Research in the decision sciences for innovations in global supply chain networks

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To return to the previous page viewed, click the Back button on your device or app. Research in the Decision Sciences for Global Supply Chain Network Innovations Best Papers from the 2014 Annual Conference European Decision Sciences Institute Edited by Jan Stentoft, University of Southern Denmark Antony Paulraj, University of Southern Denmark Gyula Vastag, National University of Public Service (Budapest, Hungary) and Széchenyi University (Gy r, Hungary) Publisher: Paul Boger Editor-in-Chief: Amy Neidlinger Executive Editor: Jeanne Glasser Levine Operations Specialist: Jodi Kemper Cover Designer: Alan Clements Managing Editor: Kristy Hart Senior Project Editor: Betsy Gratner Copy Editor: Geneil Breeze Proofreader: Leslie Joseph Indexer: WordWise Publishing Services Senior Compositor: Gloria Schurick Manufacturing Buyer: Dan Uhrig © 2015 by European Decision Sciences Institute Published by Pearson Education, Inc. Old Tappan, New Jersey 07675 For information about buying this title in bulk quantities, or for special sales opportunities (which may include electronic versions; custom cover designs; and content particular to your business, training goals, marketing focus, or branding interests), please contact our corporate sales department at or (800) 382-3419. For government sales inquiries, please contact For questions about sales outside the U.S., please contact Company and product names mentioned herein are the trademarks or registered trademarks of their respective owners. All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher. Printed in the United States of America First Printing May 2015 ISBN-10: 0-13-405233-1 ISBN-13: 978-0-13-405233-5 Pearson Education Ltd. Pearson Education Australia PTY, Limited Pearson Education Singapore, Pte. Ltd. Pearson Education Asia, Ltd. Pearson Education Canada, Ltd. Pearson Educación de Mexico, S.A. de C.V. Pearson Education—Japan Pearson Education Malaysia, Pte. Ltd. Library of Congress Control Number: 2015933131 To my wife, Mona Stentoft, for your always positive mind and strong support on all aspects of life. —Jan Stentoft To my better half, Leena Paulraj. You are the wind beneath my wings. —Antony Paulraj To Judit, who has always seen me as the person I really am: young, handsome, and clever. —Gyula Vastag Contents Foreword About EDSI About the Editors Introduction: Exploring Innovations in Global Supply Chain Networks The Conference The Papers in This Book Acknowledgements Part 1 Supply Chain Strategy Chapter 1 Supply Chain Innovation: Lessons from Humanitarian Supply Chains Abstract Introduction The Context of Humanitarian Supply Chains Supply Chain Innovation (SCI) Research Methods Cash Transfer Programs as Innovation in Humanitarian Supply Chains The Case of Palestine Discussion Conclusions and Managerial Implications Acknowledgements References Chapter 2 Global Supply Chain Capabilities: A Framework Proposal Abstract Introduction Global Supply Chain Capabilities Capabilities to Go Global in a Supply Chain Supply Chain Processes as Key Capabilities Supply Chain Processes Conclusion References Chapter 3 An Empirical Study of Volume and Storage Flexibility in a Global Supply Chain Abstract Introduction Literature Review Research Methodology Results Conclusion References Chapter 4 When More Is Not Better: Complementarities, Costs, and Contingencies in Stakeholder Management Abstract Introduction Complementarities, Costs, and Contingencies Research Methods Results Concluding Discussion References Chapter 5 Changing Strategies in Global Wind Energy Shipping, Logistics, and Supply Chain Management Abstract The Emerging Global Market of Wind Energy Comparative Case Studies Basis: Global Interviews and Site Visits The Wind Market Compared to Other Industries The Global Wind Energy Market Shipping, Logistics, and SCM as a Supporting Industry to the Wind Market Supply Chain Models Onshore Supply Chain Models for Offshore Wind in Europe Offshore Wind Supply Chains in China Contrasted to Europe High-Level Perspectives on the Offshore Wind Supply Chains of South Korea Emerging Patterns of Winning Strategies and Business Models Continued Research and Invitation for Other Researchers Acknowledgments References Part 2 Global Distribution of Production and Sourcing Chapter 6 Manufacturing Back- and Near-Reshoring: A Comparison of European and North American Evidence Abstract Introduction Theoretical Background and Empirical Evidences from the Literature Review of Policies and Initiatives Aimed to Support Back-Reshoring The Uni-CLUB MoRe Database Findings from the Uni-CLUB MoRe Database Discussion Conclusions and Limitations Acknowledgments References Chapter 7 Getting the Most from Offshoring: Home Base Capability Upgrading and Erosion Abstract Introduction Theoretical