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"Choi, Thomas Y."
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The nature of supply networks
\"Supply chains are networks. Supply chains are a simplification of what actually happens, and supply networks are much closer to what is real. When two companies engage in business as a buyer and a supplier, they form a buyer-supplier relationship. That is a dyad-two entities linked up in a relationship. Yet, triads are the smallest unit where we can begin to observe network dynamics. A common triad in supply networks is the buyer-supplier-supplier relationship. If we extend the supplier-supplier relationship horizontally, we get a supply base to a buying company. If we extend the buyer-supplier relationship vertically, we see an extended supply chain. If we combine the supply bases and extended supply chains, we end up with supply networks. Using the network concepts and theories, we study the structural and behavioral patterns of supply networks. Further, using the theoretical lens of complex adaptive systems, we examine the dynamic and evolutionary patterns of supply networks. By doing so, we consider how to help make supply networks become more resilient and robust\"-- Provided by publisher.
Book
Toward the Theory of the Supply Chain
As our discipline has matured, we have begun to develop theories of supply chain management. However, we submit that a major omission of theory development in the supply chain management discipline is that we have failed to develop a theory of what we are managing—a theory of the supply chain. Using a conceptual theory building approach, we introduce foundational premises about the structure and boundary of the supply chain, which can serve as the basis for much needed, additional development of the theory of the supply chain.
Journal Article
A Theory of the Nexus Supplier: A Critical Supplier From A Network Perspective
We introduce a new type of critical supplier—the nexus supplier—that becomes evident when we consider suppliers from a network perspective. The extant literature focuses on the importance of strategic suppliers and identifies strategic suppliers as critical due to their significant impact on a buying firm's profit and risk position. These strategic suppliers are considered one‐at‐a‐time and tend to be top‐tier suppliers. In contrast, a nexus supplier can come from anywhere in a multitier supply network and is critical due to its network position and the resultant portfolio of interorganizational ties. In this study, we offer a theory of the nexus supplier by integrating the supply management and social network literature. The theory is presented in the form of typologies, which articulate three ideal types of nexus suppliers and how they distinctively influence a focal buying firm's operational performance. We use real‐world examples to build our arguments. We discuss implications of the nexus supplier for both theory and practice.
Journal Article
TRIADS IN SUPPLY NETWORKS: THEORIZING BUYER-SUPPLIER-SUPPLIER RELATIONSHIPS
Past studies in supply chain management have focused on dyadic relationships (e.g., buyer–supplier), as all relationships in a network begin with a dyad. However, dyads do not capture the essence of a network. We posit in this paper that triads are the fundamental building blocks of a network. To begin considering triads in supply networks, we build on two extant bodies of literature — the buyer–supplier relationship and supplier–supplier relationship literature which offer us the context of buyer–supplier–supplier triads. By doing so, we are taking the first step toward cracking the internal dynamics of triads in supply networks. To build theoretical propositions, we apply balance theory and the structural‐hole concept. We identify nine triadic archetypes of buyer–supplier–supplier relationships and state key propositions that aid in decision making in supply networks.
Journal Article
Toward a Theory of Multi-Tier Supply Chain Management
Recent trends toward outsourcing and global sourcing have created longer, more complex and more fragmented supply chains. In this research, we aim to instigate a theoretical development of multi‐tier supply chain (MSC) management by adopting an inductive case study research design. Following a multiple case research design, we investigate three‐tier supply chains to develop a theory of MSC management. Each of the investigated supply chains consists of a buyer, supplier and supplier's supplier. Based on the case studies, propositions are built concerning how MSCs operate. As an underlying methodology, we first conduct a within‐case analysis and then expand that analysis to the cross‐case context. The results show the impact that the dynamics of the MSC have on power balance, structure, interdependence and relationship stability inherent in MSCs.
Journal Article
Supplier–supplier coopetition and supply chain disruption: first-tier supplier resilience in the tetradic context
PurposeThe present study considers disruption in the buyer–supplier–supplier triad. This triad has a common second-tier supplier as the disruption source, which gives us the tetradic context. The goal is to advance the knowledge on how a first-tier supplier's resilience against lower-tier disruptive events can be developed through horizontally connecting with the other first-tier supplier and how the buyer can benefit from its first-tier suppliers' resilience capability.Design/methodology/approachData from 33 triads was collected and analyzed.FindingsAs predicted, coopetition between two first-tier suppliers increases the first-tier supplier's capability to be resilient to disruptive events emanating from a lower tier source. However, contrary to initial theorization, the first-tier supplier's resilience capability affects the buyer's performance during disruptive events negatively. With increasing buyer–supplier social bonds, this negative relationship can partly be alleviated.Research limitations/implicationsAnalyzing resilience within a triad to a disruption in the tetradic context reveals unexpected dynamics. Individual supplier's resilience may have a negative impact on the buyer's resilience in certain disruption events.Practical implicationsThe buyer can increase collective suppliers' resilience through establishing horizontal links. To prevent becoming a victim of the supplier's resilience in the event of a second-tier disruption, a buyer needs to become a member of the supplier's relational network.Originality/valueWe propose that resilience can rest with the suppliers. This observation has implications for the buyer when selecting and coordinating suppliers. Further, it considers a context beyond a triad by venturing into the tetradic context. We anticipate more studies in tetrads in future and this study can serve as a bridge.
