Research Method in E-Logistics and Supply Chain Management - Essay Example

Research Proposal – Supply chain risk management – International shipping Executive Summary The development of commercial activities worldwide, mostly as a result of the increase of human needs, has led to the creation of policies and practices that ensure the quality of products and services offered to the public; other aspects of commerce, like the credibility of transactions and the application of ethics are also protected through appropriate laws. In many cases, the complexity of commercial transactions set a series of challenges for the legislators and the authorities that deal with the supervision of the relevant activities. The examination and the analysis of each particular aspect of commerce require the categorization of commercial activities using specific standards and criteria; the explanation of each of these activities is then easier and more credible. Current study focuses on a specific aspect of commerce: the supply chain management; emphasis is given on the risk involved in international shipping. Appropriate methods of research have been used in order to identify and explain the various aspects of the specific aspect of commerce. The literature review and the empirical research developed for this study have led to the assumption that risk can be related with all parts of commercial activities; the limitation of this risk is a challenging target, usually depended on the tools available but also on the experience/ capabilities of the persons involved. It has also proved that the existence of appropriate legislative framework can guarantee the limitation of risk in international shipping but only under specific terms and conditions. The use of existing theoretical framework has been proved particularly helpful for the effective handling of risk in commerce; unexpected problems may always appear leading to the decrease of effectiveness of the relevant theories and policies. The role of the persons that involve in the various phases of this activity, i.e. international shipping, is crucial for the limitation of risk; the state also has an important role to the control of the risk involved in international shipping but this role is usually depended on its power to enforce the relevant legal rules. 1. Introduction The expansion of globalization has caused the alteration of business priorities worldwide; having to face the increased competition firms in all industrial sectors have been obliged to adopt innovative practices and to monitor all their activities making sure that they will be able to keep their position in the local or the international market. The effects of globalization on business practices have been emphasized in the work of Winch et al. (2006); in the above study it is noted that under the influence of globalization firms worldwide have developed complex policies aiming to remain competitive; these policies include ‘the stretching of capabilities in supporting customers in unfamiliar markets, the internal competition for funds in pursuing multiple international markets, the importance of word-of-mouth marketing, and the pressures on R&D functions’ (Winch et al., 2006, p. 73). It should be mentioned that globalization has affected all types of industrial activities; in the sector of international shipping, examined in this study, globalization has been related with specific practices: a) improvement of traditional shipping methods (the elimination of shipping methods that have been traditionally used in markets worldwide is not feasible; for example, goods that have to be sent in another country they need to be transported by ship if they are too heavy or too dangerous to be transported by air, as in the case of petroleum or metals); in the specific case the improvement of the international shipping methods could be identified to the update of the IS systems used for the completion of the relevant transaction; the use of ships of advanced technology which can complete this task quicker compared to conventional ships is also another aspect of improvement occurring in international shipping because of the globalization, b) increase of cooperation but also of competition among firms operating in this sector; in the example mentioned above the firm that handle the specific shipping task can choose among many maritime firms that deal with the specific activity; it is in this context that supply chain management is affected by globalization, c) increase of the number of firms available to the public (referring to the international shipping services), d) improvement of the IT systems of firms operating in the specific industry; at the next level, firms that operate in the international shipping industry have to develop their online presence; customers have the option to order international shipping services online; of course, the completion of the transaction requires the actual transportation of goods and their delivery to the receiver. Supply chain management has been proved to be an important part of business activities worldwide affecting the quality of services/ goods offered to the public. In fact, supply chain management can affect a firm’s viability; if a firm is not able to respond to the customers’ orders and demands then its presence in the market is under risk. In international shipping supply chain management refers to two different issues/ parts: a) the material and the technology used in the firms’ daily operations, i.e. IT systems, stationery and so one and b) the intermediate services required for the completion of the relevant transactions, i.e. the maritime or the airline firms that need to be used in order for the relevant transactions to be completed. In this context, the examination of risk involved in international shipping need to refer to the above two sectors. The review of literature but also of the findings of the empirical research has led to the assumption that both these parts of supply chain management, as described above, are important for the limitation of risk involved in international shipping activities. The progress of the research, i.e. the phases of this study’s development, can be identified in the Gantt Chart presented in the Appendix section. 