The First Internat ional Conference on

Organ i s e d b y O r gan i s e d b y O r gan i s e d b y

Hang Seng Management College

11th and 12

th January

2014

Supply Chain for

Sustainability

Conference Prospectus 2014

Dear Distinguished Speakers, Participants, and Committee Members:

It is our great pleasure and honor to welcome you to the First International Conference on Supply Chain for

Sustainability. Supply chain sustainability is increasingly becoming essential for long term success of

organizations, as customers become more sensitive to the environmental impact of producing goods and

services. It is often no longer enough to simply minimize supply chain cost – more and more customers

demand products that they can trust, which forces supply chains to not only be sustainable but also to

increase visibility across the whole chain. As sustainability moves into the mainstream, researchers and

practitioners need to set appropriate business goals and develop metrics to measure progress towards more

sustainable supply chains. The ambition of this conference is to bring together academic and industrial

practitioners with shared interests in green supply chains and/or other SCM-related issues.

We hope that you will find this conference both interesting and stimulating and that you enjoy meeting up

with old friends and making new contacts. Finally, we are grateful to the supporting organizations and

sponsors for their support.

Conference Chairs

W e l c o m e M e s s a g e

Dr. Collin Wong

Professor Eldon Li

Professor Li is an University Chair Professor of the Department of Management Informa-tion Systems at the National Chengchi Uni-versity (NCCU).

Professor Xiande Zhao

Professor Zhao is a Professor of Operations and Supply Chain Management at China Europe International Business School (CEIBS).

Professor Zhaohui Wang

Keynote Speakers

Convenors of Industry Panel Sessions

Professor Waiman Cheung

The Chairman of Department of Decision Sciences and Managerial Economics,

The Chinese University of Hong Kong

Professor Jeff Yeung

The Director of Supply Chain Management Research Centre,

The Chinese University of Hong Kong

Conference Advisors

Professor Gilbert Fong

Professor T. S. Lee

Conference Chairs

Dr. Karolina Glowacka

Dr. Stephen Ng

Professor Wang is the Director of Interna-tional Business Research Center and a Pro-fessor of the Economic and Trade College at Guangdong University of Finance & Econom-ics

Rundown of Major EventsRundown of Major EventsRundown of Major Events

Date Time Events Venue Speakers / Topics

9:00 am – 9:30 am Registration Block A, 4/F -

11 January

2014 (Sat)

9:30 am – 9:50 am Opening

Remarks A401 Prof. Gilbert Fong (Conference Advisor)

9:50 am – 11:00 am Presentation by

keynote speakers

A401

Prof. Eldon Li - National Chengchi University

“Collaboration Network and Research Impact”

Prof. Xiande Zhao - China Europe Int’l Business School

“網絡環境下的供應鏈與服務創新” (Innovative Services for the Internet Era)

See pg. 5 for details

11:00 am – 11:20 am

Tea Break

11:20 am – 12:45 pm 1st Industry Panel

Session

A401

Prof. Waiman Cheung (Convenor)

Chinese University of Hong Kong

Mr. Gordon Lam (Vice-President)

Li & Fung Development (China) Ltd

Mr. Stephen Chan (Managing Director)

Power Hub Ltd

Mr. Toshiaki YU Takahashi (GM, SCM & ASPC)

Ricoh Asia Pacific Operations

Mr. Alex Koo (GM)

AOC Ltd

1:00 pm – 2:15 pm Lunch

Ocean Blue

(Block B,

HSMC)

2:20 pm – 3:00 pm Presentation by

keynote speakers

A401 Prof. Zhaohui Wang – Guangdong University of Finance & Eco-

nomics

“管理學中實地研究及質性分析規範化應用:來自中國內地經驗” (語言為國語) (Presentation will be in Putonghua with English instant Interpreta-

tion)

