OPERATIONS MANAGEMENT

Conference Paper Abstracts

A BIBLIOMETRIC COMPARISON OF EUROPEAN AND
AMERICAN OPERATIONS MANAGEMENT RESEARCH
AGENDAS
Cui, Sibo; Durham Business School; westlandmark@hotmail.com
Tsinopoulos, Christos; Durham Business School;
chris.tsinopoulos@durham.ac.uk
We use bibliometric analysis to explore the differences between the operations management
research agendas of North America and Europe in the past 20 years. We divide 320 highly cited
academic papers, into eight sub-groups according to the location of their authors and the year of
their publications and compare them by conducting citation/co-citation network analysis on their
references. Over the period we examined we identified systematic differences in the research
agendas between the two continents. North American operations management papers are cited
more times than those of Europe. Also, North America presented more structured and closed
research agendas and referencing structures than that of Europe. However, during the later years
these differences have reduced. We offer four possible explanations for these differences. The
first relates to the methodological differences traditionally applied by the continents. North
American researchers have applied quantitative techniques more frequently than their European
counterparts. The second relates to the sociological, geographic and linguistic difference between
the two continents. Third is the referencing pattern between the two groups, with the North
American one being more systematic. The final relates to the institutional differences between the
two groups. At the end of the paper we discuss the implications, limitations, and future research
directions.
Keywords:bibliometric analsysis, operations management

A MULTILEVEL INVESTIGATION OF STRUCTURAL

AMBIDEXTERITY IN HIGH TECHNOLOGY
ORGANIZATIONS
Chandrasekaran, Aravind; The Ohio State U.; chandrasekaran.24@osu.edu
Linderman, Kevin; Carlson School of Management;
klinderman@csom.umn.edu
Schroeder, Roger; U. of Minnesota; rschroed@umn.edu
Structural ambidexterity involves creating distinct organizational architectures in the form of
physical spaces, incentives, business models and metrics that allows both exploration and
exploitation to occur simultaneously. Although scholars have developed theoretical arguments
about structural ambidexterity, few have empirically investigated this capability. Furthermore,
these theories need to be refined to the high technology context where exploration and
exploitation frequently coexist. This research addresses these limitations. The study examines
structural ambidexterity as a multilevel capability consisting of a macro organizational context
(e.g., organizational processes, organizational structures and organizational metrics) and micro
organizational context (e.g., team leadership, team incentives and project team structures). The
analysis investigates the effects of both macro and micro organizational context on exploration

and exploitation projects. The data comes from 34 high technology business units involving 110
exploration and exploitation projects. Results indicate that exploitation projects benefit from both
the macro organizational context and certain micro organizational context designs (project team
leadership and project team incentives). But, exploration projects mainly depend on the micro
organizational context and are negatively influenced by the macro context. Post hoc analysis also
reveals a third type of project Hybrid projects these projects have both exploration and
exploitation goals. This study offers new insight to the concept of structural ambidexterity, and its
influence on high technology organizations.
Keywords:exploration, exploitation, multilevel empirical research, high technology
operations

A RELATIONAL GOVERNANCE VIEW OF INTER-FIRM

KNOWLEDGE SHARING: ANTECEDENTS AND
CONSEQUENCES
Squire, Brian C; U. of Manchester; mnpbcs@bath.ac.uk
Petersen, Kenneth J; Colorado State U.; Kenneth.Petersen@Colostate.Edu
Cousins, Paul D.; U. of Manchester; paul.cousins@mbs.ac.uk
Lawson, Benn; U. of Cambridge; b.lawson@jbs.cam.ac.uk
Sharing knowledge between buyer and suppliers is increasingly central to effective supply chains.
Organizations differ widely in their capability to share and transfer knowledge across
organizational boundaries, and as such, the examination of antecedents and consequences is
important. This study, embedded within the theory of relational governance, develops a
conceptual framework that examines the direct effects of asset specificity and trust on inter-firm
knowledge sharing, as well as the moderating effects of contract length and relationship duration.
Further, we consider the performance implications of knowledge sharing on buyer
responsiveness and flexibility from a theoretical and practical perspective. Using structural
equation modeling, we test our model on a sample of 104 UK manufacturing firms. Results
provide broad support for our model. Managerial implications and directions for future research
are proposed.
Keywords:Supply Chain, Knowledge Sharing, Governance

A RESEARCH FRAMEWORK FOR COMPLEMENTARY

USE OF PARTIAL LEAST SQUARES IN STRUCTURAL
EQUATION MODELING
Zhang, Weiyong; Virginia Commonwealth U.; wzhang@vcu.edu
Huang, Xiaowen; Miami U. Ohio; huangx@muohio.edu
Hill, Arthur V; U. of Minnesota; ahill@umn.edu
Structural equation modeling (SEM) is a popular research method in business research. To date,
operations management researchers have only used the covariance-based estimation (CBE)
technique in SEM studies. However, partial least squares (PLS) is a better alternative technique
under certain circumstances, for example, when assumptions for CBE are not met. In this paper
we propose a research framework for the complementary use of PLS in SEM studies. We first
highlight the advantages of PLS to operations management research through a comparison of
PLS and CBE. Then we identify four research design factors to classify different types of SEM

studies. Next we provide guidelines for the appropriate design and execution of each type of
studies so that methodological rigor can be maintained. Finally and most importantly, we present
a research roadmap for the complementary use of PLS and CBE in SEM studies. The
contribution of our work is discussed.
Keywords:partial least squares, covariance-based estimation, structural equation
modeling

A STUDY INTO THE ECONOMIC EFFECTIVENESS OF

LEAD USERS AND PRODUCT EXPERTS
Al-Zubi, Zu'bi Mohammad; U. of Jordan; zoz55jo@yahoo.com
Tsinopoulos, Christos; Durham Business School;
chris.tsinopoulos@durham.ac.uk
This study investigates the relative economic effectiveness of two important new product
developers; product experts and lead users. These two partners are studied with relation to their
effect on the product development cost. Product experts have traditionally received greatest
attention in the literature with respect to their role in new product development, with a largely
positive view of their involvement. However, since the introduction of the concept of lead users,
this perception has not been challenged. This paper, through analysis of survey data collected
from 421 European manufacturers, reveals a strong favourable impact of lead users on new
product development cost. The study reveals that product experts had a relatively weak impact
on reduction of new product development cost, indicating lead users' significant higher favourable
impact on new product development than product experts. These results bear immense
theoretical and practical implications for both academia and practice.
Keywords:lead users, product development, product experts

A SUPPLIERS PERSPECTIVE ON THE EXERCISE OF

HARD/COERCIVE INFLUENCE IN INTER-FIRM
RELATIONSHIPS
Bignoux, Stephane J; Middlesex U.; stephanebignoux@optusnet.com.au
Gray, David; Macquarie U.; dgray@efs.mq.edu.au
This paper adopts an exploratory approach drawing on the influence tactics/strategies developed
by Kipnis, Schmidt and Wilkinson (1980) to investigate the exercise of hard/coercive influence
tactics as used by low power suppliers in buyer-supplier partnerships versus preferred supplier
agreements. Contrary to the findings of prior studies, the findings of this study show that low
power suppliers successfully exercise influence via hard/coercive influence tactics/strategies. Low
power suppliers in buyer-supplier partnerships exercise influence via pressure, exchange,
coalitions and upward appeals, while low power suppliers in preferred supplier agreements
successfully use exchange, coalitions and upward appeals.
Keywords:Suppliers, Influence, Partnerships

ALIGNING ENVIRONMENTAL DYNAMISM, PURCHASING

STRATEGY FORMULATION, IMPLEMENTATION, AND

PERFORMANCE
Nair, Anand; U. of South Carolina; nair@moore.sc.edu
Jayaram, Jayanth; U. of South Carolina; jayaram@moore.sc.edu
Das, Ajay; Baruch College, CUNY, NY, NY; ajay_das@baruch.cuny.edu
This study investigates the alignment between environmental uncertainty, purchasing strategy
formulation, purchasing strategy implementation and purchasing performance. By drawing similar
parallels from the strategic management literature that have investigated environment-strategyperformance linkages, this research makes a unique contribution to the literature by examining
these relationships at a finer grain functional level of purchasing. The paper posits that coping
with environmental uncertainty involves purchasing strategy formulation, which in turn influences
purchasing strategy implementation via supplier selection and monitoring ongoing supplier
performance evaluation on those criteria. A combination of choosing appropriate supplier
selection criteria and monitoring supplier performance ensures that the benefits of alignment of
purchasing strategy with environment translate into better purchasing performance. The
hypotheses are tested using survey data by means of structural equation modeling. The results
provide support for the tenet that purchasings strategy alignment enhances the purchasing taskperformance relationships; however these relationships varied according to the type of
purchasing performance. The pathways of these relationships affecting the strategic or
operational tasks were not uniform and had a differential effect on different types of purchasing
performance. The paper discusses the theoretical and managerial implications of the findings and
proposes directions for further research.
Keywords:Purchasing Strategy, Environmental Dynamism, Purchasing Performance

