Dr Byron W. Keating

What do 3PL customers really want?

Tim Coltman et al. — Mon, 07 Nov 2011 14:31:37 PST

Successful companies understand what their customers want and are able to reverse engineer their supply chains to meet this demand in ways that make business sense. Less successful companies often find it hard to obtain a good understanding of what their customer’s value, and spend considerable time hustling to do things that are not fully appreciated by their customers. The lessons here are quite straightforward; rewards accrue to those organizations that are “best” able to match “appropriate” supply chain activities to the latent needs of their customers.

RFID Adoption Issues: Analysis of Organizational Benefits & Risks

Samuel Fosso-Wamba et al. — Mon, 07 Nov 2011 14:31:33 PST

What makes companies such as Wal-Mart in the U.S., Metro Group in Germany and Tesco in the United Kingdom, so willing to adopt RFID technology? More precisely, what are those factors that matter most and least to firms when considering an investment in RFID? And how does the importance of such factors vary between adopters and non-adopters? The answers to these questions are important because they indicate where future development effort should be directed to increase the rate of RFID adoption. To begin, we conducted a large survey of 133 RFID Journal readers. The industries represented in the sample include: wholesale trade, retail trade, transportation and communications, business services, communication services, manufacturing, finance and insurance, mining, government administration and defense. Firm size was well distributed, with 39% of the sample from small sized firms (less than 20 employees), 21% from medium sized firms (20 to 200 employees) and 40% from large firms (more than 200 employees). The methodology used to conduct this study allowed us to calculate the relative importance of 21 attributes that influence the decision to invest in RFID. The results indicate that those factors that matter “most” during the RFID investment decision are: (1) the benefits that RFID offers in terms of improved data quality, reliability and timeliness, (2) the amount of top management commitment by senior managers to provide resources that will support investment in RFID, and (3) improved alignment of information between suppliers and customers. One of the most interesting aspects of the study is that it shows quite clearly which attributes respondents are willing to abandon first. In other words, the factors that matter “least” to the RFID investment decision are: (1) privacy threats, (2) security threats and (3) standards ambiguity. Finally, the results reveal important differences between RFID adopters and non adopters. In the case of adopters, the perceived opportunity to derive strategic benefits from RFID through improved decision making is critical. Not surprisingly, the non adopting firms are primarily concerned with the high acquisition and other costs associated with RFID technology.

Best–Worst Scaling Approach to Predict Customer Choice for 3PL

Tim R. Coltman et al. — Mon, 07 Nov 2011 14:31:29 PST

This study describes a simple, theoretically based methodology to analyze the nature of customer demand for third-party logistics provider service components. The method overcomes limitations in prior studies and enables us to examine the relative importance of product and service attributes as they pertain to the choice of third-party logistics providers. Two distinct types of customers populate our data: those professing operational attributes and those seeking relational attributes. The theoretical and practical implications are that improved supply chain models can be developed when separate demand structures are taken into account.

What Drives the Choice of a Third Party Logistics Provider?

Edward Anderson et al. — Mon, 07 Nov 2011 14:31:25 PST

It is generally believed that companies choose supply chain partners on the basis of their distinctive value propositions – a fact one would also expect holds true when companies choose a logistics service provider. However, faced with the complexities of varied customer demands, it can be difficult for logistics service companies to obtain an effective understanding of how customers differentially value the service components they offer. In this paper, we address this by identifying the factors that are important in a customer’s choice of a logistics service provider. Using stated choice methods we explore the relative importance of seven service attributes using a sample of 309 managers with a central role in purchasing logistics services across a range of industries and countries. The results reveal that three distinct decision models populate our data where the preferences for different logistics service attributes – such as price and delivery performance – vary greatly between customer groups represented by these models. Strategically, our findings provide the management of a third party logistics provider with a logical starting point from which to determine the goals that are set for their operations, particularly in choosing the customer segments to service.

Designing IS service strategy: an information acceleration approach

Pierre J. Richard et al. — Mon, 07 Nov 2011 14:31:20 PST

Information technology-based innovation involves considerable risk requiring foresight; yet our understanding of the way in which managers develop the insight to support new breakthrough applications is limited and remains obscured by high levels of technical and market uncertainty. This paper applies discrete choice analysis to support improved empirical explanation of how and why decisions are made in information systems. A new experimental method based on information acceleration is also applied to improve prediction of future IS service strategies. Both explanation and prediction are important to IS research and these two behaviourally sound methods complement each other. Specifically, the combination of information acceleration and discrete choice analysis removes misspecification artefacts from response variability and generates more accurate parameter estimates that better explain IS decision making.

