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Horizontal Collaboration Business Model Towards a Sustainable I4.0 Value Creation
Abstract
Sustainable manufacturing 4.0 brings a new perspective in disruptive business models. As one of the three dimensions of Industry 4.0, horizontal collaboration integrates within I4.0 value creation network. In order to cope with this challenge, horizontal collaboration displays a variety of factors for enterprises to create or develop joint projects such as knowledge transfer, new product and process development, cyber-physical shared resources. Hence, this study presents a horizontal collaboration business model for value creation as part of a sustainable manufacturing 4.0 environment. For this to be achieved, horizontal collaboration variables must be presented within a business model structure. This development is based as of three business model components (1) content, (2) structure, and (3) governance; from which horizontal collaboration variables have been grouped. This document presents a CODAS-HTFLS-Mahalanobis approach to identify horizontal collaboration top variables grouped within the business model components, thus creating a value creation network.KeywordsHorizontal CollaborationValue creation networkMCDM methodsMahalanobis distanceBusiness Model
... To enable sustainable manufacturing, enterprises must consider environmental and economic implications within the supply chain. As explained by [11], enterprises focus on strategies to increase the efficiency of manufacturing processes, the use of raw materials, or the use of recovered or reused materials, as well as horizontal collaboration business models to engage in innovative projects for sustainable value creation in manufacturing [12]. Key factors include the involvement of decision makers in the considerable number of factors that need to be taken into account, from production planning, manufacturing processes, and innovation to supply chain design and products. ...
... • Present the proposed CODAS-Hamming-Mahalanobis method developed by [12]. • Present the proposed green energy indicators, their measurements, and items identified by [21]. ...
... From the decision makers that responded to the survey, their job titles ranged from Assistant Director (1), Quality Coordinator (1), Leader (1), Manager (2), General Manager (6), Director (11), CEO (2), Owner (3), and Teacher (4). Moreover, their level of education was Technician (1), Bachelor's degree (16), Specialization (2), and Master (12). ...
As enterprises look forward to new market share and supply chain opportunities, innovative strategies and sustainable manufacturing play important roles for micro-, small, and mid-sized enterprises worldwide. Sustainable manufacturing is one of the practices aimed towards deploying green energy initiatives to ease climate change, presenting three main pillars—economic, social, and environmental. The issue of how to reach sustainability goals within the sustainable manufacturing of pillars is a less-researched area. This paper’s main purpose and novelty is two-fold. First, it aims to provide a hierarchy of the green energy indicators and their measurements through a multi-criteria decision-making point of view to implement them as an alliance strategy towards sustainable manufacturing. Moreover, we aim to provide researchers and practitioners with a forecasting method to re-prioritize green energy indicators through a linearity factor model. The CODAS–Hamming–Mahalanobis method is used to obtain preference scores and rankings from a 50-item list. The resulting top 10 list shows that enterprises defined nine items within the economic pillar as more important and one item on the environmental pillar; items from the social pillar were less important. The implication for MSMEs within the manufacturing sector represents an opportunity to work with decision makers to deploy specific initiatives towards sustainable manufacturing, focused on profit and welfare while taking care of natural resources. In addition, we propose a continuous predictive analysis method, the linearity factor model, as a tool for new enterprises to seek a green energy hierarchy according to their individual needs. The resulting hierarchy using the predictive analysis model presented changes in the items’ order, but it remained within the same two sustainable manufacturing pillars: economic and environmental.
... Horizontal collaboration fosters a sustainable manufacturing environment, which can benefit SMEs by creating a business model that adapts to and enhances a viable financial joint venture. In a previous study, we designed and created a disruptive business model for SMEs to develop and plan strategies for implementing joint projects, to maintain or gain new market share and new product development, among other benefits [22]. The COHRV model was developed and validated through a multi-criteria decision-making proposed methodology, based on a series of techniques including: ...
... The methodology proposed and verified by [22], resulted in the top 30 horizontal collaboration factors, which were then grouped into three business model components: content (what components), governance (who components), and structure (how components), as shown in Table 1. For more details about the validation, refer to [22]. ...
... The methodology proposed and verified by [22], resulted in the top 30 horizontal collaboration factors, which were then grouped into three business model components: content (what components), governance (who components), and structure (how components), as shown in Table 1. For more details about the validation, refer to [22]. The COHRV model is seen as a horizontal collaboration framework for enterprises to create and develop joint projects, such as a strategy for sustainable manufacturing innovation. ...
For the implementation of Industry Industry 4.0 (I4.0), companies need the commitment of several departments, knowledge and technology within data management, cyber physical systems, and Internet of Things, among other pillars of I4.0. This industrial revolution (I4.0)offers opportunities for the development of competitive advantages, new market positions within a supply chain, new product design and processes, and manufacturing sustainability. Regardless of such benefits, for small and mid-size enterprises (SMEs) it represents a challenge, because they lack specific capabilities, qualified human resources, and technological and/or financial support. The challenges for SMEs from industrial sectors can be dealt with by means of strategic joint ventures, known as horizontal collaboration. Seen as the new vertical collaboration, horizontal collaboration offers a way for enterprises to combine their strengths in order to gain competitive advantages and develop new market opportunities. This paper presents the Resources and Value Horizontal Collaboration Model, “COHRV”, for its acronym in Spanish, structured as a guide to merge enterprises’ strengths such as knowledge transfer, qualified human resources, technology, and more. The COHRV model was designed as a disruptive business model, presenting a new perspective for horizontal collaboration projects between SMEs. To show the effective applicability of the COHRV model, data obtained from nine SMEs in a previous case study were used. The objective was to observe how the COHRV model works as a framework to create new strategies for SMEs, to work on a sustainable manufacturing venture.
Highlights:
• A book offering an overview of the broad field of research on the topic is reviewed.
• The 2030 sustainable development goals mapped into the book are discussed.
• Ten chapters featured in the book are further elaborated.
• A thorough assessment of the book is provided.
• Book supports individuals perceiving I4.0 as a means for sustainable manufacturing.
