In: Forthcoming in Lu, G., Koufteros, X., In press. Adopting Security Practices for Transport Logistics: Institutional Effects and Performance Drivers. International Journal of Shipping and Transport Logistics.
ABSTRACTDespite the importance of supply chain security (SCS), there is significant variance regarding the level of deployment of SCS practices across firms and little is known about the efficacy of these practices. This study examines the role of external (coercive pressure) and internal (top management involvement) factors that potentially explain SCS practice deployment and its effect on SCS performance. It also examines the moderating role of organizational culture. In essence, this inquiry examines the role of external and internal forces in a context where organizational action is perhaps effectively mobilized only when both external and internal pressures are salient. Using data from 166 U.S. manufacturing firms, we found that the effects of coercive forces on SCS practice deployment are transmitted via top management involvement. In addition, the effect of top management involvement on SCS practice deployment is more salient for firms with high security‐oriented organizational culture, although a diminishing return was detected. SCS practice deployment was found to be strongly related to SCS performance. We discuss the theoretical contributions and managerial implications based on our findings.
PurposeSupply chain managers (SC managers) may make less than optimal decisions for the firm when facing compensation and employment risks. The purpose of this paper is to study two relevant factors (target setting and strategic importance of the supply chain function) that may drive SC managers to perceive more or less risk to their welfare.Design/methodology/approachThe study combines survey data from 133 firms with secondary data in order to reduce source bias and enhance the validity of results. The authors also conducted interviews with supply chain and human resources managers.FindingsThe results show that top managers can alter SC managers' perceived risks. Ambitious targets drive compensation risk but not employment risk. The supply chain function's strategic importance, on the other hand, decreases employment risk but increases compensation risk.Research limitations/implicationsThe authors emphasize two ways that the top management team (TMT) influences SC managers' perceived personal welfare but acknowledge that there may be others factors. Due to the topic sensitivity, the authors could not collect data on all variables (e.g. individual characteristics) that may affect risk perception. The findings are based on Spanish firms and may not be generalized to other contexts.Practical implicationsThis research proposes three suggestions. First, compensation and employment risks should be considered separately when designing compensation and evaluation systems. Second, appropriate performance targets may put compensation risk in a reasonable range that is neither too high to prevent risky-yet-beneficial decisions nor too low to allow nonfeasance. Third, escalating the supply chain's strategic importance effectively offsets employment risk.Originality/valueScholars have repeatedly shown the negative outcomes of SC managers' perceived compensation and employment risks. Yet, little attention has been given to their antecedents. The study explores two relevant antecedents and provides integrative empirical evidence regarding actions top leaders can take to manage SC managers' perceived risk and subsequently enhance firm performance.
In: Lu, G., Ding, X.D., Peng, D.X. and Chuang, H.H.C., 2018. Addressing endogeneity in operations management research: Recent developments, common problems, and directions for future research. Journal of Operations Management.
In: Villena, V.H., Lu, G., Gomez-Mejia, L., & Revilla, E. 2018. Is top management team-supply chain manager interaction the missing link? An analysis of risk-bearing antecedents for supply chain managers. International Journal of Operations and Production Management, 38(8): 1640–1663.
ABSTRACTWe examine the impact of three classes of Web site functions (foundational, customer‐centered, and value‐added) upon e‐retailer performance. Using secondary panel data for 2007–2009 on operating characteristics of over 600 e‐retailers, our econometric analysis finds that only the value‐added service functions are positively associated with changes in e‐retail sales revenues across time. We also observe a decreasing marginal impact of deploying additional value‐added service features. To account for possible alternate explanations, we control for firm‐ and time‐specific fixed effects, merchant types, merchandise categories, and order fulfillment strategies. By further decomposing e‐retail sales revenues into Web site traffic, conversion rate, and average order value, we find that Web site functions affect e‐retail sales revenues mainly through their impact on Web site traffic. Our investigation demonstrates the empirical research usefulness of the Voss conceptual e‐service sand cone model. Our results identify for managers where to focus ongoing e‐retailing system development efforts, yet suggest that focusing too many retailing capabilities on exploratory and experimental value‐added service features may backfire, potentially leading to worsening e‐retailer performance.