research portfolio harri lorentz, marriott school of management, byu 18 november 2010 1

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  • Research portfolioHarri Lorentz, D.Sc.

    Marriott School of Management, BYU18 November 2010*

  • Presentation outlineResearch portfolio in briefPast: selected publicationsPresent: submitted manuscripts, WIPIn planning, tbd In more detail: Geographic dispersion and supply chain performance Empirical evidence from Finnish manufacturing*

  • Selected publications:Lorentz, H. Ghauri, P.N. (2010) Demand supply network opportunity development processes in emerging markets: positioning for strategy realization in Russia, Industrial Marketing Management, Vol. 39, No. 2, 240-251. Lorentz, H. (2009) Contextual supply chain constraints in emerging markets exploring the implications for foreign firms, Publications of Turku School of Economics, Series A-6, available at: . Lorentz, H. (2008) Collaboration in Finnish-Russian supply chains effects on performance and the role of experience, Baltic Journal of Management, Vol. 3, No. 3, 246-265. Lorentz, H. (2008) Production Locations for the Internationalising Food Industry Case Study from Russia, British Food Journal, Vol. 110, No. 3, 310-334. Lorentz, H. Wong, C.Y. Hilmola, O.-P. (2007) Emerging Distribution Systems in Central and Eastern Europe: Implications from Two Case Studies, International Journal of Physical Distribution & Logistics Management, Vol. 37, No. 8, 670-697.*

  • Submitted manuscripts (autumn 2010)Lorentz, H., Tyli, J., Hlinen, H.-M., Solakivi, T. & Ojala, L., Effects of geographic dispersion on supply chain performance, submitted to Journal of Operations Management. Lorentz, H., Solakivi, T., Tyli, J. & Ojala, L., Supply chain development priorities of manufacturing firms empirical findings from a Finnish national survey, submitted to International Journal of Logistics Research and Applications. Lorentz, H. & Lounela, J., Retailer supply chain capability assessment in Russia, submitted to International Journal of Retail and Distribution Management. Hilmola, O.-P. & Lorentz, H., Warehousing in Northern Europe Longitudinal Survey, submitted to Industrial Management & Data Systems.*

  • Work in Process Lorentz, H., Kittipanya-ngam, P. & Srai, J., Internationalising food supply chains: the impact of emerging market characteristics on supply networks

    Tyli, J., Solakivi, T., Lorentz, H., Ojala, L., Logistics and financial performance*

  • Work in Process / in planningFurther investigation of the SC geographic dispersionperformance relationship: e.g. the increase in explanatory power by incorporating friction into the dispersion measure, and the role of moderating variables:Logistics significancePerformance monitoringInternal integrationExternal integrationInformation systems Determinants of SCM capability priorities: Independents: SC geographic dispersion, firm size, sector, manufacturing strategy, SC echelon, logistics significance, relative performanceDependents: 12 SCM competence areas*

  • A pet projectLorentz, H. & Hilmola, O.-P., Supply chain confidence: conceptualisation and dynamics*

  • Personal development goals in research:*Aim for less articles with the word Russia in the title Aim for emphasis change from descriptive to normative Aim for more research with modelling approach: system dynamics, strategic business/SC modelsdiscrete event simulation

  • Geographic dispersion and supply chain performance Empirical evidence from Finnish manufacturingHarri LorentzJuuso TyliHanne-Mari HlinenTomi SolakiviLauri Ojala

    The authors wish to thank the Finnish Foundation for Economic Education (Liikesivistysrahasto) for significant financial support for this research (grant no. 29991).

  • BACKGROUND: Implications of internationalisation and global footprint on supply chains? *

  • The research question:*How does geographic dispersion of the firms supply chain impact supply chain performance at the firm level?Construct no. 1Construct no. 2

  • Research dataSub sample from the State of Logistics Finland 2009 survey 109 large manufacturing companies operating in Finland (annual turnover over 50 million EUR) Sample covers over 80% of the total turnover of the Finnish manufacturing industry


  • Construct No. 1: SC geographic dispersion* Stock et al. (2000)The geographic dispersion measures range between zero and unity, the former meaning the network is concentrated completely in one region, and the latter implying an evenly spread network in all six regions.

  • How did we measure SC geographic dispersion?*Based on Stock et al. (2000)

  • Construct No. 2: SC performance*Based on e.g. Tyli et al. (2008), Gunasekaran et al. (2001), Stewart (1995)

  • Is there a relationship? Expected effects (hypotheses)*Based on e.g. Maister (1976), Prater et al. (2001), Chopra (2003), Choi & Krause (2006)

  • Method selection* We use generalised linear models (gamma as random component, and log as the link function) to investigate the relationships between independent and dependent variables, supported by Dodd et al. 2006 (except with CCC: normal distribution with identity as the link function)Previous research has also shown the tendency of cost variables to high skewness and to cause complications in standard statistical analysis, such as in the OLS regression analysis (Dodd et al., 2006).

  • Research results*

  • Expected and observed effects of SC geographic dispersion on SC performance*Shaded cells indicate hypotheses that can neither be confirmed nor rejected due to the lack of statistically significant results, white cells indicate results with statistically significant results at minimum 0.1 level, while * implies significance at 0.05 level and ** significance at 0.01 level. Signs + or indicate the direction of the expected and observed relationships (expected/observed).

  • Performance effects of unit increases in geographic dispersion variables*

  • Concluding remarksSigns of the statistically significant relationships are as hypothesised This research provides explicit evidence on the dispersion-performance relationship Of the three geographic dispersion dimensions, purchasing and sales seem to have equally notable effect on firm level supply chain performance Production dispersion is the only independent that may balance detrimental performance effects with an improved level of service performance


  • ImplicationsIn internationalising and global companies, the management of supply chain performance should be high on the agenda, especially in terms of logistics costs and cash-to-cash cycle time. Managers should be acutely aware of the possibly major performance implications of geographically dispersing supply chains, for example in the context of internationalisation of sales, and aim, when feasible, for consolidation in for example the supply base. Such development aims should naturally be balanced with the drive to geographically diversify sourcing as a risk management strategy. In this context, our research sheds light on the possible cost effects of the diversification strategy.


  • Thank you.