We describe the process used to identify the ten most influential papers published in the Production and Operations Management ( POM) journal in its first thirty years. We also briefly discuss and highlight the selected papers.

The bullwhip effect (BWE) is an important phenomenon in the operations and supply chain management field. Although it is commonly accepted that the BWE is widespread and can have a significant adverse impact on financial performance, there is surprisingly limited objective evidence on the financial consequences of the BWE. This paper examines the impact of the BWE on financial performance by examining the relationship between the BWE and stock price performance. The empirical analysis is based on data from 1985 to 2018 from about 7200 publicly traded firms and about 64,000 firm-years. We find that most results on the impact of the BWE on stock returns are statistically indistinguishable from zero. The few marginally significant results that we find suggest a positive relationship between the BWE and stock returns rather than the expected negative relationship. However, these marginally significant results do not hold when alternate methods are used to test the relationships. These conclusions are robust when we segment the sample by size, industry, and time periods. We also do not find a significant relationship between the BWE and stock returns for samples based on the propagation of the BWE from customers to suppliers. We do find some evidence to suggest that the BWE has a negative impact on inventory turnover. However, we do not find similar evidence for capacity utilization. The relationships between the BWE and return on assets measures are statistically insignificant. For margin measures, the relationships are positive and statistically significant but not economically significant.

Purpose The growing focus on socially responsible supply chain management (SRSCM) has made it crucial to extend corporate social responsibility (CSR) to upstream suppliers. Drawing on resource dependence theory, this study aims to examine how supplier dependence upon socially responsible buyers impacts suppliers' CSR performance and how this relationship is moderated by network prominence and demand uncertainty. Design/methodology/approach The proposed hypotheses are tested using regression analysis with Heckman's two-stage model and a dyadic supply chain dataset constructed based on publicly traded Chinese firms between 2008 and 2016. This time window is selected due to a one-year lag of the dependent variable and the change in evaluation methods of the database providing CSR performance in 2018. Findings The empirical results indicate that supplier dependence upon socially responsible buyers is positively associated with suppliers' CSR performance. However, this positive relationship is attenuated when suppliers occupy a prominent position in the network or when they face high demand uncertainty. Originality/value This study extends knowledge about the role of relationship dependence in implementing SRSCM by highlighting its positive impact on suppliers' CSR. Thus, this study contributes to the buyer–supplier relationship literature and the power and relationship dependence literature. This study further advances the understanding of the factors that influence suppliers' behavior by exploring the moderating roles of network prominence and demand uncertainty. The results have several practical implications for managers and policymakers.

We describe the pioneering role of the Production and Operations Management (POM) in promoting empirical research in innovation, operations, and supply chain management. We also review and discuss the most influential empirical papers published in POM based on each paper's Google Scholar citation counts. We selected the top 200 cited papers from the 2085 papers published or forthcoming in POM to identify the most influential empirical papers. We classify these 200 papers into three categories: (a) review and conceptual development, (b) analytical, and (c) empirical papers, and then compare these papers across the categories in terms of citation counts. Next we analyze the 75 empirical papers from the top 200 cited papers published in POM by covered topics, data sources, and data analysis methods. Focusing the analysis on empirical papers among the top 200 cited papers can underrepresent emerging themes among the more recently published empirical papers. Therefore, we also analyze 19 more recent empirical papers from 2016 to 2021 that are not covered in the top 200 cited papers but have been impactful given the brief time since their publication. We conclude by offering our thoughts on how editors, reviewers, and authors can work together to further enhance and ensure the quality and influence of future operations management (OM) empirical science research.