Sustainable development implies establishing principles, objectives and strategies within organizations that impact the organizational culture in innovation. However, a method needs to be defined in order to know the critical factors that allow the strengthening of the organizational culture in innovation with emphasis on Industry 4.0 and sustainable development in a highly changing environment for a specific organization. In this sense, the paper identifies the set of factors that are documented through reviews and analysis of the literature, subsequently proposes a Multi-Criteria Decision Making (MCDM) methodology using hesitant fuzzy linguistic term sets (HFLTS) and combinative distance-based assessment (CODAS), where factors are evaluated to obtain a score and hierarchy value. Weight values were calculated using the ambiguity reduction method, which incorporates the knowledge acquired by researchers in organizational culture of innovation and expert judgment under the Saaty scale used in analytic hierarchy process (AHP). Finally, a model of organizational culture in innovation is proposed that can be used by organizations to focus strategies on the factors of greater hierarchy and thereby optimize their resources considering the sustainable development and the Industry 4.0 approach.
Digital transformation dominates the practical and scientific discourse. Still, many companies do not have a clear plan on how to approach it. Particularly, small- and medium-sized enterprises struggle to initiate their digital journey as they lack resources and expertise. In response, we examine how five companies use business process management (BPM) to implement digital transformation. We perform a qualitative interview study, and analyze the capabilities of BPM based on six requirements of digital transformation. Thereby, we carve out 17 recommendations, which must be adapted according to companies’ meta objectives. We derive three strategy archetypes to serve as implementation blueprints.
The technological transformation has led to the introduction of mini computers as wearable computers which facilitate users to use the Internet, different applications, messaging, and for calls all on one platform. The focus of these wearable computers in earlier studies has been on consumers and technical aspects, and their application has not been explored from an organizational perspective. This means that the recent introduction of wearable technology has great potential, which is untapped in the organizational context, especially for supply chain collaboration (SC). In this study, wearable technology is thought to offer huge potential for organizations in SC. Therefore, the purpose of this study is to empirically examine the role of wearable technology i.e. Smartwatch in enhancing collaboration among supply chain members with mediating roles of green training (GT) and emotional intelligence (EI). The population of this study is the pharmaceutical industry in Pakistan. Simple random sampling method has been used to collect data from 150 sample size. Data have been collected through offline and online survey method. Data have been analyzed through partial least square-structure equation modeling (PLS-SEM) technique. The results of this study have empirically tested the established conceptual framework. Continuance intention to use smartwatch has a positive effect on SC. Furthermore, GT and EI have mediating roles between continuance intention to use smartwatch and SC. It is concluded that the continuance intention to use smartwatch will increase SC. GT and EI will strengthen the relationship between continuance intention to use smartwatch and SC. The use of wearable technology will motivate employees to communicate rapidly and to monitor their supply chain activities using web-based and other applications. This study has practical implications in organizations and theoretical contribution to literature.
The supplier appraisal process is one of the most important decision problems for companies focused on improving supply chain costs. Supplier selection is typically a multi-criteria decision making (MCDM) issue, as there is a lot of uncertain information. In order to overcome this issue, The Pythagorean Fuzzy Set is applied to handle the uncertainties involved in comparing the alternatives, criteria and opinions of decision makers. At the same time, a potential of Dimensional Analysis is a technique which deploys an association of the criteria capturing the interrelationship normally present in MCDM. In this sense, the purpose of this paper is to evaluate the suppliers in a supply chain cycle using Pythagorean Fuzzy Set and Dimensional Analysis. Finally, the applicability of the proposed method is illustrated through numerical examples, and a validation via Spearman correlation and Cronbach’s alpha.
With increasing numbers of nodes and links in supply network relationships, understanding partnership management and the required level of collaboration is important for sustainable supply network alignment. This study explores the impact of partnership orientation on partnership commitment and firm performance using a model based on social capital theory and resource dependence theory. It aims to understand the appropriate partnership orientation for the desired level of commitment and firm performance, including innovation, operational, and financial performance. Using a survey of 423 respondents representing three different partnership structure types (supplier, buyer, and parallel-aligned firms’ perspectives), the relationship between partnership orientation and commitment in enhancing firm performance is investigated using structural equation modeling. Additional analysis identifies the moderating role of commitment and investment exchange on performance. The findings show that positive relationships between both investment and contractual-based partnership orientation positively contribute to partnership commitment, but the direct association between partnership commitment and firm performance type varies by partnership structure. Furthermore, (i) investment exchange level moderates the relationship between commitment and innovation and operational performance regardless of partnership structure type, (ii) negative investment exchange signals higher firm performance from the buyer firm’s perspective, and (iii) positive investment exchange is absolutely necessary for financial performance from the supplier firm’s perspective.
Libya is one of the arid regions of the world, and it is facing a serious water supply shortage due to the increase in both population and water consumption in various sectors. Ground water is the main source of water in Libya, but it is limited and over exploited. Desalination of sea water is one of the possibilities for Libyan government to meet the problem of water shortage. Selecting the best location of desalination plant is important and a complex process because it is related to a variety of criteria. The aim of this paper is to select the best location of desalination plant in the northwestern coast of Libya. The selection of the best location was done by two main steps. The first step based on the criterion of minimizing water transportation cost, and the second step considered the influence of the external criteria on the location selection. The results of the case study show that the best location is the capital city (Tripoli) with respect to the assessment of COmbinative Distance-based ASsessment (CODAS) method. The sensitivity analysis was conducted to evaluate the robustness of the selected locations and it reveals that the CODAS method is stable and efficient to deal with multi-criteria decision-making problems. This study provides a suitable and useful tool for the decision makers concerning the optimum location of desalination facilities.
Logistics service providers become increasingly aware of the need to collaborate to face challenges such as globalization and the heightened expectations of customers. This paper focuses on horizontal cooperation between logistics service providers in road transportation and introduces two novel conceptual models. Firstly, a decision framework for the development and management of horizontal logistics alliances is presented. This framework provides support to logistics service providers considering horizontal collaboration and allows for the analysis of the decision process underlying horizontal logistics alliances. The cyclical framework consists of five stages and attributes a central position to continuous evaluation. Secondly, an easy-to-use typology is proposed which defines six horizontal collaboration types based on their activity scope and degree of structural intertwinement. The typology provides logistics service providers with insights in the various horizontal collaboration types, including some key management questions. Both models are validated by knowledgeable practitioners and are applied to two real-life case studies.
