbs, H.K., Heilmayr, R. et al. (2018). The Role of Supply-Chain Initiatives in Reducing Deforestation. Nature Climate Change, 8, 109–116. https://doi.org/10.1038/s41558-017-0061-1