AN EMPIRICAL STUDY OF THE RESPONSE CAPACITY OF

COMPLEX PROJECTS
Floricel, Serghei; U. du Qubec Montreal; floricel.serghei@uqam.ca
Banik, Marc; ESG-UQAM; banik.marc@uqam.ca
Piperca, Sorin Eugen; U. of Quebec in Montreal;
piperca.sorin_eugen@courrier.uqam.ca
This paper develops an integrative theory of the conditions that enable complex projects to react
to unexpected events that happen in the later stages of their life cycle. The concept of response
capacity assumes that the organizational structure which emerges during project execution
includes some aspects that planners overlook, others that are more complex than expected, as
well as some relations and routines of which participants have only marginal awareness. Because
of these differences, emerging structures shape the reaction to unexpected events in ways that
deviate from the anticipations included in the plan. The theoretical framework identifies the key
aspects of planning that influence the emerging structure, and highlights the properties of this
structure, namely the cohesion, flexibility and resourcefulness which form it response capacity
and condition the reaction to unexpected events. The paper discusses six case studies of
complex projects from three different domains and makes three specific contributions to our
understanding of these processes. First, it advances theory by scrutinizing the relevance of
postulated processes, properties and variables. Second, it identifies typical patterns of relations
between these factors, and compares them with theoretically anticipated influences. Third, it
suggests tentative explanations of these patterns in terms of invariant influence trajectories that
tie together context, planning, structures, events, reactions and performance. These contributions

not only advance the response capacity theory and help derive practical implications from it, but
also provide useful insights for the organizational structuration and dynamic capabilities theories.
Keywords:Project, Flexibility, Event

ARCHETYPES OF PROJECT MANAGEMENT PRACTICE;A

CLUSTER ANALYSIS FROM EMPIRICALLY IDENTIFIED
TOOLSETS
Besner, Claude; U. du Qubec Montreal; besner.claude@uqam.ca
Hobbs, Brian; U. du Qubec Montreal; Hobbs.Brian@uqam.edu
The interdisciplinary field of project management has its source in the assumption that project
management is practiced in similar ways in many industries. The specificity of project
management in different contexts is recognized, but an empirical contingent approach is long
overdue. This paper is based on an empirical investigation of project management practice.
Clusters of experienced practitioners are identified from their levels of use of empirically identified
toolsets. Practice is investigated through the study of the extent of use of a large number of
practices, tools and techniques specific to project management. A sub-sample of 1,296
practitioners from widely diverse backgrounds participating to a large scale international survey is
used for this paper. Contextualized project management practice archetypes are identified;
original models of practice after which other similarly contextualised practices are patterned. The
results empirically confirm some well-known assumptions about practices, but also sharpen the
knowledge and understanding of practice in real complex multidimensional contexts by
presenting specific patterns of practice for each cluster. The interplay of maturity, innovation,
project definition and success or the combination of external, private engineering matrix
organisation, together with their associated patterns of practice constitute examples of
contextualised archetypes of practice that provide rich but complex specimens of real practice.
The archetypes are therefore potentially useful as a tool to understand, to reflect upon or to teach
project management.
Keywords:project management, practice, cluster

ASSESSING SUPPLIER DEFAULT RISK ON THE

PORTFOLIO LEVEL: A METHOD AND APPLICATION
Wagner, Stephan M.; Swiss Federal Institute of Technology Zurich, ETH;
stwagner@ethz.ch
Bode, Christoph; Swiss Federal Institute of Technology Zurich, ETH;
cbode@ethz.ch
The main purpose of this paper is to quantify the risk in a buying firms supplier portfolio that
stems from the financial default of suppliers. Based on credit risk models we develop a
methodology that buying firms can use to determine their exposure to supplier default risk.
Empirical data pertaining to supplier portfolios of upper-class car models from three German
automotive manufacturers is used to illustrate the application of the methodology. We show that
some car models are exposed to higher risk. This places them at a disadvantage, because the
higher the supplier default risk, the more likely it is that the supply of components can be
disrupted and cars cannot be built and sold. Buying firms can use this methodology for the proactive assessment of supplier default risk.

Keywords:Supplier default risk, Supplier portfolios, Credit risk models

BRIDGING THE BARRIERS TO SUPPLY CHAIN

COLLABORATION: AN INTEGRATIVE THEORETIC
MODEL
Fawcett, Stanley E.; Brigham Young U.; stan_fawcett@byu.edu
Fawcett, Amydee M.; Brigham Young U.; dfawcett@gmail.com
Magnan, Gregory M.; Seattle U.; gmagnan@seattleu.edu
Watson, Bradlee J.; Arlington Hills Care and Rehabilitation;
bwatson@ensigngroup.net

Supply chain collaboration is a complex phenomenon. Grasping the nuances involved in

developing a dynamic collaborative capability requires that managers explore the processes that
promote or hinder collaboration from a variety of theoretical lenses. To this end, we develop an
integrative theoretical model that explicates the rational for SC collaboration as well as why firms
find overcoming resistant barriers so challenging. Propositions related to critical aspects of the
collaboration process are identified and evaluated through an extensive, rigorous case study
methodology.
Keywords:Relational View, Force Field Analysis, Supply Chain Collaboration

BUYER-SUPPLIER PARTNERSHIP QUALITY AND

PERFORMANCE: ROLE OF RISKS, AND
ENVIRONMENTAL UNCERTAINTY
Srinivasan, Mahesh; The U. of Akron; maheshs@uakron.edu
Mukherjee, Debmalya; U. of Akron; dmukher@uakron.edu
Gaur, Ajai S; Rutgers U.; ajai@business.rutgers.edu
In this study we examine the relationship between buyer-supplier partnership quality, supply
chain performance, and firm performance in the presence of supply and demand side risks and
environmental uncertainty. Based on the theoretical underpinnings of resource-based view and
social exchange theory, we propose that partnership quality will have a positive relationship with
supply chain performance and that this relationship will be strengthened in the presence of
demand and supply side risks. Further, we hypothesize a negative effect of environmental
uncertainty on the partnership quality-supply chain performance relationship. Empirical evidence,
based on the survey data of 127 supply chain executives supports a majority of our arguments,
except the moderating effect of supply side risks. We discuss theoretical and practical
ramifications of these findings and offer future avenues of research.
Keywords:Supply chain, performance, partnership

CANNOT MAKE DO WITHOUT YOU: OUTSOURCING IN

KNOWLEDGE-INTENSIVE NEW FIRMS AND SUPPLIER
NETWORKS

Bhalla, Ajay; Cass Business School, City U.; a.bhalla@city.ac.uk

Terjesen, Siri Ann; Indiana U., Bloomington; terjesen@indiana.edu
How do new ventures operating in dynamic environments organize their operations? This
research utilizes TCT and RBV theories to explore outsourcing decisions, processes and
experiences of new biotechnology firms. Case studies of ten start-ups and twenty of their
suppliers provide evidence and rationale for outsourcing a variety of value chain activities. Our
findings show that new firms outsourcing to highly-embedded suppliers are likely to secure
access to a wider supplier network at favorable terms, attain best-in-class operational knowledge,
avoid supplier opportunism but face low levels of relationship-specific investments unless they
have suppliers with a vested interest. Firms outsourcing to suppliers at the network periphery are
more likely to realize cost efficiencies, expose themselves to opportunism, uncertainty and higher
levels of relationship-specific investments but low levels of operational know-how specific to the
new firms operation. New firms with technical, evaluation, relational, entrepreneurial and
integration competencies are more likely to benefit from outsourcing in networks. We point out
that new firms develop contractual and operating safeguards to protect themselves from supplier
opportunism. We conclude by discussion implications for theory and offering suggestions for
future research and guidelines for managing multiple outsourcing relationships.
Keywords:Start-ups, supplier networks, outsourcing

CONCURRENT ENGINEERING, KNOWLEDGE

MANAGEMENT AND PRODUCT INNOVATION: A
RELATIONAL PERSPECTIVE
Deshpande, Anant Ravindra; SUNY Empire State College;
Anant.Deshpande@esc.edu
Concurrent engineering practices have been known to offer a competitive advantage to an
organization in terms of product innovation. Despite this fact, evidence has shown that
organizations seldom achieve the advantages offered by concurrent engineering practices. This
may be attributed to the fact that current researchers have not comprehensively answered key
questions such as what constitutes the dimensions of concurrent engineering practices. In
addition, despite the fact that NPD projects are knowledge intensive, the role of knowledge
management in a concurrent engineering context has not been adequately explored.
Furthermore, simultaneous consideration of linkages between dimensions of concurrent
engineering, knowledge management and their impact on product innovation has not been
empirically tested. To this end, hypotheses testing were carried out to test these relationships.
Empirical testing of the hypotheses was carried out by collecting data from pharmaceutical firms
operating in India. The findings of the study provide ample evidence that social dimensions along
with technical dimensions of CE play an important role in enhancing favorable outcomes such as
effective knowledge management and product innovation. The implications of the findings for
academicians and practitioners are discussed and directions for further research are discussed.
Keywords:None