1a. Aims and Objectives As noted above, current study focuses on the examination of the various aspects of risk involved in international shipping (especially in relation with the supply chain management). In this context, the paper’s aims and objectives can be described as follows: a) examination of the role of supply chain management in the development of commerce, b) identification and analysis of risk involved in supply chain management focusing on a specific type of commercial activity: international shipping, c) examination of the various aspects of supply chain management as part of international shipping, d) identification and explanation of the role of individuals and the state in the limitation of risk involved in international shipping. The above aims and objectives are addressed using the literature but also the empirical research. 2. Literature Review Firms are likely to differentiate their strategies in accordance with their strategic priorities. The type of business activities is also likely to affect the practices adopted by firms when specific business problems need to be resolved. In accordance with Norton (2001) the decrease of ‘lifecycle costs for customers and the development of the relationships with targeted companies’ (Kaplan et al., 2001, 177) are strategic measures indicated for most firms operating in the modern market. On the other hand, it is noted that the effectiveness of measures taken by business leaders internationally is likely to be affected by the following criteria: a) the availability of resources available, including the employees, b) the similar practices used by competitors; innovation needs to be used in all business policies, as possible, ensuring the superiority of a firm against its competitors, c) the customer preferences within a specific period, d) the market trends, i.e. the performance of similar practices in the local or the global market for a given time period and e) the support provided by the state to the suggested policies (Brooks, 2009, p17). The above issues need to be taken into consideration by leaders in the international shipping industry. The latter is likely to face a series of specific challenges: a) innovation in the specific industry is continuous, b) risks in international shipping can be many and are difficult to be avoided, c) the financial support offered by the state for the recovery of the relevant losses is usually limited and d) competition is strong; new firms are likely to enter the market on a constant basis – even if their ability to respond to customers’ needs is not always guaranteed (Handfield et al., 2997, p35). Supply chain in international shipping has specific aspects, as explained in the introductory section. In this context, the efforts of reducing risk in the relevant activities should focus on improving the quality of products/ services offered to the firms operating in this industry (Esterman et al., 2005, p12); the increase of credibility of suppliers in the particular industry would be involved with the following issues/ targets: a) limitation of time required for the completion of tasks delegating to transportation companies, b) improvement of IT systems used by transportation companies; the improvement of performance of firms operating in the international shipping industry would be then easily achieved, c) increase of the number of suppliers used by each firm (not exclusive cooperation with specific suppliers) a policy similar with the one suggested by Porter in his Five Forces model, d) search for the state’s support, where available, for the international shipping tasks that are involved with a high risk, e) increase of the shareholders’ responsibility (i.e. participation in the risk involved in international shipping activities), especially in firms that have a high level of profitability and therefore can have an increased loss in case of a failure. Different views have been developed in the literature regarding the measures available for the limitation of risk related with the supply chain. Esterman et al. (2005) emphasize on the importance of ‘strategic relationships with key suppliers (Esterman et al., 2005, p85) a practice also suggested by Ryals et al. (2007, p312); on the other hand Fierro et al. (2008) note that firms that want to survey in current market conditions need ‘to identify and manage appropriately all the activities capable of generating value throughout the complete business cycle’ (Fierro et al., 2008, p619). From a similar point of view Roy et al. (2004) note that ‘supplier involvement and alliances are routes to innovation generation’ (Roy et al., 2004, p61); in the above study, innovation is considered to be a key strategic tool for improving business activity; it can be resumed that innovation in the supply chain management sector would also help to the improvement of the performance of this part of business operations. At the next level, Klobas (1998) note that ‘appropriate theoretical models can be used by business professionals and the software industry to understand and predict the effects of widespread use of computerized communication networks, such as the Internet, for electronic commerce’ (Klobas, 1998, p185); the study of Klobas (1998) refers to an issue that is critical for firms that want to keep