Int. J.
Production Economics 147 (2014) 189–197
Contents lists available at ScienceDirect
Int. J. Production Economics
journal homepage: www.elsevier.com/locate/ijpe
Editorial
Building supply chain system capabilities in the age of global complexity:
Emerging theories and practices
1. Introduction
Firms around the world are experiencing the age of global
complexity. Recent global complexity requirements include intense
global competition, increasing deregulation, changing global custo-
mer requirements, global financial crisis, 2011 natural disasters in
Japan and Thailand, turbulent international power dynamics and
turbulent emerging markets (Closs et al., 2008; Earl and Wakeley,
2010; Park et al., 2013).
The age of globalization is characterized by shared standards
and practices across the globe and at the same time enormous
complexities and uncertainties (Vahlne et al., 2011). Firms confront
both global and local pressures as their value chains are extended
from one end to the other end of the world and managing supply
chain complexity requires firms and researchers to examine more
than “existing theoretical frameworks” (Grogaard, 2012).
Here, the challenges for managing supply chain management
become so obvious. Although supply chain system capabilities
have been examined from a variety of perspectives, much is still to
be further explored how firms respond in the age of global
complexity. Vast number of component parts of products becomes
increasingly interdependent and the scope of services is getting
extended in the turbulent global market environments (Earl and
Wakeley, 2010; Park and Hong, 2012). Emerging theories and
practices deserve careful examination. This special IJPE issue
focuses on emerging theories and practices in relation to building
supply chain system capabilities in the age of global complexity.
This special issue aims to examine the nature of global complexity
challenges which require building supply chain system capabilities.
Specific research questions are (1) what are the sources of global
complexity challenges, (2) what are the useful theories that guide the
complexity research in relation to building supply chain capabilities,
and (3) how do firms respond to such complexity challenges?
Understanding the role of building supply chain capabilities in
the age of global complexity, this special issue of the International
Journal of Production Economics (IJPE) aims to attempt to motivate
the state-of the-art research in the areas of developing sustainable
supply chain capabilities in the age of global complexity with the
objective of helping companies with their performance through
emerging theories and practices, and hence to be competitive in
the 21st century global market. The objective of the International
Journal of Production Economics (IJPE) issue is to generate research
that proposes suitable strategies, and relevant methods and
technologies for building sustainable supply chain capabilities in
the age of global complexity. Managing sustainable supply chain
development in the age of global complexity requires a suitable
control system, performance measures and metrics.
0925-5273/$ - see front matter & 2013 Published by Elsevier B.V.
http://dx.doi.org/10.1016/j.ijpe.2013.11.012
1.1. Sources of global complexity
Complexity arises from the required number of component parts
and the extent of services options that customers expect. For
example, a typical automobile has more than 30,000 parts. Supply
chain complexities arise from “heterogeneously dispersed resources
and complimentary competencies” throughout global supply chain
(Fawcett et al., 2012). Product portfolio complexity is “a design state
manifested by the multiplicity, diversity, and interrelatedness of
products within the portfolio” (Jacobs and Swink, 2011) which
requires the increasing level of dynamic leaning and the flexible use
of intra- and inter-organizational resources (Liao et al., 2010; Reuter
et al., 2010; Zacharia et al., 2011). The source of product complexity
involves upstream complexity, internal manufacturing complexity,
and downstream complexity which all have negative impact with-
out implementing effective complexity management (Bozarth et al.,
2009). Increasing product complexity requires “the multi-faceted
interactions between information, physical flow, and the complex
rationales” and network governance structures (Holweg and Pil,
2008; Robertson et al., 2013).
Integrative analytical framework that considers trade-offs
between different product characteristics, bounded rationality
behaviors, and hierarchical preferences over characteristics (Earl
and Wakeley, 2010). The release of a new product enhances
growth opportunity among multiproduct firms; second, product
development promotes the growth of firms belonging to sectors
with stronger commitment to research and development; and
third, new product development enhances firm growth substan-
tially in those sectors that absorb externally originated patents
(Cucculelli and Ermini, 2012).
1.2. Relevant theories for complexity challenges
Theory of competencies focus on “product/technology portfolio
strategy, organization and governance regarding complexity decisions,
and product design and decision support systems for managing
product portfolio complexity” (Closs et al., 2008). A socio-technical
systems theoretical perspective is useful in explaining the nature of
complexity and complexity management for business competitiveness.
Strategic management theories—including the resource-based view of
the firm, transaction cost economics, organization learning theory
and social capital, strategic management research methods—are applic-
able and beneficial to managing global complexity requirements
(Hitt, 2011). Complexity literature suggests that developing dynamic
system flexibility and lean production capabilities are essential for
managing complexity (Bozarth et al., 2009). In managing increasing
level of product complexity, dynamic capabilities (resource based
190 Editorial / Int. J. Production Economics 147 (2014) 189–197

