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Tag: Operations & Supply Chain

  • Lack of allocative efficiency improvement explains much of U.S. productivity slowdown

    What the study found

    The study finds that about two-thirds of the U.S. productivity slowdown in the 1970s and 2000s can be explained by a lack of improvement in allocative efficiency, meaning how well resources are distributed across sectors. It also finds that higher sector-level volatility is associated with worse allocative efficiency.

    Why the authors say this matters

    The authors conclude that allocative efficiency appears to be an important part of understanding the productivity slowdown. The study suggests that changes in how sectors vary over time may be related to deterioration in allocative efficiency.

    What the researchers tested

    The researchers extended the framework of Oberfield (2013) to derive sufficient statistics for allocative efficiency and to decompose aggregate productivity growth in a multisector economy. They used this approach to evaluate the contribution of cross-sector allocative efficiency to the U.S. productivity slowdown.

    What worked and what didn't

    Their decomposition indicates that the lack of improvement in allocative efficiency accounted for approximately two-thirds of the slowdown. The data also show an association between increased sector-level volatility and deteriorating allocative efficiency.

    What to keep in mind

    The abstract does not describe detailed limitations or caveats. The findings are based on a multisector framework and on the U.S. productivity slowdown in the 1970s and 2000s.

    • About two-thirds of the U.S. productivity slowdown is attributed to lack of improvement in allocative efficiency.
    • Allocative efficiency here refers to how well resources are distributed across sectors.
    • The study uses an extension of the Oberfield (2013) framework.
    • Higher sector-level volatility is associated with worse allocative efficiency.
    • The analysis focuses on the U.S. in the 1970s and 2000s.

  • Digitalisation and circularity support supply chain resilience

    What the study found

    The study found that digitalisation is positively associated with circular-economy adoption and supply chain resilience. It also found that resilient supply chains are strongly associated with improved sustainability performance.

    Why the authors say this matters

    The authors conclude that integrated digital and circular policy frameworks may help enhance resilience and advance sustainable development in emerging economies. The study suggests that sustainability outcomes come from building capabilities in sequence rather than from digital tools alone.

    What the researchers tested

    The researchers examined 32 emerging economies from 2010 to 2023 using a balanced panel dataset. They used fixed-effects panel regressions, mediation analysis, and structural equation modelling, drawing on indicators from the World Bank, OECD, UN SDG Database, and UNIDO.

    What worked and what didn't

    Digitalisation was positively associated with circular-economy adoption and with supply chain resilience. Circularity further strengthened resilience, and resilience was strongly associated with better sustainability performance. The serial mediation results suggested a cumulative capability-building pathway rather than isolated technological effects.

    What to keep in mind

    The abstract does not describe specific limitations beyond the study's focus on emerging economies and the 2010 to 2023 period. The summary also does not provide information on individual country differences or other potential constraints.

    • Digitalisation was positively associated with circular-economy adoption.
    • Digitalisation was also positively associated with supply chain resilience.
    • Circular-economy practices further strengthened supply chain resilience.
    • Resilient supply chains were strongly associated with improved sustainability performance.
    • The authors describe the pathway as cumulative capability-building rather than isolated technological effects.

  • Czech consumers mainly dispose of clothing sustainably, with durability as the main reason for disposal

    What the study found

    The study found that Czech consumers' clothing disposal behavior varies by gender and age. Female consumers were described as primarily acting sustainably with textile waste, while durability issues were the main reason clothes were discarded.

    Why the authors say this matters

    The authors conclude that the findings suggest a role for consumer education, better textile quality, and at-home recycling initiatives in supporting a more circular textile system. They also indicate that policymakers should prioritize education to encourage better purchasing, repair, and disposal behaviors.

    What the researchers tested

    The researchers used a quantitative, positivist study design with a structured questionnaire. They analyzed responses with frequency percentages normalized by gender and age, and used chi-square tests and Cramér's V to examine relationships such as reason, gender, and age.

    What worked and what didn't

    The study reports that female consumers were the group most likely to act sustainably in textile disposal. It also reports that durability was the main disposal reason, and that changes in purchasing habits may improve sustainability; however, the abstract does not provide detailed breakdowns beyond these points.

    What to keep in mind

    The abstract notes that the sample was anonymous, self-selected, younger, and digitally connected, which may limit how well the findings generalize. It also says most respondents were presumed to be interested in fashion or sustainability, and the sample was 81% women.

    • Female consumers were described as mainly acting sustainably with textile waste.
    • Durability issues were the main reason for clothing disposal.
    • The authors suggest consumer education is the most important policy priority.
    • Better textile quality and at-home recycling initiatives are mentioned as supporting measures.
    • The sample was self-selected, younger, digitally connected, and 81% women.

  • Early-phase idea generation was applied to a sustainable vehicle component

    What the study found

    The article presents an approach for idea generation on sustainable and circular products in the early phase of development. The approach was applied and evaluated using a sustainable and circular vehicle component, specifically a center console.

