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The Impact of Sustainability and Dynamic Capabilities on Global Supply Chain Management

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A special issue of Sustainability (ISSN 2071-1050). This special issue belongs to the section "Sustainable Management".

Deadline for manuscript submissions: closed (31 May 2022) | Viewed by 49516

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Dr. Youngwon Park

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Guest Editor

Faculty of Economics, Graduate School of Humanities and Social Sciences, Saitama University, 255 Shimo-okubo, Sakura-ku, Saitama, 338-8570, Japan Graduate School of Economics, Faculty of Economics, The University of Tokyo, 3-34-3 Hongo, Bunkyo-ku, Tokyo 113-0033, Japan
Interests: international business; supply chain management; digital strategy; sustainable innovation strategy; corporate social responsibility

Dr. Takahiro Fujimoto

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Graduate School of Economics, Faculty of Economics, The University of Tokyo, 3-34-3 Hongo, Bunkyo-ku, Tokyo 113-0033, Japan
Interests: operational management; supply chain management; digital strategy; innovation strategy

Dr. Paul Hong

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Guest Editor

Information Operations and Technology Management, John B. and Lillian E. Neff College of Business and Innovation, The University of Toledo, Toledo, OH 43606, USA
Interests: global supply chain management; disruptive technology trends; industrial system evolution
Special Issues, Collections and Topics in MDPI journals

Special Issue Information

Dear Colleagues,

This Special Issue aims at examining dynamic environmental and technological factors that influence firm longevity and ecosystem sustainability. Complex disastrous factors challenge and disrupt the global supply chains in ways that require immediate and continuous responses from firms (Nishiguchi and Beaudet, 1998; Chang, Iakovou, and Shi, 2020; Chopra and Sodhi, 2014; Zhao et al., 2019; Shi, 2020). Natural disasters—the 2011 Great East Japan Earthquake, hurricanes, and typhoons—also directly affect the supply chain. As production facilities were destroyed due to earthquakes and tsunamis, supply channels and chains were interrupted along with the disruption of established firms’ supply chain networks (Mitroff, 1988; Craighead et al., 2007; Knemeyer et al., 2009; Fujimoto, 2011; Park et al., 2013; Park et al., 2019). However, there are other factors that have an overall impact on the global supply chain. For example, infectious diseases such as COVID-19 as of 2020 have driven the world into a panic with a huge impact due to less transportation and fewer operating factories, which are the main agents of the global supply chain (Fujimoto, 2020).

In response to such a dynamic external environment and technology factors that affect these global supply chains, implementing sociotechnical network capability to diverse risks is becoming increasingly critical for multinational firms. Such capabilities require risk mitigation, resilience responsiveness, business continuity plans, and future scenario planning strategies for achieving a sustainable competitive advantage (Hong and Park, 2020; Oliver and Parrett, 2018; Ramírez and Wilkinson, 2016; Singh and Hong, 2020; Tang et al., ,2018). In the context of mounting uncertainty in international relations, including hegemonic rivalry, nationalistic policies, trade tensions, research frontiers for firm longevity, and ecosystem sustainability are also expanding.

References

Braunscheidel, M. J., Suresh, N. C., 2009. The organizational antecedents of a firm’s supply chain agility for risk mitigation and response. Journal of Operations Management 27(2), 119-140.

Chang, Y., Iakovou, E., & Shi, W. (2020). Blockchain in global supply chains and cross border trade: a critical synthesis of the state-of-the-art, challenges and opportunities. International Journal of Production Research, 58(7), 2082-2099.

Chopra, S., & Sodhi, M. (2014). Reducing the risk of supply chain disruptions. MIT Sloan management review, 55(3), 72-80.

Fujimoto, T., 2007. Competing to Be Really, Really Good: The Behind the Scenes Drama of Capability-Building Competition in the Automobile Industry, I-House Press.

