A Gower Book

International Operations Management

This page has been left blank intentionally

International Operations Management

Lessons in Global Business

EDITED BYALBERTO F. DE TONI

R.D. Franco, J. Li, Y. Li, G. Nassimbeni, M. Sartor, X. Zhao and X. Xu

© De Toni, Alberto F. 2011

De Toni, Alberto F. has asserted his moral right under the Copyright, Designs and Patents Act, 1988, to be identified as the editor of this work.

Gower Applied Business ResearchOur programme provides leaders, practitioners, scholars and researchers with thought provoking, cutting edge books that combine conceptual insights, interdisciplinary rigour and practical relevance in key areas of business and management.

British Library Cataloguing in Publication DataInternational operations management : lessons in global business.

1. International business enterprises--Management--Case studies. 2. Production management--Case studies. I. De Toni, Alberto F. 658’.049-dc23

Library of Congress Cataloging-in-Publication DataDe Toni, Alberto F.

International operations management : lessons in global business / byAlberto F. De Toni.

p. cm.Includes bibliographical references and index.

1. International business enterprises--Management. 2.International trade. 3. Industrial management. I. Title. HD62.4.D42 2011658.5--dc23

2011025330

Routledge is an imprint of the Taylor & Francis Group, an informa business

2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN711 Third Avenue, New York, NY 10017, USA

Published 2016 by Routledge

First published 2011 by Gower Publishing

All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers.

Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe.

Notices:

ISBN 978-1-4094-0329-6 (hbk)

ISBN 9781409403296 (hbk)

Copyright

Contents

List of Figures viiList of Tables ixAbout the Editor xiAbout the Co-editors xiii

Introduction 1

PART 1 INTERNATIONAL OPERATIONS STRATEGY 5

Chapter 1 The Pacorini Case Study: Deliberate and Emergent Strategy 7Alberto F. De Toni, Massimo Biotto and Lorenzo Ioan

Chapter 2 Electrolux Case Study: Competing on Time 33Alberto F. De Toni, Cinzia Battistella and Lorenzo Ioan

PART 2 INTERNATIONAL NETWORKED ORGANIZATION STRATEGY 57

Chapter 3 Ford Case Study: The Network Evolution from Extended Enterprise to Virtual Enterprise 59Ángel Ortiz-Bas, Rubén Darío Franco, Francisco-Cruz Lario and Pedro Gómez-Gasquet

Chapter 4 Dongfang Electric Corporation Case Study: Virtual Enterprise in Contract and Services Project 81Jun Li, Naiyi Ye and Peng Guo

Chapter 5 Keraben Case Study: Service and Product Development 97Faustino Alarcón, Rubén Darío Franco, M.M.E. Alemany and Francisco-Cruz Lario

PART 3 INTERNATIONAL NEW PRODUCT DEVELOPMENT 117

Chapter 6 Huawei Case Study: Country-specific Factors Affecting New Product Development 119Yuan Li, Chenlu Zhang, Xiyao Li, and Heng Liu

vi I n t e r n a t i o n a l O p e r a t i o n s M a n a g e m e n t

Chapter 7 LIMA Case Study: Factors Affecting Research and the Development of New Products 133Guido Nassimbeni, Marco Sartor and Damiano Soligo

Chapter 8 Monalisa Case Study: Energy-saving Needs in New Product Development 147Lei Yang, Xuejun Xu, Jing Zha and Weiquan Zhang

PART 4 INTERNATIONAL SOURCING AND MANUFACTURING 165

Chapter 9 Flextronics Case Study: International Sourcing: Organizational Dilemmas 167Yina Li, Xuejun Xu, Fei Ye and Qian Wang

Chapter 10 GREE Case Study: China Goes Abroad Too 179Fei Ye, Xuejun Xu, Xiande Zhao and Zhiqiang Wei

Chapter 11 Danieli Case Study: Examples of Countertrade Agreements in China 195Guido Nassimbeni, Marco Sartor and Anna Mucignat

PART 5 INTERNATIONAL LOGISTICS 207

Chapter 12 Illycaffè Case Study: Sustaining Quality from Green Coffee to the Cup: Logistics as a Competitive Weapon 209Alberto F. De Toni, Massimo Biotto and Fabio Nonino

Chapter 13 DCHS Case Study: Third-party Logistics – Advanced Services to gain a Competitive Advantage 231Hejun Zhuang, Xiande Zhao, Jeff Hoi Yan Yeung, Bin Zeng and Juan Hao

Chapter 14 Mazo Group Case Study: Effects of Changing Regulations and Costs on Networks and Transportation Modes 247Pedro Gómez-Gasquet, Rubén Darío Franco, Eduardo Vicens-Salort and Rosa Navarro-Varela

Index 265

List of Figures

1.1 The business model concept 131.2 The business model as outcome of strategic choices 141.3 Emergent and deliberate strategy 151.4 A company’s strategic evolution path 151.5 Phase 1 (1930s–1950s): Pacorini business model A 241.6 Phase 2 (1960s): Pacorini business model B 251.7 Phase 3 (1970s): Pacorini business model C 251.8 Phase 4 (1980s–1990s): Pacorini business model D 261.9 Phase 5 (2000s): Pacorini business model E 271.10 Pacorini’s strategic path 272.1 An illustration of operation systems 342.2 The matryoshka of strategy levels 352.3 Classification of time performances 372.4 The operations value chain 392.5 Product categories and business areas 422.6 Changes in demand characteristics over the last six years 442.7 The Electrolux manufacturing system temple 462.8 Assembly line length reduction 482.9 Production planning and control at Electrolux: 20-day response time

(as is) 492.10 Production planning and control at Electrolux: eight-day response

time (objective) 502.11 Materials handling: forklift versus milk-run 522.12 Assembly line levelling ‘as is’ (A) and ‘objective’ (B) 532.13 The operations value chain applied to Electrolux Professional 543.1 The extended enterprise model 603.2 The virtual enterprise model 623.3 The migration space 653.4 The migration path from an EE to a VE 663.5 Ford Spain operation 683.6 Ford’s supply chain (inter-enterprise flows) 713.7 Migration path defined for Ford’s supply chain pilot 734.1 Classification of organizational networks 824.2 The VE concept 844.3 The life cycle of VE 854.4 The organizational structure of DEC 864.5 The business network that exists between participants 894.6 Virtual business network of project management mode and

executive organization 90

viii I n t e r n a t i o n a l O p e r a t i o n s M a n a g e m e n t

4.7 Major business-related flows between participants 925.1 Value chain scenarios; from traditional value chain (1) to

collaborative selling chain (2) 1025.2 The Keraben value chain 1035.3 Keraben value map 1045.4 Description of the problem 1065.5 Actors involved in the EOM 1075.6 The new collaborative network 1075.7 Order management life cycle 1095.8 Extended order management process 1115.9 The collaborative order promising sub-process 1126.1 Huawei’s product position in the global market 1226.2 Huawei’s global operations 1236.3 The stages of new product development in Huawei 1246.4 Huawei’s R&D spending 2001–2004 1256.5 The distribution of employees in Huawei 1268.1 The funnel model of the NPD process 1488.2 A typical stage-gate process with five stages and five gates 1498.3 The NPD flow chart 1599.1 Flextronics’ international sourcing locations 1719.2 The location of Zhuhai and its neighbours 17110.1 Gree’s sales network 18510.2 Gree’s annual total sales revenue from 1991 to 2008 18610.3 Gree’s overseas sales revenue from 1991 to 2008 18610.4 Brazil and Manaus 18912.1 Classical government structures 21012.2 Customer–supplier relations grid 21112.3 Illy’s coffee supply chain 21812.4 World coffee-growing regions 21912.5 Illy’s practices for SCM coordination and quality assurance 22312.6 The impact of cultural diffusion and sharing along the supply chain

on SCC effort and costs 22512.7 The effects of illy’s knowledge, expertise and culture diffusion on

product quality 22513.1 DCHS’ organization structure 23713.2 Total volume and growth rate of China’s logistics industry 23813.3 The old supply chain of Almond Roca 24213.4 The redesigned supply chain of Almond Roca 24213.5 The old logistic flow of La Cafetière products 24313.6 The new logistics network of La Cafetière products 24514.1 Mind map of influences in tactical network design 25014.2 An example of the route from Le Boulou to Bettembourg 25714.3 Schedules in a typical trip from the Valencia area to centre Europe 258

List of Tables

I.1 The structure of the book 21.1 Three generic strategies 91.2 Pacorini’s strategic milestones 231.3 Pacorini’s strategy evolution 232.1 Electrolux consolidated results: three-year review 412.2 The modular cooking platform at Electrolux Professional 433.1 Summary of characteristics of the extended enterprise concept 613.2 Summary of characteristics of the virtual enterprise concept 635.1 Characteristics of the concepts cooperation, coordination and

collaboration 996.1 Huawei’s increasing volume of contract sales 1226.2 Huawei’s main R&D centers 12610.1 Host country determinants of FDI 18411.1 Major forms of countertrading: main features (based on the literature

review) 19914.1 Transport mode characteristics 25114.2 Performance of route by road only vs by intermodal transport 259

This page has been left blank intentionally

About the Editor

Alberto Felice De Toni is full professor of Operations Management and Complexity Management at the University of Udine (Italy); he is also the dean of the Faculty of Engineering there. He received his Master Degree magna cum laude in Chemical Engineering from the University of Padova and his Ph.D. in Innovation Management Science.

His scientific activity has been developed in the following fields: manufacturing strategy, operations management, supply chain management, performance measurement systems, new product development, innovation management and complex systems management. At the University of Udine he founded and developed the Management Engineering Research Laboratory, where five professors and about 15 Ph.D. students and postdoctoral students work. Professor De Toni has published over 200 papers in a number of leading international and national journals and conferences. He is member of the editorial board of the Journal of Operations Management and a reviewer for national and international journals and conferences including Journal of Operations Management, International Journal of Operations and Production Management, International Journal of Production Research and Omega – The International Journal of Management Science.

He has been chief and member of board of many doctorate and masters schools, for example the Interpolytechnic Doctoral School (Polytechnic of Torino, Milano and Bari), CUOA – University Centre for the studies in Company Management in Altavilla Vicentina (University of Padova, Venezia, Verona, Trento, Udine, Trieste and Institute of Architecture of Venezia), Center for Supply Chain Management – Chinese University of Hong Kong, Doctoral Research in Managerial Engineering of the Universities of Padova, Udine and Bologna.

He is the leader of many projects including the International Operations Management project co-financed by the European Comission – Asia-Link Programme – and also works on the assessments of research project for the European Commission Research Directorate General and for the Italian government.

Dr. De Toni is a member of Production and Operations Management Society (USA), Decision Science Institute (USA), European Operations Management Association, Italian Association of Management Engineering. He has been the dean of the Association since 2009.

He has been involved in many activities to improve the relationships between the university and the local area as director of Agemont S.p.A. – Agenzia di sviluppo economico della montagna, Friuli Venezia Giulia, and also former vice president of Friuli Innovazione and Area Science Park.

Dr. De Toni has coordinated for the Italian government the national commission for the reorganization of the technical and professional high schools.

