December 08, 2023
Recently, the paper "Does Supply Chain Concentration Improve Sustainability Performance: The Role of Operational Slack and Information Transparency" by Dr. Lujie Chen, Senior Associate Professor in the Department of Intelligent Operations Management and Marketing at the International Business School of Suzhou (IBSS), was published in the International Journal of Operations and Production Management (IJOPM), recognized as a premier journal in the field of operations and supply chain management. IJOPM stands as the leading journal in this field. This innovative study provides fresh insights and directions for the industry by examining the relationship between supply chain concentration (SCC) and sustainability performance in the manufacturing sector, shedding light on the moderating influence of operational slack and information transparency.
The study gathered data from 3,581 Chinese manufacturing firms listed on the A-share market of China's Shanghai and Shenzhen stock exchanges between 2006 and 2020, subjecting the data to empirical analysis using panel regression models. It was found that the Supply Chain Concentration (SCC) of manufacturing firms has a negative impact on sustainability performance. However, when the SCC surpasses a certain threshold, it begins to positively influence sustainability performance, indicating a U-shaped relationship.
In addition, this study revealed that excessive operational slack leads to inefficiency, whereas inadequate slack limits decision-making capabilities. The study also highlighted the moderating role of information transparency, showing that firms can enhance sustainability performance by bolstering their resource utilization capabilities. Sustainability performance becomes more pronounced in contexts where supply chain information flows are transparent, especially within highly centralized supply chains.
Dr. Lujie Chen highlighted the precision in defining and measuring sustainability performance by utilizing data from various databases such as CSMAR, CNRDS, Running Spirit, and Bloomberg. These were employed to assess the performance of different research subjects concerning sustainability performance.
Discussing the relevance of this research result, Dr. Lujie Chen emphasized the importance of supply chain management in enhancing sustainable development performance. The main initiatives are broadly evident in three key areas: fostering collaboration among enterprises and their upstream and downstream suppliers, enhancing supply chain transparency, and bolstering communication and training.
"The practical implications of this research primarily target governments, urging them to consider the entire spectrum of supply chains while addressing sustainability concerns. Especially within manufacturing clusters, governments should reinforce regulations on both upstream and downstream companies through educational initiatives and training programs, advocating for regular training sessions akin to those implemented by corporations like Walmart, Sam's, and Hema. Effective communication and training can aid companies in better aligning with ESG (Environmental, Social, and Governance) standards, ensuring cohesive efforts among upstream and downstream entities towards achieving sustainability objectives."
Finally, Dr. Lujie Chen believes that the future focus should be on digital supply. She intends to continue concentrating on China's manufacturing industry's transformation path and exploring the extensive impact of digital supply on business evolution and the realization of the Sustainable Development Goals (SDGs).
Dr. Lujie Chen is a Senior Associate Professor at Xijiao-Liverpool University (XJTLU) and holds the position of Honorary Associate Professor and PhD Supervisor at the School of Management, University of Liverpool. Her research interests encompass corporate ESG investment and strategy analysis, sustainable supply chains, supply chain finance, and business operations management.
As a Fellow of the Higher Education Academy of the United Kingdom, Dr. Chen has contributed over 60 papers to top-tier and mainstream international journals in the past five years. She has overseen a National Natural Science Foundation of China (NSFC) project and led three research projects within the university. In addition to teaching undergraduate, master's, and various executive programs, she predominantly coordinates the PhD program in the Department of Intelligent Operations Management and Marketing at IBSS. Dr. Lujie Chen has been invited as the Corresponding Reviewer for the National Natural Science Foundation of China (NSFC), served as a reviewer for more than 20 SCI/SSCI journals, and holds the position of Associate Editor at the International Journal of Operations and Production Management (ABS 4), a leading international journal.
Her portfolio of over sixty publications in top international journals includes: Journal of Operations Management (UTD24, FT50), Harvard Business Review (FT50), International Journal of Operations and Production Management (ABS 4), European Journal of Operational Research (ABS 4), British Journal of Management (ABS 4), International Journal of Production Economics, Journal of Business Research, Industrial Marketing Management (A*), among others.
The International Journal of Operations and Production Management (IJOPM) is a prominent peer-reviewed academic journal within the field of Operations and Supply Chain Management. Classified as an ABS Level 4 journal, it achieved an impact factor of 9.36 in 2023. The journal's scope encompasses various facets of the field, aiming to publish cutting-edge, innovative research that significantly advances operations and supply chain management in both theory and practice
About International Business School Suzhou (IBSS)
Over the past year, scholars from IBSS have contributed to several papers published in leading international journals, including UTD-24, FT-50, and ABS 4/4* star levels. Journals such as Management Science, Journal of Finance, Journal of Operations Management, Information Systems Research, Production and Operations Management, Journal of Financial and Quantitative Analysis, Research Policy, Journal of Information System Research, Journal of World Business, Journal of Travel Research, Journal of Retailing, and Human Resource Management have featured IBSS publications. Moreover, IBSS has secured numerous important scientific research projects, such as the National Natural Science Foundation of China and the Humanities and Social Sciences Foundation of the Ministry of Education. These accomplishments signify IBSS's trajectory towards establishing itself as a research-oriented, first-class business school.
December 08, 2023