We describe the pioneering role of the Production and Operations Management ( POM ) in promoting empirical research in innovation, operations, and supply chain management. We also review and discuss the most influential empirical papers published in POM based on each paper's Google Scholar citation counts. We selected the top 200 cited papers from the 2085 papers published or forthcoming in POM to identify the most influential empirical papers. We classify these 200 papers into three categories: (a) review and conceptual development, (b) analytical, and (c) empirical papers, and then compare these papers across the categories in terms of citation counts. Next we analyze the 75 empirical papers from the top 200 cited papers published in POM by covered topics, data sources, and data analysis methods. Focusing the analysis on empirical papers among the top 200 cited papers can underrepresent emerging themes among the more recently published empirical papers. Therefore, we also analyze 19 more recent empirical papers from 2016 to 2021 that are not covered in the top 200 cited papers but have been impactful given the brief time since their publication. We conclude by offering our thoughts on how editors, reviewers, and authors can work together to further enhance and ensure the quality and influence of future operations management (OM) empirical science research. Keywords citation analyses , empirical research , future research enhancement , primary and secondary data

Government trade actions are an increasing source of supply chain risk. This research provides empirical evidence of the stock market reaction to trade actions against a targeted firm on other firms in the targeted firm's supply chain eco-system. We test our hypothesized stock price effects using the case of the 2018 US government ban on US firms from supplying to ZTE, a Chinese telecommunications manufacturer. We estimate the ban's effects on ZTE's tier-one US and non-US suppliers, as well as the upstream and downstream supply chain propagation effects by considering ZTE's tier-two suppliers and business customers. We also estimate impacts to ZTE's competitors. We find that tier-one US suppliers experienced a stock price effect of -3.33% following the ban, and the reaction was more negative for those suppliers more dependent on ZTE for revenues. We find a stock price effect on tier-two suppliers of -0.40%, but an insignificant effect on non-US tier-one suppliers. Business customers experienced a stock price effect of 0.66%, and the competitors' stock price effect was 1.34%. The reversal of the ban 4 weeks later resulted in a stock price effect of 1.56% for tier-one US suppliers, 1.72% for tier-one non-US suppliers, and 1.35% for competitors.

Firms implement proactive environmental practices (PEPs), and governments in developing countries such as China implement environmental policies such as pilot and demonstration programs to promote these PEPs. However, it remains unclear whether and when firms recognized by such governmental programs improve financial performance. Using a sample of 233 firms recognized by a national Chinese government environmental program, event study is employed to estimate stock market reaction of recognized firms. The Heckman two-stage procedure is followed to examine the moderating effects. We find that the average stock market reaction is not significant. Cross-sectional analyses indicate that firms with earlier recognitions, recognized for demonstration projects (compared with pilot ones), and operating in more-polluting industries have greater market reactions, while types of PEPs (internal versus external), export intensity and government ownership (state-owned or not) do not moderate the market reaction. This paper provides implications for firms about whether and when they should participate in a government environmental program.

The chief digital or data officer (CDO) manages big data, analytics, and new information strategies in organizations. CDO appointments are strategic, and we ask the question on whether announcing such appointments affect a broader market reaction. Our results show that although the stock market reaction is generally neutral to newly created CDO positions, it does react positively under certain conditions. The reaction is more positive when firms have strong growth prospects and do not have existing chief information officers (CIOs). The market also reacts positively to an outsider CDO when CIOs are absent. Using these findings, we argue firms need to effectively communicate the need and value of CDO positions and to ensure that they do not muddle CDO and CIO responsibilities.