This page has been left blank intentionally

About the Co-editors

Rubèn-Darìo Franco is lecturer in Operations Management, Polytechnic University of Valencia, at the Industrial Engineering School. Since 2001 he has been a member of the Research Centre on Production Management and Engineering, is responsible for the Virtual and Networked Enterprises Research Line and has been involved in several European, national and regional projects. Examples include the VCHAIN Project (Virtual Enterprise for Supply Chain Management-GRD1-2000-25881) and University leader of ECOSELL (Extended Collaborative Selling Chain-GRD1-2001-40692), UEML (Unified Enterprise Modelling Language IST-2001-34229, a thematic network) and VCHAIN ASIA-IT (ASI/B7-301/97/0126-49).

Jun Li is professor of Management Science and Engineering at the Southwest Jiaotong University (SWJTU) of China. She is the executive vice dean of the School of Economics and Management at the SWJTU. She received her Ph.D. Degree in management science and engineering from SWJTU, and had been the postdoctoral fellow in the Department of System Engineering and Engineering Management of Chinese University of Hong Kong.

Her researches and teaching mainly focus on operations research, logistics management, game theory and its application. Especially, her scientific activity has developed in vehicle routing, scheduling, collaborative transportation management, perishable inventory models, and supply chain coordination. On these topics, she has published more than 80 scientific works in a number of international and leading national journals, including Journal of Industrial and Management Optimization, International Journal of Information and Decision Science, Journal of Electronic Commerce Research, Journal of Management Sciences in China, Chinese Journal of Management Science, System Engineering, Journal of System Engineering, Journal of System Engineering-Theory and Practice and so on. Her researches have been supported by Natural Science Fund of China, National Social Science Fund of China. In addition, she has written two books, and gains several achievements from her published papers and books.

She was awarded as the New Century Excellent Talents in Universities of China, the First Prize Awards of the 9th Young Teachers Award of Fok Ying Tung Education Foundation, the First Prize Awards of the Excellent Textbook by the Ministry of Railway of P.R. China, and the Second Prize Awards of the Science and Technology Progress by Sichuan Provincial Government of P.R. China, a distinguished teacher in Sichuan Province, a leader of academy and technology in Sichuan Province, the Prize Awards of one of the First Ten Excellent Youth of Chengdu city.

Currently, she is the vice chairman of Intelligent Transportation Committee of Chinese Association for Artificial Intelligence, a member of Operations Management Committee of Chinese Management Modernization Institute, and International Production and Operations Management Society.

xiv I n t e r n a t i o n a l O p e r a t i o n s M a n a g e m e n t

Yuan Li is professor of innovation management at Shanghai Jiaotong University and is Executive Dean of Antai College of Economics & Management. He was former Dean of management school of Xi’an Jiaotong University.

His research interests are related to strategy management, innovation management and entrepreneurship and he has published numerous scientific works in international journals or books. His research has been funded by several national and international institutions. He has published in a number of leading journals, including Journal of Operations Management, Journal of Product Innovation Management, Industrial Marketing Management, Asia Pacific Journal of Management, International Journal of Production Research, International Journal Manpower, Journal of Technology Transfer and European Journal of Operational Research. He is a reviewer for national and international journals and conferences, including Asia Pacific Journal of Management, International Journal of Production Research, and Journal of Operations Management.

He is associate chair of the Directive Council of the Chinese Association of Management Science. He has taken part in various research projects promoted by the Chinese Ministry of Education, Ministry of Science and Technology, National Natural Science Foundation of China (NSFC) and many other local, national and international institutions.

He collaborates with various national and foreign university institutions, such as the school of business at the University of Alberta, Canada, and the school of management London Business School, UK.

Guido Nassimbeni is professor of Economics and Business Strategy at the University of Udine (Italy) and is Associate Editor of the Journal of Operations Management, Area Editor of Operations Management Research and member of the Editorial Review Board of the Journal of Purchasing and Supply Management. He is also dean of the Managerial Engineering Faculty, University of Udine.

His research interests are related to: new production models and advanced buyer–supplier interactions, subcontracting models with small firms, vendor rating/ranking, supply chain network management and international sourcing. On these topics he has published more than 80 scientific works, most of them on international journals or books. His research has been funded by several national and international institutions. He has published in a number of leading journals, including Journal of Operations Management, Research Policy, International Journal of Production Research, OMEGA, International Journal of Operations and Production Management. He is reviewer for national and international journals and conferences, including Journal of Operations Management, International Journal of Operations and Production Management and International Journal of Production Research.

Guido is a member of the Directive Council of the Italian Association of Managerial Engineering, as well as various commissions and work groups of the University of Udine. He has taken part in various research projects promoted by the Italian Ministry of Education and Research, the National Council for Research (CNR), and many other local, national and international institutions. He coordinated the EU project ‘International Sourcing strategies for China’. Partners in the project were the University of Udine (Italy), the University of Magdeburg (Germany), the National Centre of Science and Technology Evaluation (Bejing, China) and Innova (Italy).

He collaborates with various national and foreign university institutions, such as the Centre for Research in Strategic Purchasing and Supply (CRISPS), University of Bath, the Carlson School of Management (Minnesota University), the Cranfield School of

xvA b o u t t h e C o - e d i t o r s

Management (Cranfield University), the Said Business School (University of Oxford) and the Rotman School of Management (Toronto University). He is a member of the Italian Association of Managerial Engineering (AiIg), the European Operations Management Association (EurOMA), the International Purchasing and Supply Education and Research Association (IPSERA) and the Productions and Operations Management Society (POMS).

Marco Sartor is currently assistant professor at the University of Udine, Italy. His studies mainly concern international sourcing and manufacturing and quality management. He conducted his research working with several leading companies including Accenture, Black&Decker, Fiat, Fincantieri, GlaxoSmithKline, Luxottica, NCR, Safilo, Telecom Italia, Thun and Trudi.

He has published more than 30 scientific works in a number of leading journals, including International Journal of Production Economics and Production Planning and Control. Together with Guido Nassimbeni he is the co-author of Sourcing in China (Palgrave Macmillan, 2006) and Sourcing in India (Palgrave Macmillan, 2008) books. He is also reviewer for national and international journals.

He is a member of AiIG (Italian Association of Managerial Engineering), EurOMA (European Operations Management Association) and POMS (Production and Operations Management Society).

Xiande Zhao is currently a professor of Operations Management in the Department of Decision Sciences and Managerial Economics and Director of the Center for Supply Chain Management and Logistics, Li and Fung Institute of Supply Chain Management/Logistics at the Chinese University of Hong Kong. He is an adjunct professor or guest professor at South China University of Technology, Xi’an Jiao Tong University, Nankai University and Wuhan University.

Dr Zhao’s teaching and research interests are in the areas of supply chain management, operations strategy, quality management and services operations management. He has performed a number of projects on supply chain management, quality management and operations strategy in China. Currently he is working on several international projects to examine similarities and differences in relationship management, supply chain integration and manufacturing practices between China, USA, European, Latin America and other Asian countries.

He has published over 50 articles in refereed journals including Journal of Operations Management, Journal of Consumer Research, Decision Sciences Journal, Production and Operations Management, European Journal of Operational Research, International Journal of Production Research, and Journal of Supply Chain Management.

Dr Zhao is currently the President of International Association for Information and Management Sciences and Vice President of Asia Pacific Institute of Decision Science. He is an Associate Editor for Journal of Operations Management, Decision Sciences Journal, Operations Management Research, International Journal of Business and System Research, and a senior editor of Production and Operations Management Journal. He is also a member of the international advisory committee for Journal of Supply Chain Management and a member of H panel in the Research Grant Council of Hong Kong.

He received his Ph.D. in business administration with a major in operations management and a minor in international business from the University of Utah in the

xvi I n t e r n a t i o n a l O p e r a t i o n s M a n a g e m e n t

USA. He also received his MBA and MSc in Chemistry from the same university and a Bachelor’s degree in chemistry from Nankai University in China.

Xuejun Xu is professor and tutor for doctoral candidate of Management Science and Engineering, Director of Department of Industrial Engineering at Business Administration School, Director of the Center for Industrial Engineering in South China University of Technology, China, Director of the Chinese System Engineering Society, Chinese Industrial Engineering Society and Chinese Management Society and a member of the Productions and Operations Management Society. His teaching and research interests lie in production and inventory control, operations strategy, supply chain management and industrial engineering.

He received a Ph.D. in management sciences from Tianjin University, China in 1995 and obtained a MA in systems engineering from Tianjin University, China in 1992 and a BA in systems engineering from Nankai University, China in 1987 respectively. Prior to joining South China University of Technology, he had worked as a Postdoctoral Research Fellow in Nankai University, China from 1995–1997.

Dr Xu has been teaching the MBA programme and Management Engineering Master Program at the Business Administration school for close to ten years. He teaches many courses, including operations management, supply chain management and industrial engineering and so on.

Dr Xu has a wealth of research experience in the operations management arena and has been working on many projects granted by the National Natural Science Fund Commission (NSFC), for example, ‘Production/Operations Strategy and Implementation Monitoring’ 2000–2002, ‘Manufacturing Enterprises’ Value Chain and Value added Mode in Net Economy’ from 2003 and ‘Symbiosis Relationship between Manufacturing and Productive Services in process of Chinese Emerging Industrialization’ from 2006. He focused on the formulation and implementation of operations strategy across the manufacturing facilities in the Pearl River region. He has written three books and published more than 60 papers.

Introduction

Operations management is a branch of study that is evolving day after day. Market globalization, technological development, the overcoming of international trade barriers and the boom in some dormant economies are modifying the economic structure of many countries and pushing companies to change their strategies and way of doing business. The rapid rate of change of corporate modus operandi involves the rethinking of operations management strategies: innovative approaches to international new product development, sourcing, manufacturing and logistics are required to maintain and increase competitive advantage.

These changes contribute to the operations management discipline new research topics that take into account the new order and the new economies that are shifting the world’s economic equilibrium. The dynamics are even more articulated if the actors involved belong to different economics scenarios.

Paradoxically, internationalization processes are not limiting country-specific aspects but rather highlighting them. There are many country-specific cultural, legislative and infrastructural aspects that can influence future choices.

The Objectives of this Book

The book was born from an awareness of these ongoing mutations and with the objective of offering some food for thought on this evolving scenario.

The text has also the ambitious objective of giving the reader a wide view on some of the typical operations management topics, such as strategy, new product development, sourcing, manufacturing, logistics and networked organization. These topics will be also seen from different perspectives that sometimes seem irreconcilable: those of the West and the East.

International Operations Management – Lessons in Global Business is the first book to offer a comparison between strategies, methods and experiences of major European and Asian companies, highlighting not only traditional offshoring processes from the West to the Far East, but also the inverse process, which is increasingly frequent. This approach is rarely considered in the literature of international operations management.

The book collects the results of a scientific collaboration project (IOM – International Operations Management) that involved six European and Asian Universities: the University of Udine in Italy, Universidad Politécnica de Valencia, Spain, South China University of Technology, School of Business Administration in China, Xi’an Jiaotong University, School of Management, China, Southwest Jiaotong University, School of Economics and Management, China and The Chinese University of Hong Kong. It was cofounded by the European Union under the Asia-Link Programme. This project’s objective was to develop new didactical material based on the direct experience of companies engaged in

2 I n t e r n a t i o n a l O p e r a t i o n s M a n a g e m e n t

internationalization of the operations process. Fourteen case studies were chosen from twenty for the relevance of the topic discussed and the innovative solutions identified.

The Structure of the Book

In creating the collection of cases, we decided to cover five areas: international operations strategy, international networked organization strategy, international new product development, international sourcing and manufacturing and international logistics. These became the five sections of the book.

