Mehmet Demirbag

The impact of supply chain management practices on performance of SMEs

Purpose – The purpose of this study is to determine the underlying dimensions of supply chain management (SCM) practices and to empirically test a framework identifying the relationships among SCM practices, operational performance and SCM‐related organizational performance with special emphasis on small and medium size enterprises (SMEs) in Turkey.Design/methodology/approach – Data for the study were collected from a sample of 203 manufacturing SMEs operating in the manufacture of fabricated metal products and general purpose machinery (NACE codes 28 and 29) within the city of Istanbul in Turkey. The research framework was tested using partial least squares method, which is a variance‐based structural equation modeling approach.Findings – Based on exploratory factor analysis (EFA), SCM practices were grouped in two factors: outsourcing and multi‐suppliers (OMS), and strategic collaboration and lean practices (SCLP). The results indicate that both factors of SCLP and OMS have direct positive and significa...

An analysis of the relationship between TQM implementation and organisational performance: evidence from Turkish SMEs

Purpose – The principal aim of this paper is to determine the critical factors of total quality management (TQM) and to measure their effect on organizational performance of SMEs operating in Turkish textile industry.Design/methodology/approach – Data for this study was collected using a self‐administered questionnaire that was distributed to 500 SMEs in textile industry in the city of Istanbul in Turkey selected randomly from the database of Turkish Small Business Administration (KOSGEB). Of the 500 questionnaires posted, a total of 163 questionnaires were returned.Findings – Using exploratory and confirmatory factor analyses, seven empirically validated dimensions of TQM were identified. The structural equation modelling technique was employed to investigate the relationship between the implementation of TQM practices and organizational performance. Data analysis reveals that there is a strong positive relationship between TQM practices and non‐financial performance of SMEs, while there is only weak inf...

An application of data envelopment analytic hierarchy process for supplier selection : a case study of BEKO in Turkey

This paper aims to apply a hybrid method of supplier selection to a well-known Turkish company operating in the appliance industry. The data envelopment analytic hierarchy process (DEAHP) methodology developed by Ramanathan, R., (Data envelopment analysis for weight derivation and aggregation in the analytic hierarchy process. Computers and Operations Research, 2006, 33, 1289–1307) was chosen as the survey method. In this method, the data envelopment analysis (DEA) approach is embedded into analytic hierarchy process (AHP) methodology. This research concluded that the DEAHP method outperforms the AHP method for supplier selection despite the findings that the AHP model suggested supplier 1 to be the best supplier, contradicting the suggestion made by the DEAHP model and the real action taken by BEKO in selecting supplier 2. These findings imply that DEAHP criteria reflect closer to the real optimum of the decision made. Drawing on a real case our study has supported Ramanathans (2006) work confirming the view that the DEAHP method provides a better decision than the AHP method for supplier selection. Because the DEAHP model is relatively more cumbersome to apply, its application will be more appropriate for high-value components where stringent purchasing criteria are required. In contrast, AHP would remain to be an appropriate approach for relatively lower value components (C class). The novelty of this research lies in the application of a hybrid approach to a real industry case–the DEAHP method for supplier selection, where little has been done on this subject. This study has dealt with one of the most important subjects in supply chain management providing a better decision for supplier selection using appropriate quantitative approaches.

Factors Determining Offshore Location Choice for R&D Projects: A Comparative Study of Developed and Emerging Regions

This paper examines empirically the determinants of offshore location choice between country clusters. Based on a dataset of 1722 R&D projects by MNEs located in developed and emerging countries, we examine the impact of home and host country, industry, and firm level variables on choice of location. We draw on the extended OLI paradigm to develop our hypotheses. Using the EU15 as a base group, a multinomial logit model is estimated between the regions of USA&Canada, Eastern Europe&Russia, emerging countries of Asia, and India&China. At the regional level, findings show that the R&D wage difference and knowledge infrastructure difference between home and host countries, the science and engineering talent pool size, and political risk level of host countries are important determining factors. At the firm level, experience of overseas R&D projects and prior experience of research in the host country are found to be important location determinants. A distinguishing feature of the paper is that we examine regions in relation to a base region, and then further examine the impact of a marginal change in independent variables on the likelihood of the choice of a region for new offshore R&D projects.