Business model innovation (BMI) is core for entrepreneurship in
industrial or service sectors, including tourism. Our submission focuses
on the development of the field of BMI. We perform systematic
literature review based on 316 valid papers indexed on ISI Current
Contents, published between 2000 and 2015.
Bibliometric results indicate a significant increase in the number of
papers, journals and authors, and lack of specialized journals/authors
publishing regularly in the BMI field. Thematic analysis reveals that BMI
has been extensively studied, however there is rarely any cumulative
knowledge effect between authors. Most researches were conceptual
or qualitative, however few constructs have been defined and tested to
enable quantitative studies.
We conclude that there had been little evolution in terms of
theoretically developing the BMI field. We argue that there is a need to
adopt already existing conceptual models, develop constructs and
validate them with primary quantitative data and advanced statistical
analysis, in different research contexts.
The theme of inter-organizational relationships involving SMEs (SME IORs) has generated a relevant body of knowledge that has not been systematized yet. This article carries out a systematic literature review on SME IORs using bibliometric techniques, aiming to provide an overview of the main subfields of research and to identify promising paths for future research that can contribute to develop a more comprehensive body of knowledge around SME IORs.Four factors of thematically connected research emerge, which represents the main subfields of inquiry within the field of SME IORs. Insights regarding the content of these topics, the different theoretical foundations of the literature on SME IORs, and potential paths for future research are discussed.
Several research surveys have shown that improvement of inter-enterprise processes is one of the major issues in Supply Chain Management. In this context, some researchers have examined the theoretical implications of supply chain collaboration through unilateral supply policies, while others have used theoretical models to examine bilateral information exchange rather than unilateral policy reasons. Some recent studies have stressed on a better characterization of the relationship in Collaborative Supply Chains. In this context, this paper aims to determine how a relation between two partners can be characterised and how the contribution of the relation to the performance can be evaluated. To achieve this goal, we have developed an integrated framework that is able to characterise a dyadic collaborative relation and evaluate the value creation of this relation according to several different attributes.
Trust in the supply chain leads to an increase in supply chain collaboration (SCC) and subsequently in collaborative advantage (CA) and consequently affects firm performance positively. Supply chain collaboration is an effective collaboration of supply chain partners to succeed in a common goal. Concisely, the collaborative advantage is the relative competitive advantage among companies. It refers to the gathering, exchanging and improving the resources among the collaborating partners. This research aims to clarify the relationship between trust in the supply chain and firm performance through supply chain collaboration and collaborative advantage. Analysis results show that trust in the supply chain positively affects supply chain collaboration. Although the proposed model suggested a positive relationship between trust in the supply chain and collaborative advantage, according to the hypotheses test results, this relation is not statistically significant. This means that trust in the supply chain has no direct effect on the collaborative advantage, but has an indirect effect through supply chain collaboration on the col-laborative advantage. Finally, the positive effect of collaborative advantage on firm performance has been found to be statistically significant.
Small and medium sized enterprises (SMEs) are the economic backbone of many countries. In order to survive and compete in dynamic markets, SMEs need supply chain intelligence (SCI) as a structured tool to gather and analyse information of business activities and the market environment. However, studies on the concept are scare, in particular its application to the SME sector. This research study examines the level and extent of SCI practices among SMEs and their impact on their competitive advantage and business performance respectively. In order to assess these, a survey was conducted among 813 SME owners and managers from various business sectors and subsectors. Results showed that majority of the SMEs have the right culture and some form of intelligence activities including formal intelligence unit. These measures were developed with top management support. By emphasising its importance among employees, SCI activities will improve SMEs' competitive advantage and performance.
Purpose
The purpose of this paper is to understand the link between trust, technology and supply chain collaboration and their impact on firms’ operational performances.
Design/methodology/approach
Based on extant literature, a hypothesized model was developed and tested using structural equation modelling (i.e. AMOS). A survey was conducted to collect data from the supply chain managers of fast-moving consumer goods (FMCG) companies (more precisely in the food and beverage sector) in Thailand.
Findings
The study findings suggest that through an ongoing relationship, trust evolves and is shaped over time and can form a competitive capability that may not be easy for competitors to replicate. Both trust and technology are found to have significant impact on supply chain collaboration and on firms’ operational performances.
Research limitations/implications
One of the major limitations of the study is that the data were obtained from one single economy, which restricts its generalizability across other economies. The study was a cross-sectional and descriptive sample of the FMCG industry at a given point in time. A more stringent test of the relationships between trust, technology, supply chain collaboration and operational performance requires an in-depth case study or longitudinal study.
Practical implications
The findings will enable supply chain managers in the FMCG industry to understand the strategic role of trust and technology in building supply chain collaboration that leads to superior operational performance.
Originality/value
The paper clearly confirms that trust and technological capabilities are significantly associated with supply chain collaboration and operational performance. Most of the earlier supply chain collaboration research streams are based on developed economies where supply chain collaboration challenges are predictable, while the current study conducted is based on a developing economy setting. This study facilitates the author’s understanding of the challenges in managing supply chain collaboration within a developing economy.
La aplicación del Sistema de Mahalanobis Taguchi (M TS) en este estudio tiene como objetivo diagnosticar y predecir variables que influyan en el perfil de éxito de estudiantes egresados de la UTCJ, en carreras de Técnico Superior Universitario y en diferentes Licenciaturas e Ingenierías. La distancia de Mahalanobis (DM) se usa para medir las diferentes distancias de las variables de estudio, medir la variabilidad de dichas distancias respecto a su centroide y graficar para visualizar su comportamiento, sus cúmulos o acumulamientos y poder definir su correlación. La DM toma en consideración las correlaciones entre variables, analizando patrones de comportamiento. MTS ayuda a determinar las combinaciones más óptimas, en base a arreglos ortogonales, para calcular las distancias, simplificando combinaciones a trabajar. El planteamiento del problema lleva a la necesidad de investigar nuevas variables que puedan ayudar a encontrar un perfil de éxito a egresados de esta institución y trabajar en las sugerencias, para brindar educación y entrenamiento, con el objetivo de que los egresados tengan herramientas más sólidas al buscar empleo. Mediante una escala de evaluación, se procede a trabajar con la DM, para lo cual se elaboran matrices pertinentes para dichos cálculos. El método de Taguchi, para el cálculo de las DM , lleva arreglo LI6, para calcular las diferentes distancias, acorde a los arreglos ortogonales. Posteriormente se llevó a cabo el cálculo de la señal ruido, para nivel 1 y nivel 2, donde se obtuvieron los resultados requeridos.
