PurposeThe purpose of this paper is to integrate sustainability and economic factors into a framework for understanding the reshoring decision.Design/methodology/approachThis paper integrates sustainability and economic factors into a reshoring framework through using the theoretical perspectives of the natural resource-based view (NRBV) and transaction cost economics (TCE), and carrying out case study research with a number of firms involved in reshoring in the German automotive industry.FindingsThrough adopting a multi-theory approach, the framework captures the complexities of the reshoring decision and illustrates that reshoring is not a location decision alone, but encompasses a range of sourcing options such as local production in-house, using a local supplier or addressing sustainability problems with the offshore operation. The importance of sustainability capability development as a basis of extending the range of reshoring sourcing options available is highlighted.Research limitations/implicationsUsing the NRBV has allowed to develop value creating drivers in the context of reshoring. Integrating the logic of TCE with this analysis provided an understanding of how cost reducing drivers were present alongside the value creating drivers for reshoring at the case companies. Beyond previous frameworks integrating the RBV and TCE, bringing in the NRBV allowed us to highlight the importance of sustainability capability development as a basis of extending the range of reshoring sourcing options available. While this study's cases were in the automotive industry in Germany, future research could sample for further geographies and industries to cover varying regulatory pressures for sustainability as well as sustainability-related industry initiatives.Practical implicationsThe framework can provide guidance to managers on the conditions that favour the selection of each sourcing option when making the reshoring decision.Originality/valueAlthough there are frameworks in the literature that explain the reshoring decision, limited attention has been given to integrating sustainability issues into the analysis. The findings here contribute important insights into the complementary and contradictory prescriptions of the NRBV and TCE in reshoring decisions, and several propositions are offered outlining these relationships. The resulting framework provides an integrated approach for managerial decision-making beyond economic factors alone.
Purpose-The purpose of this perspective article is twofold. First, it discusses how the critical incident technique (CIT) can serve as a method for identifying competences required in operations and supply chain management (OSCM) in combination with a systematic literature review (SLR) and Delphi approach. Second, it discusses how the CIT can be used for pedagogical purposes and can support the development of the resulting competences in teaching by using critical incidents (CIs) identified during the research process as a form of problem-based learning (PBL). Thus, we illustrate how CIT can drive competence-oriented research and educational advancements to address complex and dilemma-struck challenges in OSCM. Design/methodology/approach-We provide an overview of CIT in the context of research and education and illustrate CIT's role in identifying competences and developing them through training. Based on previous use of CIT for the identification of sustainable sourcing competences and subsequent training, we highlight CIT's broader applicability and extend the discussion to other areas in OSCM, such as supply chain resilience and leveraging new technologies. Findings-We propose CIT as an effective tool for recognising and developing competences in OSCM. Both future research implications and pedagogical implications are offered. The strengths and limitations of CIT as a method in both research and educational settings are explored. Research limitations/implications-The illustration of CIT's application is limited to research on identifying and training sustainable sourcing competences. Further research is recommended to extend CIT's application to other OSCM areas. Practical implications-For OSCM researchers, educators and practitioners, CIT offers a structured approach to identifying and teaching needed competences, ultimately contributing to more effective training programs in complex supply chain environments. Social implications-For society at large and professional OSCM communities, the ability to adapt to new regulatory and economic realities and address the complex and dilemma-struck challenges in OSCM is highly desirable. Originality/value-We position CIT as a dual-purpose tool for research and education in OSCM. CIT is useful for both identifying competences and training future OSCM leaders, offering a method that can be applied to various complex areas in the field, intended to inspire future research and teaching.
To succeed in the face of constantly changing business challenges, Purchasing and Supply Management (PSM) needs to develop strong knowledge management (KM) mechanisms to equip individuals with accurate, reliable, and up-to-date knowledge and has, therefore, become a significant factor in building competence in this area. Although inter-organizational processes within the context of supply chains and supplier development have previously been studied, little is known about the transformative nature of the PSM function itself. Following a process perspective and drawing on the SECI model of knowledge creation, we contextualize the construct of knowledge assets in PSM and conceptualize mechanisms behind their conversion. Based on thirty-four interviews with PSM practitioners, we show how PSM knowledge is curated and study the applications of KM dynamics within the PSM practice. Our work also highlights barriers to this process and provides recommendations for improving PSM practices and strengthening learning capabilities.