This study provides empirical evidence on the effect of the September 2015 Volkswagen diesel emissions scandal on the stock prices of publicly traded firms in the global automotive ecosystem. We focus on both the supply chain partners of VW—tier‐1 suppliers; tier‐2 suppliers; and business customers—and three groups of firms that are not VW supply chain partners—other motor vehicle manufacturers; parts manufacturers not identified as VW suppliers; and wholesalers, retailers, and rental agencies not identified as VW customers. We find that tier‐1 suppliers of direct material to VW suffered a mean stock price reaction of ‒2.69% in the week following the scandal, but this effect varied by region. European suppliers were the most impacted with a mean stock price reaction of ‒5.52%. Suppliers with larger revenue dependence on VW experienced greater negative stock price reactions, as did suppliers of components for engines and/or emissions systems. Non‐VW parts manufacturers experienced a positive effect. We find a mean stock price reaction of ‒5.28% to VW’s European customers, but no significant effects for non‐VW customers. European motor vehicle manufacturers experienced a mean stock price reaction of ‒7.60%. Our results suggest that firms should not just focus on selecting and monitoring responsible suppliers but also apply some of the same principles to developing responsible customers. Our work also has implications for industry groups, regulators, and legal systems, entities that have the resources and capabilities to effectively monitor large firms to reduce illegal or irresponsible behavior such as the VW scandal.

Over the last two decades, firms have been appointing corporate sustainability executives (CSEs) to be part of their top management teams. Although there is a vast literature on sustainable practices and their relationships with various measures of firm performance, little is known about the nature of the empirical link between CSE appointments and financial performance. We add to the understanding of this link by estimating the stock market reactions to a sample of 115 announcements of CSE appointments made by firms during the period 2000–2018. Our findings using event study methodology, followed by regression analyses, suggest that although the stock market reaction to CSE appointments is not significantly different from zero, the stock market reacts more, or less positively under certain firm- and industry-specific conditions. We find that the stock market reaction is more positive in instances where the announcing firms faced a prior adverse sustainability-related incident, and less positive when announcing firms operate in industries that face relatively greater levels of regulatory sanctions. Also, we find that the stock market reaction is more positive when firms announce CSE appointments with focused as compared to broad responsibilities. Additionally, we find that CSE appointments are associated with subsequent improvements in operating performance – partly driven by a decrease in total costs and partly by an increase in sales. Overall, our findings support the strategy of appointing CSEs to top management teams and enable executives and stakeholders to more deeply understand the shareholder value and operating performance effects of appointing CSEs.

This article investigates the stock market reaction to appointments of newly created chief digital or data officer (CDO) positions. The analysis is based on a sample of 112 CDO appointment announcements by publicly traded companies listed in the US stock market from 2004 to 2017. We ground our arguments in signaling theory along with the institutional entrepreneurship and synergy and redundancy perspective to understand the factors that could influence the market reaction to CDO appointments. Although the results show that the stock market reacts neutrally to announcements of newly created CDO positions, the market does react positively under certain conditions. The market reacts positively when appointing firms exhibit high growth prospects. The article supports the redundancy perspective, and the results show that the market reacts positively when a potentially conflicting and overlapping role such as chief information officer (CIO) is absent in appointing firms. Our analysis also shows that when CIO is absent, the market reacts more positively to outsider CDO relative to insider CDO, thereby indicating the interaction between redundancy and institutional entrepreneurship perspectives.

Service excellence is viewed as firms providing high levels of service quality that in turn generate high customer satisfaction. Studies have empirically linked service excellence and firm performance. We add to the understanding of this link by examining the association between delivering service excellence and shareholder value. Delivering service excellence is proxied by announcements of winning service awards and shareholder value is assessed by the stock market reaction to such announcements. Our empirical analyses are based on a sample of 316 announcements by firms winning service awards between 2001 and 2016. We find that the average market reaction to winning service awards is 0.42%. The market reaction depends both on prior performance and firm size. Growth prospects of firms is not a significant factor in determining the market reaction. Interestingly, we find that firms operating in less competitive industries have a higher market reaction compared to firms operating in more competitive industries. We also find that winning a service award is associated with subsequent improvements in operating performance measured as return on assets (ROA), return on sales (ROS) and total cost over sales (TCOS).

Reserves of cobalt and nickel used in electric-vehicle cells will not meet future demand. Refocus research to find new electrodes based on common elements such as iron and silicon, urge Kostiantyn Turcheniuk and colleagues. Reserves of cobalt and nickel used in electric-vehicle cells will not meet future demand. Refocus research to find new electrodes based on common elements such as iron and silicon, urge Kostiantyn Turcheniuk and colleagues.

