SUPPLY CHAIN
STRATEGY – SUMMARIES
OF ARTICLES
Tilburg University SC Strategy
YEAR: 2022/2023
UVT
Tilburg, The Netherlands
,Table of Contents
QUALITY: Defining the concept of Supply Chain quality management and its relevance to
academic and industrial practice Robinson, C.J., & Malhotra, M.K. (2005)..........................5
Quality Management and Supply Chain Research........................................................................5
SCM vs Quality Management.......................................................................................................5
Case study of ABC technologies....................................................................................................6
Supply Chain Quality Themes.........................................................................................................................6
Links between Quality and SCM research.....................................................................................6
Taxonomy.....................................................................................................................................7
Timeline.......................................................................................................................................7
QUALITY: Leering to evolve a review of contemporary lean thinking: Hines, P., Holweg, M.,
& Rich, N. (2004)................................................................................................................8
Introduction.................................................................................................................................8
The relationship between Value and Cost....................................................................................8
Cost-value Equilibrium figure.......................................................................................................9
Criticism on LEAN Thinking...........................................................................................................9
Lack of contingency........................................................................................................................................9
Human aspect.................................................................................................................................................9
Scope and Lack of strategic perspective.........................................................................................................9
Coping with variability....................................................................................................................................9
Learning steps – From prescription to contingency.....................................................................10
Stage 1. Cells and assembly lines..................................................................................................................10
Stage 2. Shop floor........................................................................................................................................10
Stage 3. Value stream...................................................................................................................................10
Stage 4. Value systems.................................................................................................................................10
Conclusion..................................................................................................................................10
SAFETY: Cognition, technology, and organizational limits: Lessons from the Air France 447
disaster Oliver, N., Calvard, T., & Potočnik, K. (2017)........................................................12
Organizational Limits..................................................................................................................12
Endogenous (inside) vs Exogenous (outside) limits.....................................................................12
Contribution of a Limits perspective............................................................................................................12
Methods.....................................................................................................................................13
Implication.................................................................................................................................13
SAFETY: Management walk-arounds: Lessons from the Gulf of Mexico oil well blowout
Hopkins, A. (2011)............................................................................................................14
Purpose of the visit.....................................................................................................................14
The VIP failure to discover what was going on............................................................................14
Explaining the behavior of the VIPs............................................................................................14
More effective safety auditing strategies....................................................................................14
,SC Finance: Supply chain finance. (Chapter 6)...................................................................16
According to Triggering event timing there are three main categories SCF instruments.............16
1. Pre-shipment finance................................................................................................................................16
2. In transit finance.......................................................................................................................................16
3. Prost-shipment finance.............................................................................................................................16
According to Credit-Risk there are 3 SCF instruments.................................................................16
1. Account receivables finance.....................................................................................................................16
2. Inventory-related finance.........................................................................................................................16
3. Account payables finance.........................................................................................................................16
SCF instruments based on availability of collateral.....................................................................16
1. Arm’s length finance.................................................................................................................................16
2. Relationship finance.................................................................................................................................16
SCF instruments Based on Balance sheet....................................................................................17
1. Equity related finance...............................................................................................................................17
2. Fixed assets finance..................................................................................................................................17
3. Working Capital finance............................................................................................................................17
SCF Instruments..........................................................................................................................17
Working Capital Management in SC...........................................................................................18
SC Finance: Finance and Firm Volatility: Evidence from small Business Lending in China...19
The Cut-off Score........................................................................................................................19
Relationship with forms volatility...............................................................................................19
Institution Background and the Platform....................................................................................20
Ant Financial of Alibaba..............................................................................................................20
Further exploration on firms’ volatility.......................................................................................20
Test of Potential Channels..........................................................................................................20
Measurement: Bilateral dependency and supplier performance ambiguity in supply chain
contracting: Evidence from the railroad industry Bhardwaj, A., & Ketokivi, M. (2021)......22
Bilateral dependency in SC relationships....................................................................................22
Buyer supplier dependency four contracting scenarios..............................................................22
The drivers of bilateral dependency assets specificity and the fundamental transformation.....23
The driver of supplier performance ambiguity: bounded rationality..........................................23
Joint Failure pattern...................................................................................................................24
Conclusion..................................................................................................................................24
Measurement: Examining the conditional limits of relational governance: specialized
assets, performance ambiguity, and long‐standing ties...................................................26
Theoretical overview..................................................................................................................26
The Moderating Role of Exchange Hazards: Asset Specificity and Performance Measurement
Difficulty.....................................................................................................................................27
The Moderating Role of Long-Standing Ties................................................................................27
Discussions.................................................................................................................................27
, Make or buy: Transaction cost economics as a theory of the firm, management, an
governance. In Oxford Research Encyclopedia of Business and Management. Ketokivi, M.,