A key factor to attain success in any discipline, especially in a field which requires handling large amounts of information and knowledge, is decision making. Most real-world decision-making problems involve a great variety of factors and aspects that should be considered. Making decisions in such environments can often be a difficult operation to perform. For this reason, we need multi-criteria decision-making (MCDM) methods and techniques, which can assist us for dealing with such complex problems. The aim of this paper is to present a new COmbinative Distance-based ASsessment (CODAS) method to handle MCDM problems. To determine the desirability of an alternative, this method uses the Euclidean distance as the primary and the Taxicab distance as the secondary measure, and these distances are calculated according to the negative-ideal point. The alternative which has greater distances is more desirable in the CODAS method. Some numerical examples are used to illustrate the process of the proposed method. We also perform a comparative sensitivity analysis to examine the results of CODAS and compare it by some existing MCDM methods. These analyses show that the proposed method is efficient, and the results are stable.
With the complexity of technology increasing and globalisation becoming more common, the importance of collaboration in innovation implementation has increased in recent years. The literature has investigated collaboration in various ways, but the scope of the research has been fragmented and mainly confined to single- or similar-country contexts. To address this research gap, this paper investigated the different innovation strategy configurations in vertical, horizontal and international collaborations in two innovative countries: Korea and Germany. Empirical analyses using Korean and German Community Innovation Surveys suggest that (1) vertical collaboration is implemented when a firm engages in innovation to optimise existing core competencies, (2) horizontal collaboration with partners outside a value chain can play an important role in identifying new opportunities in a new market, and (3) the fit between innovation strategy and collaboration type can be differently configured across countries. Based on these findings, this paper suggests practical implications for managers in firm.
Logistics collaboration has emerged a prevalent strategy to mitigate challenge individuals and organizations encounter. A successful collaboration, however, depends on certain trustworthy behaviors partner exhibit. To that end, understanding aspects constituting behavioral uncertainty and mechanisms by which such aspects affect partner trust is a necessary. This necessity counts on emergent behavioral trust uncertainties, constituted by partner’s actions and interactions occurring during collaboration. While this is a necessary requirement, most of the studies in the literature lack to take into account the influence of behavioral uncertainty on collaboration and partner trust. To that effect, this paper uncovers outlined limitation by establishing behavioral factors influencing partner trust in operational stage of logistics collaboration. To accomplish this objective, a systematic literature review (SLR) is deployed to consolidate research domains of logistics, supply chain, collaboration, and trust. SLR proceeds by defining a review protocol, followed by a search process conducted in 5 databases using 20 search terms on articles published between 2001 and 2015 inclusively. Among findings this SLR has revealed are four behavioral factors and thirteen criteria proposed to affect partner trust. Additionally, these factors constitute success and measurable criteria needed for empirical investigation which may employ experimental and/or case-study methods. Moreover, synthesized factors extend further an understanding of behavioral trust in ad hoc collaborative networks, a large part of which being supported by networks of humans and computers.
Small and medium enterprises (SMEs) represent the backbone of economic development of any country. In a turbulent dynamic market and changing environment, SMEs need to gain strategic information on its environments because failure to do so might pose a threat to firm's survival. Implementing supply chain intelligence (SCI) as a structured tool in gathering and analyzing information from 360-degree view of business activities is critical to businesses strategic decisions and performance in surviving and competing in dynamic markets. In spite of increasing interest and study in intelligence, discussion about the concept and its potential application to the SME sector was minimal from mainstream literature. Thus this study examines the level and extent of SCI practices amongst SMEs in strategic decisions and its contribution to enhance businesses and supply chain performance.
Vega et al. [1] analyzed the influence of the attributes’ dependence when ranking a set of alternatives in a multicriteria decision making problem with TOPSIS. They also proposed the use of the Mahalanobis distance to incorporate the correlations among the attributes in TOPSIS. Even in those situations for which dependence among attributes is very slight, the results obtained for the Mahalanobis distance are significantly different from those obtained with the Euclidean distance, traditionally used in TOPSIS, and also from results obtained using any other distance of the Minkowsky family. This raises serious doubts regarding the selection of the distance that should be employed in each case. To deal with the problem of the attributes’ dependence and the question of the selection of the most appropriate distance measure, this paper proposes to use a new method for synthesizing the distances to the ideal and the anti-ideal in TOPSIS. The new procedure is based on the Analytic Hierarchy Process and is able to capture the relative importance of both distances in the context given by the measure that is considered; it also provides rankings, which are closer to the distances employed in TOPSIS, regardless of the dependence among the attributes. The new technique has been applied to the illustrative example employed in Vega et al. [1].
Horizontal collaboration is the pooling of logistics activities and consolidation of supply chains between two or more manufacturers for achieving mutual benefit. The concept of establishing horizontal relationships between supply chain partners has been first introduced by the European Union in 2001. Often, horizontal co-operation can lead to substantial economic benefits where it is a means of sharing risk, making cost savings, increasing investments, pooling know-how, in addition to the ecological benefit behind. To evaluate possible research directions in this area, this paper provides a review of quantitative models developed in literature for successfully establishing horizontal relationships between competing/non-competing partners. The paper also presents a solution framework for integrating green concepts along with the collaboration problem.
Purpose
– The purpose of this article is to provide academicians and practitioners alike with a theory-based framework regarding horizontal collaboration in logistics. The proposed tool is based on an incremental perspective, according to two main dimensions: mutual trust among partners and the extent of the cooperation.
