The impact of supply chain management practices on competitive advantage and organizational performance

Effective supply chain management (SCM) has become a potentially valuable way of securing competitive advantage and improving organizational performance since competition is no longer between organizations, but among supply chains. This research conceptualizes and develops five dimensions of SCM practice (strategic supplier partnership, customer relationship, level of information sharing, quality of information sharing, and postponement) and tests the relationships between SCM practices, competitive advantage, and organizational performance. Data for the study were collected from 196 organizations and the relationships proposed in the framework were tested using structural equation modeling. The results indicate that higher levels of SCM practice can lead to enhanced competitive advantage and improved organizational performance. Also, competitive advantage can have a direct, positive impact on organizational performance.     

An ISO 9001:2000-based framework for realizing quality in small businesses

The purpose of ISO 9001:2000 Quality Management System (QMS) is to provide businesses with a model to grow systematically while assuring the quality of their products. The validity of ISO 9001:2000 QMS stems, largely, from the fact that the best minds worldwide have contributed to its development and maintenance, and the fact that many companies have reported real business gains because of its implementation. Unfortunately, many small businesses fail to survive due to the absence or lack of adequate system for managing quality. An obvious recommendation would be to implement ISO 9001:2000 QMS. Nevertheless, small businesses often cite lack of resources and time as the main reasons for not implementing ISO 9001:2000 QMS.     

An exploratory study of manufacturing strategy practices of machinery manufacturing companies in India

This paper presents findings of a survey on manufacturing strategy practices adopted by the Indian machinery manufacturing companies (IMMC). Based on the survey, three companies have been selected for detailed case studies. Their experiences in the manufacturing strategy process are analyzed. Although the companies represented diversity in terms of product type, sales volume, and geographic location, they share several commonalties including use of advanced manufacturing technologies and use of several improvement techniques. The process of strategy formulation varied among the companies in terms of participants, complexity and degree of formalization. Competitive priorities, order winners and critical success factors are also identified for these companies. Based on strategic manufacturing issues, manufacturing competence index and business performance index for the companies has been worked out.     

Institutional Fleecing: The Slow Death of Dutch Provinces

Many theories on organizational change depart from the assumption of change for the better, that is, change in order to gain a stronger position in relation to its competitors, to become more effective or efficient, or at least to improve the organization. It is our idea that the theories developed on this basis are biased. Contrasting to this dominant approach, this article gives a longitudinal analysis of the development in an organization in decline. It is directed at explaining the downfall of a Dutch province. In the medieval empire of Charlemagne it was one of the most powerful duchies of Europe. Later it became one of the seven provinces in the powerful Dutch Republic, and nowadays it has lost nearly all its tasks and functions. Departing from neo-institutional theory this paper seeks the major causes for this downfall and specifies some of the relations in the theoretical model of punctuated equilibrium. It concludes that the historical institutional dynamics can be seen as a self-enforcing process in which punctuations can be explained by the increasing distance between individual preferences within the organization, and the pressures originating from developments in the environment.Dr. M.S. de Vries is professor in Public Administration at the Radboud University Nijmegen. Address: Thomas van Aquinostraat 5 (room 5.1.56). P.O. Box 9108, 6500 HK Nijmegen, The Netherlands, tel;++31 24 3615691.     

Volatility-based Effects on Shareholder Value: Alliance Activity in the Computing Industry

We use an event-study analysis to understand how alliance activity affects firm risk. The risk measure is the implied volatility of a firm’s stock price and the events are alliance announcements to the market. We build on the previous event-studies in the alliance literature that focus on the change in shareholder value by taking the first step in delineating what part of that value arises from the changes in the firm’s risk. The analysis reveals that a number of factors within a firm’s control can be used to manipulate risk exposure in an alliance, including the similarity of the firm’s and the alliance’s core activities, the governance form of the alliance, and the function of the alliance.     

A Conceptual Model for Researching the Creation and Operation of Supply Networks1

This paper presents a conceptual model for the creation and operation of supply networks. Existing conceptual research relating to interorganizational relationships and networks is reviewed in terms of its relevance to understanding supply networks; this research is drawn from the fields of strategic management, channel management, industrial marketing and purchasing, organizational behaviour and supply‐chain management. The different perspectives each field has on networks are highlighted. Contributions made by each in assisting to understand supply networks are discussed and synthesized. Findings from an exploratory survey are used to structure the design of a conceptual model for analysing the processes involved in the creation and operation of supply networks. The authors identify nine different types of networking activities and discuss the nature of these activities in the context of supply. Four different types of contextual factors relating to supply networks are identified. The model is tested in eight in‐depth case studies and a validating survey of 58 focal firm networks. It is concluded that it provides a robust structure that enabled complex, cross‐case analysis of multi‐variable, multi‐disciplinary data from interorganization product/service supply networks, but that further testing by other researchers is required.     

Developing the Concept of Transparency for Use in Supply Relationships

Management concern surrounding the supply of goods and services from business to business, and the related attempts to understand the phenomena observed therein, appears to rest upon a broad range of incompatible perspectives, from political science (often limited to considerations of power) to the logistical (akin to manipulation of a great, benign but dynamic jigsaw puzzle). It appears that all perspectives abrade against the difficulties of exchanging information, knowledge and innovation within the relationships between buying and selling organizations and the apparent chronic systemic inefficiency that transactions often represent in this context. This article addresses these concerns, exploring the concept of transparency and the developments necessary for it to be useful in exchanging sensitive information and tacit knowledge in supply relationships. Our central concern is how the understanding of transparency and its commercial importance may change when it is expressed as a manageable element of the relationship between two organizations rather than as a general property of a broader system (e.g. a supply network, industrial sub-sector, geographical cluster) and what utility this differentiation might hold for managers. The conclusion to the article, and the implication for managers, is that transparency might indeed be created and usefully managed within supply relationships but that it would differ fundamentally in meaning from previously posited concepts, with the same name, in different contexts.