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Issues in Supply Chain Management

Lambert & Cooper’s (2000) paper Issues in Supply Chain Management has certainly been one of the most influential articles of our discipline. Herein, they presented a framework for SCM as well as questions for how it could be implemented. The framework contained a set of cross-functional, cross-organizational business processes that could be used as a way to manage relationships with customers and suppliers. The article continues to be an important cornerstone in research on the topic of integration. Now, more than fifteen years later, Lambert & Enz (2017) present an updated version, Issues in Supply Chain Management: Progress and Potential. Herein, the authors “review the progress that has been made in the development and implementation of the proposed SCM framework since 2000 and identify opportunities for further research”. Interestingly, they have changed their minds about some statements made in the 2000 article, for example that competition is no longer between companies, but between supply chains, which they now argue is not technically correct. The authors also present a revised version of the framework from 2000.

Lambert, D.M. & Cooper, M.C. (2000). Issues in Supply Chain Management. Industrial Marketing Management, 29 (1), 65-83. https://doi.org/10.1016/S0019-8501(99)00113-3

Lambert, D.M. & Enz, M.G. (2016). Issues in Supply Chain Management: Progress and Potential. Industrial Marketing Management, 62, 1-16. https://doi.org/10.1016/j.indmarman.2016.12.002

Understanding and Tackling Societal Grand Challenges through SCM Research

The Academy of Management Journal’s previous editorial team defined its term with a thematic emphasis on “grand challenges”, and called for research through editorials on a wide array of topics that explored global problems including climate change, aging societies, natural resources, societal resilience, digital workforce, digital money, and gender inequality among others, as well as methodological approaches with which to tackle them. They defined a grand challenge as “specific critical barrier(s) that, if removed, would help solve an important societal problem with a high likelihood of global impact through widespread implementation”. Certainly the most widely adopted grand challenges are the Sustainable Development Goals (SDGs) of the United Nations. Another example, not mentioned by the editors, are the planetary boundaries identified by Steffen et al. (2015). Following their emphasis, what could our discipline do to better understand and tackle societal grand challenges and maybe also in a more systematic way? Do we need to renovate our thematic and methodological portfolios? Some of these AMJ editorials can certainly be an inspiration for SCM research.

George, G., Howard-Grenville, J., Joshi, A., & Tihanyi, L. (2016). Understanding and Tackling Societal Grand Challenges through Management Research. Academy of Management Journal, 59 (6), 1880-1895. https://doi.org/10.5465/amj.2016.4007

Justice as Fairness in the Supply Chain

Among the most interesting SCM articles I have recently read is Jack et al.’s (2018) recent study, titled Accounting, Performance Measurement and Fairness in UK Fresh Produce Supply Networks. Why I highlight this study here is because this is one of the rare interpretive studies related to SCM and it could therefore serve as a blueprint for those of us who struggle with the dominance of positivist studies in our discipline. The authors build on John Rawls’ theories of justice as fairness and apply it to the supply chain relationships between suppliers and supermarkets. They then ask three questions: First, “how performance measurement, risk management and communication of accounting information are used by intermediaries in an allegedly unfair commercial environment”. Second, “the extent to which the accounting and control practices observed support perceptions that suppliers in supermarket-dominated supply networks are treated unfairly”. And third, “what accounting and control practices would be indicative of fair commercial relationships?” I wish I could see more studies like this.

Jack, L., Florez-Lopez, R., & Ramon-Jeronimo, J.M. (2018). Accounting, Performance Measurement and Fairness in UK Fresh Produce Supply Networks. Accounting, Organizations and Society, 64, 17-30 https://doi.org/10.1016/j.aos.2017.12.005

Thinking Critically about SCM Practices

The Guardian has just published an interesting opinion piece by van der Kolk, titled Business Education Helps Create a Culture where the Profit Justifies the Means. Herein, the author, who is a university teacher of accounting, writes: “We need to see a much stronger integration of ethical considerations into business education. This is how managers make real-life business decisions. This could be achieved through a discussion on the technics and ethics of transfer pricing in one and the same accounting class, using a case that highlights both aspects. Business education should also challenge its own underlying assumptions about human behaviour, and bring in other disciplines such as the humanities to help students think critically about business practices that are taken for granted.” The author makes an excellent case for accounting, but his arguments certainly also apply for other business disciplines, including supply chain and operations management. If that is the case, how should we change our ways of teaching?