Fujimoto, T., 2011. Supply Chain Competitiveness and Robustness: A lesson from the 2011 Tohoku Earthquake and virtual dualiaiton. MMRC Discussion Paper 354, 1-27.

Fujimoto, T., 2020. A Note on Global Supply Chains in the After-COVID-19 Era. MMRC Discussion Paper 530, 1-15.

Fujimoto, T., Park, Y.W., 2014. Balancing supply chain competitiveness and robustness through “virtual dual sourcing”: Lessons from the great east Japan earthquake. International Journal of Production Economics 147(B), 429-436.

Hong, P., Park, Y.W., 2020. Rising Asia and American Hegemony: Practices of Global Firms from Japan, Korea, China and India. Springer.

Oliver, J. J., & Parrett, E. (2018). Managing future uncertainty: Reevaluating the role of scenario planning. Business Horizons, 61(2), 339-352.

Park, Y. W., Hong, P., Fujimoto, T., 2019. Literature Survey Field-Based studies of Supply Chains Robustness. MMRC Discussion Paper 510, 1-37.

Park, Y.W., Hong, P., Roh, J.J., 2013. Supply chain lessons from the catastrophic natural disaster in Japan. Business Horizons 56(1), 75-85.

Ramírez, R., Wilkinson, A., (2016). Strategic Reframing: The Oxford Scenario Planning Approach. Oxford, U.K.: Oxford University Press.

Shih, W. C. (2020). Global Supply Chains in a Post-Pandemic World. Harvard Business Review. 98(5), 82-89.

Singh, N., Hong, P. (2020). Impact of strategic and operational risk management practices on firm performance: An empirical investigation. European Management Journal. Vol. 38(5), 723-735.

Tang, M., Liao, H., Wan, Z., Herrera-Viedma, E., & Rosen, M. A. (2018). Ten years of sustainability (2009 to 2018): A bibliometric overview. Sustainability, 10(5), 1655.

Zhao, K., Zuo, Z., Blackhurst, J. V.., 2019. Modelling supply chain adaptation for disruptions: An empirically grounded complex adaptive systems approach. Journal of Operations Management 65(2), 190-212.

Dr. Youngwon Park
Dr. Takahiro Fujimoto
Dr. Paul Hong
Guest Editors

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Keywords

Challenges of operating in a global supply chain (e.g. accidents, visible and invisible risks such as COVID-19 etc.)
Sustainable Risk mitigation Strategies
Future scenario planning
Investigating risk, disruption and resilience of operations and supply chain management
Implications of pandemics, epidemics, and other sources of uncertainty on global supply chain management
Sustainable Ecosystem strategy
Global platform strategy for sustainability
Digitalization Strategy for global supply chain management (e.g. IoT, AI, Digital Transformation etc.)
Metrics and performance of the IoT investment in global firms
Sustainable logistics strategies
Sustainable outsourcing strategies
Characteristics of Sharing Economy for Sustainability

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Published Papers (11 papers)

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Research

19 pages, 946 KiB

Open AccessArticle

Knowledge Sharing Practices for Corporate Sustainability: An Empirical Investigation of Sharing Economy Firms in Japan

by Ye-Chan Park and Paul Hong

Sustainability 2022, 14(24), 16655; https://doi.org/10.3390/su142416655 - 12 Dec 2022

Cited by 1 | Viewed by 1736

Abstract

Qualitative studies of sharing economy research are mostly descriptive case studies in the context of the United States and Europe. Although Asian economies are vibrant and expanding, rarely sharing economy research focuses on Asian contexts. Furthermore, quantitative analysis of sharing economies is rare. For this reason, our research aim is to examine the corporate sustainability of sharing economy companies through qualitative and quantitative analyses. It also shows how knowledge-sharing practices affect corporate sustainability in the context of emerging sharing economy firms in Japan. The contribution of this paper is threefold: (1) to provide a conceptual framework for sharing economy practices in general; (2) to present a specific research model in a Japanese context; (3) to report the qualitative case study findings and discuss the empirical results of testing of hypotheses with statistical validation. The research results suggest that the knowledge creation context has a positive effect on both explorative and exploitative knowledge-sharing practices. Explorative knowledge sharing has a positive effect on sustainability which in turn shows a negative effect on financial performance in the short run but a positive impact in the long run. Theoretical and managerial implications provide valuable insight into how sharing economy firms achieve sustainability goals. Future research issues are also summarized. Full article

