Glyn Watson

Supply chains, markets and power : mapping buyer and supplier power regimes

Part I: Power in Supply Chains and Markets Part II: Power Regimes in Supply and Value Chains Part III: A Research Agenda for Analysing Business Power

Managing appropriately in power regimes: relationship and performance management in 12 supply chain cases

This paper reports the findings of a two‐year EPSRC funded research project into relationship and performance strategies in power regimes. The findings from 12 very different industrial and service sector cases studies demonstrate that there is a correlation between the ability to improve the performance of suppliers and the power circumstances that exist between the buyers and suppliers. Buyers appear to be able to achieve improved performance from suppliers in situations of buyer dominance or interdependence. The research also demonstrates that whatever the objective power circumstance managers often subjectively misperceive the appropriate sourcing choices available to them. As a result business relationships can be aligned, but they are often misaligned. Furthermore, misaligned relationships may be “remediable” but they may not.

Theoretical perspectives in purchasing and supply chain management: an analysis of the literature

Purpose – This paper attempts to seek answers to four questions. Two of these questions have been borrowed (but adapted) from the work of Defee et al.: RQ1. To what extent is theory used in purchasing and supply chain management (P&SCM) research? RQ2. What are the prevalent theories to be found in P&SCM research? Following on from these questions an additional question is posed: RQ3. Are theory-based papers more highly cited than papers with no theoretical foundation? Finally, drawing on the work of Harland et al., the authors have added a fourth question: RQ4. To what extent does P&SCM meet the tests of coherence, breadth and depth, and quality necessary to make it a scientific discipline? Design/methodology/approach – A systematic literature review was conducted in accordance with the model outlined by Tranfield et al. for three journals within the field of “purchasing and supply chain management”. In total 1,113 articles were reviewed. In addition a citation analysis was completed covering 806 articles in total. Findings – The headline features from the results suggest that nearly a decade-and-a-half on from its development, the field still lacks coherence. There is the absence of theory in much of the work and although theory-based articles achieved on average a higher number of citations than non-theoretical papers, there is no obvious contender as an emergent paradigm for the discipline. Furthermore, it is evident that P&SCM does not meet Fabians test necessary to make it a scientific discipline and is still some way from being a normal science. Research limitations/implications – This study would have benefited from the analysis of further journals, however the analysis of 1,113 articles from three leading journals in the field of P&SCM was deemed sufficient in scope. In addition, a further significant line of enquiry to follow is the rigour vs relevance debate. Practical implications – This article is of interest to both an academic and practitioner audience as it highlights the use theories in P&SCM. Furthermore, this article raises a number of important questions. Should research in this area draw more heavily on theory and if so which theories are appropriate? Social implications – The broader social implications relate to the discussion of how a scientific discipline develops and builds on the work of Fabian and Amundson. Originality/value – The data set for this study is significant and builds on a number of previous literature reviews. This review is both greater in scope than previous reviews and is broader in its subject focus. In addition, the citation analysis (not previously conducted in any of the reviews) and statistical test highlights that theory-based articles are more highly cited than non-theoretically based papers. This could indicate that researchers are attempting to build on one anothers work.

Uncertainty and contractual hazard in the film industry: managing adversarial collaboration with dominant suppliers

This paper focuses on the problems that arise when there is a power asymmetry between buyers and suppliers that is further complicated by risk and uncertainty. The case study analyses the film or movie industry supply chain and the power regime within it. The paper shows that relationships and contracts in the industry are structured to reflect the dominance of key players seeking to protect their own interests at the expense of others. It is argued that this problem of supplier self‐interest is reinforced for buyers in circumstances of uncertainty with high levels of pre‐ and post‐contractual risk. Buyers must enter into collaborative relationships with their suppliers to minimize risk and uncertainty, but the suppliers can appropriate a disproportionate share of value if a project is successful with the buyer taking all of the upfront risk.

