Thomas Y. Choi

Supply networks and complex adaptive systems: control versus emergence

In much of the current literature on supply chain management, supply networks are recognized as a system. In this paper, we take this observation to the next level by arguing the need to recognize supply networks as a complex adaptive system (CAS). We propose that many supply networks emerge rather than result from purposeful design by a singular entity. Most supply chain management literature emphasizes negative feedback for purposes of control; however, the emergent patterns in a supply network can much better be managed through positive feedback, which allows for autonomous action. Imposing too much control detracts from innovation and flexibility; conversely, allowing too much emergence can undermine managerial predictability and work routines. Therefore, when managing supply networks, managers must appropriately balance how much to control and how much to let emerge.

An exploration of supplier selection practices across the supply chain

Abstract The US auto industry has undergone tremendous changes during the past decade. Companies have increased their level of out-sourcing and are relying more heavily on their supply chain as a source of their competitive advantage. Thus, determining which suppliers to include in the supplier chain has become a key strategic consideration. However, previous studies of supplier selection have not considered a companys position in the supply chain. In this paper, we compare supplier-selection practices based on a survey of companies at different levels in the auto industry. Our findings rebut the common thinking that indirect suppliers who are more involved in commodity purchasing emphasize initial price and de-emphasize relational considerations. We learned that selecting suppliers based on the potential for a cooperative, long-term relationship is just as important to direct and indirect suppliers as it is to the auto assemblers. We also learned that price is one of the least important selection items, regardless of position on the supply chain. Further, contrary to the existing understanding that quality and delivery are separate constructs, they formed a single construct in our study. To summarize the empirical results, no differences among the auto assemblers, direct suppliers, and indirect suppliers were found for the importance placed on consistency (quality and delivery), reliability, relationship, flexibility, price, and service. Statistically significant differences were found between the auto assemblers and indirect suppliers on the importance placed on technological capability and financial issues.

The TQM Paradox: Relations among TQM practices, plant performance, and customer satisfaction

Abstract We empirically examine a mediational model of TQM, in which TQM practices have a direct impact on customer satisfaction and an indirect impact mediated through plant performance. We adopt a survey approach using the data from 339 manufacturing companies. We first establish convergent validity, discriminant validity, and reliability of the constructs. We then examine the model using LISREL 8.10. The results suggest paradoxical relations among TQM practices, plant performance, and customer satisfaction. TQM practices have a stronger impact on customer satisfaction than they do on plant performance. Further, the plant performance, as described in the mediational model, fails to show a significant impact on customer satisfaction. This observation is explained based on an institutional argument that states that loose coupling may occur between TQM practices designed for customer demands and the activities on the plant floor designed for plant performance.

Unveiling the structure of supply networks: Case studies in Honda, Acura, and DaimlerChrysler

Abstract Three complete supply networks have been mapped in this study. These supply networks pertain to the center console assembly and come from three different product lines—Honda Accord, Acura CL/TL, and DaimlerChrysler (DCX) Grand Cherokee. Based on these three cases of supply networks, propositions are built concerning how the structure of supply networks operates. Based on the extant literature, we frame structure in three dimensions—formalization, centralization, and complexity. As an underlying methodology, we first conduct the within-case analysis and then expand the analysis to cross-case context. The three structural dimensions affect one another progressively, and the cost consideration appears to be the overarching force that shapes the supply-network structure.

Supply‐chain linkages and operational performance

In order to improve performance at the operational level, more and more firms are developing explicit linkages with suppliers and with customers. While the question of “what beneficial impact do linkages with suppliers and with customers have for a firm” has been addressed in numerous studies, the equally important question of “why” this beneficial impact arises deserves further discourse and explication. This paper borrows and applies the Resource‐Based View of the Firm, a theoretical perspective prevalent in the strategic management literature, to develop a conceptual framework to describe, explain, and predict the advantages of a firms linkages with entities in its supply chain on its internal operations. The proposed framework can be used to justify decisions to develop, strengthen, and protect relationships with suppliers on the upstream side and with customers on the downstream side. The framework can also be used to evaluate practices implemented to link a firm to its suppliers and customers and to provide a decision roadmap for firms to better understand how to maximize operational performance benefits from these supply chain linkages.