CONTEXT-DEPENDENCY OF PURCHASING AND

SUPPLY MANAGEMENT: AN EMPIRICAL
INSTITUTIONAL THEORY APPROACH

Kerkfeld, Dieter; European Business School, Wiesbaden;

dieter.kerkfeld@myebs.de
Hartmann, Evi; Friedrich-Alexander-U. of Erlangen-Nuremberg;
evi.hartmann@scs.fraunhofer.de
Within the operations management literature a strong body of knowledge exists about the
contribution of purchasing and supply management (PSM) to performance but little attention has
been given to the potential influence of contextual factors on purchasing maturity and its
relationship on performance. This study is rooted in institutional theory to formulate a number of
propositions about contextual factors. First, we develop and empirically test a structural equation
modeling (SEM) model of the influence of purchasing maturity to both operational performances
and to business profitability. Purchasing maturity comprises four strategic PSM practices, supplier
management, performance management, talent management, and cross-functional integration.
The operational performances measure PSMs contribution to cost reductions, quality
improvements, and innovation. Second, we analyze the influence of three contextual factors
industry sector, degree of centralization, and reporting level of the chief purchasing officer (CPO)
on the implemented level of purchasing maturity and its relationship on performance. This study
combines multiple data sources, from telephone interviews, questionnaires, and objective
financial data collected from a global, cross-industry sample of 306 major companies. Our results
confirm that a sophisticated purchasing maturity has a positive impact on operational
performance as well as an indirect positive effect on business profitability. Furthermore, the
results indicate that both the implementation of purchasing maturity and its relationship on
performance are to some degree context-dependent. This study provides CPOs with insights on
how to improve and audit PSMs contribution towards performance, which is increasingly
important during the current economic crisis.
Keywords:Purchasing Maturity, Institutional Theory, Context-dependency

CUSTOMER ATTRACTIVENESS IN THE SUPPLY CHAIN

AND ITS IMPACT ON COLLABORATIVE INNOVATION
Schiele, Holger; U. of Twente; h.schiele@utwente.nl
One of the most striking trends in the last decade was the switch to an open innovation model.
New product development takes place in joint buyer-supplier projects, which requires closer ties
between the partners. One issue arising out of this collaborative model is that the dependency of
the buyer on the supplier tends to increase. Multiple cases of supplier obstructionism have been
reported. To mitigate this dilemma, this paper analyses the relevance of customer attractiveness
as an enabler for collaboration. Testing this hypothesis on a sample of buyer-supplier
relationships, we show that not dependency as such is the problem with close ties, but only the
coincidence of low customer attractiveness and dependency from a supplier. Buyers who are a
preferred customer of their suppliers can accept the risk of being dependent upon them. The
managerial implication of this finding is to ask firms to reverse their marketing approach, and thus
not only try to become the preferred supplier of their important customers, but also to become the
preferred customer of their important suppliers. From a conceptual point-of-view our findings
indicate the need to consider dependency not as an isolated variable, but in connection with
attractiveness.
Keywords:Preferred customer, purchasing, innovation

CUSTOMER PERCEPTIONS OF WAITING AT THE

CHECKOUT: IMPLICATIONS FOR SERVICE MANAGERS

Van Riel, Allard C.R.; Radboud U. Nijmegen; a.vanriel@fm.ru.nl
Semeijn, Janjaap; Open U.; jjs@ou.nl
Ribbink, Dina; U. of Western Ontario; dribbink@ivey.uwo.ca
In retailing, customer satisfaction is associated with a global evaluation of the store, including
store image. Waiting for service, not a store image dimension, plays an important role in the retail
experience. We investigate how waiting at the checkout influences overall satisfaction. We
address the issue combining service operations management and marketing literature and test
our theory with real-world data. We use Partial Least Squares regression in the analysis. We
conclude that wait satisfaction significantly affects overall satisfaction, complementing store
image effects. Customers waiting experiences are influenced by various controllable factors.
Intelligently managing these factors can reduce negative impacts on customer satisfaction.
Keywords:Service Operations, Wait Satisfaction, Field Study

DESIGNING SERVICE ARCHITECTURE: EXPLOITATION

AND EXPLORATION WITH OPERATIONAL CAPABILITIES
Coltman, Tim; U. of Wollongong; tcoltman@uow.edu.au
Richard, Pierre Jules; U. of Wollongong; pierrer@uow.edu.au
Keating, Byron W; U. of Canberra; byron.keating@canberra.edu.au
Devinney, Timothy Michael; U. of Technology, Sydney;
Timothy.Devinney@uts.edu.au
Responding successfully to a service tender requires the design of an organizational architecture
that effectively delivers the desired service. This "service architecture" can involve the improved
exploitation of existing operational capabilities or the development of new ones. Yet, little
empirical research has directly examined the service design choices that managers make when
faced with competing tensions to explore and exploit. We investigate the role of managers as the
conductors and orchestrators of the operational capabilities underlying exploitation and
exploration. Using an experimental approach we provide novel insights into the architectural
process of managing exploration/exploitation tensions across diverse customers.
Keywords:Organizational Architecture, Capabilities, Discrete Choice Analysis

DOES STOCKHOLDER ORIENTATION IMPACT OF

SUPPLIERS AND BUYERS RELATIONSHIP: EVIDENCE
FROM CHINA
Song, Hua; Renmin U. of China; songhua69@263.net
Zhao, Xiande; Chinese U. of Hong Kong; xiande@baf.msmail.cuhk.edu.hk
Wang, lan; Renmin U. of China; im2003ann@hotmail.com
Establishing closer formal and informal relationship between suppliers and buyers is increasingly
cited as a critical differentiator of high and low performers in supply chains. However, the
interaction effects that result from combinations of stakeholder orientation and supplier-customer
relationship have been overlooked. By using moderating model, our research show that
government and community orientations have synergy effect on formal relationship between

supplier and customer, meanwhile community orientation has slacking effect on informal
relationship and government orientation has no significant weakening impact on informal
relationship between suppliers and buyers.
Keywords:stakeholder orientation, formal and informal interaction, suppliers and buyers
relationship

E-SERVICE RECOVERY: A SCENARIO STUDY

Wang, Daisy; Minot State U.; daisy.wang@minotstateu.edu
Lin, Jasmin C; Robert Morris U.; lin@rmu.edu
The growth of Business-to-customer (B2C) electronic commerce unraveled tremendous
opportunities for service providers. Along with this opportunity comes the challenge of identifying
and rectifying service failures. Despite this growing interest on electronic service research, the
empirical evidence in the literature is still evolving. The purpose of this study is to empirically
examine the effect of the speed and magnitude of online service recovery activities on customer
satisfaction, loyalty and positive Word-of-Mouth (WOM) in a B2C context. The results of our study
strongly support a positive impact of the speed and magnitude of online service recovery on postrecovery customer behaviors. Research and practical implications are discussed.
Keywords:Service Recovery, Service failures, E-service Recovery

FACTOR-MARKET RIVALRY AND COMPETITION FOR

LOGISTICS RESOURCES
Tate, Wendy Lea; U. of Tennessee, Knoxville; wendy.tate@utk.edu
Ellram, Lisa Marie; Miami U.; ellramlm@muohio.edu
Feitzinger, Edward G; End-to-End Analytics; ed@e2analytics.com
In recent years there have been shortages in a variety of resources required to effectively support
offshore outsourcing and offshoring that have caught many firms and individuals by surprise. This
includes shortages of skilled labor, shortages of factory workers, and shortages of logistics
capacity. These shortages however are driven by competition from diverse companies from
unrelated industries creating unanticipated conditions of scarcity for inputs that are generally
considered non-strategic. Firms tend to monitor activities and markets for strategic inputs, or
inputs that directly contribute to the firms unique advantage. However, these firms largely ignore
the more non-strategic inputs. The purpose of this research is to examine competition among
diverse and unexpected industries in factor-markets using the example of logistics services and
the lens of factor-market rivalry theory. Factor-markets are defined as markets where firms buy
inputs that are used in the creation or distribution of products or services. Analysis of secondary
data relative to air cargo capacity in China, port capacity in South Vietnam, and the U.S. port and
rail, shows that logistics and transportation services are subject to factor-market rivalry. As
organizations become aware of growing competition and demand for resources in geographical
regions in which they operate, they should assess the impact on logistics resources, and develop
a plan for addressing potential resource constraints thereby improving cost and on-time delivery
performance.
Keywords:Factor Market Rivalry, Logistics, Strategy

FLEXIBILITY VS. EFFICIENCY: A THEORETICAL AND

EMPIRICAL EXAMINATION OF THE ROLE OF
INDIVIDUALS
Salvador, Fabrizio; Instituto de Empresa Business School;
fabrizio.salvador@ie.edu
Akpinar, Anil; Instituto de Empresa Business School;
aakpinar.phd2010@alumno.ie.edu
Research in operations strategy has extensively investigated how organizations can
simultaneously be efficient and flexible, however it largely neglected the role of workforce in
achieving so. We address this gap by means of a double field study that examines the processes
through which an organizations workforce contributes to reconciling efficiency with flexibility. We
find that people contribute to reducing the efficiency-flexibility trade-off by supporting three tasks
that cannot be fully codified a-priori, which we label as prospecting, blueprinting and patching
tasks. We also find that the abilities supporting the execution of these tasks have to be evenly
distributed across production and logistics, marketing and sales, and R&D functions.
Keywords:Flexibility, Efficiency, Human Resources Management

IDENTIFYING SCM CONCEPTS AND STAKEHOLDER

DISCOURSE IN GM CORPORATE BLOG
Bohorquez Lopez, Victor Wilfredo; IE Business School;
vwbohorquez.phd2011@alumno.ie.edu
Diaz, Angel; Instituto de Empresa Business School; angel.diaz@ie.edu
Esteves, Jose; IE Business School; jose.esteves@ie.edu
Little academic attention has been given to the phenomena of corporate blogs and their contents,
from a Supply Chain Management (SCM) perspective. Based on posts and comments found in
General Motors (GM) corporate blog, we have in this paper used content analysis to extract
specific SCM concepts (analyzing posts), as well as to obtain their related stakeholders
(analyzing comments). We have used correspondence analysis to identify relationships among
them and discover in which topics are specific stakeholders more interested, information that can
be used to improve relations with specific stakeholders, and to identify products/services more
adequate for each collective. Findings show evidence that certain stakeholders are more focused
on specific SCM concepts, and that suppliers and dealers are close to workers and employees.
This can be explained in terms of power asymmetries, as an organization that supplies a single
product to a single customer is likely to be in a subordinate position. The strategy of Fritz
Henderson, President and CEO of GM, of moving his company to where the main competitors
are right now is coherent with the findings of this article, and could be a solution to recover past
glories in GM.
Keywords:GM, SCM, stakeholder theory

