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    ϰ͘ ,Žǁ ĚŝĚƚŚĞLJ ũŽŝŶ ƚŚĞ ƉƌŽũĞĐƚ͍ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ϱ͘ tŚĂƚ ĂƌĞ ƚŚĞ ŽƉƉŽƌƚƵŶŝƚŝĞƐ ĂŶĚ ĚŝƐĂĚǀĂŶƚĂŐĞƐ ŽĨ ƚŚŝƐ ƉĂƌƚŶĞƌƐŚŝƉͬƵŶŝŽŶͬĐŽŽƉĞƌĂƚŝŽŶ͍ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ϲ͘ WůĞĂƐĞ ĚĞƐĐƌŝďĞ ǁŚŝĐŚ ŽŶĞ ŽĨ ƚŚĞ ƚŚƌĞĞ ƉĂƌƚŝĐŝƉĂŶƚƐ ŝŶ ƚŚĞ ƉƌŽũĞĐƚ ŝƐ ŝŶ ĐŚĂƌŐĞ ŽĨ ƚŚĞ ĚĂLJͲƚŽͲĚĂLJ ŵĂŶĂŐĞŵĞŶƚ ŽĨ ƚŚĞ ůŽŐŝƐƚŝĐƐ ĐĞŶƚĞƌ͍ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ϳ͘ Ɛ ͲͲͲͲ ;ƉŽƐŝƚŝŽŶ ŽĨ ƉĞƌƐŽŶ ďĞŝŶŐ ŝŶƚĞƌǀŝĞǁĞĚ ŝŶ ƌĞůĂƚŝŽŶ ƚŽ Ϳ͕ͲͲͲͲ ǁŚĂƚ ĚŽ LJŽƵ ƚŚŝŶŬ ƚŚĞ ŐŽĂů ŽĨ ƐŚŽƵůĚ ďĞ͍ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
  • 585.
    ŽŵƉĂŶŝĞƐ ŽƉĞƌĂƚĞ ƐƵƉƉůLJĐŚĂŝŶƐ͖ ƐƵƉƉůLJ ĐŚĂŝŶƐ ŵŽǀĞ ŐŽŽĚƐ ĂŶĚ ƐĞƌǀŝĐĞƐ ĨƌŽŵ ƉŽŝŶƚͲƚŽͲ ƉŽŝŶƚ͕ ƐŽ ŝŶ ĞĨĨĞĐƚ ͞ƐƵƉƉůLJ ĐŚĂŝŶƐ͟ ĂƌĞ ƚŚĞ ŶĞǁ ͞ĐŽŵƉĂŶŝĞƐ͘͟ /Ŷ ƚĞƌŵƐ ŽĨ ůŽŐŝƐƚŝĐƐ ĂŶĚ ƐƵƉƉůLJ ĐŚĂŝŶ ŵĂŶĂŐĞŵĞŶƚ͕ ǁĞ ĐĂŶ ƚĂůŬ ĂďŽƵƚ ƐƵƉƉůLJ ĐŚĂŝŶƐͬĚĞŵĂŶĚ ĐŚĂŝŶƐ ĂƐ ĐƵƐƚŽŵĞƌƐ Žƌ ĐůŝĞŶƚƐ ƚŚĂƚ ƵƐĞ ƚŚĞ ƐĞƌǀŝĐĞƐ LJŽƵ ŽĨĨĞƌ Ăƚ ƚŚĞ ůŽŐŝƐƚŝĐƐ ĐĞŶƚĞƌ͘ ĂƐĞĚ ŽŶ ƚŚŝƐ ĐůĂƌŝĨŝĐĂƚŝŽŶ͖ ϭ͘ ,Žǁ ĚŽ LJŽƵ ƐĞĂƌĐŚ LJŽƵƌ ͞ĐƵƐƚŽŵĞƌƐ͍͟ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ Ϯ͘ ,Žǁ ĚŽ LJŽƵ ŶĞŐŽƚŝĂƚĞ ǁŝƚŚ Ă ƉŽƚĞŶƚŝĂů ĐƵƐƚŽŵĞƌ ƚŽ ďĞĐŽŵĞ Ă ƵƐĞƌ ŽĨ ͍ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ϯ͘ tŚĂƚ ĂƌĞ ƚŚĞ ŶĞŐŽƚŝĂƚŝŽŶ ƚĞƌŵƐ ĚƵƌŝŶŐ ƚŚŝƐ ŶĞŐŽƚŝĂƚŝŽŶ ƉƌŽĐĞƐƐ͍ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ϰ͘ tŚŽ ĂƌĞ ƚŚŽƐĞ ŝŶǀŽůǀĞĚ ŝŶ ƚŚŝƐ ƉƌŽĐĞƐƐ͍ ;ƉĞƌƐŽŶƐ ĂŶĚ ͬŽƌ ĐŽŵƉĂŶŝĞƐͿ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ^ĞĐƚŝŽŶ ͗ ƵƐƚŽŵĞƌƐ ĂŶĚ ŝŶƚĞƌĂĐƚŝŽŶ
  • 586.
    ϱ͘ ƚ ƉƌĞƐĞŶƚ͕ŚŽǁ ŵĂŶLJ ĐƵƐƚŽŵĞƌƐ ƵƐĞ ƚŚĞ ƐĞƌǀŝĐĞƐ ŽĨ ƚŚĞ ůŽŐŝƐƚŝĐƐ ĐĞŶƚĞƌ͍ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ϲ͘ ,Žǁ ŵĂŶLJ ĐƵƐƚŽŵĞƌƐ ĚŽ LJŽƵ ĞdžƉĞĐƚ ƚŚĞ ůŽŐŝƐƚŝĐƐ ĐĞŶƚĞƌ ƚŽ ƐĞƌǀĞ ŝŶ ƚŚĞ ĨƵƚƵƌĞ ;ǁŚĞŶ Ăƚ ĨƵůů ĐĂƉĂĐŝƚLJͿ͍ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ϳ͘ Ž LJŽƵ ŚĂǀĞ ĐĂƐĞƐ ŽĨ ĐŽŽƉĞƌĂƚŝŽŶ ;Žƌ ŝŶƚĞŶĚĞĚ ĐŽŽƉĞƌĂƚŝŽŶ ƚŚĂƚ LJŽƵ ŬŶŽǁ ŽĨͿ ďĞƚǁĞĞŶ ĐƵƐƚŽŵĞƌƐ ŽĨ Ăƚ ͍ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ϭ͘ tŚĂƚ ƌĂŶŐĞͬƚLJƉĞ ŽĨ ƐĞƌǀŝĐĞƐ ĚŽ LJŽƵ ŽĨĨĞƌ Ăƚ ƚŚĞ ĂƚƌŝŶĞŚŽůŵƐ ůŽŐŝƐƚŝĐƐ ĐĞŶƚĞƌ͍ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ Ϯ͘ tŚĂƚ ƚLJƉĞ ŽĨ ĞĨĨŽƌƚƐ ĂƌĞ LJŽƵ ŵĂŬŝŶŐ ƚŽ ŝŶĐƌĞĂƐĞ ƚŚĞ ƐĐŽƉĞ ŽĨ ƐĞƌǀŝĐĞƐ ƚŚĂƚ ĂƌĞ ŽĨĨĞƌĞĚ ďLJ ͍ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ϯ͘ Žƌ ƚŚĞ ĚŝĨĨĞƌĞŶƚ ;ŵĂŝŶͿ ƐĞƌǀŝĐĞƐͬĨĂĐŝůŝƚŝĞƐ LJŽƵ ŽĨĨĞƌ Ăƚ ͕ ŚŽǁ ŵĂŶLJ ĐƵƐƚŽŵĞƌƐ ĐĂŶ ƐĞƌǀĞ Ăƚ ƚŚĞ ƐĂŵĞ ƚŝŵĞ͕ Ăƚ ĨƵůů ĐĂƉĂĐŝƚLJ͍ ^ĞĐƚŝŽŶ ͗ ^ĞƌǀŝĐĞ ƉƌŽǀŝƐŝŽŶ Ăƚ
  • 587.
    ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ϰ͘ ,Žǁ ĚŽLJŽƵ ŽďƚĂŝŶ ĨĞĞĚďĂĐŬ ĨƌŽŵ LJŽƵƌ ĐƵƐƚŽŵĞƌƐ ŽŶ ƚŚĞ ƐĞƌǀŝĐĞƐͬĨĂĐŝůŝƚŝĞƐ ƉƌŽǀŝĚĞĚ ďLJ ͍ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ϱ͘ ,Žǁ ĚŽ LJŽƵ ƵƐĞ ƚŚŝƐ ĨĞĞĚďĂĐŬ͍ ;ŝĨ ƚŚĞLJ ŚĂǀĞ ĂůƌĞĂĚLJ ĐŽůůĞĐƚĞĚ ŝƚͿ KZ ,Žǁ ĚŽ LJŽƵ ŝŶƚĞŶĚ ƚŽ ƵƐĞ ƚŚŝƐ ĨĞĞĚďĂĐŬ͍ ;/Ĩ ƚŚĞLJ ŚĂǀĞ ŶŽƚ ĐŽůůĞĐƚĞĚ ĂŶLJ ĨĞĞĚďĂĐŬ LJĞƚͿ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ϲ͘ tŚĂƚ ŶĞǁ ǁĂLJͬŵĞƚŚŽĚ ŽĨ ĚŽŝŶŐ ƚŚŝŶŐƐ ŚĂǀĞ ͞LJŽƵ͟ ;ŝ͘Ğ͘ Ϳ ŝŶƚƌŽĚƵĐĞĚ ŝŶ ƚĞƌŵƐ ŽĨ ƐĞƌǀŝĐĞƐ ƚŽ ĐƵƐƚŽŵĞƌƐ͍ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ϳ͘ tŽƵůĚ ƚŚĞ ƵƐĞ ŽĨ Ă ĨĂĐŝůŝƚLJͬƐĞƌǀŝĐĞ Ăƚ ƚŚĞ ĐĞŶƚĞƌ ďLJ ŽŶĞ ĐƵƐƚŽŵĞƌ ƉƌĞǀĞŶƚ Žƌ ĂĨĨĞĐƚ ;ŝŶ ĂŶLJ ǁĂLJͿ ƚŚĞ ƵƐĞ ŽĨ ƚŚĂƚ ĨĂĐŝůŝƚLJ ďLJ ĂŶŽƚŚĞƌ ĐƵƐƚŽŵĞƌ͍ ;͘Ő͘ ƚŚĞ ƌĂŝůǁĂLJ ƚƌĂĐŬƐͿ͘ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ ͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺͺ
  • 588.
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    Paper 1 Emerging logicsof competition: Paradigm shift, fantasy or reality check? Aseem Kinra Imoh Antai. Competitiveness Review: An International Business Journal incorporating Journal of Global Competitiveness Vol. 20, Issue: 2, pp.94 – 110 (2010). I
  • 601.
    Emerging logics ofcompetition: paradigm shift, fantasy, or reality check? Aseem Kinra Department of Operations Management, Copenhagen Business School, Frederiksberg, Denmark, and Imoh Antai Department of Supply Chain Management and Corporate Geography, Hanken School of Economics, Helsinki, Finland Abstract Purpose – The purpose of this paper is to elicit the subtle but progressive shift in organizational/ institutional interaction with its rivals within a competitive framework, and thereby discusses and analyses paradigm shifts in competition and competitiveness. The paper argues that interorganizational networks and the recent concept of supply chain management may have induced a change in how competitiveness is viewed at the national, industry, and firm levels of interaction. Design/methodology/approach – The paper conceptualizes extant literature into distinct themes of (organizational and institutional) analysis – micro, macro, and meso – and based on this review the paper seeks to identify emerging logics and shifts within mainstream competitiveness literature over the last decade. Findings – The paper suggests that the micro-macro theme of competition and competitiveness remains dominant in mainstream literature. Results from the analysis also support the notion of emergent logics of competition and competitiveness, which could then imply that a paradigm shift may well have begun within the area of competition and competitiveness. Research limitations/implications – The limited findings point towards more detailed forays into competition of interorganizational forms such as networks and supply chains, before a paradigm shift may be claimed. Practical implications – The paper serves to trigger the consciousness of stakeholders to think realistically with regards to claims that competition and competitiveness are carried out on the network level, e.g. a supply chain vs supply chain playing field. Originality/value – While networks and supply chains have generally been inferred as new frontiers for contemporary competition in different functionally-oriented literature domains, analysis and performance of such emergent logics is yet to be shown. The classification of different competition logics put forth in this paper aid in systemizing the competitiveness/competition rhetoric. Keywords Competitive strategy, Networking, Supply chain management Paper type Literature review 1. Introduction Globalization implies economic interdependence and involves the integration and connectivity of business, political, and cultural affairs. Recent business arena is dictated by multiple actors whose interests are not limited to a single factor or actor on the stage. The current issue and full text archive of this journal is available at www.emeraldinsight.com/1059-5422.htm The authors would like to thank Martin Fougere, Herbert Kotzab, and Karen Spens for some helpful comments on this paper. Thanks are also due to the CR guest editors and reviewers. CR 20,2 94 Competitiveness Review: An International Business Journal Vol. 20 No. 2, 2010 pp. 94-110 q Emerald Group Publishing Limited 1059-5422 DOI 10.1108/10595421011029820
  • 602.
    The nation stateis becoming more and more obsolete in a global economy that is dominated by large transnational corporations (Toffler, 1980). Similarly, Handfield and Nichols (1999) state that organizations now believe it is no longer sufficient to manage their own organizations and that they must also be involved in the management of the network of all upstream firms that provide inputs (directly or indirectly), as well as the network of downstream firms. The focus on interorganizational settings and relationships is more pronounced than ever. Furthermore, because these organizations and relationships take place in a world where economic boundaries are not definite, recognizing extended environments is as important as identifying the extended organizations. This implies that the competitiveness of firms and nations cannot be determined by viewing these in isolation and that there is a need to update institutional and organizational levels at which competitiveness should be evaluated. As Krugman (1994) puts it, competitiveness, as a concept in itself, is meaningless and its debate a “dangerous obsession,” unless of course, its criteria are constantly updated and its nomenclature redefined to capture its platform/level and dynamism (Waheeduzzaman and Ryans, 1996). Or as Garelli (2003, p. 30) phrases it: [. . .] nobody feels anymore that he owns the definite model of competitiveness, for a nation or a company. The message is that any policy, any business model needs to be constantly revised, because the environment is more volatile and unpredictable than ever. Consequently, some (Schuetz et al., 1999; Fawcett and Clinton, 1997[1]; Monczka and Morgan, 1997; Christopher, 1998; Vokurka et al., 2002) believe that companies will no longer compete against companies, but rather supply chains will compete against supply chains. Quite possibly, complex interorganizational structures based on dynamic networks, such as supply chains, form a plausible level/platform and set the environment as a whole for competitiveness to be generated. In other words, the proposition is that it is supply chains that compete against each other (Andreassen, 2005), not individual firms or nations. And it is under this premise that the competitiveness of subject units like the nation, the industry, and the firm has then to be viewed. Furthermore, given that such networks (e.g. supply chains) compete with each other in the present era, individual national and firm competitiveness are subsets of a concept that may be referred to as “Supply chain competitiveness” (Cavinato, 1991, 1992; Bagchi, 2001; Bhatnagar and Sohal, 2005). This echoes an important paradigm shift in the construct of competitiveness, research on which has historically been divided on the macro vs micro theme (Chika´n, 2008a, b). At the same time, popular logics such as coopetition and supply chain vs supply chain, have received varying levels of attention and only mixed reaction within the different academic domains that cover competition, as authors have also been quick to point out the pitfalls of embracing popular rhetoric based just on hype (Rice and Hoppe, 2001). This means that such emerging logics need to be put in light of other commonly held explanations of competition and competitiveness before it may be distinctly described as an agent of change or as a new explanation to the phenomenon. Therefore, the purpose of this paper is to investigate the notions of competition and competitiveness in light of a paradigm shift therein. It thus contributes to the extant literature on emergent paradigms of competition and competitiveness, and more specifically to this special issue in Competitiveness Review: An International Business Emerging logics of competition 95
  • 603.
