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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.
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Printed in the United States of America
First Printing May 2015
ISBN-10: 0-13-405233-1
ISBN-13: 978-0-13-405233-5
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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.
www.decisionsciences.org/europe#europe
http://edsi.uni-nke.hu
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—www.recoe.dk). 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.