view), adaptive structuration theory (AST) “complements the complex
adaptive systems theory” (Holweg and Pil, 2008; Reuter et al., 2010).
2. Managing complexity
Managing complexity is a huge challenge for businesses. Crucial
network capabilities “as integrated and dynamic systems in both
front-end and back-end are crucial to deal with diverse set of issues
arise from political, social, economic and organizational issues
(Parkhe et al., 2006; Levy, 2008; Fawcett et al., 2012). The papers
selected for this special issue highlight emerging trends in theory
and practices to managing complexity in global supply chains. Fig. 1
shows the framework of seven streams of our special issue.
As businesses face the increasing levels of complexity chal-
lenges that arise from regulatory requirements, global market
opportunities, multi-faceted products and services, rapid technol-
ogy changes, and global competitive pressures it is critical for
firms to develop global supply chain strategy and supply chain
design. Firms aim to achieve dynamic supply chain configurations
in their intra- and inter-organizational resources—in the form of
flexible use of physical and knowledge resources. The scope of
such integration involves both domestic and global supply chains.
However, an increasing level of such integration poses grave risk
potential in global supply chain environments with the disruptive
elements from both internal and external environments.
Table 1 is a summary of articles selected for this special issue of
“Building Supply Chain System Capabilities in the Age of Global
Complexity”. Seven streams of theories and practices on building
supply chain capabilities in the age of global complexity. Emerging
theories and practices are related the broad seven streams of research.
2.1. Supply chain strategy and supply chain architecture
The first article by Roh, Hong and Min examines how firms build
a responsive supply chain in global manufacturing environments.
This rare empirical study identifies key variables relevant to the
implementation of a successful responsive supply chain. The
effective implementation of a responsive supply chain requires a
careful definition of a responsive supply chain strategy in terms of
the product range, and the frequency and innovativeness of the
product offerings. This study also suggests that the key contextual
factors that influence the extent of implementation of a responsive
supply chain strategy are mostly the size of firms, industry
characteristics, and customer and supplier bases, rather than the
location of manufacturing firms. This paper shows that the
effective implementation of a responsive supply chain strategy
involves the integration of inter-organizational resources (i.e.,
socio-relational and techno-process integration) across the global
supply chain to enhance pull production capabilities.
Ji, Gunasekaran and Yang clarify environmental bottom line into
ecological impact and carbon emission bottom lines, in which
former is contingent on ecological footprint, while the latter
depends on carbon footprint. Their analysis of environmental
impact (i.e., ecological and carbon impact) show for production
phase, ecological footprint reductions need to remove toxic sub-
stance, carbon footprint could be reduced by improving demand
forecast accuracy and investment in carbon reduction technology.
For distribution phase, carbon footprint could be mitigated by
smaller packaging, joint distribution, using third party logistics
providers and cross-docking network. For use phase, carbon
footprint could be abated by improving energy efficiency and
shortening use time, in some cases, however, shortening use time
can increase ecological footprint. For disposal phase, combination
between design for ecology and comprehensive take-back (return)
networks could efficient decrease ecological impacts.
Wu, Wu, Chen and Goh adopt an alignment perspective to
empirically examine the complex links between four SC strategies
and four CE strategies on 172 manufacturing firms in Taiwan.
Using profile deviation analysis, it is found that overall a SC
strategy when properly aligned with a CE strategy leads to
improved firm performance. Specifically, a risk-hedging SC strat-
egy should be aligned with a defensive CE strategy to yield
improved firm performance. Likewise, a responsive SC strategy
should be aligned with an accommodative CE strategy, and an
agile SC strategy with a proactive CE strategy.
Holweg and Helo notice that the persistent disunion between
the “value chain” views that considers aspects of value creation
and appropriation, and the operational “supply chain” view that
considers strategies and tools for designing and operating efficient

Source of Complexity Challenges

(Regulatory Requirements, Global market
opportunities, Multi-faceted Product/Services, Rapid
Technology Changes, Global Market and Competitive
Pressures)

Supply Chain Supply Chain

Strategy Design

Dynamic Supply Chain Configurations

(Flexible Use of Physical/ Knowledge
Resouces)

Global Supply Chain

Domestic Supply Chain

Supply Chain Environment

(Complexity/Supply Chain risks)

Fig. 1. Research framework of recent research work.

Table 1
Summary of articles selected for this special issue.

Streams of theories and practices Authors Papers Analysis focus Core research findings

Supply chain strategy and supply
chain architecture
Roh et al. Implementation of a responsive supply chain strategy in Responsive supply chain The effective implementation of a responsive supply chain strategy involves the integration of
global complexity: the case of manufacturing firms inter-organizational resources across the global supply chain to enhance pull production
capabilities
Ji et al. Constructing sustainable supply chain under double Sustainable supply chain Environmental impact (i.e., ecological and carbon impact) reduction strategies can be designed
environmental medium regulations in production, distribution, use and disposal phase
Wu et al. Aligning supply chain strategy with corporate environmental Supply chain strategy Overall a supply chain strategy when properly aligned with a corporate environment strategy
strategy: a contingency approach leads to improved firm performance
Holweg and Helo Defining value chain architectures: linking strategic value Value chain architecture This study refers to this purposeful creation as the “value chain architecture” and proposes five
creation to operational supply chain design fundamental decisions

Supply competence/supply chain Bagchi et al. How supply competency affects fdi decisions: some insights Supply competency By linking FDI potential with supply capability related factors, this research contributes to
collaboration/supply chain future FDI decisions by firms as well as provides assistance and direction to strategic planners
integration of countries
Ramanathan Supply chain collaboration: impact of success in long-term Supply chain The factors of collaboration impact the success of supply chains that will lead to future
Gunasekaran partnerships collaboration collaborations
He et al. The impact of supplier integration on customer integration Supplier integration Both supplier integration and customer integration had positive direct effects on new product

Editorial / Int. J. Production Economics 147 (2014) 189–197

and new product performance: the mediating
Knight et al. Integrating skills profiling and purchasing portfolio
management: an opportunity for building purchasing
capability
Lai et al. The role of customer integration in extended producer
responsibility: a study of Chinese export manufacturers
performance
Purchasing capability This study demonstrates how the survey can be adapted to provide a management tool for
global firms seeking to improve procurement capability, flexibility and performance
Customer integration The high customer integration group achieves better market performance whereas the low
group weak in customer integration reap greater financial benefits