(This article belongs to the Special Issue The Impact of Sustainability and Dynamic Capabilities on Global Supply Chain Management)

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20 pages, 2409 KiB

Open AccessArticle

Developing Effective Measures of Organizational Capability of Manufacturing Firms: An Exploratory Case Study of Japanese Manufacturing Firms

by Takahiro Fujimoto, Mitsuhiro Fukuzawa, Young Won Park and Paul Hong

Sustainability 2022, 14(22), 14811; https://doi.org/10.3390/su142214811 - 10 Nov 2022

Viewed by 2836

Abstract

The present article explores the flow-oriented and routine-based concept of organizational capability in manufacturing and proposes a practical method of measuring it by using the flow map of material and information (FMMI), including the value stream map (VSM). The environment surrounding manufacturing companies is becoming increasingly turbulent, making it increasingly difficult for them to survive and prosper. For example, global companies face challenges on multiple fronts such as international trade tensions, pandemic lockdowns, and competitive challenges from firms in emerging economies. In addition, in digital markets, supply chain transparency and resiliency require visualizing the flow of materials and information across a wide range of global activities. Business activities are conceived as flows of design and control information from across functions for value creation and transfer. A high level of value creation is built on the excellence of vital function. In this context, this study aims to identify key characteristics of high-performance firms. In particular, the flow map of material and information (FMMI) assumes simultaneous execution of capability-building and capability-measuring. This research team reports the series of workshops and survey results based on (1) the work of the industry-university consortium, (2) the collaborative learning process through trust and information sharing among participating companies, (3) sharing improvement activities, and (4) identifying areas of poor flow (issues for each company). In addition, several selected case studies of Japanese firms highlight the impact of using FMMI for improving multiple performance outcomes and measuring their manufacturing capabilities at the same time. The lessons and implications are discussed. Full article

(This article belongs to the Special Issue The Impact of Sustainability and Dynamic Capabilities on Global Supply Chain Management)

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20 pages, 895 KiB

Open AccessArticle

Sustainable Human–Machine Collaborations in Digital Transformation Technologies Adoption: A Comparative Case Study of Japan and Germany

by Young Won Park and Junjiro Shintaku

Sustainability 2022, 14(17), 10583; https://doi.org/10.3390/su141710583 - 25 Aug 2022

Cited by 6 | Viewed by 2851

Abstract

The Digital Transformation (DX) megatrend is fundamentally disrupting and changing the nature of work, business, and industry at a rapid pace. Although the notion of DX has garnered much research interest from practitioners, scholarship on this topic is somehow lagging behind, possibly because of the lack of theoretical frameworks on DX. Recently, most Japanese firms have begun to use diverse digital technologies to sustain their competitive advantages. However, the return of investment on digital technologies has not been as high as expected for some firms. Furthermore, as the visions of Industry 5.0 describe sustainable, resilient, and human-centered future factories that will require smart and resilient capabilities both from next-generation manufacturing systems and human operators, it is necessary to design resilient human–machine collaborations within factories. To this end, this paper presents a research model between DX technologies and scientific problem-solving in terms of deduction, induction, and abduction inference structures as an approach to resilient human–machine collaborations. The purpose of this research is to analyze the difference in the utilization pattern of the digital technology of American, German, and Japanese firms based on three types of decision-making methods. Next, we apply this framework in a comparative case study of two Japanese firms and one German firm, where we find that there is a difference in DX technologies utilization among the Japanese and German firms. We assert that the utilization of IoT technology in the United States and Germany is pursuing IoT with the aim of autonomous control, whereas Japanese firms prioritize robot–human collaboration. Finally, we discuss how our findings contribute to the burgeoning field of resilient human–machine collaborations by showing the distinct roles of deduction, induction, and abduction inference structures. Furthermore, our research contributes to international comparative studies to identify the difference in national IT utilization. Lessons and implications are discussed. Full article