Design/methodology/approach
– This study used a “synthesising” approach to gauge potential contributions previously spread across different streams of research and disciplines that are now integrated into the framework. We conduct a deep literature review to characterise the horizontal collaboration phenomenon along two levels of analysis. In doing so, we examined relevant literature in the field of horizontal cooperation in logistics to critically appraise aims of, impediments to and existing models for horizontal collaboration. Additionally, we reviewed seminal literature of four organisational theories to assess their potential to contribute to the theoretical foundations of the growing topic of horizontal collaboration. Transaction Cost Economics, Social Exchange, Resource Dependence and Social Dilemma represent the theoretical foundations to cast light to how to design and implement inter-organisational horizontal initiatives.
Findings
– The proposed tool organises horizontal collaborations within three steps for each of the two levels of classification: trust and extent of the cooperation. The organisational theories reviewed play different roles to help in different stages of the horizontal collaboration. Additionally, for each combination of trust/extent of the cooperation coherent pairs of aims of the collaboration and assets that are to be shared are defined.
Research limitations/implications
– The article represents the first attempt to analyse horizontal collaboration from within the discipline itself and from the wider field of SCM through other well-established theoretical lenses. The proposed tool has shed some light into the black box of (un)successful horizontal collaboration, but it is theory based – which represents its main limitations – thus, requiring further testing of the research streams suggested in the paper.
Practical implications
– The article not only gives insights into theoretical challenges of horizontal collaborations that needs further investigation but is also useful to companies involved in horizontal collaborations by helping define coherent assets that are to be shared to achieve specific goals. In its more theoretical underpinning, the framework can also inspire the partnership philosophy and help sketch a collaborative evolutionary path.
Originality/value
– The lack of a theoretically robust landmark that could help understand, design and implement horizontal collaborations has been defined as a major theoretical and practical shortcoming. The article represents the first contribution aimed at filling that gap.
The majority of companies involved in value delivery in the Swedish housing industry are Small-and Medium-sized Enterprises (SME). An SME is often managed in an informal way with focus on sales and production. Many SME are also financially vulnerable as they are strongly dependent on a few key customers and key products. As variation will always exist, SME should learn to deal with variation instead of try eliminating it. This paper hypothesises that structural flexibility in SME supply chains through horizontal collaboration leads to a regional environment of economical growth from which all active SME will benefit. The hypothesis is examined through two case studies; a Swedish supplier network that has worked together six years and a four year old Norwegian supplier network. A benefit of collaboration is knowledge sharing that lessens the economical strain of keeping up with the "latest". Other examples of collaboration are shared production resources in case of low capacity. Collaboration within supplier tier networks is considered to mark the emergence of a "collective strength" that improves individual suppliers bargaining position towards their customers. This evolution is considered an indication of the emergence of a "Lean Enterprise" within the house building sector.
Abstract Cooperation in logistics is widely recognised as one of the core challenges for the next future. In this context, horizontal collaboration is believed to be one of the innovative solutions to effectively tackle the growing logistic challenges from both, environmental and economic points of view. This innovative topic is quickly gaining momentum but the literature in the field is still in its infancy. As a consequence, a methodological tool to support project and implementation of successful horizontal partnership is still not available. In this paper, we propose a comprehensive framework based on an extensive literature review of both, scholars and practitioners. The proposed tool is based on an incremental perspective, according to which mutual trust among partners is developed through continuous collaboration. More specifically, three steps are proposed: operational, tactical and strategic. For each of them a coherent couple of aims and shared assets is defined.
ISSN 2083-4950 (online)
Detecting outliers in high dimension datasets remains a challenging task. Under this circumstance, robust location and scale estimators are usually proposed in place of the classical estimators. Recently, a new robust estimator for multivariate data known as minimum variance vector (MVV) was introduced. Besides inheriting the nice properties of the famous minimum covariance determinants (MCD) estimator, MVV is computationally more efficient. This paper proposes MVV to detect outliers via Mahalanobis squared distance. The results reveal that MVV is more effective in detecting outliers and in controlling Type I error compared with MCD.
Even though collaboration has obtained increasing popularity in the supply chain (SC) arena, its effectiveness has not been measured empirically at a national level. In this paper, we refine, validate, and then employ an instrument that measures (1) the extent of information sharing, joint planning, goal congruence, personal interaction, and trust between SC partners and (2) manager perception of the effectiveness of this collaborative relationship. These factors along with several firmspecific variables that the literature has suggested (i. e., number of employees, annual sales revenue, percent of partners involved in collaboration, years in collaboration, and length of current agreement) are used to explain the effectiveness of SC collaboration using regression analysis. Our research points out that larger firms (measured by sales revenue and the number of employees) and firms that collaborate extensively tend to value the effectiveness of collaboration more highly. Interestingly, we could not confirm a link between perceived effectiveness and length of experience with collaborative SC efforts. Second, after adjusting for significant firm-specific effects, our results confirm that extensively sharing information, joint planning, and using information systems collaboratively tend to increase the perceived value of collaboration. Finally, although goal congruence was linked to collaboration effectiveness, personal interaction and trust were not found to be statistically significant.
In this paper 69 randomly selected research papers published in the refereed journals in the area of supply chain collaboration has been reviewed. The papers are classified based on the year in which they published, based on specific countries, the journal in which they published, specific industry type, and finally based on research methodology. Based on the analysis of reviewed papers a total number of 28 factors affecting supply chain collaboration have been identified. Supply chain information sharing found to be highly talked factors for effective supply chain collaboration, therefore the papers further analyzed in the context of the role of information sharing in supply chain collaboration. The discussion, conclusions and future research directions have also been provided in this paper.
The purpose of this work is to describe the development of a software cluster in the metropolitan area of Guadalajara, Mexico. A Logit Model is used to calculate the probability for a company to innovate based on collaboration, learning, and public policy support programs. The results illustrate that collaboration with multinational companies, suppliers, inter-organizational cooperation for worker training, and formal participation in business associations promotes innovation. The companies’ promotion of learning and training processes to improve business capabilities also plays a central role; however, public policy programs have a major impact on innovation in software small and medium enterprises (SMEs).
This study on the factors affecting the adoption of supply chain management (SCM) practices develops four hypotheses based on a literature review, and tests them using survey data of Brazilian electro-electronic firms. The results reveal the big picture of the SCM practices in the sector and suggest that contextual factors such as size, position and bargaining power affect the adoption of SCM practices, which are also more customer oriented. Sector characteristics are very important in analysing SCM practices. Contrary to the findings of literature, the relationship between competitive priorities and SCM practices was not supported statistically.