Each section contains differently focused cases. Table I.1 summarizes the structure of the book: its sections, the title and subtitle of the cases, their authors and their university.

Table I.1 The structure of the book

Section Case Title Subtitle Authors University

International Operations Strategy

Pacorini Deliberate and emergent strategy

The business model as an interpretative tool for strategic evolution

De Toni Alberto F., Biotto Massimo, Ioan Lorenzo

Udine

Electrolux Competing on time

Alignment of operations strategy with market requirements in an international context: applying lean production to increase delivery timeliness

De Toni Alberto F., Battistella Cinzia, Ioan Lorenzo

Udine

International Networked Organization Strategy

Ford The network evolution from extended enterprise to virtual enterprise

The path followed by a leading company belonging to the automotive sector in the transformation from extended to virtual enterprise

Ángel Ortiz-Bas, Rubén Darío Franco, Francisco Lario-Esteban, Pedro Gómez-Gasquet

Valencia

Dongfang Electric Corporation (DEC)

Virtual enterprise in contract and service project

An example of creation of an international virtual business network in a contract and service project

Jun Li, Naiyi Ye and Peng Guo

Chengdu

Keraben Service and product development

Combining customer needs and network capability in new product/service development

Faustino Alarcón, Rubén Darío Franco, MME Alemany, Francisco Lario-Esteban

Valencia

International New Product Development

Huawei Country specific factors affecting new product development

Country specific factors (governmental regulations, local standards, customers needs and habits etc.) to be taken into account in the new product development. An example from the telecommunication sector

Yuan Li, Chenlu Zhang, Xiyao Li, Heng Liu

Xian

Lima Factors affecting research and the development of new products

How human characteristics, practitioners’ habits and health care system regulations affect the research and development of medical devices

Nassimbeni Guido, Sartor Marco, Soligo Damiano

Udine

Monalisa Energy-saving needs in new product development

Chinese necessity to reduce energy consumption forces to get energy savings and to develop environmental friendly products

Lei Yang, Xuejun Xu, Jing Zha, Weiquan Zhang

Guangzhou

3I n t r o d u c t i o n

International Sourcing and Manufacturing

Flextronics International sourcing: organizational dilemmas

The choice between centralized and decentralized management, national and international sourcing basins

Yina Li, Xuejun Xu, Fei Ye and Qian Wang

Guangzhou

Gree China goes abroad too

An example of a Chinese company developing a production facility in Brazil in order to reach an important market

Fei Ye, Xuejun Xu, Xiande Zhao and Zhiqiang Wei

Guangzhou

Danieli Examples of countertrade agreements in China

Countertrade constrains on supply management: operations management effects and alternative approaches

Nassimbeni Guido, Sartor Marco, Mucignat Anna

Udine

International Logistics

Illy Sustaining quality from the green coffee to the cup: logistics as a competitive weapon

Linking business strategy with international supply chain management and pursuing product quality using specific managerial practices throughout the whole supply chain

De Toni Alberto F., Biotto Massimo, Nonino Fabio

Udine

DCHS Third party logistics – Advanced Services to gain a Competitive Advantage

In order to survive in the competitive market, a third-party logistics provider develops a customized value-added services in bonded warehousing

Hejun Zhuang, Xiande Zhao, Jeff Hoi Yan Yeung, Bin Zeng, Juan Hao

Guangzhou

Mazo Transfrigo

Effects of changing regulations and costs on networks and transportation modes

Two European trends – reducing pollution and fuel costs – lead to the development of intermodal transport and aredesign of networks to reduce costs

Perdro Gómez-Gasquet, Rubén Darío Franco, Eduardo Vicens, Rosa Navarro-Varela

Valencia

Case Study Structure

In order to make each chapter accessible, all of the cases have been articulated using the following structure:

• The first paragraph offers useful theoretical elements on the topic of the case; this section can help either students or non-academic practitioners to link conceptual and practical approaches or to set the case in a wider context;

• In the second paragraph – after a brief company description – the main experiences of the company are reported highlighting the problems faced, the approaches adopted, the steps followed and the criticalities verified;

• The Lesson learned box summarizes what we hope the reader will take from each case study. The lesson learned can be seen as an experiential road map, a kaleidoscope from which it is possible to comprehend the history of people and organizations;

• A further box gives some questions for the students and food for thought with ideas for open discussion.

Each case study has its own bibliographical notes: the main references used to develop the theoretical section and to help with further study.

Table I.1 The structure of the book

4 I n t e r n a t i o n a l O p e r a t i o n s M a n a g e m e n t

The Value of the Case Studies

Companies are for management what laboratories are for science: these are the places of experimentation and in-depth studies. Case studies are not of secondary importance in management but the source of the theory.

Companies are like an exercise room where knowledge is gained more from practice than theory, more from action than thought, more learned that taught, more based on inductive approaches than deductive ones, more on ‘to know what to do’ than ‘to know’, where practical activities are as important as the intellectual ones, where the diffusion of knowledge is more horizontal than vertical and where the problems are not artificial but real.

References

1 Chapter 1 The Pacorini Case Study:Deliberate and Emergent Strategy

Afuah, A., and Tucci, L. (2001). Internet Business Modelsand Strategies: Text and Cases. New York:

McGraw-Hill.

Akan, O., Allen, R., Helms, M. and Spralls III, S. (2006).Critical tactics for implementing Porter’s

generic strategies. Journal of Business Strategy, 27(2),43–53.

Allen, R.S., Helms, M.M., Takeda, M.B., White, C.S. andWhite, C. (2006). A comparison of

competitive strategies in Japan and the United States, SAMAdvanced Management Journal, Winter,

24–34.

Baden-Fuller, C. and Stopford, J.M. (1992). Rejuvenatingthe Mature Business. The Competitive Challenge.

London: Routledge.

Bauer, C. and Colgan, J. (2001). Planning for electroniccommerce strategy: an exploratory study

from the financial service sector. Logistics InformationManagement, 14(1/2), 24–32.

Beheshti, H.M. (2004). Gaining and sustaining competitiveadvantage with activity-based cost

management system. Industrial Management and Data Systems,104(5), 377–383.

Chesbrough, H. and Rosenbloom, R.S. (2002). The role of thebusiness model in capturing value

from innovation: evidence from Xerox Corporation’stechnology spinoff companies. Industrial

and Corporate Change, 11(3), 529–555.

Deshmukh, R. (2000). Understanding the business models for

the Internet economy. Retrieved 15

December 2004, fromhttp://pegasus.rutgers.edu/~rajadesh/Project_reports.htm.

Dubosson-Torbay, M., Osterwaldeer, A. and Pigneur Y.(2002). E-business model design, classification

and measurements. Thunderbird International BusinessReview, 44(1), 5–23.

Freeman, P. (2003). Are e-business models useful? Workingpaper, Swinburne University of

Technology, Melbourne, Australia.

QUESTIONS FOR STUDENTS:

1. Which are Porter’s three generic strategies?

2. Which are Miles and Snow’s four generic strategies?

3. How can we conceive of the business model approach?

4. Can Pacorini’s strategic evolution be described by oneof Porter’s three generic strategies? Explain your answer.

5. Can Pacorini’s strategic evolution be described by oneof Miles and Snow’s four generic strategies? Explain youranswer.

6. What are the advantages of using the business modelapproach in describing Pacorini’s strategic evolution?

OPEN DISCUSSION:

1. The innovative aspect of this analysis lies in makingthe business model a conceptual tool for visualising theevolution of a company’s strategy. Can this approach beapplied successfully in a wide range of company types andindustries?

2. The business model approach harnesses the emergentcomponent of a company’s strategy. Identify and describethe main issues of today’s competitive environment whichgive this component an important role in the strategyrealisation.

30 I n t e r n a t i o n a l O p e r a t i o n s M a n ag e m e n t

Gordijn, J., Akkermans, H. and van Vleit, H. (2000).Business modelling is not process modelling.

In Conceptual Modeling for E-business and the Web. ECOMO,1921(40–51) of LCNS, Springer.

Graf, L. (2005). Incompatibilities of low-cost and networkcarrier business models within the same

airline grouping. Journal of Air Transport Management,11(5), 313–327.

Hambrick, D.C. (1983). High profit strategies in maturecapital goods industries: a contingency

approach. The Academy of Management Journal, 26(4), 687–707.

Hambrick, D.C. (1984). Taxonomic approaches to studyingstrategy: some conceptual and

methodological issues. Journal of Management, 10(1), 27–41.

Krishnamurthy, S. (2003). E-Commerce Management, Text andCases. New York: Thompson Learning.

Miles, R.E. and Snow, C.C. (1978). Organizational Strategy,Structure, and Process. New York: McGraw

Hill.

Miles, M.B., Louis, K.S., Rosenblum, S., Cipollone A. andFarrar, E. (1988). Lessons for Managing

Implementation. Boston, MA: Center for Survey Research:University of Massachusetts.

Miller, D. (1992). The generic strategy trap. The Journalof Business Strategy, 13(1), 37–41.

Mintzberg, H. (1978). Patterns in strategy formation.Management Science, 24(9), 934–948.

Mintzberg, H., Ahlstrand, B. and Lampel, J. (1998).Strategy Safari: A Guided Tour Through the Wilds

of Strategic Management. New York: Free Press.

Mintzberg, H. and Waters, J.A. (1985). Of strategies,deliberate and emergent. Strategic Management

Journal, 6(9), 257–272.

Mitchell, D.E.W. and Coles, C. (2004). Establishing acontinuing business model innovation process.

Journal of Business Strategy, 25(3), 39–49.

Morris, M., Schindehutte, M. and Allen, J. (2005). Theentrepreneur’s business model: toward a

unified perspective. Journal of Business Research, 58(6),726–735.

Murray, A.I. (1988). A contingency view of Porter’s genericstrategies. Academy of Management Review,

13(3), 390–400.

Olofsson, L. and Farr, R. (2006). Business model tools anddefinition – a literature review. VIVACE

D_2.1.2_1 (VIVACE 2.1/VAC/T/06001.01).

Osterwalder, A. (2004). The business model ontology – aproposition in a design science approach.

Unpublished Ph.d. Thesis. University of Lausanne, Lausanne,Switzerland.

Osterwalder, A., Pigneur, Y. and Tucci, C.L. (2005).Clarifying business models: origins, present, and

future of the concept. Communications of the Associationfor Information System, 15(May), 1–43.

Pettigrew, A., Thomas, H. and Whittington, R. (2002).Strategic management: the strengths and

limitations of a field. In Pettigrew, A., Thomas, H. andWittington, D. (Eds), Handbook of Strategy

and Management, London: Sage, pp. 3–30.

Porter, M.E. (1979). The structure within industries andcompanies’ performance. The Review of

Economics and Statistics, 61(2), 214–227.

Porter, M.E. (1980). Competitive Strategy. New York: Free

Press.

Porter, M.E. (1985). Competitive Advantage: Creating andSustaining Superior Performance. New York:

Free Press.

Porter, M.E. (1986). Changing patterns of internationalcompetition. California Management Review,

28(2), 9–39.

Porter, M.E. (1987). From competitive advantage tocorporate strategy. Harvard Business Review,

65(3), 43–59.

Priem, R.L. (2007). A consumer perspective of valuecreation. Academy of Management Review, 32(1),

210–235.