their competitiveness in modern market: the online presence of businesses needs to be highly developed in order for firms in all industrial sectors to remain competitive. In terms of the supply chain the above assumption can be interpreted as follows: the suppliers of firms operating in the international shipping would be presented to these firms’ customers (through appropriately customized web sites). In this way, customers could choose among international shipping firms that are based on credible and well-known firms-suppliers. From another point of view, the above assumption could lead to the thinking that the online communication and cooperation (through appropriately adjusted extranets) between the firms that operate in the international shipping industry and their suppliers would lead to the improvement of their relationship and the increase of the organizational performance. In accordance with Bolstroff (2002) the effectiveness of business plans cannot be guaranteed in advance; different factors are likely to negatively affect the performance of these plans (especially when there is not provision for the development of alternate policies in case that a specific business initiative is proved to face severe obstacles). Moreover, it is noted by Bolstroff (2002) that ‘the problem for business is that the return on investment (ROI) for technology is unpredictable and frequently impedes improved business performance for a period of time; costs go up, service goes down, and inventory gets out of control’ (Bolstroff et al., 2002, p533). The above study emphasizes on the criteria of performance of IT systems but it could be applied on any business plan, taking into consideration the fact that all business initiatives are likely to be influenced by the internal and external organizational environment – a fact also proved through the empirical research conducted for current study. Another important issue in the development of effective supply chain management policies is the effect of these policies on the internal organizational environment; reference is made especially to the workplace. The above issue is highlighted in the study of Locke et al. (2009); in the specific study it is noted that ‘private, voluntary compliance programs, promoted by global corporations and nongovernmental organizations alike, have produced only modest and uneven improvements in working conditions and labor rights in most global supply chains’ (Locke et al., 2009, p319); in accordance with the above study, the introduction of innovative supply chain management policies may be considered as valuable for the improvement of a firm’s supply chain management but this prospect may be actually non-existent; such a case exists in firms where the supply chain management plans have been developed taking into consideration all current business operations but there is no reference to the employment structure and characteristics (including the capabilities of employees and the support offered to them). The leader has to check the use of all parts of business entity in the development of its strategic plans (Northouse, 2009, p58). The above views are in accordance with the findings of the survey conducted for this study; a percentage of 56% of the participants stated that they have not been given the necessary training for handling the various problems appear in their firms’ daily operations; moreover, 68% of the participants noted that customers are not likely to understand that problems are likely to appear in most operational activities of their firm; in this context, it cannot be expected by leaders in international shipping firms that when a problem appears the situation will be explained to customers and their support would limit the negative effects of the relevant failure. 3. Research Methodology - Findings Current study is based on two different research methods: the literature and the empirical research. In the first research method, theories and views published in the literature are presented and analyzed – in accordance with their relevance to the issue under discussion. Through the second research method, i.e. the empirical research method, the identification of the practical implications of the study’s main issue is attempted (Burney et al., 2009, p4). At the next level the findings of the empirical research are combined with the existing literature in order to lead to credible assumptions on the issue under discussion. The choice of the above research methods has been based on specific criteria, using the justification provided by theorists but also taking into consideration the needs of the specific study. At the next level, the use of two different research methods offer the following advantages: a) the findings of the two research methods can be comparatively discussed covering all parts of the issue under discussion, b) issues that are not discussed in the literature can be addressed through the empirical research – and vice versa and c) the credibility of the findings of each one of the research methods can be verified through the findings of the other research methods (referring to the cases that similar assumptions are made in the two research methods). The examination of literature is a research method extensively used in academic research. The use of the specific method focuses on the examination and the analysis of the views of researchers especially in relation with a specific subject; the examination of the literature published on a particular issue offers the following advantages: a) problems and failures that have been faced by researchers in similar studies in the past can be avoided, b) methods that have been proved to be effective in the examination of a specific issue can be employed; by using research methods