& Mahoney, J. T. (2017)....................................................................................................28
General case of the Governance decisions..................................................................................28
Other financial decisions..............................................................................................................................29
Make or buy: Incentives and the efficiency of public sector‐outsourcing contracts. Journal
of Economic Surveys, 19(5), 767-787. Jensen, P. H., & Stonecash, R. E. (2005)...................30
Privatization vs outsourcing........................................................................................................30
Main differences of Privatization and Outsourcing......................................................................................30
The magnitude of cost savings....................................................................................................31
Contract design and Efficiency....................................................................................................31
Risk and inceptives........................................................................................................................................31
Risk-Incentive Trade-off................................................................................................................................32
Factors influencing contracting decisions: Why locate manufacturing in a high-cost
country? A case study of 35 production location decisions. Ketokivi, M., Turkulainen, V.,
Seppälä, T., Rouvinen, P., & Ali-Yrkkö, J. (2017)................................................................33
Elaborating out understanding about location decisions............................................................33
The decision perspective............................................................................................................33
Coupling........................................................................................................................................................33
Specificity......................................................................................................................................................33
Formalization................................................................................................................................................34
Analysis......................................................................................................................................34
Production-Supply........................................................................................................................................34
Production-Development.............................................................................................................................34
Production-Market.......................................................................................................................................34
Factors influencing contracting decisions: Vested outsourcing: a flexibleframework for
collaborative outsourcing. Strategic Outsourcing: An International Journal. Vitasek, K., &
Manrodt, K. (2012)...........................................................................................................36
The five rules and 10 elements of VO.........................................................................................36
Supply Chain Conflicts: Zsidisin, George A., and Lisa M. Ellram. "An agency theory
investigation of supply risk management.........................................................................38
Agency Theory............................................................................................................................38
Supply Risk Sources....................................................................................................................38
Behavior-Based management.....................................................................................................38
Buffer-Oriented management....................................................................................................39
Managerial implications.............................................................................................................39
Reducing information asymmetry................................................................................................................39
Aligning objectives........................................................................................................................................39
Programing supplier activities......................................................................................................................39
Supply Chain Conflicts: Matinheikki, J., Kauppi, K., Brandon–Jones, A., & van Raaij, E. M.
(2022). Making agency theory work for supply chain relationships: a systematic review
across four disciplines......................................................................................................40
Governance mechanisms............................................................................................................40
STRATEGY – SUMMARIES
OF ARTICLES
Tilburg University SC Strategy
YEAR: 2022/2023
UVT
Tilburg, The Netherlands
,Table of Contents
QUALITY: Defining the concept of Supply Chain quality management and its relevance to
academic and industrial practice Robinson, C.J., & Malhotra, M.K. (2005)..........................5
Quality Management and Supply Chain Research........................................................................5
SCM vs Quality Management.......................................................................................................5
Case study of ABC technologies....................................................................................................6
Supply Chain Quality Themes.........................................................................................................................6
Links between Quality and SCM research.....................................................................................6
Taxonomy.....................................................................................................................................7
Timeline.......................................................................................................................................7
QUALITY: Leering to evolve a review of contemporary lean thinking: Hines, P., Holweg, M.,
& Rich, N. (2004)................................................................................................................8
Introduction.................................................................................................................................8
The relationship between Value and Cost....................................................................................8
Cost-value Equilibrium figure.......................................................................................................9
Criticism on LEAN Thinking...........................................................................................................9
Lack of contingency........................................................................................................................................9
Human aspect.................................................................................................................................................9
Scope and Lack of strategic perspective.........................................................................................................9
Coping with variability....................................................................................................................................9
Learning steps – From prescription to contingency.....................................................................10
Stage 1. Cells and assembly lines..................................................................................................................10
Stage 2. Shop floor........................................................................................................................................10
Stage 3. Value stream...................................................................................................................................10
Stage 4. Value systems.................................................................................................................................10
Conclusion..................................................................................................................................10
SAFETY: Cognition, technology, and organizational limits: Lessons from the Air France 447
disaster Oliver, N., Calvard, T., & Potočnik, K. (2017)........................................................12
Organizational Limits..................................................................................................................12
Endogenous (inside) vs Exogenous (outside) limits.....................................................................12
Contribution of a Limits perspective............................................................................................................12
Methods.....................................................................................................................................13
Implication.................................................................................................................................13
SAFETY: Management walk-arounds: Lessons from the Gulf of Mexico oil well blowout
Hopkins, A. (2011)............................................................................................................14
Purpose of the visit.....................................................................................................................14
The VIP failure to discover what was going on............................................................................14
Explaining the behavior of the VIPs............................................................................................14
More effective safety auditing strategies....................................................................................14
,SC Finance: Supply chain finance. (Chapter 6)...................................................................16
