Volume 55, Issue 1 of Journal of Supply Chain Management now available
Volume 55, Issue 1 is now accessible here: https://www.journalofsupplychainmanagement.com/volume-55-issue-1
This issue contains the following,
Articles:
Inside the Buying Firm: Exploring Responses to Paradoxical Tensions in Sustainable Supply Chain Management Chengyong Xiao, Miriam Wilhelm, Taco van der Vaart, and Dirk Pieter van Donk.
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Watch a Video from the Authors here
Abstract
An instrumental perspective still dominates research on sustainable supply chain management (SSCM). As an alternative, this study presents a paradox perspective and argues that sustainability and other business aims are not always compatible, particularly in an emerging market context. Often, paradoxical tensions originate in conflicts between the socioeconomic environment of emerging market suppliers and their Western customers’ demands for both cost competitiveness and sustainability. We argue that Western buying firms can play a key role in moderating such tensions, as experienced by emerging market suppliers. Specifically, we explore how purchasing and sustainability managers within buying firms make sense of and respond to paradoxical tensions in SSCM. We conduct an in‐depth case study of a Western multinational company that sources substantially from Chinese suppliers. While we found strong evidence for a persisting instrumental perspective in the sensemaking and practices of purchasing and sustainability managers, we also observed an alternative response, primarily by sustainability managers that we labeled as “contextualizing.” Contextualizing can alleviate the tensions otherwise present in SSCM by making sustainability standards more workable in an emerging market context, and it can help individual managers to move toward paradoxical sensemaking. We outline the value of paradoxical sensemaking in bringing about changes toward “true sustainability” in SSCM.
A Mid‐Range Theory of Control and Coordination in Service Triads Marko Bastl, Mark Johnson and Max Finne
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Abstract
The increased frequency of the adoption of service‐based business models by manufacturers, such as solution provision, has given rise to service triads. While there is consensus that actors in service triads are relationally and performatively interdependent, less is understood about how service triads are controlled andcoordinated. In this study, we use an inductive case‐based approach to build an understanding about the roles, approaches, and contextual factors that influence how service triads are controlled and coordinated. We collected and analyzed data from nine companies forming three service triads, each comprising a customer, a manufacturer of an asset, and a service supplier. We synthesized our findings in a theoretical framework, where we show that first, both, control and coordination, are present in service triads rather than just control as previously posited. Second, controlling and coordinating service triads is not a single actor's responsibility but rather a collective effort shared by two or three actors. Third, we uncovered four contingent factors that influence the dynamics of how service triads are controlled and coordinated: the customer's risk exposure due to the offering's failure, the substitutability of the offering, the contractual safeguards, and the relationship closeness.
Supply Chain Power and Real Earnings Management: Stock Market Perceptions, Financial Performance Effects, and Implications for Suppliers Danny Lanier Jr., William F. Wempe and Morgan Swink
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Abstract
This study examines supply chain power in the context of real earnings management (REM), instances in which executives execute (or forego) operations transactions for the sole purpose of meeting or beating earnings targets. We examine whether powerful major customers in supply chains exploit their positions to engage in REM to a greater degree than less powerful firms. We also examine (1) whether the stock market reacts differently to major customers’ and nonmajor customers’ REM, (2) whether any difference exists between major customers’ and nonmajor customers’ post‐REM financial performance, and (3) how suppliers are impacted by their major customers’ REM behavior. Results suggest that major customers exploit their supply chain power to engage in more REM. In contrast to the skeptical stock market reaction when other firms engage in REM, we find no evidence that major customers’ earnings are discounted when there is evidence of REM. Instead, the market appears to interpret major customers’ behavior as “legitimate” uses of power in supply chain management, rather than REM typically considered to be value‐destroying. Further, we find that in post‐REM periods, major customers that engage in REM exhibit better operating cash flow performance than nonmajor customers who do so. These findings suggest that the consequential costs of REM are lower for major customers than for nonmajor customers. Finally, we report evidence that the particular form of major customers’ REM appears to determine the impact on their suppliers. Suppliers’ financial performance deteriorates when major customers’ REM entails discretionary expense cuts. These findings offer new insights into the benefits and uses of power in supply chain relationships, in a previously unexplored context. We discuss the implications of the findings for future research.
The Impact of Supplier Sustainability Risk on Shareholder Value Seongtae Kim Stephan M. Wagner Claudia Colicchia
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Abstract
Business scandals like sweatshop labor have received growing attention in the field of supply management. Yet little is known about how detrimental such scandals are to buying firms. This study aims to fill this gap by examining the magnitude of the consequences of what are termed as supplier sustainability risks (SSRs). To this end, we conduct an event study analysis followed by regression modeling based on a sample of 196 U.S. publicly traded firms’ SSRs. The results reveal that SSRs are associated with a 1.00 percent reduction in shareholder wealth. The market reacts negatively but not differently to the two types of SSR: process‐related risks and product‐related risks. Finally, a firm's moral capital does play a mitigating role for SSRs and process‐related risks; however, it does not provide insurance‐like protection for product‐related risks.
Corrigendum
Announcements
Journal of Supply Chain Management is delighted to announce a call for papers for our second Emerging Discourse Incubator.
"The topic for JSCM's second emerging discourse incubator (EDI) is research that focuses on the intersection of supply chain management (SCM) and public policy and government regulation (PPGR). PPGR encompasses the laws, regulations, and government and regulatory agencies’ actions. The aim is to incubate a discourse with major schools of thought in political economy that have been largely unexplored in our discipline."
The full details can be accessed here: 2020 EDI
Timeline
June 2018: Initial call for submissions
June 2018: December 2019: Submissions to EDI, as well as regular submissions, are welcomed and will be processed upon submission.
January 2019: Invited papers are expected to appear online to initiate the discourse.
January 2019 - December 2019: Papers related to the EDI will be published online as they are accepted.
Please direct queries to any of JSCMs co-editors: Mark Pagell (mark.pagell@ucd.ie), Brian Fugate (bfugate@walton.uark.edu), or Barbara Flynn (bbflynn@iu.edu).
Below are some helpful links related to what an EDI is and a note from our Co-Editors discussing our previous EDI.
From the Editors—Introducing JSCM's First Emerging Discourse Incubatlor for 2018/19
What is an Emerging Discourse Incubator?
Please visit JSCM's website www.journalofsupplychainmanagement.com. Here you can find details on JSCM, our Editors, additionally each week we run a feature focusing on the JSCM world which we are hoping will interest all of our readers.
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