Despite its infancy, some authors are already suggesting that the writing may be on the wall for supply chain collaboration. It has been reported that supply chain collaboration has proved difficult to implement; there has been an over-reliance on technology in trying to implement it; a failure to understand when and with whom to collaborate; and fundamentally a lack of trust between trading partners. This paper proposes that a supply chain segmentation approach, based on customer buying behaviour and service needs, is the most appropriate context for collaboration. The paper also proposes the need for a greater understanding of the elements that make up supply chain collaboration, and in particular how the relevant cultural, strategic and implementation elements inter-relate with each other.
Purpose
The purpose of this paper is to clarify the architecture of supply chain collaboration and to propose a design for supply chain collaboration (DfC), which enables participating members to create and develop key elements of the proposed architecture.
Design/methodology/approach
The paper offers a concept for designing the five elements of the architecture of supply chain collaboration, namely collaborative performance system, decision synchronisation, information sharing, incentive alignment, and innovative supply chain processes. A case study was carried out to illustrate the applicability of the framework.
Findings
DfC was confirmed using a case to evaluate a supply chain system in which the chain members concurrently designed the architecture of supply chain collaboration. The findings show that design for collaboration facilitates the chain members to have a broader view to develop and ensure an effective collaboration.
Research limitations/implications
Secondary data were collected to describe the collaborative practice in the company. Future research is required to elicit primary data using interview or focus group representing key players of collaboration for the purpose of model enhancement and action research.
Practical implications
The concept of DfC can be used by the chain members in the discussion forum to (re)design appropriate settings of the five elements of the architecture that lead to better overall performance.
Originality/value
Previous research has indicated the emerging school of design for collaboration. However, current researchers pay little attention to integrating and revealing the interactions of key design elements that drive the effectiveness of the chain members to realise better performance. The paper, for the first time, offers a novel framework for understanding DfC.
Purpose – The purpose of this paper is to review the fundamental concept of collaborative supply chain (CSC) and discuss the facts that a road to success in the process of design, implementation and operations of a supply chain is the identification of superior strategies and clear objectives. One of these strategies is known as CSC, that needs to be studied, evaluated and implemented. Design/methodology/approach – Discusses key elements of CSC and the fact that the vision for the CSC can be built upon principles as such as automation, information, trust and commitment, quality leadership, customer focused, collaborative and e-collaborative partnerships, and integrated information system. Findings – The paper finds that to make supply chain management successful, management must be committed to high standard of performance, trust including long-term collaborative relationships that can deliver results independent of industry and sector type. Originality/value – Owing to the fact that a better management of production system is related to the full understanding of the technologies implemented and the system under consideration, the CSC and its related components are discussed.
In the current strong competitive industrial context, enterprises must react quickly to the market changes. In order to face this problem, enterprises must be flexible and collaborate together. Both the flexibility and collaboration requires high communication between various information systems at one hand and on the other hand the compatibility of their practices. Collaboration is mainly applied for inter-organizational purposes and that collaboration is known as vertical collaboration. In this research, the impact of the horizontal collaboration in the flexible supply chains has been studied. The flexible supply chains (FSCs) and horizontal collaboration between them has been modeled by using ARENA 7.0, a simulation package. The novelty of the paper is that it proposes the new paradigm of horizontal collaboration with flexible supply chains (FSCs). Horizontal collaboration can be a key issue for other enterprises to select the new business opportunities by exercising the collaboration. The total cost of supply chain is taken as the performance measurement. In this study, the total cost of a supply chain includes the ordering cost, inventory cost, and back order cost of all the nodes of flexible supply chain. To show the impact of collaboration, a numeric example has also been solved where two FScs have been considered with different inventory policies (s, S and s, Q) and distributor node has been deemed for collaboration of those supply chains.
Collaborative Transportation Management (CTM) aims to reduce inefficiency, avoid logistics bottlenecks and provide a mutual outcome to all parties through sharing of information and resources such as common transportation mode between two carriers on the same level. Collaboration between carriers or Horizontal CTM between truck carriers in Indonesia currently hasn't much been discussed or developed. Thus this paper proposed a conceptual framework for horizontal collaboration among truck freight carriers based on two case studies. This model will help to improve understanding of the behavioral aspect study of carriers' decision to collaborate with other carriers on the same level in the trucking industry. The behavioral aspects are limited to critical enablers to the human side of CTM, and operational aspects are limited to the hierarchical decision-making levels (strategic, tactical, and operational). The conceptual framework presented in this paper proposed that critical enablers in the human side of CTM will assist the carrier in selecting other carriers as a collaboration partner on the horizontal CTM level. The collaboration outcome resulted in the form of an increase or decrease of trust which is relevant for the continual of the horizontal collaboration.
Purpose
Despite the large literature base associated with dyadic collaboration, its knowledge-based antecedents are still not well understood. The purpose of this paper is to better understand those antecedents and to explore why the supply chain (SC) literature has found mixed results regarding knowledge transfer and absorptive capacity in dyadic collaboration research.
Design/methodology/approach
The critical incident technique (CIT) was utilized, using qualitative semi-structured interviews to refine a proposed research model. In total, 43 executives were interviewed each providing a description of both a successful and an unsuccessful SC dyadic collaboration. The interviews were analyzed to better understand the knowledge-based antecedents of buyer–supplier collaboration.
Findings
This study suggests that dyadic collaboration and subsequent outcomes are improved by successful knowledge transfer. Additionally, knowledge transfer requires both distributive and absorptive capacities in each participant. The research also uncovered new evidence to support the need for a collaborative orientation to support successful knowledge transfer.
Research limitations/implications
The interviews conducted using the CIT provided a wealth of information and executive experiences in SC collaboration. However, the interviews only provide a single perspective of collaborative engagements. Multiple perspectives of each collaboration would add value to this research.
Originality/value
SC collaboration and knowledge transfer have been well studied across disciplines. This research introduces new knowledge-related variables that can contribute to successful collaboration: distributive capability and SC collaborative orientation.
