International Journal of Physical Distribution & Logistics Management

2017 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/IJPDLM-07-2017-357

McKinnon, Alan C.

2017 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/IJPDLM-02-2017-0097

PurposeIn a previous paper (McKinnon, 2013), the author questioned the principle and practice of journal ranking and discussed its effects on logistics research. Since then several important developments have occurred prompting a fresh review of the issues. The paper summarises the results of this review with the aim of stimulating further discussion on the subject.Design/methodology/approachNew literature on the journal ranking debate has been reviewed. The validity of the journal ranking as a proxy measure of paper quality is explored using data from the UK Research Excellence Framework (REF) assessment. Changes to the ranking of ten logistics/supply chain management (SCM) journals in four listings are analysed, and possible reasons for the relatively low status of the journals are examined.FindingsThe influence of journal rankings on the academic research process is strengthening while the debate about their legitimacy has intensified. UK REF data cast doubt on the reliability of the journal ranking as an indicator of a paper’s merit. Logistics/SCM journals continue to occupy mid-to-lower tier positions in most listings, though there has been some improvement in their standing.Research limitations/implicationsThe paper aims to alert those managing and undertaking logistics research to the dangers of overreliance on journal rankings in the measurement of research quality and productivity.Practical implicationsThe paper may help logistics/SCM scholars to defend the position of their discipline and resist journal-ranking-induced pressures to marginalise it and devalue its outputs.Social implicationsIn this paper, academic recruitment, promotion and motivation are considered.Originality/valueThe paper sheds new light on the relationship between journal ranking and individual paper quality, on recent changes in the rating of logistics/SCM journals and on the wider debate about the use of bibliometrics in assessing research quality.

Busse, Christian; Regelmann, Alexander; Chithambaram, Hariganesh; Wagner, Stephan M.

2017 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/IJPDLM-04-2015-0090

PurposeBecause of the major contribution of logistics to the greenhouse gas effect, logistics research has begun to address the topic of energy, but it has not yet targeted the role of energy within logistical decision-making processes. To facilitate such endeavors, the purpose of this paper is to explore the perceptions of energy which managers in logistics organizations portray.Design/methodology/approachThis investigation is based on interviews with 17 managers. The findings are embedded in the theory of planned behavior (TPB) and stakeholder theory (SHT).FindingsThe study depicts initial insights on which energy-related perceptions exist, how they can be categorized into attitudes, subjective norms, and perceived behavioral controls (PBCs), and how different stakeholders seem to affect them.Research limitations/implicationsThis research suggests a tentative comprehensive conceptual framework that describes the role of energy in logistical decision-making processes. The findings on attitudes and subjective norms appear to be unspecific to the logistics domain, whereas some of the PBCs are presumably unique to the logistics context. Future logistics research should hence focus its efforts on the PBCs. Generalizability and completeness of the managerial perceptions must be validated by future research.Practical implicationsThe findings help logistics organizations in scrutinizing managerial perspectives on energy and in developing awareness-raising measures.Originality/valueThe behavioral perspective applied in this study can complement extant, more technically oriented views. The conceptual framework that integrates the TPB and SHT may also be useful for organizational research beyond the logistics domain.

Marchet, Gino; Melacini, Marco; Perotti, Sara; Sassi, Chiara; Tappia, Elena

2017 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/IJPDLM-04-2016-0120

PurposeThe resources and mechanisms required to complete a value proposition are generally considered as crucial aspects in designing a company business model. However, research in the third party logistics (3PL) arena concerned with studying how 3PL providers define their value creation architecture to meet different shippers’ requirements has so far been inadequate. The purpose of this paper is to fill the gap, providing a detailed investigation on how the 3PL providers’ capabilities and logistics expertise can add value to their shippers’ processes.Design/methodology/approachA qualitative exploratory research was conducted involving, first, a systematic combining process to understand the main factors and operational strategies whereby 3PL providers can create value and build a comprehensive framework of their value creation architecture. Second, a qualitative survey was conducted on 44 leading 3PL providers operating in Italy to understand how these providers can organise themselves to create value for shippers.FindingsThe 3PL providers’ value creation architecture is presented within a clear and comprehensive framework, together with 30 potential operational strategies that can be used by 3PL providers and the related factors that enable value to be created for shippers. Three main value creation models (volume-oriented 3PL providers, process-oriented 3PL providers and innovation-oriented 3PL providers) are identified. The importance of the different factors enabling value creation is highlighted for each model, identifying the distinctive operational strategies and those adopted most frequently.Practical implicationsFrom a managerial perspective, 3PL providers will find these results useful for developing suitable strategies to compete on the market. From their side, shippers can understand and evaluate how 3PL providers are able to offer value to their logistics processes, allowing them to select the logistics partner who best fits their needs.Originality/valueThe present paper fulfils the identified need of examining the 3PL providers’ business model in detail. A set of distinct value creation models is identified and thoroughly investigated to reveal the different competitive advantages available to shippers.

