Chwen Sheu

Determinants of supplier‐retailer collaboration: evidence from an international study

Purpose – This paper aims to increase the understanding of social and technical factors contributing to successful supplier‐retailer collaboration. The objective is to identify the necessary supply chain architecture for supplier‐retailer collaboration, and demonstrate how it influences supply chain performance.Design/methodology/approach – Five pairs of suppliers and retailers in Taiwan were studied with each pair serving as a unit of analysis. In each case, data pertaining to eight relationship variables critical to collaboration between supplier and retailer were collected and analyzed. A comprehensive supplier‐retailer relationship model is developed with five specific research positions: supplier‐retailer business relationship (interdependence, intensity, trust) affects long‐term orientation; supplier‐retailer business relationship affects supply chain architecture (information sharing, inventory system, information technology capabilities, coordination structure); long‐term orientation affects suppl...

Manufacturing flexibility and business strategy: An empirical study of small and medium sized firms

Abstract This study investigates the practice of manufacturing flexibility in small and medium sized firms. Using the data collected from 87 firms from machinery and machine tool industries in Taiwan, we analyzed and prescribed the alignment of various manufacturing flexibility dimensions with business strategies. Several practical approaches to developing manufacturing flexibility in small and medium sized firms were discussed. In addition, statistical results indicate that the compatibility between business strategy and manufacturing flexibility is critical to business performance. The one-to-one relationship between business strategy and manufacturing flexibility is established to enable managers to set clear priorities in investing and developing necessary manufacturing flexibility.

Information technology and supply chain collaboration: moderating effects of existing relationships between partners

Previous studies suggest that information technology (IT) is critical to the development of collaboration between supply chain partners. Our study posits that the effect of IT is not predetermined by its technological capabilities. Rather, its effect on interorganizational collaboration is the emergent properties of the interplay between IT and existing relationships between partners. Based on the literature, we selected four dimensions of supplier-retailer relationship (trust, interdependence, long-term orientation, and information sharing) to investigate the moderating effect of existing relationships on the efficacy of IT. Using case research that involved direct observation and systematic interviews with five pairs of suppliers and retailers, we verified that existing formative contexts between partners both enable and constrain the effect of IT on interorganizational collaboration. In addition, IT reinforces and stabilizes the already existing interorganizational structures and arrangements. Overall, the results suggest that cooperative formative contexts between partners should precede the IT-based interorganizational linkage effort.

The importance of national culture in operations management research

Purpose – The purpose of this study is to test the validity of national culture as an explanatory construct for international operations management decision‐making.Design/methodology/approach – National culture is multi‐dimensional thereby allowing for much finer grained comparisons than are possible when examining differences based purely on geography or the level of industrialization. This proposition is examined from the theoretical standpoint then empirically investigated using an existing database.Findings – This article finds that national culture significantly explains international operations management behaviors among similar manufacturing plants in the same industry located in different cultures.Originality/value – This study represents a first attempt at using national culture to explain differences of operations decision‐making.

The Impact of Competitive Strategy and Supply Chain Strategy on Business Performance: The Role of Environmental Uncertainty*

This article investigates the relationships among competitive strategy, supply chain strategy, and business performance while examining the moderating effect of environmental uncertainty. A total of 604 questionnaires were collected from three cities in China, and the statistical results show significant moderating effects of external environment on the relationships among competitive strategy, supply chain strategy, and business performance. Firms that primarily focus on a differentiation strategy emphasize an agile supply chain strategy. Cost leaders are inclined to implement both lean and agile supply chain strategies, but their emphasis on agile strategy is significantly greater in a volatile environment than in a stable environment. The choice of supply chain strategy does not appear to be an “either-or” decision and firms could adopt either a lean or an agile strategy, or both, depending on the environment. This article provides significant managerial implications for supply chain practitioners to co-align supply chain strategy and competitive strategy with the environment to improve performance.

Integrating six sigma and theory of constraints for continuous improvement: a case study

Purpose – To investigate the potential of combining six sigma (SS) and theory of constraints (TOC) to improve production system performance.Design/methodology/approach – Based on the literature, this paper proposes an integrated TOC/SS framework and applies this framework to an axle manufacturing company to improve its gear‐cutting operation.Findings – The results of the case study indicate that the company benefited tremendously from its emphasis on global improvement guided by the TOC concept. Managers were able to select a continuous improvement (CI) project that had greater impact on bottom line performance. On the other hand, SS provided various statistical tools and engineering techniques (such as value analysis, Pareto diagram and control charts) for defining the specific process to be improved, analyzing the root causes, and designing actions for making improvement.Research limitations/implications – For the future effort of integrating TOC with SS and other CI techniques, we suggest the incorpora...

A voluntary logistics security program and international supply chain partnership

Purpose – To investigate the practices and value of a voluntary logistics security program, C‐TPAT certification, and its impact on international supply chain collaboration.Design/methodology/approach – Both case study and secondary data research methods were used to collect data from five companies (one customs broker, three importers, and one transporter/freight forwarder) at different supply chain positions. A case study protocol was designed and used to guide the interviews and data collection. Data analysis was performed at three levels: within‐case analysis, cross‐case analysis, and expert analysis.Findings – In addition to reporting the current practices of the C‐TPAT implementation, the results confirmed the significant impact of the C‐TPAT program to the international trade community. As for the overall goal of improving border security, the results suggest that the C‐TPAT is a means rather than an end and its current value to logistic security is not clear due to the inconsistent practices of su...

Issues in multinational ERP implementation

Enterprise resource planning (ERP) systems have been credited with providing competitive advantage in multinational business operations, to include supply chains. Multinational implementations of ERP involve added complexity. This paper uses case studies and other reports of multinational ERP implementation to identify implementation factors of importance. Four technical factors were identified (business process reengineering, federalism and customisation, supply chain features and outsourcing). Additionally, more general issues were compared (culture/language, management style, political factors and labour skills). Multinational ERP implementations radically change organisational information systems. Careful planning of how to implement ERP systems is needed in multinational environments in order to identify the best ERP design and the best redesign of business processes.

A study of purchasing practices in Taiwan

This empirical research seeks to evaluate purchasing practices in Taiwan based on survey data collected from companies located in that country. A research model is presented and tested using structural equation modeling. The model includes three factors: purchasing risk taking, purchasing knowledge and skills, and strategic purchasing. The research findings indicate that purchasing risk‐taking impacts purchasing knowledge and skills and purchasing knowledge and skills impacts strategic purchasing. Also, the study finds that the relationships among risk taking, purchasing knowledge and skills and strategic purchasing for high performing firms are stronger than for low performing firms.

The effects of purchased parts commonality on manufacturing lead time

Manufacturing managers as well as researchers suggest that reducing manufacturing lead time is essential for competing in world‐class manufacturing environments. To achieve world‐class manufacturing status, organizations implement a variety of programmes to decrease manufacturing lead time. Uses simulation to analyse the effect of purchased parts standardization on manufacturing lead time under the assumption of limited vendor delivery uncertainty. Creates a wide range of degrees of commonality based on three sets of multilevel product structures with the variations of end‐item demand and quantity usage. The statistical results indicate that: increased commonality lowers manufacturing lead time; a more informative commonality measure other than the well‐known degree of commonality index (DCI) is necessary to represent the actual commonality; and the distribution of purchased parts usage across different end items affects manufacturing lead time performance. The results provide important implications for both manufacturing and product design management.