International Journal of Physical Distribution & Logistics Management

Kim, Yoon Hee; Sharma, Luv; Walker, Daniel M.

2024 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/ijpdlm-05-2023-0154

Extant research documents the cost benefits of group purchasing organizations (GPOs) to member hospitals, but understudies concerns about the market dominance of a few large GPOs and the relatively weakened buyer power of hospitals in the US healthcare product supply chain. To fill the gap in the literature, this study investigates whether GPO size and a hospital’s relative power to its GPO affect the hospital’s supply expenses, and whether and how system membership moderates the power–performance link.Design/methodology/approachFor this study, we collect the panel data from various secondary sources on GPO–hospital dyads, which include the seven largest GPOs and their 2,590 unique acute care hospital members in 51 states over the period of 2009–2017. To address the endogeneity issue associated with simultaneity, we establish a one-year time lag between dependent and independent variables and analyzed the 15,527 hospital-year observations using the time-series regression with fixed-effect.FindingsWe find that a hospital’s relative power to its GPO is the most critical factor to reduce its supply cost while GPO size has no effects. We also find that a nonsystem hospital achieves greater cost savings by leveraging its relative power to its GPO while a system hospital gains no benefits.Originality/valueTo the best of our knowledge, this study is the first to address the paradox of GPO size and a hospital’s relative power and the moderating role of system membership for the hospital’s purchasing efficiency using a large nation-wide dataset of US hospitals–GPO dyads.

Vlachos, Ilias; Zisimopoulos, Apostolos; Tsoulfas, Giannis T.

2024 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/ijpdlm-05-2023-0153

Franchising contributes significantly to national economies but is overlooked in supply chain literature. This study aims to contribute to the franchising and supply chain literature by examining how the digitisation of the franchising supply chain improves firm performance.Design/methodology/approachA single longitudinal case study approach was selected to investigate how a leading coffee brand digitised its franchising supply chain. Resource constraints theory and agency theory provide the theoretical framework. Data collection included both qualitative and quantitative data. Over two years, chronological, supply chain and thematic analyses and interpretation uncovered important findings and developed four research propositions.FindingsFindings show that digitisation can impact performance in eight areas: Resource management, Resource constraints, Efficiency, Business-to-Business (B2B)/Business-To-Customer (B2C) links, Rapid expansion, Risk mitigation, Information asymmetries and Faster supply chain responses. Four digital technologies (advanced analytics, Internet of Things, Autonomous Mobile Robots and B2B e-shop) impacted three franchisor functions (Machine maintenance, Inventory management, Franchisee and end-customer relations). The study develops four research propositions on how digitisation impacts performance in terms of (1) resource monitoring and control, (2) learning and knowledge creation, (3) coordination and collaboration and (4) competition.Originality/valueFranchising supply chains have been overlooked in the literature; this study provides insights into using resource constraints theory and agency theory complementarily to explain supply chain digitisation and provides actionable practical implications for selecting, implementing and continuously improving Industry 4.0 technologies in franchising supply chains.

Ta, Ha; Kumar, Pritosh; Hofer, Adriana Rossiter; Jin, Yao “Henry”

2024 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/ijpdlm-02-2024-0090

Supply chain (SC) professionals are increasingly working alongside business partners of diverse backgrounds, which has been argued to engender both innovation and creativity but also found as potentially detrimental to SC relationships and performance. To reconcile these views, this study explores two mechanisms – supplementary (similarity) and complementary fits – at the surface (observable traits) and deep (unobservable characteristics) levels and their impact on a focal firm representative’s perception of a SC partner’s trustworthiness.Design/methodology/approachModel was tested using survey data from 285 managers involved in interorganizational SC relationships.FindingsResults indicate that a focal firm representative’s perception of supplementary and complementary fits with a SC partner positively impacts their perception of the partner’s trustworthiness. However, the effects of similarity at both surface and deep levels and complementarity weaken each other.Practical implicationsUnderstanding the mechanisms of diversity in SC relationships is crucial for fostering trustworthiness and achieving organizational objectives. Firms should evaluate both supplementary and complementary fits when hiring or assigning roles. Embracing a complementary fit not only promotes diversity but also mitigates the negative impact of similarity bias, ultimately strengthening trustworthiness within the organization's SC ecosystem.Originality/valueBy simultaneously examining individual and combined effects of two unique mechanisms of supplementarity and complementarity at the surface and deep levels, this study sheds light on inconsistent findings of the effects of diversity in the SCM literature.

Shi, Haiqing; Feng, Taiwen

2024 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/ijpdlm-05-2023-0179

This study aims to distinguish how unabsorbed and absorbed slack affects market and financial performance via proactive and reactive supply chain resilience (SCRES), particularly under varying conditions of organizational ambidexterity.Design/methodology/approachBy collecting survey data from 277 Chinese manufacturers, we verify the conceptual model applying structural equation modeling.FindingsProactive SCRES mediates the positive impacts of both unabsorbed and absorbed slack on market and financial performance, whereas reactive SCRES mediates only their positive effects on financial performance. High levels of organizational ambidexterity strengthen the indirect effects of both types of slack on market and financial performance via proactive SCRES, but not when mediated by reactive SCRES.Originality/valueWe introduce a new theoretical perspective to view fits (as mediation) between the use of unabsorbed/absorbed slack in different ways when switching attentions to proactive or reactive SCRES, both of which can be improved through organizational ambidexterity. This study offers novel insights into how managers can switch attentions between proactive and reactive SCRES knowing when to appropriately use unabsorbed/absorbed slack for which purposes, and the use of different learning modes (explorative vs exploitative).

Xu, Jiawei; Zhang, Baofeng; Lu, Jianjun; Yu, Yubing; Chen, Haidong; Zhou, Jie

2024 International Journal of Physical Distribution & Logistics Management

doi: 10.1108/ijpdlm-01-2024-0038

The importance of the agri-food supply chain in both food production and distribution has made the issue of its development a critical concern. Based on configuration theory and congruence theory, this research investigates the complex impact of supply chain concentration on financial growth in agri-food supply chains.Design/methodology/approachThe cluster analysis and response surface methodology are employed to analyse the data collected from 207 Chinese agri-food companies from 2010 to 2022.FindingsThe results indicate that different combination patterns of supply chain concentration can lead to different levels of financial growth. We discover that congruent supplier and customer concentration is beneficial for companies’ financial growth. This impact is more pronounced when the company is in the agricultural production stage of agri-food supply chains. Post-hoc analysis indicates that there exists an inverted U-shaped relationship between the overall levels of supply chain concentration and financial growth.Practical implicationsOur research uncovers the complex interplay between supply chain base and financial outcomes, thereby revealing significant ramifications for agri-food supply chain managers to optimise their strategies for exceptional financial growth.Originality/valueThis study proposes a combined approach of cluster analysis and response surface analysis for analysing configuration issues in supply chain management.