Cho, Woohyun; Ke, Jian-yu Fisher; Han, Chaodong

2017 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/IJPDLM-01-2017-0015

PurposeLiterature indicates that global geographic diversification (GD) has mixed effects on a multinational corporation’s (MNC) performances. The purpose of this paper is to examine how an MNC’s GD influences its stock market and financial performances directly and indirectly via operational performance (i.e. changes in inventory levels).Design/methodology/approachUsing firm-level data collected from Compustat database for the period 2000-2011 and estimating a mediating regression model, the authors examine the direct and indirect effects of GD on an MNC’s stock market (Tobin’s q) and financial performances (ROA), with inventory level being a mediator. Additionally, the examination is implemented separately under two economic situations: financial crisis vs without financial crisis.FindingsThe results show that GD enhances an MNC’s stock market performance, while deteriorating its financial performance in the presence of a financial crisis. In contrast, GD has little direct impact on an MNC’s stock market and financial performances during periods without financial crisis. The indirect effects of GD are mediated by changes in inventory levels.Practical implicationsThis study suggests that MNCs need to carefully weigh the benefits and costs of global strategy obtained through GD. The results also indicate that GD is highly appreciated by the stock market investors during economic downturns and tighter inventory management may further enhance firm values.Originality/valueThis paper is the first empirical research to estimate both direct and indirect effects of GD via inventory in the operations management literature, highlighting the value of GD depending on the different economic situations and echoing the role of operations in implementing GD.

Hoberg, Kai; Protopappa-Sieke, Margarita; Steinker, Sebastian

2017 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/IJPDLM-05-2016-0142

PurposeThe purpose of this paper is to identify the interplay between a firm’s financial situation and its inventory ownership in a single-firm and a two-firm perspective.Design/methodology/approachThe analysis uses different secondary data sources to quantify the effect of both financial constraints and cost of capital on inventory holdings of public US firms. The authors first adopt a single-firm perspective and analyze whether financial constraints and cost of capital do generally affect the amount of inventory held. Next, the authors adopt a two-firm perspective and analyze the inventory ownership in customer-supplier relationships.FindingsInventory levels are affected by financial constraints and cost of capital. Results indicate that higher costs of capital are weakly associated with lower inventories. However, contrary to the authors’ expectations, firms that are less financially constrained hold less inventories than firms that are more financially constrained. Finally, the authors find that customers hold the larger fraction of supply chain inventory in supplier-customer dyads.Practical implicationsThe authors’ results indicate that financial considerations generally play a role in inventory management. However, inventory holdings seem to be influenced only slightly by financing costs and inventory holdings between supplier and customer seem to be less than optimal from a financial perspective. Considering those financial aspects can lead to relevant financial advantages.Originality/valueIn contrast to other recent research, the authors study how the financial situation of a firm affects its inventory levels (not vice versa) and also consider inventories from a two-firm perspective.

Chowdhury, Jaideep; Sarkar, Sourish

2017 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/IJPDLM-04-2016-0117

PurposeWhile store closure announcements frequently appear in newspapers, little is known about the financial impact of store closure decisions on the retailer’s market value. The purpose of this paper is to investigate the stock market reaction to the announcements of retail store closure decisions.Design/methodology/approachThe authors collect data from news articles on store closure announcements in the USA during 1995-2016. Using the four-factor model in an event study, the authors compute the abnormal stock returns for the retail firms due to these announcements.FindingsBased on the authors’ analysis for sample and matching control firms, the abnormal stock returns for store closure announcements are found to be positive overall. The authors find evidence that the positive effects of the announcements are stronger, particularly for the firms which have positive sales growth at the time of the announcements. The authors also report that industry competition acts as a negative moderator in the relationship between announcements and financial impacts.Practical implicationsThe authors’ analysis implies the investors’ positive sentiment of store closure announcements as a viable cost-cutting strategy, especially when it is done proactively by better performing retailers. The findings should be useful to the supply chain managers of retail industries in making store closure decisions.Originality/valueThis paper is believed to be the first to address the impact of retail store closure announcements on the stock market. The authors’ approach of categorizing the firms based on their sales growth seems to be the first in the event study literature on corporate restructuring.