Assigning direct responsibility to retailers lets factory owners and governments off the hook, write Brian Jacobs and Vinod Singhal

Supply chain and reputational risks are often assumed to motivate firms to source production in developed, high‐cost countries rather than developing, low‐cost countries. To examine this assumption, we provide evidence from the collapse of the Rana Plaza building on April 24, 2013, which with its 1133 fatalities and 2438 injuries is seen as one of the worst industrial accidents in history. Do markets reactive negatively enough to such events to motivate firms to shift their sourcing strategy? We analyze the stock market reaction to the Rana Plaza disaster in the Bangladeshi ready‐made garment industry to address this question. Our analysis is based on a sample of 39 publicly traded global apparel retailers with significant garment sourcing in Bangladesh. Stock market reaction to retailers on the day of the Rana Plaza disaster is negative, but its magnitude and significance dissipate by the following day. We find no evidence of significant stock market reaction during the 11 trading days (approximately two weeks in calendar time) following the disaster. Retailers responded to the disaster by developing two different agreements to improve factory and worker safety in Bangladesh – the Accord on Fire and Building Safety in Bangladesh (AFBSB), and the Alliance for Bangladesh Worker Safety (ABWS). We find no evidence of significant stock market reaction to the announcements of the AFBSB and the ABWS. The insignificant negative economic impact from the Rana Plaza disaster suggests that retailers have little economic incentive to move sourcing out of Bangladesh or other low‐cost countries so as to reduce the risk of being involved in such events. We discuss the implications of our results for retailers, non‐governmental organizations (NGOs), garment factory owners in Bangladesh, the Bangladeshi government, and academic researchers.

The special issue emerges at a time of intense debate concerning the role of manufacturing in the developed world. A general consensus that manufacturing strengthens the economy in which it is carried out and that innovation follows manufacturing combines with a recognition that manufacturing carried out in a high-cost environment must pay its own way, as governments and shareholders are not willing to make up for unprofitable activities. There is also considerable skepticism as to whether manufacturing has a role to play in a developed economy. In this lead article, we summarize the contributions to the special issue and the solution space that they provide in which manufacturing in a high-cost environment ends up being the low-cost alternative.

Problem definition: This paper provides empirical evidence on the effect of the 2011 Great East Japan Earthquake (GEJE) on the financial performance of firms. Academic/practical relevance: The GEJE was characterized as the most significant disruption ever for global supply chains. In its aftermath, there was a great deal of debate about the risks and vulnerabilities of global supply chains, and there were calls to redesign and restructure supply chains. Methodology: We empirically estimate the effect of the GEJE on the stock prices of firms. Our analyses are based on a global sample of 470 firms collected from articles and announcements in the business press that identify affected firms, as well as 382 firms that are not mentioned in the business press but are in industries potentially subject to contagion or competitive effects. Results: We estimate that firms experiencing supply chain disruptions as a result of the GEJE lost on average 5.21% of their shareholder value during the one-month period after the GEJE. For Japanese firms, the effect was much more severe with an average 9.32% loss in shareholder value. Non-Japanese firms averaged a 3.73% loss in shareholder value. We also find that upstream and downstream supply chain propagation effects from the GEJE are negative, and the contagion effect on firms related to the nuclear industry is very negative. For firms in the rebuilding industries or competitors to firms affected by the GEJE, the competitive effect from the GEJE is positive. Managerial implications: The loss suffered by both Japanese firms and non-Japanese firms experiencing supply chain disruptions as a result of the GEJE is economically significant. Although the loss is more severe for firms whose operations were directly affected by the GEJE, it is also significant for firms who experienced indirect effects from their upstream and downstream supply chain partners, further confirming the importance of supply chain risk mitigation strategies.