(This article belongs to the Special Issue The Impact of Sustainability and Dynamic Capabilities on Global Supply Chain Management)

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18 pages, 558 KiB

Open AccessArticle

Research on the Effects and Factors of CSV Activities by Sector in Japanese Firms: Analysis Considering the Relationships with Management and Communication Strategies

by Shinya Takata, Young Won Park and Takahiro Ohno

Sustainability 2022, 14(17), 10534; https://doi.org/10.3390/su141710534 - 24 Aug 2022

Cited by 1 | Viewed by 1885

Abstract

In this study, we examine whether social and corporate values are improved in firms conducting CSV (Creating Shared Value) activities in Japan, as well as determining the factors affecting such improvement. A total of 218 firms were selected from those conducting CSV activities in the manufacturing industry from 2019 to 2021, according to Toyo Keizai data. The following key results were obtained: first, CSV activities increase social value, but do not improve short-term financial performance. Second, the effects on financial performance and factors affecting the improvement of social values vary from sector to sector. Third, changes in sales is a common factor affecting performance. Fourth, communication strategies for the implementation of CSV activities differ between material and assembly industries; for example, materiality plays an important role for human resource utilization in material sectors, while in-house branding plays an important role in assembly sectors. Our research findings contribute to the understanding of the need to take different measures to improve social value among different sectors of the manufacturing industry. Full article

(This article belongs to the Special Issue The Impact of Sustainability and Dynamic Capabilities on Global Supply Chain Management)

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16 pages, 2079 KiB

Open AccessArticle

Sustainable Agricultural Business Model: Case Studies of Innovative Indian Farmers

by Paul Hong, Balasudarsun N. L., Vivek N. and Sathish M.

Sustainability 2022, 14(16), 10242; https://doi.org/10.3390/su141610242 - 17 Aug 2022

Viewed by 11025

Abstract

Agriculture and allied sectors are the mainstays of the Indian rural population and yet, the vast majority is still poor. The Indian government has introduced pro-farmer schemes and policies for their quality of life, but the improvement rate of their quality of life is still relatively slow. In this context, this paper presents a sustainable agricultural business model (SABM), which defines contexts, practices, and outcomes. This SABM is compared with the conventional agricultural business model (CABM). Innovative farmers were selected from different parts of India. Their practices are examined with key performance indicators (KPIs) regarding strategic focus, labor productivity, vital resources usage, soil maintenance, output quality, and revenue performance. Case study results suggest that farmers that adopt SABM are innovative and productive with a better quality of life. In contrast, those who follow CABM are characterized by relatively low productivity and continuous hardships. Lessons and implications, along with future study topics, are discussed. Full article

(This article belongs to the Special Issue The Impact of Sustainability and Dynamic Capabilities on Global Supply Chain Management)

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13 pages, 3611 KiB

Open AccessArticle

Determining Strategic Priorities for Smart City Development: Case Studies of South Korean and International Smart Cities

by Seung-Chul Kim, Paul Hong, Taewon Lee, Ayeon Lee and So-Hyun Park

Sustainability 2022, 14(16), 10001; https://doi.org/10.3390/su141610001 - 12 Aug 2022