Unpacking the ERP investment decision: An empirical assessment of the benefits and risks

Byron Keating et al. — Mon, 07 Nov 2011 14:31:14 PST

Most leading organizations, in all sectors of industry, commerce and government are dependent upon

ERP for their organizational survival. Yet despite the importance of the decision to adopt ERP and its

impact on the entire firm’s performance the IT literature has been in the large part silent on the nature

of the ERP investment decision. This study is the first of its kind to determine the preference structure

of senior managers around the organizational benefits and risks of adopting ERP. We present the

results which provide interesting insights into how managers’ perceive the benefit and risk factors

salient to the organization’s adoption decision. In line with prior research we found that improved

productivity, and information and planning are important drivers of the ERP adoption decision.

Moreover our findings reveal that the benefits of ERP are weighted almost twice as important as the

risks when making an ERP investment decision. However when it comes to risk, interestingly

managers consider issues such as top management commitment and vendor support as more

important than financial risk

Designing 3PL Services: Valuable insights from customers

Eddie Anderson et al. — Mon, 07 Nov 2011 14:31:10 PST

As markets become more global and competition continues to intensify, firms are beginning to realize that competition is not exclusively a firm versus firm domain but a “supply chain against supply chain” phenomenon. For the providers of supply chain services the implications of even a modest increase in strategic importance implies greater complexity, as their operations are now more important to a thickening web of stakeholders that are more discerning and market literate. In this study we seek to open the black box of customer demand by identifying those factors that contribute most to the selection of a supply chain supplier.

Unpacking the ERP investment decision: an empirical assessment of the benefits and risks

Byron Keating et al. — Mon, 07 Nov 2011 14:31:06 PST

Most leading organizations, in all sectors of industry, commerce and government are dependent upon ERP for their organizational survival. Yet despite the importance of the decision to adopt ERP and its impact on the entire firm’s performance the IT literature has been in the large part silent on the nature of the ERP investment decision. This study is the first of its kind to determine the preference structure of senior managers around the organizational benefits and risks of adopting ERP. We present the results which provide interesting insights into how managers’ perceive the benefit and risk factors salient to the organization’s adoption decision. In line with prior research we found that improved productivity, and information and planning are important drivers of the ERP adoption decision. Moreover our findings reveal that the benefits of ERP are weighted almost twice as important as the risks when making an ERP investment decision. However when it comes to risk, interestingly managers consider issues such as top management commitment and vendor support as more important than financial risks.

What drives the choice of a third-part logistics provider?

Edward J. Andersson et al. — Mon, 07 Nov 2011 14:31:02 PST

It is generally believed that companies choose supply chain partners on the basis of their distinctive value propositions — a fact one would also expect holds true when companies choose a logistics service provider. However, faced with the complexities of varied customer demands, it can be difficult for logistics service companies to obtain an effective understanding of how customers differentially value the service components they offer. In this paper, we address this issue by identifying the factors that are important in a customer’s choice of a logistics service provider. Using stated choice methods we explore the relative importance of seven service attributes using a sample of 309 managers with a central role in purchasing logistics services across a range of industries and countries. The results reveal that three distinct decision models populate our data where the preferences for different logistics service attributes - such as price and delivery performance — vary greatly between customer groups represented by these models. Strategically, our findings provide themanagement of a third-party logistics provider with a logical starting point from which to determine the goals that are set for their operations, particularly in choosing the customer segments to service.

Financial Risk and its Impact on New Purchasing Behavior in the Online Retail Setting

B. W. Keating et al. — Mon, 29 Nov 2010 16:15:36 PST

This paper examines the effect of financial risk on perceptions of service quality and relationship-marketing quality in the online retail environment. Perceptions of financial risk were found to be negatively associated with service quality. In particular, a well-designed and attractive Web site was found to mitigate perceptions of financial risk during early trial-buy purchasing. Relationship-marketing quality was not affected by financial risk. This study adds to an enhanced understanding of how risk perceptions influence assessment of service quality and relationship-marketing quality. While the drivers of service quality and relationship-marketing quality have been examined extensively in the online setting, a surprising lack of research investigates the role of risk perceptions in the early stage, buy-trial purchasing behavior. This emerging area of research interest is deserving of more attention. Our findings provide valuable normative guidance to researchers interested in the affects of perceived risk (particularly financial risk) on new online shoppers, emphasizing the interdependency between Web site design and risk perceptions.