    Journal (CR), byanalysing how new paradigms are being incorporated in the domain of the present and other closely related journals. The paper seeks to: . discuss paradigms and paradigm shifts within the basic notions of T.S. Kuhn; . identify emergent themes of competition and competitiveness within the broader literature; and . investigate the incidence of a paradigm shift by analysing the content of a sub-set of the literature. The paper starts out by discussing the concept of paradigms and paradigm shifts. This is done in order to build a conceptual understanding of what paradigms imply, how these may change over time, and how shifts between these may be captured. Thereafter, a consideration of the existing and dominant logics, as well as emerging logics of competition and competitiveness is undertaken. Subsequently, an analysis is carried out by analysing relevant text in the area. Finally, the paper presents findings related to the identification of emergent themes of competition and competitiveness and concludes on the likelihood of a paradigm shift. 2. Methodological considerations 2.1 Paradigms and paradigm shifts In his seminal work on The Structure of Scientific Revolutions, Kuhn (1962) presents the argument that the development of scientific theory is not evolutionary, but rather is a series of peaceful interludes punctuated by intellectually violent revolutions, and in those revolutions one conceptual worldview is replaced by another. While this statement may tend to summarize the basic concept of scientific revolutions, as proposed by Thomas Kuhn, it also runs the risk of over-simplifying a very complex literature. Thus, a brief overview of the basic concepts that contributed to making this work revolutionary is mentioned. Kuhn (1962, p. x) is especially notable for the development and specialized use of the term “paradigm shift” where a paradigm is defined as: [. . .] universally recognized scientific achievements that for a time provide model problems and solutions to a community of practitioners. Because of the idea that different scientists hold different world view lenses through which they understand and even attempt to solve problems within that world view, Kuhn’s (1962) description of scientists as being not necessarily objective, free-thinking sceptics attempts to convey this general idea that scientists accept and live within certain given paradigms and consequently are able to understand and explain phenomena within this paradigm. However, when scientists within a given paradigm are no longer able to explain and solve problems within that paradigm, Kuhn (1962) purports that a crisis stage has been reached after which the emergence of a new paradigm arises, and when this takes place a paradigm shift is said to have occurred. In this sense, the term paradigm is used as a metaphor for a problem solver, which then goes on to beg the question that if problems are still solvable using a declining paradigm, can a paradigm shift still be said to have taken place? By virtue of its content, Kuhn (1962) has provoked a wide range of criticism as well as responses whereby, e.g. the different meanings advanced for the term (paradigm) undermines the credibility of the argument, as the term “paradigm” forms the basis upon which the CR 20,2 96
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    argument for aparadigm shift in science is developed (Masterman, 1970). For example, although Masterman (1970) agrees with the argument developed by Kuhn (1962), concern is expressed over the ambiguity of the meaning of paradigm, the central construct used in his argument. While the research described in this paper sought to understand paradigm shifts in accordance with the definition of paradigm provided here, the definition represents one of many meanings of the term in Kuhn (1962). Thus, there is still much confusion as to which meaning of the term paradigm is actually utilized by The Structure of Scientific Revolutions. Therefore, the guiding assumption to the use of the definition in this paper lies in the fact that current or ruling practices, for example of competitiveness, are embedded within certain ontological frameworks and are consequently studied as such. Furthermore, there seems to be a complex interplay between the scientific achievements of the old and that of the new paradigms where, according to Kuhn, the old paradigm will have to give way to the new. This complex interaction is also adequately captured by Kordig (1973) in his criticism of Kuhn’s (1962) implication over the commensurability of transiting paradigms, of which it offers little. Kordig (1973) maintains that there should be common grounds for the comparison of interparadigmatic principles or shared standards, which also permits for the proper debating of opposing theories. Hence, the idea of a paradigm shift should not be accepted because there is a lack of continuity between the transiting paradigms, but because they constitute a fundamental change in meaning from one shift to the other. Finally, Kuhn, through his writings, has implied that paradigms are unique. Since paradigms are usually incommensurable, the phenomena explained by one paradigm would usually not be explained by another paradigm. This in some way creates a sense of advancement in moving from one paradigm to another. 2.2 Design and approach In light of the previous discussion, the approach considered here first involved further problematizing the level of analysis issue in extant competitiveness research. Kinra and Kotzab (2005) present a useful distinction (macro, micro, and meso) in order to explore emergent forms of competition. According to this distinction, macro implies competition at the national level, micro implies competition at the firm level, while meso implies competition at the network level. It was therefore envisaged that such a distinction would provide visibility to newer “logics” on competition and would aid in the categorization between old and new, or extant and emergent paradigms. Next, based on this distinction and categorization, the approach involved developing search themes for further identification and analysis of written text, from a representative sub-set of journals that have an interdisciplinary focus, using an approach that may be likened to qualitative content analysis. Qualitative content analysis involves the identification of underlying, pre-defined themes of interest via a literature search of material (Bryman and Bell, 2007). Mayring (2000) defines the acquisitions of these themes in terms of an inductive derivation from the body of content to be analysed. While Bryman and Bell (2007) refer to smaller units of analyses such as paragraphs, sentences, words, etc. entire articles can also be used as units of analyses (Larson and Poist, 2004; Miyazaki et al., 1999) as also carried out in Spens and Kovacs (2006). Assessing articles for identification of themes (micro, macro, and meso) then essentially entails the analysis of written material, as the language, terms, Emerging logics of competition 97
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    emphasis, significant actors,dispositions (Bryman and Bell, 2007) through which members of a given paradigm describe the world view from which they work, can also be said to be unique. This is because through language, via written text, members of a community can encode and carry out communications that reveal a common perspective (Barley et al., 1988). It is therefore only “by looking case by case at the operationalization of the notion that one can assess how performance is conceptualized in a given case” (Corvellec, 2003, p. 117). In this sense, we sought to determine if a paradigm shift, with respect to competition and competitiveness, has indeed occurred by exploring possible fundamental changes that may have taken place in the way problems of competition and competitiveness are perceived and solved “[. . .] within a community of practitioners” (in reference to Kuhn’s stated definition). Any consideration of a paradigm shift in competitiveness must therefore be informed by an understanding of the changes in meaning that has taken place from one way of solving problems to another. From this perspective, the use of the Kuhnian argument for paradigm shift analysis is useful because it emphasizes that worldviews are rarely stationary, and as they change, solutions within these worldviews change as well. 3. Competition, competitiveness, and the traditional rhetoric Competition and competitiveness are important concepts in the study of economic theory and business as they are vital in meeting consumers’ growing expectations, pushing innovation, and reducing cost, among other things. In order to achieve these and gain economic rents for it, organizations continuously have to alter the way they carry on business. Not withstanding the seemingly cohesive nature of the terms, they tend to differ widely in terms of discipline involved, content under consideration and even with respect to the theoretical conceptions and areas of application. Barney (1986) distinguishes among three types of competition: industrial organization, Chamberlinian, and Schumpeterian competitions. Industrial organization competition is conceptualized and organized with the central focus revolving around the structure of the industry. Originally developed by Mason (1939) and Bain (1956, 1968), economic rents in this type of competition are determined by the structure of the industry within which a firm competes. The size of the firm, the total number of firms, barriers to entry, and exit and extensive product differentiation are some of the structures that characterize this type of competition and the relationship between these structures of an industry and the performance of a firm has come to be known as the structure- conduct-performance concept (Porter, 1981). Chamberlinian competition seeks to tie the unique assets and capabilities possessed by a firm to the performance of that firm just as industrial organization competition seeks to do this via the structure of the industry (Barney, 1986). Since firms compete against other firms, variations in amount and use of resources may make the difference between being able to implement strategies or not, even though these resources and capabilities may be said to overlap between firms. Thus, firm heterogeneity in terms of resources and capabilities suggests a competitive advantage and the promise of economic rents. Whereas the third type, Schumpeterian competition, defines a dynamic process where firms strive to survive under an evolving set of rules that constantly produce winners and losers mainly as a result of asymmetries in technological innovation. The Schumpeterian logic focuses on major revolutionary shifts in the CR 20,2 98
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    technology as wellas the product markets. As such, it requires a capability to deal with uncertainty, foresight, predictability, and anticipation to secure economic rents. Accordingly, competitiveness studies have traditionally varied in form and content, depending on the lens applied (Kinra and Kotzab, 2005). Competitiveness from an economics perspective (Fagerberg, 1988; Fajnzylber, 1988; Tyson, 1988, 1992; Krugman, 1996) implies overall resource productivity, efficiency, trade surpluses, and factors like gross domestic product per capita that try to reflect at the country level. Such a notion has macro-orientation. Whereas, the resource-based theory and management of competitive advantage explains how a firm can improve its competitive advantage by identifying its core resources and build only on the top few through investigating its strengths and weaknesses relative to its competitors (Grant, 1991). These capabilities are often termed as non-duplicable capabilities and “can be manifested in such typical business activities as order fulfilment, new product development, and service delivery” (Day, 1994, p. 38). Such a notion has micro-orientation. Similarly, competitiveness from an organizational strategy perspective differs on how theorists have viewed competition at a firm level. For example, industrial organization theory assumes a static view on competition and emphasizes on industry structure and the generic firm strategies of overall cost leadership, product differentiation and focus that are characteristic of Porter (1980, 1985). Whereas, a resource-based (Wernerfelt, 1984) view assumes a dynamic view on competition and lays emphasis on resources, sustainable competitive advantages (Barney, 1991; Grant, 1991; Day and Wensley, 1988), and core competences (Prahalad and Hamel, 1990; De Man, 1994). Since these theoretical perspectives generally represent either the country or the individual firm as units of analysis, it is worth noting here that both these perspectives presume distinctness and homogeneity in terms of organization and control of the units. 4. Emerging logics of competition and competitiveness Porter’s, (1990), The Competitive Advantage of Nations, which constantly addresses that “companies, not nations are on the front line of competition” is instrumental in integrating the macro and micro perspectives (Chika´n, 2008a, b), and thereby promoting new logics in the competitiveness debate. Porter’s single diamond of competitive advantage first set out in Porter (1990) argues that: a firm’s competitive advantages are essentially a function of its domestic environment – whether or not the attributes of this environment are owned by the firm or available to it. By taking a stance that nations compete but it is the firms within that do the essential competing, it directly provides an integration of the macro and micro views and provides broad overall visibility on the notion of competitiveness in the form of “the Diamond.” Porter (1990, p. 40) views competitive advantage as “growing out of the way firms organize and perform discrete activities.” By setting various activities together where competitive advantage is created in form of “the value chain,” and by regarding it as an “interdependent system or network of activities,” connected by linkages, the plausibility of new competitiveness logics arises. The generic strategies of “cost leadership, differentiation, cost focus and focused differentiation” are chosen according to the characteristics of the particular industry (Porter, 1980) in which a firm operates and the linkages between the value chain activities are designed accordingly. These linkages, according to Porter, not only connect activities inside a company but also create interdependencies between a firm Emerging logics of competition 99
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    and its suppliers.For instance, the sources of cost advantage can be derived from close coordination with suppliers and channels. A new competitiveness logic may be thus be visualized at the meso level (Kinra and Kotzab, 2005), depending, e.g. on how sociology and psychology-oriented organizational analysis literature (micro level) and economics-oriented environmental analysis literature (macro level) (Guisinger, 2001) has each accounted for this mixed perspective. This is because value chain activities may be dispersed between many firms, thus compromising homogeneity in the creation of competitive advantages; at the same time, value chain activities may be dispersed in different countries, thus crossing different country diamonds. This gives rise to emerging logics that promote the existence of competition at the level of complex chains and networks, comprising of various firms (and nations). Some of these logics are now discussed in the context of the following sections where a brief overview of some of these, unintended and therefore emergent, themes in competition and competitiveness literature is presented. 4.1 “Firms cooperate, and compete” Coopetition is an emergent logic in competitiveness research (Bengtsson and Powell, 2004; Bengtsson and Kock, 2002), which is propelled by firms increasingly giving up traditional business models of straight competition, e.g. an adversary perspective, in favor of a more dynamic perspective of simultaneous cooperation and competition (Nevin, 2003). Simply stated, it refers to the interdependence (simultaneous cooperation and competition) between two or more firms in a competitive market and is fundamentally different from establishing alliances with competitors (Luo, 2004). Thus, for business logic to be called coopetition, it must comprise of both parts cooperation and competition, and these must occur within the same period. This is an exception that takes place, even though competition is the rule, and is also described as an alternative mode of behavior in business circles (Brandenburger and Nalebuff, 1996), especially for those that are required to manage emerging and converging technology industries. Luo (2004) suggests areas within which this simultaneity and duality characteristics of coopetition may take place as the product sector (in terms of access to proprietary skills, learning opportunity for firms, etc.), the functional sector (e.g. primary as well as supporting activities in the chain, e.g. transportation) and the geographical sector (i.e. in terms of overcoming potential but unpredictable destinations/markets, accessing difficult areas including emerging markets, etc.) of the business, which are generally characterized by complimentary strengths, but divergent market or competitive goals. As businesses move more into new and emerging areas, firms will need to cooperate as well as compete with other firms. Such a notion has micro/meso-orientation. 4.2 “Chains and networks of firms compete against each other” Arguing from a value chain perspective, Christopher (1998, p. 18) believes in the fallacy of conventional approaches on competition and competitiveness, and states that leading companies: [. . .] instead seek to make the supply chain as a whole more competitive through the value it adds and the cost that it reduces overall. They have realized that the real competition is not company against company but rather supply chain against supply chain. It has been more than ten years since this quote was first presented in favor of the supply chain concept and as the future of business competition. Supply chain CR 20,2 100
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    management (SCM) hasover this period become even more popular. As firms become more specialized, they become increasingly aware of the growing interdependencies and opportunities that exist between firms, suppliers, and customers (Watts and Hahn, 1993; Bowersox and Closs, 1996; De Souza et al., 2000). Probable sub-optimal results may occur when firms in a supply chain act independently of other firms in the chain (Banomyong, 2005), and therefore the need for members of the chain to function as a unit in order to achieve the benefits promised by a well-managed supply chain arises. As a result, the recognition of the supply chain as an integral part of their operations has become more apparent. They have become more conscious to the fact that they cannot compete with other firms in isolation of their suppliers and other units in the supply chain (Lummus and Vokurka, 1999). Many of the industries and firms that have turned to the supply chain for cost, quality and performance benefits including healthcare, services, manufacturing industries, etc. have also realized the advantages of implementing SCM strategies. The interaction of these supply chains in the market leads to a scramble for the best prices, better collaborations, superior services, and in the end better quality of service or products to customers at lower costs. This struggle for production variables in the market eventually leads to competition between supply chains. Accordingly, an entire domain of study has built upon these notions and discussion on performance or competition from this viewpoint (Speckman et al., 1998; Rice and Hoppe, 2001; Christopher, 1998). Supply chain vs supply chain may thus be treated as an emergent logic in competition and competitiveness research. Such a notion also has micro/meso-orientation. Similarly, while making an important contribution to interorganizational relations (Halldorsson et al., 2007), network theory reiterates that the performance of a firm does not depend only on how efficiently it cooperates with its direct partners, but also on how well they cooperate with their partners. It is a basic assumption of the network perspective that individual firms depend on resources controlled by other firms and that the firm’s continuous interactions with other players are an important factor in the development of new resources and skills (Skjøtt-Larsen, 1999). This in itself has implications on the redefinition of competitiveness, because according to this perspective a firm’s continuous interaction with other players is an important factor in the development of new and unique resources required to attain sustainable competitive advantage (“Exchange and adaptation processes.” Johanson and Mattsson, 1987). Yet, it is also important to note the interactionist standpoint adopted by this perspective, one with a view on interactions and temporality in interorganizational relationships. In this sense, competition and competitiveness are to be perceived differently depending on the particular standpoint on interorganizational relationships: relationship correspondence to a short- or long-term outlook, and essence of a social exchange process with a view on interactions or a conscious intervention to resolve, e.g. externally (market) oriented issues. The aspect of competitiveness in networks may then be looked at from two research streams: (1) The industrial network stream (the Industrial Marketing and Purchasing (IMP) perspective) (Ha˚kansson, 1982; Ford, 1990). (2) The relational strategy stream (Dyer and Singh, 1998; Gulati et al., 2000). Contemporary strategic management literature suggests the use of network lenses in order to understand competition, firm positioning, and competitiveness in a better way Emerging logics of competition 101
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    (Gulati et al.,2000). However, the industrial network perspective suggests the use of networks as relationships, assuming a more balanced way of cooperation and competition, but with no overall/overarching purpose as such (Gadde et al., 2003). The key element of competition within or outside the network, for example, is not the central position. On the contrary, it is a strange, hard to interpret “network logic.” All said, such notions of competitiveness also have a micro/meso-orientation and imply competition at the network level. 4.3 “Nations consisting of networks and chains of firms compete” Another emergent logic of competitiveness is one that extends Porter’s (1990) idea of national competition and cluster mechanics, and may be regarded as a hybrid between the traditional view on national competition (Section 3) and the emerging one that is described in the previous Section (4.2). It promotes that firms organized as supply chains and networks make the bulk of national competitiveness, and that the management of these supply chains and networks in a nation also contributes to overall firm competitiveness (Sahay et al., 2006). As Bagchi (2001, p. 53) proposes, an economy (country) may be seen as composed of the combined supply chains of various groups of companies in various business sectors, driven by the need to deliver goods to consumers, and thereby the need to connect supply and demand using certain essential flows. “If these networks and supply chains are efficient, the member firms can reduce their supply chain costs and become more competitive and the nation becomes prosperous.” This perspective lends into concepts such as supply chain competitiveness of nations that may seek to measure macro-economic and market forces at the level of supply chains, and such a notion has meso/macro-orientation. 5. Searching and reviewing shifts in literature The initial task of the analysis was a literature search that sought to capture a suitable universe of articles on competition and competitiveness. Given the variability in content and the somewhat similarity in use of these two terms, the review tried to identify the themes discussed in the preceding section and, just as importantly, to see how well the emerging logics were performing in the mainstream competitiveness debate. As documented in the last two sections, the themes micro, macro, and meso were established from the body of competition and competitiveness literature, and were subsequently used to guide the literature search. It was stipulated that the review be carried out on a limited number of journals, which are open to interdisciplinary perspectives, and where the concepts of competition and competitiveness are fairly well understood by its readers. For this reason, the search was carried out within two leading outlets[2] that are broad enough in their disciplinary scope and whose exclusive focus is on disseminating knowledge on competition and competitiveness related thought, namely: CR, and Advances in Competitiveness Research (ACR). The range of the review search included all published material from 1999 to date. The search was thus wide enough to make sure that sources obtained would be relevant and was performed in January 2009. The search was carried out in two stages. In the first stage, the journals were searched in order to elucidate the different levels at which most of the competition rhetoric is taking place, i.e. the micro, macro, and meso levels. The micro level represents the most basic level at which competition discussion is taking place. For this CR 20,2 102
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    level, a thesaurusof search words including “firm,” “company,” “organization,” “enterprise,” and “corporation” were used as keywords. For the macro level, a level closely related to governance and policy formulation within a sovereign entity, “national,” “nation,” “government,” “country,” “state,” and “public” were used as key search words. For the meso level, which was divided into two parts, “supply chain,” “supply chain management,” and “logistics” were used as key words were used for the first part and “network” was used for the other. The articles were then reviewed (manually assessed and distinguished), mainly using the abstracts and occasionally the main content, according to how they fit into the overall themes that were established earlier. The total results on the different search terms were accumulated to obtain a total number of hits for each journal and a total number of articles for each theme. The second stage of the literature review sought to discern possible leanings or affinities for the different emergent logics of competition and competitiveness in literature. Having identified possible emergent logics as “coopetition,” “supply chain vs supply chain/network,” and “national competition via networks and chains of firms,” it was important to determine how the literature stacked up against these logics, as this is relevant for appraising the extent to which shifts in thinking may have occurred. With search keywords “competitiveness” and “competition,” a new search was initiated using the same journals as in the previous search. The abstracts of each search result were then examined in order to eliminate articles in which competition and competitiveness were only cursorily discussed or treated, thus checking whether the content matched at least one of the suggested emergent logics. 6. Analysis and results 6.1 Themes of competition and competitiveness analyses The first observation of the results of the literature review and analysis (Table I) was the similarity in the total number of articles that represent the micro and macro themes. Going solely on article count, micro, with a total of 31 articles and macro with a total of 33 articles, far outnumber the third theme, meso, with 11 articles. The meso theme was made up of the emerging logics of supply chain and network competition. This division was borne out of the need to differentiate between the supply chain, which essentially is a group of organizations working as one cohesive unit with common goals to enhance competitive advantage (Mentzer, 2004), and the network, which portrays more of a set of alliances between firms. After the hits were generated, the results were analysed via the abstracts in order to determine themes of analyses. Further, the results in Table I tend to show that competition and competitiveness conforming to the micro and macro themes remain Meso Total number of hits Micro Macro SC/SCM Network CR 47 17 (36.1) 25 (53.1) 3 (6.3) 2 (4.2) ACR 28 14 (50) 8 (28.5) 2 (7) 4 (14.2) Total 31 33 5 6 Note: Percentages are shown in parentheses Table I. Review of themes by number of hits Emerging logics of competition 103
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    dominant in termsof the language, terms, and emphasis and hence the discussions within these journals. Even though the numbers tended to differ, the trend was obvious in both journals. Implicitly, it is then relatively straightforward to assume that Table I further helps establish the idea of the emergence of the different logics of competition and competitiveness, as has been proposed in the paper. 6.2 Impact of emergent logics in literature While emergent logics of competition and competitiveness have been identified from a variety of literature streams, the performance of these emergent logics within the mainstream competition and competitiveness literature was yet to be established. Table II, which focuses solely on the meso theme obtained from Table I, shows the results of this performance within the two journals considered here. The results indicate that while emergent themes of competition can be summarily established from literature, as is done here, convergence of these emergent logics within main stream competitiveness literature is however slow to occur. 7. Discussion and outlook This paper has concerned itself with the issue of paradigms and worldviews that lead scientists and researchers to master and solve problems within the field of competitiveness research. Since ontological worldviews are most commonly expressed through literal and academic writing, we have tried to show over the course of this paper that the use of academic journals can be valuable in deciphering whether a paradigm shift has taken place or not. It is obvious in the reviews carried out in this paper that over time competition has been practiced and carried forward with the belief that there exists some kind of structure to the industry within which firms should operate in order to enjoy certain benefits and remain competitive. For example, a prevalent starting point has been that industries are characterized by structures that work to prevent undesirable organizations from entering, after which they become qualified to compete within that industry. However, with the advent of new organizational settings such as interorganizational networks and supply chains, structures that tend to inhibit competition seem to be less explanatory with regards to this way of carrying out business. This was instrumental in bringing out new logics of competition like coopetition and supply chain competitiveness in this paper. Thus, it can be argued that a new way of thinking about competition is emergent. However, the literature searches performed in this paper fail to determine the popularity of these logics in any conclusive manner. On the contrary, they point towards the popularity of the dominant paradigms, ones that seek to advance competition based on structural characteristics seen either from the point of view of the individual firm (micro focus), or at the national level (macro-orientation). Hence, the macro vs micro divide (Chika´n, Search hits Coopetition (papers) SC vs SC/network (papers) National (papers) CR 50 1 (Adobor, 2006) 2 (Landry et al., 1998; Fulconis and Pache, 2005) 1 (Blair, 2004) ACR 100 – – 1 (Ezeala-Harrison, 2005) Total 1 2 2 Table II. Emergent themes of competition by number of articles CR 20,2 104