Rappa, P. (2003) Business models on the web. Fromhttp://digitalenterprise.org/models/models.

html, accessed 17 January 2008. 31T h e P a c o r i n i Ca s e S t u d y

Shafer, S.M., Smith, H.J. and Linder, J.C. (2005). Thepower of business models. Business Horizons,

48(3), 199–207.

Timmers, P. (1999). Electronic Commerce: Strategies andModels for Business-to-business Trading.

Chichester: Wiley and Sons.

Turban, E., King, D., Lee, J., Warkentin, M. and Chung, M.(2002). Electronic Commerce; A Managerial

Perspective, International Edition. Upper Saddle River, NJ:Pearson Education.

Vlaar, P., De Vries, P. and Willenborg, M. (2005). Whyincrements struggle to extract value from

new strategic options: case of the European airlineindustry. European Management Journal, 23(2),

154–169.

Vokurka, R.J. and Davis, R.A. (2004). Manufacturingstrategic facility types. Industrial Management

and Data Systems, 104(6), 490–504. This page has been leftblank intentionally

2 Chapter 2 Electrolux Case Study:Competing on Time

Azzone, G., Masella, C. and Bertelè, U. (1991). Design ofperformance measures for time-based

companies. International Journal of Operations & ProductionManagement, 11(3), 77–85.

De Toni, A.F., Filippini, R. and Forza, C.(1992).Manufacturing strategy in global markets: an

operations management model. International Journal ofOperations & Production Management,

12(4), 7–18.

De Toni, A.F. and Meneghetti, A. (2000). Traditional andinnovative paths towards time-based

competition. International Journal of Production Economics,66(3), 255–268.

LESSON LEARNED

Coherence between operations strategy and internationalmarket

requirements

The Electrolux case study suggests how satisfying realmarket needs, especially in an

international context, requires that a company develops itsoperations to be a competitive

and strategic weapon. The international pressure for betterservice levels required an

operations strategy focused on reducing internal timeperformances. Thus a company aiming

to increase its level of service can rely on lean practicesto improve time performances and,

at the same time, generate significant cost savings. Thisreduction of delivery time requires

action on multiple levels: redesign of the plant layout,rethinking of materials handling and

replenishment logics and kanban production planning andcontrol systems.

Any decision made at the corporate or business level has animpact at the operations level.

Clearly understanding this implication allows theorganisation to leverage its operations to

transform every decision made at the divisional or plantlevel into a competitive advantage

for the entire corporation.

QUESTIONS FOR STUDENTS

1. How can the time performances be classified?

2. What are the fundamental aspects of the ElectroluxManufacturing System (EMS), and how are they related tothe decision areas of an operations strategy?

3. What is the most important action introduced by the EMSas far as the management systems are concerned? Why?

OPEN DISCUSSION

1. Analyse Electrolux’s strategy using the strenghts,weaknesses, opportunities, threats (SWOT) framework, andthen try to depict possible alternative operationsstrategies.

2. What if the market was a business-to-consumer one? Tryto depict the main differences and effects on theoperations strategy.

56 I n t e r n a t i o n a l O p e r a t i o n s M a n ag e m e n t

De Wit, B. and Meyer, R. (2004). Strategy. Process,Content, Context. An International Perspective. Mason,

OH: Thomson South-Western.

Fahey, L. and Christensen, H.K. (1986). Evaluating theresearch on strategy content. Journal of

Management, 12(2), 167–183.

Hayes, R.H. and Wheelwright, S.C. (1984). Restoring ourCompetitive Edge: Competing Through

Manufacturing. New York: Wiley.

Hill, T. (1991). Production/Operations Management. NewYork: Prentice Hall.

Leong, G.K., Snyder, D.L. and Ward, P.T. (1990). Researchin the process and content of manufacturing

strategy. Omega, 18(3), 109–122.

Porter, M.E. (1985). Competitive Advantage: Creating andSustaining Superior Performance. New York:

Free Press.

Prasad, S., Babbar, S. and Motwani, J. (2001).International operations strategy: current efforts and

future directions. International Journal of Operations &Production Management, 21(5/6), 645–665.

Schmenner, R.W. (1988). The merit of making things fast.Sloan Management Review, 30(1), 11–17.

Schonberger, R.J. (1986). World-Class Manufacturing: TheLessons of Simplicity Applied. New York: The

Free Press.

Schroeder, R.G. (1989). Operations Management. DecisionMaking in the Operations Function. Singapore:

McGraw-Hill.

Skinner, W. (1969). Manufacturing – missing link incorporate strategy. Harvard Business Review,

47(3), 136–145.

Skinner, W. (1974). The focused factory. Harvard BusinessReview, 52(3), 113–121.

Slack, N., Chamber, S. and Johnston, R. (2001). OperationsManagement, 3rd edn. Harlow: Pearson

Education.

Slack, N. and Lewis, M. (2003). Operations Strategy. UpperSaddle River, NJ: Pearson Education.

Stalk, G. (1988). Time: the next source of competitiveadvantage. Harvard Business Review, 66(4),

41–51.

Stevenson, J. (1990). Production/Operations Management.Homewood, IL: Irwin.

Swink, M. and Way, M.H. (1995). Manufacturing strategy:propositions, current research, renewed

directions. International Journal of Operations andProduction Management, 15(7), 4–26.

Ward, P.T. and Duray, R. (2000). Manufacturing strategy incontext: environment, competitive

strategy and manufacturing strategy. Journal of OperationsManagement, 18(2), 123–138.

3 Chapter 3 Ford Case Study: The NetworkEvolution from Extended Enterprise toVirtual Enterprise

Boardman, J.T. and Clegg, B.T. (2001). Structuredengagement in the extended enterprise. InternationalJournal of Operations & Production Management, 21(5/6),795–811.

Browne, J., Harhen, J. and Shivnan, J. (1996). ProductionManagement Systems: An Integrated Perspective. Harlow:Addison-Wesley Publishers Ltd.

Browne, J., Sackett, P.J. and Wortmann, J.C. (1995). Futuremanufacturing systems – towards the extended enterprise.Computers in Industry, 25(3), 235–254.

Browne, J. and Zhang, J. (1999). Extended and virtualenterprises: similarities and differences. InternationalJournal of Agile Management Systems, 1(1), 30–36.

Camarinha-Matos, L.M. and Afsarmanesh, H. (1999). TheVirtual Enterprise Concept in Infrastructures for VirtualEnterprises. Alphen aan den Rijn, NL: Kluwer AcademicPublishers.

Camarinha-Matos, L.M., Silveri, I., Afsarmanesh, H. andOliveira, A.I. (2005). Towards a framework for creation ofdynamic virtual organizations. In Camarinha-Matos, L.,Afsarmanesh, H. and LESSON LEARNED Opportunities inbecoming a virtual enterprise This case study depicts therelationships between different partners in the evolutionfrom an extended enterprise (characterised by the dominantrole of a single company) to a virtual enterprise (inwhich all the partners have a similar position in thenetwork with more value added for everyone). It highlightsthe opportunities of this transformation. QUESTIONS FORSTUDENTS 1. Which are the main characteristics thatidentify Ford Spain and its suppliers as an EE? 2. Why isit necessary for Ford Spain to change from EE to VE? 3.What do you think about the Ford’s VE supply chain model?Does it fulfil the VE model requests? Why? OPEN DISCUSSION1. Identify those aspects which could limit the migrationprocess from EE to VE. 2. Can you propose another strategyto achieve the FSC’s objectives? Although Ford and itssuppliers have invested a great deal of effort andresources to

become a solid EE and then to migrate to a VE model, thereare still some aspects in need

of improvement. The most important challenge now is toevolve to a more collaborative

organisational model, where all the actors can beintegrated as a real single business

entity. 79F o r d C a s e S t u d y Ortiz, A. (Eds),Collaborative Networks and their Breeding Environments, NewYork: Springer, pp. 69–80.

Childe, S.J. (1998). The extended enterprise – a concept ofco-operation. Production Planning & Control, 9(3),320–327.

Davidow, W.H. and Malone, M.S. (1992). The VirtualCorporation: Structuring and Revitalising the Corporationfor the 21st Century. New York: HarperCollins Publishers.

Gott, B. (1996). Empowered Engineering for the ExtendedEnterprise – A Management Guide. Cambridge, UK: CambashiLtd.

Hardwick, M. and Bolton, R. (1997). The industrial virtualenterprise. Communications of the ACM, 40(9), 59–61.

Karvonen, I., Salkari, I. and Ollus, M. (2005).Characterizing virtual organizations and their management.In Camarinha-Matos, L., Afsarmanesh, H. and Ortiz, A.(Eds), Collaborative Networks and their BreedingEnvironments, New York: Springer, pp. 193–204.

Katzy, B.R. (1999). The value system designer – aninfrastructure for building the virtual enterprise. InCamarinha-Matos, L. and Afsarmanesh, H. (Eds), Proceedingsof the IFIP TC5 WG5.3/PRODNET Working Conference onInfrastructures for Virtual Enterprises – NetworkingIndustrial Enterprises. Alphen aan den Rijn, NL: KluwerAcademic Publishers, pp. 409–420.

Martinez, M.T., Fouletier, P., Park, K.H. and Favrel, J.(2001). Virtual enterprise: organisation, evolution andcontrol. International Journal of Production Economics,74(1), 225–238.

Mo, J., Beckett, R. and Nemes, L. (2005). Technologyinfrastructure for virtual organization of toolmakers. InCamarinha-Matos, L., Afsarmanesh, H. and Ortiz, A. (Eds),Collaborative Networks and their Breeding Environments,New York: Springer, pp. 492–500.

NIIIP (1996). The NIIIP Reference Architecture. Retrieved21 November 2009 from www.niiip.org.

O’Neill, H. and Sackett, P. (1994). The extendedmanufacturing enterprise paradigm. Management Decision,32(8), 42–49.

Ortiz, A., Franco, D. and Alba, M. (2003). V-chain:migrating from extended to virtual enterprise within anautomotive supply chain. In Camarinha-Matos, L. andAfsarmanesh, H. (Eds), Processes and Foundations forVirtual Organizations, Alphen aan den Rijn, NL: KluwerAcademic Publishers, pp. 154–152.

Petersen, S.A. and Szegheo, O. (2000). A Model-basedMethodology for Extended Enterprise Engineering. WorkingPaper, Department of Computer and Information Science,Norwegian University of Science and Technology, Trondheim,Norway.

Petersen, S.A., Paganelli, P. and Schallock, B. (2005).Feature-based analysis framework for interoperability innetworked organisations. In Camarinha-Matos, L.,Afsarmanesh, H. and Ortiz, A. (Eds), CollaborativeNetworks and their Breeding Environments, New York:Springer, pp. 467–474.

Pinheiro, F.R. and Rabelo, R.J. (2005). Experiment on gridcomputing for VE-related applications. In Camarinha-Matos,L., Afsarmanesh, H. and Ortiz, A. (Eds), CollaborativeNetworks and their Breeding Environments, New York:Springer, pp. 483–490.

Sehdev, K., Fan, I.-S., Cooper, S. and Gareth, W. (1995).Design for manufacture in the aerospace extendedenterprise. Word Class Design to Manufacture, 2(2), 28–33.

Vernadat, F.B. (1996). Enterprise Modelling andIntegration: Principles and Applications. London: Chapmanand Hall.

Volpentesta, A.P. and Muzzupappa, M. (2005). The formationof collaborative chains for conceptual design. InCamarinha-Matos, L., Afsarmanesh, H. and Ortiz, A. (Eds),Collaborative Networks and their Breeding Environments,New York: Springer, pp. 89–96.

