Jayanth Jayaram

Supply Chain Management: A Strategic Perspective

In order to respond to competitive pressures, managers need to know more about the strategic aspects of supply chain management. This paper addresses this need by critically reviewing the supply chain management literature and by suggesting a research agenda for the future. A conceptual model is provided which helps to identify certain assumptions made in the literature that must be challenged. The model also provides a tool for identifying the major contributions in the literature. Finally, a research agenda is developed.

Internal and External Integration for Product Development: The Contingency Effects of Uncertainty, Equivocality, and Platform Strategy

Effective product development requires firms to unify internal and external participants. As companies attempt to create this integrated environment, two important questions emerge. Does a high level of internal integration lead to a higher level of external integration? In the context of product development, this study considers whether internal integration in the form of concurrent engineering practices affects the level of external integration as manifested by customer integration, supplier product integration, and supplier process integration. External integration, in turn, may influence competitive capabilities, namely product innovation performance and quality performance. Second, using contingency theory, do certain contextual variables moderate the linkages between integration strategy (external and internal) and performance? Specifically, this study considers whether uncertainty, equivocality, and platform development strategy change the relationships among internal integration, external integration, and competitive capabilities. Data collected from 244 manufacturing firms across several industries were used to test these research questions. The results indicate that both internal and external integration positively influence product innovation and quality and ultimately, profitability. With respect to contingency effects, the results indicate that equivocality moderates the relationships between integration and performance.

The impact of human resource management practices on manufacturing performance

Abstract A human resource management (HRM) analysis framework is proposed and tested using data from first tier suppliers to the Big 3 in North America. Relationships among underlying dimensions of human resource management practices and manufacturing performance are examined. The study found support for the proposed framework, suggesting that human resource management practices can be grouped into five distinct factors, four of which are associated with specific manufacturing competitive dimensions (quality, flexibility, cost and time). The remaining HRM factor is generic. The four priority-specific HRM factors are strongly related to their respective manufacturing performance dimensions.

The effects of information system infrastructure and process improvements on supply‐chain time performance

An empirical study of 57 top‐tier suppliers to the North American automotive industry examined the direct and complementary effects of information system infrastructure (ISI) and process improvements on time‐based performance. The results show that the three dimensions of ISI – design‐manufacturing integration (DMI), manufacturing technology (MT), and information technology (IT) – directly influenced at least one dimension of time‐based performance. For example, DMI influenced manufacturing lead time, MT influenced new product development time, and IT influenced customer responsiveness. Process improvement also directly influenced supply‐chain time performance. Finally, ISI and process improvement had a positive and complementary effect on time‐based performance. Specifically, the IT factor along with process improvement variables (standardization and concurrent engineering) had a complementary and significant positive influence on time‐based performance. The findings strongly support the idea of joint deployment of information system infrastructure and process improvement to streamline cycle time performance in a supply chain.

An empirical study of time‐based competition in the North American automotive supplier industry

The importance of responding to time‐based competitive pressures has prompted US manufacturers to emphasize time‐based performance and deploy strategic action programs aimed at cycle time reduction. This study examines time‐based competition among first tier suppliers to the Big Three in North America. A comprehensive set of time‐based performance measures is defined and time‐related action programs associated with world class manufacturing strategies are identified. Relationships between time‐related action programs, time‐based performance, and overall firm performance are examined. The study shows that time‐based performance significantly affects overall firm performance and that manufacturing lead time is especially critical in the automotive industry. The study also identifies strategic action programs that result in improved performance on various dimensions of time‐based performance.

Relationship building, lean strategy and firm performance: an exploratory study in the automotive supplier industry

In contrast to previous literature, we propose that commitment to lean strategy should be preceded by building close relationships with key supply chain partners (suppliers and customers). Two aspects of lean strategy, lean manufacturing and lean design are studied in this paper. We hypothesize that relationship building positively affects both aspects of lean strategy, which in turn positively influences firm performance. To test these relationships, we use data from the top 150 auto suppliers to the ‘Big Three’ original equipment manufacturers (OEMs). The results show positive relationships between (1) relationship building and lean design, (2) relationship building and lean manufacturing, and (3) lean design and firm performance. This suggests that relationship building is more valuable for enhancing the ‘product’ aspects of lean strategy as opposed to the ‘process’ aspects of lean strategy. Process aspects of lean strategy appear to be largely a function of internal efforts.