    Why the authors say this matters

    The authors say sustainability and circular economy are increasingly important for new products because of new EU legislation. They also suggest that early, disruptive idea generation supported by physical realization can contribute to better-informed decision-making.

    What the researchers tested

    The researchers presented an approach for generating ideas for sustainable and circular products early in the innovation process. They applied and evaluated it with a vehicle component, a center console, in the automotive context.

    What worked and what didn't

    The abstract says the approach was applied and evaluated, but it does not report detailed performance results. It notes that early-stage decisions often rely mostly on theoretical data, and that physical prototypes are often introduced later in the process.

    What to keep in mind

    The available summary does not describe the evaluation results, comparison groups, or specific limitations. The abstract also does not provide enough detail to judge how broadly the approach can be applied beyond the vehicle component example.

    • The article presents an early-phase idea-generation approach for sustainable and circular products.
    • The approach was applied and evaluated using a vehicle center console.
    • The authors link the topic to growing importance from new EU legislation and circular economy goals.
    • The abstract says early decisions are often made from theoretical data before physical prototypes are used.
    • No detailed outcome measures or evaluation results are given in the abstract.

  • Natural disasters reduce firm value, especially for high-ESG firms

    What the study found

    The study found that greater exposure to natural disasters is linked to lower firm value in China. This effect is especially strong for firms with high environmental, social, and governance (ESG) ratings.

    Why the authors say this matters

    The authors conclude that the findings suggest ESG commitments can be associated with higher operational costs and lower profitability during crises in developing economies. They also suggest that overinvestment in ESG initiatives may reduce corporate flexibility and strain financial resources.

    What the researchers tested

    The researchers examined the impact of natural disasters on corporate valuation in China, with attention to ESG performance. They compared firms with different ESG ratings and also looked at whether the pattern differed for non-state-owned enterprises, less environment-sensitive firms, and firms with higher operational risk or lower resilience.

    What worked and what didn't

    Heightened natural-disaster exposure was associated with significantly lower firm value. The negative effect was larger for firms with high ESG ratings, and it was also more pronounced for non-state-owned enterprises, less environment-sensitive firms, and companies with elevated operational risks or lower resilience.

    What to keep in mind

    The abstract does not describe the specific data sources, study period, or statistical methods. It also limits the findings to China, so the summary provided here does not establish whether the same pattern applies in other settings.

    • Natural-disaster exposure was associated with lower firm value in China.
    • The effect was stronger for firms with high ESG ratings.
    • The authors link strong ESG commitments to higher operating costs and lower profitability during crises.
    • The negative association was more pronounced for non-state-owned enterprises.
    • The pattern was also stronger for firms with higher operational risk or lower resilience.

  • Supplier leadership and network ties drive collusive bargaining

    What the study found

    The study found that exploitative supplier leadership and distributor network embeddedness are key factors associated with collusive bargaining behavior (CBB), which means distributors negotiating together with a common supplier. It also found that asymmetric asset specificity in the distributor’s favor inhibits CBB.

    Why the authors say this matters

    The authors conclude that the study offers a fresh perspective on bargaining behavior in a supply chain network context and helps build a more complete understanding of collusive bargaining behavior. They also suggest the findings matter because CBB may have harmful consequences in supply chains.

    What the researchers tested

    The researchers studied a supply chain with one supplier and multiple distributors. They collected survey data from 327 Chinese distributors and analyzed it using hierarchical regression analyses.

    What worked and what didn't

    Exploitative supplier leadership and distributor network embeddedness were reported as positive drivers of distributor CBB. Asymmetric asset specificity in the distributor’s favor was reported as an inhibitor, and the link between distributor CBB and distributor opportunism was positive but weakened by market uncertainty.

    What to keep in mind

    The abstract does not describe limitations beyond the study setting and sample. The findings are based on survey data from 327 Chinese distributors in a one-supplier, multiple-distributor supply chain context.

    • Exploitative supplier leadership was identified as a key factor for distributor collusive bargaining behavior.
    • Distributor network embeddedness was also identified as a key factor for collusive bargaining behavior.
    • Asymmetric asset specificity in the distributor’s favor inhibited collusive bargaining behavior.
    • Distributor collusive bargaining behavior was positively linked to distributor opportunism.
    • Market uncertainty weakened the positive link between collusive bargaining behavior and opportunism.

  • Social enterprises build supply chain resilience differently

    What the study found

    The study found that supply chain resilience in social enterprises can differ from that in commercial firms. Social enterprises (organizations that pursue a social mission) may face disadvantages during supply chain disruptions because they have fewer financial resources and less management capacity for planning and risk management, but they compensate through network-based and community-based practices.