Walters, H.M.J. (1997). Management and improvement of theextended enterprise. The Institution of Electrical

Engineers Digest, 5, 511.

4 Chapter 4 Dongfang Electric CorporationCase Study: Virtual Enterprise inContract and Services Project

Barnett, W., Presley, M.J. and Liles, D. (1994). Anarchitecture for the virtual enterprise. In IEEEInternational Conference on Systems, Man, and Cybernetics.San Antonio, Texas.

Camarinha-Matos, L.M. and Afsarmanesh, H. (1999). Thevirtual enterprise concept. Infrastructures for virtualenterprises. Networking industrial enterprises. InCamarinha-Matos, L. and Afsarmanesh, H. (Eds), Proceedingsof IFIP TC5 WG5.3/PRODNET, Working Conference onInfrastructures for Virtual Enterprises. Alphen aan denRijn, NL: Kluwer Academic Publishers.

Camarinha-Matos, L.M and Afsarmanesh, H. (2003). Elementsof a base VE infrastructure. Computers in Industry, 51(2),139–163.

Chalmeta, R. and Grangel, R. (2003). ARDIN extension forvirtual enterprise integration. The Journal of Systems andSoftware, 67(3), 141–152.

China Northern Locomotive and Rolling Stock Industry(Group) Corporation (2009). Retrieved 21 November 2009,http://www.dloco.com.

China South Locomotive and Rolling Stock Industry (Group)Corporation (2009). Retrieved 21 November 2009,http://www.msrsco.com.

Cravens, D., Pericy, N.F. and Shipp, S.H. (1996). Neworganizational forms for competing in highly dynamicenvironments. British Journal of Management, 7(3), 203–218.

Dongfang Electric Corporation (2009). Retrieved 21 November2009, from http://www.dongfang. com.cn.

Fitzpatrick, W.M. and Burke, D.R. (2001). Virtual venturingand entry barriers: redefining the strategic landscape.Society for the Advancement of Management Journal, 66(4),22–30.

Gou, H., Huang, B., Liu, W. and Li, X. (2003). A frameworkfor virtual enterprise operation management. Computers inIndustry, 50(3), 333–352.

Jarillo, J.C. (1988). On strategic networks. Strategic

Management Journal, 9(1), 31–41.

Kim, T.Y., Lee, S., Kim, K. and Kim, C.H. (2006). Amodeling framework for agile and interoperable virtualenterprises. Computers in Industry, 57(3), 204–217.QUESTIONS FOR STUDENTS 1. What is a virtual enterprise? 2.What is the role of DEC in the virtual enterprise? 3. Whatfactors promote cooperation between the government ofPakistan, DEC, CSRMRSC, CNR-DLRSW and other subcontractorsin this case study? Can you describe the collaborativeprocess between partners? 4. Do you think that the virtualenterprise set up by DEC is consistent with acustomerfocused strategy? Why? 5. What are theinter-enterprise flows in DEC and the flows between theparticipants? OPEN DISCUSSION 1. What IT tools can supportcollaboration in a virtual enterprise? 2. What kind ofconcept do you think is more fit to be used in therelationships between the participants of the project inthis case study? The virtual network or the virtualenterprise? What is the difference between these twoconcepts? 95D o n g f a n g E l e c t r i c C o r p o r at i o n C a s e S t u d y

Meade, L., Liles, D. and Sarkis, J. (1997). Justifyingstrategic alliances and partnering: a prerequisite forvirtual enterprising. Omega, 25(1), 29–42.

Pakistan National Shipping Corporation (2009). Retrieved 21November 2009, http://www.pnsc. com.pk.

Porter, M.E. (1980). Competitive Strategy: Techniques forAnalyzing Industries and Competitors. New York: FreePress.

Smith, K.G., Carrol, S.J. and Ashford, S.J. (1995). Intra-and interorganizational cooperation: toward a researchagenda. Academy of Management Journal, 38(1), 7–23.

The Export Import Bank of China (2009). Retrieved 21November 2009, http://www.eximbank.gov. cn.

Thorelli, H.B. (1986). Networks, between hierarchies andmarkets. Strategic Management Journal, 7(1), 37–51. Thispage has been left blank intentionally

5 Chapter 5 Keraben Case Study: Serviceand Product Development

Alarcón, F., Alemany, M. M. E. Alemany, Ortiz. A (2009).Conceptual framework for the characterization of the orderpromising process in a collaborative selling networkcontext. International Journal of Production Economics,120(1), 100–114

Alarcón, F., Alemany, M.M. and Esteban, J. (2008). Acollaborative planning process modelling methodology. Anapplication to a real case. In Second InternationalConference on Industrial Engineering and IndustrialManagement, XII Congreso de Ingeniería de Organización,Burgos.

Alemany, M.M., Alarcón, F., Ortiz, A. and Lario, F.C.(2005). Order promising process for extended collaborativeselling chain (ECOSELL). In International Conference onIndustrial Engineering and Systems Management, IESM,Marrakech (Marruecos).

Alemany, M.M., Ortiz, A., Alarcón, F., Lario, F.C. andBengochea, M.A. (2007). El proceso de comprometer pedidosde un paquete de productos integrado por productos delsector cerámico y productos complementarios: Parte IDescripción y caracterización de la problemática. Boletínde la Sociedad Española de Cerámica y Vidrio, 46(1),21–28.

Alemany, M.M., Alarcón, F., Ortiz, A. and Lario, F.C.(2008). Order promising process for extended collaborativeselling chain (ECOSELL). Production Planning & Control,Recent Issues in the Management of Enterprises and SupplyChains, 19(2), 105–131.

Camarinha-Matos, L. and Afsarmanesh, H. (2005).Collaborative networks: a new scientific discipline.Journal of Intelligent Manufacturing, 16(4–5), 439–452.LESSON LEARNED Collaboration for successful design Thiscase study shows how a company can grab new marketopportunities, thus better fulfilling customers’ needs, ifit develops a collaborative network with other companies inorder to design innovative products/services. QUESTIONS FORSTUDENTS 1. Which are the requirements for the creation ofa collaborative network? 2. How can the creation of acollaborative network affect the time to market? 3. Do youthink customers are capable of quantifying the benefitsinvolved in purchasing a PS-P from a single sales point?4. Identify the activities in Figure 5.8 that correspond

to each of the stages in the life cycle management ofFigure 5.7. OPEN DISCUSSION 1. Which tools would be able tosupport design collaboration? 2. Which incentives would beable to foster collaboration? 115K e r a b e n C a s e St u d y

Camarinha-Matos, L., Afsarmanesh, H. and Ortiz, A. (2005).Collaborative Networks and their Breeding Environments.New York: Springer.

Lamming, R., Johnsen, T., Zheng, J.R. and Harland, C.(2000). An initial classification of supply networks.International Journal of Operations & ProductionManagement, 20(5–6), 675–691.

Nassimbeni, G. (2004). Supply chains: a networkperspective. In New, S.J. and Westbrook, R. (Eds)Understanding Supply Chains: Concepts, Critiques andFutures Understanding, Oxford: University Press, pp.43–65.

Porter, M.E. (Ed.) (1986). Competition in GlobalIndustries. Cambridge, MA: Harvard Business School Press.

Porter, M. and Fuller, M.B. (1986). Coalitions and globalstrategy. In Porter, M.E. (Ed.), Competition in GlobalIndustries. Cambridge, MA: Harvard Business School Press,pp. 315–344.

Snow, C.S., Miles, R.E. and Coleman, H.J. (1992). Managing21st century network organizations. OrganizationalDynamics, 20, 5–20.

Winer, M.B. and Ray, K.L. (1994). Collaboration Handbook:Creating, Sustaining, and Enjoying the Journey. SaintPaul, MN: Fieldstone Alliance.

Williamson, O.E. (1985). The Economic Institutions ofCapitalism: Firms, Markets, Relational Contracting. NewYork. Free Press. This page has been left blankintentionally

6 Chapter 6 Huawei Case Study:Country-specific Factors Affecting NewProduct Development

Barton, D. L. (1992). Core capabilities and corerigidities: a paradox in managing new product development.Strategic Management Journal, 13(Special Issue), 111–126.

Buzzell, R. D. and Gale, B. T. (1987). The PIMS Principles:Linking Strategy to Performance. New York: Free Press.

Cooper, G. R. (1994). New products: the factors that drivesuccess. International Marketing Review, 11(1), 60–77.

Cooper, G. R. and Kleinschmidt, J. E. (2007). Winingbusiness in product development: the critical successfactors. Research Technology Management, 50(3), 52–67.QUESTIONS FOR STUDENTS 1. Which internal and externalfactors affect the development of innovation capability inHuawei? 2. How does Huawei develop in-house R&D? 3. Whatis the relationship between the market demand andtechnology factors? How well do they fit together? OPENQUESTIONS 1. How could new product development change inthe future? 2. Apply the four steps of Huawei’s new productdevelopment process to another sector. 131H u a w e i C as e S t u d y

Cooper, R. G. and Kleinschmidt, E. J. (1987). New products:what separates winners from losers? Journal of ProductInnovation Management, 4(3), 169–184.

Deeds, L. D., Decarolis, D. and Coombs, J. (2000). Dynamiccapabilities and new product development in hightechnology ventures: an empirical analysis of newbiotechnology firms. Journal of Business Venturing, 15(3),211–229.

Dess, G. G., Ireland, R. D., Shaker, A. Z., Floyd, S. W.,Janney, J. J. and Lane, P. J. (2003). Emerging issues incorporate entrepreneurship. Journal of Management, 29(3),351–378.

Fan, P. (2006). Catching up through developing innovationcapability: evidence from China’s telecom-equipmentindustry. Technovation, 26(3), 359–368.

Huawei (2009). Surfing into the future. Retrieved 15November 2009, from www.huawei.com.

IDATE (2002). Telecom-Internet-Media: Europe Moving on …

24th International Conference of IDATE. Montpellier,France, 21–22 November.

Kropp, F. and Zolin, R. (2005). Technologicalentrepreneurship: the role small business innovationresearch (SBIR) programs play in developing andcommercializing technologies. In International Conferenceon Small Business, 50th World Conference in Washington,USA.

Li, H. and Atuahene-Gima, K. (2001). Product innovationstrategy and the performance of new technology ventures inChina. Academy of Management Journal, 44(6), 1123–1134.

Li, P. S. (1993). Chinese investment and business inCanada: ethnic entrepreneurship reconsidered. PacificAffairs, 66(2), 219–243.

Low, B. (2007). Huawei Technologies Corporation: from localdominance to global challenge? The Journal of Business &Industrial Marketing, 22(2), 138–144.

Lumpkin, G. T. and Dess, G. G. (1996). Clarifying theentrepreneurial orientation construct and linking it toperformance. The Academy of Management Review, 21(1),135–172.

Markoff, J. and Barboza, D. China telecom giant makes boldpush for the U.S. market. New York Times, 26 October.

People’s Posts and Telecommunications (2002). Ren Min YouDian (Chinese Newspaper), 31 October.

Schumpeter, J. A. (Ed.) (1954). History of EconomicAnalysis. New York: Oxford University Press.

Schumpeter, J. A. (1976). Capitalism, Socialism andDemocracy. New York: Harper Torchbooks.

Utterback, J. and Abernathy, W. J. (1976). The dynamicmodel of product and process innovation. OMEGA: TheInternational Journal of Management Science, 3(6), 639–656.