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    2008a, b), wasyet again found to be the dominant logic on competition and competitiveness. However, as underlined in the methodological considerations of this paper, there is also a need for thorough understanding of the nature of such an argument from the Kuhnian perspective in order to be able to conclude on the issue of paradigm shifts. Kuhn (1962) distinguishes among three phases of a paradigm shift. The first phase known as the pre-paradigm phase is the period within which a lack of structural consensus on a particular hypothesis, or fundamental principles of a theory is experienced, even though scientific activity is said to be ongoing. This phase of the paradigmatic shift is of interest because, while it may no longer be referred to as a pre-paradigm phase due to the weakening of the paradigm concept to include communities outside the consensus or normal science stage, i.e. the stage before the paradigm phase (also called pre-paradigm phase, Hoyningen-Huene et al., 1993), it is seen as an important stage. This is because it lends itself to the second stage, known and referred to as the normal science phase or the paradigm phase. Once a paradigm is accepted (usually in this phase) disagreements about fundamentals of principles die down and problems relevant to that paradigm are consequently explained and solved using the new paradigm. The normal science phase thus constitutes the stage of the paradigm shift where normal science begins, operates within an existing paradigm, and continues up until a point where ruling paradigms are no longer sufficient to solve problems within the given paradigm. The third stage of the paradigmatic shift is the revolutionary science phase. This phase is usually known to be proceeded by a period of crisis, e.g. during the Copernican Revolution, of which Kuhn (1962) makes reference to. The period of crisis begins when ruling paradigms start failing to provide the expected solutions and ends when a new paradigm has been accepted. Consequently, there is a return to normal science and this cycle between normal science, the crisis period, and revolutionary science continues within the later two stages of Kuhn’s paradigm shift. In applying these Kuhnian notions, while the findings of this paper with regards to a paradigm shift remain basic due to the nature of conceptual research carried out here, we can say that a paradigm shift in competitiveness research has not yet taken place based on the results and discussion presented here. Future research on the issue requires inclusion of a broader range of journals and disciplines in order to see how extant literature may be grouped into the competitiveness/competition logics presented in this paper. On the other hand, while one can hardly conclude from our single study whether a shift in paradigm has taken place or not, it may however be established that the process of the paradigm shift has begun. The process of a paradigm shift does not happen overnight but as a series of intellectual revolutions, as is well emphasized by Kuhn (1962). While these shifts do not happen by accident, they are pioneered by certain communities of scientists who are sitting on the sidelines and in times of crisis. The fact that we are seeing changes in one area or one community of researchers or scientists (e.g. the SCM and IMP domain), allows us to conclude that thinking is beginning to change in order to reflect constantly changing economic realities. If this is the case, then for those established disciplines of management that traditionally deal with competition issues, we are well on the way to a paradigm shift. From this point of view, emerging logics of competition are neither fantasy but rather represent a reality check in terms of the need to update/incorporate more levels and themes into the Emerging logics of competition 105
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    equation. It maythen also be concluded that a special issue, such as the present one dedicated to paradigm shifts in competition and competitiveness, is timely and appropriate. Notes 1. Following the citation of The Boston Consulting Group’s Harold Sirkin by the authors. 2. Whileotherjournal outletswithin thecompetitiveness/competition arena exist,e.g. “Competition and Change” and Journal of Industry, Competition and Trade, their substantial focus on the policy environment raises concern for treatment of other aspects of competition and competitiveness. References Adobo, H. (2006), “Inter-firm collaboration: configuration and dynamics”, Competitiveness Review: An International Business Journal, Vol. 16 No. 2, pp. 122-34. Andreassen, M.A. (2005), “Supply chain versus supply chain: benchmarking as a means to managing supply chains”, PhD dissertation PhD Series 7.2005, CBS, Copenhagen. Bagchi, P.K. (2001), “Measuring the supply chain competency of nations: the case of India”, Supply Chain Forum, Vol. 2 No. 1, pp. 52-9. Bain, J.S. (1956), Barriers to New Competition, Harvard University Press, Cambridge, MA. Bain, J.S. (1968), Industrial Organization, 2nd ed., Wiley, New York, NY. Banomyong, R. (2005), “The impact of port and trade security initiatives on maritime supply chain management”, Maritime Policy and Management, Vol. 32 No. 1, pp. 3-13. Barley, S.R., Meyer, G.W. and Gash, D.C. (1988), “Culture of cultures: academics, practitioners and the pragmatics of normative control”, Administrative Science Quarterly, Vol. 33 No. 1, pp. 24-60. Barney, J.B. (1986), “Types of competition and theory of strategy: toward an integrative framework”, Academy of Management Review, Vol. 11 No. 4, pp. 791-800. Barney, J.B. (1991), “Firm resources and sustained competitive advantage”, Journal of Management, Vol. 17 No. 1, pp. 99-120. Bengtsson, M. and Kock, S. (2002), “Co-opetition in business networks – to cooperate and compete simultaneously”, Industrial Marketing Management, Vol. 29 No. 5, pp. 411-26. Bengtsson, M. and Powell, W.W. (2004), “Different perspectives on cooperation and competition”, Scandinavian Journal of Management, Vol. 20 Nos 1/2, pp. 1-8. Bhatnagar, R. and Sohal, A.S. (2005), “Supply chain competitiveness: measuring the impact of location factors, uncertainty and manufacturing practices”, Technovation, Vol. 25 No. 5, pp. 443-56. Blair, J.P. (2004), “How local competition for economic activity affects national competitiveness”, Competitiveness Review: An International Business Journal, Vol. 14 Nos 1/2, pp. 18-25. Bowersox, D.J. and Closs, D.J. (1996), Logistical Management – The Integrated Supply Chain Process, McGraw-Hill, New York, NY. Brandenburger, A.M. and Nalebuff, B.J. (1996), Co-opetition, HarperCollins Business, London. Bryman, A. andBell, E. (2007), Business ResearchMethods, Oxford University Press, New York, NY. Cavinato, J.L. (1991), “Identifying interfirm total cost advantages for supply chain competitiveness”, International Journal of Purchasing Materials Management, Vol. 27 No. 4, pp. 10-15. CR 20,2 106
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    Miyazaki, A., Phillips,J.K. and Phillips, D.M. (1999), “Twenty years of JBL: an analysis of published research”, Journal of Business Logistics, Vol. 20 No. 2, pp. 1-19. Monczka, R.M. and Morgan, J. (1997), “What’s wrong with supply chain management?”, Purchasing, Vol. 122 No. 1, pp. 69-73. Nevin, M. (2003), “Competition-collaboration-co-opetition: why are organisations sleeping with the enemy”, paper presented at C C Conference, Va¨xjo¨. Porter, M.E. (1980), Competitive Strategy, The Free Press, New York, NY. Porter, M.E. (1981), “The contributions of industrial organizations to strategic management”, Academy of Management Review, Vol. 6 No. 4, pp. 609-20. Porter, M.E. (1985), Competitive Advantage, The Free Press, New York, NY. Porter, M.E. (1990), The Competitive Advantage of Nations, Macmillan, London, p. 577. Prahalad, C.K. and Hamel, G. (1990), “The core competence of the corporation”, Harvard Business Review, Vol. 68 No. 3, pp. 79-91. Rice, B.R. Jr and Hoppe, R.M. (2001), “Supply chain vs supply chain: the hype and the reality”, Supply Chain Management Review, September/October, pp. 46-54. Sahay, B.S., Gupta, J.D. and Mohan, R. (2006), “Managing supply chains for competitiveness: the Indian scenario”, Supply Chain Management: An International Journal, Vol. 11 No. 1, pp. 15-24. Schuetz, J., Deering, M., Kilpatrick, J. and Derocher, B. (1999), Energizing the Supply Chain: Trends and Issues in Supply Chain Management, Deloitte Consulting, New York, NY. Skjøtt-Larsen, T. (1999), “Supply chain management – a new challenge for researchers and managers in logistics”, International Journal of Logistics Management, Vol. 10 No. 2, pp. 41-54. Speckman, R.E., Kamauff, J.W. Jr and Myhr, N. (1998), “An empirical investigation into supply chain management: a perspective on partnerships”, International Journal of Physical Distribution Logistics Management, Vol. 28 No. 8, pp. 630-50. Spens, K.M. and Kovacs, G. (2006), “A content analysis of research approaches in logistics research”, International Journal of Physical Distribution Logistics Management, Vol. 36 No. 5, pp. 374-90. Toffler, A. (1980), The Third Wave, Pan Books, London. Tyson, L.D. (1988), “Competitiveness: an analysis of the problem and perspective on future policy”, in Martin, K.S. (Ed.), Global Competitiveness, W.W. Norton, New York, NY, pp. 95-120. Tyson, L.D. (1992), Who’s Bashing Whom? Trade Conflict in High-technology Industries, Institute for International Economics, Washington, DC. Vokurka, R.J., Zank, G.M. and Lund, C.M. (2002), “Improving competitiveness through supply chain management: a cumulative improvement approach”, Competitiveness Review: An International Business Journal, Vol. 12 No. 1, pp. 14-25. Waheeduzzaman, A.N.M. and Ryans, J.K. Jr (1996), “Definition, perspectives, and understanding of international competitiveness”, Competitiveness Review: An International Business Journal, Vol. 6 No. 2, pp. 7-26. Watts, C.A. and Hahn, C.K. (1993), “Supplier development programs: an empirical analysis”, International Journal of Purchasing Materials Management, Vol. 29 No. 2, pp. 11-17. Wernerfelt, B. (1984), “The resource-based view of the firm”, Strategic Management Journal, Vol. 5 No. 2, pp. 171-80. Emerging logics of competition 109
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    Further reading Porter, M.E.(1998), “Clusters and the new economics of competition”, Harvard Business Review, Vol. 76 No. 6, pp. 77-90. About the authors Aseem Kinra is an Assistant Professor at the Copenhagen Business School. His academic interests span the area of global supply chain management and current research interests lie within organizational decision making on issues related to the strategy and design of globally dispersed value chains. Aseem Kinra is the corresponding author and can be contacted at: aki.om@cbs.dk Imoh Antai is doctoral candidate at the Division for Supply Chain Management and Corporate Geography, Hanken School of Economics. His research interests include healthcare logistics and competition between supply chains. To purchase reprints of this article please e-mail: reprints@emeraldinsight.com Or visit our web site for further details: www.emeraldinsight.com/reprints CR 20,2 110
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    Paper 2 A theoryof the competing supply chain: Alternatives for development Imoh Antai. International Business Research, Volume 4, Number 1; (2011). II
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    www.ccsenet.org/ibr International BusinessResearch Vol. 4, No. 1; January 2011 ISSN 1913-9004 E-ISSN 1913-901274 A Theory of the Competing Supply Chain: Alternatives for Development Imoh Antai Department of Supply Chain Management Corporate Geography Hanken School of Economics Arkadiankatu 22, 00101, Helsinki, Finland Tel: 358-(0)40-352-1283 E-mail: antai@hanken.fi Abstract Development of a coherent methodology for supply chain vs. supply chain competition remains elusive in literature in terms of purpose, approaches and theoretical foundations. The purpose of this paper is to identify suitable theories of competition from which supply chain vs. supply chain competition may be further developed. Paper explores literature on competition theories, competition and its correlates and also considers the dichotomy between competitiveness and competition in relation to achievement of a competitive advantage in supply chains. An argument is made for the identification and development of theory that reflects the multidimensional, process-based and emergent properties of supply chains. Three competition theories from which supply chain vs. supply chain competition may begin to be conceptualized and possibly operationalized are identified. A chronological conceptualization of competition, competitiveness and competitive advantage, which is intuitive to the realization of competitive advantage in inter-supply chain competition, is also proposed. Keywords: Competition, Competitiveness, Competitive advantage, Competition theory, Dimensionality, Niche theory 1. Introduction A supply chain is the network of organizations involved, through upstream and downstream linkages, in the different processes and activities that produce value in the form of goods and services for end-customers (Christopher, 1992). Most definitions of supply chain management succinctly divide the discipline into several parts. And the multi-disciplinary, multi-dimensional nature of supply chains and its management imply that there is hardly a single focus for supply chain management, which is essential for developing theory for supply chain vs. supply chain competition. That is to say, for the development of a supply chain competition theory, a clear explanatory purpose of competition between supply chains is needed. Determining an explanatory purpose for competition is complex mainly because supply chain management is seen both as a management discipline and as an operational subject. While reconciling these two views within supply chain management present significant challenges, it is the development of an (single) explanatory purpose of competition between supply chains that promises much fierce debates. Hence, the purpose of this paper is to identify possible competition theories within which supply chain vs. supply chain competition may be properly conceptualized and perhaps subsequently operationalized. It also seeks to develop an understanding of competitive advantage in relation to competition and competitiveness given its importance to the notion of competition as a whole, and supply chain vs. supply chain competition in particular. A theory is regarded as a set of concepts used to define and/ or explain some phenomenon (Silverman, 2000). In general, it postulates structural relationships between key constructs (Trochim, 1989). Theory consists of plausible relationships produced among concepts and sets of concepts. And as Silverman (2000) puts it, without theory phenomena cannot be understood, hence without theory, there is nothing to research. If it is agreed that there is even a remote need to consider competition between supply chains, then it is also given that a purpose of such a competition is necessary. Thus, the identification of theories for possible modification and adoption in supply chain vs. supply chain competition represent first, albeit small, contribution towards this goal. In the apparent absence of a suitable theoretical basis for supply chain vs. supply chain competition, literature is reviewed with the aim of identifying competition theories sufficiently accommodating to this form of competition. On the other hand, by proposing an alignment of competition and its correlates, it is conceived that the process of competition and the dual states of competitiveness and competitive advantage are operational within the context of supply chain vs. supply chain competition. 2. Background and theoretical considerations for competition The concept of supply chain vs. supply chain competition is no longer new to supply chain management literature. However, implicit questions surrounding the meaning of the concept, its usage and acceptance continues within supply chain management circles. Rice and Hoppe (2001) have noted the underlying difference of opinion within
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    www.ccsenet.org/ibr International BusinessResearch Vol. 4, No. 1; January 2011 Published by Canadian Center of Science and Education 75 academia, industry and consulting regarding the meaning of supply chain vs. supply chain competition. Beyond the varied understandings of competition between supply chains proposed in literature, e.g. as complex adaptive systems (Langdon and Sikora, 2006), use of economic network model (Zhang, 2006), and on network capabilities (Rice and Hoppe, 2001), there is unwillingness within supply chain management scholars to debate the validity of the concept of supply chain vs. supply chain competition. This is based on the fact that there is little in the current literature to suggest that the ascribed meaning of such formulations as supply chain vs. supply chain competition is relevant and acceptable to the development of the discipline. While conventional competition remains strong within management literature, the main difference between this form of competition and supply chain competition lie in the fact that firms cannot act as isolated, independent entities in competition with other organizations (Christopher, 1998). Open competition between organizations breed innovation, and innovation is the root of all economic progress (Cook, 2003). Hence, without competition there is little or no innovation. In supply chains, this innovation can be likened to the value each supply chain seeks to create for its end-customers, who remain the essence of the supply chain. Therefore competition between supply chains is necessary, and as such there is a need to understand and conceptualize such competition, because it exists. Prior to considering possible theories, it is appropriate to underline the contexts upon which theories will be considered for supply chain vs. supply chain competition. This is important to establish the idea of the broader dynamics of change that continuously occur in supply chain management. 2.1 Dimensionality Supply chains have been known to be quite complex especially with regards to competition. Given the extent to which supply chains may operate, competition between supply chains can be described as essentially multidimensional (Lancioni, 2000) especially in terms of the relationships it is connected to. Harrigan (1985) argue that supply chains are multidimensional and characterized by the different stages, breadth, form, degree and modes of integration it exhibits. In the same vein, Gardner (2004) makes a quantitative argument for the multi-dimensionality of supply chains. Supply chain management is primarily concerned with integration of position between several decision makers whose agents (manufacturers, suppliers, distributors, etc) are interested and specialized in a number of different areas. Thus, dimensionality represents a group of characteristics whose presence is necessary and sufficient to determine the unique function and character of a supply chain network. While these characteristics are unique to the supply chain, dimensions for supply chain efficiency may vary from supply chain to supply chain. For example, the Sand Cone model (Ferdows and Meyer, 1990) specifies several areas of manufacturing capabilities which should be developed on an incremental basis. Quality capabilities are developed first, followed by the dependability and subsequently the competence in speed is developed. Finally, the cost efficiency dimension is developed in order to maintain competitive performance. Dimensions are thus important as it allow entities decide along which aspect they will best succeed in the competition process. It also brings up aspects of specialization to competition issues. 2.2 Process Orientation Supply chain management can be seen as a process based approach for identifying, evaluating, selecting, managing and developing value performance that is better than the competition (Monczka et al., 2009). The Global Supply Chain Forum (GSCF) identified eight supply chain management processes (Lambert, 2008); customer relationship management, supplier relationship management, customer service management, demand management, order fulfilment, manufacturing flow management, product development and commercialization, and returns management. By being process based, theory of competition is able to explain fairly accurately the dynamics of behaviour as they change over time. Process-based thinking represents a procedure by which the behaviour of a system is obtained from a set of interactions between entities and themselves and with the environment, through physical and mechanistic processes which occurs over time (Godfrey 1983). Hence, for the process-based criteria, behaviour is important to the understanding of competition. 2.3 Emergence Competition between supply chains could also be regarded as emergent (Storey et al., 2006), along with other forms such as co-opetition and national competition whereby the behaviour causing competition arises from the interaction between supply chains for resources, innovation and advantage of particular sort. Building on the process orientation discussed above, emergence extends this idea to a logical conclusion by looking at interaction from the opposite end, i.e. in terms of results. Thus, emergence focuses on the behavioural outcome of interactions between entities and treats these outcomes as a result of the very same interaction between entities. Over time, this should allow certain outcomes to be expected of certain types of interaction and possibly vice-versa. Based on this, emergence expressly assumes that competition (competitive interaction) must involve more than one entity. To be accommodating to
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    www.ccsenet.org/ibr International BusinessResearch Vol. 4, No. 1; January 2011 ISSN 1913-9004 E-ISSN 1913-901276 supply chain vs. supply chain competition, theories must place equal emphasis on process orientation as they do on emergence. For supply chains, doing this may be instrumental to understanding how some of the complexities of supply chains play in to affect how supply chains compete. 3. Literature overview: Competition theories 3.1 Economic theory of competition From an economics perspective, the theory of competition essentially encompasses two broad ideas – 1). Competition as structure, in which firms within an industry strive for some kind of control of the forces determining equilibrium (demand and supply) within that industry. This type of competition, usually referred to as neoclassical, encompasses four main theoretical competition thoughts: perfect competition, monopolistic competition, oligopoly and monopoly (Lipczynski et al., 2005). These theories underline the idea of competition within the industrial organization context generally regarded as the static view of competition (Lipczynski et al., 2005). Traditionally, industrial competition had been that which was carried out on the basis of the economic power of large firms and their ability to generate economies of scale allowing goods to be produced at low unit costs (Best, 1990). From the contemporary point of view however, flexible technologies, e.g. information technology, advances in communication technologies, computing, etc, have allowed the substitution of economies of scale by economies of scope, where emphasis on innovation rather than low unit cost, collaborations rather than scale enterprise, and export rather than foreign investment, dominate such industrial systems (Best, 1990; Gertler and Barnes, 1999). And 2). Competition as a process, whereby the struggle essentially focuses on the behaviour of firms, actors, etc within the market, which ultimately establishes how much rivalry exists within the industry (Metcalfe, 1998). This more dynamic position of competition was argued by Schumpeter (1942) and the Austrian school (of economists). According to Schumpeter, the competitive process creates patterns of change, and change is driven by innovation; hence competition is determined by the amount of innovation that is created in the market. It challenges firms to compete in entirely new ways. The Austrian school, however, considers this dynamic process in terms of resource owners, entrepreneurs and customers (Kirzner, 1997). In this sense, entrepreneurs discover and act on new pieces of information which in turn acts to affect, by way of adjustment, the outcomes of other decision makers in the process. However, the concept of perfect competition remains the standard model of analysis within the economics discipline. Over time the idea of competition in economics had began to shift its basis from perfect competition and the structural (equilibrium) ideology towards the process concept of competition (Metcalfe, 1998; Cook, 2003: 64-65). Loasby (1982) argued that intensity of competition is not dependent on the number of competitors in a given market because increasing numbers of competing firms only create an increasing scope for differential behaviour in the market. This change from static to dynamic competition has come to be known in literature as the hypercompetitive shift (D’Aveni, 1994), chararcterisized by improving technology, improved skill base of firms and its employees, more sophisticated demand, falling barriers to entry and increase in alliances and collaborations between firms (Thomas, 2001). 3.2 Resource –Advantage (RA) theory of competition The R-A theory of competition can be seen to have its underpinnings in a number of sources, concepts and theories. In terms of concepts (i.e. competition), R-A draws profound inspiration from the neoclassical idea of perfect competition, where perfect competition is said to be incorporated into R-A theory as a limiting, special case of competition (Hunt and Morgan, 1996). R-A theory also utilizes Schumpeterian ideals of endogenous innovation customary in evolutionary economics, as well as influences from Austrian economics (Hunt, 2000). For theories, R-A looks to the combination of the resource based theory (Conner and Prahalad, 1996; Barney, 1986, 1991) and the marketing theory of heterogeneous demand to form its core notions (Hunt, 2002). The Resource-Advantage (R-A) theory according to Hunt (2007) is an evolutionary, disequilibrium provoking, process theory of competition, where innovation and management knowledge are endogenous, organizations and customers have inadequate information and one in which the environment (via free enterprise, organization and public policy) affect economic performance. It is a process theory that bases competition between entities on market segments and resources, both of which tend to influence organizational behavior (Goh, 2003). Market segments are intra-industry identifiable clusters of consumers which can be identical within clusters, but vary considerably across clusters. Resources on the other hand are the hard and soft assets available to the firm that makes it possible to efficiently produce offerings that have value for some market segments (Hunt, 2000). Cash, equipment, licenses/patents, skills, knowledge, cultures, etc are all examples of resources. Since such resources tend to vary significantly across firms (because most of these resources cannot be readily bought and sold in the marketplace), the concept of comparative advantage is central to R-A theory of competition. Comparative advantage is the ability of a firm to engage in the production of market offerings at a lower cost and with superior value, relative to extant offerings by competitors as a result of the