NPD/innovation/knowledge
management/IT strategy
Caniato et al. Integrating international fashion retail into new product Integration with NPD The internationalization of retail is analyzed by considering the influence of foreign countries'
development characteristics on new product development (NPD)
Blome et al. The impact of knowledge transfer and complexity on supply Knowledge transfer This study finds a positive and significant influence of internal and external knowledge transfer
chain flexibility: a knowledge-based view on supply chain flexibility
Marsillac and Connecting product design, process and supply chain Supply chain capabilities Product design changes were found to alter the scope and scale of process and supply chain
Roh decisions to strengthen global supply chain capabilities modifications
Ngai et al. RFID value in aircraft parts supply chains: a case study RFID value Using an RFID system, a maintenance company specializing in aircraft parts can accumulate
savings
Qrunfleh and Supply chain information systems strategy: impacts on Supply chain The IS for Efficiency (IS for Flexibility) IS strategy enhances the relationship between Lean
Tarafdar supply chain performance and firm performance information systems (Agile) SC strategy and supply chain performance
Matsui Gray-market trade with product information service in Product information There arises the equilibrium that a multinational firm (MNF) provides no information service
global supply chains service when gray-market trade is allowed in the country
Yacine et al. Multi-criteria decision making based on trust and reputation Multi-criteria decision The trust and reputation model can effectively filter unfair ratings from those customers who
in supply chain making did lie
Aoki et al. Monozukuri capability to address product variety: a Monozukuri capability This study highlights a new understanding about the “Japanese model” based on an integrative
comparison between Japanese and German automotive perspective between production, sales and purchasing activities.
makers

Decision-making/Japanese
Monozukuri/supply chain risk
management
Ojha et al. Disaster immunity and performance of service firms: the
influence of market acuity and supply network partnering
Hu and Motwani Minimizing downside risks for global sourcing under price-
sensitive stochastic demand, exchange rate uncertainties,
and supplier capacity constraints
Pal et al. Antecedents of organizational resilience in economic crises:
an empirical study of swedish textile and clothing SMEs
Fujimoto and Balancing supply chain competitiveness and robustness
Park through “Virtual Dual Sourcing”: lessons from the Great East
Japan Earthquake
Shimizu et al. Project managers and risk management: a comparative
study between Japanese and Korean firms
Disaster immunity The influence of market acuity on the level of disaster immunity is mediated by supply network
partnering and innovation
Downside risks Specific purchasing and selling strategies to minimize downside risks when suppliers have
limited capacities is offered
Organizational This paper provides insight on how the responding firms considered resourcefulness, viz. cash
resilience flow and investment finance, relational networks and material assets, along with “dynamic
competitiveness” through strategic and operational flexibility to be key enablers of resilience
and financial performance
Virtual dual sourcing Effective implementation of the virtual dual solution will require simultaneously enhancing the
design information's portability, the supplier's visibility, and the firm's capabilities at process
recovery and production substitution
Risk management Korean companies grant their project managers significant authority in risk management in
contrast to their Japanese counterparts

Global network/logistics/SMEs/ Golini et al. Developing Sustaining in global manufacturing networks: Site competence Site competence is an antecedent of the adoption of environmental and social sustainability
international SCM study the role of site competence on sustainability performance programs and, in turn, of higher performance improvement

191
192 Editorial / Int. J. Production Economics 147 (2014) 189–197

networks of firms. Their study turn to an exploratory case study to

This study makes at least four important contributions by a structured analysis of OM and SCM
The connectivity features of the global supply chain networks display significant differences in

There is no strong empirical basis to make a direct link between clusters and competitiveness,

This paper identifies the most important dimensions and attributes of supply chain agility and
provides a deeper insight into those characteristics of agility that are most relevant within the
network hierarchy and complexity depending on whether they are observed from a European,
This study explores supply chain management (SCM) capabilities of small and medium sized

This study proposes a novel network DEA model for evaluating the GSCM in the presence of
This study empirically identifies significant Reverse Logistics (RL) barriers with respect to identify what such a combined view of the value and supply chain
management, financial, policy and infrastructure in the Chinese manufacturing industries

This study focuses on identifying barriers to the implementation of a green supply chain
would entail. They refer to this purposeful creation as the “value
chain architecture” and propose five fundamental decisions that
define the latter: (1) the nature of value provision (driven by the
core competence of the firm); (2) the operational footprint
decisions for manufacturing, sourcing and distribution; (3) the
approach to risk management; (4) the order fulfillment strategy
(and implicit in that, the type of product customization); and

management (Green SCM) based on procurement effectiveness

(5) the buffering strategy. They conclude with an exploration of
the application and utility of the “value chain architecture”
North American or Rest of the World observation point

concept in both academia and practice.

dual-role factors, undesirable outputs, and fuzzy data

2.2. Supply competence/supply chain collaboration/supply chain
integration

Bagchi, Lejeune and Alam construct a rating system representing

at least in the oil and gas industry

the potential of a nation to attract foreign direct investment

studies conducted in healthcare

(FDI) by using three supply factors specific to a country—supply

family businesses in India

environment, supply infrastructure, and absorptive capacity. Their

Core research findings

study use the combinatorics- and Boolean-based logical analysis of

oil and gas industry

data (LAD) method to capture the individual and combined impact

of the supply factors on the FDI inflow. The LAD classification
system is shown to be robust, cross-validating very well, thereby
allowing its use for prediction purposes, and permitting the
derivation of a rating system that can have various granularity
levels. By linking FDI potential with supply capability related
A study of the diffusion of agility and cluster competitiveness Cluster competitiveness

factors, the findings of this research contribute to future FDI

Global supply chain

Supply chain agility

Green supply chain

Green supply chain

decisions by firms as well as provide assistance and direction to

Reverse logistics

SCM capabilities

Healthcare SCM

strategic planners of countries that seek to enhance their attrac-

Analysis focus

management

management

tiveness as FDI destinations. As technology matures, production

networks

processes start to lack differentiation and firms look to establish

facilities globally to become more competitive, this study
enhances decision-making process pinpointing areas for focused
implementation in Indian industries using analytic hierarchy
capabilities of small and medium sized family businesses in

consideration.
A relational study of supply chain agility, competitiveness
Estimating hierarchies in the Internet global supply chain
Critical barriers in implementing reverse logistics in the

Ramanathan and Gunasekaran posit that these effects along

A novel network data envelopment analysis model for
and business performance in the oil and gas industry

Barriers analysis for green supply chain management

A structured analysis of operations and supply chain

with other collaborative factors influence the success of collabora-

A case study analysis of supply chain management

tion in supply chains. The objective of this paper is to uncover the

impact of collaborative planning, collaborative decision making of
evaluating green supply chain management

supply chain partners and collaborative execution of all supply

chain processes in the success of collaboration. We used empirical
management research in healthcare

analysis to validate our research paradigm. Data were obtained

in the oil and gas supply chains
Chinese manufacturing sectors

through a questionnaire survey of customers of a Textile company.