An empirical investigation of the antecedents and consequences of manufacturing goal achievement in North American, European and Pan Pacific firms

Abstract Descriptions of the content of manufacturing goals, and in particular, the variations in the professed goals of manufacturing among firms are abundant in the manufacturing strategy literature. However, few empirical studies have addressed the process (i.e., causal linkages pertaining to and among supply management, process improvements, and information systems) relating to and affecting the degree of manufacturing goal achievement. The major objectives pursued in this study are: 1) To propose a conceptual model that examines the antecedents and consequences of manufacturing goal achievement and test its empirical validity; and 2) To verify whether the conceptual model is valid across North American, European and Pan Pacific regions using the GMRG database. This study examines relationships among supply management, process improvements, information systems, manufacturing goals, customer responsiveness, and firm performance across a sample of 576 manufacturing firms competing in the global arena, and tests the posited structural equation model. The results consistently support the validity of the proposed conceptual model in all three regions. The results also provide empirical support for the conclusion that manufacturing firms in the three geographical regions examined in this study emphasize different manufacturing goals. The results suggest that this differential emphasis on manufacturing goals leads firms to mobilize a different set of resources suggesting differences in manufacturing strategy. The paper suggests additional research issues that can be pursued.

Influence of initiators on supply chain value creation

Value creation in the supply chain has attracted considerable attention in the literature. It has typically been characterized as being the result of either external or organization spanning, or internal efforts to improve supply chain performance. Few studies have examined the simultaneous effects of internally and externally focused efforts to improve supply chain performance. Moreover, there is no discussion in the literature of the precursors or initial conditions that lead to successful supply chains. Drawing from different theoretical perspectives, two key motivators or initiators of value creation in supply chains are identified: structural mechanisms and relationship building. It is proposed that these initiators have a positive influence on value creation efforts, operationalized by the improvement of supply processes and responsiveness to customer needs (external focus), and internal production processes (internal focus). A structural equation model linking initiators and value creation mechanisms to performance is proposed and tested using data from a large sample of firms. Results suggest that firms that pay attention to initiators may derive greater benefit from their value creation efforts and thus yield improved performance.

Examining the interrelationships between supply chain integration scope and supply chain management efforts

In this article, we study the concept of supply chain integration scope by comparing firms that involve immediate supply chain partners in their strategic efforts (narrow supply chain scope) versus firms that involve supply chain partners beyond the immediate level, for example second tier suppliers and end customers (broad supply chain scope). By relying on Coordination Theory and expanding upon Frohlich and Westbrooks (2001) ‘arcs of integration’ principle, we propose that supply chain integration scope and the type of supply chain management efforts deployed by firms are correlated. We use data from a large sample of US and European firms to explore the association between supply chain integration scope and supply chain management efforts. The results show that supply chain integration scope can be predicted by a firms supply chain management efforts. The implications of our results for practising managers are also offered. Our results suggest that supply chain managers should consider the practices identified in this study while deciding on the appropriate level of supply chain integration scope, i.e., which extended supply chain members to include in their strategic planning efforts.

Supplier involvement in new product development projects: dimensionality and contingency effects

In contrast to previous literature, we hypothesize supplier involvement in new product development (NPD) projects to be multidimensional in nature and test this assumption using data from a large sample of NPD projects. We also test the contingent influence of supplier involvement on NPD project performance. The results supported the claim of multidimensionality of supplier involvement. Three distinct factors–communication and information sharing, design involvement and infrastructure–comprising supplier involvement were found. These factors were significantly related to one or more measures of NPD project performance. The study also found support for the contingent influence of market stability on the supplier involvement–NPD project performance relationships. The results suggest that managers ought to consider adopting different bundles of supplier involvement practices that depend on the level of stability in markets and also on the type of NPD performance objective that is being considered.