INSTITUTIONAL PERSPECTIVE ON THE DRIVERS FOR

PERFORMANCE MEASUREMENT IN THE HEALTH CARE
SUPPLY CHAIN

ONeill, Peter Joseph; Monash U.; pjm.oneill@gmail.com

Bhakoo, Vikram; U. of Melbourne; vbhakoo@unimelb.edu.au
The purpose of this paper is to study the key institutional drivers for performance measures within
the pharmaceutical supply chain of public hospitals. In its theory building endeavor, a panel of
eleven longitudinal case studies were conducted with entities across the supply chain. This paper
builds on an institutional theoretic lens by delineating and identifying coercive, normative and
mimetic pressures and analyzing the interplay of these pressures amongst supply chains entities
over the course of three years. The five propositions developed as a result of this study build on
institutional theory by seeking to understand the application of this theory within the healthcare
supply chain.
Keywords:Supply Chain, Health Care, Performance Measures Drivers

INTERNAL KEY ACCOUNT MANAGEMENT IN PSM - AN

EMPIRICAL ANALYSIS
Reinhardt, Sandro; European Business School, Wiesbaden;
reinhardt_s@yahoo.de
Kaiser, Gernot; European Business School, Wiesbaden;
kaiser@supplyinstitute.org
Hartmann, Evi; Friedrich-Alexander-U. of Erlangen-Nuremberg;
evi.hartmann@scs.fraunhofer.de
In purchasing literature, reference is often made to the benefits of involving the purchasing
function in corporate decision-making and developing close links between purchasing and other
areas of the business. It is claimed that corporate advantages can accrue from such an
involvement and that this affiliation facilitates the achievement of strategic purchasing objectives.
However, empirical evidence concerning the benefits of purchasing involvement is limited and the
question of how to develop effective intra-organizational relationships remains unanswered. This
paper draws from the experience of sales organizations and the concept of key account
management (KAM) to argue that the purchasing function should apply internal key account
management (IKAM) methods. The term internal key account management refers to the
practice of actively managing internal customer relationships and fostering an internal customer
orientation, based on the segmentation of internal customers. This paper describes a conceptual
model, which represents diverse options faced by purchasing while implementing an IKAM
program. The results of an empirical study are then presented and provide evidence that IKAM
positively impacts the purchasing functions relationships and integration with internal key
customers, and its business performance. A key finding of the study is that company size is highly
relevant for the performance of the individual IKAM design elements. It is shown that IKAM has
the strongest impact on performance in medium-sized firms.
Keywords:Purchasing, intra-organizational relationships, performance

INTERNATIONAL RESPONSIVENESS OF
ENTREPRENEURIAL VENTURES FROM EMERGING
MARKETS

Khavul, Susanna; U. of Texas, Arlington; skhavul@uta.edu

Prater, Edmund; U. of Texas, Arlington; eprater@uta.edu
Swafford, Patricia; U. of Texas, Arlington; swafford@uta.edu
The goal of this paper is to gain insights into the question, How do new ventures from emerging
markets become responsive to the demands of their international customers? We propose a
model of international responsiveness that encompasses concepts of founding team experience,
firm experience, supply chain focus, strategic orientation and international responsiveness. We
then test the model using data from 293 new ventures from three emerging economies: China,
India, and South Africa. Within new ventures, results indicate that international supply chain focus
impacts strategic orientation which in turn impacts international responsiveness. While previous
OM research accounted for firm experience, results indicate that experience of the founding team
has a noticeable, greater effect. Given the specific context of our sample, this study provides
unique and specific managerial insights to how entrepreneurs from emerging markets build
responsive organizations that deliver to their international customers.
Keywords:responsiveness, entrepreneurship, emerging markets

ISO 9000 SYSTEMS AS MEDIATORS AND THE ADOPTION

OF PROACTIVE ENVIRONMENTAL PRACTICES IN CHINA
Cordeiro, James J; State U. of New York, Brockport; jcordeir@brockport.edu
Zhu, Qinghua; Dalian U. of Technology; zhuqh@dlut.edu.cn
Sarkis, Joseph; Clark U.; jsarkis@clarku.edu
We find that existing ISO 9000 quality management systems mediate domestic and international
institutional pressures and the adoption of two important proactive environmental practices -- ISO
14001 and TQEM (total quality environmental management) by Chinese firms. We utilize a
sample of 377 Chinese manufacturers surveyed in six major industrial groups in Suzhou, Dalian,
and Tianjin cities. Our empirical efforts are grounded in theory on dynamic capabilities,
continuous improvement and organizational learning. These findings have important implications
as Chinese organizations continue to go global and international organizations seek partners and
suppliers within China.
Keywords:ISO 9000, China, Environmental Strategy

JUXTAPOSING TRANSACTION COST ECONOMICS AND

THE RESOURCE-BASED VIEW: A CASE STUDY OF IT
OUTSOURCING
Beursken, Rinze T; Tilburg U.; R.T.Beursken@uvt.nl
Verhagen, Tristan R. M. X.; Tilburg U.; T.R.M.X.Verhagen@uvt.nl
Overboom, Mark A.; Tilburg U.; M.A.Overboom@uvt.nl
He, Zi-Lin; Tilburg U.; Z.L.He@uvt.nl
Two dominant approaches for understanding and explaining outsourcing decisions are
Transaction Cost Economics (TCE) and the Resource-Based View (RBV). TCE posits that
organizations insource when the costs of using the market are higher than internal governance
costs. The RBV, on the other hand, posits that organizations insource when a resource is

strategic so as to enable them to create and sustain a competitive advantage. This paper
attempts to contribute to the exiting literature by providing a comparison between the two theories
with a single-case study. More specifically, we compare the predictions from both theories with
respect to outsourcing decisions and identify four possible circumstances where TCE may lose its
explanatory power to the RBV: capability differences between firms, strategic objectives to
develop new capabilities, the firm as a system of interdependent activities, and transacting
capability. With a case study of IT outsourcing decisions by a large European semiconductor
company, we find the only circumstance where the RBV reasoning prevails over the TCE
reasoning (i.e., TCE considerations become obviously secondary) in outsourcing decisions is
when an activity is considered to be an integral part of interactive activity systems which form the
companys core competencies.
Keywords:outsourcing, TCE, RBV

LINKAGES AMONG BUSINESS RELATIONSHIPS,

OPERATIONS STRATEGY AND PERFORMANCE IN
CHINAS RETAIL SECTOR
Yu, Wantao; Buckinghamshire New U.; Wantao.Yu@bucks.ac.uk
Ramanathan, Ramakrishnan; U. of Nottingham;
ram.ramanathan@nottingham.ac.uk
Resource dependence theory suggests that businesses structure their interrelationships with
external environment, including the government and competitors, to obtain long-term stability and
legitimacy. Stakeholder theory also stresses that businesses develop policies to balance their
needs and the needs of their stakeholders. Thus, actions of businesses, including how they
develop operations strategies, are shaped by external pressures and stakeholders. We focus on
the development of operations strategy in this paper. A study of the literature shows that empirical
studies on the effects of business relationships on operations strategy have yet to receive any
significant attention from operations management researchers. Drawing upon resource
dependence and stakeholder theories, we employ a path analytic framework to understand the
effects of business relationships (relationships with customers, suppliers, competitors and the
government) on operations strategy choices (low cost, quality, flexibility and delivery
performance) and business performance for a sample of retail companies in China. We find that
business relationships with customers, suppliers and competitors influence operations strategy
choices, and that the operations strategy choices of low cost and flexibility, in turn, influence
business performance. This study makes two significant contributions to the literature: 1) by
linking business relationships, operations strategy and business performance in a systematic
empirical manner for the first time; and 2) by focusing on the service (retail) sector in China.
Keywords:Business relationships; China; Operations strategy; Resource dependence
theory; Stakeholder theory

MANUFACTURING FLEXIBILITY AND PERFORMANCE:

INTEGRATING REQUISITE VARIETY WITH SWIFT AND
EVEN FLOW
Rogers, Pamela Patterson; Cameron U.; progers@cameron.edu
Ojha, Divesh; Assistant Professor / U. of North Texas; divesh.ojha@unt.edu
White, Richard E; U. of North Texas; white@unt.edu

In this study, we integrate the law of requisite variety with the theory of swift and even flow to
evaluate the effect of manufacturing flexibility on operational performance. Using a synergistic
view of manufacturing flexibility (as a second order factor) comprised of six complementary
dimensions (product-mix flexibility, routing flexibility, equipment flexibility, volume flexibility, labor
flexibility, and supply management flexibility), we test our research model with data collected from
U.S. manufacturers. The results of the analysis using structural equation modeling support our
hypotheses. Our results make two important contributions. First, by empirically testing the model
we provide support for manufacturing flexibility as a system regulator providing an organization
the necessary variety in response-repertoire that enables effective management of environmental
uncertainties. Moreover, this integrated perspective allows us to overcome some of the limitations
of swift and even flow in explaining operational performance relating to system utilization, rawmaterial, work-in-process and finished goods inventory management and cost of purchased
material.
Keywords:manufacturing flexibility, requisite variety, swift and even flow