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    www.ccsenet.org/ibr International BusinessResearch Vol. 4, No. 1; January 2011 Published by Canadian Center of Science and Education 77 resource assortment available to that firm (Goh, 2003). Thus, within R-A theory, competition encompasses a continuous struggle and search for resources that will allow firms the ability to claim comparative advantages. This yields a market place position of competitive advantage and consequently superior financial performance (Goh, 2003). As such R-A theory infers that market place positions (i.e. positional advantage) determine the intensity of superior performance. A positional advantage within the R-A theory is the occupation of one of three advantage (2, 3 and 6) cells out of a matrix of nine possible competitive positions. The cells reflect the possible combination of a firm’s relative resource produced value against the relative resource costs for producing such value (Hunt, 2000). Value refers to the sum total of all benefits that consumers perceive they will receive if they accept a firm’s market offerings (Hunt, 2000). The aim with the matrix is to occupy one of the three advantage cells, as those firms occupying other cells constantly struggle to reach one of these advantage cells. 3.3 Ecological niche theory of competition The theory of niche takes as its area of jurisdiction the co-existence and competition for similar scarce resources between contending species. Over time, the niche theory of competition has become synonymous with competition theory (Colwell, 1999; Alley, 1982) which has largely come about as a result of its history with competition theory rather than logic. The development of the work known and called niche theory was started by Robert MacArthur and Richard Levins (1967). This work mainly focused on reinterpreting the competitive exclusion principle. The competitive exclusion principle formally states that “no two organisms in a single species can occupy precisely the same niche, or exist on exactly the same limiting resources” (Grinnell, 1917). What this principle simply assumes is that the coexistence of any two species implies that they must not be in true competition, because as the principles states, no two species can exist on the same limiting resources. Thus, the ultimate result of the principle of competitive exclusion is extinction. However, the works of MacAuthur and Levins (1967) introduced the idea of a limiting similarity between two competing species. This idea of limiting similarity suggested that the more similar two competing species are, the less likely it is that they will coexist. It is on this notion of similarity that the niche theory of competition finds its basis for competition, by using such concepts as niche breadth and niche overlap. Based on the principle of competitive exclusion, a niche is defined as the extent of environmental variation, in both biotic and abiotic factors, under which a species can engage in activities necessary for its survival (Alley, 1982). In this sense, species are viewed to have a multidimensional relationship with the environment. A niche breadth is thus the range of environmental conditions (including resources) within which a species can survive. It refers to the position occupied by a species on a particular resource dimension. When these niches overlap, the idea of similarity discussed above is brought into play. Thus, when two species vie for the same food resources, they have a limiting similarity, which means that their niches overlap and as such they become competitors because they cannot coexist ad infinitum. It provides a measure of ecological similarity between interacting species. Therefore competition, under the niche theory, is a resource-related form of interaction between two or more species (Birch, 1957). The following sections discuss competition and its correlates and thereof attempt an alignment that seeks to further elucidate the broader relationship between these three terms for supply chain vs. supply chain purposes. 3.4 Aligning competition and its correlates 3.4.1 Competition Competing concepts of competition abound in a variety of disciplinary literature. However, a well established meaning of the competition concept is still vague, despite its extensive use as one of the core concepts of economic theory (Metcalfe, 1998; Telser, 2007: xiv). The nature of a theory of competition will depend, to a large extent, on the explanatory purpose in view, with respect to the idea being conceptualized (Cook, 2003). Hence, competition as originating from within different disciplinary frameworks would differ markedly. Theories of competition designed to elucidate the utilization of resources by competing entities will be reasonably different from one that promotes the idea of stability of structures that are essential to the control of resources in a given market. Any consideration of a competition theory for supply chain vs. supply chain competition must be informed by an understanding of the long standing debate between competition and its correlates – competitive advantage and competitiveness. Issues of consideration essentially include the relationship between these three terms. How does competitive advantage come about? Does it have anything to do with competition? However, the important question here remains that if we are to align competition, competitive advantage and competitiveness for supply chain vs. supply chain competition, what chronological order would accompany such an alignment? 3.4.2 Competitiveness While competitiveness is widely used in literature, no clear definition of competitiveness has been agreed on, even with reference to an entire economy. The World Competitive Yearbook (WCY) defines competitiveness as:
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    www.ccsenet.org/ibr International BusinessResearch Vol. 4, No. 1; January 2011 ISSN 1913-9004 E-ISSN 1913-901278 ......“a field of economic knowledge, which analyses the facts and policies that shape the ability of a nation to create and maintain an environment that sustains more value creation for its enterprises and more prosperity for its people”. Although comprehensive for its purpose, this definition remains cumbersome and fuzzy, and possessing no proper basis for testable propositions (Hagen and Immerfall, 1998), competitiveness remains elusive in literature (Wignaraja, 2003). However, Cho (1998) goes on to illustrate the concept of competitiveness in a more comprehensible and straightforward manner, as being “the relative strength that one needs to have to win in a competition against competitors”. Competitiveness discussions in literature have tended to focus on three different levels comparison - firm competitiveness, industry competitiveness and competitiveness of nations (Cho, 1998). It has also been described as a relative concept used to compare economic performance between these three levels (Dunning, 1997; 227). This economic performance is usually expressed at the national level in terms of national productivity (e.g. via the Gross Domestic Product (GDP), Foreign Direct Investment, trade balances, etc). This view in essence proposes comparisms between like entities, e.g. firm-firm, region-region, industry-industry, nation-nation comparisons, etc. There is a broad recognition that competitiveness of nations is essentially made up of the competitiveness of individual firms within that nation (Cho, 1998; Porter, 1990). As such, sources of competitiveness may be said to be identical for both categories of competitiveness. Meanwhile, Krugman (1994) sees the concept of competitiveness as meaningless and just another name for productivity, when applied to competitiveness of nations. 3.4.3 Competitive advantage The concept of competitive advantage is a well-known notion whose essence has, however, been poorly understood (Hao Ma, 2000), especially with respect to supply chains and its management. The conceptualizations of competitive advantage across different literature streams convey three basic ideas. The first notion of competitive advantage is one that promotes the resource-based view as the premise within which organizations can achieve competitive advantage. The resource based theory attempts to predict the outcome of competition by utilizing information on the resource utilization of competitors (Tilman, 1982). This view is very much regarded as the leading theory of competitive advantage, and much of it rests on the concept of heterogeneity of resources (Peteraf, 1993; Barney, 1991; Grant, 1991; 1986; Rumelt, 1987, 1984). Heterogeneity of resources is to a good extent is explained by Barney’s (1991) conditions for achieving competitive advantage. The basic assumption of heterogeneity is that resources and capabilities that enable production are heterogeneous across firms (Barney, 1991). The second notion of competitive advantage is one that advances the idea that the creation of value, which surpasses that created by rivals, provides a means of achieving competitive advantage. Porter (1985) argues that “competitive advantage grows fundamentally out of value a firm is able to create for its buyers that exceeds the firm’s cost of creating it.” In the same vein, Mentzer (2004: 7) asserts that competitive advantage can be achieved by creating value, for the end-customers, which is greater than that offered by competitors (Mentzer, 2004; Wilding and Newton, 1996). This view of competitive advantage is also alluded to by Ma (2000), asserting that competitive advantage is simply the differential between competitors on any given dimension, which allows one to better create customer value than the other. The third conceptualization of competitive advantage is one that is based on profitability, implying that if a firm remains profitable for any period of time, it has to be doing something better than its competitors. Grant (2004) describes competitive advantage as the resulting potential profitability or higher rates of profit that accrues to one firm when two or more firms compete within the same market. This definition describes competitive advantage in terms of profitability, which is a widely held view in practitioner circles as firms would expressly assume a competitive advantage with increasing growth of profitability. In order to gain competitive advantage, some form of imperfection to competition must exist (Grant, 2004; 237). Conversely, Porter (1985) suggests that the structure of the industry, together with its competitive advantage ultimately determine how profitable a firm will be. Grant (2004), however alludes to the troublesome nature of defining competitive advantage with respect to profitability, arguing that if competitive advantage were a proxy for profitability there would be no need for the term competitive advantage. According to Grant (2004) there is more to competitive advantage than just profitability, which may not only be revealed in higher profits, for example market share, technology, intellectual capital, etc. (Figure 1 about here) Hence, literature on competitive advantage reveals that competitive advantage can be achieved by a combination of three factors – (1) Resources (2) Innovation and research development and (3) Cost leadership and differentiation (Fig. 1). Literature has also showed that competitive advantage may be sought for a number of reasons of which the
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    www.ccsenet.org/ibr International BusinessResearch Vol. 4, No. 1; January 2011 Published by Canadian Center of Science and Education 79 most common tend to be profitability, performance, market share, value creation or a combination of these. Thus, the framework presented in Fig. 1 depicts a realistic picture of the antecedents of competitive advantage made up in part by innovation and research development, resources and differentiation. 4. Analysis and results 4.1 Relationship between the three Cs The following analysis of competition and its correlates presents a fundamentally different starting point from which they may be understood - the Supply chain. It challenges the commonly touted assumption that competitiveness is a means by which competitive advantage is achieved in supply chain management. This paper adopts the definition of competitiveness by Cho (1998), where it is regarded as the relative strength (ability) that is needed to engage and possibly win in a competition against rivals. Competitive advantage is the advantage, in value terms, a supply chain creates for its customers that essentially accrue from the competition with other supply chains. This definition emphasizes the fact that competitive advantage results from competition. In taking up the difference between competition and competitiveness, table 1 summarizes the variation between the terms. While competitiveness can be seen as a relational term, approaches to its treatment obviously differ from one to the other (Metcalfe et al., 2004). When the unit of analyses are countries or even industries, the issue of competitiveness is usually said to revolve around the relative position, strength, achievements, etc, of one with respect to the other. Thus, there is no standard. However, within supply chains, it essentially involves the ability of supply chains to gain competence. This competence is made up of the supply chain’s ability to obtain resources and to put these resources to use in terms of producing profitable output. Thus, competitiveness demands efficient use of resources and efficacy of productivity from these resources. (Table 1 about here) On the other hand, competition is a process by which different entities strive for limited critical resources; customers, production resources, profit, market share, etc. Competition, from almost all concepts, essentially remains a process which changes over time, and involves the ability of one entity to be more efficient than another in acquiring and using resources that are essential to creating some form of value for itself and its ultimate end-customer. Thus, competition has been described as non-static and the dynamic nature of competition can be observed in the structural characteristics of the industrial organization concept of competition. This is quite similar to the Schumpeterian perspective of competition in terms of innovation and technological advancement. Thus, competition can be said to connote a different idea from that of competitiveness, given the differences that are apparent between the two concepts from literature. Accordingly, if competitiveness and competition connote different ideas, competitiveness par se, cannot be solely responsible for competitive advantage in supply chains, as frequently proposed in supply chain literature. Rather, there seems to be a continuum between competitiveness and competition, whereby competitiveness determines how well a supply chain is suited for competitive interaction (i.e. competition) and consequently determines which supply chain is more capable of using its resources in such a way as to lead to a competitive advantage. (Fig. 2 about here) Hence, the framework in Fig. 2 is divided into three stages corresponding to the continuum that is expected to occur between the three concepts. It entails that in order for supply chains to achieve competitive advantage, some form of competition has to be undertaken. Because competition does not exist as state of nature, the framework depicts competitiveness as the willingness and the ability of a supply chain to voluntarily take part in competition through which competitive advantage is either achieved or a return to the competitiveness state subsequently occurs. Thus, the essence of competitiveness within this framework is therefore to be described as the preparatory stage, while competition could be referred to as the interaction stage. The competitive advantage is referred to as the advantage stage. Therefore, any characterization of competitive advantage from a strategic perspective within supply chains should clearly be inseparable from a broader understanding of the dynamics between competitiveness and competition. From literature, we understand that creating value is the purpose of supply chains (Mentzer, 2004), and this is done in a way that suggests that value which surpasses competitors’ value offerings essentially make up the competitive advantage of that supply chain. Thus, based on the forgoing, our understanding of value with respect to competitive advantage can be distinguished into two categories for competition purposes – competition-based advantage, and a somewhat opposite term, competition-free value. Competition-based advantage is based on the idea that competitive advantage is achieved as an outcome of a head-to-head competition for scarce critical resources between two or more entities (e.g. Porter, 1985). On the other hand, competition-free value is value created by supply chains in which there is no competitive interaction (competition) from one end of the supply chain to the other with other
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    www.ccsenet.org/ibr International BusinessResearch Vol. 4, No. 1; January 2011 ISSN 1913-9004 E-ISSN 1913-901280 related supply chains (e.g. Grant, 2004) . As such there is no connotation to an advantage within this mode of value creation. 4.2 Implications for supply chain competition In previous sections, a review of literature identified current competition theories that might be suitably adapted to competition between supply chains, as well as the relationship that unite competition and its correlates. However, while important for the intended purpose, per se they do not provide perspective significance for supply chain competition. This section evaluates these data to determine potential implications for supply chain competition. 4.2.1Economic theory perspective Supply chain vs. supply chain competition from an economic theory perspective presents a number of challenges. The two perspectives of competition embedded and discussed within this theory make a comprehension of its application to supply chain vs. supply chain competition a little complicated. While on the one hand, economic theory of competition is guided by structural tendencies, which seeks to maintain equilibrium between the market forces of demand and supply. Known to be static in nature, most treatment of competition within this area assumes equilibrium conditions, as equilibrium constitute fundamental parts of many competition concepts. However, different competition concepts treat equilibrium differently. With the evolution of supply chain vs. supply chain competition, equilibrium conditions for competition become problematic especially as a proper basis for competition between supply chains is yet to be developed. On the other hand, the gradual reception of behavioural or process views of competition between entities allows for a more realistic context from which supply chain competition may be analysed. This view dissociates itself from most of the assumptions of perfect competition including equilibrium. Also, given this shift in perception, a discussion on the issue of supply chain vs. supply chain competition within the economic theory may begin. 4.2.2 Niche theory perspective The competition here explores the limiting similarity between competing species based on the fact that diversity can be limited in at least three ways- the lower limit to abundance, the upper limit to abundance and lastly limits to specialization set by the environment (MacArthur and Levins, 1976). It is this limit to the degree of specialization that determines the limits to similarity of competing species. Therefore theories of niche can be used to analyze the interaction between different supply chains. The ecological niche theory of competition therefore presents a metaphor that can be adopted by other domains in an effort to elucidate complex issues between two or more entities. It does this via the concepts of interaction, niche and overlap. In the niche theory, a condition for competition is the existence of some similarity or overlap in niches of entities; this is clearly advocated within the niche literature. Because competition breeds diversification, it represents the shifting of niches, and hence provides proof that competition actually takes place. Thus, the niche competition theory emphasizes specialization and hence competition in dimensions. 4.2.3 The R-A theory perspective R-A theory introduces the idea of resources as the mainstay of competitive achievement and maintains that within an industry, there are market segments and there are resources that are used to satisfy the market segments. The idea of the R-A theory is simple and straightforward. In order for firms to achieve a competitive advantage it must possess resources that other competing entities do not. In other words, the laws of comparative advantage must be obeyed. However, since the R-A theory practically theorizes competition in one dimension, handling the multidimensionality of supply chains within such theory could become cumbersome. The R-A theory goes further to suggest the concept of positional advantage which in effect can determine the competitive advantage of a firm and consequently superior financial performance by the positions firms take up within the industry. The global supply chain view transcends borders and industries (depending on how large the view of the industry is taken, e.g. regional industry). Hence the environment that acts to affect supply chains change with movement from upstream through the downstream of the supply chain. So for supply chains, competition will have much to do with the environment and the dimension upon which it takes place. Table 2 presents the identified competition theories and how they perform against the chosen supply chain criteria. (Table 2 about here) Based on the idea that competition is the driving force of the ruling structure in the industry, the relationship depicted by fig. 2 can be further extended to reflect this consideration, from a hierarchical point of view. Fig. 3 illustrates the idea of hierarchical ordering of competitively interactive supply chains according to the level and assets they seek to achieve. At the bottom of the pyramid supply chains that are neither interested nor capable of carrying on competitive interaction would occupy this level. Supply chains at this level do not make significant
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    www.ccsenet.org/ibr International BusinessResearch Vol. 4, No. 1; January 2011 Published by Canadian Center of Science and Education 81 efforts to improve on areas that would be necessary for supply chains to have for competition purposes. Thus, supply chains at this level are simply referred to as “status quo” or “do nothing” supply chains. On the competitiveness level supply chains strive to develop competencies that would be necessary in order for them to engage in competitive interaction. Here, special skills and competencies are developed (based on the heterogeneity of resources), ruling knowledge in the market are sought, regulations are identified, etc. Active developments in these areas are beneficial for supply chains as they inadvertently prepare for competitive interaction. On the competition level, this is where competition would actually take place and the rewards sought could include resources in the form of suppliers, raw materials, technology, patents, etc. At this level, competitive interaction takes place between supply chains. At the top level, supply chains that maintain leading positions within their industry occupy this level. The higher a supply chains goes on the pyramid, the better value such a supply chain is able to create for its end-customers, and hence there is a constant struggle to reach the top of the pyramid where it is possible to enjoy superior performance, larger market share, superior value creation abilities, etc. Arrows between the levels signify the possible movements of supply chains between levels, as supply chains that lose a position at the top of the pyramid would drop to the competition level where it would continue to seek a return to the top of the pyramid. (Figure 3 about here) In the foregoing, a conceptual relationship is ascertained between the concepts of competition, competitiveness and competitive advantage, and in so doing establish competition as an all important mediator between competitiveness and competitive advantage. Thus, it is logical that competition is seen to be a major driver of competitive advantage. This is simply so because based on the development of competition and competitiveness here, competition (competitive interaction) must be undertaken if competitive advantage is to be achieved. 5. Conclusion The sole purpose of engaging in competition is to achieve and where possible, maintain a competitive advantage over competitors. This paper has firstly concerned itself with the search for suitable competition theories with which supply chain vs. supply chain competition may begin to be conceptualized in literature. Three candidate theories - Economic, niche and R-A theories of competition - with varying characteristics were identified and subsequently compared against the properties of multi-dimensionality, process orientation and emergence. While the three theories showed similarity in a number of areas, they are regarded as different in that they emanate from totally different conceptual bases. Economic competition emphasises competition as its main driving force, niche theory advocates structure as the essence of competition, while R-A theory is solely based on the idea of comparative advantage of resources. Second, the paper tackles the troublesome practice of equating the notions competitiveness and competition, and argues that competitiveness is not the sole antecedent of competitive advantage. To properly characterize and understand competitive advantage in supply chains requires an apposite context within which supply chain competition is conceptualized. That is to say, a basic framework from which we may begin to analyse the characteristics of supply chains, is important and of which competition is a part of. Because supply chains are unique (Cooper and Ellram, 1993), it is important that the competitive advantage context within which supply chain is discussed truly reflects its nature and the competition emanating thereof. Quite like competition, competitiveness per se is a necessary but insufficient condition for achieving competitive advantage; it represents a static process while competition depicts more of a dynamic process in many of its characteristics. Thus, to achieve competitive advantage, the processes of competitiveness and competition must be complementary in this undertaking. The differentiation between competition and competitiveness in terms of supply chains’ achievement of competitive advantage serves to position competitiveness as input and competition as a mediator that acts to affect the outcome, competitive advantage. Based on the conceptual review, the findings of this paper with regards to identifying suitable theories with which we may begin to analyze supply chain vs. supply chain competition represent only the first steps towards identifying a suitable theory for supply chain competition. Further research into examining the suitability of the theories identified herewith (and possible addition of new theories) would be a good place to start dealing with the question. Actual conceptualizations and operationalizations of supply chain vs. supply chain competition using identified theories would be interesting and essential contributions to the development of theory for inter-chain competition. Moreover, a cogent basis for supply chain competition would serve to further veer the interest of business practitioners more towards supply chain management and the competition which it espouses. Although varying theories of competition exist, the competitive environment is constantly changing yet the mainstay of competition which is to compete, remains static. Regardless of the perspective with which competition is looked
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    www.ccsenet.org/ibr International BusinessResearch Vol. 4, No. 1; January 2011 ISSN 1913-9004 E-ISSN 1913-901282 at, there is a need for competing entities to physically engage in interaction, which is borne out of the need to obtain some sort of resources or service that are generally scarce. The way and manner this interaction occurs and the outcome of such interaction is important, as it can determine how the conceptualization of supply chain competition may be advanced. References Alley, T. R. (1982). Competition theory, evolution, and the concept of an ecological niche. Acta Biotheoretica, 31, 165-179. Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17, 99-120. Barney, J. B. (1986). Strategic factor markets: Expectations, luck and business strategy. Management Science, 32, 1231-1241. Best, M. H. (1990). The new competition. Cambridge, MA: Harvard University Press. Birch, L. C. (1957). The meanings of competition. American Naturalist, 91, 5-18. Cho, D. (1998). From national competitiveness to bloc and global competitiveness. Competitiveness Review, 8, 11-23. Christopher, M. (1992). Logistics and supply chain management. Pitman, London. Christopher, M. (1998). Logistics and Supply Chain Management: Strategies for Reducing Cost and Improving Service. Harlow: Prentice Hall, 2nd. ed. Colwell, R. K. (1999). Niche: A bifurcation in the conceptual lineage of the term. In Keller, E. F. Lloyd, E. A. (Eds) Keywords in evolutionary biology. Harvard College Press. Conner, K. Prahalad, C. K. (1996). A resource-based theory of the firm: Knowledge versus opportunism. Organization Science, 7, 477–501. Cook, P. (2003). Competition and its regulation in developing countries. In Kirkpatrick, C., Clarke, R. Polidano, C. (Eds.) Handbook on development policy and management. Edward Elgar, UK. Cooper, M. C., and. Ellram, L. M. (1993). Characteristics of Supply Chain Management and the Implications for Purchasing and Logistics Strategy. The International Journal of Logistics Management, 4, 13-24. D’Aveni, R. A. (1994). Hypercompetition: Managing the dynamics of strategic manoeuvring. Free Press, New York. Dunning, J. H. (1997). Alliance capitalism and global business. 1 ed. Routledge; London. Ferdows, K. De Meyer, A. (1990). Lasting improvement in manufacturing performance: In search of a new theory. Journal of Operations Management, 9, 168-184. Gardner, D. L. (2004). The supply chain vector: Methods for linking the execution of global business models with financial performance. J. Ross Publishing, Boca Raton, USA. Gertler, M. S., Barnes, T. J. (1999). New industrial geography: Regions, regulations and institutions. Routledge. Godfrey, K. (1983). Compartmental models and their applications. Academic Press, New York, NY. Goh, J. P. (2003). The resource advantage theory of competition: Implications for higher educational institutions in Singapore. Educational Research for Policy and Practice, 2, 93-106. Grant, R. M. (2004). Contemporary strategy analysis. Blackwell Publishers, MA, USA. Grant, R. M. (1991). A resource based perspective of competitive advantage: Implications for strategy formulation. California Management Review, 33, 114-135. Grinnell, J. (1917). The niche-relationships of the California thrasher. The Auk, 34, 427-433. Hagen, J. V. Immerfall, S. Eds (1998). Territoriality in the globalizing society: One place or none. Springer, New York. Harrigan, K. R. (1985). Vertical integration and corporate strategy. Academy of Management Journal, 28, 397-425. Hunt, S. D. Morgan, R. M. (1996). The Resource-Advantage Theory of Competition: Dynamics, Path Dependencies, and Evolutionary Dimensions. Journal of Marketing, 60, 107–114. Hunt, S. D. (2000). A general theory of competition: Resources, competences, productivity, economic growth. Sage Publications, USA.