We used confirmatory factor analysis and structural equation
modeling (using AMOS). The results of the analysis confirm that
the factors of collaboration impact the success of supply chains
that will lead to future collaborations. Collaborative execution of
supply chain plans will also have an impact on future collabora-
networks

process

tions. Companies that are interested in supply chain collaborations

Papers

India

can consider engaging in long-term collaboration depending on

the success of current collaborations. This will help SC partners to
make investment decisions particular to collaboration.
Mirhedayatian
Dobrzykowski

Govindan and
D’lgnazio and
Abdulrahman

Jayaram et al.

He, Lai, Sun and Chen aim to explore the complicated relation-
Giovannetti

Yusuf et al.

Yusuf et al.

ships among supplier integration, customer integration and new

Authors

Kaliyan
et al.

et al.

et al.

product performance via the mediating roles of manufacturing

flexibility and service capability under the trust theory. The
Green supply chain/sustainability
Streams of theories and practices

research is based on the data from International Manufacturing

chain/oil and gas supply chain
Healthcare/service sector supply

Strategy Survey (IMSS). It is found that both supplier integration

and customer integration had positive direct effects on new
product performance. It is also found that supplier integration
has a positive impact on customer integration through the
Table 1 (continued )

mediating role of manufacturing flexibility. The study contributes

to supply chain integration by exploring the complicated relation-
ship between supplier integration and customer integration based
on the trust theory. It bears implications for both practice and
future research.
 Editorial / Int. J. Production Economics 147 (2014) 189–197
Knight, Tu and Preston extend the body of knowledge on
purchasing portfolio management, and its application in the stra-
tegic development of purchasing in an organization, and on human
resource management in the purchasing function. Purchases were
categorized according to their importance to the organization
(internally-oriented evaluation of cost and production factors) and
to the supply market (externally-oriented evaluation of commercial
risk and uncertainty). Through cluster analysis three key types of
purchase situations were identified. The skills required for effective
purchasing vary significantly across the three clusters (for 22 skills,
po0.01). They demonstrate how the survey can be adapted to
provide a management tool for global firms seeking to improve
procurement capability, flexibility and performance.
Lai, Wong and Lun examine the EPR practices undertaken by
export-oriented manufacturers and the market and financial
performance outcomes when such practices are characterized
with low and high levels of customer integration in their imple-
mentation. This article presents the survey data collected from 134
manufacturing exporters in China show positive association of EPR
practices with market and financial performance outcomes. Using
split group analysis, we found performance differences between
the high and low manufacturer groups in customer integration for
their EPR practices implementation. Particularly, the high custo-
mer integration group achieves better market performance
whereas the low group weak in customer integration reap greater
financial benefits. Managers need to understand the role of
customer integration and the financial and market performance
implications of implementing EPR practices to align with their
performance goals.
2.3. NPD/innovation/knowledge management/IT strategy
Caniato, Caridi, Moretto, Sianesi and Spina aim to develop a
comprehensive framework to investigate the integration of the
NPD process and international retail in the fashion industry with a
contingency approach. In particular, the internationalization of
retail is analyzed by considering the influence of foreign countries'
characteristics on NPD. To achieve this goal, thirteen exploratory
case studies of Italian fashion companies are performed. The cases
allow the identification of the framework variables as well as the
analysis of the relationships among those variables. Finally, three
main archetypes of behaviors are identified.
Blome, Schoenherr and Eckstein investigate the influence of
internal and external knowledge transfer activities on supply chain
flexibility. In addition, taking a contingency perspective, they
hypothesize about the moderating effects of product and supply
complexity on the relationships between knowledge transfer
and supply chain flexibility. They test their hypotheses with data
collected from procurement and supply chain professionals in
Germany. Pursuant to our expectations, they find a positive and
significant influence of internal and external knowledge transfer
on supply chain flexibility. They further confirm a negative
moderating effect of supply complexity on the relationship
between internal knowledge transfer and supply chain flexibility,
and a negative moderating effect of product complexity on the
relationship between external knowledge transfer and supply
chain flexibility. However, contrary to our expectations, we also
find significant positive effects for the remaining two moderations,
being indicative of the unique dynamics emanating from complex-
ity, able to yield both positive and negative moderation effects
contingent on the situation. Overall, these findings provide impor-
tant insight into the value of knowledge transfer activities for
supply chain flexibility, and especially into when knowledge
transfer is most effective, drawing attention to influential com-
plexity contingencies. Theoretical and practical contributions are
discussed.
193
Marsillac and Roh assess how and why changes in product
design shape process and supply chain practices and in particular,
how these changes influence global supply chain behavior and
capabilities. Utilizing a 3DCE theory base, multiple manufacturing
case studies are compared and contrasted to examine the inter-
relationships and dependencies among product, process and
supply chain behaviors and capabilities. Product design changes
were found to alter the scope and scale of process and supply
chain modifications in specific ways that alter firms' competitive
product design customization capabilities and competencies; flex-
ible, advanced process technologies; and collaborative supplier
practices. This study contributes to operations management lit-
erature by providing a rich empirical analysis of operations system
interplay. The study develops substantive research propositions
and a 3DCE theoretical framework that may be used to drive
future operations management research and in addition, provides
managerial insights that can be used to strengthen supply chain
capabilities in a global and dynamic context.
Ngai, Cheung, Lam and Ng examined the value of Radio
Frequency Identification (RFID) in the maintenance of supply
chains of aircraft parts. This model helps us gain a better under-
standing of the relationships between various costs incurred and
the RFID effect on an aircraft maintenance tracking process. Using
an RFID system, a maintenance company specializing in aircraft
parts can accumulate savings based on the assumption that the
technology can eliminate inaccuracy problems related to inventory
recording delays brought about by mishandling in the component
repair process. This case study illustrates such phenomenon
through the use of numerical assumptions, highlighting the
benefits of RFID. Further, the value of RFID in aircraft maintenance
is evaluated using sensitivity analysis, in accordance with the
parameters of the model of cost reductions in mishandling repair
components and inventory control. The findings support the
industry's acceptance of RFID technology, proving that this is
beneficial to maintenance companies of aircraft parts.
Qrunfleh and Tarafdar examines the relationship between supply
chain (SC) strategy and supply chain information systems (IS)
strategy, and its impact on supply chain performance and firm
performance. Theorizing from the supply chain and IS literatures
within an overarching framework of the information processing
theory (IPT), they develop hypotheses proposing a positive moder-