Cited by 13 | Viewed by 5462

Abstract

Increasingly, nations are engaging in smart city development projects. Smart city development aims to build urban areas with a wholesome quality of life with modern infrastructure capabilities (e.g., economic opportunities, cultural richness, and demographic-geographical balance), technological benefits (e.g., healthcare, education, government) and sustainability goals (e.g., clean, green, safe, and secure environments). This requires huge investments of resources and participation of diverse stakeholders, whose goals are often ambiguous and conflicting. It is not unusual that many of these projects are delayed because of a lack of consensus, which further adds unnecessary social costs and a waste of time and efforts. In this sense, determining strategic priorities for smart city development is crucial for achieving a set of integrative purposes in terms of resource allocation and social benefits goals. This paper aims to determine strategic priorities by examining multiple cases of smart city projects in Korea, Europe, and the U.S. A hierarchical strategic framework, which shows the vision, core values and strategic goals, is developed and proposed from the case studies. Lessons and practical implications are discussed for future study. Full article

(This article belongs to the Special Issue The Impact of Sustainability and Dynamic Capabilities on Global Supply Chain Management)

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13 pages, 1162 KiB

Open AccessArticle

A Research Framework for Sustainable Digital Innovation: Case Studies of Japanese Firms

by Young Won Park and Paul Hong

Sustainability 2022, 14(15), 9218; https://doi.org/10.3390/su14159218 - 27 Jul 2022

Cited by 7 | Viewed by 3000

Abstract

Today’s competitive and highly volatile environment calls for a new kind of flexibility and adaptability. Limited studies are available that examine how firms achieve both speed and creativity requirements in this digital era. In view of the rare empirical studies on real-world cases that apply rigorous research methods for sustainable digital innovation (SDI), this research investigates the key strategic requirements of organizational agility and flexibility for SDI. The research framework defines four types of innovators. This study used the benchmark tool to assess the status of their innovation effectiveness. This research framework is useful for firms to classify, assess, and evaluate their innovation type. The study’s findings also suggest the road map for future strategic goals. This theoretical framework illustrates the causal relationship between Japanese-style digital innovation and the firms’ sustainable competitive advantage. This model might be extended to other firms in different contexts (e.g., Korea, India, USA, Brazil, and a host of other countries). The theoretical and practical implications are discussed for future research. Full article

(This article belongs to the Special Issue The Impact of Sustainability and Dynamic Capabilities on Global Supply Chain Management)

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13 pages, 641 KiB

Open AccessArticle

Long-Term Partnerships in Japanese Firms’ Logistics Outsourcing: From a Sustainable Perspective

by Jin Shi, Youngwon Park, Ryosuke Sugie and Mitsuhiro Fukuzawa

Sustainability 2022, 14(10), 6376; https://doi.org/10.3390/su14106376 - 23 May 2022

Cited by 4 | Viewed by 3486

Abstract

This study aimed to reveal the actual state of Japanese firms’ logistics outsourcing, and examine their relationship with LSPs. This study addressed the following issues by conducting a case study of six leading manufacturing firms. First, it clarified the characteristics of Japanese-style logistics outsourcing as: the outsourcing of the total activities, the consigning to a single LSP, and the development of advanced information systems. Moreover, it examined the logistics outsourcing performance from a sustainable perspective, and concluded that Japanese-style logistics management enables firms to achieve high performance in all the economic, environmental, and social dimensions. Second, this study confirms that the traditional Japanese business practice of long-term partnerships is still maintained in logistics outsourcing management. Third, this study also explored how long-term partnerships create sustainable competitive advantages. Finally, based on these findings, a theoretical framework illustrating the relationship between Japanese-style logistics outsourcing and firms’ sustainable competitive advantage is presented. Our findings may encourage companies to develop a long-term partnership with their logistics service providers, and to put environmental and social indicators into their KPI system to achieve a sustainable competitive advantage by balancing the economy, environment, and society. Full article

(This article belongs to the Special Issue The Impact of Sustainability and Dynamic Capabilities on Global Supply Chain Management)

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21 pages, 690 KiB

Open AccessArticle

An Exploratory Case Study on the Metrics and Performance of IoT Investment in Japanese Manufacturing Firms

by Mitsuhiro Fukuzawa, Ryosuke Sugie, Youngwon Park and Jin Shi

Sustainability 2022, 14(5), 2708; https://doi.org/10.3390/su14052708 - 25 Feb 2022