    Why the authors say this matters

    The authors conclude that social enterprises play a critical role in tackling food insecurity and food poverty, and the study suggests that understanding how they build supply chain resilience matters in that context. They also say the findings support a conceptual framework for social-enterprise-led supply chain resilience.

    What the researchers tested

    The researchers conducted an in-depth review of the literature using a narrative approach, which they chose because the study crosses multiple fields. Their focus was on social enterprises with a social mission to address food insecurity and food poverty, and on what supply chain resilience means in that setting.

    What worked and what didn't

    The analysis suggests that social enterprises may be at a disadvantage when supply chains are disrupted because they lack spare financial resources and management capacity. At the same time, they appear to build resilience through diagonal cross-sector networking, local community embeddedness, social capital, and flexible ways of working.

    What to keep in mind

    The summary describes a conceptual literature review rather than a study of a specific organization or dataset. The abstract does not describe empirical testing, and it does not state detailed limitations beyond the interdisciplinary nature of the topic.

    • The paper focuses on supply chain resilience in social enterprises with a mission to address food insecurity and food poverty.
    • Social enterprises may have fewer financial and management resources to absorb supply chain shocks than commercial firms.
    • They may compensate through network connections, cross-sector networking, social capital, and flexible working.
    • The authors developed a conceptual framework for social-enterprise-led supply chain resilience.
    • The study uses an in-depth narrative literature review rather than empirical field data.

  • Supply chain flexibility is built from customer context and culture

    What the study found

    The study found that Supply Chain Flexibility (SCF) is organized as a hierarchy rather than a collection of unrelated elements. In this hierarchy, the nature of customers is the main building block, and strategic redundancies appear as a later outcome rather than an initial input.

    Why the authors say this matters

    The authors conclude that the framework can help practitioners prioritize foundational cultural and strategic investments before using software tools or other surface-level solutions. The study suggests this may support the systematic development of robust and sustainable Supply Chain Flexibility.

    What the researchers tested

    The researchers developed an Interpretive Structural Modelling (ISM) approach, a method for showing how factors influence one another in a hierarchy. They used it to examine how Supply Chain Flexibility elements affect data-driven organizational culture and support core technology and operational capabilities across five areas: market, delivery, logistics, organizational, and volume flexibility.

    What worked and what didn't

    The hierarchical structure identified the nature of customers as the main foundational factor in Supply Chain Flexibility. Strategic redundancies were not treated as a starting point; instead, they were viewed as the result of a more advanced Supply Chain Flexibility system.

    What to keep in mind

    The abstract does not describe detailed limitations, sample characteristics, or validation procedures. The summary also only states that the framework aligns macro-level SCF elements with five operational areas; it does not provide further evidence beyond the reported model.

    • Supply Chain Flexibility was modeled as a hierarchy, not as separate unrelated parts.
    • The nature of customers was identified as the main building block of Supply Chain Flexibility.
    • Strategic redundancies were described as a later outcome of an advanced Supply Chain Flexibility system.
    • The study used Interpretive Structural Modelling to map relationships among flexibility elements.
    • The framework links macro-level SCF elements to market, delivery, logistics, organizational, and volume flexibility.

  • ECSR raises profits in a vertically differentiated duopoly

    What the study found

    The study found that firms in a vertically differentiated duopoly can have incentives to adopt environmental corporate social responsibility (ECSR), which means business practices aimed at reducing environmental harm. It also found that both firms can earn higher profits with ECSR than without it.

    Why the authors say this matters

    The authors conclude that ECSR may be chosen endogenously by both firms, meaning it can emerge from the firms' own strategic choices rather than from outside pressure. They also suggest that cooperative ECSR, where both firms commit together, leads to a higher strategic level than non-cooperative ECSR.

    What the researchers tested

    The researchers studied strategic incentives to adopt ECSR in a vertically differentiated duopoly, a market with two firms offering different quality levels and facing quality-cost differences. They compared outcomes under non-cooperative ECSR, cooperative ECSR, and no ECSR.

    What worked and what didn't

    The low-quality firm chooses a higher ECSR level than the high-quality firm when it has a relatively larger quality-cost advantage than the high-quality firm. When the low-quality firm has a relatively smaller quality-cost advantage, it chooses a lower ECSR level than the high-quality firm. Both firms achieve higher profits with ECSR than with no ECSR, and both endogenously choose ECSR regardless of quality-cost differences.

    What to keep in mind

    The abstract does not describe empirical data, so the findings are presented as a theoretical analysis of a duopoly model. It also does not state any limitations beyond the model setting.

    • The study analyzes ECSR in a vertically differentiated duopoly with quality-cost differences.
    • The low-quality firm's ECSR level depends on its quality-cost advantage relative to the high-quality firm.
    • Both firms earn higher profits with ECSR than with no ECSR.
    • Both firms endogenously choose ECSR regardless of quality-cost differences.
    • Cooperative ECSR leads to a higher strategic level than non-cooperative ECSR.