Background Methodology and Data Data from Workshops and Case Studies Discussion and Implications Conclusion References Chapter 8 The Nature of the Relationship Between Continuous Improvement Techniques and Business Performance in the Portuguese Manufacturing Environment Abstract Introduction Background Methodology, Research Instrument, and Sample Results Conclusions and Implications References Chapter 9 Sourcing Innovation: A Systematic Literature Review Abstract Introduction Methodology Findings Why Sourcing Innovation Is Relevant First-Order Factors Conclusion References Appendix I—Distribution of Articles per Journal Appendix II—Spread of Articles across Years Chapter 10 How to Design an Appropriate Supply Network Structure to Reduce the Cost of Energy in the Danish Offshore Wind Power Industry Abstract The Offshore Wind Energy Sector The Design Concepts of the Supply Network Structure Method Supply Network Classifications, Typologies, and Taxonomies Typologies within Supply Network Literature Taxonomies Classifying and Analyzing Offshore Wind Power Supply Networks Conclusion References Part 3 Supply Chain Integration Chapter 11 Supply Chain Integration in Engineering, Procurement, and Construction Projects: An Explorative Study in the Offshore Wind Power Industry Abstract Introduction Background Offshore Wind Industry as a Unit of Study Research Design Findings Discussion Conclusions References Chapter 12 Integrating Domains in Supply Chains: Development of Requirements for Interdisciplinary Decision Support Based on an Integrative Framework of Production, Logistics, and Traffic Abstract Introduction Theoretical Framework Methodology Description and Analysis of the Integrative Framework of Production, Logistics, and Traffic Types of Interrelations in the Integrative Framework of Production, Logistics, and Traffic Final Results: How to Support Interdisciplinary Decision Making Conclusion Acknowledgements References Chapter 13 China’s E-commerce: Winning Factors and E-loyalty Abstract Introduction Literature Review Theoretical Background and Conceptual Model Hypothesis Development Methodology Concluding Remarks References Part 4 Sustainability Chapter 14 Anthropocene Age Wicked Challenges: Yin, Yang, and Sustainable Enterprise Excellence Abstract Wicked Challenges in the Anthropocene Age Innovation as an Anthropocene Yang SEER2: Waging Warfare with Wicked Challenges Assessment of SEER2 Performance and Impact Supply Chain Status in the Anthropocene Age: Why It Is Important to SEER2 A Neo-Technical Age, Not a Neolithic One: Analytics and Intelligence Conclusion References Chapter 15 Sustainability MCDM Model Comparisons Abstract Introduction Multicriteria Methods and Sustainability Illustrative Example Discussion Conclusions References Index Foreword It is with great pleasure that I write this foreword of a book with papers of the 2014 Annual Conference of the European Decision Sciences Institute (EDSI) held in the beautiful city of Kolding, Denmark, under the aegis of the Department of Entrepreneurship and Relationship Management at University of Southern Denmark. The meeting was organized around the theme “Exploring Innovation in Global Supply Chain Networks.” The meeting afforded the attendees an excellent opportunity to interact informally in the social events organized by the program committee and formally in the multifarious paper sessions, research panels, and plenary sessions featuring speakers from Danish industry. The conference dinner was held at the Kolding Castle, an impressive venue with a rich history. All in all, the 2014 EDSI conference was an excellent cultural and academic experience. The compilation of articles in this volume represents some of the interesting articles that offer new insights and directions for future research. Successful pursuit of innovation by leveraging the unique capabilities and knowledge assets of the supply network is at once important and difficult to achieve. As firms pursue global competitiveness, the ever present and concurrent demands for economies of scale and scope have necessitated a global presence. Consequently, most transnational manufacturing firms have a global footprint. Engaging a global supply network in the innovation process requires that the focal firm pursue network design and network integration with specific strategic imperatives in mind. Recent events as well as the global footprint of supply networks have also underscored the importance of inherent risks of extended supply networks and the need for sustainability of global operations. I am delighted to see a compendium of papers in this volume of the proceedings that address topics in these important areas pertaining to innovation in global supply networks. The papers in this volume address a diversity of interesting topics. They have been grouped into supply chain strategy, global distribution of production and