Roland Ortt

Multi-criteria supplier segmentation using a fuzzy preference relations based AHP

One of the strategic activities of a firm is supplier segmentation, whereby a firm creates groups of suppliers to handle them differently. Existing literature provides several typologies of suppliers, each of which uses different dimensions/variables. In this paper, different typologies are combined by distinguishing two overarching dimensions, the capabilities and the willingness of suppliers to cooperate with a particular firm. These dimensions cover almost all the existing supplier segmentation criteria mentioned in existing literature. For each particular situation, these dimensions can be specified using a multi-criteria decision-making method. A methodology is proposed that includes a fuzzy Analytic Hierarchy Process (AHP) which uses fuzzy preference relations to incorporate the ambiguities and uncertainties that usually exist in human judgment. The proposed methodology is used to segment the suppliers of a broiler company. The result is a segmentation of suppliers based on two aggregated dimensions. Finally some strategies to handle different segments are discussed and concluding remarks and suggestions for future research are provided.

A multi-variable approach to supplier segmentation

The aim of this paper is to develop a new approach to supplier segmentation that considers the various variables used in existing literature to segment suppliers. A literature review reveals a serious problem from a management perspective. The problem is that many different supplier segmentation methods have been proposed in the last three decades, each of which uses different segmentation variables and hence results in different segments. An overarching supplier segmentation method, considering various segmentation variables, is lacking. Based on an extensive literature review, we have analysed the current methods and we conclude that the literature on supplier segmentation can be divided into three different schools of thoughts. By clearly identifying the deficiencies of the existing theory on supplier segmentation, we developed a new approach. As the basis for this new approach, we developed three requirements to make an overarching approach to supplier segmentation. Firstly, supplier segmentation should be based on their long-term potential, which we propose to assess in terms of supplier capabilities and willingness to cooperate. Secondly, other functional areas beyond purchasing have to be considered when segmenting suppliers. Thirdly, supplier segmentation should be viewed as a step in a longitudinal process that includes selecting suppliers, segmenting them, managing the relationship with them and actively developing their role over time. We illustrate the proposed approach by segmenting the suppliers of a company in the food industry.

An improved fuzzy preference programming to evaluate entrepreneurship orientation

This paper describes an approach to measuring the entrepreneurship orientation (EO) of firms. EO is a widely accepted way to measure the degree in which a firm is entrepreneurial. The scale has three dimensions - innovativeness, risk-taking and proactiveness - each of which is assessed using multiple items. Measuring EO is important for entrepreneurial firms and for organizations like venture capitalists, business angels, investment banks and governments investing in these firms. Both the traditional statistical and the simple approach of assessing the overall level of EO (adding item scores) have their disadvantages. The aim of this article is to discuss these disadvantages and describe how some of them can be removed by using fuzzy analytic hierarchy process (AHP), which is a multi-criteria decision-making (MCDM) method that is particularly suited to tackle multi-dimensional, fuzzy, and perception-based constructs such as EO. We first improve a fuzzy AHP and then apply it using the pairwise comparisons of three experts to evaluate the EO of 59 small to medium-sized enterprises (SMEs) and rank the firms based on their EO score. The results indicate that proactiveness is by far the most important dimension, followed by innovativeness. Furthermore, there are considerable differences when it comes to the weights of the items.

Measuring entrepreneurship: Expert-based vs. data-based methodologies

The concept of entrepreneurial orientation (EO) has become essential in research into the degree of entrepreneurial behavior at firm level. It is relevant to managers to be able to assess explicitly the level of entrepreneurship of a firm. Incubators, venture capitalists, corporate venturing units, angel investors, investment banks and governments need solid measures that go beyond expert intuition to assess the entrepreneurial nature of firms before they invest in them. Researchers have examined EO and consider innovativeness, risk taking, and proactiveness are important dimensions of this concept. Although the concept is seen as a multidimensional construct, there has been a great deal of debate among scholars on how to analyse it. The traditional statistical methodology has a number of drawbacks. In this article, we extend the debate and assess the construct of EO using four different methodologies: the traditional statistical methodology, a fuzzy-logic methodology, a DEA-like methodology and a naive methodology. As an expert-based methodology, fuzzy logic compensates some of the limitations of the statistical methodology. Drawing on a sample of 59 start-ups in a self-administered questionnaire, we measure innovativeness, risk taking and proactiveness and subsequently compare the resulting EO scores using the four methodologies. We found several differences, the most prominent of which are discussed in greater detail. The EO score from a naive methodology yields a value that lies between the other results, while the entrepreneurial score from a fuzzy logic methodology is most different from the other results.