Due to various factors, including the institutional context of suppliers, the successful implementation of sustainability initiatives remains a persistent challenge for purchasing and supply management (PSM) professionals. Sourcing from the Base of the Chain (BoC) requires buyers to be cognizant of and assess challenges inherent in engaging with the Bottom of the Pyramid (BoP) institutional context. Designing governance structures that facilitate the simultaneous pursuit of economic and social goals demands a thorough understanding of these challenges and their contextual antecedents. The literature has addressed institutional voids and incompatibilities between buyer-BoC supplier institutional contexts as critical factors informing interventions aimed at overcoming sourcing challenges. Drawing upon social agency theory, our study advances these debates. We argue that the broader institutional and social context serves as the contextual antecedents to principal-agent (P-A) relationships established between buyers and their BoC suppliers. This perspective provides a more enriched explanation for the antecedents of BoC sourcing challenges. We draw on a multiple case study incorporating 31 interviews and archival data of five BoC sourcing programs within the Australian agribusiness sector. Our findings shed light on how BoC institutional voids cause BoC sourcing challenges across supplier and product domains by inducing hidden information, hidden action, and hidden logic as social agency problems. Hidden logic, a new type of social agency problem identified in our study, refers to the agents' socially constructed sets of assumptions, values, beliefs, and traditions that are invisible to the principals. Consequently, we present insights into why governance structures addressing BoC sourcing challenges may vary across institutional contexts, providing practical guidance for buyers in developed economies concerning the subsequent design and execution of effective BoC sourcing strategies.
Purpose This paper seeks insights into how multinational enterprises restructure their global supply chains to manage the uncertainty caused by geopolitical disruptions. To answer this question, we investigate three significant geopolitical disruptions: Brexit, the US-China trade war and the coronavirus disease 2019 (Covid-19) pandemic. Design/methodology/approach The study uses an inductive theory-elaboration approach to build on Organisational Learning Theory and Dunning’s eclectic paradigm of international production. Twenty-nine expert interviews were conducted with senior supply chain executives across 14 multinational manufacturing firms. The analysis is validated by triangulating secondary data sources, including standard operating procedures, annual reports and organisational protocols. Findings We find that, when faced with significant geopolitical disruptions, companies develop and deploy supply chain structural ambidexterity in different ways. Specifically, during Covid-19, the US-China trade war and Brexit, companies developed and deployed three distinct types of supply chain structural ambidexterity through (1) partitioning internal subunits, (2) reconfiguring supplier networks and (3) creating parallel supply chains. Originality/value The findings contribute to Dunning’s eclectic paradigm by explaining how organisational ambidexterity is extended beyond firm boundaries and embedded in supply chains to mitigate uncertainty and gain exploration and exploitation benefits. During significant geopolitical disruptions, we find that managers make decisions in tight timeframes. Therefore, based on the transition time available, we propose three types of supply chain structural ambidexterity. We conclude with a managerial framework to assist firms in developing supply chain structural ambidexterity in response to geopolitical disruptions.
With the rising global awareness of sustainable development issues, hybrid ventures have increasingly brought their solutions across borders to scale their impact internationally. Yet, prior research has largely concentrated on international scaling undertaken via sales growth for economic goals. We instead offer an elaborated conceptualisation of international impact scaling, which includes internal growth, partnership, and dissemination downstream and upstream in the value chain. Stemming from prior research that views capabilities as critical 'firm-specific advantages' for international expansion, we investigate which capabilities hybrid ventures leverage when scaling impact internationally and to what extent they differ across scaling strategies. We adopt a qualitative method to analyse seven B Corps, a type of hybrid venture whose impact is certified. The findings reveal three clusters of foundational capabilities that B Corps leverage irrespective of the specific scaling strategy adopted, alongside a range of targeted capabilities that are specifically important to each international scaling strategy. The study contributes to international scaling research and the literature on hybrid ventures.