sourcing, supply chain integration, and sustainability. The papers in the strategy section pertain to a variety of thought-provoking issues. The papers in the global distribution of production and sourcing address issues relating to offshoring and insourcing. The papers identify important antecedents of these two trends currently in place in a variety of industrial contexts. In addition, this section includes a paper on a comprehensive literature review of sourcing innovation, which would be invaluable to researchers. The section on supply chain integration features papers that deal with the offshore wind industry and integrative decision processes for effective integration. The last section features two papers on sustainability and its impact on performance and methodological approaches to evaluation of sustainability effects. These papers collectively reflect the core philosophy of the Institute to promote multidisciplinary research that addresses organizational problems. The papers contribute to the knowledge and serve to expand the domain of research in their areas. I am sure you will find the papers in this volume intellectually stimulating. —Ram Narasimhan, University Distinguished Professor and John H. McConnell Professor of Business, Eli Broad Graduate School of Management, Michigan State University, East Lansing, Michigan, President, Decision Sciences Institute (2009-2010) About EDSI The European Decision Sciences Institute (EDSI) is a professional organization of European researchers, managers, educators, students, and institutions interested in decision making in private and public organizations. Members of EDSI are automatically members of the Decision Sciences Institute (DSI), the leading independent nonprofit educational multidisciplinary professional organization of academicians and practitioners applying quantitative and behavioral approaches to managerial decision making throughout business, government, and society. About the Editors Jan Stentoft, PhD, is Professor in Supply Chain Management (SCM) at the Department of Entrepreneurship and Relationship Management, University of Southern Denmark, Kolding, Denmark. His research and teaching areas are within SCM, supply chain innovation, enterprise resource planning, and corporate social responsibility. Jan was among the founding members of the European Decision Sciences Institute (EDSI) and was president of EDSI from 2013 to 2014. He has more than 15 years of teaching experience and teaches primarily postgraduate, PhD, and MBA levels. He is head of a strategic research program focusing on supply chain innovation in the offshore wind energy sector (ReCoE— Jan has been published in many international peer-reviewed journals, books, book chapters, and practical articles in trade press journals and newspapers. He has published academic articles in a number of journals such as Journal of Operations Management, Journal of Supply Chain Management, Supply Chain Management: An International Journal, Supply Chain Forum: An International Journal, Journal of Cleaner Production, International Journal of Physical Distribution & Logistics Management, European Business Review, Journal of Purchasing & Supply Management, Operations Management Research, Logistics Research, Journal of Enterprise Information Management, and Industrial Management & Data Systems. He has practical industry experience from positions as director (Programme Management Office) at LEGO Systems A/S, ERP project manager at Gumlink A/S, and as a management consultant in a number of public and private enterprises. Antony Paulraj holds the Globalisation Professorship in Supply Chain Management at the Department of Entrepreneurship and Relationship Management, University of Southern Denmark, Kolding, Denmark. Prior to joining the University of Southern Denmark, he was a faculty member at the Coggin College of Business, University of North Florida, Jacksonville, Florida, USA. He has more than 10 years of teaching experience and has taught at the undergraduate, postgraduate, PhD, and executive MBA levels. He also has experience teaching postgraduate courses in many countries including the United States, India, France, Sweden, and Denmark. His primary research interests are in supply chain management, strategic sourcing, interorganizational relationships, supply chain innovation, and sustainable supply chain management. He has published in journals such as Journal of Operations Management, Journal of Supply Chain Management, Journal of Business Logistics, International Journal of Production Research, International Journal of Operations and Production Management, and Journal of Purchasing & Supply Management among others. He has also received several awards in research. He was the winner of the Institute for Supply Management’s Doctoral Dissertation Grant in 2002 for his outstanding doctoral research in the field of supply chain