NEW DARE TO CARE ATTITUDE: WHY SOLICITING (AND

ACKNOWLEDGING) CUSTOMERS FEEDBACK BRINGS
THEM BACK
Bone, Sterling A.; Brigham Young U.; sterling_bone@byu.edu
Lemon, Katherine N.; Boston College; lemonka@bc.edu
Liljenquist, Katie; Brigham Young U.; k.liljenquist@byu.edu
Money, R. Bruce; Brigham Young U.; moneyb@byu.edu
DeTienne, Kristen Bell; Brigham Young U.; detienne@byu.edu
While there is substantial research about the impact of customer voice on customer loyalty, most
research focuses on complaints rather than compliments. In this research, the effect of soliciting
and acknowledging compliments and complaints on customer attitudes and repatronage behavior
is investigated in the course of three experiments. The results reveal that customers who are
asked for feedback view their service encounters more favorably than those who are not asked.
Increased customer repatronage is shown in a 2-year field study of a large U.S. portrait studio
chains customers, who are solicited for compliments. Results reveal that soliciting customers
feedback affects their immediate attitudes and elicits expectations for acknowledgment that bear
heavily on whether companies maintain the benefits of soliciting customer opinions; failure to
acknowledge customer feedback on the companys part (both complaints and compliments) is
detrimental. Customers must feel that their feedback, both positive and negative, is valued and
will be acted upon. Managers should implement processes to collect and acknowledge feedback,
and reflect this pattern of solicitation and acknowledgment to both front-line employees and
customers. The authors advocate a feedback management system that goes beyond recovering
service failures to proactively cultivating positive customer attitudes.
Keywords:Customer Feedback, Compliment, Complaint

NEW PRODUCT DEVELOPMENT COLLABORATION ON

BOTH SIDES OF THE SUPPLY NETWORK AND PRODUCT
VARIETY

Tsinopoulos, Christos; Durham Business School;

chris.tsinopoulos@durham.ac.uk
Al-Zubi, Zu'bi Mohammad; U. of Jordan; zoz55jo@yahoo.com
The impact of collaboration with members of both sides of the supply network has often been
seen as contributing positively to the outcome of the new product development process. The
positive implications may include cost savings and more attractive offerings to customers. On the
suppliers side, collaboration during the new product development (NPD) process may lead to a
faster and more efficient process. On the users or customers side, collaboration may provide
ideas for entirely new products and/or modifications to existing ones. In this paper, we examine
how collaboration with suppliers and a group of users that experience needs unknown to the
public, the so-called lead users, affects the resulting variety of the products offered. We focused
on product variety because of its increasing perceived importance in the satisfaction of changing
customer needs. Hierarchical regression analysis of survey data collected from 313 UK
manufacturers revealed a significant positive relationship between collaboration and product
variety. Our key findings are that increasing the level of collaboration with lead users and with
suppliers during the new product development process will increase the variety of product offered
to customers, and that lead users have a higher impact on product variety to suppliers.
Keywords:product variety, new product development, supplier collaboration

OPPORTUNISM, ENVIRONMENTAL ANTECEDENTS AND

RELATIONAL CAPITAL WITHIN BUYER-SUPPLIER
RELATIONSHIPS
Carey, Sinad; U. of Bath; s.carey@bath.ac.uk
Lawson, Benn; U. of Cambridge; b.lawson@jbs.cam.ac.uk
Drawing on transaction cost economics and social theories of interaction, we explore the
antecedent effect of environmental factors on the development of supplier opportunism in
strategic buyer-supplier relationships. In examining the impact of opportunism on relational capital
between buyers and suppliers we investigate the effect of two contrasting monitoring
mechanisms used to attenuate this opportunism: legal bonds (output monitoring), and, social
interaction ties (behavioral monitoring). The hypothesised model is tested with data from a
sample of 163 buyer-supplier relationships between manufacturing firms and their key suppliers.
Implications for theory and managers are discussed.
Keywords:Supplier Opportunism, Buyer-supplier exchange, Monitoring

ORGANIZATIONAL INFORMATION GATHERING AND

RECYCLING PERFORMANCE OUTCOMES
Simpson, Dayna; Oregon State U./Monash U.;
Dayna.Simpson@bus.oregonstate.edu

Organizations increasingly seek to recycle waste material that arises from various sources such
as process byproduct, packaging and reverse distribution. Only limited empirical study of the
relationship between an organizations performance and its waste re-management choices
recycling in particular has been undertaken. Organizations recycle waste material for several
reasons though ideally for the benefits of pollution prevention and resource use efficiency.

Growing evidence suggests that performance gains from recycling are influenced by the
availability of waste-specific information from both internal and external sources. Results revealed
significant differences in information profile across environmental and economic performance
outcomes. Similar recycling levels were evident between two groups that demonstrated
significantly different performance levels suggesting variable performance conversion from
recycled waste materials.
Keywords:Reverse logistics, Environmental Performance, Recycling

ORGANIZING SERVITIZATION EFFECTIVELY

Visnjic, Ivanka; K.U.Leuven; ivanka.visnjic@econ.kuleuven.be
Van Looy, Bart; K.U.Leuven; bart.vanlooy@econ.kuleuven.be
Organizing servitization effectively: it takes two to tango. Servitization is a business model
innovation whereby a manufacturer of products provides more encompassing solutions by
offering product-related services. Despite the opportunity servitization offers to create value,
recent case studies indicate that adopting a servitization strategy might encounter considerable
implementation problems resulting even in a negative impact on performance. Although there is a
consensus that this service paradox can be solved by adopting adequate organizational
arrangements and managerial practices, there is a lack of agreement on the exact nature of such
arrangements and practices to be effective. Within this paper, we want to contribute to our
understanding on how to organize servitisation effectively. We engage in an extensive case study
research of a manufacturing firm that has been able to create and retain value from services.
Findings from 10 contrasting case studies of sales-and-service subsidiaries of the firm under
study lead us to conclude that, in order for servitization to be implemented successfully, products
and services need to be organized as a partnership of equals. This implies dedicated senior
management commitment towards services, the presence of service specific objectives as well as
the consequent translation towards operational targets and incentive systems. A strict separation
of product and service activities does not appear as a necessary condition to be effective. This
latter observation stems directly from the integration requirements necessary to create value by
offering both product and services for customers.
Keywords:Service Effectiveness, Servitization

OUTSOURCING AND ITS IMPACT ON MANUFACTURING

FLEXIBILITY: CONTINGENCIES MATTER
Scherrer-Rathje, Maike; U. of St. Gallen; maike.scherrer@unisg.ch
Deflorin, Patricia; U. of Zurich; patricia.deflorin@isu.uzh.ch
Anand, Gopesh; U. of Illinois, Urbana-Champaign; gopesh@illinois.edu
Despite the growing prevalence of outsourcing in manufacturing organizations, research
examining how outsourcing impacts different types of flexibility is considerably lacking. This study
seeks to advance our understanding of this relatively unexplored relationship by examining how
outsourcing influences product, process, volume, and labor flexibilities. To achieve this goal, a
mixed case study approach with eleven manufacturing companies that outsourced some portion
of their product development or manufacturing activities is used. Our findings indicate that
contingencies such as the speed of learning, the accuracy of transfer of learning, absorptive and
desorptive capacities, and the distribution of power between the procuring and provider
companies determine whether the effects of outsourcing on manufacturing flexibility are positive,
negative, or if the type of flexibility is not affected at all. We find that process and product flexibility

are impacted mainly positively by outsourcing, while the effects on volume and labor flexibility are
ambiguous. A company that decides to outsource must therefore carefully analyze the possible
consequences of outsourcing on different flexibility types and in relation to multiple contingencies.
Keywords:contingencies, flexibility, outsourcing

PROJECT RISK MANAGEMENT AND DESIGN

FLEXIBILITY: SUBSTITUTES OR COMPLEMENTS?
Gil, Nuno A; Manchester Business School; nuno.gil@mbs.ac.uk
Tether, Bruce; Imperial College Business School; b.tether@imperial.ac.uk
This study explores the interplay of design flexibility and project risk management in the design
and delivery of large and complex engineering assets. Drawing empirically from the 4bn
Terminal 5 project to expand Londons Heathrow airport, we propose a conceptualization of
design freeze postponement to accommodate evolution in customer requirements contingent
upon flexibility built into product design. Front-end strategizing, coupled with modular
architectures or safeguarded integral architectures, enable the early freezing of some design
elements whilst keeping others fluid with minimal risk of costly rework. To be effective, this
approach requires a high degree of knowledge sharing. It also requires both an ability and
willingness of the project partners to engage in long-term visioning, and invest accordingly. We
show that this is often inadequate. Consequently, developers need to manage the risk of late
changes. Ultimately, design flexibility and project risk management are found to be complements,
not substitutes, with the balance between them hard to determine ex ante.
Keywords:design flexibility, project management, uncertainty and complexity