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    www.ccsenet.org/ibr International BusinessResearch Vol. 4, No. 1; January 2011 Published by Canadian Center of Science and Education 83 Hunt, S. D. (2002). Foundations of marketing theory: Toward a general theory of marketing. M. E. Sharpe Inc. USA. Hunt S. D. (2007). Economic growth: should policy focus on investment or dynamic competition? European Business Review, 19, 274-291. Kirzner, I. M. (1997). Entrepreneurial Discovery and the Competitive Market Process: An Austrian Approach. Journal of Economic Literature, 35, 60–85. Krugman, P. (1994). Competitiveness: A dangerous obsession. Foreign Affairs, 73 (2), 28-44. Lambert, D. M. (2008). Supply chain management, In Lambert, D. M. (Ed.) Supply chain management: Processes, partnerships, performance. Supply Chain Management Institute, USA. Lancioni, R. A. (2000). New developments in supply chain management for the millennium. Industrial Marketing Management, 29, 1-6. Langdon, C. S. Sikora, R. T. (2006). Conceptualizing co-ordination and competition in supply chains as complex adaptive systems. Information Systems and E-Business Management, 4, 71-81. Loasby, B. (1982). The entrepreneur in economic theory. Scottish Journal of Political Economy, 29, 235-245. Lipczynski, J., Wilson, J. O. Goddard, J. (2005). Industrial organization: Competition, strategy, policy. Pearson Education, UK. Ma, Hao (2000). Competitive advantage and firm performance. Competitiveness Review, 10, 15-32. MacArthur, R. Levins, R. (1967). The limiting similarity, convergence and divergence of coexisting species. American Naturalist, 101, 377-385. Mentzer, J. T. (2004). Fundamentals of supply chain management: Twelve drivers of competitive advantage. Sage Publications, Inc. Metcalfe, J. S. (1998). Evolutionary economics and creative destruction. Rutledge, London. Metcalfe, J. S., Ramlogan, R. Uyarra, E. (2004). Competition, innovation and economic development: The instituted connection, In Cook, P., Kirkpatrick, C., Minogue, M. and Parker, D. (Eds.) Leading issues in competition, regulation and development. Edward Elgar Publishing, UK. Monczka, R. M., Handfield, R. B. Giunipero, L. (2009). Purchasing and Supply Chain Management. Cengage Learning, USA. Peteraf, M. A. (1993). The cornerstones of competitive advantage: A resource-based view. Strategic Management Journal, 14, 179-191. Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance. The Free-MacMillan Press. Porter, M. E. (1990). The competitive advantage of nations. Free Press, NY. Rice Jr., B. R. Hoppe, R. M. (2001). Supply chain vs. supply chain. The hype and the reality. Supply Chain Management Review Sept/Oct, 46-54. Rumelt, R. P. (1984). Toward a strategic theory of firm. In Lamb, R. (Ed), Competitive Strategic Management, Prentice Hall, Englewood Cliffs. Rumelt, R. P. (1987). Theory, strategy and entrepreneurship. In Teece, D. (Ed), The Competitive Challenge, Cambridge, MA: Ballinger. Schumpeter, J. A. (1942). Capitalism, Socialism, and Democracy. New York: Harper and Brothers. Silverman, D. (2000). Doing qualitative research. SAGE London. Storey, J. Emberson, C., Godsell, J. Harrison A. (2006). Supply chain management: Theory, practice and future challenges. International Journal of Operations Production Management, 26, 754-774. Telser, L. G. (2007). Competition, collusion, and game theory. Aldine Transaction, USA. Thomas, L. G. (2001). The Japanese pharmaceutical industry: The new drug lag and the failure of industrial policy. Edward Elgar, UK. Tilman, D. (1982). Resource competition and community structure. Princeton University Press.
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    www.ccsenet.org/ibr International BusinessResearch Vol. 4, No. 1; January 2011 ISSN 1913-9004 E-ISSN 1913-901284 Trochim, W. K. (1989). Outcome pattern matching and program theory. Evaluation and Program Planning, 12, 355-366. Wignaraja, G. (2003). Competitiveness strategy in developing countries. Routledge, London. Wilding, R. D. And Newton, J. M. (1996). Enabling time-based strategy through logistics- using time to competitive advantage. Logistics Information Management, 9, 32-38. Zhang, D. (2006). A network economic model for supply chain versus supply chain competition. Omega The International Journal of Management Science, 34, 283-295. Table 1. Difference between competition and competitiveness. Table 2. Competition theories against supply chain criteria. R-A theory Economic theory Ecological theory Multi-dimensionality 9 Process Orientation 9 9 9 Emergence 9 9 9 Figure 1. Competitive advantage
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    www.ccsenet.org/ibr International BusinessResearch Vol. 4, No. 1; January 2011 Published by Canadian Center of Science and Education 85 Figure 2. Relationship between competition, competitiveness and competitive advantage Figure 3. Supply chain competition pyramid
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    Paper 3 Supply chainvs. supply chain competition: An ecological niche-based approach Imoh Antai. Management Research Review, Volume 34, Issue 10; (2011). III
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    1 Supply Chain vs.Supply Chain Competition: A Niche-based Approach Imoh Antai Department of Supply Chain Management Corporate Geography, Hanken School of Economics, Arkadiankatu 22, PB 479, 00101 Helsinki, Finland Tel: +358 (0)40 3521 283; antai@hanken.fi
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    2 Supply Chain vs.Supply Chain Competition: An Ecological Niche-based Approach ABSTRACT Purpose This paper proposes a conceptualization of supply chain vs. supply chain competition using the ecological niche approach. It suggests a probabilistic methodology for evaluating competition from time series data, using overlap in the utilization of services provided by critical providers as a source of competition. Design/methodology/approach Literature on ecological niche theory and competition is explored and given the uncertainty that surrounds the operation and management of supply chains, a probabilistic approach to the analysis of supply chain vs. supply chain competition (via the Bayesian inference) is advocated. Simulated data are used to illustrate the methodology. Findings Should an area of overlap be identified, ecological niche theory provides a sensible approach to identifying the nature and extent of competition between supply chains. Applicability of the methodology is not limited to supply chain vs. supply chain competition. Research limitations/implications The data used for the analysis of competition between supply chains are computer generated and use a single niche dimension. Although this was done to merely test/validate the proposed model, the approach is somewhat oversimplified. However, the model is readily extendable to multiple niche dimensions. Original/value The proposed approach offers a simple and straight forward method of estimating competition in general, and supply chains vs. supply chain competition in particular. Attempts at using the niche theory of competition in this context are so far inconspicuous. Hence approaching competition in this way contributes to furthering our understanding of competitive interaction especially in supply chains, whose prospect is yet to be pointed out in literature. Keywords: Probabilistic modeling, Competition, Niche theory; Supply chain vs. supply chain competition, Ecological niche, Overlap. Paper type: Research paper
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    3 1. Introduction Competition betweensupply chains continues to attract increasing mention within supply chain management and related extant literature. The burgeoning use of the term within supply chain management underlines the need to understand the determinants of supply chain vs. supply chain competition. This understanding is invaluable if supply chains are to compete in a strategic manner. Outside the rhetorical exploitation of the term however, not much attention has been paid to its actual meaning and application with regards to supply chain management and how supply chains compete. While competitive advantage has been frequently used within supply chain management literature, different meanings have been implied by virtue of such use. Given the practice of using competitive advantage as a synonym for competition within supply chain management, normative strategies for achieving competitive advantage in supply chains have been proposed within supply chain management literature (e.g. Hassini, 2008; Markley and Davis, 2007; Fulconis and Paché, 2005; Giménez and Ventura, 2003). While they present useful insights to operating and managing supply chains, few attempts have been made to operationalize the nature of competition between supply chains and how supply chains will compete, e.g. as complex adaptive systems (Langdon and Sikora, 2006), use of economic network model (Zhang, 2006), and on network capabilities (Rice and Hoppe, 2001). However, most of these operationalizations propose model parameters that tend to be fixed. Within economics and industrial organization, the ample normative literature on competition provides few operational details for supply chain vs. supply chain competition. There is thus little analytical work in literature that studies competition between supply chains within a stochastic framework. This paper proposes a conceptual framework which uses overlap in resource utilization between supply chains as a source of competitive interaction. Here, competitive interaction is taken to mean the struggle (for essential resources) that results from the convergence of two or more like entities at some point along the supply chain. The stochastic nature of resource utilization by different supply chains calls for a probabilistic approach to competition. This is achieved here by utilizing probabilistic modeling via the popular Bayesian statistical inference. The methodology proposed attempts to circumvent the absence of a proper basis for testable proposition which has long limited the understanding of the mechanisms underlying competitive interactions. Anchoring on the ecological niche theory and the intuitive insights it provides into competition, this paper focuses on conceptualizing and subsequently operationalizing supply chain vs. supply chain competition. The paper is organized as follows. The following section, 2, discusses the methodological considerations of the paper and does this from the different concepts of competition and the ecological niche theory of competition. This section outlines the basic nature of competition within the ecological niche context. Next, section 3 introduces the method used and the data acquisition process is also described. Paper ends in section 4 where the results and method used in this paper are discussed within the context of supply chains. 2. Methodological considerations 2.1. Concepts of competition Several concepts of competition exist in literature. Concepts of competition emanating from economics, microeconomics to be precise, have dominated competition discussions in a variety of research areas. Classical, Neoclassical and Keynesian notions of competition have been applied in the development of normative strategies in management and industry over the
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    4 years. Neo-classical theoryfocuses on the price of goods and services sold and how market forces determine the quantity and quality of the goods sold in the market (Barney, 2001). Consequently, many view competition as a process, i.e. classical economists, where competition focuses on the behavior of actors, relating to technology and organizational changes. Others see it as a state of affairs, based on the idea of a state of market equilibrium, where market structure is the key element in this view of competition. As such, demand in terms of taste and preferences, is assumed to be homogenous for products in an industry (Hunt and Morgan, 1995). This is the neoclassical concept of competition (Cook, 2002). Between these two views of competition lies a variation of competition concepts that present in different forms of the two main views, e.g. the Industrial organization competition which roughly corresponds to the neoclassical view and Chamberlain competition which focuses more on the assets of the firm, its strategies and results of such strategies (Barney, 1986). Competition has also been viewed from a more constructive point of view, where it is seen as a social construction. Perceptions, which are social processes, of firms by a particular firm in terms of identifying competitors, can determine the actions it takes (Easton, 1998). If a firm perceives another firm as a competitor, attitudes towards that firm may change to reflect the fact that they essentially become adversaries. While actions towards other firms are not the only way of determining rivalry, it is a commonly used indicator within marketing theory. The Austrian and evolutionary views of competition consider competition as a dynamic process, where profits are in constant change, as a result of the constantly shifting environments and markets (Cook, 2002). This view of competition is similar to the Schumpeterian idea of competition (Barney, 1986) which also defines competition as a dynamic process, where firms struggle under a constantly evolving set of conditions and rules that continuously create dominating as well as follower firms. According to this view, growth results from the interaction among technology, market size and competition strategies as a result of the uncertainties manifested from these technological advancement, market shifts, and innovation (Barney 1986). Because competition is known to be one of the principal promoters of economic efficiency (Stiglitz, 1981; 184), it is known to encourage innovation to achieve better standards, goals and objectives. However, since the common denominator linking external market changes and internal firm activities are constantly changing (Stalk and Hout, 1990), activities that affect business processes are believed to be random processes, i.e. continuously changing. Thus, the strategies that may provide positive results in one period might not produce similar results in a different period. This is but one reason why a methodology that utilizes fixed parameters to operationalize supply chain vs. supply chain competition quickly becomes problematic. While varying notions of competition exist, the competitive environment is constantly changing, yet the mainstay of competition which is to compete, remains static. Regardless of the perspective with which competition is looked at, there is a need for interaction between entities. The way and manner this interaction occurs is of basic importance to this paper. Insight of this interaction is taken from ecological interaction between organisms, and is discussed in the following section. 2.2. Ecological niche perspective on competition The principles of competition are regarded to be universal, whether applied to biological or business competition (Henderson, 1983); as definitions of competition applied in the biological sciences have been known to depict business competition quite accurately. Similar concepts of competition are central to economic as well as ecological modeling (Eldregde, 1997; Nelson and Winter, 2002).
  • 639.
    5 Originally formulated byGrinnell (1917a), an ecological niche was first formally defined by Hutchison (1957) as the activity of species along every dimension of an n-dimensional abstract space describing the characteristics of the resources a species needs to survive. Building on this is the niche assembly theory of communities (e.g. Gause, 1934; Hutchison, 1957; Armstrong and McGehee, 1980), as well as the principle of competitive exclusion (Gause, 1934) which asserts that different species are able to live together in communities only if they differ sufficiently in their niche separation (i.e. in the way they use or consume available resources). The competitive exclusion principle formally states that no two organisms in a single species can occupy precisely the same niche, or exist on exactly the same limiting resources (Grinnell, 1917b, 1924; Henderson, 1983). With regards to this, organisms have to specialize, with some commanding a wider range of resources while others specialize in a much narrower array of resources. Ecologists define niches as fundamental or realized. A fundamental niche consists of the set of all environmental conditions in which the population can grow or at least sustain its members (Hannan and Freeman, 1989), whereas the realized niche is the narrower range of conditions within which an organism is constrained either by interaction with other organisms or by surrounding environmental factors. Because the niche assembly theory perspective stresses competition as the driving force of community structure of species, diversification is thus a means by which species may avoid competition. However, if such diversification does not provide a wide enough breadth of resources within its niche for species survival, species realized niches will tend to overlap (Milne and Mason, 1990). Niche breadth refers to the range of resources upon which a species exists (Milne and Mason, 1990), i.e. the resources within the reach of a specie that allows it to survive in the environment. Resource attributes can be discrete (e.g., food type, habitat type, etc) or continuous (e.g. prey size). The commonality of shared resources provides the basis for competition. Thus, larger overlap between niches corresponds to higher probability of competition between them. Further, the niche breadth is a parameter that attempts to measure how specialized or unspecialized a species is within its environment. It is measured by observing how they make use of the same set of limiting resources (for example, food, space, etc). Thus, overlaps in the utilization of the limiting resources create a potential for competition. The strength of the competitive effect exerted by a species on another species depends on the extent of overlap and the niche breaths of its competitors. Suppose that species share a resource with n discrete states. Then, following Levins (1968), the niche breath of species i can be evaluated as: 2 ,1 1/i i k n k B p¦ (1) Where kip , is the proportion of the total resources utilized by species i which are in resource state k. Suppose a species i utilizes three food sources A, B, and C amongst a total of 5 possible states in proportions of 40%, 30% and 30%, (for supply chains, it might be provider utilization or any other relevant aspect that can induce competition), then the niche breadth can be evaluated using equation (1) as
  • 640.
    12 2 2 0.400.30 0.30 2.94iB . Levins’ niche overlap measure can be standardized on a scale from zero to one as
  • 641.
  • 642.
    1/11 ~ 2 ¦ npBiii (Hurlbert 1978; Krebs 1984). For species i in the above example, the standardized niche breadth measure is 485.0 ~ iB .
  • 643.
    6 The niche overlapmeasures the degree to which species overlap in their utilization of resources, i.e. a measure of how different species partition their resources. Pianka (1974) proposed the following measure of niche overlap between species i and j: ¦ ¦ ¦ n k n k n k kjkikjkiji ppppM 1 1 1 2 , 2 ,,,, / (2) where, as earlier defined, ,i kp is the proportion of resource k, of the total available resources, used by species i. ,i jM evaluates probability that two species would use resources in the same state to the average probability that any of them would avoid the other (the denominator is in fact the geometric mean). ,i jM ranges from 0 (no resource used in common) to 1 (complete overlap). Note that the formulae given for the niche characteristics (niche breadth and overlap) are for resources with discrete states; but they can also be applied to continuously distributed resources with integrals in place of sums and vice-versa. So, the continuous versions of (1) and (2) are respectively ³ dxxfB ii )(/1 2 and ³³³ dxxfdxxfdxxfxfM iijiji )()(/)()( 22 Under Gaussian resource utilization curves (RUCs); MacArthur Levins (1967) derived the following niche overlap measure: ^ `2 2 2 2exp ( ) ( )/i j i j i jM B BP P (3) where iP = the mode of the resource utilization curve (RUC) of species i and jP is the mode of the RUC for species j. If the niche breadths are equal i.e. i jB B B, then 2 2 ,exp( /4 )i j i jM d B , where , | |i j i jd P P (Begon et al. 1996). Along the lines of MacArthur Levins (1967) and Levins (1968), the competitive effect a species j has on species i induced by the overlap in the utilization of a single critical resource is defined as: 2 i j ii j f (x) f (x) dx f (x) dxĮ = /³ ³ (4a) Intuitively, ,i jD evaluates the probability that species i would use the same resource as species j, relative to the probability that it would avoid species j. For resources distributed in discrete states: ¦¦ k kikjk kiji ppp 2 /D (4b) For supply chains, competition may result from an overlap in many areas, here we use overlap in provider utilization for illustration. From the continuous versions of competition coefficient i jĮ as defined in (4) and niche breadth index, it is clear that the competition coefficient can be related to the overlap measure through
  • 644.
    7 i j ij i jM B B/Į = (5) Equation (5) which actually gives the competition coefficient between the competing entities implies that, all else being equal, narrow niche (specialization) tend to provide better competitive efficiency in areas where competitors overlap. The extent of niche overlap expressed in numeric values is known as the competition coefficient (Levins, 1968). -4 -2 0 2 4 0.00.10.20.30.4 Resource spectrum RUC dij Species i Species j Figure 1: Configuration of two competitors’ niches. The two RUCs are Gaussian with means 0iP and 1jP , and standard deviations used as surrogates for niche breadths 45.0iB and 60.0jB . The niche overlap is 41.0, jiM , and the competition coefficients result from equation 5 as 35.0, jiD and 47.0,ijD . The connection between niche configuration and the intensity of competition can be illustrated with Figure 1 (Mutshinda and O’Hara, 2010), which displays the niches of two species’ (i and j) RUCs along a single limiting axis with continuous resource states. The two RUCs are Gaussian with means 0iP and 1jP , and standard deviations used as surrogates for niche breadths 45.0iB and 60.0jB . The overlap between the two species’ niches derived is estimated from equation (3) as 41.0, jiM , and the competition coefficients result from equation (5) as 35.0, jiD and 47.0,ijD . So, the competition is asymmetric: species i is less affected than species j since species j has a wider niche as discussed above. Figure 2 provides a three-dimensional illustration of the connection between niche configuration and the intensity of competition experienced by species i from species j (Mutshinda and O’Hara, 2010). The x-axis is the niche overlap, the y-axis represents the ratio of the niche breaths of species species i from species j, respectively, and the z-axis is the competitive effect of species j on species i.
  • 645.
    8 N iche overlap 0.0 0.2 0.4 0.6 0.8 1.0 M (i) / M (j) 0.4 0.6 0.8 1.0 Competitioncoefficient 0.0 0.2 0.4 0.6 0.8 1.0 Figure2: Three-dimensional illustration of the connection between niche configuration and the intensity of competition experienced by species i from species j. The x-axis is the niche overlap, the y-axis represents the ratio of the niche breaths of species i from species j, respectively, and the z-axis is the competitive effect of species j on species i. 2.3. Conceptualizing supply chain vs. supply chain competition The ecological niche theory is an important as well as a relevant theoretical anchor for the study of competition between supply chains because it provides a shared attribute in the fact that competition between entities occur from a demand for limited resources. This is logical. In the same vein, it depicts that competition occurs within single entities and it can also take place between groups of entities, which is also the case in supply chains where competition can readily takes place between service providers e.g. OEMs, logistics firms, etc, bidding to win a certain contract. But it can also take place between the groups of entities that make up
  • 646.
    9 the supply chain.This natural competition is the foundation upon which any form of strategic competition must build and modify (Henderson, 1981). For the purpose of conceptualization, it is useful to think of supply chains as competing species, where the niche can be likened to the industry in which competition occurs between similar supply chains struggling for similar resources. Hence, for two supply chains to be competitors, they must target similar resources critical to their survival to a significant extent. Resources can be taken to be supplies (material or non-material) supply chains depend on to carry on business. The niche breadth of a supply chain would then represent the range of resources commonly utilized by supply chains in a particular industry, which such a supply chain depends on for business continuity. It should however be noted that supply chains are not species. The concept of species competition is used for illustrative purposes to clarify the nature of the interactive relationship resulting from the need for similar critical resources and the extent of the potential competitive interaction. While Biologists have for years developed a sensible conceptual framework for competition, most attempts at conceptualizing supply chain vs. supply chain have overlooked this thoughtful approach in contrast with other fields like marketing (e.g. Milne and Mason, 1990). Anchoring within the ecological niche theory, competition between supply chains would seek to identify the relevant resources that supply chains commonly share and the mechanisms with which these resources are organized. In identifying resources, an account of loss and gain between the competing entities is essential to understanding competition within the niche theory context. In order to do this, a basis upon which competition is carried out must be determined. As can be recognized, there are several dimensions that are essential for the functioning of an effective and efficient supply chain. For example quality, speed, dependability, service levels, etc, are all dimensions upon which supply chains may technically compete. These dimensions, as in the niche theory, may be varied and numerous. Conceptualizing supply chain competition within the framework of ecological niche theory pictures competitive supply chains as a group of entities originating from a certain industry and competing as one cohesive entity. This competition, and indeed the competing supply chains are set within an environment that cannot be controlled by the competitors that operate within it. Thus, if we assume the supply chain environment (i.e. the supply chain and its operations and interactions with both primary and supporting members) to be the market space within which competition takes place and take supply chains to be the entities that take part in this competition. It then follows that if supply chains within this market place must exist and coexist, these supply chains must be in some kind of equilibrium (Henderson, 1981, 1983). This equilibrium is however not one in which all competitors are equally well suited and obtain equal benefits from competing. But one in which the weakest of the competitors must differentiate itself in its resource use/acquisition pattern, and hence the quality of its product offerings, innovative ideas, etc. That is to say, the weakest competitors must diversify, or find new ways of staying competitive, and by staying competitive means supply chains continuously have to compete for resources, pursue cost reduction, become and remain innovative and hence encourage value creation. This is very much in line with the ecological niche perspective (e.g. Gause, 1934; Armstrong and McGehee, 1980). Thus, we would therefore hypothesize the following: x Technically, a positive-sum competition (with reference to the industry) Supply chain vs. supply chain competition is positive-sum, because when value improves or is created, all members and customers benefit (Porter and Teisberg, 2006: 33; Martinez, 2003). A positive sum competition emphasizes positive aspects of free markets such as invention, innovation and entrepreneurship. Competitors should be
  • 647.