The Dark Side of Interorganizational Relationships

What would supply chain management be without interorganizational relationships! Interorganizational relationships are always great, right? Maybe it is not that simple, if we look at a brand-new article by Oliveira & Lumineau, titled The Dark Side of Interorganizational Relationships: An Integrative Review and Research Agenda. What they mean by the “dark side” of interorganizational relationships are negative dimensions or, in their words, “damaging aspects” of such relationships, including detrimental outcomes, ill-intended behaviors or unethical practices. These aspects are driven by competence or integrity issues. Based on a review of the literature, the authors identified antecedents, ex-ante and ex-post moderators as well as consequences that are rooted in the country, industry, interorganizational relationship, partner and individual levels of analysis. The authors “not only discussed actionable research steps aimed at addressing lacunae in the current knowledge but also presented a research agenda to advance the theory on the dark side of IORs”. I am sure this piece will be inspiring also for many SCM researchers.

Oliveira, N. & Lumineau, F. (2018). The Dark Side of Interorganizational Relationships: An Integrative Review and Research Agenda. Journal of Management, https://doi.org/10.1177/0149206318804027

The Supply Chain of a Computer

The Supply Chain of a ComputerSometimes a picture is worth a thousand words. A map of our globe enables us to reflect upon key issues in SCM: Who is actually producing our computers? Where does value creation take place? What are the core competencies of the brand company? Who is governing the computer supply chain? What is the role of contract manufacturers? Why is final assembly being done in China and not in the EU or Canada? Why is packaging being done in Eastern Europe or Mexico and not in China; and why not in Northern Europe or Canada, where the consumers are located? What modes of transport should be used? How long does it take to move a container from Hong Kong to Hamburg? What is the size of a container? What are typical container shipping rates? What can be problematic about sourcing raw materials from the Congo? How would you calculate the CO2 emissions of a computer? How could a linear supply chain become circular? What role will machine learning play? How will the supply chain change in the age of automation? What is the potential role of 3D printing? Is a “supply” chain about “supply” or is “demand” actually the factor that we should be looking? Is a supply “chain” actually a “chain”?

Emerald Literati Network Awards for Excellence 2018

Emerald has recently announced the winners of their 2018 Emerald Literati Network Awards for Excellence. Numerous SCM-related articles have received outstanding paper or highly commended awards, and might thus serve as excellent articles to read during summer. Several winning articles relate to external (Abdallah, Abdullah & SalehFawcett et al. and Ralston, Richey & Grawe) and internal (Guo et al., Makepeace, Tatham & Wu and Roh et al.) supply chain relationships. Other articles are about risk management (Jahre, Min, Park & Ahn and Oliveira & Handfield) and resilience (Ali, Mahfouz & Arisha and Tukamuhabwa, Stevenson & Busby). Other winning articles deal with sustainability (Busse et al., Dubey, Gunasekaran & Papadopoulos and Ghani et al.), complexity (Gerschberger, Manuj & Freinberger and Sayed, Hendry & Bell), the Internet of things (Haddud et al. and Yan), disruptive innovation (Pérez, Dos Santos & Cambra-Fierro) and the human factor in SCM (Schorsch, Wallenburg & Wieland). Finally, McKinnon‘s article engages in the journal ranking debate, and our own methodological paper, Wieland et al., provides guidelines for scale purification.

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

How to Do a Systematic Literature Review

There has been a recent trend in several management disciplines, including supply chain management, to create knowledge by systematically reviewing available literature. So far, however, our discipline lacked a “gold standard” that guides researchers in this endeavor. The Journal of Supply Chain Management has now published our new article, Durach, Kembro & Wieland (2017): A New Paradigm for Systematic Literature Reviews in Supply Chain Management. Our systematic literature review process follows six steps: (1) develop an initial theoretical framework; (2) develop criteria for determining whether a publication can provide information regarding this framework; (3) identify literature through structured and rigorous searches; (4) conduct theoretically driven selection of literature and a relevance test; (5) develop two data extraction structures, integrate data to refine the theoretical framework, and develop narrative propositions; and (6) explain the refined framework and compare it to the initial assumptions. We believe that these best-practice guidelines, although developed for the SCM discipline, can be used as a blueprint also for adjacent management disciplines.

Durach, C.F., Kembro, J. & Wieland, A. (2017). A New Paradigm for Systematic Literature Reviews in Supply Chain Management. Journal of Supply Chain Management, 53 (4), 67-85. DOI: 10.1111/jscm.12145

The Evolution of Trust

Trust plays an important role in supplier–buyer relationships. One way to approach this important concept is game theory. If you have ever wondered how game theory could be taught in a supply chain management course, I can recommend Nick Case’s The Evolution of Trust – an interactive guide to the game theory of why and how we trust each other. The guide starts by explaining the game of trust (= the prisoner’s dilemma). Then it illustrates what happens if multiple games and multiple tournaments are played with different players. We can learn from this guide that “the game defines the players” but also that “the players define the game”. We can learn that, in order for trust to evolve, we need the knowledge of possible future repeat interactions, we need a win–win situation, and we need a low level of miscommunication. I will definitely use The Evolution of Trust in my future supply chain management courses.