ating effect of two supply chain IS strategies—IS for Efficiency and IS
for Flexibility—on the respective relationships between two SC
strategies—Lean and Agile, and supply chain performance. The
paper contributes to the supply chain literature by providing
theoretical understanding and empirical support of how SC strate-
gies and IS strategies can work together to boost supply chain
performance. In doing so, it identifies particular types of supply
chain IS application portfolios that can enhance the benefits from
specific SC strategies. The paper also develops and validates instru-
ments for measuring two types of SC strategies and supply chain IS
strategies. For practice, the paper offers guidance in making invest-
ment decisions for adopting and deploying IS appropriate to
particular SC strategies and analyzing possible lack of alignment
between applications that the firm deploys in its supply chain, and
the information processing needs of its SC strategy.
Matsui investigates the economic effects of a product informa-
tion service when potential consumers, who are segmented by their
taste, exist in gray markets. Specifically, he constructs an economic
model that considers a multinational firm (MNF) who expands
business to a country and chooses whether to provide information
service regarding product characteristics. A primary finding in the
equilibrium is that such a situation arises especially when potential
consumers are less segmented. In this situation, the regulator in the
country should ban the parallel imports so as to enhance consumer
welfare. The result is counterintuitive and notable, because one
194 Editorial / Int. J. Production Economics 147 (2014) 189–197
might intuitively infer that gray-market trade is less desirable when
customers are more minutely segmented and the product informa-
tion service is thus more specific and necessary.
2.4. Decision-making/Japanese monozukuri/supply chain risk
management
Yacine, Chang, Nongaillard, Bouras, and Jiliu present and imple-
ment a multi-criteria decision making approach based on trust
and reputation in supply chain. Firstly, this paper defines general
trust indicators in real supply chain settings, and designs a multi-
dimensional trust and reputation model. This paper also intro-
duces K-mean clustering algorithm to remove unfair rating scores.
Then, based on this trust and reputation model, we propose a
multi-criteria decision making approach based on variable weights
and satisfaction principle. In order to validate the performance of
this approach, we simulate a practical supply chain setting with
multi-agents platform. The simulation experiments demonstrate
that the proposed trust and reputation model can effectively filter
unfair ratings from those customers who did lie and the proposed
multi-criteria decision making method can help customers make
right decisions.
Aoki, Staeblein and Tomino provide a better understanding of
monozukuri capability as a way to address the increasing product
variety in industrial firms. To this effect, we conducted a compara-
tive case study at Japanese and German automakers with more
than 40 interviews and 30 factory visits from 2007 to 2012. The
results were analyzed using a framework incorporating insights
from both open system and configurational approaches to orga-
nizational analysis. Based on the analysis, this paper examines the
characteristics of monozukuri capabilities of Japanese and German
makers, and argues for the context-sensitive nature of monozukuri
capability, as well as its potential trade-off and link to power
balance among different organizational functions. Finally, we
highlight a new understanding about the “Japanese model” based
on an integrative perspective between production, sales and
purchasing activities.
Ojha, Salimath and D’Souza explore how a firm can develop
disaster immunity—the capability to manage disaster-through the
exploitation of market acuity and supply network partnerships.
They use the hierarchy of capabilities framework and a social
capital lens to view partnerships wherein a service supply net-
work member's market acuity can create and leverage operational
partnership (fluid partnering), and strategic partnership (rela-
tional partnering) to enhance disaster immunity. Results of our
empirical analysis indicate that the influence of market acuity on
the level of disaster immunity is mediated by supply network
partnering and innovation. Moreover, their results confirm that
building disaster immunity can have a significant positive influ-
ence on the performance of service firms.
Hu and Motwani present a methodology for minimizing down-
side risks in relationship to the supplier base, supplier capacities,
purchase-order–quantity, purchase-order–time, and selling-price is
presented. Specific purchasing and selling strategies to minimize
downside risks when suppliers have limited capacities is offered.
They assume that the retailer stocks a certain quantity of a single
product globally during a certain time period and then sells it to the
domestic customers during the selling season. As exchange rate
fluctuations are involved in the overseas purchasing and because
the demand in the domestic selling is random and negatively
impacted by the selling price, the retailer needs to combine
uncertainties in both purchasing and selling to determine when
an order should be placed, what quantity must be ordered, and
what the selling price should be in order to minimize its downside
risk, i.e., the possibility of missing target expected profits. They then
consider multiple supplier candidates from different countries with
limited capacity and determine the corresponding purchasing and
selling decisions to minimize downside risks. The study is further
extended to allow multiple purchasing at any time during the
purchasing period from any supplier candidates.
Pal, Torstensson and Mattila concentrates on the constraints
faced by Swedish textile-related SMEs, primarily during the
economic crises of the past two decades (1990–1993 and end
2007–2009), and identify the antecedents and their different
degrees of influence on economic resilience. The paper adopts an
exploratory research conducted in two phases, first through a
survey and followed by a series of interviews, responded by eight
Swedish T&C SMEs. Annual reports provide a detailed account of
the financial performances of these firms. Findings provide insight
on how the responding firms considered resourcefulness, viz. cash
flow and investment finance, relational networks and material
assets, along with 'dynamic competitiveness' through strategic
and operational flexibility to be key enablers of resilience and
financial performance, mostly through generation of profitability,
cash flow/liquidity and sales turnover. Responses also highlighted
the indirect influence of the 'soft' learning and cultural aspects like
attentive leadership and collectiveness on economic resilience,
considered tacit and ingrained in small or medium-sized family
businesses. Additional process initiatives, in particular growth and
continuity strategies, were also emergent patterns to properly
utilize and direct the antecedents for resilience development.
These are beneficial for firms to understand the key areas, in
which to invest for developing resilient business models.
In view of the unprecedented devastation of the Great East Japan
Earthquake (GEJE), Fujimoto and Park identify the “weak links” in
their supply chains in terms of dependence, visibility, substitut-
ability and portability. The objectives of this paper are (1) to
critically evaluate proposed changes to damaged supply chains
such as adding inventory, adopting standardized parts, physically
duplicating line production and equipment, and evacuating whole
facilities (2) to propose “virtual dual sourcing”, in which the firm
facing supply chain disruptions caused by a disaster carefully
choose either to quickly recover a damaged line or transfer critical
design information to a substitute line. Effective implementation of
the virtual dual solution will require simultaneously enhancing the
design information's portability, the supplier's visibility, and the
firm's capabilities at process recovery and production substitution.