management. One of his articles received the 2007 Journal of Purchasing and Supply Management (JPSM) Best Paper Award. Additionally, another of his articles received the 2004 Journal of Operations Management (JOM) Best Paper Finalist Award. Gyula Vastag is Professor and Magyary Chair at the National University of Public Service (Budapest, Hungary) and Professor at Széchenyi University (Gy r, Hungary). He earned PhD and Doctor of Sciences degrees from the Corvinus University of Budapest and from the Hungarian Academy of Sciences, and finished habilitation at Corvinus University. From the late 1980s, he spent almost two decades in the United States on the faculties of the Kelley School of Business (Indiana University), the Eli Broad Graduate School of Management (Michigan State University), and the Kenan-Flagler Business School (University of North Carolina at Chapel Hill). Between 2005 and 2007, he was a visiting professor (part-time) at the University of Groningen (The Netherlands). He spent the 2000-2001 academic year in Stuttgart, where he was Professor and Dean of Supply Chain Management Programs and held a visiting professorship afterward. Dr. Vastag coauthored two books, wrote eight business cases, and has contributed chapters to 15 books. His papers (30+ refereed journal publications) were published in a variety of peerreviewed academic and professional journals in the United States and in Europe. Gyula received several research awards, most recently the New Central Europe Distinguished Senior Researcher Scholarship (2014). He is a founding member and member of the executive board of the European Decision Sciences Institute, Vice President for Global Activities, and member of the executive board of the Decision Sciences Institute, where he has also served as program chair and track chair of DSI conferences. Introduction: Exploring Innovations in Global Supply Chain Networks The Fifth Annual Conference of the European Decision Sciences Institute (EDSI) was hosted by the University of Southern Denmark in Kolding, Denmark. The University of Southern Denmark has more than 27,000 students and more than 3,500 employees. The university offers teaching and research at six campuses situated on Funen in Odense; in Southern Jutland in Kolding, Esbjerg, and Sønderborg; in West Zealand in Slagelse; and in the capital city, Copenhagen. The Department of Entrepreneurship and Relationship Management, based in Kolding, hosted the conference. It has approximately 85 employees. Important research areas are within the spearheads of entrepreneurship and relationship management. The department has a longstanding tradition of problem-oriented cooperation that transcends the traditional boundaries between research areas. This is realized through a long line of externally financed research projects. Part of the research activities are carried out individually and part in cooperation with other national as well as international research groups. The Conference The conference was held at Hotel Koldingfjord, located in delightful country surroundings right by the water’s edge of Kolding Fjord. There was a great interest for the 2014 EDSI conference. When the deadline for revised full papers and work-in-progress papers became a reality, 43 full papers were accepted for the conference. The conference had a total of 56 participants from 15 different countries, including the United States, Finland, Sweden, Morocco, Spain, Portugal, Germany, Turkey, Australia, Hungary, Italy, China, England, Switzerland, and Denmark. The conference started June 28, 2014, with a Doctoral Consortium. On June 29, an optional trip to LEGO Land was organized, followed by the welcome reception. The conference with keynote speeches, plenary discussions, and paper presentations took place on June 30 and July 1. On July 2, an optional company trip to Siemens Wind Power was organized. Doctoral Symposium The European Decision Sciences Institute’s Doctoral Student Consortium was held at the University of Southern Denmark in Kolding, Denmark. The EDSI Conference is one of the premier venues for empirically focused operations management (OM) and supply chain management (SCM) research in Europe. This year, the consortium adopted a new format that focused more on research-related activities. The highlight of this new format is that a group of OM and SCM scholars served as faculty mentors for the participating doctoral students. Given this intensive incubator format, the doctoral students had the opportunity to present their research proposals to a panel of faculty who provided one-onone feedback and guidance on each proposal. This year, 14 PhD students participated in the doctoral consortium. The students were from countries including Denmark, Sweden, the United Kingdom, and Brazil. The consortium coordinators were Professor Antony Paulraj and Professor Constantine Blome. In addition to these