Paramount to the transition to the circular economy is the transformation of existing supply chains. We build on the theory of the supply chain to study circular design features and the enabling role of information and financial flows needed for circularity. We study five exemplars for environmental leadership to illuminate how material flows are enabled by information and financial flows to leverage cross-industry waste flows (i.e., open loops) and customer returns (i.e., closed loops). While both open and closed loop designs can lead to a bottom-up transition towards the circular economy, there are differences in the enabling role played by outward and inward information flows. Further, we unpack the supporting role of inward and outward financial flows toward customers, suppliers and non-supply chain stakeholders for creating a viable supply and demand circular market and a wider community in which circular supply chain can be embedded.
Research on sustainable supply chain design has highlighted that three types of flows — material, information, and financial — are needed to arrive at sustainable supply chain designs with sustainable outputs and outcomes. This research investigates configurations of these flows in a circular supply chain context, the significance of each flow type in enabling circularity, and the role of capabilities in managing them. The winners of environmental awards within the B Corp certification scheme have been analysed. This entails data from 200 B Corps in a secondary data analysis as well as a qualitative data analysis of 15 interviews plus additional materials around six case study firms. The results highlight the need for integrative designs of all types of flows, as well as the paramount role of capabilities in the successful implementation of circular supply chain designs, including those related to stakeholder relationship management, supply chain collaboration for improved supply chain transparency, and systemic thinking.
We answer the question “How do companies develop and deploy supply chain structural ambidexterity to effectively manage geopolitical disruptions?” by investigating three significant geopolitical disruptions: Brexit, the US-China trade war, and the Covid-19 pandemic. We use an inductive theory-elaboration approach to build on Organisational Learning Theory and Dunning’s eclectic paradigm of international production. We conducted 29 elite interviews with senior supply chain executives across 14 multi-national manufacturing firms and validated the analysis by triangulating secondary data sources, including standard operating procedures, annual reports, and organizational protocols. When faced with significant geopolitical disruptions, companies develop and deploy supply chain structural ambidexterity by (1) developing parallel supply chains; (2) significantly reconfiguring their supplier networks, and (3) restructuring their internal sub-units. We contribute to Organisational Learning Theory and Dunning’s eclectic paradigm by empirically examining how companies reconfigure supply chains to pursue exploration and exploitation activities in response to geopolitical disruptions. During significant geopolitical disruptions, managers make decisions in tight timeframes. Therefore, we propose three types of supply chain structural ambidexterity based on the transition time available. We conclude with a managerial framework to assist firms in developing supply chain structural ambidexterity in response to geopolitical disruptions.
A growing number of social businesses in developing countries provide market-based solutions to societal challenges, often with significant technical and financial backing from Western intermediary organizations. In this study, we use extensive interview data to investigate how Colombian social businesses translate and adapt novel social business practices in their ecosystem. Our analysis reveals how, in the face of local on-the-ground realities, reliance on imported practices and resources exposes Colombian social businesses to a legitimacy deficit and resource dependence. The intertwined challenges of building legitimacy and achieving resource autonomy lead to different scaling strategies that are contingent on the entrepreneur's social identity.
Overcoming constrained resources and enabling social, environmental, and economic value creation for stakeholders remains a managerial challenge. Small enterprises in the bottom of the pyramid (BoP) context offer an opportunity to extract insights into orchestration of resources amidst such challenges. Extensive qualitative data collected via text analysis, field visits, and expert interviews with two social intermediaries and managers of eleven small enterprises operating in BoP markets were analyzed to understand how small enterprises engage with stakeholders to structure, bundle, and leverage resources, as well as how they address environmental contingencies and social challenges in poverty settings. The findings highlight that companies must move beyond an economic resource focus and engage a diverse stakeholder network, leveraging social intermediaries for resource orchestration throughout lifecycle stages. The emergent framework elaborates on Resource Orchestration Theory (ROT), with propositions related to resource management mechanisms, capabilities offered by social intermediaries, and contingencies for social value creation.