Survey research in operations management: historical analyses

Abstract Our paper provides a comprehensive assessment of 285 survey research articles in operations management (OM), published between 1980 and 2000. Six OM journals are included in this study; they are, in alphabetical order: Decision Sciences ( DS ), International Journal of Operations & Production Management ( IJOPM ), International Journal of Production Research ( IJPR ), Journal of Operations Management ( JOM ), Management Science ( MS ), and Production and Operations Management ( POM ). In this paper, we reflect upon the state and evolution of survey research in the OM discipline across a 21-year time span and the contribution of OM journals that have published these studies. Major changes have occurred in the last 5 years of our sampling period, and two topics stood out as showing fastest ascendancy to prominence—operations strategy and supply chain management. Furthermore, over the years, the Journal of Operations Management appears to have been publishing more survey research articles and a greater variety of OM topics compared to the other five journals in our study.

On the dark side of strategic sourcing: Experiences from the aerospace industry

Executive Overview American manufacturing has undergone dramatic changes during the last two decades. Manufacturing firms were re-engineered, downsized, and restructured. Employees were dismissed, divisions were scrapped, and subsidiaries were spun off. As a consequence, outsourcing to external suppliers increased significantly, which in turn resulted in the increased saliency of strategic sourcing and its economic implications. Strategic sourcing integrates the buying firms strategic decisions with those of its key suppliers, thus promoting trust and decreasing transaction costs. However, a dark side of strategic sourcing has emerged. Some firms established long-term contracts with their suppliers, set up mutually dependent relationships, and then began to strangle suppliers with relentlessly short-term, cost-driven decisions. As a result, the buying firms and their suppliers have now become competitors in the same market. Simply put, there is serious long-term risk associated with firms becoming strate...

Supply chain interactions and time‐related performances: An operations management perspective

Many studies claim that when an organization interacts with suppliers and with customers across the supply chain, the organization would achieve improved time performances. This claim, however, has undergone limited theoretical development, as well as subsequent systematic empirical testing. As a result, we still have incomplete understanding of the “why” (i.e. the rationale) and the “how” (i.e. the mechanisms by which) of such interaction’s impact on time performances. This study addresses these issues through both model development and empirical analyses of 164 plants. Our analyses suggest two findings. First, when an organization interacts with suppliers and with customers on quality management issues, the organization would improve its time performances indirectly as a result of complete mediation by internal practices for: quality management; low management; inter‐unit coordination; and vertical coordination. On the other hand, when an organization interacts with suppliers and with customers on materials flow management issues, the impact on time‐related performances can either be completely or partially mediated by internal practices.

Supplier-supplier relationships and their implications for buyer-supplier relationships

Many researchers have investigated the dynamics of buyer-supplier relationships and have, in general, posited the importance of long-term, cooperative relationships. However, the relationship between suppliers (i.e., supplier-supplier relationship) and its potential impact on the buyer-supplier relationship have not yet been considered. This research addresses a void in the literature, especially given that many buyers now work with a smaller supplier base and deliberately try to foster certain types of supplier-supplier relationships. Building on the existing buyer-supplier and strategic alliance literature, we propose three archetypes of supplier-supplier relationships. This research further illustrates the strategic role of the buying firm in structuring these relationships and explores the managerial implications of different types of supplier-supplier relationships from the perspectives of both the buying firm and its suppliers.

Research Opportunities in Purchasing and Supply Management

Purchasing and supply management (PSM) are crucial for the effective and efficient operation of manufacturing firms, now more than ever. The PSM function has evolved from being routine and mechanical to a function that can deliver true competitive advantage. The trend toward increased globalisation and outsourcing, along with a focus on innovation- and capability-driven supply management, has led to an increased reliance on suppliers. This has significantly enhanced the importance of PSM for manufacturing companies. The heightened significance in practice has been paralleled by an increasing attention of researchers in developing theories and chronicling best practices. At the same time, the rapid rate of change represents both daunting challenges and exciting opportunities for research in PSM. It is the goal of this article to highlight such challenges and discuss ensuing opportunities in PSM research. This objective is accomplished via the nominal group technique involving a panel of leading scholars in the purchasing and supply management field. As such, the article presents a synthesis and discussion of important research themes, poses a set of intriguing research opportunities, and serves as a motivation for future investigation.