QUALITY MANAGEMENT TECHNIQUES AND HOSPITAL

CORE PROCESS IMPROVEMENT
Boyer, Ken; Ohio State U.; boyer_9@fisher.osu.edu
Gardner, John; Ohio State U.; Gardner_877@fisher.osu.edu
Schweikhart, Sharon; Ohio State U.; Schweikhart.1@osu.edu
In the past decade major efforts have been undertaken to reduce deaths from preventable
medical errors, based on a groundbreaking report titled To Err is Human, was published by the
Institute of Medicine (IOM) in 1998, with estimates that within the U.S. as many as a million
people a year were injured and 98,000 people a year died as a result of preventable medical
errors. The U.S. Center for Medicare and Medicaid Services has sponsored a wide range of
initiatives, with a primary one being the collection of data on the provision of proper care for four
common and serious health conditions: heart attacks, heart failure, pneumonia and surgical
infections. U.S. hospitals now collect and the CMS publishes quarterly data which allows patients
and other interested parties to compare hospital performance on these measures, specifically the
percentage of patients that receive each measure. We present a study that combines two data
sources. First, we collect primary data from a survey of quality improvement directors and chief
nursing officers at 271 hospitals. This data is combined with the publicly available CMS core
process measure data. We examine 8 operational and managerial initiatives: including the use of
quality practices, the focus on objective data analysis, the role of senior leadership and the effect
of efforts to develop an error culture that focuses on identifying and making systematic
improvements to prevent errors. The results indicate a strong relationship between efforts to
promote and improve quality and the objective CMS core process measures. The data presented

is cross-sectional so it cannot prove a causal relationship, but this relationship does lay a
foundation for examining longitudinal data which can be built on over time as the CMS publishes
a time stream of data.
Keywords:Lean, Healthcare, Quality Management

RADICAL INNOVATION AND MARKET ORIENTATION IN

CHINESE NEW VENTURES
Johnson, William H. A.; Penn State Erie U.; whj1@psu.edu
Liu, Qing; Jilin U.; liuqing07@mails.jlu.edu.cn
Market orientation and innovation are important for economic growth. We examined market
orientation, innovation radicalness and propensity towards risk-taking in the unique context of
Chinas transitional economy. Analysis of 235 responses from Chinese new ventures created
during the past 8 years suggests that innovation radicalness is affected by both responsive and
proactive market orientation. Propensity towards risk-taking also positively affected innovation
radicalness. Results on responsive market orientation are counter to findings in Western contexts
such that the implications of these findings are useful to better understanding and managing
innovation and entrepreneurship in transitional economies, particularly in the Chinese context.
Keywords:Market Orientation, Innovation Radicalness, Risk-taking

REPLACEABILITY OF INDUSTRIAL SUPPLIERS: THE

SUPPLY RISK ASSESSMENT FROM A WORST-CASE
PERSPECTIVE
Cerquinho, Fbio; IESE Business School; docfcerquinho@iese.edu
Supply risk is defined as the risk of disruption from a direct supplier. The worst-case perspective
adopted in this study means that SR is assessed in terms of difficulty in replacing a supplier that
is no more available for any reason. Making use of Resource Dependence, Transaction Cost
Economics, and Relational Norms, a theoretical framework for antecedents of replaceability is
proposed and empirically tested. Five hypotheses have been confirmed using survey data from
an auto-industry company and a hundred of its suppliers. The empirical results support a model
where transaction costs and buyers dependence have a key role in explaining why an industrial
buyer may bear the negative impact from a suppliers failure.
Keywords:purchasing, supply risk assessment, supply disruption

ROLE OF TRANSFERENCE IN INTER-FIRM

COLLABORATION: PSYCHOLOGICAL MODEL VERSUS
STRATEGIC MODEL
Li, Mei; Arizona State U.; mei@asu.edu
Huang, Shuai; Arizona State U.; shuai.huang@asu.edu
The strategic model of buyer-supplier collaboration suggests policy leads to practice. In this
regard, the extant literature has suggested a positive correlation between a buying firms

collaborative policies and its collaborative practices with its suppliers. In this study, we propose a
competing model based on a psychological theory called the transference theory. This theory
suggests that what gets transferred to an external firm (i.e. supplier) is the practices of
collaboration inside a buying firm, rather than a policy statement. This study empirically examines
both models based on a sample of 207 firms from the High Performance Manufacturing (HPM)
database. While the data supports both models, the results render much stronger support for the
psychological model.
Keywords:psychological model of collaboration, buyer-supplier collaboration,
transference effect

SEQUENCE EFFECTS IN SERVICE BUNDLES:

OPERATIONAL AND MARKETING IMPLICATIONS
Dixon, Michael J; Cornell U.; mjd295@cornell.edu
Verma, Rohit; U. of Utah and Cornell U.; rohit.verma@business.utah.edu
Researchers in psychology and behavioral economics have shown that the sequence or ordering
of events plays an important role in the way we evaluate experiences. They have shown that the
perception of the peak event, the last event, and the general trend of the sequence are important
in predicting overall memory of an experience. Building on multi-disciplinary streams of research,
we investigate whether the sequence schedule of discrete events within a service bundle impacts
customer repurchase behavior. Using a unique archival data source provided by a renowned
performing arts venue, we build and test an econometric model to predict season ticket
subscription repurchase and to determine if the temporal placement of events impacts
repurchase. We find evidence of peak, end, and trend effects and discuss the importance of
sequence in determining service design and scheduling. These results have implications for
effective service design and event scheduling for a wide range of service industries.
Keywords:None

SERVICE CUSTOMIZATION THROUGH DRAMATURGY

McCarthy, Ian P.; Simon Fraser U.; ian_mccarthy@sfu.ca
Pitt, Leyland; Simon Fraser U.; lpitt@sfu.ca
Berthon, Pierre; Bentley U.; pberthon@bentley.edu
The customization of a service often depends on the performance delivered by front-stage
service employees. Drawing on theories of dramaturgy and service marketing, we present a
typology of four distinct and viable configurations for achieving different types of service
customization. We explain how variations in the time pressure to customize a service, and the
degree of customization required, combine to determine the characteristics of each configuration.
With service organizations increasingly operating on a global basis, we discuss the fit between
the preferences of different multicultural segments, the operational characteristics of a
configuration, and the level of customization offered.
Keywords:mass customization, services, dramaturgy

SERVITIZATION ECOLOGY; CHANGING PRODUCT-

CENTRIC MANUFACTURERS TO BECOME PRODUCTSERVICE PROVIDERS

Claes, Bjrn; Cranfield School of Management; bjorn.claes@cranfield.ac.uk
Martinez, Veronica; Cranfield School of Management;
v.martinez@cranfield.ac.uk
Companies increasingly demonstrate interest in servitization strategies. Important advances have
been reported in the understanding of this phenomenon. Whilst research extensively highlights
design and benefits of servitization strategies, less attention is dedicated to the difficulties that
companies experience when transforming their strategies to integrate services. Experience
shows that servitization constitutes a major managerial challenge. We address the lack of
understanding of servitization related change processes by empirically identifying implementation
obstacles in the transformation process and validate these by mapping them onto the
antecedents of organizational ecology theory. We discuss the significance of our findings and
highlight further research opportunities.
Keywords:Servitization, Change Management, Organizational Ecology

SHOULD YOU WISH FOR POPULARITY? THE CASE OF

QUALITY MANAGEMENT
Giroux, Helene; HEC Montreal; helene.2.giroux@hec.ca
Sergi, Viviane; HEC Montreal; viviane.sergi@hec.ca
Pasin, Federico; HEC Montral; federico.pasin@hec.ca
The goal of this empirical research is to investigate the effects on organizational professionals of
management fashions that are related to their profession. We tackle this question by examining
the case of the Quality movement: did quality specialists benefit from the increased popularity of
their field of expertise? The research focuses on two possible short-term gains: an increase in the
number of positions available and better compensation. Our analyses of both secondary data and
the personal recollections from the 29 specialists we interviewed indicate that their salary did not
increase at a faster pace than that of similar professionals. As for having access to more or better
jobs, our data contradict the perceptions expressed by some respondents that there were, at
least for a time, more available positions for quality professionals. In the long term, the profession
as a whole did not fare very well either. Some particularities of the quality profession may have
contributed to these results, but we hypothesize that there may be a more generalized principle at
work, which would condemn any pre-existing field of knowledge that would suddenly become
fashionable to the same fate.
Keywords:quality management, operations management, management fashions

SPECIFIC INVESTMENT, ABSORPTIVE CAPACITY

AND MANUFACTURER'S KNOWLEDGE ACQUISITION
Liu, Heng; Xi'an Jiaotong U.; lsanpaper@gmail.com
Liu, Yi; Xi'an Jiaotong U.; liuyi@mail.xjtu.edu.cn
Li, Yuan; Xi'an Jiaotong U.; liyuan@mail.xjtu.edu.cn

The ways in which a manufacturer uses its supply chain as a learning opportunity are critical for
its competitive advantage. This paper provides an integrated framework that relates the
manufacturers and distributors specific investments (SIs), the manufacturers absorptive
capacity, and manufacturers knowledge acquisition. Survey data from 225 manufacturer distributor dyads in the Chinese appliances industry indicate that a manufacturers SI and a
distributors SI have both a complementary and an individual effect on the manufacturers
knowledge acquisition, while the manufacturers absorptive capacity positively moderates these
relationships. The findings show important synergistic effects of SI in a supply chain as a
resource, and of absorptive capacity as a capability, to create competitive advantage by acquiring
knowledge from the supply chain partner collaboration.
Keywords:knowledge acquisition, specific investment, absorptive capacity