See pg. 5 for details

3:00 pm – 4:30 pm

Paper Presentation – Session 1

Session 1A

A403 See pg. 6 - 7 for details

Session 1B A404 See pg. 8 - 9 for details

4:30 pm – 4:50 pm Tea Break

4:50 pm – 6:15 pm 2nd Industry Panel

Session

Prof. Jeff Yeung (Convenor)

Chinese University of Hong Kong

Mr. Timothy Lam (Chairman)

The Institute of Purchase & Supply Hong Kong (IPSHK)

Mr. Jimmy Pang (Vice-President)

Hong Kong Supply Chain Security Association (SCSA)

Mr. Daniel Chan (President)

Institute for Supply Management, Pearl River Delta (ISM-PRD)

Mr. Mark Millar (FCILT, FCIM, GAICD)

The Chartered Institute of Logistics and Transport (CILTHK)

Mr. Simon Chan (Chairman of Education & Training Committee)

Hong Kong Logistics Association (HKLA)

From 6:30 pm Regal Riverside Hotel, Shatin Gala Dinner

12 January

2014 (Sun)

10:00 am – 10:40 am

Academic Panel

Discussion

Session 2A A403 See pg. 10 -11 for details

Session 2B A404 See pg. 12 -13 for details

10:40 am – 12:10 pm

Paper Presentation – Session 2

A403

“Teaching and Research Collaborations” Prof. Chen Yun

Hubei University of Economics

Prof. Zhaohui Wang

Guangdong University of Finance & Economics

Paper Presentation SchedulesPaper Presentation SchedulesPaper Presentation Schedules

Date, Time and Venue Author(s) Topic

11 January 2014 (Sat) 3:00 pm – 4:30 pm

A403

Session 1A: Competition and Cooperation between Korean and Hong Kong in Service Industry

Session Chair: Dr. Danny Ho

Deokhyun SEONG, Min-Soo SUH “A Framework for Optimal Logistics Management in an Integrated

Steel Mill”

Prof. Jung-Yoon LEE “The Transformation of Korea Export Gateway System based on

the Geovisual Analysis between 1990 and 2010”

Prof. Heeryang RA “What’s Going on in Minimum Wage of Southeast Asian

Countries?”

Yeo-Hyun YOUN, Bon-A GU and Prof. Wii-Joo YHANG

“The Effect of Marina Landscape Design on the Images and

Recommendation Intention”

Prof. You-Tay LEE and Tae-Yeong CHOI “A Study on Efficient Financial Support for Small Enterprise by

Analysis of Loan Default Rates”

11 January 2014 (Sat) 3:00 pm – 4:30 pm

A404

Session 1B: Optimizing Scarce Resources Using Quantitative Approaches

Session Chair: Dr. Daniel Mo

Cheung, King-Yin, and Cheung, Simon “A Two-Level Optimization Model for Resource Allocation with

Competition”

Cui, Xiling, Qiang Zhou, Chi Hon Li “How do Sellers Design Their Auctions: An Empirical Study on

Online Auction Price Evaluation”

Glowacka, Karolina and May, Jerrold H “Simulation Study Examining Queuing Methods for Early and Late

Arrivals in an Outpatient Clinic”

Mo, Daniel “Selecting a Service Parts Contract for Maintaining Critical

Systems”

12 January 2014 (Sun) 10:40 am – 12:10 pm

A403

Session 2A: Sustainability and Customer Focus

Session Chair: Dr. Eugene Wong

Yu, Carisa and Yip, Tsz Leung “Sustainability Portfolio Analysis: A Case of Ship Procurement”

Ho, Danny “A Study of Vegetable Marketing Organization’s Hydroponic

Vegetables Production and Distribution System in Hong Kong”

Wong, Eugene Y.C., and Lau, Henry Y.K. “Green Port Development in Hong Kong – Reduction of Marine

and Port-related Emissions”

Fu, Wenhui “Business Model Innovation and Value Co-creation Based on the Dynamic Process of Platformalization - A Longitudinal Study of

Tencent and Shangpinzhaipei Cases”