    10 able to benefitfrom competitive interaction by increasing internal value to members as well as delivering better value to its end customers. Because of the availability of uncommitted resources in the competition environment, it is not possible for competitors to operate on a zero-sum basis. The opportunity for diversification that exists within the ecological niche theory ensures that competition between supply chains would remain a positive sum. x Competition is dynamic and constantly changing Competition is a dynamic process because it emphasizes that information concerning market behavior and performance is constantly changing. The ecological niche theory states that the structure of the industry is determined by competition, where the fittest remain at the top of the competitive scale. It also suggests that competitive interactions between competing supply chains will generate fluctuations in the structure of the industry. Because different firms are positioned at different competitive levels within the industry with respect to their supply chains, information on end-customer requests which are constantly changing as a result of changing tastes and preferences ensures that different supply chains are positioned to take advantage of such changes when it is beneficial. However, the demand for value-based end products from end-customers remains constant. x Similarity of competing supply chains If supply chains are to compete against each other, then they must have certain characteristics in common. Setting the competition within the industry does not take away from the global nature of the supply chain; it merely emphasizes the similarity between the supply chains that enables competition to take place between them which is done within the industrial setting. Moreover, in order to fully espouse the ecological niche concept of competition, the similarity of competing supply chains within a given industry is necessary and sufficient to carry on supply chain vs. supply chain competition. Necessary in that competition between supply chains in a particular industry should be stronger than the competition between two supply chains from two different industries (Figure 3) and sufficient because the competition coefficient between competing supply chains of a given industry must be 1, hence emphasizing the positive sum nature of competition. Industry 1 Figure 3: Requisite strength of interaction between supply chains Weak Strong Strong Industry 2
  • 648.
    11 x Competitive interactionof competitors Competitive interaction between supply chains as conceived in this framework will take place at the points where supply chains have to share or use common resources that are critical to their strategy along the supply chain (Figure 4). While concerns about the potential difficulty of such an interactive structure for competition purposes has been expressed (see e.g. Rice and Hoppe, 2001), it is however, pertinent to note that it is inevitable that overlaps of service providers between different competing supply chains will occur. Figure 4: Conceptualization of competition between supply chains This is because the universe for service providers and original equipment manufacturers (OEMs) is expected to get smaller (Cummins, 2001). It is predicted that as product and information technology advances, improving process management across the supply chain, Tier 1 and Tier 2 suppliers, component manufacturers and assembly companies are expected to shrink (Cummins, 2001; Financial Times, 2000). As suppliers and service providers become bigger and operate on larger scales because of mergers and strategic alliances, less are able to remain in the market. As such, even if competing supply chains share or use the same suppliers or service providers, there is still a possibility for competition between supply chains. In fact, it is based on the very real detail that supply chains share suppliers and service providers that such a conceptualization of competition between supply chains is possible here. An example of the competition points depicted in figure 4 could be Intel, the leading developer of silicon and microchip technologies and who supplies computer manufacturers like Dell, HP, Toshiba, Sony, etc. Because Intel and Advanced Micro Devices (AMD, the other large semi-conductor and processor developer) manufactures the processors used to run the computers these companies make, their supply chains would most likely have to go through either of these two suppliers. However, when resource capacity is restricted (critical and relatively scarce) at such points along the supply chain, there is a potential for the occurrence of conditions that can lead to competition. Competition points depicted in fig. 4 may occur anywhere along the supply chain and can arise multiple times along an organization’s supply chain. Supply chain 1 Supply chain 2 Competition points Upstream Downstream
  • 649.
    12 Founded on theconceptualization of supply chain vs. supply chain competition proposed here, its operationalization may be carried out on the basis of critical resources that are necessary to its ability to create value for end customers and its members. Resources in this sense can include all input (material, tangible or intangible) used to convert a product from its raw material form to the finished products customers can get value from. Thus, resources may include raw materials, knowledge, information, skills and expertise, access to service providers, etc. A form of competition that is suitable to supply chain vs. supply chain competition analysis is proposed. Even though the concept of competition focuses on value as the ultimate response, operationalization should allow for a comprehensive way of accounting for the impact of one supply chain on another in (terms of their use of limiting resources) as well as the impact of the environment on the supply chains. 3.0. Material method Competition between supply chains can be modeled on the foundation of the niche theory of species. The point where two or more supply chains overlap creates a potential for competition. In order to achieve this, the niche breadths of the supply chains and overlaps between them need to be determined. The competitive effects of supply chains on each other can be evaluated from temporal data on resource utilization using a probabilistic approach. 3.1. Probabilistic modeling The use of probabilistic modeling with erratic components is not novel in literature (e.g. see von Neumann, 1954). Bayesian inference (Gelman et al., 2003) is a probabilistic model describing the joint probability function over a set of random variables. It is an alternative approach to statistical inference that is increasingly used to evaluate models and hypotheses. It starts with the formulation of a model,
  • 650.
    |p y Tthat is assumed to describe the data conditionally on the unknown parameter of interest, T 4 . A Prior distribution,
  • 651.
    p T ,is subsequently defined to embody the analyst’s state of knowledge about the plausible parameter values before observing the data. As data becomes available, the likelihood of the data
  • 652.
    |p y T, is used to update the prior distribution(knowledge) in order to obtain a more accurate posterior distribution,
  • 653.
    |p yT ,by means of the Bayes' theorem as:
  • 663.
    , | | | | py p y p p y p p y p y p y p d T T T T T T T T T 4 v ³ (6) The lack of relevant prior information about plausible parameter values leads to the use of so- called non-informative or “vague” priors such as uniform distributions on large compact regions or centered normal distributions with large variance. The posterior distribution is the target of the Bayesian inference as is the case with similar studies (e.g. Gottschalk et al, 2010; Mutshinda, et al., 2008) exploring the fact that it conveys all necessary information about the parameter of interest. Bayesian conclusions are essentially made in terms of probabilistic statements about plausible parameter values or outcomes of future observations. In many practical problems, uncertainty can be modeled at different stages via a hierarchical Bayesian formulation. A hierarchical Bayesian (HB) model is one in which parameters in the likelihood depend on other parameters not mentioned therein, which themselves require priors that may depend on new parameters; the process coming to an end when no new parameters are introduced. The HB modeling provides a powerful means for representing complex phenomena through a series of simple structures.
  • 664.
    13 The Bayesian methodologyis necessary within areas of uncertainty such as competition between supply chains in number of ways. First, the use of prior information allows other or prior information to be incorporated into the analysis. Good prior information from prior studies, prior knowledge or prior collected data. Second, the use of prior information can minimize the need for an overly large sample and sometimes the lack of data. Third, because of the flexibility built into the methodology, it is capable of dealing with missing data quite well and can also offer flexibility in the design and analysis of a study. Fourth and most importantly, it can serve as a way of validating a proposed model for onward use in real situations. 3.2. Data generation Here we assume that competition is induced by overlap in the use of a limited number of critical (essential) providers. The data comprise of time series of provider use per 100 transactions. Let ,i ty denote the S dimensional vector including the number of times supply chain i has used each of the S plausible providers during time period t. We assume that ,i ty is sampled from a multinomial distribution with parameter
  • 665.
    ,1 ,,...,i ii ST Tș where ,0 1i jT and ,1 1 S i jj T¦ . That is,
  • 666.
    , ,1 , , |( ) S i t i jj i t jy p T Tv –y . (7) Supply chain 1 010203040 Supply chain 2 Supply chain 3 01020304050 Povider 1 Povider 3 Povider 5 Supply chain 4 Povider 1 Povider 3 Povider 5 Provideruse(in%)
  • 667.
    14 Figure 5: Boxplotsof simulated data for the utilization of 5 providers (in %) across 4 competing supply chains over 50 time periods. The utilization probabilities for supply chain i, iș , were to (0.25, 0.15, 0.10, 0.30, 0.20) for supply chain 1, (0.10, 0.25, 0.20, 0.40, 0.05) for supply chain 2, (0.40, 0.20, 0.25, 0.05, 0.10) for supply chain 3, and (0.20, 0.10, 0.15, 0.10, 0.45) for supply chain 4. The multinomial distribution generalizes the well-known binomial distribution to more than two categories. To obtain the samples, we fixed the parameter iș for different supply chains, as (0.25, 0.15, 0.10, 0.30, 0.20) for supply chain 1, (0.10, 0.25, 0.20, 0.40, 0.05) for supply chain 2, (0.40, 0.20, 0.25, 0.05, 0.10) for supply chain 3, and (0.20, 0.10, 0.15, 0.10, 0.45) for supply chain 4. The data from provider use per 100 transactions over 50 time-periods was generated from multinomial distribution with the assumed iș . Figure 5 displays boxplots of the simulated data. 3.3. Model fitting Fitting a model with a Bayesian approach requires priors to be specified over the model parameters. Here, the conjugate distribution was placed on iș (a generalization of the Beta distribution to more than two categories). The probability density function of the S- dimensional Dirichlet distribution with parameter vector Į , Dir( )Į , has the form
  • 668.
    1 1 | ( ) S ijj j p D T v –ș Į (8) A choice of prior for the hyper-parameters iĮ (parameters of a prior distribution are called hyper-parameters) is
  • 669.
    1,...,1iĮ , somekind of generalization of the uniform prior. Prior information may be incorporated through the hyper-parameters iĮ . However, estimation of such a hierarchical model will necessitate a resort to numerical methods such as Markov chain Monte Carlo (MCMC) (Gelman et al., 2003). In principle, MCMC can be implemented through available software such as OpenBUGS (Thomas et al. 2006). It should be noted that Win-/Open-BUGS do not allow for the parameters of the Dirichlet to be specified as stochastic nodes. One way around this is to note that if for k=1,….G , )1,(~ kk Ga JG where ),( vuGa denotes the gamma distribution with shape parameter u and inverse scale parameter v, then the vector with elements ¦k kk GG / is Dirichlet with parameter vector ),....( 1 sJJJ . So the following hierarchical construction (in OpenBUGS form) should allow sampling from the parameters Į for different supply chains: for (k in 1:S){ p[j,k]-delta[j,k]/sum(delta[j,]) delta[j,k]~dgamma(gamma[k], 1) Analyses carried out in this paper were based on the non-informative prior )1,...,1(iD for each supply chain. The model was fitted to the simulated data by MCMC through BUGS. Three MCMC were run for 60000 iterations and the first 15000 iterations were discarded as burn-in, and the remainder thinned to every 15th observation, yielding 9000 samples for each parameter. The convergence of the chains was assessed by visual inspection. The mixing of the chains is apparent from Figure 6.
  • 670.
    15 Figure.6. Trace plotsof posterior proportions of provider utilization corresponding to supply chain 1. The plots illustrate the good mixing of the MCMC as the chains fully explore the parameter space. 3.4. Results The model turned out to fit the simulated data well, with estimated values close to the “true” values used to simulate the data. Figure 6 displays trace plots of posterior proportions of provider utilization by supply chain 1. The plots illustrate the good mixing of the sampler as
  • 671.
    16 the chains fullyexplore the parameter space. The full set of results is given in Table 1 where posterior means are also given, along with standard errors. The posterior means were used to estimate the competition coefficients between the four supply chains based on overlap in provider use. Table 2 gives the estimates of competition coefficients for the fitted model using equation (1) for niche breadth, equation (2) for niche overlap and equation (5) for competition coefficients. These are identical to their counterpart derived from the model parameters used to simulate the data, corroborating the ability of the model to uncover competitive interactions, should the relevant domains of competitive interactions be identified. Table 1 Posterior summaries for provider use proportions across supply chains. Supply Chain True Value 2.5 Pc Posterior mean 97.5 Pc Provider 1 SC 1 0.25 0.22 0.24 0.26 SC 2 0.10 0.09 0.1 0.107 SC 3 0.40 0.38 0.4 0.41 SC4 0.20 0.188 0.2 0.21 Provider 2 SC1 0.15 0.13 0.15 0.16 SC2 0.25 0.23 0.24 0.257 SC3 0.20 0.185 0.2 0.207 SC4 0.10 0.089 0.1 0.105 Provider 3 SC1 0.10 0.09 0.11 0.12 SC2 0.20 0.19 0.21 0.217 SC3 0.25 0.24 0.25 0.265 SC4 0.15 0.13 0.15 0.156 Provider 4 SC1 0.30 0.28 0.29 0.31 SC2 0.40 0.38 0.40 0.409 SC3 0.05 0.05 0.5 0.06 SC4 0.10 0.09 0.10 0.109 Provider 5 SC1 0.20 0.19 0.21 0.21 SC2 0.05 0.048 0.05 0.060 SC3 0.10 0.08 0.1 0.103 SC4 0.45 0.44 0.45 0.46 The estimated competition coefficients are quite high, and this may be due to the fact that the simulated data assumed approximately equal niche breadths (0.86 for SC1, 0.66 for SC2 and SC3, and 0.63 for SC4), with large overlaps in provider utilization across supply chains (0.85 for SC1-SC2, 0.76 for SC1-SC3, 0.79 for SC1-SC4, 0.60 for SC2-SC3, 0.49 for SC2-SC4, and 0.67 for SC3-SC4). However, in real-world systems, competing entities tend to differ with regard to both the breadths of resource utilization curves and therefore the overlaps therein. Table 2 Estimates of competition coefficients for the fitted model. SC 1 SC 2 SC 3 SC 4 SC 1 1 0.97 0.87 0.92 SC 2 0.74 1 0.60 0.50 SC 3 0.67 0.60 1 0.69 SC 4 0.67 0.48 0.65 1
  • 672.
    17 4.0. Discussion andconclusion Understanding the fundamental mechanisms that generate competition between interacting systems is an issue of increasing interest in a variety of areas. In supply chain management, this knowledge is crucial to the design of effective management and control strategies. This paper took up the conceptualization and operationalization of supply chain vs. supply chain competition, using the ecological niche theory to characterize and understand competition. To current knowledge, the use of the ecological niche concept of competition to conceptualize and operationalize competition in the supply chain context is unique. The ecological niche approach provides a basic framework from which competition can be taken up, and this is not particular to supply chain interactions. It is however worth emphasizing that an understanding of the way competition can arise, i.e. the determination of relevant niche axes, is critical. Herein, we have used for illustrative purposes overlap in supplier utilization as a source of competition between supply chains. Because supply chains have certain characteristics that make them unique (Cooper and Ellram, 1993), it is important that the context within which supply chains compete with each other be selected to reflect the nature and competition emanating thereof. While it is emphasized that overlap in resource utilization is required for competition; it need not necessarily lead to competition unless critical resources are in short supply (Colwell Futuyma 1971). Because these critical supplies and/or products cannot be found everywhere along the supply chain, it is essential that the conceptualization of competition between supply chains consider the points where these critical services/products are provided along the supply chain. Having said that, it is pertinent to note that issues regarding the fact that organizations and firms whose supply chains compete along the supply chain but not in the market and vice versa, arise. While this is possible, it must be noted that although supply chain vs. supply chain competition is picking substantial interest, conventional competition remains strong within management and economic literature. As such, once a product gets to the market, the mechanisms governing the process of supply chain vs. supply chain competition ends and that of market competition takes over. Thus, the essence of supply chain competition is essentially to create the combination of economic /social value and usability of a product desired by customers before it gets to the market. That way, both ends (supply chain and the market) are able to work together to ultimately create value for end-customers. Hence, the implication of the niche/overlap principle used here is that competitors with broader niches (generalists) tend to avoid competition by switching to alternative options i.e. the so-called diversification strategy, which makes them less competitively efficient but better able withstand competition by selecting alternative options. The paper has demonstrated how temporal data on the utilization of limiting resources and overlaps therein can be used to evaluate competition between interacting entities. The ecological niche theory employed and results obtained here suggests that entities with narrower niches (i.e. specialists) are likely to be more competitively efficient, but supply chains with wider niches can better withstand competition by exploiting a broader range of the niche. This finding has been documented in supply chain management literature, usually reflecting in the choices supply chains make with regards to its suppliers. For example, Kekre et al. (1995) showed that within procurement strategy along supply chains, dealing with fewer suppliers significantly improved quality. Similar results have been generally reported in supply chain literature as results to studies of the supplier base and their effect on quality, but rarely has the reason for this been shown. This formulation of competition presents an analytical explanation as to why these results are continuously obtained in such studies within supply chain management. Further areas of research could look into the possibility of supply chain competition based on interaction may be actually accomplished in reality.
  • 673.
    18 The Bayesian approachused here most efficiently accounts for uncertainty, meaning that many aspects such as environmental factors can be incorporated into the model. Resources are dynamic and so is competition. This temporal aspect needs to be taken into account by using time series data as suggested in this paper. Information on the state of competition between supply chains can be continually updated in the proposed framework via Bayes’ rule as new data are obtained. It should be noted that just as ecological niches are in practice multidimensional, supply chains versus supply chain competition can occur on many different axes. E.g. speed, quality, etc. Overall, the theory provides a useful way of expressing how interactions between supply chains can bring about competition and the technique provides a simple and straightforward way of estimating such competition.
  • 674.
    19 5.0. References Armstrong, R.A. and McGehee, R. (1980), “Competitive exclusion”, American Naturalist, Vol. 115 No. 2, pp. 151-170. Barney, J. B. (1986), “Strategic factor markets: Expectations, luck and business strategy”, Management Science, Vol. 32 No. 10, pp. 1231-1241. Barney, J. B. (2001), “Resource-based theories of competitive advantage: A tern-year retrospective on the resource based view”, Journal of Management, Vol. 27 No. 6, pp. 643-50. Begon, M., Mortimer, M. and Thompson, D. J. (1996), Population ecology: A unified study of animals and plants, 3rd edition Blackwell Science, UK. Colwell, R. K., Futuyma, D. J. (1971), “On the measurement of the niche breadth and overlap”. Ecology, Vol. 52 No. 4, pp. 567-576. Cooper, M. C., and. Ellram, L. M. (1993),“Characteristics of Supply Chain Management and the Implications for Purchasing and Logistics Strategy”, The International Journal of Logistics Management, Vol. 4 No. 2, pp. 13-24. Cook, P. (2002), “Competition and its regulation: Key issues”, Annals of Public and Cooperative Economics Vol. 73 No. 4, pp.541-558. Cummins, A. (2001), “As I see it: Supply chain vs. supply chain”, Automotive Industries, June, 2001. Easton, G. (1998), “Competition and marketing strategy”, European Journal of Marketing, Vol. 22 No. 2, pp. 31-49. Eldregde, N. (1997), “Evolution in the marketplace”, Structural Change and Economic Dynamics Vol. 8 No. 4, pp.385-395. Financial Times, 29th Feb 2000. Fulconis, F. and Paché, G. (2005), “Exploiting SCM as a source of competitive advantage: The importance of cooperative goals revisited”, Competitiveness Review: An International Business Journal incorporating Journal of Global Competitiveness, Vol.15, No. 2, pp. 92-100. Gause, G. F. (1934), The struggle for existence. Hafner Publishing Company, NY. Gelman, A., Carlin, J. B., Stern, H. S. and Rubin, D. B. (2003), Bayesian Data Analysis. Second Edition. Chapman Hall, London. Giménez, C. and Ventura E. (2003), “Supply chain management as a competitive advantage in the Spanish grocery sector”, International Journal of Logistics Management Vol.14 No. 1, pp. 77-88. Gottschalk, F., Scholz, R. W., and Nowack, B. (2010), “Probabilistic material flow modeling for assessing the environmental exposure to compounds: Methodology and application to engineered nano-TiO2 particles”, Environmental Modeling and Software, Vol. 25, No. 3, pp.320-332. Grinnell, J. (1917a), “Field test of theories concerning distributional control”. American Naturalist, Vol. 51, pp.115-128. Grinnell, J. (1917b), “The niche-relationships of the California thrasher”. The Auk Vol. 34 No. 4, pp. 427-433. Hannan, M. T. and Freeman, J. (1989), Organizational ecology. Harvard University Press, USA. Hassini, E. (2008), “Building competitive enterprises through supply chain management”. Journal of Enterprise Information Management Vol. 21 No.4, pp. 341-344.
