Base Inventory Cooperation Strategy of Multi-parts with Supply-Hub

Li, Shuangyan; Zhang, Dezhi; Jin, Fang-ping

doi:10.5539/ijbm.v8n20p96

Cited by 3 publications

(3 citation statements)

References 12 publications

(3 reference statements)

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“…This gap is notable because innovation is crucial to firm survival and growth (Baumol ). When firms, especially SMEs, lack the internal resources needed to innovate, which implies a situation of dependency, they might adopt either cooperation or integration strategies (Shuang‐yan, De‐Zhi, and Fang‐Ping ; Wang and Zajac ). It seems likely that there is some link between the sources of dependence and the strategic choices to innovate.…”

Section: Sources Of Dependence and Strategies To Innovatementioning

confidence: 99%

“…Some SMEs adopt an integration strategy to innovate and develop a new product, which consists of three general forms: employee training, recruitment, and firm acquisition. An integration strategy allows SMEs to retain and increase control of the activities of the innovation process and offers more protection for the innovation outcomes and high‐value assets (Pisano and Teece ; Shuang‐yan, De‐Zhi, and Fang‐Ping ; Teece ), while also reducing the threat of opportunistic behavior. However, integration is often more expensive than cooperation, despite the reduced transaction costs and increased income (Wang and Zajac ).…”

Section: Sources Of Dependence and Strategies To Innovatementioning

confidence: 99%

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Sources of Dependence and Strategies to Innovate: Evidence from Video Game SMEs

Gandia

Gardet

2017

Journal of Small Business Management

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Recent studies call for reconsideration of the predictions of resource dependence theory, in light of contemporary industrial and economic environments. This study accordingly investigates the influence of dependence on the strategic choice to innovate by focusing on a rarely studied topic, namely, the sources of dependence. In studying small and medium‐sized video game enterprises, this paper provides empirical validation of dependence phenomena. These companies have limited resources, which inevitably creates dependence, exacerbated in innovative contexts because of the prevalence of negative effects, such as opportunism, abuse of power, limited innovation, or inequitable distributions of economic value. To deal with these negative effects, some enterprises use cooperation or integration strategies to try to minimize their dependence. The strategic choice then might be conditioned. The results of a comparative and qualitative study of five video game developers show that a lack of resources and skills is the primary source of dependence. In addition, a hierarchy of sources of dependence seems to guide the strategic choices of developers to innovate.

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Section: Sources Of Dependence and Strategies To Innovatementioning

confidence: 99%

Section: Sources Of Dependence and Strategies To Innovatementioning

confidence: 99%

Sources of Dependence and Strategies to Innovate: Evidence from Video Game SMEs

Gandia

Gardet

2017

Journal of Small Business Management

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“…Shah and Goh (2006) proposed an organized hierarchical model for managing the inventories according to the supply hub so as to aid in achieving the stability between different bodies existing in the supply chain. Several researchers such as Li et al (2008), Li et al (2009) and Shuang-yan et al (2013) showed benefits of using the supply hub. Qiu et al (2014) studied how manufacturers and SHIP can interact so as to optimize their decision on replenishment, delivery and storage pricing.…”

Section: Introductionmentioning

confidence: 99%

A practical supply-demand hub in industrial clusters: a new perspective

Kayvanfar

Husseini

Zhang

et al. 2019

MRR

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Purpose This paper aims to optimize the interactions of businesses located within industrial clusters (ICs) by using a supply-demand hub in ICs (SDHIC) as a conjoint provider of logistics and depository facilities for small- and medium-sized enterprises (SMEs) as producers, where all of these interactions are under supervision of a third-party logistics provider (3PL). Design/methodology/approach To evaluate the values of SDHIC, three mathematical models are proposed, optimally solved via GAMS and then compared. Also, a “linear relaxation-based heuristic” procedure is proposed to yield a feasible initial solution within a significant shorter computational time. To illustrate the values of SDHIC, comprehensive calculations over a case study and generated sets of instances are conducted, including several sensitivity analysis. Findings The experimental results demonstrate the efficiency of SDHIC for SMEs via combining batches and integrating the holding space of inventories, while the outcomes of the case study are aligned with those obtained from random sample examples, which confirms the trueness of used parameters and reveals the applicability of using SDHIC in real world. Finally, several interesting managerial implications for practitioners are extracted and presented. Practical implications Some of the managerial and practical implications are optimizing interactions of businesses involved in a supply chain of an IC containing some customers, suppliers and manufacturers and rectifying the present noteworthy gaps pertaining to the previously published research via using real assumptions and merging upstream and downstream of the supply chain through centralizing on storage of raw materials (supply echelon) and finished products (demand echelon) at the same place simultaneously to challenge a classic concept in which supply and demand echelons were being separately planned regarding their inventory management and logistics activities and showing the positive consequences of such challenge, showing the performance improvement of the proposed model compared to the classic model, by increasing the storing cost of raw materials and finished products, considering some disadvantages of using SDHIC and showing the usefulness of SDHIC in total, presenting some applied findings according to the obtained results of sensitivity analysis. Originality/value The key contributions of this paper to the literature are suggesting a new applied mathematical methodology to the supply chain (SC) of ICs by means of a conjoint provider of warehousing activities called SDHIC, comparing the new proposed model with the two classic ones and showing the proposed model’s dominancy, showing the helpful outcomes of collaborating 3PL with the SMEs in a cluster, proposing a “linear relaxation-based heuristic” procedure to yield a feasible initial solution within a significant shorter computational time and minimizing total supply chain costs of such IC by optimum application of facilities, lands and labor.

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