The model developed in this paper aims to explain how mobile technology enables collaborative capabilities that enhance business process performance (BPP). The proposed model is tested using survey data gathered from managers in six European countries. The results suggest that, while mobile technology is positively associated with both external and internal collaborative capabilities, BPP improves to the utmost when the development of internal capabilities precedes the development of external ones.
Purpose
The purpose of this paper is to employ an inductive approach to explore how small, nascent, firms in the craft brewing industry use cooperative behaviours with direct competitors to achieve their goals.
Design/methodology/approach
Data were gathered from interviews with the founders of seven small, newly established, craft brewers in a Midwestern city in the USA for this exploratory study. Data analysis followed the general tenants of inductive coding. Porter’s value chain model was used as a framework to organise and conceptualise the coopetitive behaviour uncovered.
Findings
The firms engage in cooperative behaviours with their direct competitors in areas such as process technology development, procurement, inbound logistics and marketing. A particularly interesting and common collaborative activity was breweries recommending/promoting competing breweries to their own customers.
Practical implications
This study provides clear examples of how relationship building with competitors could be advantageous and help small, nascent firms overcome the liabilities of newness and smallness.
Originality/value
Research on coopetition has called for a greater understanding of the nature of cooperative behaviours in small firms, start-ups and firms outside of high-technology industries. Moreover, research has called for finer-grained approaches to conceptualising coopetition. This paper fills these gaps and shows how Porter’s value chain is a useful tool for organising the types of collaborative behaviours that can be part of coopetition. The findings enhance understanding and facilitate future research by illustrating a broad array of cooperative activities that occur between direct competitors.
Purpose
The purpose of this research paper is to investigate significant impact of partner similarity on the success of horizontal alliances in logistics service providers (LSPs) from China.
Design/methodology/approach
Primary data was collected via questionnaire distribution to 380 Chief Executive Officers and Managing Directors in 262 small and medium logistics enterprises in China. There are 316 valid questionnaires for further analysis with 83% accuracy in response rate. Structural equation modeling (SEM) was used to test the impact of partner similarity on alliance management capability, stability and performance.
Findings
Partner similarity and logistics alliance management capability are positively correlated to alliance stability and performance in horizontal alliances among Chinese LSPs, especially competence similarity and cultural similarity. Moreover, alliance stability mediates the impact of partner similarity and logistics alliance management capability on alliance performance.
Research limitations/implications
The basic limitation of this research is to collect data just from small and medium logistics enterprises that operate in China with sample size (n=316). This research could further be extended to other regions in China or other countries.
Practical implications
This research verifies the positive relationship between partner fit and management capability. Besides, based on research findings, the research proposes guidelines for LSPs pursuing horizontal alliances
Originality/value
This research proposes an experimental model for Chinese LSPs to cooperate successfully and build horizontal alliances in order to increase their effective customer response capability
For both the commercial logistics networks as the non-for-profit ones, collaboration among suppliers is an important strategic resource. This paper considers a tactical model for the optimisation of a commercial supply chain for a non-for-profit relief network, inspired on a previously developed post-disaster logistics model. In order to evaluate the effect of cooperation among the different competitors, a logistic network was simulated and several cooperation scenarios were considered, based on the strengths of each one of the actors involved. The model aims the minimum cost of supplying a specific item for the network and, at the same time, it allows for the different suppliers assess the benefits derived from cooperation. Following a cooperative game theory approach, the Shapley value was calculated in order to determine the distribution of costs as well as the utilities of the players involved and to determine the feasibility of the cooperation scheme designed.
Purpose
– The purpose of this paper is to understand the process and role of supply chain collaboration in Indian agri-food industry and highlight the perceptions of buyers and suppliers toward each other. The paper seeks to find out how can collaboration in agri-food supply chain lead to low wastage and better efficiency. Also, the paper attempts to capture the nuances of collaborative practices and perceptions of buyers and suppliers toward collaboration.
Design/methodology/approach
– Case study methodology in a top Indian food processing firm was conducted to explore the application and benefits of collaboration in supply chains. In-depth interviews with upstream supply chain members were conducted to understand the process of supply chain collaboration. Grounded theory methodology was used to analyze the transcripts.
Findings
– First, through content analysis of interview transcripts a comprehensive framework and a generic model was derived to understand the process of supply chain collaboration. Supplier selection, joint planning and information sharing were found to be main antecedents while profits; waste reduction and supply chain efficiency were major outcomes of collaboration. Second, it was found that the suppliers are usually more skeptical of the buyers and do not trust them easily. While, for buyers, it is very important to have good relations with suppliers and should make provide incentives to suppliers for collaboration.
Originality/value
– To the best of the knowledge, this is the first study to elaborate the process and outcomes of collaborative activities along an Indian agri-food supply chain through in-depth qualitative study. In developing countries, agriculture industry is the backbone of economy. Therefore, the insights developed in this study may be useful for managers in agribusiness to dwell into such supply chain practices that would increase profit and efficiency, and decrease wastage.
Purpose
– The paper aims to develop a supply chain-driven model horizontal logistics collaboration (HLC). HLC initiatives can fail. To improve the chance of success, a thorough consideration of the potential issues involved, such as seeking supply chain partners’ support, ensuring access to information/data security and assessing whether an HLC model could bring improvements to a wide range of supply chain metrics rather than reductions in distribution costs only, needs to be understood before deciding to proceed with such an initiative.
Design/methodology/approach
– A two-stage methodology is deployed. As part of Stage 1, a series of 20 semi-structured interviews with senior managers from retailers, retailers’ suppliers and logistics service providers were undertaken. Subsequently, in Stage 2, a focus group with practitioners from retailers and logistics service providers was run to verify the findings gathered during Stage 1. Four elements of a new HLC project being considered are investigated by supply chain champions across the UK Fast-Moving Costumer Goods industry, namely, consideration factors, required synergies, enablers and anticipated output metrics.
Findings
– When considering whether to embark on an HLC project, the supply chain requirements need to be taken into account and potential supply chain performance benefits projected. The paper identified several consideration factors; synergies and enablers that support the development of HLC projects are identified, such as legislation, trust among partners, common suppliers and delivery bases, capable third party logistics (3PL) and an effective commercial model, including a fair sharing of benefits.