that have been already tested and have been proved to be effective in relation with a particular subject the risks involved in the examination and the analysis of this subject are limited (their elimination is usually not feasible), c) innovative practices would be suggested; referring to the research developed in the context of the examination of a particular problem, d) issues that have been found to be related with the research on similar problems (compared to a study’s main problem) can be taken into consideration when having to plan and develop the various phases of academic research. Of course, literature review can be also related with specific problems/ challenges: a) assumptions that have been made by researchers on similar issues may influence the researcher of a relevant study even if this study’s main issue is not closely related with the other researchers’ work; it is then possible that the research methods chosen are not appropriate for the examination and the analysis of the issue under discussion, b) risks that have not been identified by other researchers may remain hidden especially in case that a researcher does not try to make a thorough examination of the issue under examination; personal thinking is necessary when evaluating the views published in the literature in relation with a specific issue (Saunders et al., 2009, p110). The empirical research used in this study has been based on a survey conducted among the employees of five major firms in the specific industry. The survey is based on a questionnaire distributed online, through the e-mail. About 78 employees have accepted to participate in the survey (42 males and 36 females). Their views are important to understand the characteristics of risk in the international shipping industry. The questionnaire has been divided into two sections; the first section includes the participants’ demographic data (age, gender, years of professional experience, years of work in the specific organization, position in the organization); the name, the surname and the address of the participants are also included in the questionnaire’s first section. Particular attention has been paid on the protection of the participants’ personal data; the participants have been assured that their personal details will not be available to third persons (apart from the researcher); at the next level, it has been explained to the participants that they can have access to the study’s findings (if they wish) in the context of the existent ethics and principles of academic research. The second section of the questionnaire includes the questions; 10 questions with a set of suggested answers (the number of suggested answers is differentiated for each particular question). The empirical research developed for this study revealed a series of issues related with the activities of firms operating in the international shipping industry: at a first level, the safety of transactions has been proved the most common problem faced by these firms; a percentage of 43% of the participants highlighted this problem; on the other hand, the application of regional and international law does not seem to be a problem; only the 18% of the participants referred to the specific issue; however, the differences in commercial ethics and practices are expected to lead to the increase of risk involved in international shipping transactions, in accordance with the 31% of the participants. Generally, modern firms operating in the international shipping industry are not effectively prepared to face the problems related with the specific industry, as noted by the 62% of the participants. On the other hand, the development of strategic alliances has been considered to be one of the most appropriate strategies for the limitation of risk in the specific sector, about 45% of the participants focused on the importance of the specific strategic policy while a high percentage, 36% of the participants, emphasized on the importance of leadership style for the limitation of risk in the specific industry. Other issues highlighted by employees working in the specific industry are the following ones: a) the decisions of their leaders are not always effective, a view supported by 63% of the participants, b) the employees are not offered the necessary training for handling the various problems presented in the specific industry, as noted by 56% of the participants, c) the strategic management practices used in their firms would become more effective, in accordance with 44% of the participants and d) the existing legal framework related with the specific industry is not effective, 57% of the participants supported the above view. The lack of understanding of the customers is another issue highlighted by the participants; more specifically, about the 68% of the participants, a high percentage, note that customers are not likely to show understanding when a problem occurs in a specific international shipping task. And the problems in the specific industry are a common phenomenon, as noted by the 65% of the participants who answered positively when they were asked about the existence of problems in international shipping activities. 