Business Relationships in China: Lessons about Deep Trust

A. Kriz et al. — Mon, 29 Nov 2010 16:15:35 PST

Trust is acknowledged as a central tenet of business relationships. Yet for all the attention it receives, rarely has trust been investigated in the Chinese business setting. This paper uses an emic approach to unearth some within- culture ‘truths’ about Chinese notions of trust in business exchange. The findings of this research suggest that deep trust (xinren), which is driven by reciprocal help and emotional bonding, is critical for doing business in China. A conceptual framework is provided to assist Western businesspersons to better understand the Chinese concept of trust as well as the interplay between its key antecedents.

In Pursuit of a Sustainable Supply Chain

B. W. Keating et al. — Fri, 04 Sep 2009 03:57:06 PDT

The aim of this paper is to provide clues to industry and academia on how best to approach the challenge of developing a sustainable supply chain. A case study was undertaken of the Westpac Banking Corporation—one of the world’s most socially responsible banks—to examine how they approached the challenge of managing corporate social responsibility (CSR) in their supply chain.

Color as a source of brand differentiation: Can it be defended?

B. W. Keating et al. — Fri, 04 Sep 2009 03:57:05 PDT

Savvy marketers have long sought to exploit the psychological effects of color to differentiate their brands and create competitive advantage: IBM Blue, Coca- Cola Red, and BP Green. These are not new colors but well-known brand colors. While changes in international trademark law over the past decade paved the way for marketers to seek protection for a color associated with a brand, this case demonstrates some important challenges in defending such trademarks.

Outbound Tourism From China: Literature Review and Research Agenda

B. W. Keating et al. — Fri, 04 Sep 2009 03:57:05 PDT

The rapid growth of China's outbound tourism market has attracted a great deal of attention in recent years. However, the academic literature is still sparse in this area. Using a theoretical framework that synthesises the key processes related to destination choice, the authors undertake a systematic review of the academic literature on outbound tourism from China. Stemming from this review, the article provides some direction for future empirical research on this important topic. The authors also suggest that a new model for travel planning could be developed, suggesting that traditional destination choice models may inadequately capture the nuances of destination choice in the Chinese context.

RFID Adoption Issues: Analysis of Organizational Benefits and Risks

Samuel F. Wamba et al. — Fri, 04 Sep 2009 03:57:04 PDT

Unpacking the ERP Investment Decision: An Empirical Assessment of the Benefits and Risks

Byron Keating et al. — Fri, 04 Sep 2009 03:57:03 PDT

Unpacking the RFID Investment Decision

V. Baker et al. — Fri, 04 Sep 2009 03:57:02 PDT

Mandates aside, there are many reasons why firms decide to move forward with or delay investment in RFID technology. In this paper we use a theoretically based, easy to implement methodology to empirically derive a relative importance scale of those factors that influence the decision to invest in RFID technology. More specifically, we compare the factors that matter most and least to a sample of firms that have adopted RFID technology with a sample of firms that have yet to embrace RFID technology. The theoretical and practical implications are that both RFID adopters and non adopters are driven by the promise of greater data accuracy, improved information visibility, service quality, process innovation, and track and trace capabilities. What separates the adopters from the non adopters is an opportunity to derive strategic benefits from RFID through improved decision making. Not surprisingly, the non adopting firms are primarily concerned with the high acquisition and other ongoing costs associated with RFID technology.

Managing Ethics in the Tourism Supply Chain

B. W. Keating — Fri, 04 Sep 2009 03:57:01 PDT

The purpose of this paper was to provide clues to the industry and the academia on how best to approach the challenge of managing ethics in the tourism supply chain. To achieve this objective, the paper provided a case study of how the Australian government has responded to concerns about unethical practices in the tourism supply chain from China to Australia. A series of best practice recommendations are provided following a review of both the demand side and the supply side processes.