12 January 2014 (Sun) 10:40 am – 12:10 pm

A404

Session 2B: SCM Issues, Risks and Opportu-nities

Session Chair: Dr. Ricky Wong

Zhou, Qiang and Tien-sheng Lee “Financial Supply Chain Management and Supply Chain Finance:

A Concise Literature Review”

Wong, Wai Hung, Ng, Stephen and Wong, Ricky “An Integrative Framework on the Collaborations and Risks of

Customer-Involved Product Development”

Li, Tillotson “The Supplier-Intermediary-Consumer channel of wine in China: A

case study”

Kwong, Kenneth K. and Leung, John W. K. “In Search of Third-Party Logistics Synergies and the Effects on

Performance”

Wong, Ricky “When Too Much Hurts: Anchoring-and-Adjustment Heuristic in

Procurement”

Ng, Stephen, Zhuang, Bochao and Zhao, Xiande “Unravel the Paradoxical Effect of Customer Focus on Firm Per-

formance – from the Perspective of Strong-weak Tie and Dynamic Capability”

Table of Contents

Abstracts of Keynote Speeches ..................................................................................................... 5 Abstracts of Paper Presentations – Session 1A

Competition and Cooperation between Korean and Hong Kong in Service Industry........... 6

Abstracts of Paper Presentations – Session 1B Optimizing Scarce Resources Using Quantitative Approaches ........................................... 8

Abstracts of Paper Presentations – Session 2A Sustainability and Customer Focus ...................................................................................10

Abstracts of Paper Presentations – Session 2B Supply Chain Management Issues, Risks and Opportunities.............................................12

All of the abstracts and papers were edited by Dr. Karolina Glowacka and Dr. Shirley Yeung

5

Prof. Eldon Li, the National Chengchi University (NCCU) Collaboration Network and Research Impact

Abstract: The impact of research work is related to a scholar's reputation and future promotions. Greater research impact not only inspires scholars to continue their research, but also increases the possibility of a larger research budget from sponsors. This speech explains the reason of research collaboration and proposes of conceptual framework of its effect on research impact. A study of MIS co-authorship was illustrated and the theory of social capital was applied to measure co-authorship network. The results show that social capital has significant impact on research impact. Details of impact will be presented during the speech. Prof. Xiande Zhao, China Europe International Business School (CEIBS) 网络环境下的供应链与服务创新网络环境下的供应链与服务创新网络环境下的供应链与服务创新网络环境下的供应链与服务创新

摘要摘要摘要摘要: 中国企业正在面临转型升级的挑战，本讲座从供应链整合与服务创新的角度阐述中国企业应该如何提高竞争能力实现转型升级。现代服务与制造业都具有鲜明的组织网络化与信息网络化特征。在网络环境下制造企业应该如何通过供应链合作，学习，提高创新能力？服务型企业如何在网络中通过合作学习、提高服务创新能力，如何管理服务创新项目，推广创新成果，提高服务创新绩效及企业的竞争能力，均是企业十分关心的问题。本讲座将通过案例分析和理论总结和参与者讨论在供应链创新和基于网络平台的服务创新管理的一些重要研究问题及如何进行相关的研究。

Prof. Zhaohui Wang, Guangdong University of Finance & Economics Fieldwork and the standardized application of qualitative analysis in management research: from Chinese mainland experience

Abstract: In 2010, Chinese GDP surpassed Japan to become the world second largest economy in the world, at the same time, China market potential is being increasingly revealed. After the financial crisis in 2008, China economy has already can't satisfied with the "world factory", enterprises are faced with comprehensive upgrading and transformation, "Chinese style management" research become more and more important in the world. From the beginning of1980s, China mainland management research will recognize the practice as the guiding ideology, management field research in China mainland experienced four stages, enlightenment era, imitate era, standardization era and diversification era. In this presentation, first of all, the author introduces the reasons for the rise of China mainland management field research, because of management practice, as well as demand for interdisciplinary advantages from the academic itself, China mainland management field research began to develop; Secondly, the author introduces China mainland field research development process; Thirdly, focuses on how to do the management field research in China mainland? From the research experience, we found, on-the-spot investigation should be standardized implementation process in data collection, and standardized application of qualitative text data mining is the objectivity guarantee in data analysis; in the end, introduces a management field study examples of our research team: a field management study plan under the background of Chinese urbanization. The research will help the enterprises and academic friends understand the real situation of China mainland management research.