TQM and market orientation's impact on SMEs' performance

Purpose – The principal aim of this study is to determine the impact of market orientation (MO) and implementation of total quality management (TQM) on organizational performance of SMEs.Design/methodology/approach – Based on theoretical considerations, a model is proposed linking the MO and TQM constructs to the organizational performance construct. Exploratory and confirmatory factor analyses empirically verified and validated the underlying dimensions of MO, TQM and organizational performance. Structural equation modeling was employed to test the model drawing on a sample of 141 SMEs operating in the Turkish textile industry.Findings – Data analysis reveals that, while MO has a strong and positive impact on the extent of TQM implementation, it has no significant impact on organizational performance. Similarly, a strong and positive relationship was noted between the level of TQM implementation and organizational performance. It has also been found that the MO has a positive and significant impact on or...

Hybrid analytical hierarchy process model for supplier selection

Purpose – This paper aims to propose a new approach called “analytical hierarchy process weighted fuzzy linear programming model (AHP‐FLP)” for supplier selection.Design/methodology/approach – A hybrid method of supplier selection, AHP‐FLP is applied to a real industry case. The weights of the various criteria, taken as local weights from a given judgment matrix, are calculated using analytical hierarchy process (AHP) that are also considered as the weights of the fuzzy linear programming model. This new model is compared with the classical AHP method.Findings – This study concluded that the AHP‐FLP method outperforms the AHP method for supplier selection with respect to restricted supplier selection criteria. Drawing on a real case, Supplier 1 was identified to be the best supplier through the AHP model under no restrictions, which contradicts the finding that Supplier 2 was selected as the best supplier by the AHP‐FLP model subject to constraints.Research limitations/implications – More research is defi...

A causal analysis of formal strategic planning and firm performance: evidence from an emerging country

Purpose – The purpose of this paper is to examine the nature of the strategic planning‐performance relationship by drawing on data from a sample of Turkish firms.Design/methodology/approach – The sample frame for the study was derived from the database of the Istanbul Chamber of Industrys 500 largest Turkish manufacturing companies and the database of companies quoted on the Istanbul Stock Exchange. Based on a postal survey, 135 usable questionnaires were returned. Using LISREL causal modeling the moderating effects of a set of contingency factors on the relationship between formal strategic planning and firm performance were investigated.Findings – The findings show that there is a good deal of support for the studys hypotheses. A strong and positive relationship was formed between formal strategic planning and firm performance, which tends to confirm the arguments of the prescriptive strategic management literature. The test results also verify the moderating roles of environmental turbulence, organiz...

The Dynamics of Manufacturing Joint Ventures in Turkey and the Role of Industrial Groups

This article is based on an empirical study of West European, U.S. and Japanese MNCs which have established joint ventures with local companies in Turkey. This empirical study covers a survey of 47 multinational and 21 local private firms which are parents to joint ventures in Turkey. Specific attention is paid to joint venture establishment strategies, motivations for joint ventures, and the motives of local parent firms compared to foreign MNCs in entering such collaborative alliances. The paper also analyses the overall pattern of FDI and the specific characteristics of joint ventures within this overall pattern.

Global knowledge and R&D foreign direct investment flows: recent patterns in Asia Pacific, Europe, and North America

Abstract The global nature of foreign direct investment (FDI) is changing in terms of both location and sectors of activity. This paper analyses recent flows of R&D FDI across the globe. It is found that North America has been the source of one‐half of all R&D FDI between 2002 and 2005. Asia Pacific, especially China and India, has been the overwhelming destination for most R&D FDI, accounting for more than one‐half of all investment and almost three‐quarters of the jobs created. In general, R&D FDI has not been equitably spread across nations such as India and China but concentrated in a small number of locations. R&D FDI from advanced economies is facilitating the emergence of new centres and clusters of knowledge across the globe. This global redistribution of knowledge brings challenges to policymakers in both the developed and the developing world. The challenges come in two main forms: first, cross‐regional disparities in knowledge‐based wealth creation within particular nations; and second, anxieties about the offshoring of knowledge‐based tasks and jobs. It is argued that current patterns of global knowledge flow require policies to nurture the open regional innovation systems being established by these flows.

Motives for Retailer Internationalization to Central and Eastern Europe

This paper focuses on internationalization motives of multinational retailers with regard to three Central and Eastern European countries including Poland, Hungary, and the Czech Republic. Based on the prior literature reviewed, a comprehensive set of retail internationalization motives was identified. The highest ranked retail internalization motives were found to be concerned more with host country-specific motives than home country and firm-specific motives. The study also found that the relative importance of the retail internalization motives varied most with the retail type of operations, and to a moderate extent with the market entry mode. However, no significant difference was found between the relative importance of the retail internalization motives and host country origin.