scholarly journals Supply chain inclusion in base of the pyramid markets

2019 ◽  
Vol 49 (5) ◽  
pp. 575-598 ◽  
Author(s):  
Eugenia Rosca ◽  
Guido Möllering ◽  
Arpan Rijal ◽  
Julia Christine Bendul
Keyword(s):  
Cluster Analysis ◽  
Supply Chain ◽  
Supply Chains ◽  
Social Impact ◽  
Global Supply Chain ◽  
Global Supply Chains ◽  
Base Of The Pyramid ◽  
Content Type ◽  
Local Supply ◽  
Bop Markets

Purpose The purpose of this paper is to explore mechanisms of supply chain inclusion in Base of the Pyramid (BOP) settings. It distinguishes micro-, small- and medium-sized enterprises (MSME)-led local supply chains on the one hand and multinational enterprises (MNEs)-led global supply chains on the other hand. This paper aims to answer the following research question: Which mechanisms of supply chain inclusion are employed empirically by MSMEs and how can these mechanisms influence social impact creation in MNE-led global supply chains? Design/methodology/approach A large-scale empirical study of MSMEs operating in BOP markets is performed and a cluster analysis conducted to systematically categorize supply chain inclusion. The cluster analysis and current literature yield theory-based implications for MNE-led global supply chains. Findings The cluster analysis reveals three meaningful clusters of supply chain inclusion in BOP markets and highlights two main aspects. They include direct vs indirect mechanisms of inclusion and diversity in supplier relationships with local organizations aimed at either “sourcing” local capabilities needed for inclusion or “outsourcing” the inclusion. Based on these aspects, two scenarios are proposed and evaluated for local-global supply chain symbiosis. Research limitations/implications This study aims to contribute to the existing literature with a more fine-grained understanding of the inclusion of BOP actors in local supply chains and by proposing alternative trajectories for global supply chain inclusion. Practical implications The findings outline several important decisions that managers need to make to include BOP actors in supply chain activities. Originality/value This paper contributes a novel, combined perspective of local supply chains (MSMEs) and global supply chains (MNEs).

scholarly journals Corona virus, tariffs, trade wars and supply chain evolutionary design

2020 ◽  
Vol 40 (10) ◽  
pp. 1649-1660 ◽  
Author(s):  
Robert B. Handfield ◽  
Gary Graham ◽  
Laird Burns
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Case Studies ◽  
Bullwhip Effect ◽  
Global Supply Chain ◽  
Global Supply Chains ◽  
Chain Management ◽  
Content Type ◽  
Constructal Law ◽  
The Usa

PurposeUsing the constructal law of physics this study aims to provide guidance to future scholarship on global supply chain management. Further, through two case studies the authors are developing, the authors report interview findings with two senior VPs from two multi-national corporations being disrupted by COVID-19. This study suggests how this and recent events will impact on the design of future global supply chains.Design/methodology/approachThe authors apply the constructal law to explain the recent disruptions to the global supply chain orthodoxy. Two interviews are presented from case studies the authors are developing in the USA and UK – one a multi-national automobile parts supplier and the other is a earth-moving equipment manufacture. Specifically, this is an exploratory pathway work trying to make sense of the COVID-19 pandemic and its impact on supply chain scholarship.FindingsAdopting the approach of Bejan, the authors believe that what is happening today with COVID-19 and other trade disruptions such as Brexit and the USA imposing tariffs is creating new obstacles that will redirect the future flow of supply chains.Research limitations/implicationsIt is clear that the COVID-19 response introduced a bullwhip effect in the manufacturing sector on a scale never-before seen. For scholars, the authors would suggest there are four pathway topics going forward. These topics include: the future state of global sourcing, the unique nature of a combined “demand” and “supply shortage” bullwhip effect, the resurrection of lean and local production systems and the development of risk-recovery contingency strategies to deal with pandemics.Practical implicationsSupply chain managers tend to be iterative and focused on making small and subtle changes to their current system and way of thinking, very often seeking to optimize cost or negotiate better contracts with suppliers. In the current environment, however, such activities have proved to be of little consequence compared to the massive forces of economic disruption of the past three years. Organizations that have more tightly compressed supply chains are enjoying a significant benefit during the COVID-19 crisis and are no longer being held hostage to governments of another country.Social implicationsAn implicit assumption in the press is that COVID-19 caught everyone by surprise, and that executives foolishly ignored the risks of outsourcing to China and are now paying the price. However, noted scholars and epidemiologists have been warning of the threats of pandemics since the severe acute respiratory syndrome (SARS) virus. The pundits would further posit that in their pursuit of low-cost production, global corporations made naive assumptions that nothing could disrupt them. Both the firms the authors have interviewed had to close plants to protect their workforce. It was indicated in the cases the authors are developing that it is going to take manufacturers on average one month to recover from 4–6 days of disruption. These companies employ many thousands of people, and direct and ancillary workers are now temporarily laid off and face an uncertain future as/when they will recover back to normal production.Originality/valueUsing the constructal law of physics, the authors seek to provide guidance to future scholarship on global supply chain management. Further, through two case studies, the authors provide the first insight from two senior VPs from two leading multi-national corporations in their respective sectors being disrupted by COVID-19. This study is the first indication to how this and recent disruptive events will impact on the design of future global supply chains. Unlike the generic work, which has recently appeared in HBR and Forbes, it is grounded in real operational insight.