6

Paper Presentations – Session 1A

-Competition and Cooperation between Korean and Hong Kong in Service Industry-

Session Chair: Dr. Danny Ho 3.00pm – 4.30pm, 11th January 2014 Venue: A403 Seong, Deokhyun and Suh, Min Soo. A Framework for the Optimal Logistics Management in an Integrated Steel Mill Abstract: Smoothing the material flow in an integrated steel mill is the most important topic for the streamlined operation. The iron and steel making processes can be considered as decoupled processes before and after the blast furnace from the material flow perspective. An integrated framework for the optimal logistics management is proposed with two different modeling concepts. The first one deals with the problem arising from the ships’ arrivals to the blast furnace. The objective is to maintain a proper level of inventory for supporting 24-hr, continuous production activities while trying to minimize all relevant costs such as transportation, demurrage, and blending. The second model is related to the integrated scheduling from oxygen furnaces through continuous casters to hot rolling mills in a steelworks. The raw material management model has been developed and implemented to the integrated steel mill. However, the second model is not developed yet but the modeling framework with respect to the optimization is proposed. The integrated framework proposed will contribute to the optimization of the logistics management in an integrated steel mill.

Lee, Jung-Yoon. The Transformation of Korea Export Gateway System between 1991 and 2010 – A Typological Approach using GeoVisual Analysis Abstract: The purposes of this study are to analyze the transformation of Korean export gateways between 1991 and 2010 and to categorize them according to its attribute type. The analytical cycle is every 5 year (1991, 1995, 2000, 2005, 2010) during last 2 decades and the subjects of analysis are 25 trade gateways (21 seaports and 4 airports) in Korea. This study has developed 7 models to analyze gateways’ category based on 5 indexes (amount of export, export freight weight, export freight value, number of export countries, export item numbers). These models using geovisual analysis could categorize 25 Korean export gateways into 5~6 types. The outcome of this study gives us a good understanding of Korean trade gateway system and will help many gateway’s operators to establish their own developing strategies corresponding to its’ attribute type.

7

Ra, Hee-Ryang What is Going on in the Minimum Wages of Southeast Asian Countries? Abstract: Since 2012 Southeast Asian countries, which have played an important role based on the low income and rich labor force as production bases for foreign investors, increased minimum wages drastically, and the issue of minimum wage increase became a major concern among foreign companies that advanced into the area. Besides, this has caused difficulties to a number of foreign companies due to the increase of expenses. For example, in the capital cities of each country as of 2013, the minimum wage increased 44% in Indonesia, 35% in Thailand, and 17% in Vietnam, which indicates the far higher level of minimum wage growth than before. Although the causes might be different among the countries, such minimum wage increase among Southeast Asian countries is expected to continue for a while. Therefore, foreign companies that have advanced or will advance into Southeast Asia need to be prepared and establish management strategies in advance. In this regard, this study examines the deciding factors of minimum wages in Southeast Asian countries in macro-economic perspectives. Based on which the recent drastic increase of minimum wages in major Southeast Asian countries such as Indonesia, Thailand, Laos, and Vietnam are discussed to address the meaning and significance. Youn, Yeo-Hyun; Gu, Bon-A and Yhang, Wii-Joo. The Effect of Marina Landscape Design on the Images and Recommendation Intention Abstract: Marina plays a role as an outpost for oceanic leisure as well as a tourist attraction of destination landscape. The purpose of this research was to find the effect of marina design attributes on the image and then the image on recommendation intention in the landscape. The results of the study suggested that first, functionality influenced on the recommendation intention in mediating two factors such as attractiveness and composedness. Second, functionality and symbolicity affected recommendation intention (RI) in mediating cognitional and emotional image, respectively. Third, both functionality and symbolism for the cognitive image had an effect on the recommendation intention. Lee, You-Tay and Choi, Tae-Yeong A Study on Efficient Financial Support for Small Enterprise by Analysis of Loan Default Rates Abstract: We analyze the way for efficient financial support to improve the competitiveness of small enterprise by the analysis of loan default rates between the government fund and bank’s loan for small business in the view of national balanced economy. We find that (i) the loan default rate for government fund is lower than that of bank’s loan for small enterprise except 2008; (ii) the loan default rate of local banks is lower than that of nationwide banks; and (iii) the loan default rate of local ‘P Bank’ which operates a supporting center for small business is significantly lower than that of nationwide banks. The difference of loan defaule rates between ‘P Bank’ and nationwide banks amounts to 0.822%. The loan default rate of local ‘P bank’ is also significantly lower than that of other local banks.