Xiao, W. (2002). Enterprise leaders that influence China’seconomy. Shenyang: Shenyang Press Ltd. (in Chinese).

Xin, K. R. and Pearce, J. L. (1996). Guanxi: connectionsand substitutes for formal institutional support. Academyof Management Journal, 39(6), 1641–1658.

Zahra, S. A. (1999). The changing rules of globalcompetitiveness in the 21st century. Academy of ManagementExecutive, 13(1), 36–42.

Zirger, B. and Modesto, A. M. (1990). A model of newproduct development: an empirical test. ManagementScience, 36(7), 867–883. This page has been left blankintentionally

7 Chapter 7 LIMA Case Study: FactorsAffecting Research and the Development ofNew Products

Brockhoff, K. and von Boehmer, A. (1993). Global R&Dactivities of German industrial firms. Journal ofScientific and Industrial Research, 52(6), 399–406.

Cantwell, J. and Santangelo, G.D. (1999). The frontier ofinternational technology networks: sourcing abroad themost highly tacit capabilities. Information Economics andPolicy, 11(1), 101– 123.

Chiesa, V. (1995). Globalizing R&D around centres ofexcellence. Long Range Planning, 28(6), 19–28.

De Meyer, A. (1993). Internationalizing R&D improves afirm’s technical learning. Research Technology Management,42(4), 42–49.

De Meyer, A. and Mizushima, A. (1989). Global R&Dmanagement. R&D Management, 19(2), 135– 146. 145L I M A Ca s e S t u d y

Gassmann, O. and von Zedtwitz, M. (1999). New concepts andtrends in international R&D organization. Research Policy,28(2), 231–250.

Hakanson, L. and Nobel, R. (1993). Foreign research anddevelopment in Swedish multinationals. Research Policy,22(5), 373–396.

Hakanson, L. and Zander, U. (1988). Internationalmanagement of R&D: the Swedish experience. R&D Management,18(3), 217–226.

Patel, P. and Pavitt, K. (1991). Large firms in theproduction of the world’s technology: an important case ofnon-globalisation. Journal of International BusinessStudies, 22(1), 1–21.

Taggart, J.H. (1991). Determinants of foreign R&Dlocational decision in the pharmaceutical industry. R&DManagement, 21(3), 229–240.

Von Zedtwitz, M. and Gassmann, O. (2002). Market versustechnology drive in R&D internationalization: fourdifferent patterns of managing research and development.Research Policy, 31(4), 569–588. This page has been leftblank intentionally

8 Chapter 8 Monalisa Case Study:Energy-saving Needs in New ProductDevelopment

Berenson, C., Iansiti, M., Kosnik, T.J., Rangan, V.K.,Thomke, S., Lynn, G.S., Mohr-Jackson, I., Tabrizi, B.,Walleigh, R., Wheelwright, S.C. and MacCormack, A. (2002).New Product Development, Business Fundamentals Series, 2ndEdn. Boston, MA: Harvard Business Publishing.

Bras, B. (1997). Incorporating environmental issues inproduct design and realization. Industry and Environment,20(1–2), 5–13.

Chen, Q. (2007). EU’s EuP directive and trends in China’sdevelopment of green manufacturing technology. LightIndustry Machinery, 4,1–5.

Chiesa, V. and Manzini, R. (1998). Organizing fortechnological collaborations: a managerial perspective.R&D Management, 28(1), 199–212.

Cooper, R.G. (1994). Perspective: third-generation newproduct processes. Journal of Product InnovationManagement, 11(1), 3–14.

Cooper, R.G. (1998). The new product process: a decisionguide for managers. Journal of Marketing Management, 3(3),238–255.

Cooper, R.G. (1999). The invisible success factors inproduct innovation. Journal of Product InnovationManagement, 16(2), 115–133.

Cooper, R.G. (2001). Winning at New Products: Acceleratingthe Process from Idea to Launch, 3rd Edn. New York:Perseus Publishing. LESSON LEARNED Cost savings with greenstrategy Implementing green strategy standards can not onlyincrease the product value (connecting the brand to theidea of ecology) but also reduce product and process costs(redesigning the product). QUESTIONS FOR STUDENTS 1. Whichfactors contributed to the success of NPD in Monalisa? 2.What are the possible organizational structures of an NPDfunction? Which of them does Monalisa utilize? 3. Whichare the reasons behind the development of PP? Why didMonalisa choose PP as the development goal? 4. How wasthe funnel model of the NPD process applied in PP’sdevelopment? 5. What benefits can a company obtain from newgreen products development? OPEN DISCUSSION 1. Set up a NPDstrategy for Monalisa providing explanations for your

choices. 2. After two years, the technology agreement ofKeda and Monalisa will have expired. This means Keda cansell the special equipment to other ceramic manufacturers,who will soon be able to produce similar products. Howshould Monalisa handle the situation? 163M o n a l i s a Ca s e S t u d y

Cooper, R.G. and Kleinschmidt, E.J. (1995). Benchmarkingthe firm’s critical success factors in new productsuccess. Journal of Product Innovation Management, 12,374–391.

Faming, Y., Qingrui, X. and Yan, L. (1997). Research onfunctional sources of green technology innovation. ScienceResearch Management, 18(3), 56–61.

Griffin, A. (1997). PDMA research on new productdevelopment practices: updating trends and benchmarkingpractices. Journal of Product Innovation Management, 14,429–458.

Harryson, S. (1998). Japanese Technology and InnovationManagement: From Know-how to Know-who. Cheltenham: EdwardElgar Publishing Limited.

Kusz, J. (1991). Integrating environmental goals and theproduct development process. In Proceedings of The DesignActions and Resources for the Environment Conference,Boston, MA, 8–11 December.

Teece, A. (2003). Expert talent and the design of(professional services) firms. Industrial and CorporateChange, 12(4), 895–916.

Teece, D.J. (1997). Dynamic capabilities and strategicmanagement. Journal of Strategic Management, 18(7),509–534.

Ulrich, K.T. and Eppinger, S.D. (2003). Product Design andDevelopment. New York: McGrawHill/Irwin series inmarketing.

UNCED (1993). United Nations Conference on Environment andDevelopment, http://www/ un.org/esa/dsd/agenda21.

Veryzer, R.W. (1998). Discontinuous innovation and the newproduct development process. Journal of Product InnovationManagement, 15(4), 304–321. This page has been left blankintentionally

9 Chapter 9 Flextronics Case Study:International Sourcing: OrganizationalDilemmas

Arnold, U. (1999). Organization of global sourcing: waystowards an optimal degree of centralization. EuropeanJournal of Purchasing & Supply Management, 5(3–4), 167–174.

Chadwick, T. and Rajagopal, S. (1995). Strategic SupplyManagement: An Implementation Toolkit. Oxford:Butterworth-Heinemann. LESSON LEARNED The difficulties inselecting the right sourcing mode This case study showsrelevant variables affecting sourcing choices. It alsohighlights the importance of a structured supplierselection and the management of culture conflicts.QUESTIONS FOR STUDENTS 1. What are the determining factorsthat led Flextronics to choose the site in Zhuhai? 2. Whatare the advantages of centralized and decentralizedorganizational structures in the international sourcingprocess? 3. Why did Flextronics Zhuhai decide to betterleverage national sourcing? 4. What problems didFlextronics Zhuhai meet in national sourcing? OPENDISCUSSION 1. Should Flextronics Zhuhai’s mobile phonedepartment adopt the centralized or decentralizedstructure when sourcing general components in the nextstage? 2. In the national sourcing process, there aredifficulties between Flextronics Zhuhai and localsuppliers. List and discuss some of these problems.

178 I n t e r n a t i o n a l O p e r a t i o n s M a n ag e m e n t

Davis, H. L., Eppen, G. D. and Mattson, L. (1974). Criticalfactors in world wide purchasing. Harvard Business Review,November–December, 81–90.

Giunipero, L. C. and Monczka, R. M. (1997). Organizationalapproaches to managing international sourcing.International Journal of Physical Distribution & LogisticsManagement, 27(5–6), 321–332.

Nassimbeni, G. and Sartor, M. (2006). Sourcing in China –Strategies, Methods and Experiences. New York: PalgraveMacmillan.

Luo, Y. (1997). Guanxi and performance of foreign-investedenterprises in China: an empirical inquiry. ManagementInternational Review, 16(1), 51–70.

Yeung, L. and Tung, R. (1996). Achieving business success

in Confucian societies: the importance of guanxi(connections). Organizational Dynamics, 25(2), 54–65.

10 Chapter 10 GREE Case Study: China GoesAbroad Too

Anderson, E. and Gatignon, H. (1986). Modes of foreignentry: a transaction cost analysis and proposition.Journal of International Business Studies, 17(3), 1–26.

Boddewyn, J. and Brewer, T. (1994). International businesspolitical behaviour: new theoretical direction. Academy ofManagement Review, 19(2), 119–143.

Bowersox, D.J. (1978). Logistical Management, 2nd Edn. NewYork: Macmillan.

Brouthers, K.D. (2002). Institutional culture andtransaction cost influences on entry mode choice andperformance. Journal of International Business Studies,33(2), 203–221.

Buckley, P.J. and Casson, M. (1981). The optimal timing ofa foreign direct investment. The Economic Journal,91(361), 75–87.

Buckley, P.J., Newbould, G.D. and Thurwell, J.C. (1988).Foreign Direct Investment by Smaller UK Firms. London:Macmillan.

Cavusgil, T. (1984). Differences among exporting firmsbased on the degree of internationalisation. Journal ofBusiness Science Research, 12(3), 195–208. LESSON LEARNED AChinese perspective on internationalization: be close tothe customer This case study describes the factorsaffecting Chinese manufacturing firms’ choices concerninginternational market entry mode and the overseas facilitylocation. A key success factor is to be close to thecustomer. QUESTIONS FOR STUDENTS 1. What factors should betaken into account when locating a company in a foreignmarket? 2. How did Gree Brazil deal with its operationalchallenges? OPEN DISCUSSION 1. How would you deal with themanagement puzzles Gree Brazil faced? 2. To serve thePakistan market, which type of entry modes should Greechoose: licensing manufacturing or the creation of a localproduction facility? 193G R E E C a s e S t u d y

Dunning, J.H. (2000). The eclectic paradigm as an envelopefor economic and business theories of MNE activity.International Business Review, 9(2), 163–190.

Dunning, J.H. (1998). Location and the multinationalenterprise: a neglected factor? Journal of International

Business Studies, 29(1), 45–66.

Dunning, J.H. (1995). Reappraising the eclectic paradigm inan age of alliance capitalism. Journal of InternationalBusiness Studies, 26 (3), 461–491.

Dunning, J.H. (1993). Multinational Enterprises and theGlobal Economy. New York: Addison-Wesley.

Dunning, J.H. (1977). Trade, location of economic activityand the MNE: a search for an eclectic approach. In O.Bertil et al. (Eds), The International Allocation ofEconomic Activity, Proceedings of Noble Symposium held inStockholm. London: Macmillan.

Eden, L. (1994). Location strategies of U.S.multinationals. In Eden, Lorraine (Ed.), Multinationals inNorth America, Calgary: The University of Calgary Press,pp. 193–252.

Erramilli, M.K. and Rao, C.P. (1990). Choice of foreignmarket entry modes by service firms: role of marketknowledge. Management International Review, 30(2), 135–150.

