EXPLORINGSUPPLYCHAINMANAGEMENTINEMERGINGMARKETS

1、EXPLORING SUPPLY CHAIN MANAGEMENT IN EMERGING MARKETSHarri Lorentz* *)Logistics, Turku School of Economics, 20500 Turku, Finland E-mail: harri.lorentztse.fi, Tel: +358 2 4814 244; Fax: +358 2 4814 280ABSTRACTPurpose of this paperTo explore the nature and implications of supply chain management in emerging markets (EM), (1) by elaborating on the theoretical construct of EM contextual supply chain constraint, (2) by proposing a classification of EM contextual supply chain constraints, and (3) by p

2、utting forth testable propositions related to the EM contextual supply chain constraints. Design/methodology/approachThe paper is conceptual in nature, while it additionally draws on the authors previous empirical research on the topic. The approach may be considered systemic in nature, as the relationships of firms supply chain processes with contextual characteristics and change processes are considered.FindingsThe paper proposes that EM contextual supply chain constraints spring either from t

3、he characteristics of institutions, networks or infrastructure. The degree to which a foreign company is affected by a constraint, depends on the role of supply chain management in the firms business model. EM contextual supply chain constraints are proposed to result in suboptimal supply chain configurations, delayed or cancelled internationalisation, and lower performance.Research limitations/implications Future research opportunities are proposed: the propositions should be validated and illu

4、strated with further research in a variety of EMs. What is original/value of paperIt is argued that the attempt towards theory generating research on the nature and implications of supply chain management in EMs is novel. For the benefit of researchers, propositions are introduced and possible research agenda is presented.Keywords: supply chain management, emerging markets, constraints, internationalisation, propositions1. INTRODUCTIONAt the moment, relatively few companies attempt to take full

5、advantage of the consumer potential in for example the markets of Brazil, Russia, India and China, i.e. the BRIC (McKinsey Quarterly, 2004). Fully tapping on these markets would for example mean a need to expand focus from the relatively easy strategy of establishing presence in the few major urban centres and serving the affluent minority. One of the few examples of attempts to broader market coverage is P&G, who has been induced to expand its already massive distribution network in China to co

6、ver the rural areas where the retail outlets are still small mom-and-pop stores (Roberts, 2007). Further, Nokias successful first-mover strategy in emerging markets has been facilitated by such essential supply chain management activities as product development and distribution. Emerging market oriented product features (dustproof keypads, attached flashlight) and distribution solutions (variety and density in points-of-sale, utilisation of bicycles, rickshaws, minivans in distribution and sales

7、) have helped Nokia to generate sales of some 3.7 billion USD (2006) in India (Ewing, 2007a). Emerging markets provide lucrative opportunities for companies, but also present certain challenges in establishing operations and realising competitive strategy. For example Dell struggled to execute its customer oriented business strategy and its make-to-order direct-sales supply chain strategy in Russia, as rapid and reliable home delivery services were lacking. Consequently the company has opened br

8、ick-and-mortar stores in Moscow and other Central and Eastern European (CEE) countries to boost poor sales performance and market share in rapidly growing markets (Ewing, 2007b). The above mentioned anecdotes point out the fact that logistics and the SCM are among the critical success factors for companies operating in the international arena and specifically in emerging markets, as increasing complexity arises from wider range of products, shorter product life cycles, market growth, and the num

9、ber of simultaneously required supply/marketing channels (Braithwaite & Christopher, 1991). Also, it seems that challenges pertaining to supply chains and their management in emerging markets may have an effect on the realisation of business strategies. This paper is about establishing and managing supply chains in emerging markets, effectively addressing the issue of whether business strategy may be facilitated with supply chain strategy in emerging markets. The reasonably novel research topic is addressed in an exploratory manner, drawing on some empirical evidence from the internationalisation of Finnish companies to the emerging market of Russia. The paper therefore aims towards building new theory through the inductive case study approach (Eisenhardt, 1989), with focus on understanding the phenomenon and its relationship with managerial decision making. In other words, the paper seeks to explore the nature and implications of s

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