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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.

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

How To Improve Your Writing Skills

What distinguishes a good paper? The idea should be creative, the methodological approach should be flawless, and there should be a theoretical contribution. Sure. However, good communication with the reader is at least as important as all of the rest. Unfortunately, very often I have reviewed manuscripts that contain interesting theories, data, and results, but are simply not well-written. As academics we are often busy, but there is one thing we all should do: read a book about academic writing. The reading time is well invested. I have two book recommendations. The first is Natalie Reid (2018), Getting Published in International Journals: Writing Strategies for European Social Scientists. An academic friend of mine once wrote on LinkedIn that this was the best book he had ever read. And it is really good. My favorite chapters deal with “paragraphing” and “constructing and argument, sentence by sentence”. My second recommendation is aimed at German-speaking academics: Gerlinde Mautner (2019), Wissenschaftliches Englisch: Stilsicher Schreiben in Studium und Wissenschaft. This is one of the best books I have ever read.

Reid, N. (2018): Getting Published in International Journals: Writing Strategies for European Social Scientists. Revised Edition. ISBN 0692929959

Mautner, G. (2019): Wissenschaftliches Englisch: Stilsicher Schreiben in Studium und Wissenschaft. 3rd Edition. ISBN 3825252191

Webinar: “Supply Chain Transformation for a Sustainable Future”, September 8, 2021

How can innovation and new business models transform global supply chains in the transition to a sustainable economy? On September 8, I look forward to joining Juliane Reinecke (King’s College London), together with our speakers from Anglo American and the World Economic Forum, to discuss this topic in a webinar on Supply Chain Transformation for a Sustainable Future. Please register at: https://cbs.nemtilmeld.dk/300/

Survey Research Design in Supply Chain Management

Survey research is one of the most important methodologies in our discipline. Over time, the demands on survey research in SCM have increased – for good reasons. In particular, the design of survey research must reduce the risks of both common method bias and respondent bias. In their important 2018 editorial, entitled Survey Research Design in Supply Chain Management: The Need for Evolution in Our Expectations, Flynn and her coauthors (2018) distinguish between four types of survey research designs. Only one of them, Type 4, sufficiently avoids these two biases. “[A] Type 4 design employs multiple respondents, with the independent and dependent variables addressed by different respondents. It contains some polyadic [i.e., not just one company] constructs, which are addressed by appropriate respondents from different sources.” Anyone who designs a survey in SCM should therefore read this editorial carefully and strictly adhere to the recommendation to use a Type 4 design. Otherwise they risk that the study has no chance of being published in a high-quality academic journal.

Flynn, B., Pagell, M., & Fugate, B. (2018). Survey Research Design in Supply Chain Management: The Need for Evolution in Our Expectations. Journal of Supply Chain Management, 54 (1), 1–15. https://doi.org/10.1111/jscm.12161