How SMEs can benefit from supply chain partnerships

In recent literature on supply chain partnerships in small and medium-sized enterprises (SMEs), there is controversy regarding the benefits of these partnerships. To resolve this controversy, specific information is needed on the implementation of these partnerships by SMEs; an area, that, thus far, has received little academic attention. In this paper, we examine different business functions (production, marketing and sales, purchasing and logistics, research and development (R&D) and finance) within a supply chain partnership. We collected data for each individual function from 279 high-tech SMEs and examined the relationship between the specific types of partnerships and the overall performance of the SMEs. The results indicate that it is only in the area of R&D that partnerships have a significant positive effect on overall firm performance. The results imply that SMEs primarily can benefit from particular types of supply chain partnerships, i.e. R&D partnerships. The results contribute to the debate in the literature by explaining why many SMEs were found not to benefit from these partnerships. We also provide implications for firms and how SMEs can better utilise supply chain management (SCM).

The Cyclic Innovation Model: A New Challenge for a Regional Approach to Innovation Systems?

Abstract Innovation processes have changed significantly in the last four decades. Organizations no longer innovate on their own, aware that they need to decentralize their innovation activities and have to cooperate closely with other organizations in innovation systems. In this paper we discuss the spatial consequences of these developments, introducing the Cyclic Innovation Model (CIM) as a framework to analyse system innovation and applying it to the case of Thixomoulding, i.e. the development and exploitation of a revolutionary new material in the region of Flevoland, a province of the Netherlands.

Supply chain drivers, partnerships and performance of high-tech SMEs: An empirical study using SEM

Purpose The purpose of this paper is to examine high-tech small-to-medium-sized enterprises (SMEs) supply chain partnerships. Partnerships are considered at the level of business function rather than the entire organisation. Second, the drivers of SMEs to engage in partnerships are assessed to see whether functions engage in partnerships for different reasons. Third, performance per function is assessed to see the differential effect of partnerships on the function’s performance. Design/methodology/approach In this study, the relationship between the drivers of SMEs to engage in partnerships, four types of partnerships (marketing and sales, research and development (R&D), purchasing and logistics, and production) and four types of functional performances of firms (marketing and sales, R&D, purchasing and logistics, and production) are examined. The data have been collected from 279 SMEs. The proposed hypotheses are tested using structural equation modelling. Findings The results indicate that there are considerable differences between business functions in terms of the degree of involvement in partnerships and the effect of partnerships on the performance of these functions. This paper contributes to research by explaining the contradictory results of partnerships on SMEs performance. Practical implications This study helps firms understand which type of partnership should be established based on the firm’s drivers to engage in supply chain partnership; and which partnership has a significant effect on which type of business performance of the firm. Originality/value The originality of this study is to investigate the relationship between different drivers to engage in supply chain partnership and different types of partnerships and different functional performance of firm in a single model.

INNOVATORS AND EARLY ADOPTERS IN THE DIFFUSION OF INNOVATIONS: A LITERATURE REVIEW

Despite accounting for a very small percentage of the population that adopts an innovation, the ‘innovators’ and ‘early adopters’ — representing the two earliest groups of individuals to acquire the new product or service — play a crucial role in the dissemination of the innovation to larger market segments. The objective of this paper is to understand the characteristics of these individuals that positively influence their decisions to adopt innovations. We argue that awareness of these traits will enable firms to attain speedier uptake of their offerings while aiding policymakers achieve quicker and wider proliferation of new technologies intended for societal benefit. We undertake a review of the literature studying the diffusion of innovations and show future directions that this framework should take to analyse the adoption lifecycle.

Market creation for radically new technologies: A literature review on the role of market niches

The article focuses on the role of niche markets in creating a market for radically new technologies. Managerially, niche strategies are important to build up a market. Scientifically, the information about these strategies is scattered. In a literature review four research questions are addressed: (1) Are different types of niches distinguished? (2) Are specific sequences of niches distinguished? (3) What are the factors that determine the emergence of niches? (4) Are different niche strategies distinguished? We found that articles focusing on technical details or on social aspects alone underestimate the difficulties in building up markets for radically new technologies. Three sequences of market niches are found to build up such markets. Many factors important for the emergence and selection of niches are found but the overview is lacking. We found two generic niche strategies and indicate when these strategies are applicable. The review discovers important gaps in the extant literature.

Technology standards battles and business networks during the technology life cycle: Propositions and a plan for further research

In this paper we explore the relationship between business networks and technology standards battles for dominance during the technology life cycle. Based on brief reviews of existing theory and research, we relate (1) standard dominance to the technology life cycle, (2) the business network to standard dominance and (3) the technology life cycle to the business network. We expect the technology life cycle to be a moderator of the relationship between the business network and technology standard dominance. We formulate propositions of how size, diversity and density of the business network contribute to standard dominance during the technology life cycle and we propose a way to further study these propositions.