By Daniel Kern
Table of Contents
Foreword ……………………………………………………………………………. V
Acknowledgements •••••••••••••••••••••••••••••••••••••••••••••••• VII
Table of Contents ••••••••••••••••••••••••••••••••••••••••••••••••••••••••• IX
Li.t of Figure •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• XIll
List of Table •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• XV
List of Abbreviations ••••••••••••••••••••••••••••••••••••••••••••• xvn
L Introduction ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 1
IL Purehasing Competenee: A Stakeholder-h •• ed Framework for Chief
Purchasing Omeers •••••••••••••••••••••••••••• 5
1.Iotroduction …………………………………………………………………………………………… 6
2. Tbeoretical Background …………………………………………………………………………. 8
2.1. Stakeholder Group Suppliers …………………………………………………………… 9
2.2. Stakeholder Group Ioternal Clients ………………………………………………… 11
2.3. Stakeholder Group PSM staff ………………………………………………………… 13
3. Research Design ………………………………………………………………………………….. 16
3.1. Sampie ………………………………………………………………………………………… 16
3.2. Data Collection ……………………………………………………………………………. 18
4. Results ………………………………………………………………………………………………… 19
4.1. Measurement criteria ……………………………………………………………………. 19
4.2. Second order factor model …………………………………………………………….. 22
4.3. Predictive validity ………………………………………………………………………… 24
5. Tbeoretical and Manageriallmplications ………………………………………………… 25
6. Discussion and future research directions ……………………………………………….. 27
7. References …………………………………………………………………………………………… 28
IIL Supply Risk Management: Model Development and Empirical Analysis •••••• 41
1.Iotroduction …………………………………………………………………………………………. 42
2. Upstream Supply Chsin Risk Management …………………………………………….. 44
3. Conceptual Model.. ………………………………………………………………………………. 45
3.1. Risk ldentification ………………………………………………………………………… 46
3.2. Risk Assessment ………………………………………………………………………….. 47
3.3. Risk Mitigation ……………………………………………………………………………. 48
3.4. Continuous Improvement Pwccss ………………………………………………….. 49
3.5. Risk Perfonnance …………………………………………………………………………. 50
4. Tbc Empirical Study …………………………………………………………………………….. 51
4.1. Sampie and Data Collection ………………………………………………………….. 51
4.2. Analytical Method ……………………………………………………………………….. 54
4.3. Measurement Model …………………………………………………………………….. 54
4.4. Structural Model ………………………………………………………………………….. 58
5. Discussion and Implications ………………………………………………………………….. 59
6. Limitations and Future Research Directions ……………………………………………. 61
7. References …………………………………………………………………………………………… 63
8. Appendix …………………………………………………………………………………………….. 68
IV. Supply Network Configuralion Benchmarking: Framework
Development and AppHcation In the Indian AutomotIve Indnstry …………….. 71
1. Introduction …………………………………………………………………………………………. 72
2. Tbeoretical Background ……………………………………………………………………….. 74
2.1. Dyadic relationships and network dynamies ……………………………………. 74
2.2. Transaction Cost Economies …………………………………………………………. 78
2.3. Tbe Political Economy Framework ………………………………………………… 78
2.4. Tbe IMP Interaction Model …………………………………………………………… 79
2.5. An Organizational·Sociological Network Approach: Tbeory of
Structuration ………………………………………………………………………………… 80
2.6. An Interaction·Based Network Approach: Industrial Network
Approach …………………………………………………………………………………….. 81
3. A BenchmarkIng Framework for Supply Network Configuration ………………. 82
3.1. BenchmarkIng Level I: Level ofRelationship Connectedness …………… 84
3.2. BenchmarkIng Level 2: Chain Authority and Centralization ……………… 85
3.3. BenchmarkIng Level 3: Network Dynamics ……………………………………. 86
4. Discussion: Case Example of Two Westem OEMs in the Indian
Automotive Industry …………………………………………………………………………….. 87
4.1. Cas.,.Study Development ……………………………………………………………… 87
4.2. Case Example: Analysis ……………………………………………………………….. 88
5. Cooclusion ………………………………………………………………………………………….. 91
6. Limitationa and further research directions ……………………………………………… 93
7. References …………………………………………………………………………………………… 94
V. Determining the Total Co.t of Supply Chain: A TCO-Approaeh to
Supply Chain Optimization ……………………………………………………………………… 99
I. Introduction ……………………………………………………………………………………….. 100
2. Literature Review ………………………………………………………………………………. 101
3. Theoretical Concepl.. ………………………………………………………………………….. 107
3.1. Information Sharing ……………………………………………………………………. 108
3.2. Synchronized Interfaces ………………………………………………………………. 109
3.3. Overa1l Target System ………………………………………………………………… 110
3.4. Opportunistic Behavior ……………………………………………………………….. 111
3.5. End-Customer Focus …………………………………………………………………… 112