Bullwhip severity in conditions of uncertainty: regional vs global supply chain strategies

2019 ◽  
Vol 15 (1) ◽  
pp. 131-148 ◽  
Author(s):  
Marcelo J. Alvarado-Vargas ◽  
Keith J. Kelley
Keyword(s):  
Supply Chain ◽  
Emerging Markets ◽  
Supply Chains ◽  
Design Methodology ◽  
Bullwhip Effect ◽  
Global Supply Chain ◽  
Global Supply Chains ◽  
Internalization Theory ◽  
Strategic Decisions ◽  
Content Type

Purpose Using a phenomenon known as the bullwhip effect, the authors explore why additional uncertainty in the marketplace can create severe disruptions in global supply chains (GSCs). The purpose of this paper is to analyze related risks in regional vs GSCs during low and high levels of uncertainty. The authors propose and discuss a number of potential implications alongside some tactics that may help mitigate disruptions in some cases before they become terminal problems for the supply chain sustainability. Design/methodology/approach Monte Carlo simulation is used to generate the conditions of uncertainty and various scenarios that may emerge to challenge GSCs. Vensim software is utilized as a tool for simulation purposes. The authors considered scenarios applicable to manufacturing and retail sectors specifically because of storability property of goods. Findings Regional supply chains, as opposed to global ones, are more stable and reliable (less risk of disruption) during low and high levels of uncertainty. During uncertain times, upstream suppliers are at greater risk in GSCs. Firms must make strategic decisions that will secure its supply chain functionality and assess the likelihood of such events since many firms entered emerging markets. Originality/value Building on internalization theory, it shows that risk and survival are components of decision making that are further complicated by supply chains now operating globally in emerging markets. The paper demonstrates with simulation that GSCs are riskier than regional supply chains in low and high levels of uncertainty, particular as it relates to the bullwhip effect. It also provides recommendations about supply chain restructure and investments in communication improvements to reduce the bullwhip effect in the supply chain.

scholarly journals Driving impact through base of the pyramid distribution models

2019 ◽  
Vol 49 (5) ◽  
pp. 492-513 ◽  
Author(s):  
Valeria Varga ◽  
Eugenia Rosca
Keyword(s):  
Supply Chains ◽  
Social Impact ◽  
Distribution Networks ◽  
Base Of The Pyramid ◽  
Distribution Models ◽  
Intermediary Organization ◽  
Content Type ◽  
Bop Markets ◽  
Embedded Case Study

Purpose The purpose of this paper is to answer the following research question: how can intermediaries contribute to social impact creation through their interventions at different levels of distribution networks in the base of the pyramid (BoP) markets? Design/methodology/approach The paper adopts an embedded case study of an intermediary organization. The analysis focuses on the intervention of the intermediary on the distribution stages of supply chains in four different projects in the food sector in Ethiopia, Benin, Nigeria and Bangladesh. Findings The embedded case study reveals essential formal and informal roles undertaken by the intermediary organization to develop decentralized distribution networks based on local micro-entrepreneurs. The study proposes that efforts undertaken by the intermediaries toward knowledge sharing and capacity building among partners can enable the adoption of pro-poor strategies across the supply chain. Moreover, hybrid intermediaries can act as “guardians” of the mutual value creation approach since one of their key roles is to advocate the needs of the BoP. Research limitations/implications Important implications for improving nutrition and food security in the BoP markets are developed based on the empirical findings. The findings open avenues for further research into the antecedents of retention rates in distribution networks based on local micro-entrepreneurs. Practical implications Findings have implications for different types of BoP initiatives by highlighting how intermediary organizations intervene to develop distribution models with a special focus on social impact. Originality/value This paper fills an important research gap by discussing social impact aspects in BoP supply chains by adopting the perspective of intermediary organizations.