Research limitations/implications
– The research provides new understanding in accounting for the needs of the supply chain when considering an HLC initiative involving leading players from the retail sector.
Practical implications
– The importance of taking a supply chain approach when evaluating the feasibility of HLC is demonstrated. HLC arrangements among competing supply chains need to be designed and run by taking account of all supply chain partners, namely, suppliers, 3PLs and customers (in this case, retailers).
Originality/value
– The contribution is threefold: identification of outset consideration factors, ideal required synergies, actioning enablers and wider supply chain metrics of HLC; development of a supply chain-driven model for HLC, which includes in the decision-making whether or not to adopt a horizontal logistics collaboration model, wide supply chain metrics such as stock levels of finished products and shelf availability, inventory, working and fixed capital, and product waste in addition to distribution costs; and, the proposal of a new definition for HLC which challenges published definitions.
The concept of business models has reached global impact, both for company's competitive success and in management science. Its application by authors from diverse areas has led to a previously very heterogeneous comprehension of the concept. Yet, by means of investigating its origin and theoretical development, we state a recently converging business model view. Further, based on analyzing business model definitions, perspectives and components in the literature, we newly define the concept and portray its essential components in an integrated framework. Finally, the compilation of the current state of business model research yields the article's main findings. In this regard, via database search we quantitatively identify 681 peer-reviewed articles. Further, we qualitatively analyze them according to individual research areas that we adopt from an appropriate heuristic frame of reference. In this way, we identify four essential research foci: innovation, change & evolution, performance & controlling and design. In triangulation with assessing future research perspectives through a survey of twenty-one international experts, they also consider the areas of innovation, change & evolution, and design to be significant for the future development of the business model research field.
This paper calculates the potential of reducing external transport costs through more systematic bundling of outbound freight flows. One way for companies to achieve more sustainable logistics, besides implementing a further modal shift, applying improved technologies or opting for external supply chain collaboration, is by optimizing the internal supply chain process within the company through horizontal internal collaboration across warehousing functions. The case studied in this paper focuses on a company with three neighboring distribution centers (DC’s), each specialized in a specific product category and each using a separate planning system. Most of the outbound flows are trucked, with only a small fraction transported by rail and short sea shipping. The collaboration approach looks at internal co-loading of the three product categories of the company with the objective to increase the fill level of the trailers/containers under current planning restrictions. To this purpose, a discrete event simulation is performed to evaluate a scenario where outbound product flows are brought together in a hypothetical cross-dock located on site next to the three DC’s. External transport cost savings of the resulting freight bundling potential are calculated.
Firms are increasingly collaborating with their competitors for new product development (NPD), yet the literature is almost silent on stock market reactions to these horizontal collaborations. Given the different skills and activities needed in each NPD phase, we analyze the differential stock market reactions to horizontal collaborations in the initiation, development, and commercialization phases of NPD. Analyses of a unique and comprehensive dataset with 831 NPD announcements of horizontal collaborations over 12 years reveal that, on average, the stock market reacts favorably to NPD-related horizontal collaboration in the initiation phase, but unfavorably in the development and commercialization phases. Further, these effects are asymmetrically moderated by the innovativeness of the new product and the collaborating competitor’s relative market and technological powers. Overall, our results highlight that failing to examine the specific NPD phase leads to an incomplete understanding of stock market reactions to horizontal collaboration for NPD. We offer theoretical and managerial implications regarding horizontal collaboration for each NPD phase, along with the relevant NPD project and competitor contingencies.
Recently, a new model based on Pythagorean fuzzy set (PFS) has been presented to manage the uncertainty in real-world decision-making problems. PFS has much stronger ability than intuitionistic fuzzy set to model such uncertainty. In this paper, we define some novel operational laws of PFSs and discuss their desirable properties. For the multicriteria decision-making problems with PFSs, we propose an extended technique for order preference by similarity to ideal solution method to deal effectively with them. In this approach, we first propose a score function based comparison method to identify the Pythagorean fuzzy positive ideal solution and the Pythagorean fuzzy negative ideal solution. Then, we define a distance measure to calculate the distances between each alternative and the Pythagorean fuzzy positive ideal solution as well as the Pythagorean fuzzy negative ideal solution, respectively. Afterward, a revised closeness is introduced to identify the optimal alternative. At length, a practical example is given to illustrate the developed method and to make a comparative analysis.
Most of the extensive literature on collaboration in supply chain management focuses on the economic advantages of vertical collaboration, often ignoring elements such as trust and mutual confidence. In practice, collaborative initiatives often fail because of opportunistic behavior of one of the partners. In discussions of horizontal collaboration, trust is even more often disregarded. Trust in a social context, however, has been explored in depth. This study therefore explores models described in the social literature and tests their applicability in a supply management context. This leads to an adapted model suggesting that to build or sustain trust in horizontal collaborative initiatives, some critical factors should be taken into consideration. The model is validated and illustrated by means of several case studies.
Under supply chain environment, in order to better operate in the market it is necessary that the small and medium enterprises (SME) are integrated into supply chains and rely on the supply chains' collaboration advantages. The SME can focus on an industry, form the SME cluster and further become the cluster supply chain by collaborative operation. In the process of integration there are cooperation and competition between the members of the cluster. The SME can participate in a supply chain or several supply chains if condition permission, establish collaboration relations with the large enterprises, carry out the supply chain's diversification strategy of the SME cluster, and will be provided more room for development..
Business networking strategies and especially cooperation in logistics are gaining momentum for individual companies in order to survive in competitive markets. As horizontal logistics cooperation among shippers is a new and powerful approach to optimize cost structures, this publication deals with the conceptual design and the organizational aspects of horizontal cooperation. With regard to the variety of influencing factors and parameters of cooperation a framework is presented that supports the selection of possible cooperation forms. Special attention is further dedicated to the design of cooperative logistics models as well as to the specifications of cooperation models, which are both considered as key factors to ensure a successful and sustainable cooperation. Based on the identified structural concepts the great potential of horizontal logistics cooperation is demonstrated on the example of two case studies.