Shimizu, Park and Choi compare the complex risk management
practices of Japanese and Korean firms. Specifically, they examine
the following questions: (1) How do firms manage overall
organizational-level risks as well as project-level risks in the areas
of product planning and process design? (2) Are there differences
between how Japanese and Korean firms effectively manage risk
(e.g., Do they use risk managers or risk management departments
or not?), and if so, what are their impacts on management? They
find that Korean companies grant their project managers signifi-
cant authority in risk management in contrast to their Japanese
counterparts. They also find that Korean firms adopt a flexible
approach to risk management, while Japanese firms adopt a systema-
tic approach, suggesting that Japanese companies tend to focus on the
“prevention” of product-related accidents, while Korean companies
tend to focus on the “response” to such accidents.
2.5. Global network/logistics/SMEs/international SCM study
Goloni, Longoni and Cagliano report the results from an interna-
tional survey show that site competence—that is having competences
in operations beyond the production activities—is an antecedent of the
adoption of environmental and social sustainability programs and, in
turn, of higher performance improvement. Moreover, site competence
provides also a direct contribution to performance achievement
especially to pursue social sustainability.
 Editorial / Int. J. Production Economics 147 (2014) 189–197
Abdulrahman, Gunasekaran and Subramanian propose a theore-
tical RL implementation model and empirically identifies signifi-
cant RL barriers with respect to management, financial, policy and
infrastructure in the Chinese manufacturing industries such as
automotive, electrical and electronic, plastics, steel/construction,
textiles and paper and paper based products. Key barriers from our
study, with respect to these four categories, are within manage-
ment category a lack of reverse logistics experts and low commit-
ment, within financial category a lack of initial capital and funds
for return monitoring systems, within policy category a lack of
enforceable laws and government supportive economic policies
and, finally, within infrastructure category a the lack of systems for
return monitoring. Contingency effect of ownership was carried
out to understand the similarities and differences in RL barriers
among the multinational firms and domestic firms investigated.
Jayaram, Motwani and Dixit explore supply chain management
(SCM) capabilities of small and medium sized family businesses in
India. A grounded theory building approach on case studies of six
family firms in six different manufacturing sectors was used. Primary
data was collected using a structured questionnaire along with an in-
depth interview of at least one owner–manager from each company.
Also, to the extent possible, published records of the company was
also used. Key relationships among demographics, family business
variables and supply chain management capabilities were used to
create a framework. The framework identified associations among
these variables to guide data-induced propositions.
D’lgnazio and Giovannetti focuses on the relationship between a
provider's connectivity and the degree of mutual connectivity
among the operators this provider is connected to. The strategic
relevance of this relationship is clearly explained as follows: the
better connected a provider is, the easier it is to deliver its traffic
with high Quality of Service and low costs, while the less
interconnected among themselves a provider's neighbors are, the
easier it is, for the provider, to exert its bargaining power over
them. This bargaining power, of a well-connected provider over its
poorly connected network-neighbors, shows when contracting
over quality standards, access pricing and interconnection terms.
This paper estimates two separate econometric models showing
that the connectivity features of the GSCN display significant
differences in network hierarchy and complexity depending on
whether they are observed from a European, North American or
Rest of the world observation point.
2.6. Healthcare/service sector supply chain/oil and gas supply chain
Yusuf, Dauda, El-Berishy, Kovvuri and Tijjani look at the diffusion
of agility in the oil and gas industry and examines, empirically, the
agility advantage, competitiveness gain and performance benefits
of cluster members over non-members. Their results suggest that
clusters enhance and enable higher levels of agile practices.
However, whilst prior studies seem to suggest that clusters have
positive impacts on competitiveness and performance, our find-
ings indicate that there is no strong empirical basis to make a
direct link between clusters and competitiveness, at least in the oil
and gas industry. It follows from this that the universality of the
attribution of competitiveness to clusters as espoused by the
proponents of cluster theory is questionable and empirical evi-
dence certainly does not support their position in the context of
the oil and gas clusters.
Dobrzykowski, Deilami, Hong and Kim conduct a structured
analysis of OM and SCM studies conducted in healthcare and
inform three key questions (1) what are the primary topics or
themes in the extant healthcare OM and SCM literature, (2) what
are the prevalent methodological approaches employed in health-
care OM and SCM, and (3) what does the future of OM and SCM
research in healthcare hold? The questions are informed via a
195
structured analysis of healthcare papers published between 1982
and 2011 in seven esteemed scholarly journal outlets in the OM
and SCM field—Decision Sciences Journal, International Journal of
Operations and Production Management, International Journal of
Production Economics, Journal of Operations Management, Journal
of Supply Chain Management; Production and Operations Man-
agement, and Supply Chain Management: An International Jour-
nal. Through screening 9979 papers, and carefully analyzing the
literature, this study makes at least four important contributions
by (1) using quantitative methods to identify the current investi-
gatory themes, (2) quantifying methodological trends, (3) provid-
ing a qualitative narrative description of the top research themes,
and (4) qualitatively describing directions for future research.
Yusuf, Gunasekaran, Musa, Dauda, El-Berishy and Cang assesses
the link between dimensions of agile supply chain, competitive
objectives and business performance in the UK North Sea
upstream oil and gas industry. A questionnaire was designed and
administered covering important criteria of agility identified from
the literature. The questionnaire was sent to a sample of 880
supply chain managers within the UK oil and gas industry and a
net response rate of 17.8% was achieved. Statistical tests for validity
and reliability were carried out. Also, the KS statistical test for
normality was undertaken on the data. All the tests affirm that the
data came from a normal distribution. Non-response bias analysis
was conducted through wave analysis using one-way ANOVA and
no statistically significant difference was revealed by the t-test
result. By examining the whole supply chain associated with agile
practices in an important sector, the paper identifies the most
important dimensions and attributes of supply chain agility and
provides a deeper insight into those characteristics of agility that
are most relevant within the oil and gas industry.
2.7. Green supply chain/sustainability
Green supply chain management (GSCM) has become a method
to improve environmental performance. Under stakeholder pres-
sures, forces and regulations, companies need to improve the
GSCM practice, which are effected by practices such as green
purchasing, green design, product recovery, and collaboration with
patrons and suppliers. Mirhedayatian, Azadi and Saen propose a
novel network DEA model for evaluating the GSCM in the presence
of dual-role factors, undesirable outputs, and fuzzy data. A case
study demonstrates the application of the proposed model. A case
study demonstrates the applicability of the proposed model.
Manufacturing industries started adopting the green concept in
their supply chain management recently to focus on environmen-