Moving toward a Global Supply Chain Operations and the Impact on International Competition

2012 ◽  
pp. 1626-1636
Author(s):  
Seyed-Mahmoud Aghazadeh
Keyword(s):  
United States ◽  
Supply Chain ◽  
Supply Chains ◽  
Global Economy ◽  
The United States ◽  
Global Supply Chain ◽  
Global Supply Chains ◽  
Domestic Firms ◽  
Foreign Products ◽  
The Impact

As the domestic businesses expand, many are making the choice to use foreign products, labor, and services to aid in their production. Global supply chains are minimizing the costs of the production process but are also creating vulnerabilities to home countries. As the global economy changes, the competitiveness between countries grows. Competitiveness can affect everything from a country’s economy to how a firm conducts international business. Addressing the need to find a method to increase the United States competitiveness in the world economy by improving the use of global supply chains would help to make domestic firms more successful in the global economy. Studying how companies position themselves abroad is important to providing insight into how to become more competitive. Worldwide companies are diversifying by moving more of their supply chain to international locations. This is providing them with many benefits such as better markets for products, lower costs, and more advanced technologies. As a result, the competitive strategy of companies is to increase production and decrease costs through the most efficient global supply chain. Maximizing the potential of domestic firms’ global supply chains is one of the most effective ways to increase U.S. competitiveness. If more big businesses in the United States are willing to participate on the global level, then the US will be able to improve their competitiveness.

Moving toward a Global Supply Chain Operations and the Impact on International Competition

2013 ◽  
pp. 466-476
Author(s):  
Seyed-Mahmoud Aghazadeh
Keyword(s):  
United States ◽  
Supply Chain ◽  
Supply Chains ◽  
Global Economy ◽  
The United States ◽  
Global Supply Chain ◽  
Global Supply Chains ◽  
Domestic Firms ◽  
Foreign Products ◽  
The Impact

As the domestic businesses expand, many are making the choice to use foreign products, labor, and services to aid in their production. Global supply chains are minimizing the costs of the production process but are also creating vulnerabilities to home countries. As the global economy changes, the competitiveness between countries grows. Competitiveness can affect everything from a country’s economy to how a firm conducts international business. Addressing the need to find a method to increase the United States competitiveness in the world economy by improving the use of global supply chains would help to make domestic firms more successful in the global economy. Studying how companies position themselves abroad is important to providing insight into how to become more competitive. Worldwide companies are diversifying by moving more of their supply chain to international locations. This is providing them with many benefits such as better markets for products, lower costs, and more advanced technologies. As a result, the competitive strategy of companies is to increase production and decrease costs through the most efficient global supply chain. Maximizing the potential of domestic firms’ global supply chains is one of the most effective ways to increase U.S. competitiveness. If more big businesses in the United States are willing to participate on the global level, then the US will be able to improve their competitiveness.

Towards greater supply chain stability

2019 ◽  
Vol 35 (6) ◽  
pp. 33-35
Keyword(s):  
Supply Chain ◽  
Design Methodology ◽  
Bullwhip Effect ◽  
Global Supply Chain ◽  
Global Supply Chains ◽  
Content Type ◽  
Pertinent Information ◽  
The Stability ◽  
Practical Implications ◽  
Chain Increase

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Building a regional rather than a global supply chain can help firms guard against the damaging impact of the bullwhip effect and increase the stability of their supply chain. The possibility of better communication, greater flexibility, and ability to respond more quickly are factors that can appease the bullwhip severity. The benefits of a regional supply chain increase further in times of economic certainty, when the risk to global supply chains intensifies. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Manufacturing SMEs, network governance and global supply chains

2019 ◽  
Vol 27 (1) ◽  
pp. 130-147
Author(s):  
Tony Cragg ◽  
Tom McNamara ◽  
Irena Descubes ◽  
Frank Guerin
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Demand Uncertainty ◽  
Network Governance ◽  
Global Supply Chains ◽  
Informal Networks ◽  
Content Type ◽  
Case Research ◽  
Effective Form ◽  
Supply Chain Governance

Purpose The purpose of this paper is to investigate how small manufacturing firms develop and manage relationships with global suppliers and distributors. In so doing the authors aim to contribute to knowledge about SMEs and supply chain management (SCM). Design/methodology/approach The authors conducted 12 in-depth case studies of SME final assemblers of machinery in the French farm equipment sector. Findings The most effective form of global supply chain governance used by successful SMEs is informal networks involving managers in similar complementary firms, which serve to concatenate links with foreign suppliers and distributors. Research limitations/implications The principal limitation of this research is that it is specific to one sector and therefore questions of transferability are raised. Practical implications The important implication for managers in manufacturing SMEs is that links with other complementary local firms in the same sector need to be developed, leveraged and valued. Originality/value The originality of this case research is that the authors draw on inter-organisational boundaries, power asymmetries and network governance to develop a conceptual framework for the study of SMEs and global supply chains. By focusing on the perceptions of boundary-spanning managers, the authors show how, in circumstances of demand uncertainty, soft network governance is an effective strategic choice.

