Managing supply chain knowledge-based linkages for improving operational performance

Abstract

Purpose – This paper aims to explore the role of internal and external knowledge-based linkages across the supply chain in achieving better operational performance. It investigates how knowledge is accumulated, shared, and applied to create organization-specific knowledge resources that increase and sustain the organization’s competitive advantage. Design/methodology/approach – This paper uses a single case study with multiple, embedded units of analysis, and the social network analysis (SNA) to demonstrate the impact of internal and external knowledge-based linkages across multiple tiers in the supply chain on the organizational operational performance. The focal company of the case study is an Italian manufacturer supplying rubber components to European automotive enterprises. Findings – With the aid of the SNA, the internal knowledge-based linkages can be mapped and visualized. We found that the most central nodes having the most connections with other nodes in the linkages are the most crucial members in terms of knowledge exploration and exploitation within the organization. We also revealed that the effective management of external knowledge-based linkages, such as buyer company, competitors, university, suppliers, and subcontractors, can help improve the operational performance. Research limitations/implications – First, our hypothesis was tested on a single case. The analysis of multiple case studies using SNA would provide a deeper understanding of the relationship between the knowledge-based linkages at all levels of the supply chain and the integration of knowledge. Second, the static nature of knowledge flows was studied in this research. Future research could also consider ongoing monitoring of dynamic linkages and the dynamic characteristic of knowledge flows. Originality/value – To the best of our knowledge, the phrase ‘knowledge-based linkages’ has not been used in the literature and there is lack of investigation on the relationship between the management of internal and external knowledge-based linkages and the operational performance. To bridge the knowledge gap, this paper will show the importance of understanding the composition and characteristics of knowledge-based linkages and their knowledge nodes. In addition, this paper will show that effective management of knowledge-based linkages leads to the creation of new knowledge and improves organizations’ operational performance.

Keywords:

• supply chain management
• knowledge-based linkages
• operational performance
• social network analysis
• case study

Notes

1 There are two main strategies that can be adopted when designing an SNA questionnaire: a recognition model, which provides respondents with a list of names, and free call, where respondents are required to nominate actors.

2 For reasons of anonymity, all nodes are referred to by randomly chosen letters of the alphabet.

3 The Six Sigma approach involves different levels of expertise: Yellow Belt is the lowest level and the progression goes through Green Belt to Black Belt and Master Black Belt – the highest level of Six Sigma expertise.

Additional information

Notes on contributors

Marianna Marra

About the authors

Marianna Marra is a Ph.D. student in the Operations and Information Management Group at Aston Business School, Birmingham, UK. Her research interests include knowledge management, innovation management, and network analysis. She has published in Expert Systems with Applications and International Journal of Intelligent Systems.

William Ho is a senior lecturer in the Department of Management and Marketing at the University of Melbourne, Australia. His research interests include operations management, supply chain management, and operations research. He has published in various international journals, such as Computers and Operations Research, Energy, Engineering Applications of Artificial Intelligence, European Journal of Operational Research, International Journal of Production Economics, International Journal of Production Research, Journal of the Operational Research Society, Supply Chain Management: An International Journal, and others.

Ka Man Lee is an assistant professor in the Department of Industrial and Systems Engineering, The Hong Kong Polytechnic University, Hong Kong. She was awarded Bronze Award of 16th China National Invention Exhibition Award in 2006 and Outstanding Professional Service and Innovation Award, The Hong Kong Polytechnic University in 2006. She has authored or co-authored more than 100 journal and conference papers. Her research areas include logistics information management, manufacturing information systems, product development, and data mining techniques.