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Managing supply risk is gaining in importance in the tightly interconnected global economy. Identifying the relevant risks is the foundation of any risk management process. Therefore, the purpose of this paper first is to provide a short introduction to supply risk management, before focussing on the identification of such risks in more detail. A holistic framework of the identified supply risks, which distinguishes between risk dimensions and risk factors in manufacturing upstream supply networks, is proposed.

This study applies a mixed methods research approach. Data are collected based on a structured literature review in combination with the analysis of company-specific documents and semi-structured expert interviews. Subsequently, a deductive content analysis is carried out to derive a holistic framework of supply risks, adapted to the manufacturing industry. For the external validation of the conceptual supply risk framework, additional experts from several manufacturing companies were consulted.

Based on the definition and delimitation of supply risk, a categorization of supply risks is developed. The relevant literature, as well as expert interviews, lead to the distinction of six supply risk dimensions: quality, delivery, collaboration, economic, ambience and compliance. A total of 27 risk factors can be assigned to these dimensions. A holistic foundation for the management of supply risk is thus created.

This study provides a holistic framework of relevant supply risks in the context of the manufacturing industry. This overview of identified risks offers a novel perspective on risk in manufacturing supply networks that can be helpful in researching assessment and mitigation strategies. Despite the high relevance and popularity of this field of research, such an overview with a focus on manufacturing had not yet been made available in the literature. Building thereon, management approaches can now be developed to handle the risk arising from the upstream of the supply network.

Adopting the dynamic capability perspective, this study aims at exploring which problem-solving capabilities result in fundamental solutions with a potentially low likelihood for problems to recur. This can also shed light on why, despite many attempts, process improvement programs often fail to produce such long-term solutions.

A case study is carried out to inductively describe and classify problem-solving in companies and to indicate why problem-solving efforts are typically bounded to short-term solutions. The empirical findings are triangulated with findings from the extant literature.

First, the authors propose three problem-solving modes with different characteristics and potential impacts on operational performance: intuitive problem-solving, semi-structured problem-solving and systematic problem-solving. Second, by emphasizing dynamic capabilities' micro-foundations and with the focus on learning mechanisms, the authors show that, among these modes, only systematic problem-solving can serve as a dynamic capability with fundamental solutions. Third, based on insights from the case study, the authors address behavioral and organizational impediments that curb dynamic capabilities and limit systematic problem-solving adoption.

This study is an empirically informed attempt to understand systematic problem-solving as a dynamic capability. The authors uncover the micro-foundations and the learning mechanisms through which systematic problem-solving becomes a dynamic capability. By highlighting problem-solving orientation as a hardly investigated dimension of improvement programs, the authors show that a mixture of a static problem-solving approach and a set of impediments at both individual and organizational levels is the major reason of failures of improvement programs over time.

The purpose of this paper is to investigate the effects of extended production disruptions because of process quality breakdowns on operational and financial performance. The investigation is conducted over the market cycle of a highly profitable product, e.g. a patented pharmaceutical. In particular, the study evaluates performance effects of different inventory level policies. The paper considers different degrees of availability of a substitute product.

The study uses simulation experiments based on system dynamics methodology to derive inventory policies on handling infrequently happening but severe production process breakdowns. The simulation model is inspired by empirical case study research and is based on standard modeling formulations from the literature.

The scenario analyses show that the optimal level of safety stock coverage time depends in a highly non-linear manner on various economic parameters and shows threshold behavior.

In subsequent studies, the effect of the degree of backlogging and the effect of the repeated occurrence of quality breakdowns on the results can be investigated.

The critical importance of safety stock and its non-linear relationship to economic product characteristics is emphasized.

Motivated by a real-world case study, the paper uses standard model formulations to derive insights for a specific business situation after considering uncertainty in the environment.

One pertinent dynamic phenomenon in supply chains is the amplification of order variance, i.e. the bullwhip effect. Its continued significance is underscored in contemporary empirical research. While numerous publications have pinpointed various causes of the bullwhip effect, there remains a gap in their systematic consolidation. The purpose of this paper is to compile a comprehensive list of the causes of the bullwhip effect from existing literature and categorize them appropriately.

This study conducts a systematic literature review to offer a comprehensive overview of bullwhip effect causes addressed in the existing literature. The identified causes are categorized using a qualitative content analysis approach.

The study shows the diversity of the causes of the bullwhip effect and their interdependencies. In addition, this study demonstrates that, at the highest level of aggregation, causes of the bullwhip effect can be classified into four main categories: causes inherent in the system structure, causes related to uncertainty, causes related to misaligned incentives and causes related to inadequate cognition of the situation.

The work provides an extensive overview and categorization of bullwhip effect causes, offering valuable insights for both researchers and practitioners seeking a deeper understanding of this phenomenon. In addition, it underscores managerial implications and highlights future research opportunities.

The purpose of this paper is to investigate the dynamics of accumulation processes of strategic capabilities in manufacturing, i.e. cost, quality, delivery, and flexibility. By applying a dynamic view, concepts from the literature are tested and shortcomings are identified.