Farm business financial performance in local foods value chains

2018 ◽  
Vol 78 (4) ◽  
pp. 470-488 ◽  
Author(s):  
Mary Clare Ahearn ◽  
Kathleen Liang ◽  
Stephan Goetz
Keyword(s):  
Supply Chain ◽  
Financial Performance ◽  
Supply Chains ◽  
Food System ◽  
Choice Model ◽  
Direct Marketing ◽  
Small Samples ◽  
Local Foods ◽  
Content Type ◽  
Local Supply

PurposeThe purpose of this paper is to identify the factors associated with farm financial success for those farms known to produce for local supply chains. The analysis considers alternative measures of farm financial performance and considers the role of the local foods supply chain in the choice to market locally.Design/methodology/approachThe paper uses a two-stage Heckman approach which addresses the possibility of sample selection bias. In the first stage, the choice model to engage in direct marketing is estimated. In the second stage, the authors estimate a model of the financial performance of those in the sample that direct marketed which includes an IMR term calculated from the parameters of the first stage equation. The analysis uses national farm-level data from the Agricultural and Resource Management Survey of the US Department of Agriculture and combines data from 2009 to 2012 to overcome the constraint of small samples.FindingsIndicators of the development of a local foods supply were positively related to the choice to engage in direct marketing. Factors affecting farm financial performance varied significantly between a short-term and a long-term measure. The results emphasize the importance of considering multiple outcome measures, developing local supply chains and provide implications about beginning farms.Originality/valueIf a local foods system is going to thrive, the farms that market the agricultural products in the local food system must attain a certain level of profitability. The value of the analysis is an improved understanding of the financial performance of farms producing for a small, but growing segment of the food supply chain.

The impact of institutional voids on risk and performance in base-of-the-pyramid supply chains

2020 ◽  
Vol 31 (4) ◽  
pp. 829-863
Author(s):  
Attique ur Rehman ◽  
Muhammad Shakeel Sadiq Jajja ◽  
Raja Usman Khalid ◽  
Stefan Seuring
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Product Market ◽  
Base Of The Pyramid ◽  
Institutional Voids ◽  
Supply Chain Risk ◽  
Content Type ◽  
And Performance ◽  
Bop Markets ◽  
Supply Chain Risks

PurposeBase-of-the-pyramid (BoP) markets are frequently characterized by institutional voids. However, it remains unclear how institutional voids impact corporate and supply chain risk and performance. This intersection will be analyzed in this paper.Design/methodology/approachThis paper presents a systematic literature review of 94 BoP papers published between 2004 and 2019 in peer-reviewed, English-language journals available on Scopus. Drawing upon established frameworks for examining institutional voids, supply chain risks and BoP performance, frequency, and contingency analyses are conducted. Contingencies are established to provide insights into the associations between different constructs from the selected frameworks.FindingsSupply chain risks are pervasive in the BoP discourse, especially when BoP markets are characterized by institutional voids. The frequency analysis of the constructs suggests that the key supply chain risks discussed in the BoP literature include social risk, credit risk, product market and operating uncertainties, knowledge and skill biases and decision-maker risks due to bounded rationality. The contingency analysis suggests that institutional voids are associated with supply chain risks that affect performance.Research limitations/implicationsA theoretical framework aligning three research streams in the context of BoP calls for future studies to test the causality of highlighted constructs that are significantly associated. The analysis is confined to the constructs that are taken into account based on specific conceptual frameworks.Practical implicationsThe study provides practitioners with a framework to manage supply chain risks in BoP-related firms to enhance firm performance. Managers can use key dimensions of supply chain risk, such as the product market, the input market and operating uncertainties, to evaluate performance in the BoP context.Originality/valueSpecifically, this research has strengthened the inquiry of supply chain risks in the presence of institutional voids that may have an impact on firm performance

Sign in / Sign up

Export Citation Format

Share Document