8

Paper Presentations – Session 1B

-Optimizing Scarce Resources Using Quantitative Approaches-

Session Chair: Dr. Daniel Mo

3.00pm – 4.30pm, 11th January 2014 Venue: A404 Cheung, King-Yin and Cheung, Simon A Two-Level Optimization Model for Resource Allocation with Competition Abstract: This paper examines a two-level structure where multiple autonomous agents with competing interests in global resources benefit from cooperation in joint combinatorial optimization problems. At the bottom level, each agent computes its optimal operating conditions based on its own set of criterions as well as constraints from the upper level. All the agents then generate their “requests” for resources to the upper level. The requests are in the form of a range of values representing potential resources required, which, if granted, would allow the agents to operate optimally. At the upper level, a global decision maker coordinates all the requests and allocates resources in a way that is beneficial to all agents. The behaviors of an agent are determined by a set of, possibly conflicting, objectives subject to a set of constraints. This is formulated as a multi-objectives optimization problem, where a standard evolutionary algorithm can be applied to find the set of Pareto optimal solutions. These solutions are tentative and represent the feasible range of resource requests to the upper level decision maker, which could later modify the requests by changing the auxiliary parameter constraints at the lower level. On the other hand, the behavior of the global decision maker is formulated as a cooperative game to find the Pareto optimal solution (or so-called Pareto frontier) to the resource-dividing problem. The players of the game are the agents and the strategy set for every agent is the amount of resources requested within the feasible range determined from the level below. Given a fixed set of global resources, the global decision maker identifies the best strategy it can do to jointly optimize the agent’s payoff function. It is clear that the sum of the resulting strategies granted to the agents must be less than or equal to the available resources. Appropriate scalarization could be applied in optimization when the requests are prioritized. In the case when no decision can be taken, the global decision maker will “re-adjust” the requests by choosing the strategies in the next Pareto frontier layer. This new decision is sent down to the agents, which will update their constraints and generate new requests, leading to the global decision maker reactions again. These requests/updates between the upper and lower levels continue until the final feasible solution that satisfies every agent is found or the maximum iteration is reached. This two-level structure captures naturally many of the real-world decision making processes, such as the buyer-supplier negotiation and decentralized organization management. In addition, faster solution could be emerged, as the agents’ requests become constraints in the upper level optimization. As an example, a business organization has one headquarter and many strategic business units which could be distributed over many geographical locations or have diverse services. The headquarter or the highest level of management is in charge of making major company-wide decisions for the rest of the organization and delegates the remaining decisions and responsibilities to the business units. Some of the decisions made by the headquarter may include redistributing the cash flows, assigning key talents to know-how, and allocating common facilities to the business units, while each business unit handles its own set of goals such as capacity, productivity and service time. As both headquarter and business units belong to the same firm, it is valid to use a cooperative game model. At the same time, the two-level structure also incorporates the intra-firm competition for parent’s resources.

