Emerging market characteristics and supply network adjustments in internationalising food supply chains

Lorentz, Harri; Kittipanya-ngam, Pichawadee; Srai, Jagjit Singh

doi:10.1016/j.ijpe.2013.04.038

Cited by 37 publications

(39 citation statements)

References 85 publications

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“…EM penetration intensity may increase the exposure of a firm to SC disruptions for many reasons. First, infrastructure in many EMs is either poor or fledging as demonstrated by meager transportation systems, inadequate warehousing facilities, and low‐quality or congested ports (Babbar et al., 2008; Prasad et al., 2005; Lorentz et al., 2013; Ruamsook et al., 2007), resulting in increased exposure to SC disruptions. In addition, deficient technological infrastructure (Prasad and Tata, 2010; Lorentz et al., 2013) and the limited use of advanced supply chain management (SCM) systems make visibility and traceability of SC activities difficult.…”

Section: Theory and Hypothesesmentioning

confidence: 99%

“…First, infrastructure in many EMs is either poor or fledging as demonstrated by meager transportation systems, inadequate warehousing facilities, and low‐quality or congested ports (Babbar et al., 2008; Prasad et al., 2005; Lorentz et al., 2013; Ruamsook et al., 2007), resulting in increased exposure to SC disruptions. In addition, deficient technological infrastructure (Prasad and Tata, 2010; Lorentz et al., 2013) and the limited use of advanced supply chain management (SCM) systems make visibility and traceability of SC activities difficult. Second, poor institutional infrastructure (e.g., legislation, regulations, policies, and the implementation and enforcement of rules and regulations) adds to risks of opportunistic behaviors and hinders compliance to contractual policies (Marquis and Raynard, 2015; Child and Lu, 1996).…”

Section: Theory and Hypothesesmentioning

confidence: 99%

“…On the other hand, SC performance metrics, such as product quality and inventory levels, can be adversely affected. Cost‐quality tradeoffs may appear more salient to firms operating in EMs because of the induced and hidden costs (Holweg et al., 2011; Lorentz et al., 2013). Moreover, certain attributes of EMs (e.g., weak contract legislation and enforcement, poor infrastructure, and physical distance) are known to increase SC risks (e.g., opportunism, uncertainties, and SC disruptions) and thus raise the likelihood of higher inventory levels and product recalls.…”

Section: Introductionmentioning

confidence: 99%

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Emerging market presence, inventory, and product recall linkages

Steven

Agudelo

2016

J of Ops Management

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This study investigates simultaneous linkages between outsourcing, in‐house offshoring, sales to emerging markets, inventory and product recalls. The study finds a positive and significant association between outsourcing to emerging markets and recalls and that sales penetration into emerging markets reduces recalls; however, it finds no direct relationship between in‐house offshoring and recalls. Interestingly, in‐house offshoring to emerging markets appears to mitigate the positive relationship between outsourcing to these markets and recalls; this suggests that transactional complexities of outsourcing to emerging markets are mitigated by a physical presence in the market. This important finding suggests that by keeping some operations in‐house, firms may reduce the negative effect of outsourcing on product quality and safety while reaping low‐cost benefits of sourcing from these emerging markets. Additionally, the results indicate that institutional immaturities within recipient countries (associated with outsourcing) are primary contributors to inefficiencies affecting quality performance. On the inventory side, sourcing from emerging markets negatively affects inventory performance. Although inventory performance typically does not appear to be related to recalls, finished goods inventory is positively associated with quality failures.

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Section: Theory and Hypothesesmentioning

confidence: 99%

Section: Theory and Hypothesesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Emerging market presence, inventory, and product recall linkages

Steven

Agudelo

2016

J of Ops Management

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“…Multinational enterprises (MNEs) are required to constantly adjust their supply chain configurations, as well as their business and operational strategies in order to better adapt to the changing characteristics of the global economy, national markets, and customers and suppliers (Casson, 2013;Kusaba, Moser & Rodrigues, 2011;Lorentz, Kittipanyangam & Srai, 2013). International third-party logistics service providers (LSPs) must understand the impact of the environment on their operations and businesses as a whole to allocate and develop their limited resources and capabilities appropriately (Khanna, Palepu & Sinha, 2005;Prahalad & Lieberthal, 1998).…”

Section: Introductionmentioning

confidence: 99%

Adaptation of Foreign Logistics Service Providers' Resources and Capabilities to a New Institutional Environment

Darkow

Weidmann

Lorentz

2015

J Supply Chain Manag

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As a consequence of the internationalization of logistics services into emerging markets, incumbent companies find themselves in foreign environments to which they have to adapt. The purpose of this study is to enhance understanding of how new institutional environments affect logistics service providers (LSPs) and how they adapt in terms of resources and capabilities. Combining the institutional environment perspective with the resource‐based view, we analyze the impact of institutions on foreign LSPs in the case of Russia. The case‐study‐based results suggest that the institutional environment, namely the political and social systems, as well as market liberalization, carries major implications in this context. Foreign LSPs need to adapt to the host market environment during internationalization in order to develop the capabilities associated with competitive logistics services. Further, the complexity of the offered services determines the degree of required adaptation.

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“…specific types of labelling and packaging) on weaker business partners (Coe and Hess, 2005). This situation is especially present in developing markets, which are characterised by low supply chain transparency (Roth et al, 2008), struggle to comply with food safety standards due to resource limitations (Henson and Humphrey, 2010), incompatibilities of production and marketing systems (Donovan et al, 2001), underdeveloped and/or fragmented retail sector and large number of intermediaries (Lorentz et al, 2013), and food traceability issues (Humphrey, 2007).…”

Section: P2mentioning

confidence: 99%

Entrepreneurial Resilience: Role of Policy Entrepreneurship in the Political Perspective of Crisis Management

2015

Organisational Resilience

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The aim of this paper is to analyse vulnerability and robustness of small and medium size enterprises (SMEs) supply chains and to consider contextual factors that might influence the success of their disturbance management: Risky product and business environment. By using an exploratory case study it is shown how these contextual factors attribute vulnerability sources, contribute to the robustness of a company's performance and supply chain vulnerability, as well as how a company seeks to manage internal and external vulnerability sources. The exploratory case is based on a fresh food supply chain of a manufacturing SME operating in a developing market.Case findings suggest that fresh food supply chains of a manufacturing SME in developing markets are prone to disruptions of their logistics and production processes due to 'riskiness' of fresh food products, the 'riskiness' of developing markets, as well as 'riskiness' of SMEs themselves. However, this does not necessarily indicate the vulnerability of an SME and its entire supply chain. Findings indicate that SMEs can be very successful in disturbance management by selective use of redesign strategies that aim to prevent or reduce the impact of disturbances. More precise, it is likely that an SME can achieve robust performance by employing preventive redesign strategies in managing 2 disturbances that result from internal, company related vulnerability sources, while impact reduction strategies are likely to contribute to robust performance of an SME if used to manage disturbances that result from internal, supply chain related vulnerability sources, as well as external vulnerability sources.

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Emerging market characteristics and supply network adjustments in internationalising food supply chains

Cited by 37 publications

References 85 publications

Emerging market presence, inventory, and product recall linkages

Emerging market presence, inventory, and product recall linkages

Adaptation of Foreign Logistics Service Providers' Resources and Capabilities to a New Institutional Environment

Entrepreneurial Resilience: Role of Policy Entrepreneurship in the Political Perspective of Crisis Management

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