tal issues. But, industries still struggle to identify barriers hinder-
ing green supply chain management implementation. Govindan
and Kaliyan work focuses on identifying barriers to the imple-
mentation of a green supply chain management (Green SCM)
based on procurement effectiveness. A total of 47 barriers were
identified both through detailed literature and discussion with
industrial experts and through a questionnaire based survey from
various industrial sectors. Essential barriers/priorities are identi-
fied through recourse to analytic hierarchy process. Finally, a
sensitivity analysis investigates priority ranking stability.
3. Summary of findings and future research directions
The following are the summary of findings and future research
directions:
 Managing supply chain complexity demands innovative solu-
tions by thinking outside the box. New conceptual and theore-
tical framework should be developed in order to incorporate all
196 Editorial / Int. J. Production Economics 147 (2014) 189–197
the sources of global uncertainties and their impact on the
supply chain design, development and operations.
 Product complexity plays a major role in building global supply
chain capabilities. This needs due attention from researchers
and practitioners in terms of developing analytical models for
evaluating different options of product design and their impli-
cations on supply chain capabilities in a global environment
(Jacobs and Swink, 2011; Bozarth et al., 2009).
 Three phases of supply chain (supply, manufacturing and
distribution) management involves managing complexity along
these stages. There are many factors which will influence the
supply chain complexity and some of them include product
design, process design, technology, human resources and
logistics. Managing global complexities and uncertainties in
supply chain management offers a great scope for case studies
and empirical research in order to identify the factors that will
be determine the supply chain capabilities in global complexity
(Holweg and Pil, 2008; Robertson et al., 2013). Suitable analy-
tical models should be developed for the implementation of
strategies, tactics and operational decisions through optimiza-
tion taking into account costs and benefits.
 Based on the nature of the problem, building supply chain
capabilities in global complexity and uncertainties requires
flexible and lean production capabilities. This indicates more
research is required about the role of these production strate-
gies in global supply chain management (Bozarth et al., 2009).
Survey based empirical research will be a good starting to
explore this research subject.
 Global supply chain management demands the right strategic
management based on resource-based view of the firm, transac-
tion cost economies, organizational learning, and social capital
(Hitt, 2011). Suitable theoretical and empirical studies will
support managing supply chain capabilities in global complexity.
 Managing supply chain complexity in a global environment
requires an effective communication and this in turn requires a
shared real-time information system. Information systems
(such as EDI, WWW, Internet, ERP, RFID) play a major in the
integration of functions globally along the supply chain opera-
tions. The level of integration determines the risks involved
against uncertainties. This is a promising field for developing
mathematical and simulation models for evaluating the impact
of IT/IS and their integration levels on managing supply chain
complexities.
 The effect of firm size, industry characteristics, location, pro-
duct portfolio, and configuration of the supply chain impact the
responsiveness of an organization to uncertainties. Empirical
research should be conducted and analytical models can be
developed to understand the relationship between those fac-
tors and building supply chain capabilities in global complexity,
and optimize the system variables and parameters for the given
organizational objectives.
 Sustainability of a supply chain (economical, social and envir-
onmental) has become a focus of companies around the world.
Developing conceptual models and frameworks from the per-
spective of identifying the factors in each of these areas which
will facilitate the optimization for making more accurate
decisions based on appropriate performance measures and
metrics.
 Determine suitable performance measures and metrics for
evaluating the impact of strategies, tactics and operations on
the supply chain performance under global complexity. These
could include financial, non-financial, tangible and intangible
measures and metrics.
 More empirical and case studies are required for studying the
impact of collaborative planning and decision making along the
supply chain in global complexity.
 The supply chain partnering firms have a critical role to play in
reducing the negative impact of risks in global complexity. This
needs further research about the characteristics of partnering
firms and their impact on managing supply chain capabilities in
global complexity.
 The relationship between knowledge and supply chain man-
agement in global complexity needs further research and this
could be case studies and empirical research.
 Macro factors will also influence the supply chain capabilities
in global complexity. These factors include general economic
conditions, employment level, inflation, and currency exchange
and government industrial policies. Appropriate analytical
models can be developed to capture the impact of these factors
on building supply chain capabilities in global complexity.
 The impact of organizational characteristics (culture, top man-
agement, communication/information systems, decision mak-
ing, behavior, structure, human resource, etc.) should be taken
into account while developing frameworks for managing a
supply chain in global complexity. Analytical models and
empirical research are required to study the impact of these
characteristics on supply chain performance.
 Inventory management (Just-in-time, Economic quantity, etc.)
is the core of managing uncertainties in supply chain opera-
tions given the global complexity. This area requires further
research in terms of developing suitable mathematical and
simulation models for managing stock with the objective of
reducing the negative impact of uncertainties on supply chain
performance in a global environment.
 Since logistics plays a major in global manufacturing and
services, the impact of logistics operations on supply chain
capabilities in global complexity should be studied with the
help of suitable empirical studies and analytical models.
 Suitable cost accounting system needs to be developed to build
supply chain capabilities in global complexity.
 Further research is required on determining the kind of quality
management standards and system for building supply chain
capabilities in global complexity.
The above list is not exhaustive, but a representative. Papers
appearing in this special issue will guide the researchers through some
more potential and interesting future research directions in building
supply chain capabilities under uncertainties and global complexity.
4. Conclusions
Thirty one outstanding papers covering a broad range of aspects
of building sustainable supply chain capabilities in the age of global
complexity. Selected articles of this special issue bring out the
problem associated with building sustainable supply chain capabil-
ities in the age of global complexity with the objective of improving
flexibility and responsiveness of organizations in the global market.
Innovative and high quality conceptual, analytical (models), empiri-
cal and case studies addressing the issues of design and implemen-
tation of sustainable development strategies and techniques or
related issues for building sustainable supply chain capabilities in
the age of global complexity are included. This special issue has
provided a basis of exploring the emerging theories and practices
for global complexity and thus further development and refinement
in the future would be possible.
Acknowledgments
We would like to thank all the authors who have submitted
their manuscripts for this special issue on the important subject of
 Editorial / Int. J. Production Economics 147 (2014) 189–197 197

