Organizational factors affecting supply chains in developing countries

Abstract

PurposeThe purpose of this paper is to provide managers of multinational companies and researchers with a framework for investigating and effectively managing organizational factors and supply‐chain networks in lieu of conditions prevalent in developing countries.Design/methodology/approachThis paper draws from the international management, supply‐chain management, and organizational behavior literature to construct a framework and formulate propositions linking important organizational factors to supply‐chain effectiveness in developing countries.FindingsThe paper reviews the literature, develops a useful framework, formulates propositions, and provides important managerial insights for supply‐chain management in developing countries.Research limitations/implicationsSupply‐chain effectiveness is a broad construct in this paper. Future research might want to isolate and examine the potential effects of organizational variables on more narrow supply‐chain outcomes.Practical implicationsThe modeled framework can help managers of Multinational Corporations (MNCs) better understand and manage important organizational variables in ways that render their supply chains in developing countries more effective.Originality/valueCurrently, the literature does not provide managers of MNCs and researchers a framework for investigating and effectively managing key organizational factors affecting supply‐chain networks in lieu of conditions prevalent in developing countries. This paper attempts to fill this gap. Propositions developed in this paper can serve as a foundation for future empirical research needed to support the development of theory in this area.

Emerging market presence, inventory, and product recall linkages

“…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.…”

“…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). Third, EM partners (i.e., customers and suppliers) may be less reliable than domestic suppliers due to differences in business rules, standards, and business cultures (Babbar et al., 2008; Cook, 2007; Pagell et al., 2005; Hitt et al., 2000). Thus, a broad hypothesis is that there is a positive relationship between EM penetration intensity and product recalls.…”

“…Anecdotal evidence and academic research have suggested that a firm's presence in an EM will ultimately yield mixed results. An EM presence may lead to lower costs and inventories, yield new markets, and increase worldwide sales and profits (Babbar et al., 2008; Garten, 1997; Khanna and Palepu, 1997; Khanna et al., 2005; Pacek and Thorniley, 2007). On the other hand, SC performance metrics, such as product quality and inventory levels, can be adversely affected.…”

Exploiting Mobile Technology for Achieving Supply Chain Integration in Indian Retail

“…It reduces operating costs and helps in interorganizational collaboration (Dong, Xu, & Zhu, 2009;Lewis & Talalayevsky, 2004;Rai & Tang, 2010;Sanders, 2007;Sherer, 2005;Spiegel, 2001). Earlier research on adoption of technology in Indian supply chains have focused on integration, information sharing, and strategic decision making (Babbar et al, 2008;Jharkharia & Shanker, 2004;Khan et al, 2009;Rahman, 2004;Saad & Patel, 2006;Thakkar et al, 2008). Sezen (2008) in his research discussed supply chain information sharing, integration, and design in 125 manufacturing companies in Turkey.…”

“…We focused the study only on the use of mobile phones/technology for sharing information, as there has been no research in India to understand the application of mobile technology in facilitating information flow among supply chain partners. There have been several research documents discussing the growing adoption of technology in different Indian manufacturing and supply chain sectors (Babbar, Addae, Gosen, & Prasad, 2008;Jharkharia & Shanker, 2004Khan et al, 2009;Kannabiran & Bhaumik, 2005;Rahman, 2004;Saad & Patel, 2006;Sahay, Cavale, & Mohan, 2003;Sahay, Gupta, & Mohan, 2006;Thakkar, Kanda, & Deshmukh, 2008). We studied the level of mobile technology adoption and usage in the Indian retail sector for four supply chain components: supply chain integration, supply chain design, information sharing with customers, and information sharing with suppliers.…”