STRATEGIES FOR MANAGING THE CROSS-FUNCTIONAL

INTEGRATION CHALLENGE
Turkulainen, Virpi; Helsinki U. of Technology; virpi.turkulainen@tkk.fi
In this paper we focus on cross-functional integration. We are especially interested in
configurations of individual integration tools that organizations have adopted, referred to as
integration strategies. By examining data collected in 210 plants in eight countries, we
exploratively examine integration strategies. Using cluster analysis, we classify the plants into
four groups based on their use of various individual integration mechanisms. In addition, we
assess the use of the integration strategies under different levels of integration challenge that the
organizations are facing.
Keywords:Integration, Coordination, Organization design

SUPPLY CHAIN FLEXIBILITY AND THE IMPACT OF

DIFFERENT CAPABILITIES ON CUSTOMER
SATISFACTION
Semeijn, Janjaap; Open U.; jjs@ou.nl
We take an organizational and manufacturing perspective to examine Supply Chain Flexibility for
seven related capabilities: Product modification and new product development flexibility, mix and
volume flexibility, physical distribution and demand management flexibility and strategy
development flexibility. The question is which of these capabilities will likely result in increased
customer satisfaction when used in combination? Based on a survey of 83 manufacturing firms
we find that each type of capability appears to increase customer satisfaction, when examined in
isolation. When a comprehensive view is taken, using structural equation modelling, only product
modification, physical distribution and strategy development flexibility show significant impact on
customer satisfaction.
Keywords:supply chain flexibility, customer satisfaction, capabilities

SUPPLY CHAIN STRUCTURE, INVENTORY TURNOVER,

AND FINANCIAL PERFORMANCE: EVIDENCE FROM
CHINA

Hu, Shanshan; Indiana U.; hush@indiana.edu

Ye, Qing; Tsinghua U.; yeqing@sem.tsinghua.edu.cn
Chi, Wei; Tsinghua U.; chiw@sem.tsinghua.edu.cn
Flynn, Barbara B.; Indiana U.; bbflynn@indiana.edu
Using objective data collected by the World Bank, we empirically investigate the relationship
between Chinese manufacturers supply chain structure, raw material and finished goods
inventory turnover, and return on sales. Our findings indicate that locational proximity and
relationship continuity have a significant impact on inventory performance, which in turn drives
profitability. We especially focus on structural characteristics unique to Chinas business
environment. We find that Chinese manufacturing companies have relatively weak operational
performance, and better operational performance is associated with newer firms, foreign
ownership, and a larger number of foreign customers. Unlike their counterparties in developed
countries, Chinese manufacturers profitability relies more on downstream inventory performance
than on upstream inventory performance.
Keywords:China, Inventory, Supply Chain

SUPPLY RISK MANAGEMENT IN FINANCIAL CRISES A

MULTIPLE CASE-STUDY APPROACH
Blome, Constantin; European Business School; blome@supplyinstitute.org
Schoenherr, Tobias; Michigan State U.; schoenherr@bus.msu.edu
Enterprise risk management has become a key concern for organizations, which is even further
emphasized by the current economic and financial crisis. Against this background, this paper
investigates successful approaches and experiences by European companies in dealing with this
new reality, especially as it concerns the supply side. Using in-depth case studies conducted
among eight European enterprises, we develop a set of propositions about how enterprises
manage supply risks in the financial crises.
Keywords:Supply risk management, Financial crisis, Case study

TESTING AN INTEGRATED SUPPLY RISK MANAGEMENT

SYSTEM
Schiele, Holger; U. of Twente; h.schiele@utwente.nl
Hoffmann, Petra; U. of Twente; p.hoffmann@utwente.nl
This research identifies the risk screening activities that are needed to identify supply risks in
time, to prevent risks from affecting the buying organization and to overcome risks when they
occur. With an empirical test we found 26 variables that contribute to successful supply risk
management. These variables can be grouped into risk sources monitored, the indicators used to
detect the risks and the measures taken to encounter them. They are analyzed for environmental, financial-, operational- and strategic risks. Four indicators that strongly contribute to successful
supply risk management are: change in the focal companies turnover with a supplier, nation
reports, payment behavior of the supplier and the results of supplier process audits. Five
mitigation strategies firms can take are: on-site risk audits, supplier development, risk preassessment, building trust and increasing competition between suppliers.

Keywords:supply chain risk management, risk sources, risk monitoring

THE BUSINESS CASE FOR SAFETY: AN EXPLORATION

OF OPERATIONAL PRACTICES AND WORKER SAFETY
OUTCOMES
Pagell, Mark; York U.; mpagell@schulich.yorku.ca
Dibrell, Clay; U. of Mississippi; cdibrell@bus.olemiss.edu
Shah, Rachna; U. of Minnesota; shahx024@umn.edu
Veltri, Anthony; Oregon State U.; anthony.veltri@oregonstate.edu
Maxwell, Elisabeth; Oregon State U.; maxwell@onid.orst.edu
One of the most fundamental indicators of a facilitys social performance is the health and safety
of its workers. Yet there is almost no research on the safety of operational workers that
simultaneously measures operational performance. The literature then provides no guidance for
managers, workers or researchers trying to understand how accepted operational best practices
will impact the safety of operational workers. The present research addresses that gap by
simultaneously examining operational best practices such as quality management and
preventative maintenance, operational performance outcomes and worker safety outcomes. To
control for the myriad of potential problems with self reports of worker safety performance we use
secondary data provided by the state of Oregon. The results strongly suggest that the same
operational practices that lead to improved operational performance have no impact, positive or
negative, on worker safety outcomes.
Keywords:operations, worker safety, social responsibility

THE DARK SIDE OF BUYER-SUPPLIER RELATIONSHIPS:

A SOCIAL CAPITAL PERSPECTIVE
Villena Martnez, Veronica Haydee; Instituto de Empresa Business School;
veronica.villena@ie.edu
Choi, Thomas; Arizona State U.; thomas.choi@asu.edu
Revilla, Elena; Instituto de Empresa Business School; elena.revilla@ie.edu
Building on social capital and supply chain management literature, this research develops a
theoretical framework that (i) analyzes both the bright and dark sides of building social capital in
collaborative BSRs and (ii) examines what contingency factor affects the rate at which the bright
side and dark side switch over. This research suggests that there is an inverted curvilinear
relationship between social capital and performance: both too little and too much of social capital
in BSRs hurt value creation. On the one hand, fostering social capital improves a buying firms
ability to leverage resources available within a BSR. On the other hand, if taken to extreme, it can
reduce the buying firms ability to be objective and make effective decisions as well as increase
its suppliers opportunistic behavior. There should be an inflection point in which the benefits and
the risks of social capital equal; although to achieve said threshold depends whether the buyer
and supplier work to promote radical, innovative changes compared to whether they foster
incremental, operative changes. This study thus aims to extend (i) the literature on collaborative
BSRs by highlighting both the benefits and risks of this type of relationship and (ii) the literature
on social capital by examining the dark side of social capital that has been largely ignored and
applying it to the BSR context.

Keywords:buyer-supplier relationships, social capital, value creation

THE EFFECTS OF HIGH PERFORMANCE WORK SYSTEM

ON PERFORMANCE IN MASS CUSTOMIZATION SYSTEMS
Leffakis, Zachary; Purdue U. North Central; zleffaki@pnc.edu
Dwyer, Dale J; U. of Toledo; dale.dwyer@utoledo.edu
This study presents a critical analysis and rigorous scientific investigation of Mass Customization
Manufacturing (MCM) and High Performance Work Systems (HPWS). The content within this
manuscript conceptually argues that distinct MCM approaches must be aligned with and
functionally supported by explicit HPWS configurations that consist of different, but
complementary sets of internally aligned Human Resource Management (HRM) practices. The
conceptual model suggests that different, holistic sets of internally consistent configurations of
HRM practices support distinct types of MCM systems. Results from a hierarchical multiple
regression analysis suggests that operational performance significantly increases when basic
human resource management practices are integrated in MCM contexts that emphasize process
standardization. This finding indicates that mass customization manufactures are capitalizing on
the opportunity to improve performance by combining a basic HPWS structure with a basic MCM
system.
Keywords:HPWS, Mass Customization, Operational Performance

THE EFFICACY OF OPERATIONS STRATEGY ON

FINANCIAL AND MARKET MEASURES
Schoenherr, Tobias; Michigan State U.; schoenherr@bus.msu.edu
Narasimhan, Ram; Michigan State U.; narasimh@msu.edu
Building on the theory of production competence, this paper tests the impact of operations
management efficacy (OME) and operations management alignment (OMA) on the improvement
of financial and market measures. Our measures of OME and OMA, which are derived via the
computation of indices, are concepts that assess the fit of operations strategy with its broader
context. Using an international sample of 639 respondents on the manufacturing plant level from
21 countries, insight is provided that confirms the impact of operations management efficacy and
alignment on the improvement in financial performance. However, our data failed to support the
link between these two fit measures and the improvement in market performance. Interpretations
are provided offering support for the cumulative capability model. More detailed insight is
provided by follow-up tests investigating the influence of strategy focus.
Keywords:Operations strategy, Theory of production competence, Survey research

THE IMPACT OF CULTURE ON CONTRACTUAL BUYER

SUPPLIER RELATIONSHIPS
Ribbink, Dina; U. of Western Ontario; dribbink@ivey.uwo.ca
Grimm, Curt; U. of Maryland; cgrimm@mbs.umd.edu