The analysis was conducted with the help of an exploratory system dynamics model that represented a hierarchy of these accumulative capabilities. The exploratory model was parameterized with empirical data from a large international survey of manufacturing plants.

The major finding of this paper is that results from a static analysis can be transferred into a dynamic model, which can be used to test allocation strategies of resources to strategic capabilities.

The practical implications concern the distribution of managerial attention on the four capabilities and the consequences of different distributions.

The value of this paper lies in the insights gained by the transformation of a verbal model into a quantified simulation model, and the learning resulting from simulation experiments.

Mergers and acquisitions (M&As) have drawn the attention of researchers for several decades. Many studies have investigated the factors apparently influencing the success of an M&A deal, leading to an extensive, yet extremely fragmented body of knowledge. Although the logical quest for integration has been expressed by several authors, in most cases investigations focus only on details of M&As. The aim of this paper is to offer a different way of synthesis that allows testing well‐established theories of post‐merger integration processes.

With the help of a literature‐based system dynamics (SD) model, the paper opens up a new perspective on the organizational processes occurring during post‐merger integration. Particular emphasis is put on the investigation of capability transfer, the change of corporate culture, and the employees' perception of the integration process.

The model‐based analysis delivers explanations for the contradicting results of many empirical studies, based on the structural integration of a broad body of knowledge and the analysis of simulation runs. The paper suggests that SD models may be used as a means to achieve a more consistent conceptual integration than usual “theoretical frameworks” can provide.

Since the model is primarily based on theoretical ideas, an empirical validation of results seems most critical. Additionally, the linkage to organizational performance measures may need additional modelling effort.

The paper demonstrates the various interrelationships between organizational capabilities, culture, and employee commitment of two merging companies.

The paper is one of the few that strives for an integrated perspective on post‐merger phenomena.

The purpose of this paper is to demonstrate the usefulness of a dynamic analysis of the development and management of strategic capabilities and resources in manufacturing. It aims to present dynamic resource/capability systems as a means to understand an issue from manufacturing strategy.

A case study from a standard textbook on manufacturing strategy is used to illustrate the approach that is mainly based on Warren's strategy dynamics. Extensions to this approach are introduced.

Diagrams of dynamic resource/capability systems are valuable tools for understanding issues of interconnected and changing strategic resources and capabilities. Resources and capabilities can be interpreted as stocks in dynamic simulation models following ideas from system dynamics.

The exact nature of strategic capabilities and their relationships needs to be further investigated. Approaches need to be developed to measure and to quantify these concepts. The connection between Hill's order winners/qualifiers and the inflows/outflows of capability and resource stocks should be further examined.

Static analyses of strategic issues are often difficult to interpret. The dynamic nature of strategic issues needs to be reflected in the tools used for analysing them.

Applies a dynamic analysis to manufacturing strategy and uses a textbook example in a new way to illustrate the relevance of the approach.

The vast majority of literature relating to operations management originates from studies in developed markets. Emerging markets are increasingly important in global business. With this in mind, the purpose of this paper is to analyze differences in outsourcing strategies between manufacturing firms from emerging markets and from developed markets.

The paper is based on statistical analyses of a large data set of manufacturing firms obtained from the International Manufacturing Strategy Survey (IMSS).

The findings suggest that companies that outsource internationally focus on achieving cost benefits, while companies that outsource domestically focus on achieving capacity flexibility. In addition, the reasons to outsource were found to be independent of the location of firms in both emerging and developed markets. However, within the group of firms from emerging markets, strategies seem to differ according to whether firms are domestically owned or are subsidiaries of companies from developed markets.

The decisions of firms to outsource do not differ much whether the firms are located in developed‐ or in emerging‐market economies. Firms outsource domestically when they want to increase their capacity flexibility; they outsource internationally when looking for cost advantages.

The value of the paper is that it illuminates an important contemporary phenomenon based on analyses on data from a large‐scale international survey encompassing firms both in developed and in emerging markets.

The purpose of this paper is to examine the relationships between strategic manufacturing capabilities, particularly whether they are cumulative or trade‐off in nature.

Uses statistical analyses, particularly structural equation modelling based on data from the third round of the International Manufacturing Strategy Survey.

Finds mostly cumulative effects between the strategic capabilities. Shows that “quality” is a basis for “delivery”, which is a basis for “flexibility” and “cost”; between “flexibility” and “cost” an unclear relationship is found. Whether “flexibility” and “cost” are pursued exclusively or simultaneously seems to be connected with the implementation of certain improvement programmes.

Results cannot be interpreted in a prescriptive way, but only as descriptive findings stemming from a large empirical database. Future research in this area needs to be extended by longitudinal analyses and simulation studies because cross‐sectional analyses can only provide indirect empirical measures of dynamic changes of capabilities.

Describes a common pattern of capability accumulation in the industries investigated. This information can be used to estimate potential competitor behaviour or as a way to perform in an innovative manner.

Offers a clear conceptualisation of strategic capabilities with the help of an empirical study.