Haigh, R.W. (1989). Investment Strategies and the PlantLocation Decision: Foreign Companies in the United States.New York: Praeger.

Herzog, H.W. Jr and Schlottmann, A.M. (1991). Metropolitandimensions of high technology location in the U.S. InHerzog, H.W. Jr and Schlottmann, A.M. (Eds), IndustryLocation and Public Policy, Knoxville: The University ofTennessee Press, pp. 169–189.

Hill, C.W.L., Hwang, P. and Kim, W.C. (1990). An eclectictheory of the choice of international entry mode.Strategic Management Journal, 11(2), 117–128.

Hill, C.W.L. and Kim, W.C. (1988). Searching for a dynamictheory of the multinational enterprise: a

transaction cost model. Strategic Management Journal,9(Special Issue), 93–194.

Johanson, J. and Vahlne, J.E. (1990). The mechanism ofinternationalization. International Marketing Review,7(4), 11–24.

Johanson, J. and Wiedersheim, P.F. (1975). Theinternationalization of the firm – four Swedish cases.

Journal of Management Studies, 12(3), 305–322.

Kim, C.W. and Hwang, P. (1992). Global strategy andmultinationals’ entry mode choice. Journal ofInternational Business Studies, 3(1), 29–53.

MacCarthy, B.L. and Atthirawong, W. (2003). Factorsaffecting location decisions in international operations –a Delphi study. International Journal of Operations &Production Management, 23(7), 794–818.

Pan, Y. and Tse, D.K. (2000). The hierarchical model ofmarket entry modes. Journal of International BusinessStudies, 31(4), 535–554.

Peng, M.W. and Wang, D.Y. (2000). Foreign direct investmentin the innovation driven stage: toward a learning optionperspective. Management International Review, 40(SpecialIssue), 79–93.

Rasheed, H.S. (2005). Foreign entry mode and performance:the moderating effects of environment. Journal of SmallBusiness Management, 43(1), 41–54.

Root, F.R. (1987). Entry Strategies for InternationalMarkets. Lexington, MA: D.C. Health.

Terpstra, V. and Yu, C. (1988). Determinants of foreigninvestment of US advertising agencies. Journal ofInternational Business Studies, 19(1), 33–46.

UNCTAD (United Nations Conference on Trade and Development)(1998). World Investment Report 1998. New York: UnitedNations.

Vernon, R. (1994). Multinationals and governments: keyactors in the NAFTA. In Eden, Lorraine (Ed.),Multinationals in North America, Calgary: The University ofCalgary Press, pp. 25–52.

Westney, D.E. (1994). Japanese multinationals in NorthAmerica. In Eden, Lorraine (Ed.), Multinationals in NorthAmerica, Calgary: The University of Calgary Press, pp.253–276. This page has been left blank intentionally

11 Chapter 11 Danieli Case Study:Examples of Countertrade Agreements inChina

Al-Suwaidi, A. (1993). Countertrade and the Arab world: acomparative view. Arab Law Quarterly, 8(4), 273–287.

China’s Ministry of Foreign Trade and Economic Cooperation(2009). http://english/mofcom.gov. cn.

Erridge, A. and Zhabykenov, D. (1998). The role ofpurchasing in countertrade. European Journal of Purchasingand Supply Management, 4(2), 97–107.

Forker, L.B. (1996). Countertrade’s impact on the supplyfunction. International Journal of Purchasing andMaterials Management, 32(4), 37–45.

Hennart, J.F. (1989). The transaction–cost rationale forcountertrade. Journal of Law, Economics & Organization,5(1), 127–153.

Hennart, J.F. (1990) Some empirical dimension ofcountertrade. Journal of International Business Studies,(2), 243–227.

206 I n t e r n a t i o n a l O p e r a t i o n s M a n ag e m e n t

Hennart, J.F. and Anderson, E. (1993). Countertrade and theminimization of transaction costs: an empiricalexamination. Journal of Law, Economics & Organization,9(2), 290–313.

Lecraw, D.J. (1989). The management of countertrade: factorinfluencing success. Journal of International BusinessStudies, 20(1), 41–59.

Liesch, P.W. and Palia, A.P. (1997). Survey of countertradepractices in Australia. Industrial Marketing Management,26(4), 301–313.

Liesch, P.W. and Palia, A.P. (1999). Australian perceptionand experiences of international countertrade with someinternational comparison. European Journal of Marketing,33(5/6), 488– 512.

Marin, D. and Schnitzer, M. (2002). The economicinstitution of international barter. The Economic Journal,112(479), 293–316.

Mirus, R. and Yeung, B. (1993). Why countertrade? Aneconomic perspective. International Trade Journal, 7(4),409–433.

Qiu, L.D. and Tao, Z. (2001). Export, foreign directinvestment and local content requirement. European Journalof Development Economics, 661, 101–125.

United States Department of Commerce. (1978). East–WestCountertrade Practices. Washington, DC: US GovernmentPrinting Office.

United States Department of Commerce. (2007). East–WestCountertrade Practices. Washington, DC: US GovernmentPrinting Office.

12 Chapter 12 Illycaffè Case Study:Sustaining Quality from Green Coffee tothe Cup: Logistics as a CompetitiveWeapon

Anderson, J.C., Rungtusanatham, M. and Schroeder R.G.(1994). A theory of quality management underlying theDeming management method. Academy of Management Review,19(3), 472–509.

Anderson, M.G. and Katz, P.B. (1998). Strategic sourcing.International Journal of Logistics Management, 9(1), 1–13.

Anderson, R.D., Jerman, R.E. and Crum, M.R. (1998). Qualitymanagement influences on logistics performance.Transportation Research E: Logistics and TransportationReview, 34(2), 137–148.

Andriani, P. and De Toni, A.F. (2008). Scientist andentrepreneur: a chat with Ernesto Illy on coffee,complexity and Prigogine. Emergence: Complexity andOrganization, 10(1), 84–88.

Beamon, B.M. and Ware, T.M. (1998). A process quality modelfor the analysis, improvement and control of supply chainsystems. Logistics Information Management, 11(2), 105–113.

Bessant, J. and Buckingham, J. (1993). Organisationallearning for effective use of CAPM. British Journal ofManagement, 4(4), 219–234.

Bessant, J. and Francis, D. (1999). Using learning networksto help improve manufacturing competitiveness.Technovation, 19(6–7), 373–381.

Bessant, J., Kaplinsky, R. and Lamming, R. (2003). Puttingsupply chain learning into practice. International Journalof Operations and Production Management, 23(2), 167–184.

Bowersox, D.J., Closs, D.J. and Stank, T.P. (2000). Tenmega trends that will revolutionize supply chainlogistics. Journal of Business Logistics, 21(2), 1–15.

Choi, T.Y. and Eboch, K. (1998). The TQM paradox: relationsamong TQM practices, plant performance, and customersatisfaction. Journal of Operations Management, 17(1),59–75.

Choi, T.Y. and Rungtusanatham, M. (1999). Comparisons ofquality management practices: across the supply chain and

industries. The Journal of Supply Chain Management, 35(1),20–27.

Christopher, M. (1992). Logistics and Supply ChainManagement. London: Pitman Publishing.

Cooper, M.C., Lambert, D.M. and Pagh, J.D. (1997). Supplychain management: more than a new name for logistics. TheInternational Journal of Logistics Management, 8(1), 1–13.

Croom, S., Romano, P. and Giannakis, M. (2000). SCM: ananalytic framework for critical literature review.European Journal of Purchasing and Supply Management, 6(1),67–83.

Curkovic, S., Vickery, S. and Droge, C. (2000).Quality-related elements: their impact on qualityperformance and firm performance. Decision Sciences, 31(4),885–905.

Davis, T. (1993). Effective supply chain management. SloanManagement Review, 34(4), 35–46.

De Maio, A. and Maggiore, E. (1992). Organizzare perinnovare: rapporti evoluti clienti-fornitori. Milano:Etaslibri.

De Toni, A.F. and Tracogna, A. (2005). L’industria delcaffè (The coffee industry). Milan: Il Sole 24 Ore.

Dean, J.W. and Bowen, D.E. (1994). Management theory andtotal quality: improving research and practice throughtheory development. Academy of Management Review, 19(3),392–418.

Dickson, G.W. (1966). An analysis of vendor selectionsystems and decisions. Journal of Purchasing, 2(1), 5–17.

Evans, G.N., Naim, M.M. and Towill, D.R. (1993). Dynamicsupply chain performance: assessing the impact ofinformation systems. Logistic Information Management, 6(4),15–25.

Forza, C., Romano, P. and Vinelli, A. (2000). Informationtechnology for managing the textile apparel chain: currentuse, shortcomings and development directions. InternationalJournal of Logistics: Research and Applications, 3(3),227–243.

Frohlich, M.T. and Westbrook, R. (2001). Arcs of

integration: an international study of supply chainstrategies. Journal of Operations Management, 19(2),185–200.

228 I n t e r n a t i o n a l O p e r a t i o n s M a n ag e m e n t

Fynes, B. and Voss, C. (2002). The moderating effect ofbuyer–supplier relationships on quality practices andperformance. International Journal of Operations andProduction Management, 22(6), 589–613.

Ghoshal, S. and Bartlett, C. (1995). Changing the role oftop management: beyond structure to processes. HarvardBusiness Review, January–February, 75–87.

Hayes, R.H. and Wheelwright, S.C. (1984). Restoring ourCompetitive Advantage. New York: John Wiley and Sons.

Hines, P., Rich, N., Bicheno, J. and Brunt, D. (1998).Value stream management. International Journal ofLogistics Management, 9(1), 25–42.

Johnson, J.C. and Wood, D.F. (1996). ContemporaryLogistics. Upple Saddle Creek, NJ: Prentice-Hall.

Kanter, R.M. (1994). Collaborative advantage: the art ofalliances. Harvard Business Review, July– August, 96–108.

Kaplinsky, R., Bessant, J. and Lamming, R. (1999). UsingSupply Chains to Diffuse ‘Best Practice’. Brighton: Centrefor Research in Innovation Management.

Kaplinsky, R. and Fitter, R. (2004). Technology andglobalisation: who gains when commodities arede-commodified? International Journal of Technology andGlobalization, 1(1), 1–28.

Kaplinsky, R. and Morris, M. (2001). A Handbook for ValueChain Research. Available at www.ids.ac/ global.

Kotabe, M. and Murray, J. (2004). Global sourcing strategyand sustainable competitive advantage. IndustrialMarketing Management, 33, 7–14.

Krause, D.R., Handfield, R.B. and Tyler, B.B. (2007). Therelationships between supplier development, commitment,social capital accumulation and performance improvement.Journal of Operations Management, 25(2), 528–545.

Lambert, D., Cooper, M.C. and Pagh, J.D. (1998a). Supplychain management: implementation issues and researchopportunities. International Journal of LogisticsManagement, 8(1), 1–19.

Lambert, D., Stock, J. and Ellram, L. (1998b). Fundamentalsof Logistics Management. Boston, MA: McGraw-HillInternational Editions.

Lambert, D.M. and Cooper, M.C. (2000). Issues in supplychain management. Industrial Marketing Management, 29(1),65–83.

Lee, H.L. and Ng, S.M. (1997). Introduction to the specialissue on global supply chain management. Production andOperations Management, 6(3), 191–192.

Lee, H.L., Padmanabhan, V. and Whang, S. (1997).Information distortion in a supply chain: the bullwhipeffect. Management Science, 43(4), 546–558.