In order to implement sustainability standards in practice, capabilities are needed at the organizational level as well as at the individual level. The presented sustainable purchasing and supply management (SPSM) competence model is based on the combination of a systematic literature review (SLR) and a Delphi study. The competence model outlines specific SPSM competences which are divided into functional-oriented, cognition-oriented, social-oriented and meta-oriented competence clusters. We also discuss their applicability during typical purchasing and supply management processes. Each of the 26 competences is presented with a short definition as well as exemplary behaviors. For research on SPSM from an organizational point of view, the analysis of the relevance of competences with regard to purchasing process stages offers a conceptual basis for bringing sustainability into overall PSM models, instead of positioning sustainability as an ‘add-on’ activity, which risks the potential of sustainability issues becoming marginalized. The resulting SPSM competence model can serve as a basis for improving teaching and training in both higher education and professional training contexts. In practice, it can also serve to aid the selection of new employees, evaluate employee performance, create development plans or build HR systems.
We aim to advance the theory of sustainable supply chains by investigating politically induced structural transitions for sustainability using the case of the palm oil supply chain. We elaborate sustainability transitions mechanisms resulting from key supply chain stakeholders’ efforts to augment their agency for influence in response to political tensions from states and corporations. We find that political tensions render latent influence gaps salient as key supply chain stakeholders feel pressured to respond to criticisms either to fill the institutional gaps or to advance transparency regimes. Our findings contribute to theory, practice, and policy associated with the governance of sustainability transitions in supply chains considering its political economy.
The raison d'être for this article is simple: traditional ways of researching, theorizing, and practicing purchasing and supply management (PSM) are no longer sufficient to ‘meet the moment’. Scholars need to advance a “business-not-as-usual” footing approach to their work, if they are to make a meaningful contribution to addressing the current and future emergencies, as highlighted by recent extreme weather and the COVID-19 pandemic. Yet, what can this, or should this, mean for a field rooted in traditional business thinking? This article builds on the Journal of Purchasing and Supply Management's (JPSM) 25th Anniversary Special Issue editorial (2019);members of the JPSM's editorial team advance their unique perspectives on what “business-not-as-usual” means for PSM. Specifically, we advocate both thinking much more widely, in scope and ambition, than we currently do, and simultaneously building our ability to comprehend supply chains in a more nuanced and granular way. We explore whether the bias toward positivist work has omitted potentially interesting findings, and viewpoints. This leads to a call to re-think how we approach our work: should the key criteria always be to focus on theory development or testing? Should academics “think bigger”? Turning to specific research themes, illustrations of how our current thinking can be challenged or broadened by addressing the circular economy, and role of purchasing and innovation. Specifically, the focus on the PSM function as an intrapreneur within the larger organization, and the role of innovation and technology in PSM work. Taken together, we hope the ideas and arguments presented here will inform and inspire ambitious and novel approaches to PSM research with significant and enduring impact on the transformation of business.
Purpose Driven by increasing concerns for sustainable development and digitalization, intermediaries have emerged as relevant actors who can help supply chains tackle grand societal challenges. They can also trigger significant changes in structure, shape and governance models of supply chains. The goal of this research is to advance the understanding of supply chain intermediation and digital governance as coordinating mechanisms for enabling multi-level collective action to address the world's grand challenges. Design/methodology/approach This is a conceptual research paper that uses a vignette approach, where real examples are described to help question and expand theoretical insights and provide a basis for future research. The examples are drawn from past and ongoing extensive primary and secondary data collection efforts in diverse types of supply chains. Findings Three contexts are proposed to illustrate how intermediaries and digital governance can play a key role in helping supply chains tackle grand challenges. The first and second context highlight the differences between material and support flow intermediaries in a triadic supply chain relationship. The third context illustrates intermediation within a multi-level network which can be industry-specific or span across industries. The three contexts are evaluated on the level of intervention, the focus on material or support flows, and traditional or digital governance. The specific Sustainable Development Goals which can be tackled through intermediary intervention are also indicated. Originality/value Intermediaries are often hidden actors in global supply chains and have received limited attention in the academic literature. The conceptual foundation provided in this manuscript serves as the basis for future research opportunities. Three main avenues for further research in this domain are proposed: (1) novel forms of intermediation beyond economic and transactional arrangements; (2) novel forms of digital governance; and (3) translating multi-level collective action into sustainable development outcomes. Research on intermediation driven by sustainable development and digitalization trends can spur empirical advances in sustainable supply chain and operations management with important societal impact.