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    20 Henderson, B. D.(1981), “Understanding the forces of strategic and natural competition”, Journal of Business Strategy, Vol. 1 (Winter), pp. 11–15. Henderson, B. D. (1983), “The anatomy of competition”, Journal of Marketing, Vol. 47 No. 2, pp. 7-11. Hutchison, G. E. (1957), “Concluding Remarks”, Cold Spring Harbour Symposium of Quantitative Biology Vol. 22: pp. 415-427. Hunt, S. D and Morgan, R. M. (1995), “The competitive advantage theory of competition”, Journal of Marketing, Vol. 59 No. 2, pp. 1-15. Hurlbert, S. H. (1978), “The measurement of the niche overlap and some relatives”, Ecology, Vol. 59 No. 1, pp. 67-77. Kekre, S., Murthi, B. P.S., Srinivasan, K. (1995), “Operating decisions, supplier availability and quality: An empirical study”, Journal of Operations Management, Vol. 12, No. 3- 4, pp. 387-396. Krebs, C. J. (1989), Ecological methodology, Harper Collins, New York. Langdon, C. S. and Sikora, R. T. (2006) “Conceptualizing co-ordination and competition in supply chains as complex adaptive systems”, Information Systems and E-Business Management Vol. 4, No. 1, pp. 71-81. Levins, R. (1968), Evolution in changing environments: Some theoretical explanations. Princeton University Press, Princeton, New Jersey, U.S.A. MacArthur, R. H. Levins, R. (1967), “The limiting similarity, convergence and divergence of coexisting species”, American Naturalist, Vol. 101 No. 921, pp. 377-385. Markley, M. J. and Davis, L. (2007), “Exploring future competitive advantage through sustainable supply chains”, International Journal of Physical Distribution Logistics Management Vol. 37 No. 9, pp. 763-774. Martinez, V. (2003), Understanding Value Creation: The Value Matrix and the Value Cube, PhD Thesis Strathclyde University. Milne, G. R. and Mason, C. H. (1990), “An ecological niche theory approach to the measurement of brand competition”, Marketing Letters Vol. 1, No. 3, pp. 267-281. Mutshinda, C. M. and O’Hara, R. B. (2010), “Integrating the niche and neutral perspectives on community structure and dynamics”, Oecologia DOI: 10.1007/s00442-010-1831-x. Mutshinda, C. M., Antai, I., and O’Hara, R. B. (2008), “A probabilistic approach to exposure risk assessment”, Stochastic Environmental Research and Risk Assessment, Vol. 22, No. 4, pp. 441-449. Nelson, R. R. and Winter, S. G. (2002), “Evolutionary theorizing in Economics”, Journal of Economic Perspectives Vol. 16 No. 2, pp. 23-46. Pianka, E. R. (1974), “Niche overlap and diffuse competition”, Proceedings of the National Academy of Science USA Vol. 71 No. 5, pp. 2141-2145. Porter, M. and Teisberg, E. O. (2006), Redefining healthcare: Creating value based competition on results. Harvard Business School Press, U.S.A. Rice Jr., B. R. and Hoppe, R. M. (2001), “Supply chain vs. supply chain. The hype and the reality”, Supply Chain Management Review Sept/Oct, pp. 46-54. Stiglitz, J. E. (1981), “Potential Competition May Reduce Welfare”, American Economic Review, Vol. 71 No. 2, 184–189. Stalk, G., and Hout, T. (1990), Competing Against Time: How Time-Based Competition Is Reshaping Global Markets. The Free Press, New York. Thomas, A., O' Hara, R. B., Ligges, U. Sturtz, S. (2006), “Making BUGS Open”, R News Vol. 6, pp. 12-17.
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    21 Von Neumann, J.(1954), “Probabilistic logics and the synthesis of reliable organisms from unreliable components”, Shannon, C. E. and McCarthy, J. (Eds), Automated Studies, Princeton University Press, Princeton, N.J. Zhang, D. (2006), “A network economic model for supply chain versus supply chain competition”, Omega The International Journal of Management Science, Vol. 34 No. 3, pp. 283-295.
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    IV WĂƉĞƌ ϰ ,QWHUDFWLRQ $QHZ IRFXV IRU VXSSO FKDLQ YV VXSSO FKDLQ FRPSHWLWLRQ ,PRK $QWDL +DQV 2OVRQ Submitted Manuscript (International Journal of Logistics Research and Applications, IJLRA).
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    Interaction: A newfocus for supply chain vs. supply chain competition Imoh Antaia1 and Hans Olsonb a Department of Supply Chain Management Corporate Geography, Hanken School of Economics, Arkadiankatu 22, P.B. 479, 00101 Helsinki, Finland Tel: +358 (0)40 3521 283; antai@hanken.fi; b Brains and Bricks Research Centre University of Linkoping, 60174 Norrkoping, Sweden. hans.olson@opcab.se 1 Corresponding author. Email: antai@hanken.fi Submitted at the International Journal of Logistics Research and Applications (IJLRA).
  • 681.
    Abstract Although the supplychain competition concept has emerged during the past decade as the way firms will compete in future, there is scant academic research on actual mechanisms through which such competition can occur. This paper proposes interaction as the means by which competition between supply chains may be undertaken. Proposing interaction as a means of competition, it undertakes a case study of a Swedish logistics center to illustrate and develop the idea of interaction for supply chain vs. supply chain competition. Findings suggest that points of interaction for supply chains may present enough breadth to assume a role in the changing focus of competition within business and corporate literature. Most studies dealing with competition between supply chains fall short of exploring the link between theory and corresponding practice of this evolving competition mode. Such a link is provided via interaction and its illustration with the use of logistics centers. Keywords: Logistics center, Interaction, Competition, Supply chain vs. Supply chain, Case study, Pattern matching. Paper type: Research paper
  • 682.
    1.0. INTRODUCTION As firmsbecome more specialized, they become increasingly aware of the growing interdependencies and opportunities that exist between organizations, suppliers and customers (Watts and Hahn, 1993; Bowersox and Closs, 1996; De Souza et al, 2000). Organizations and firms have become more conscious to the fact that they cannot compete with other firms in isolation of their suppliers and other units in the supply chain (Lummus and Vokurka, 1999; Banomyong, 2005). Acknowledging that competition between supply chains represents the future is no longer novel in supply chain management literature. Rather, what is of interest to supply chain management scholars is how this process of competition between supply chains is expected to be carried forward. As supply chain competition and its burgeoning development continue to attract global attention, logistics centers have come under a new spotlight. It has been amply shown that transportation and logistics vary from location to location. For example, it accounted for about 20-30% of GDP in China (Huang and Kadar, 2002; Lai et al., 2005), 7.7% of GDP for the United States (Wilson, 2010) and between 10-15% of GDP for most major, European and Asian/Pacific economies (Rushton, Oxley Croucher 2000). Even though the importance of logistics centers have only recently been acknowledged, the concept of interaction as a means of operationalizing competition between supply chains throws new light on the role of such points as logistics centers. These are points where two or more supply chains meet for purpose of taking advantage of services or resources offered at these points, and thus as a platform for competition between supply chains. The recurrent tendency of logistics centers is to provide storage space, transportation (albeit intermodal) and other logistics value-adding activities to supply chains that use such centers. Since logistics is the backbone and origin of supply chain thinking (Waters, 2003; Kamauff, 2009) and upon which most supply chain management activities depend, it is therefore not out of place to describe logistics centers as a nodal point catering to the needs and demands of supply chains at a certain point-in-time and space. As such, it can generally be agreed that supply chains constitute an important customer base for logistics centers. With respect to this fact, supply chains are requesting more of logistics centers in terms of additional and superior customized services, faster turn-around times, less storage time and hence less storage space, etc, which allows supply chains achieve a higher level of responsiveness to market place demand. In order to adequately cater for supply chains, logistics centers must be willing and able to satisfy the needs of multiple supply chains in terms of critical services and/or products that will enable supply chains stay competitive, achieve competitive advantage and deliver the much needed value to its end-customers. Therefore, how logistics centers will go about creating this environment for the possible achievement of competitive advantage for supply chains require necessary attention within supply chain management. The purpose of this paper is to propose the concept of interaction (of supply chains) as the means through which competition can be practically operationalized between supply chains. As an essential source of interaction for supply chains, logistics centers is used to illustrate the rivalry that might exist between supply chains given the finite nature of service capabilities at such points where they interact. This paper thus investigates a case logistics center located in Sweden. The theoretical basis of the interaction concept is the ecological niche theory. Based on the interaction of supply chains at logistics centers, this paper also argues that interaction points also represent locations where value creation can be achieved by supply chains. The following chapters of this article provide a review of literature relating to the concept of logistics centers and the development and consequent definition of such centers in chapter 2. Also, a clarification of the concept of interaction as used within the context of competition at logistics centers is made. Chapter 3 discusses the methodology
  • 683.
    employed in thispaper, including the case study design, and methods used for analyzing such data. Chapter 4 formally introduces the case organizations and goes on to present salient results and findings from the case. Finally, chapter 5 carries out an analysis and draws the paper to a conclusion, with implications of the findings and result of analysis. 2.0. INTERACTION, LOGISTICS CENTERS AND SUPPLY CHAIN COMPETITION 2.1 Concept and origin of interaction between supply chains Prior to focusing on logistics centers as an example of a potential point of competition between supply chains, it is appropriate to describe the underlying nature of competition between supply chains within which the context of logistics centers becomes a consequent focus- i.e. interaction, within the ecological context. Within business, management and strategy literature, several types of interaction terms exist and these can range from mild to intense interactions. Within these literature streams, a number of interaction modes can be readily recognized – cooperation; collaboration e.g. collaborative or non adversarial (Cox, 2001), partnership (Webster, 1992; Mentzer et al., 2000), supplier-producer collaboration (Cravens et al., 1996) and integration, e.g. vertical integration (Webster, 1992), and joint venture (Ellram, 1991). Maintaining these kinds of interactive relationships however, requires 1) The formulation of a metric system of processing data between the interacting entities 2) An information sharing mechanism between entities and 3) A system for the redistribution of gains between them (Ballou et al., 2000). Within the industrial network approach, this form of interaction can take place between companies via its actors, activities and resources and generally referred to as the network structure (e.g. Harland, 1996). Following from this, similar types of interaction are possible between supply chains at different stages along the supply chain, e.g. integration, partnership, collaboration, transaction. However, for the purpose of competition analysis between supply chains, the concept of interaction used here is adopted from the natural science discipline of ecology. While definitions for ecology abound within literature, Gurevitch et al. (2006) define ecology as: [.. the study of the relationships between organisms and their environments, the interactions of organisms with one another and the patterns and causes of the abundance and distribution of organisms in nature.] Based on ecological philosophy, two broadly established propositions of competition exist: the principle of competitive exclusion and the theory of competitive equilibrium (Alley, 1982). The principle of competitive equilibrium is one which proposes that communities of organisms exist and thrive at competitive equilibrium, while the competitive exclusion principle asserts that no two organisms in a single species can occupy precisely the same niche, or exist on exactly the same limiting resources (Grinnell, 1917). While arguments have been presented against the validity of the equilibrium theory (e.g. see Alley 1982 for full treatment), the principle of competitive exclusion has proved to be useful within ecology and other disciplines. Within ecology and the competitive exclusion rule, competition is based on the interaction of organisms, and interaction is operationalized via the concepts of the niche, its breadth and overlap (of niches). As such, a good understanding of the principle of the niche, including its breadth and the overlap that regularly occurs between them is essential to this concept within supply chain vs. supply chain competition. An ecological niche is the n- dimensional space that describes the characteristics of resources a species needs for survival (Hutchison, 1957). In a way, it describes the position of a species in relations to other species
  • 684.
    as well asits relation to the environment. Further, the niche breadth is the particular range of resources within a niche on which a species can exist. It refers to the set of ecological circumstances under which a species is observed to survive and reproduce (Gaston and Blackburn, 2000). Based on this idea of the niche, Colwell and Futuyma (1971) went on to define niche overlap as the extent of common use of a particular resource location by different species. It is also taken to signify the measure of ecological similarity determining to what extent two species utilize the same resources. The idea of exclusion via competition therefore becomes feasible when species within the same niche seek the same limiting resource. Exploitative competition occurs when the process of overlap of two species niches carries forward to reduce the quantity of resources available to competitors (Begon et al. 2005). As such, the exclusion of one species is therefore possible under these conditions, hence the name competitive exclusion principle. Fig. 1. Concept of interaction between supply chains at logistics centers. Interaction therefore, is a way through which mutual behavior are modified via the medium of scarce resource availability upon which both struggling entities depend. It is the relationship between two or more supply chains at a common service point along the supply chain for the purpose of taking advantage of critical resources and adding value to its products or concern. When supply chains of similar kind (e.g. dealing in similar products or working within the same industry) come together in this way there is a relationship effect between them. It is this effect that one supply chain exerts on the other based on the reality of limiting critical resources that creates the basis for competition between supply chains at such locations (Figure 1). For example, at logistics centers, the interaction of supply chains act to influence each other and may result in a number of outcomes e.g. collaboration, partnership, etc. This mutual modification of behavior can also create an atmosphere where competition between the interacting entities becomes a possibility. Thus, the supply chain actors included in this study essentially comprise of those at the points where such interaction occurs, i.e. in this case the logistics center. Therefore, this paper intends to demonstrate that by studying competition from an ecological perspective using logistics centers as the platform on which that competition takes place, insight can be added via the idea of interaction of supply chains at such centers characterized by logistics centers, i.e. a meeting point. In the following section, propositions are developed based on the ecological niche principle, from which a conceptual model also developed.
  • 685.
    2.2 Proposition andmodel development Given the idea of supply chains and its intimate connection to the firm, it is logical to assume that firms operate supply chains, and are sometimes part of other supply chains. Supply chains move goods and services from point-to-point, using resources along the way to perform activities, for ultimate delivery to end-customers. If this holds, then it can be implied that supply chains are extensions of the firms’ operations. Since firms must rely on the environment within which they operate for critical resources to sustain their operations (Scott 1998), competition for resources is necessary for a firm’s continued survival and business success under conditions of resource scarcity (Hannan and Freeman 1989). Hence, in light of the ecological niche theory explicated above, it is proposed that: 1) Supply chains interact at logistics centers to the extent that they attract the same resources. 2) Supply chains at logistics centers attract similar resources and services to the extent that they become competitors. These could well be regarded as the main investigative propositions of this paper and around which the case study is organized. These propositions are based on the theoretical suggestion of the ecological niche theory of competition in general. Since supply chains are the global networks that are used to deliver products and services from raw materials to end customers, logistics center consideration in terms of location and service provision, and consequently competition, represents an important element for a successful competitive supply chain management strategy. While Menge and Sutherland (1976) predicted physical disturbance, predation and competition as the major processes that drive community structure, the ecological niche theory stresses competition as the driving force of community structure. As such, discussing structure in relation to competition is essential to the niche theory and almost always bears on the much talked about notion of equilibrium within competition theories and concepts. This is almost commonplace within ecology, including most other disciplines, as most analytical treatment of competition assumes equilibrium conditions (Alley, 1982). However, equilibrium rarely occurs in natural situations and Alley (1982) proffers detailed reasons why this is so. From the niche theory perspective, equilibrium is defined in terms of the proportion of resources required and used by species in the niche as a result of a combination of certain factors. These factors include advantages; as well as disadvantages in the impact received from the environment and from other species (or otherwise), i.e. the environmental trade-offs species have to contend with. Equilibrium within the niche theory does not therefore imply equality in the proportion of resources shared. A niche may be in equilibrium with some species commanding 80% of the resources while others have to make do with 20%, and in the same vein the environment might affect some more than others. However, because species are always in constant struggle for more and better resources that ensure survival, it is the continuous structural reorganization of a community of species due to competition that is of much interest to competition scholars. When a species comes into a new community, they will have to compete against other already established species for resources within that community until such a time that equilibrium is achieved. In the same vein, as species leave the community, more resources are left supposedly untapped and for which the remaining species will compete. As this entry-exit process of species continues, there is a constant restructuring of equilibrium within the community. It is therefore this equilibrium that determines the general structure of the community at any point in time. This process can be depicted by figure 2 which illustrates the general pattern of interaction between species in ecological communities.
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    Fig. 2. Conceptualizationof intra-community competitive interaction between species On the basis of the insight developed from the ecological niche theory and the conceptual model developed here, it is possible to use this to extend the understanding of supply chain competition via interaction at logistics centers. Hence, the concept of logistics centre is treated next. 2.3 Defining logistics centres The research literature on logistics centers and its operations remain scant. As much used as is the term today, there is no standard definition of what a logistics center is in literature. The initial development of logistics centers in 1960s Europe was mainly in response to the need to reorganize city centers and remove transport companies working at distribution centers within the cities from the central business districts (Ballis, 2008). In the same vein, its development was triggered as a result of the need to reduce traffic congestion and reduce the difficulty of traffic logistics within the city limits in the United States (Ballis, 2008). Depending on the professional function, logistics centers may be defined in an infinite number of ways. Definition of a logistics center lies within the context of the definer’s perception of its application with regards to the definer’s vocation. Thus, many of the proposed definitions for logistics centers have developed from closely related, but more established terms like distribution centers, which is known to be conceptually synonymous to the concept of a warehouse (Lu and Yang, 2006) as they serve similar purposes. As yet, not much attention has been extended to distribution centers connected to the operation of these supply chains. Baker (2004) points out that most supply chain literature completely omit warehousing and distribution center design or only refer to these in passing. Several names, e.g. “Freight village”, “Transport center”, “Distribution center”, “Cargo terminal”, “Transportation depot”, etc, have been used to describe the essence of logistics centers in different parts of the world. In ordinary discourse, a distribution center may be described as a warehouse of finished goods, from which goods from different suppliers are collected for onward delivery to customers, i.e. retailers, wholesalers, etc (Stock and Lambert, 2001; Coyle et al, 2003). Niche Colonization via competition Reorganising of hierachy structure Overlap Competition (Interaction) Entry of new species Species exit Balanced Hierachical structure
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    Accordingly, a distributioncenter serves as a link between suppliers and consumers, while facilitating communication between them. It can perform activities such as packaging, customized kitting, light assembly, labeling, etc, to meet organizational requirements (Copacino 1997). With the maturity of distribution centers, came the idea of international distribution centers (IDC). According to the International Maritime Organization (IMO), an international distribution center is defined as a location that possesses the ability to integrate the operations of manufacturing with land, sea, and air transportation, storage, and port and customs operations aiming to achieve the efficient distribution of commodities (IMO, 1991). International distribution centres can be useful for bulk breaking of the goods that travel overseas, as well as product mixing (Lu and Yang, 2006). Building on this, logistics centers represents a next higher level in the generation of business and provision of intermodal transportation to meet the needs of customers as well as the environment. Thus, a logistics center is a hub of a specific area where all the activities relating to transport logistics and goods distribution for both national and international transit are carried out on a commercial basis by various operators (EUROPLATFORMS, 2004; Ballis, 2008). Fig. 3 Possible spectrum of service offerings at logistics centers (Authors) Logistics centers, as the higher end of the business generation and transport infrastructure continuum for many businesses, perform a wider spectrum of services over the distribution center (international or local). Typically, logistics centers would perform a range of services including those that would allow outbound and inbound goods and services to move through international borders quickly, efficiently and without much delay. Hence, depending on the type of center, a range of logistics center activities would include activities as outlined in Figure 3. While Figure 3 summarizes service offerings at logistics centers, it does not represent the full range of services that may be offered by logistics centers. Differences may occur depending on the types of logistics centers in question. From a functional perspective, different types of logistics centers may be recognized. Logistics centers that cater to the movement and
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    distribution of certaintypes of products and services, e.g. the United Nations Joint Logistics Center (UNJLC) may be classified as specialized logistics centers. Whilst there is no established typology of logistics centers in academic or practitioner literature, Ojala et al (1999); Vafídis and Ojala (1999) propose three basic descriptions of logistics centers: Concrete, virtual and network logistic centers. A concrete logistics center is one in which all its tangible facilities such as warehouses and transport infrastructure (e.g. roads, train tracks, etc), its supporting facilities e.g. banks, insurance firms, gas stations, servicing companies, etc are physically fairly concentrated in a geographical location. This type of logistics center depicts the usual idea of a logistics center, and the emphasis is on its physical location in space. Ownership of concrete logistics centers can vary from private-private collaborations to varying degrees of private-public ownership. Owners and/or operators of a concrete logistics center may or may not be directly involved in the day-to-day management of the logistics center. Logistics centers of this type may be open to customers willing to pay for the use of the services and facilities of the center or may be restricted to certain customers based on some given criteria, e.g. by membership, association or contract. Such centers can be general, specialized, regional or global. All references made to logistics centers in connection to competition in this paper will refer to concrete logistics centers. Points along the supply chain that offer the range and supposedly the quality of services (including inter-modal transportation) as offered by concrete logistics centers are not available throughout the supply chain. This means that there are only so many points along the supply chain where users of logistics services may accomplish their value adding tasks. Thus, logistics centers are important for supply chains. As such, the supply chain trend has affected the development and operation of logistics centers in a number of ways. First, in order to meet the demands and increasingly shorter attention span of end-users, supply chains have placed greater emphasis on the flow of goods rather than on their storage (Higginson and Bookbinder, 2005). This acts to confirm the growing practice of inventory reduction as noted by Ackerman and Brewer (2001) that the largest savings in logistics costs over the last several years has been due to reduction in stock. As a result there are more products undergoing cross docking as well as the holding of goods for the implementation of its flow from one supply chain to another. The diminution of inventory brings us to the second impact of supply chains on logistics centers, and this is the fact that there has been a reduction in the number of warehousing facilities across the length of the supply chain. Fewer warehousing facilities force supply chains to centralize their inventory, as such some of the issues of inventory management are being picked up by logistics centers across supply chains since they represent a multi faceted service-providing entity. Third, the increasing trends of outsourcing and the persistence of virtual firms continue to demand a wider area of competence as well as a larger range of services, especially of logistics centers. A host of services such as packaging, recycling, labeling, product localization, etc traditionally performed by warehouses are now commonly carried out at logistics centers. In addition, various value adding services are also commonly being performed at logistics centers, given their strategic location and capabilities. Thus, there is a realization that as a point on several organizations’ supply chains needs have to be met at these points in order for these supply chains to continue their value creating journey to the end customer.