Journal Article
Deep, Sticky, Transient, and Gracious: An Expanded Buyer-Supplier Relationship Typology
The cooperative–adversarial dichotomy has served as the prevailing buyer–supplier relationship typology in the literature. Cooperative buyer–supplier relationships have been associated with closely tied relationships, while adversarial relationships have been equated to arms‐length relationships. We propose, however, that this perspective is overly simplified; a cooperative relationship is orthogonal to a closely tied relationship and an adversarial relationship to an arms‐length relationship. That is, there can be a closely tied yet adversarial relationship and an arms‐length yet cooperative relationship. We theorize the buyer–supplier relationship in two orthogonal aspects—(1) relational posture, that is, how two firms regard each other (as cooperative partners or as adversaries) and (2) relational intensity, that is, how much two firms’ operations are interlinked (closely tied or arms‐length). By considering the two aspects concurrently, this article proposes an expanded typology of buyer–supplier relationships. We label a closely tied and cooperative buyer–supplier type as “deep”; a closely tied but adversarial type as “sticky”; an arms‐length and adversarial type as “transient”; and an arms‐length but cooperative type as “gracious.” We then present an analysis that supports the orthogonality of the two relational dimensions. This analysis suggests that the expanded relationship types are associated with different relational outcome trade‐offs. The data are collected from a global, large Japanese automaker and 163 of its suppliers in North America. Overall, the results provide empirical support for the expanded buyer–supplier relationship typology.
Journal Article
Taming the Counterfeiting Epidemic
When companies do begin to quantify the level to which counterfeiters are affecting their bottom lines, they may attack the problem with piecemeal approaches to try to prevent it from growing. But that's not enough. Handfield et al's research suggests that successfully combating counterfeits requires the attention of a broad collection of organizational functions. It works best with a multilayered strategy encompassing diverse methods and engaging the entire organization and its partners. They recommend that organizations tackle counterfeiting with a cohesive plan for identifying, containing, and preventing it. This comprehensive process means routinely keeping tabs on contract manufacturers and charting how products move through the supply chain. It includes scoping out what is for sale in consumer markets, deploying covert markings, reviewing warranty claims, educating customers, and partnering with key agencies and competitors.
Journal Article
Triads in Services Outsourcing: Bridge, Bridge Decay and Bridge Transfer
Typically, a triad of actors is involved in any outsourcing situation: the buyer, the supplier and the buyer's customer. In manufacturing, the buyer acts as a bridge between its supplier and its customer and maintains this bridge position before, during and after the outsourcing. However, in services, the relationship structures among the three actors change before, during and after the outsourcing. Before outsourcing (i.e., during the contract negotiation stage), the buyer is the “bridge” between its supplier and its customer. During implementation, this bridge position begins to “decay” as its supplier comes in direct contact with the buyer's customer. Post‐implementation, the bridge position is intended to be “transferred” to the supplier. However, if left unmanaged, this state of transferred bridge position has serious performance implications for the buyer. The supplier is now the bridge and thus enjoys the leverage inherent in being a bridge. This point has been missed in many services outsourcing ventures by major multinational corporations. To mitigate this effect, we propose that the buyer should continue to actively interact with its customer and closely monitor the supplier in order to prevent the supplier from solidifying its bridge position.
Journal Article
Buyer-supplier embeddedness and patterns of innovation
Purpose
– The purpose of this paper is to describe different ways in which a buyer and supplier can be embedded in a dyadic relationship and how these differences influence patterns of inter-firm innovation activities and outcomes. Specifically, to address the relative paucity of theoretical work on how dyadic configurations influence parties’ joint innovation behavior, this study examines how different buyer-supplier embeddedness (BSE) configurations change the four choices that pertain to the levels of involvement buyers and suppliers exhibit in inter-firm innovation activities. These choices concern the processes buyers use to engage suppliers; the scope of efforts in each party; the locus of effects determining the beneficiaries; and the extent to which parties disclose private innovations within the relationship.
Design/methodology/approach
– Drawing on social embeddedness literature, the authors conceptualize dyad level, BSE in two dimensions: relational and structural. The relational dimension describes the quality of relationship, while the structural dimension describes the intensity of exchanges between the parties. Together these dimensions allow the authors to map the differences in BSE configurations and provide a basis for exploring their links to inter-firm innovation patterns.
Findings
– The authors demonstrate the configurational approach to the innovation patterns in inter-organizational setting. That is, the authors conclude that different configurations of BSE are likely to produce distinctive patterns of choices for inter-firm innovation activities.
Originality/value
– This study applies social embeddedness perspective to conceptualize dyadic BSE. Adoption of this concept allows dimensionalizing the dyadic relationships into two distinct dyadic elements, relational, and structural dimensions. Also, the concept has rich implications for how partner firms interact and share information. The dyad’s innovation potential and patterns are considered based on the configurations of dyadic embeddedness.
Journal Article