emerging theories and practices in building supply chain system
capabilities in the age of global complexity. Also, we are most
grateful to over 300 reviewers who have generously offered their
time to provide very constructive and critical comments. Without
their help, we should have hardly realized this special issue and
our sincere thanks go to them. We would like to thank Professor
Peter Kelle (Editor of IJPE) for his kind encouragement and support
throughout this special issue editing process.
References
Bozarth, C.C., Warsing, D.P., Flynn, B.B., Flynn, E.J., 2009. The impact of supply chain
complexity on manufacturing plant performance. J. Oper. Manage. 27 (1),
78–93.
Closs, D.J., Jacobs, M.A., Swink, M., Webb, G.S., 2008. Toward a theory of
competencies for the management of product complexity: six case studies.
J. Oper. Manage. 26 (5), 590–610.
Cucculelli, M., Ermini, B., 2012. New product introduction and product tenure: what
effects on firm growth? Res. Policy 41 (5), 808–821.
Earl, P., Wakeley, T., 2010. Economic perspectives on the development of complex
products for increasingly demanding customers. Res. Policy 39 (8), 1122–1132.
Fawcett, S.E., Fawcett, A.M., Watson, B.J., Magnan, G.M., 2012. Peking inside the
black box: toward an understanding of supply chain collaboration dynamics.
J. Supply Chain Manage. 48 (1), 44–72.
Grogaard, B., 2012. Alignment of strategy and structure in international firms: an
empirical examination. Int. Bus. Rev. 21 (3), 397–407.
Hitt, M.A., 2011. Relevance of strategic management theory and resrach for supply
chain management. J. Supply Chain Manage. 47 (1), 9–13.
Holweg, M., Pil, F.K., 2008. Theoretical perspectives on the coordination of supply
chains. J. Oper. Manage. 26 (3), 389–406.
Jacobs, M., Swink, M., 2011. Product portfolio architectural complexity and opera-
tional performance: incorporating the roles of learning and fixed assets. J. Oper.
Manage. 29 (7–8), 677–691.
Levy, D., 2008. Political contestation in global production networks. Acad. Manage.
Rev. 33 (4), 943–963.
Liao, Y., Hong, P., Rao, S.S., 2010. Supply management, supply flexibility and
performance outcomes: an empirical investigation of manufacturing firms.
J. Supply Chain Manage. 46 (3), 6–22.
Park, Y., Hong, P., Roh, J., 2013. Supply chain lessons from the 2011 natural disasters
in Japan. Bus. Horiz. 56 (1), 75–85.
Park, Y., Hong, P., 2012. Building Network Capabilities in Turbulent Competitive
Environments: Practices of Global Firms from Korea and Japan. CRC Press:
Taylor & Francis Company, Boca Raton, USA.
Parkhe, A., Wasserman, S., Ralston, D.A., 2006. New frontiers in network theory
development. Acad. Manage. Rev. 31 (3), 560–568.
Reuter, C., Foerstl, K., Hartmann, E., Blome, C., 2010. Sustainable global supplier
management: the role of dynamic capabilities in achieving competitive
advantage. J. Supply Chain Manage. 46 (2), 45–63.
Robertson, C., Diyab, A., Al-Kahtani, A., 2013. A cross-national analysis of percep-
tions of corporate governance principles. Int. Bus. Rev. 22 (1), 315–325.
Vahlne, J., Ivarsson, I., Johanson, J., 2011. The tortuous road to globalization for
Volvo's heavy truck business: extending the scope of the Uppsala model. Int.
Bus. Rev. 20 (1), 1–14.
Zacharia, Z., Nix, N., Lusch, R., 2011. Capabilities that enhance outcomes of an
episodic supply chain collaboration. J. Oper. Manage. 29 (6), 591–603.
Guest Editors
Angappa Gunasekaran
University of Massachusetts, Dartmouth, USA
E-mail address: agunasekaran@umassd.edu
Paul Hong n
University of Toledo, USA
E-mail address: paul.hong@utoledo.edu
Takahiro Fujimoto
University of Tokyo, Japan
E-mail address: fujimoto@e.u-tokyo.ac.jp

n
Corresponding author.