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    3.0. METHOD The methodemployed in this paper is the case study methodology. It is based on in-depth and holistic investigations of an individual, group or event in order to explore underlying principles (Shepard and Greene, 2003; Feagin, Orum and Sjoberg, 1991; Stake, 1995). It is the preferential method when a phenomenon under study is not readily apparent from its context (Yin, 2003). Yin (2003) identifies six types of case studies following a 2x3 matrix pattern. That is, on one axis, case studies can be single or multiple, on the other axis; cases can be exploratory, descriptive or explanatory. Multiple case studies include two or more cases within the same study, while single cases focus on just one case. Multiple cases may be carried out for either replication or predictive reasons. Exploratory case studies are used to probe phenomenon usually in a manner considered to preclude to a research. Explanatory case study seeks to explain how and why some phenomenon occurs (Yin, 2003) and a descriptive case study depicts a description of the phenomenon under investigation within its context (Bergh and Ketchen, 2009). It requires a descriptive theory to be developed before commencement of investigation. Hence, case studies are useful in that they can be used to explain complex causal linkages between phenomena; describe these in cases where intervention has occurred; describe and explain such interventions; and explore the results or outcomes of interventions (Yin, 1994). Being exploratory in nature, the paper sought a single, in-depth case study which spanned four organizations including the logistics center. Single case studies have frequently been described as meaningless, highly limited at best and of almost no scientific value, however, Hilliard (1993) cautions that assessing single-case research in parity with group research could be extremely misleading. In line with this, Mook (1983) had argued that in doing research it is quite possible that interest might not overwhelmingly lie in the external validity of the findings. That is, given the four research designs proposed by Mook (1983), one is especially important to case studies and single case studies in particular. This is the design where a researcher is mostly concerned with ascertaining what is possible rather than what is common. In such situations, aggregation across cases is avoided and the generality of the findings are addressed through replications of single cases on a case-by-case basis (Hilliard, 1993). As such, it is reasonable to undertake single case studies where the purpose is mainly exploratory-explanatory, and in which variation implies changes within individual actors within the case. 3.1 Case study design The design of the case study was based on a) the type of research questions posed and b) the degree of focus on current events at the logistics center (Yin, 1984). The study thus followed a single-case explanatory-exploratory methodology (Levy, 1998) which sought to first determine the extent to which the phenomenon of interaction between supply chains can occur at logistics centers, i.e. the how and why of interaction. Second, the exploratory strategy was used to probe the possibility of competition as an outcome of such interactions, based on the ecological niche principle of competition. A case protocol was designed to deal with issues of data collection types, access, type of access available, logistics, questions to be asked, etc and from which an interview guide for the data collection procedure (interview) was created. While the linking of obtained data and findings to investigative propositions are not well developed in case studies, Yin (1994, 2003) suggest the possibility of using analytical techniques such as pattern matching, time series analysis, and explanation building. In pattern-matching analysis, the logic used to link the data to the proposition is a technique that compares the pattern found in the case study with one that is predicted to occur (Trochim, 1989). Explanation building is similar to pattern
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    matching in thatit is also designed to test theoretical propositions, although in an iterative way (Saunders et al, 2007). It is logic used to link findings to propositions or developed frameworks of the case study by building explanations of the case and hence most applicable to explanatory cases. And time series analysis involves the visual display of variations in the key variables in the case over time. Plots may be used to display such variations across time. Data for this study was collected via 1) interviews 2) documentation, e.g. general presentation brochures, strategic development plans, etc. 3) direct observation, e.g. a working tour of the site of the logistics center was undertaken a few times where further requests to revisit certain areas were also granted in subsequent visits. Interviews were conducted with key personnel of the different partners that make up the case and which will be designated as K1, K2, K3, K4, K5, and K6 (See figure 5). Interviews were based on a semi-structured questionnaire (guide) developed within the case protocol. Interviews lasted between 60 and 70 minutes. Five interviews were conducted on site at the logistics center in Katrineholm, and one was conducted over the phone due to irreconcilable schedules. All interviews were transcribed prior to analysis. 4.0. CASE PRESENTATION AND DATA The unit of analysis and case organization was a logistics center (Katrineholm Logistics Center, KLC) located in the heart of the Katrineholm Municipality in the Södermanland county of Sweden. KLC is a government/private partnership between the Katrineholm Fig. 4 Katrineholm in relation to the railway grid Municipality, Katrineholm Logistikfastigheter, KLF (Katrineholm Logistics Real Estate Company) and Katrineholm Rail Point (KRP). Hence KLC is composed of KRP and KLF. Interviewees were drawn from all three organizations in the manner depicted in the figure 5. This case was selected because of all the logistics centers in Sweden at that point; KLC was a logistics center willing to allow the depth and inquiry required for the study.
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    Fig. 5 Structuraloverview of KLC with designated interviewees To be an appropriate case, interaction points (which could also be OEMs, suppliers, etc, e.g. Intel and AMD for the computer industry and Roll-Royce and GE for the aircraft industry) should have the practice of having two or more customers present at the point where they interact for purpose of taking advantage of the services such points offer or for the purpose of acquiring much needed resources. The logistics center boasts two railway terminals for loading and unloading goods. These terminals have the capacity to receive full length trains of up to 750 meters in length. About 70,000 sq. meters of storage space has been developed within the center. KLF, which builds and leases warehouse and storage real estate, has an additional 16.5 hectares of land surrounding the logistics center for prospective development. With its emphasis on rail transport and its location at the point where four arterial roads converge, KLC not only has the strong position to access the primary flow of goods in Sweden, it also exhibits strong intermodal flexibilities required of logistics centers. The Katrineholm logistics center is built mostly on railway thinking. Most transport movements are operated on the railway, so much so that trucks are loaded onto the railway and transported to the nearest rail stop from where they can continue to their destination. As such KLC works within an initiative that strives for environmental responsibility. It is also seen as a driver of business in this area as there are many new up and coming regulations regarding environmental issues such that customers want to know that there is an environmental undertone to suppliers’ and partners’ businesses. 4.1 Supply chain interaction at the logistics center Interaction between supply chains at such locations as logistics centers essentially revolves around two points. First, is the unique position of the logistics center as a meeting point for the western and southern railway trunk lines, as well as being a confluence point for important arterial roads. Second, on the issue of services offering/provision at the logistics center, responses were quite similar from the different interviewees considering that the different partners of the logistics center have their core businesses to look after. Data here showed that different supply chains come through KLC for different reasons and many of them at the same time. Services provided by the center and its position were the main attractive elements and mainly included their work with the railway wagons and different K5 K2 KLC Katrineholm MunicipalityKRP KLF K3 K1K6K4
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    services required tocater to the national and international trains that bring goods from different parts of Europe up to Sweden. A high point of the service offering intended by KLC is the impending ability for KLC to have its customers coming in from abroad declare their goods at KLC in Katrineholm, saving them time and resources that would otherwise be expended doing this at the Göteborg port: ...”It’s everything from security, protection, insurance, storage, cleaning (the wagons and containers), repair, overnight stay, food, and a network of electrified tracks. It’s the drivers’ second home”!....”We are in negotiations with the Port of Göteborg to allow clients coming to us through the port have their customs declaration carried out here at KLC. If we are able to do that we will be the first logistics center in Sweden to offer our clients customs declaration at our position”. [K2] …”One of the facilities we offer is our ability to handle a full train set, up to 750 meters long! No one in Sweden is capable of that, in other centers they have to break the train set in pieces which is inconvenient and time wasting for clients! …… We are planning to build a big track that will run straight into the national grid run by Banverket, but right now we have to get slot times to get our clients on the grid when we have train movements”. [K5] Barnverket (the Swedish Rail Administration) is the authority responsible for the development, administration and operation of the railway system in Sweden, including the coordination of local, regional and national rail transport. Banverket is also responsible for maintaining most of the railway network in Sweden, and allots space on the tracks between transport freighters or passenger traffic in return for a fee. …” As the responsible person for KLF, I can say we offer storage spaces, computer networking within the logistics center area, security. Our network can communicate with various other types of networks, we have companies that use different types of network and if they suddenly need to be in contact with another company at another logistics center, Karlsham for example, they communicate via this network”. [K3] …”It is mostly loading goods onto the trailers from the storage spaces, offloading goods from incoming trains and loading them on outgoing trucks and such things. We prepare the wagons; we provide facilities for fuel support to both trucks and trains”. [K6] ...”we welcome trains! We take in trains and trucks and offer loading and offloading services for both trailers and containers. We are now looking to KRP to start stripping and stuffing which is the next step. We need to get new positions for the containers so that they come in one way and leave another way. We see in the near future washing of containers, painting of containers and wagons, repairing of wagons. As for KLF, they hold storage areas of different qualities and sizes depending on the needs of the customers”. [K1] …”we try to listen to clients needs, and there is an on-going discussion about that to have different stores, repair wagons, and offer the different services they need and want to have today. [K4] One of the advantages of KLC over other logistics centers in Sweden is its proximity to the road and the railway network of Sweden; this is often touted as one of the reasons why the logistics center at Katrineholm was established.
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    ..”the idea wasto use the old industrial side train tracks that converged in Katrineholm to attract companies to come in and establish in Katrineholm municipality, and from there the idea of the logistics center was born!” [K1] …”it came from the political side, i.e. from the municipality. They wanted to have employment opportunities to build up the society. And the railway’s historical stand was the way the society was built up. It has a strategic position and it is a very good opportunity to have land around it and build it out. The geography is right!”[K6] ...”the first interest was that Katrineholm was at the cross point of railway lines and its position we have calculated to be very interesting. A junction, so to speak. It is the position that is important; it is only 2 hrs by truck from Stockholm and its position as a major junction on the railway network, which is why we are interested!”[K3] By virtue of its position, KLC has had advantages of cost reduction and time savings for clients wanting to reach the major cities in the southern half of the country quickly and cheaply: …”here they can come in with the whole train set; it is a very efficient terminal and the geographical position is good for reaching Stockholm, Uppsala, Linköping, Västerås, Eskilstuna. It’s a lot of big towns around Katrineholm. It is very well situated and that makes it cost effective for transportation. If we count the distance and compare with other logistics centers like Norrköping, it is 100km that clients gain if they are placed in Katrineholm, i.e. 50km one way and 50km the other way!”[K2] With an expanding range of services and its unique position, KLC is an attractive location for supply chains from abroad seeking to enter the Swedish market quickly, more cost efficiently and in an environmentally friendly manner. Thus, there is a possibility that several supply chains will meet and thus interact at KLC because by virtue of being present at KLC as a client it is assumed that services and resources are being consumed or used up. This is because when supply chains come into the center and command the use of resources, whether it be storage space, stuffing and stripping services, loading and offloading services with two lifts (one big and one medium sized) for loading and offloading goods, containers and trucks at the terminal, there is a tendency for supply chains to require the use of similar resources or facilities offered by the logistics center. 4.2. Supply chain competition at the logistics center The question of competition may be addresses following from the proposition 1) which establishes that supply chains will interact at logistics centers when they attract the same resources, usually at the same time. It is a given that for supply chains to request similar resources or services from the logistics center at the same time, they would have to be physically present at the center. While these kinds of simultaneous request do not happen on a regular basis, the proposition leaves room for random occurrence of events. Hence the question of competition between supply chains at logistics centers would essentially consider the limits and restrictions of the various services and resources at the logistics center. The question how many clients can the logistics center serve simultaneously for the different services offered, addresses the issue of competition. While respondents were enthusiastic about prospect of increasing patronage, responses were varied and most were cognizant of the fact that resources available at the center do have limits:
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    …”it is amatter of resources” [K6] …”it depends on different things!” …”What is the limitation? Well, two train sets of full lengths, i.e. 750m, at the two terminals, at the same time, plus two waiting! …In full operation mode we can serve three full length train sets at the same time, and not a lot of logistics centers can handle that in Sweden!” [K2] …”at full capacity, we have the ability to handle six big train movements per week for the south terminal and twelve big train movements every week for the north terminal, when it is completed this fall. Today we have one large track and one middle sized track, later on when we have more customers, and more train movements we can have more. Train movements are trains coming in, offloading and maybe storage and then loading to go out” [K5] …”well, for us at KLF at the moment it’s not relevant! [K3] ..”the storage capacity of the center is about 150 hectares. You have to differentiate the type of company, its trains, its trucks and its storage spaces. It’s hard!. At the north terminal we should have 10 train sets daily. And the storage spaces are 150 hectares; and we have built only half of that” [K1] So how many customers can you accommodate in 75 hectares? [Interviewer] “I don’t know! 1 hectare is about 10,000 sq. meters, so you can estimate what 150 hectares will be like, 1,500000 sq. meters! and 75 hectares is 750,000 sq. meters. How many customers can you have there? I don’t know! You count for yourself!” [K1] It is only logical to assume that given all the resources available at the logistics center, there is always a limit to which resources, facilities and even services can last. Because there are not an infinite number services and facilities available at the logistics center, there is a potential for supply chains using the logistics center to require similar services at the same time, or struggle for resources at some point in time, this struggle can ultimately lead to competition between supply chains. 4.3 Observations and documents Two basic methods of following qualitative research referred to by Dingwall (1997) include asking questions and hanging out. Being a multi-method technique, case studies almost always involves observations. Observation provides the possibility to avoid bias around interviews which is described as the interview society (Silverman, 2000; Atkinson and Silverman, 1997), where interviewees act and talk in certain ways under interviews. 14 visits to the center were performed between the authors and 3 train arrivals were observed. The offloading and loading of trains gave a better picture of how trucks were loaded on the top of trains and transported to the nearest destination where they could be offloaded. This is said to reduce the impact on the environment. Constructions of storage spaces were on-going on some of these visit occasions. Informal talks and discussions with K1 and K2 provided observation data outside the interviews. Some notes were taken on important observations. During these informal meetings, intentions were expressed to develop a supply chain outlook for the logistics center. This involved having much closer relationships with their customers and taking interest in their supply chains. This is not only when they happen to go through the
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    logistics center, butalso at points before they get to the center and at points after they leave. This way, they can increase the amount of services that they currently offer and this would create an impact on the city of Katrineholm in terms of jobs and employment. Attention was also paid to what had and was being written about the logistics center. For example, Fastighetsvärlden, a Swedish logistics real estate sector business magazine ranked Katrineholm logistics center in the top 5 logistics parks in Sweden (Fastighetsvärlden, 2010), according to land area in m2 . In 2011, Katrineholm Logistics Center was ranked 14th of all 25 operating logistics centers in Sweden using a combination of six different criteria (Intelligent Logistik, 2011). In many cases where documents form part of the data source, a usual problem –whose effects are difficult to estimate- is the classification of certain documents as sensitive or classified. However, preliminary strategy plans for building storage facilities were obtainable as well as brochures introducing the logistics center, their location and what kind of services they offer. 5.0. ANALYSIS AND CONCLUSION Without doubts, the case study clearly reveals interesting and enthusiastic insights into the operations at the logistics center. However, since logistics centers handle logistics issues, the onus is on the researcher to analytically generate exhaustive results of questions for which solutions, relationships or answers are sought. The task in the analysis here is to show that there are interactions between companies that use the logistics centers. Companies in this paper have been briefly conceptualized as supply chains, on which the propositions for this study are based. The analyses of obtained data take the form of pattern matching analysis. 5.1 Pattern matching analysis This section analyses the data to show how theory may be used in outcome evaluation through the use of pattern matching. This method emphasizes the importance of theory in any research process (e.g. Chen and Rossi, 1987). A pattern is simply any arrangement of objects or entities (Trochim, 1989). According to Trochim (1989) arrangement is described as essentially non-random and describable. The pattern matching carried out here is based on a process, a process that drives competition within communities which in turn determine the structure of that community. The foundation of the theoretical outcome of niche competition is conceptualized in chapter 2.
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    Fig. 6. Hypotheticaloutcome pattern using process pattern matches This is enabled through the process of interaction, from which overlaps in the use of resources may are identified between two or more species (e.g. Pianka, 1974; Colwell and Futuyama, 1971; Abrams, 1980). Figure 6 illustrates the inference made from the data observed from the case and tries to relate this to the theoretical patterns observed from the niche interactions on the basis of resources. It should however be stated that the process described here typically occurs over a substantial period of time, and while the process description might tend to look deterministic or even normative, they are usually random in reality, in the sense that species can come and go as they please, which applies to supply chains too. Thus pattern matching is not different from traditional hypothesis testing where speculations are made of what is expected of the data and the observed pattern provides data with which a match can be made to the theory (Trochim, 1989). Niche Colonization via competition Reorganising of hierachy structure Overlap Competition (Interaction) Entry of new species Balanced Hierachical structure Exit of supply chains Competition between supply chains Interaction of supply chains Entry of new supply chains Equilibrium in terms of facilities and services use Species exit Theoretical Outcome Pattern Observed Outcome Pattern SC 1 SC 2 SC 3
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    Equilibrium of facilitiesuse: This represents the point at which all the supply chains at the logistics center have enough resources to satisfy the needs of all customer supply chains. At this point, there is interaction, but there is obviously no competition. Rather, there is cooperation between service operators and other supply chains. This is mostly noticeable in the cooperation within the so-called return freight. That is, when a full train comes up to Sweden from mainland Europe, there is some cooperation among supply chain operators to ensure that the trains do not go back down empty. “..customers create this possibility for business! They are looking at bringing goods here with the trains and wanting to take goods back! [K4] and are working to make sure this goes well most of the time”. [K2] “…we would like to have more people working with this reloading principle, that when a train comes and is offloaded of its goods, there needs to be more people working with the service to reload these trains to transport goods back to Europe”. [K4] If the trains come with fish from Norway, what could go back with these wagons? [Interviewer] “Maybe flowers, from Holland up to Norway” [K4] Entry of new supply chains: KLF and KRP as subsidiary companies of KLC have the task of bringing in as many customers for the logistics center as well as for themselves. KRP is the railway subsidiary of KLC that provides and assists with railway transportation for clients of the center. KLF is the real estate arm that provides facilities for storage, cross docking, etc and holds the title of lands surrounding the logistics center. In addition, KLC also does marketing for the center. “..we are working actively to search for train operators, train drivers, and freight companies we can work with and KLF is trying to get companies to lease land on which they can build storage facilities” [K4] Interaction of supply chains: Over time, as new customers enter the logistics center there is an implicit restructuring of resource and facility allocation within the center in a bid to accommodate increasing needs. Ultimately, resources will begin to thin out as even more supply chains join in. At some point, supply chains at the center that will require similar resources within the same period of time. This creates the potential which could lead to some form of competition with other supply chains that require the same services, resources or facilities. At the point where competition takes place, supply chains not wanting to compete or those whose needs have been met leave the logistics center. When this happens, resources are freed which may be taken up by other supply chain. This continuous entry and exit of supply chains illustrate the constant restructuring in search of equilibrium with respect to resources and facilities proposed by Figure 6 and which takes place at such meeting points. 5.2 Discussion, conclusion and further research In this paper, it has been argued that a new and framework is emerging in terms of the evolving competition set to take place between supply chains-interaction. Interaction centers, as exemplified here with the use of logistics centers, are expected to provide the bridge that is required to maintain a proper understanding of rivalry, albeit tacit, between supply chains in the new competitive environment. It is interesting that most of the related work on supply chain vs. supply chain competition in literature focus on theoretical conceptualizations
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    without a correspondingpractical platform through which such conceptualization may be operationalized. As competition shifts from the head-to-head mode to the supply chain platform, managers of supply chains will increasingly require practical ways to implement such competition. This paper presents a conceptualization mode for which it proposes a practical mode through which such conceptualization can occur between supply chains. Insight gained from results obtained can be beneficial for firms and organizations running and operating supply chains to treat logistics centres as potential points of competition when structuring supply chain strategies. Overall, there is a dearth of studies exploring the link between theory and practice in terms of competition between supply chains. An implication of this paper is that it allows managers and operators of supply chains to think of logistics centers in a different way when it concerns the idea of supply chain vs. supply chain competition. It focuses managers’ attention on how such competition can be played out in reality, i.e. via the resources and facilities which they share with other supply chains at common meeting points along the supply chain. The commonality or intersection of resources required by supply chains represents the core of competition according to this paper. Hence overlap, simply put, is the joint use of a resource, or resources, by two or more entities (Colwell and Futuyama, 1971). From this it follows that the larger the overlapping of mutual resources, the more intense the struggle for these resources creating a potential for competition between supply chains at such points. While this study suggests that interaction between supply chains may very well represent the way supply chains vs. supply chain competition will be operationalized, the research carried out here only considered the perspective of the resource point, i.e. the interaction point operators. Even though these interaction point operators form the basis of the competition from this conceptualization, it is important to stress that the supply chains (and by default its operators) that actually take part in this competition are independent entities and are capable of deciding whether to compete or not. As such further research is required on supply chains to probe the general predisposition of supply chains to compete at such points, and on what conditions they would consider such competition. Also, in this paper, logistics centers were used as interaction points mainly for the range of services that they are able to offer supply chains. Interaction points may however also revolve around resource points, product points, and manufacturing locations. This paper, in its essence demonstrate the possibility of supply chain competition at interaction points like logistics centers, similar research clarification of resources points, product points and manufacturing points are required to further develop this idea of competition for supply chains. This would be most appropriately carried out one a case-by-case basis. In conclusion, it is reasonable to assert that the proposition 1) supply chains interact at logistics centers to the extent that they attract the same resources holds true. Unless resources, facilities, products, services, etc required by supply chains for its survival are infinitely abundant, this proposition will hold steady. As it is shown in this paper that services and resources at logistics centers are incapable of catering to an infinite number of supply chains. And if proposition 1 can be confirmed, it then follows by implication that proposition 2) that supply chains at logistics centers attract similar resources to the extent that they become competitors is also supported by the study. By holding up the two propositions developed here, this paper alludes to the idea that interaction at resource points is a potential source of competition for supply chains and represents one way in which supply chain vs. supply chain competition may be operationalized.
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