Theoretical perspectives in operations management: an analysis of the literature

Purpose - It is important to advance operations management (OM) knowledge while being mindful of the theoretical developments of the discipline. The purpose of this paper is to explore which theoretical perspectives have dominated the OM field. This analysis allows the authors to identify theory trends and gaps in the literature and to identify fruitful areas for future research. A reflection on theory is also practical, given that it guides research toward important questions and enlightens OM practitioners. Design/methodology/approach - The authors provide an analysis of OM theory developments in the last 30 years. The study encompasses three decades of OM publications across three OM journals and contains an analysis of over 3,000 articles so as to identify which theories, over time, have been adopted by authors in order to understand OM topics. Findings - The authors find that the majority of studies are atheoretical, empirical, and focussed upon theory testing rather than on theory development. Some theories, such as the resource-based view and contingency theory, have an enduring relevance within OM. The authors also identify theories from psychology, economics, sociology, and organizational behavior that may, in the future, have salience to explain burgeoning OM research areas such as servitization and sustainability. Research limitations/implications - The study makes a novel contribution by exploring which main theories have been adopted or developed in OM, doing so by systematically analyzing articles from the three main journals in the field (the Journal of Operations Management, Production and Operations Management, and the International Journal of Operations and Production Management), which encompass three decades of OM publications. In order to focus the study, the authors may have missed important OM articles in other journals. Practical implications - A reflection on theories is important because theories inform how a researcher or practicing manager interprets and solves OM problems. This study allows the authors to reflect on the collective OM journey to date, to spot trends and gaps in the literature, and to identify fruitful areas for future research. Originality/value - As far as the authors are aware, there has not been an assessment of the main theoretical perspectives in OM. The research also identifies which topics are published in OM journals, and which theories are adopted to investigate them. The authors also reflect on whether the most cited papers and those winning best paper awards are theoretical. This gives the authors a richer understanding of the current state of OM research.

Power and value appropriation in the direct‐marketing publishing supply chain

Cox contrasts the two strategic options facing the firm wishing to successfully compete in its marketplace. The first of these options is based on cost control through replicable improvements in operational efficiency. The second is based on market closure and power through the development of non‐replicable skills and competencies. This paper, on the direct‐marketing publishing supply chain, will attempt to show that strategies of efficiency are the second best option since they force the firm onto a treadmill in which value cannot be retained but instead must be passed to the customer. This abrogates the reason for the firm’s creation in the first place.

Beyond intentional trust: supplier opportunism and management control mechanisms in public sector procurement and contracting

We test an argument, drawn from transaction cost economics, that an assumption of intentional trust should be replaced with one of supplier opportunism in public sector procurement and contract management. We use structural equation modelling to evaluate quantitative evidence from 180 public and private sector buyers on the perceived effectiveness of various management control mechanisms aimed at restraining supplier opportunism. Our findings suggest that supplier opportunism is potentially a problem and that certain procurement and contract management mechanisms can assist buying organisations in moderating that opportunism. This supports arguments in favour of a ‘cautious approach’ to procurement and contract management.

The micro-politics of operational adjustment : veto players and the consolidation of demand in the NHS

Recent reports about procurement within the NHS have been highly critical. One problem identified in the reports is the fragmentation of NHS demand across an unnecessarily large number of suppliers. This fragmentation is said to increase transaction costs, reduce opportunities for scale economies and reduce NHS leverage over suppliers. It has been suggested, therefore, that an important way of improving procurement in the NHS is the better consolidation of demand with a lower number of preferred suppliers. However, such a policy, because it will create ‘winners’ and ‘losers’ within NHS organisations, has political as well as technical and practical ramifications. In this article, the authors present a model, the Veto Players Model, in order to assist managers to address these political ramifications. In the article, the authors not only demonstrate the utility of this model with regard to demand consolidation policies, but also argue that the model provides useful lessons for change management initiatives more generally.

A Curate’s Egg: On the Use and Performance of Management Tools and Techniques

The survey work reported here was predicated on the assumption that there has been only very limited systematic analysis of the use and performance of management tools and techniques. Furthermore there is anecdotal evidence that managers are often dissatisfied with the tools and techniques that they use. Finally, some writers contend that managers often feel they are taken advantage of by academics and consultants (and publishers) selling them the latest fashionable ideas. The research reported here does not support this general conclusion.

The Case For and Against the Use of Management Tools and Techniques

The amusing quote above might lead one to conclude that business managers are the unwitting dupes of unscrupulous academics and consultants selling snake oil. Yet the major argument in this volume, which reports the findings from a survey of the use and performance of business management tools and techniques across 237 firms in 16 different industrial sectors, is that managers are not always as gullible as some may believe (Micklethwaite & Wooldridge, 1996). Indeed, the research reported here shows that there is a definite link between the willingness of managers to use management tools and techniques and the risks that have to be managed given the functions and the types of industry sectors that they operate in. This implies that there is evidence of practitioners being able to understand when specific tools and techniques are appropriate (the right tools for the job) and also when they are not (the wrong tools for the job).