4. Research Methodology ……………………………………………………………………….. 112
4.1. Research Desigo …………………………………………………………………………. 112
4.2. Data Collection ………………………………………………………………………….. 115
4.3. Data Analysis …………………………………………………………………………….. 117
5. Results ………………………………………………………………………………………………. 118
5.1. Information Sharing ……………………………………………………………………. 118
5.2. Synchronized Interfaces ………………………………………………………………. 119
5.3. Overa1l Target System ………………………………………………………………… 120
5.4. Opportunistic Behavior ……………………………………………………………….. 121
5.5. End-Customer Focus …………………………………………………………………… 122
6. Discussion and Implicationa ………………………………………………………………… 123
7. Limitationa and Directions for Further Research ……………………………………. 125
8. References…. …………….. ……………….. …………….. ……………….. ……………….. ….. 127
VI. Final Con.lu.ion ……………………………………………………………………………………. 137
Introduction
The rccent past has seen a growing inlerest in supply chain management (SCM) topics. These seM topics cover research on inter-firm collabomtion, risk management processes, various works on pmchasing competences, research on measuring and benchmarking SCM efforts and many more. Despite the vast amount of published supply chain research, the need for the further refinement of SCM tools is even more relevant today. Many researchers found in their studies !hat the theoretical SCM tools and concepts still lack practical implementation in today’s business world (Kouvelis et al., 2006). Many conceptual models of SCM still require ernpitical validation and in· depth case studies of how to implement the theoretical concepts into the day·to-day business of multinational corporations. With this thesis, the author contributes to tbe field of SCM research in various ways.
The first article addresses a very specific research stream within the purchasing and supply management Hterature focusing on the development of purchasing competence frameworks. While competence management frameworks have been studied before, the article successfully appHes stakeholder theory and multiple methods of data collection to develop and confirm a hierarchy·specific frameworl< for chief procurement officers. This framework is then validated using confirmatory factor analysis on empitical data from 124 multinational companies. The results revea! a significant relationsbip between CPO’s purehasing management cornpetences and different purehasing performance measures, confrrrning the appropriateness of stakeholder theory for such a competencc framework. This research furthcr elaborates purchasing competence management frameworks in more detail by focusing on a very specific group of purehasing professionals – namely CPOs. The results gnide CPOs to manage their most important stakeholders with appropriate concepts and actions.
Thc second article focuses in detail on an essential process within supply chain management – namely supply risk management. Together with the development of supply chain management, risk management processes were designed in order to reduce the vulnerability of supply chain operations. Within this paper, the author emphasizes the need for professional supply risk management processes and develops a model for upstream supply chain risk management linking risk identification, risk assessment and risk mitigation to risk performance. The effect of a continuous improvement process on identification, assessmenl, and mitigation is also included in the model. Tbe model is then validated empirically through a path anaytica model using partial least squares analyses on survey data from 162 large and mid-sized manufacturing companies located in Germany. All items load high on therr respective constructs and the data provides robust support 10 all hypothesized relationahips.
Superior risk identification supports the suhsequent risk assessment and Ibis in turn leads 10 belter risk mitigation. Tbe model exp1ains 46% of the variance observed in risk performance. Tbus, Ibis study empirically validates the sequentia effeet of the Ihree risk management stoPs on risk performance as well as the influence of continuous improvement activities. Tbe detailed operationaization of the constructs sheds further light on the problem of measuring risk management efforts. Clear evidence of the performance effect of risk management provides managers with a business ease to invest in such initiatives. Being one of the first large-sca1e, empirical studies on the process dimensions of opstrearn supply chain risk management, Ibis study provides origina1ity and supports corporate supply risk management effort.