Cited by 8 | Viewed by 3039

Abstract

This study investigates the objectives, approval process, decision criteria, metrics, and performance of the Internet of Things (IoT) system investment in four Japanese manufacturing firms through exploratory case analysis. This study conducted semi-structured interviews and several workshops with practitioners to collect, confirm, supplement, and verify the interviews data and the researcher’s interpretations. The study clarifies the actual status of investment activities in IoT systems and the essential common issues. In addition, this study shows that IoT investments in Japanese companies improve production activities’ efficiency. However, collaboration among divisions and departments other than production is not sufficient. This paper also contributes to constructing an analytical framework for comprehensively clarifying IT system investment decision-making and investment effects. These findings will be one of the reference points of the IoT system investment project and will contribute to the recent digital transformation movement in many manufacturing firms. Full article

(This article belongs to the Special Issue The Impact of Sustainability and Dynamic Capabilities on Global Supply Chain Management)

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17 pages, 1566 KiB

Open AccessArticle

Identification and Characterization of Supply Chain Operational Risk Profiles in Manufacturing Companies

by Hai Thanh Pham and Chiara Verbano

Sustainability 2022, 14(4), 1996; https://doi.org/10.3390/su14041996 - 10 Feb 2022

Cited by 2 | Viewed by 2326

Abstract

Research on the interactions between risk, integration, and performance in supply chains (SCs) is increasingly attracting attention of researchers in recent years. Although risk usually has negative effects on performance, limited evidence has been provided to show whether companies differently exposed to operational risk (i.e., high, moderate, or low exposure) also have different levels of integration and operational performance. Therefore, this study aims to identify and characterize different profiles of operational risk (i.e., supply, manufacturing, and demand risks) between manufacturing companies along with considering contextual factors such as company size and industry type. Data are collected from the fourth round of the High Performance Manufacturing Project and subsequently analyzed by cluster analysis and analysis of variance (ANOVA). Three different clusters have been identified: Two clusters are moderately and highly impacted by operational risk, respectively, while the other cluster is almost not impacted by manufacturing risk but highly impacted by supply risk and demand risk. The results also indicate that companies with different profiles of operational risk have different levels of integration and operational performance. An important contribution of the current study is the development of a hypothesized framework of interactions between operational risk, integration, and operational performance to provide opportunities for further research. Full article

(This article belongs to the Special Issue The Impact of Sustainability and Dynamic Capabilities on Global Supply Chain Management)

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27 pages, 3823 KiB

Open AccessArticle

Dynamic Capabilities to Achieve Corporate Sustainability: A Roadmap to Sustained Competitive Advantage

by Nadeem Bari, Ranga Chimhundu and Ka-Ching Chan

Sustainability 2022, 14(3), 1531; https://doi.org/10.3390/su14031531 - 28 Jan 2022

Cited by 39 | Viewed by 9450

Abstract

Dynamic capabilities and sustainability practices have become the center of attention for companies globally, but there is still a debate on how organizations can successfully develop dynamic capabilities and achieve sustainability for competitive advantage. This paper discusses the outcomes of a comprehensive systematic literature review (SLR) following the PRISMA guidelines and employs dynamic capabilities theory to suggest that strategic routines and competencies, integrated value chains, sustainability-oriented transformations, and strategic organizational developments are the drivers to effectively develop dynamic capabilities. Similarly, environmental-oriented sustainability, sustainable strategic management, sustainable dynamic capabilities, stakeholder-centric approach, sustainable supply chain management, operational excellence, sustainable research and development (R&D), and sustainability-oriented global business strategy are found to be the drivers to achieve overall corporate sustainability. Based on the findings, a conceptual model is proposed to obtain sustained competitive advantage by developing sustainable dynamic capabilities and achieving corporate sustainability. Full article

(This article belongs to the Special Issue The Impact of Sustainability and Dynamic Capabilities on Global Supply Chain Management)

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