coordinators, Professor Asoo Vakharia, Professor Gyula Vastag, Professor Ram Narasimhan, and Professor Vaidy Jayaraman served as faculty mentors. Keynote Speakers Henrik Stiesdahl, Chief Technology Officer, Siemens Wind Power, provided a keynote speech on June 30 with a presentation titled “Supply Chain Innovation in the Offshore Wind Industry.” Mads Nipper, Chief Marketing Officer, The LEGO Group, provided a keynote speech on the morning of July 1 with a presentation titled “Joint Innovation with Suppliers, Customers, and Consumers.” Company Visit at Siemens Wind Power During the visit to the Siemens Wind Power plant in Brande, EDSI participants had the opportunity to see the assembly process of the two offshore turbines manufactured by Siemens Wind Power (the geared 4 MW and the direct-drive 6 MW). Additionally, they also saw one of the blades manufactured by the company, which uses a patented process that fabricated the whole blade as a single piece with no joints or welding points. This makes these blades the biggest single-piece components manufactured in the world. Additionally, the participants had the chance to observe how the assembly of modules takes place and how the machines move through the assembly line. The purpose of the visit was to provide EDSI participants the opportunity to witness the supply chain innovations taking place at the company. The Papers in This Book In all, 15 papers are included in this book. Based on the focus of research, these papers are divided into four parts: Part 1, “Supply Chain Strategy,” Part 2, “Global Distribution of Production and Sourcing,” Part 3, “Supply Chain Integration,” and Part 4, “Sustainability.” Supply Chain Strategy Five papers are included in this section. The first paper is written by Graham Heaslip, Gyöngyi Kovács, and Ira Haavisto and is titled “Supply Chain Innovation: Lessons from Humanitarian Supply Chains.” The paper argues that supply chain innovation (SCI) is an under-researched and elusive concept, especially when it comes to innovation practices in the supply chain. The innovation in focus is the move from delivering materials in aid toward cash transfers, and how this innovation impacts the supply chain. Based on these insights, the paper contributes a refined SCI model and subsequently outlines avenues for further research within supply chain innovation. The second paper is written by Marco Antonio Viana Borges and Luciana Marques Vieira and bears the title “Global Supply Chain Capabilities: A Framework Proposal.” Based on extant literature, this paper presents a conceptual framework showing the capabilities required by companies to move up in a global supply chain. The paper presents a framework that proposes it is important to develop productive, innovative, and interactive capabilities. Eight supply chain processes are presented as the means to achieve these capabilities. The third paper is authored by Yavuz Acar, Sukran N. Atadeniz, and Faiza Zalila and has the title “An Empirical Study of Volume and Storage Flexibility in a Global Supply Chain.” The purpose of this empirical paper is to investigate the combined effect of volume and storage flexibility on the operational performance of a global specialty chemicals company. The supply chain is modeled using both optimization and simulation techniques. The paper provides valuable insights for the company management by displaying the degree of flexibility that would be most beneficial and be achieved with the least amount of investment. The fourth paper is written by Roberto Garcia-Castro and Claude Francoeur and is titled “When More Is Not Better: Complementarities, Costs, and Contingencies in Stakeholder Management.” In this empirical paper, the authors rely on set-theoretic methods and a large international dataset of 1,060 multinational companies to theoretically and empirically explore some of the complementarities, costs, and contingencies likely to arise in stakeholder management. The results show that stakeholder investments are more effective when done simultaneously across all the relevant stakeholder groups and when there are no disproportionally high investments. The fifth paper, written by Thomas Poulsen, is titled “Changing Strategies in Global Wind Energy Shipping, Logistics, and Supply Chain Management.” Based on extensive case studies, this paper reviews different wind energy markets globally. Within the global wind energy market, a number of derived industries—such as shipping, logistics, and supply chain management—support the continued expansion of the ever larger onshore and offshore wind farms. Subsequently, a number of supply chain setups serviced by the shipping, logistics, and supply chain management industry are reviewed, and the winning business models and strategies of current and emerging supply chain constituencies are discussed.
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