4. Conclusions – recommendations The development of successful business activities has been related with specific business practices; the limitation of risk in various industrial sectors is related with specific terms – in the context described above. The improvement of the performance of a firm’s supply chain would be based on different policies. In literature, the increase of performance of supply chain in modern market is based on different criteria. An indicative example is the study of Gehani (2000) where it is noted that ‘the streamlining of supply-chains with low intermediation is most likely to be associated with the selection of tristworthy agents, deployment of trust-building interactions, and the institutionalization of trust in the participating enterprise’ (Gehani et al., 2000, p173); however, it is noted that the resistance that would be potentially developed in the workplace could cause delays in the successful application of plans aiming to improve a firm’s supply chain. On the other hand, in the study of Erridge et al. (2002) the development of a firm’s supply chain is related with the increase of the state’s support towards the business activities in general. Moreover, it is suggested that the measures taken by firms for the improvement of the performance of their supply chain should be categorized using the following criteria: ‘map of the actors; information sharing; features of the relationship; and sharing of risks and rewards’ (Erridge et al., 2002, p52). It is assumed that a firm would choose the sectors of supply chain on which it would intervene, taking into consideration its needs, its market position and the similar practices of its competitors. One of the most important findings of the specific study has been the fact that international shipping is an industrial sector that is related with different aspects of risk; the survival of the firms operating in the specific sector is depended on their ability to identify and control these risks. Both the literature and the empirical research developed for this study have led to the following assumption: in the international shipping industry the limitation of risk is difficult to be achieved while the support of the state to the potential damage is quite limited. The development of appropriate leadership decisions and the use of strategic alliances have been suggested as the most indicative practices for the limitation of risk in the specific industry. However, it seems that still there are issues that have not been appropriately addressed – and that would be carefully examined by business leaders in the particular sector: a) the personal and professional development of employees that work in the specific sector, b) the thorough control of all business activities – development of mechanisms of control at all levels of business operations, c) increase of the state’s support – seek for the support of governmental and non-governmental organizations that would help to the achievement of the specific target, d) increase of innovation in all phases of these firms’ activities and e) increase of effectiveness of strategic plans used in daily business operations – strategic plans should not focus on the achievement of theoretical targets but rather to the support of specific parts of business operations. References Bolstroff, P., 2002. Supply Chain: A Framework for Expanding the Human Resource Development Professional’s Role in Technology Implementations. Advances in Developing Human Resources, Vol. 4, No. 4, pp. 533-549 Brooks, I., 2009. Organisational Behaviour: Individuals, Groups and Organisation. Pearson Education Burney, D., White, T., 2009. Research Methods. Cengage Learning Erridge, A., Mcllroy, J., 2002. Public Procurement and Supply Management Strategies. Public Policy and Administration, Vol. 17, No. 1, pp. 52-71 Esterman, M., Ishii, K., 2005. The Development of Project Risk Metrics for Robust Concurrent Product Development (CPD) across the Supply Chain. Concurrent Engineering, Vol. 13, No. 2, pp. 85-94 Fierro, J., Polo, Y., 2008. Long-term Orientation of the Supply Function in the SME Context - Reasons, Determining Factors and Implications. International Small Business Journal, Vol. 26, No. 5, 619-646 Gehani, R., 2000. 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Which are the main problems of international shipping? a. Safety of transactions b. Application of law c. Differences in commercial ethics and practices d. Lack of sufficient resources 2. Are organizations worldwide appropriately prepared to face the problems appear in international shipping? Yes No 3. Which is the method used by your firm to reduce risks related with international shipping? a. Continuous development of systems b. Cooperation with other firms – business alliances c. Innovative leadership practices d. Support of employees 4. Are you likely to face difficulties in facing the problems appear in international shipping activities? Yes No 5. Which is the support offered by the state in your firm? a. Potential recovery – up to a level – of the damages caused because of unexpected problems b. Cover of the expenses related with the employees’ training c. Appropriate legislative texts d. Financial support of specific initiatives – especially in the business start-up 6. Are the customers likely to show understanding when problems appear in the development of a specific international shipping task? Yes No 7. Do you consider that existing legislative framework related with international shipping is effective? Yes No 8. Which would be the priority for firms that operate in the specific industry? a. Control of transactions b. Appropriate strategic management c. Alteration of existing HR management practices d. Increase of compliance with existing laws 9. Are you appropriately trained to face all problems that are expected to appear in your firm’s daily operations? Yes No 10. Is the leadership style crucial for facing problems related with international shipping? Yes No. B. Gantt Chart Duration/ Event 1 week 2 weeks 3 weeks 4 weeks 5 weeks 6 weeks 7 weeks 8 weeks 9 weeks 10 weeks Development of research plan Identification of study’s main issues Review of literature Review of findings of empirical research Critical analysis of literature and empirical research Conclusion – Recommendation Sections Addition of material – overview of the study Read More