According to Triggering event timing there are three main categories SCF instruments.............16
1. Pre-shipment finance................................................................................................................................16
2. In transit finance.......................................................................................................................................16
3. Prost-shipment finance.............................................................................................................................16
According to Credit-Risk there are 3 SCF instruments.................................................................16
1. Account receivables finance.....................................................................................................................16
2. Inventory-related finance.........................................................................................................................16
3. Account payables finance.........................................................................................................................16
SCF instruments based on availability of collateral.....................................................................16
1. Arm’s length finance.................................................................................................................................16
2. Relationship finance.................................................................................................................................16
SCF instruments Based on Balance sheet....................................................................................17
1. Equity related finance...............................................................................................................................17
2. Fixed assets finance..................................................................................................................................17
3. Working Capital finance............................................................................................................................17
SCF Instruments..........................................................................................................................17
Working Capital Management in SC...........................................................................................18
SC Finance: Finance and Firm Volatility: Evidence from small Business Lending in China...19
The Cut-off Score........................................................................................................................19
Relationship with forms volatility...............................................................................................19
Institution Background and the Platform....................................................................................20
Ant Financial of Alibaba..............................................................................................................20
Further exploration on firms’ volatility.......................................................................................20
Test of Potential Channels..........................................................................................................20
Measurement: Bilateral dependency and supplier performance ambiguity in supply chain
contracting: Evidence from the railroad industry Bhardwaj, A., & Ketokivi, M. (2021)......22
Bilateral dependency in SC relationships....................................................................................22
Buyer supplier dependency four contracting scenarios..............................................................22
The drivers of bilateral dependency assets specificity and the fundamental transformation.....23
The driver of supplier performance ambiguity: bounded rationality..........................................23
Joint Failure pattern...................................................................................................................24
Conclusion..................................................................................................................................24
Measurement: Examining the conditional limits of relational governance: specialized
assets, performance ambiguity, and long‐standing ties...................................................26
Theoretical overview..................................................................................................................26
The Moderating Role of Exchange Hazards: Asset Specificity and Performance Measurement
Difficulty.....................................................................................................................................27
The Moderating Role of Long-Standing Ties................................................................................27
Discussions.................................................................................................................................27
, Make or buy: Transaction cost economics as a theory of the firm, management, an
governance. In Oxford Research Encyclopedia of Business and Management. Ketokivi, M.,
& Mahoney, J. T. (2017)....................................................................................................28
General case of the Governance decisions..................................................................................28
Other financial decisions..............................................................................................................................29
Make or buy: Incentives and the efficiency of public sector‐outsourcing contracts. Journal
of Economic Surveys, 19(5), 767-787. Jensen, P. H., & Stonecash, R. E. (2005)...................30
Privatization vs outsourcing........................................................................................................30
Main differences of Privatization and Outsourcing......................................................................................30
The magnitude of cost savings....................................................................................................31
Contract design and Efficiency....................................................................................................31
Risk and inceptives........................................................................................................................................31
Risk-Incentive Trade-off................................................................................................................................32
Factors influencing contracting decisions: Why locate manufacturing in a high-cost
country? A case study of 35 production location decisions. Ketokivi, M., Turkulainen, V.,
Seppälä, T., Rouvinen, P., & Ali-Yrkkö, J. (2017)................................................................33
Elaborating out understanding about location decisions............................................................33
The decision perspective............................................................................................................33
Coupling........................................................................................................................................................33
Specificity......................................................................................................................................................33
Formalization................................................................................................................................................34
Analysis......................................................................................................................................34
Production-Supply........................................................................................................................................34
Production-Development.............................................................................................................................34
Production-Market.......................................................................................................................................34
Factors influencing contracting decisions: Vested outsourcing: a flexibleframework for
collaborative outsourcing. Strategic Outsourcing: An International Journal. Vitasek, K., &
Manrodt, K. (2012)...........................................................................................................36
The five rules and 10 elements of VO.........................................................................................36
Supply Chain Conflicts: Zsidisin, George A., and Lisa M. Ellram. "An agency theory
investigation of supply risk management.........................................................................38
Agency Theory............................................................................................................................38
Supply Risk Sources....................................................................................................................38
Behavior-Based management.....................................................................................................38
Buffer-Oriented management....................................................................................................39
Managerial implications.............................................................................................................39
Reducing information asymmetry................................................................................................................39
Aligning objectives........................................................................................................................................39
Programing supplier activities......................................................................................................................39
Supply Chain Conflicts: Matinheikki, J., Kauppi, K., Brandon–Jones, A., & van Raaij, E. M.
(2022). Making agency theory work for supply chain relationships: a systematic review
across four disciplines......................................................................................................40
Governance mechanisms............................................................................................................40