In todays economy, an ever-increasing number of companies are dealing with partners from
across the world giving rise to a growing need to understand the impact of cultural differences on
business interactions. This study researches the effect of culture in contractual buyer supplier
agreements using transaction cost as a theoretic lens. A large number of relationships translate
into contracts between partners, but very few studies have investigated the effect of cultural
differences on these written agreements. Contracts are adjusted based on the needs and
requirements of specific partners in the relationship. The current study takes contractual data
from a European multinational company and investigates the impact of culture on buyer-supplier
relationships using Hofstedes four culture dimensions: power distance, masculinity, individuality
and uncertainty avoidance. The main finding is that contract completeness increases as the
cultural gap between the buyer and supplier widens. The results for individual culture dimensions,
measured cumulatively per buyer-supplier pair, are mixed. Finally, asset specificity has the
expected positive effect on the level of contract completeness, while more frequent transactions
result in lower levels of contract completeness. This implies that cultural background is a factor in
contractual buyer supplier relationships and need to be taken into account in global supply chain
management.
Keywords:buyer-supplier relationship, culture, contracts

THE IMPACT OF SUPPLY CHAIN FIT ON FIRM

PERFORMANCE

Grosse-Ruyken, Pan Theo; ETH Zurich; ptgrosse-ruyken@ethz.ch

Wagner, Stephan M.; Swiss Federal Institute of Technology Zurich, ETH;
stwagner@ethz.ch
Erhun, Feryal; Stanford U.; feryal.erhun@stanford.edu
The impact of a supply chain fit, so far, has neither been quantified by firms nor documented in
the literature. Configurational theory suggests that higher performance can be realized if a firm
achieves a perfect fit. As such, supply chain fit, i.e., strategic consistencies between demand
aspects of the underlying product and supply chain design, is a major leverage factor in a firms
financial success. Using a configurational approach based on a sample of 259 U.S. and
European manufacturing firms, we empirically document that supply chain fit has a direct,
significant, and positive impact on a firms financial success.
Keywords:supply chain management, supply chain fit, empirical study

THE INFLUENCE OF GREEN AND LEAN INITIATIVES ON

PRODUCT DEVELOPMENT PERFORMANCE IN SMES
Azadegan, Arash; New Mexico State U.; azadegan@nmsu.edu
Ellram, Lisa Marie; Miami U.; ellramlm@muohio.edu
this study first investigates whether emphasis on green objectives (environmental considerations)
and lean objectives (effective use of manufacturing processes) require trade-offs with or act as
complements to enhance product development performance. It then investigates how listening to
(i.e. placing importance on knowledge from) and collaborating with external constituents (such as
customers, suppliers and competitors) affect the link between green and lean objectives with
product development performance. First, arguments developed by manufacturing strategists to
explore the need to make trade-offs as opposed to build on cumulative capabilities are used to
link green and lean objectives with product development performance. Next, institutional theory is

used to explain the moderating effects of external constituents. Hypotheses are developed and
tested using a sample of 1,410 SMEs from the UK. Results suggest that the relationship between
green objectives and product development performance and the relationship between lean
objectives and product development performance are moderated by listening to and collaborating
with external constituents.
Keywords:sustainability, green initiatives, lean initiatives

THE RELATIONSHIP BETWEEN HARD AND SOFT

TECHNOLOGIES AND COMPETITIVE PERFORMANCE
Khanchanapong, Teerasak; Monash U.; teerasak70@yahoo.com
Prajogo, Daniel Indarto; Monash U.;
daniel.prajogo@buseco.monash.edu.au
Sohal, Amrik S; Monash U.; amrik.sohal@buseco.monash.edu.au
Cooper, Brian; Monash U.; brian.cooper@buseco.monash.edu.au
This article investigates the additive and synergistic effects of hard and soft technologies on
improving four areas of competitive performance in manufacturing: cost, product quality, lead
time, and flexibility. Using data from 186 manufacturing plants in Thailand, this study found that
hard technologies have a relatively stronger relationship with flexibility, cost, and lead time, whilst
soft technologies have a stronger relationship with product quality. Moreover, a synergistic
relationship between hard and soft technologies contributed to increased improvements in
competitive performance. The results are translated into specific implications for strategic
decision-making process, technology justification, and performance improvement programs, in
response to intensified global competition.
Keywords:Operations Strategy, Advanced Manufacturing Technology (AMT), Survey
Research

THE ROLE OF RELATIVE ABSORPTIVE CAPACITY IN

IMPROVING SUPPLIERS OPERATIONAL PERFORMANCE
Nagati, Haithem; Rouen Business School; hng@rouenbs.fr
Rebolledo, Claudia; HEC Montral; claudia.rebolledo@hec.ca
Relative absorptive capacity, knowledge transfer, operational performance, structural equation
modeling.
Keywords:None

TURNING TO AGENT-BASED SIMULATION TO

UNDERSTAND COMPLEX ADAPTIVE SUPPLY
NETWORKS
Sawaya, William James; Texas A&M U.; sawaya@tamu.edu

Supply networks of today are increasingly complicated due to many factors, including the global
nature of many enterprises and the highly volatile economic environment. The myriad of
connections and interactions between organizations make predicting the effect of changes at one
organization on other organizations problematic. As research and business practitioners
recognize that supply networks can be investigated and analyzed as complex adaptive supply
networks, there becomes a greater need for robust methodologies that are capable of
incorporating empirical relationships, structures and information. Agent-based simulation is a
promising methodology used to accommodate highly complex systems. In some instances, it is
currently the only methodology capable of incorporating extreme complexity. This is because
agent-based simulation models can accommodate the high complexity of real supply networks,
they can incorporate empirical information that need not be neat in a mathematical or statistical
sense, they can be used to analyze system dynamics rather than only steady state outcomes,
and at times the coding of agents can be directly transferred from simulation models to real
agents in applications. These models have the added benefit of using established simulation
validation techniques; to the extent the information and resources are available. It is important to
note that as the complexity of the system increases, so do the data and time requirements for
validating the model.
Keywords:Complex Adaptive Systems, Supply Networks, Agent-based Simulation

UNDERSTANDING GLOBAL SUPPLY CHAIN

PARTNERS:SUPPLIER SELECTION DECISION MODELS
Park, Daewoo; Xavier U.; parkd@xavier.edu
Krishnan, Hema A; Xavier U.; krishnan@xavier.edu
Lee, Mina; Purdue U.; minalee@purdue.edu
It is important to understand supply chain partners "strategic intent, particularly in global
markets. Strategic intent provides information on potentially controllable strategic dimensions
critical in arriving at decisions on global supply chain strategy. Based on past research we would
expect supplier selection decision models to vary by country and within a particular country as
well. This study examines the effects of industry and executive characteristics on global supply
chain partners supplier selection decision models. The results show that the criteria used to
make supplier selection decisions vary by industry, education and work experience. The resulting
supplier selection decision frameworks provide information important for identifying the strategic
intent of Korean supply chain partners for U.S. firms.
Keywords:Global Supply Chain Partner, Supplier Selection, Strategic Intent

UPSTREAM SUPPLY CHAIN RISK MANAGEMENT:

MODEL DEVELOPMENT AND EMPIRICAL ANALYSIS
Kern, Daniel; Friedrich-Alexander-U. of Erlangen-Nuremberg;
daniel.kern@wiso.uni-erlangen.de
Moser, Roger; European Business School; moser@supplyinstitute.org
Moder, Marco; Friedrich-Alexander-U. of Erlangen-Nuremberg;
marco@moder.de
Supply chain risk management has gained significant attention in the field of operations
management over the last decade. In the past, research focused on initiatives that made supply
chains leaner, faster and more flexible, resulting in highly efficient but vulnerable operations. The

current study draws upon the existing literature to develop a model for upstream supply chain risk
management. For the empirical analysis we collected survey data of 162 companies across
several manufacturing industries. In a path analytic model we link the three steps of the supply
chain risk management process risk identification, risk assessment and risk mitigation to
upstream supply chain risk performance. Many studies in the past have stressed the importance
of an ongoing and iterative risk management process that is constantly adapted to the
requirements of a changing environment. Therefore, we also include in our study the effect of a
continuous improvement process on the supply chain risk management activities. The data
provides robust support to all our hypotheses. Thus, our study significantly contributes to the
supply chain risk management research by elaborating theory and empirically testing risk
managements contribution to risk performance. This can provide managers with a strong
argument to invest in supply chain risk management initiatives which have gained even more
importance since the current economic crisis.
Keywords:structural equations model, supply chain risk management, continuous
improvement

WHAT ARE THE VALUES AND BEHAVIORS OF

EFFECTIVE LEAN LEADERS?
van Dun, Desiree; U. Twente, The Netherlands; d.vandun@hofp.nl
Hicks, Jeffrey N.; U. of Twente; j.n.hicks@utwente.nl
In this exploratory study, we come to specify values and behaviors of six highly effective Lean
middle managers, operating in three Dutch firms that have adopted Lean Production methods.
With them we held interviews, surveys and video-analyzed regular staff meetings. For exemplary
Lean leaders, key values are honesty and participation and teamwork. Their two most
frequently found behaviors are: actively listening and building and sustaining trust relations;
these were shown more often when more experienced in Lean. Our findings and resulting
hypothetical model calls for longitudinal field designs to study Lean leadership and Lean team
cultures.
Keywords:Lean Production, Leadership, Behavior

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