Losch, B. (1999). Le complexe café-cacao de la Côted’Ivoire. Unpublished These de Doctorat, UniversitéMontpellier I, France.

Lucier, R.L. (1988). The International Political Economy ofCoffee: From Juan Valdez to Yank’s Diner. New York:Praeger.

Lummus, R.R., Vokurka, R.J. and Alber, K.L. (1998).Strategic supply chain planning. Production and InventoryManagement Journal, 39(3), 49–58.

Metters, R. (1997). Quantifying the bullwhip effect insupply chains. Journal of Operations Management, 15(3),89–100.

Millen, R., Sohal, A. and Moss, S. (1999). Qualitymanagement in the logistics function: an empirical study.International Journal of Quality and ReliabilityManagement, 16(2), 166–180.

Muradian, R. and Pelupessy, W. (2005). Governing the coffeechain: the role of voluntary regulatory systems. WorldDevelopment, 33(12), 2029–2044.

Narasimhan, R. and Jayaram, J. (1998). Causal linkages insupply chain management: an exploratory study of NorthAmerican manufacturing firms. Decision Sciences, 29(3),579–605. 229I l l y c a f f è C a s e S t u d y

Ponte, S. (2002). The ‘latte revolution’? Regulation,markets and consumption in the global coffee chain. WordDevelopment, 30(7), 1099–1122.

Romano, P. and Danese P. (2006). Supply Chain Management.Maidenhead: McGraw Hill (in Italian).

Romano, P. and Vinelli, A. (2001). Quality management in asupply chain perspective. International Journal ofOperations and Production Management, 21(4), 446–460.

Salvador, F., Forza, C., Rungtusanatham, M. and Choi, T.Y.(2001). Supply chain interactions and time-relatedperformances. International Journal of Operations andProduction Management, 21(4), 461–475.

Sánchez-Rodríguez, C., Hemsworth, D. and Martínez-Lorente,A. (2004). Quality management practices in purchasing andits effect on purchasing’s operational performance andinternal customer satisfaction. International Journal ofLogistics research and Applications, 7(4), 325–344.

Scott, C. and Westbrook, R. (1991). New strategic tools forsupply chain management. International Journal of PhysicalDistribution and Logistics Management, 21(1), 23–33.

Stevens, J. (1989). Integrating the supply chain.International Journal of Physical Distribution andMaterials Management, 19(8), 3–8.

Talbot, J.M. (1997). Where does your coffee dollar go? Thedivision of income and surplus along the coffee commoditychain. Studies in Comparative International Development,32(1), 56–91.

Tan, K.C., Kannan, V.R. and Handfield, R.B. (1998). Supplychain management: supplier performance and firmperformance. International Journal of Purchasing andMaterials Management, 34(3), 2–9.

Tan, K.C., Kannan, V.R., Handfield, R.B. and Ghosh, S.(1999). Supply chain management: an empirical study of itsimpact on performance. International Journal of Operationsand Production Management, 19(10), 1034–1052.

Tracey, M. (1998). The importance of logistics efficiencyto customer service and firm performance. InternationalJournal of Logistics Management, 9(2), 65–80.

Williamson, O.E. 1975. Markets and Hierarchies: Analysisand Antitrust Implications. New York: Free Press.

Williamson, O.E. 1985. The Economic Institutions ofCapitalism. New York: Free Press. This page has been leftblank intentionally

13 Chapter 13 DCHS Case Study:Third-party Logistics – Advanced Servicesto gain a Competitive Advantage

Bagchi, P.K and Virum, H. (1998). Logistical alliances:trends and prospects in integrated Europe. Journal ofBusiness Logistics, 19(1), 191–213.

Coyle, J.J., Bradi, E.J. and Langley, C.J. (1996). TheManagement of Business Logistics, 6th edn. Eagan, USA:West Publishing Company.

Du, Wen (2004). Third Party Logistics. Beijing: ChinaMachine Press.

Hertz, S. and Alfredsson, M. (2003). Strategic developmentof third-party logistics’ providers. Industrial MarketingManagement, 32(2), 139–149.

Jiahao, L. (2005). The Research of Chinese Third PartyLogistics’ Developing Mode from the View of CustomerDemand. Working Paper, Fuzhou University, Fuzhou, China.

Jiang, ChangBing (2006). Modern Logistics Introduction.Beijing: China Material Press.

Lieb, R. and Kendrick, S. (2002). The use of 3PL servicesby large American manufacturers, the 2002 survey. SupplyChain Forum: An International Journal, 3(2), 2–10.

Lin, JingYu (2006). International Logistics Practice.Beijing: China Commerce and Trade Press.

Ma, YongGuang (2003). Studying on the StrategicRelationship between Third Party Logistic Companies andCustomers. Working Paper, Huazhong University of Scienceand Technology.

Murphy, P.R. and Poist, R.F. (2000). Third-party logistics:some user versus provider perspectives. Journal ofBusiness Logistics, 21(1), 121–133.

Simchi-Levi, D., Kaminsky, P. and Simchi-Levi, E. (2000).Designing and Managing the Supply Chain: Concepts,Strategies and Case Studies. New York: McGraw-HillPublications.

Song, Yang (2006). Model and Operation of the Third PartyLogistics. Beijing: China Material Press.

Virum, H. (1993). Third party logistics development inEurope. Logistics and Transportation Review, 29(4),355–361.

Zhou, ChangLin (2005). Third Party Logistics Organization.Beijing: China Economy & Management Press.

14 Chapter 14 Mazo Group Case Study:Effects of Changing Regulations and Costson Networks and Transportation Modes

Anaya, J.J. (2007) Logística integral. La gestión operativade la empresa [Integral Logistic. The Operative Managementof the Enterprise], 3rd edn. Madrid: ESIC Editorial.

Arnold, P., Peeters, D. and Thomas, I. (2004). Modelling arail/road intermodal transportation system. TransportationResearch Part E: Logistics and Transportation Review,40(3), 255–270.

Barreiro, P. and Robla, J.I. (2007). Transporte frigoríficointernacional de fruta. Intermodalidad y sistemas detransporte inteligente [International fruit refrigeratedtransport. Intermodality and intelligent transportsystems]. Fruticultura profesional, 144(3), 53–57.

BBC (2007). Sarkozy details green France plan. Retrieved 25October 2007 from BBC news: http://news.bbc.co.uk/2/hi/europe/7062577.stm.

Bjørner, T.B. (1999). Environmental benefits from betterfreight transport management: freight traffic in a VARmodel. Transportation Research Part D: Transport andEnvironment, 4(1), 45–64.

Bowersox, D.J., Closs, D.J. and Cooper, M.B. (2007).Administración y logística en la cadena de suministros[Supply Chain Logistic and Management], 2nd edn. México:McGraw Hill Interamericana.

Campisi, D., Cohen, B., Gastaldi, M. and Schachter, G.(1994). Transportation choices for sustainabledevelopment. Proceedings of International Symposium onModels of Sustaninable Development, pp. 537–546.

Chapman, L. (2007). Transport and climate change: a review.Journal of Transport Geography, 15(5), 354–367.

DSD (2006). Renewed EU Sustainable Development Strategy10917/06. Brussels: Council of the European Union, 26 June2006.

Eberts, R.W. and Lauver, J. (1998). Policy Options forIntermodal Freight Transportation: Special Report 252. TheNational Academy Press. (n.a.)

EP (2006a) Communication from the Commission to the Council

and the European Parliament - Keep Europe Moving –Sustainable Mobility for our Continent – Mid-term Review ofthe European Commission’s 2001 Transport White Paper {SEC(2006) 768}, COM/2006/0314 final.

EP (2006b) Proposal for a Regulation of the EuropeanParliament and of the Council on Enhancing Supply ChainSecurity (SEC(2006)251), COM/2006/0079 final – COD2006/0025.

Gutierrez, G. and Prida, B. (1998). Lógistica ydistribución física [Logistic and the PhysicalDistribution]. Madrid: McGraw Hill Interamericana deEspaña, S.A.U.

Husdal, J. (2005). The vulnerability of road networks in acost–benefit perspective. The Transportation ResearchBoard Annual Meeting 2005, Washington, DC, 9–13 January2005.

Izquierdo, R. (1994). Transportes. Un enfoque integral[Transports. An Integral Approach]. Madrid: Servicio depublicaciones colegio de ingenieros de caminos, canales ypuertos.

Jahre, M. and Fabbe-Costes, N. (2005). Adaptation andadaptability in logistics networks. International Journalof Logistics, 8(2), 143–157.

Korpela, J. and Touminen, M. (1994). An analytic approachto the analysis and selection of transport services.Engineering Management Conference, 1994, Management inTransition: Engineering a Changing World. Proceedings ofthe 1994 IEEE International, pp. 300–314, October 17–19,Dayton North, OH, USA.

United Nations (1997). The Kyoto Protocol. Retrieved 20November 2008, from United Nations Framework Convention onClimate Change website: http://unfccc.int/kyoto_protocol/items/2830.php.

Meidute, I. and Vasiliauskas, A.V. (2005). Significance oflogistics centres for development of intermodal transportservices in Lithuania. Transport and Telecommunication,7(2), 271–275. 263M a z o G r o u p C a s e S t u d y

Michelin (2010). Via the Michelin Guide. Available onlineat http://www.viamichelin.co.uk/web/ Routes.

Millen, R., Sohal, A. and Moss, S. (1999). Quality

management in the logistics function: an empirical study.International Journal of Quality & Reliability Management,16(2), 166–180.

Montero, L. (2002) Logística e intermodalidad. Barcelona:Logis Book.

MP. (2003). Intermodal Transport: The Marco Polo Programme.1382/2003 of the European Parliament and of the Council of22 July, http://europa.eu/scadplus/leg/en/lvb/ l24159.htm.

Patterson, Z., Ewing, G.O. and Haider, M. (2008). Thepotential for premium-intermodal services to reducefreight CO 2 emissions in the Quebec City–Windsorcorridor. Transportation Transportation Research Part D:Transport and Environment, 13(1), 1–9.

Potter, P. (2007). Exploring approaches towards asustainable transport system. International Journal ofSustainable Transportation, 1(2), 115–131.

Rabinovich, E. and Bailey, J.P. (2004). Physicaldistribution service quality in Internet retailing:service pricing, transaction attributes, and firmattributes. Journal of Operations Management, 21(6),651–672.

Robèrt, M., Hultén, P. and Frostell, B. (2007). Biofuels inthe energy transition beyond peak oil. A macroscopic studyof energy demand in the Stockholm transport system 2030.Energy, 32(11), 2089–2098.

SDS (2006). Renewed EU Sustainable Development Strategy10917/06. Brussels: Council of European Union, Brussels,26 June.

SSS (1999). The Development of Short Sea Shipping inEurope: A Dynamic Alternative in a Sustainable TransportChain Second Two-yearly Progress Report. Brussels: EuropeanCommission COM (1999) 317, 29 June.

Wanke, P.F. and Zinn, W. (2004). Strategic logisticsdecision making. International Journal of PhysicalDistribution and Logistics Management, 34(6), 466–478.

Yanhui, L., Jianyu, T. and Shihua, M. (2006). The logisticscost of two distribution patterns: a case study.Proceedings of 2006 IEEE International Conference onService Operations and Logistics and Informatics.Shanghai, China, 21–23 June 2006, pp. 460–464. This page

has been left blank intentionally