9

Cui, Xiling; Qiang Zhou and Chi Hon Li. How Do Sellers Design Their Auctions: An Empirical Study on Online Auction Price Evaluation (*)

Abstract: In online auctions, sellers need to consider the final price evaluation from buyers. High final price evaluation of auction winners indicates high participation of them in the future. It is helpful for sellers in retaining their old customers, thus increasing the revenue. This study investigates the final price evaluation of online auction winners’ by examining its antecedents. Empirical analysis reveals that perceived enjoyment, starting price and consumer surplus are positively related to the final price evaluation, while bid increment is negatively related to it. Glowacka, Karolina and May, Jerrold H. Simulation Study Examining Queuing Methods for Early and Late Arrivals in an Outpatient Clinic Abstract: Non-punctual medical clinic arrivals greatly disrupt operations, create inefficiencies and decrease service quality. This research examines the effects of early and late patient arrivals based on data collected at a specialty cardiac clinic within the Veterans Administration Pittsburgh Healthcare System. Combining simulation techniques with an embedded patient no-show predictive model, we explore different queuing methods designed to reward on time appointment behaviors and optimize patient management within the clinic workday. In outpatient clinics it is a fact of life that patients come early and late, and may expect to go into service early when they are early, and expect to be serviced even when they are late. This research examines methods of sequencing patients once they arrive at the clinic. We analyze eight queuing disciplines under four scenarios of schedule tightness. While the Earliest Due Date method, frequently implemented in practice, might be attractive to service providers who want to minimize deviations from the baseline schedule, it encourages patients to arrive late and thus can indirectly disrupt clinic operations. Our proposed method rewards on time arrivals and penalizes patients who arrive late or very early for their scheduled appointments. Clinic patient management policies that remove incentives for very early or late arrivals may encourage patients to arrive on time for schedule appointments and improve overall service efficiency. Mo, Daniel Selecting a Service Parts Contract for Maintaining Critical Systems Abstract: To achieve the high availability of mass critical systems, it is crucial to store spare parts on-site for the systems maintenance. However, due to the high cost concerns of spare parts operations, it was a challenging issue for academic and practitioners to optimize the costs of inventories and the risks of component breakdowns in the scattered locations. In recent years, due to the evolution of third party logistics companies, manufacturers have started to provide different service contracts, such as a next day service and a special expedited service, for user selection. Selecting an appropriate service contract, users could totally or partially outsource the management of on-site spare parts to service providers apart from solely managing the spare parts in the traditional approach. In our work, we focus on how the users of critical systems can manage the service parts responsiveness for systems maintenance by taking advantages of this new service offer. The quantitative decision framework incorporates the considerations of service contracts with different response time, the component variety, the costs of on-site spare parts and the impacts of component failure with uncertainty. The user decision problem of selecting service contracts and the stocking level of multiple on-site spare parts is formulated into a stochastic mathematical model. Then, we propose an efficient solution method to identify the best selection. Solving the decision model, we further evaluate the relative values of service contracts with different response times by the decomposition technique. Accordingly, a service contract with shorter response time provides the overall cost saving opportunities subject to the contract price and hedges the risks of variability for users. Such results not only assist users in designing the systems maintenance strategies but also guide the service providers into managing the service parts operations effectively.

10

Paper Presentations – Session 2A

-Sustainability and Customer Focus-

Session Chair: Dr. Eugene Wong

10.40am – 12.10pm, 12th January 2014 Venue: A403 Yu, Carisa K. W. and Yip, Tsz Leung Sustainability Portfolio Analysis: A Case of Ship Procurement

Abstract: A new portfolio analysis method is developed to determine the optimal procurement in which the risk can be reduced by a particular combination of facility type and capacity. A typical business model is to acquire facilities for sustainable profits. The sustainable procurement decision should be reached using the key factors of risk–return. A typical company can manage a limited number of facilities and short-selling is not practical. A portfolio consists of an acceptable combination of facilities generated by building up a mix of carefully chosen portfolio. Based on the portfolio theory and industry-related evidence, we construct a functional portfolio of ships. The expected return of the asset combination is examined with respect to various ship types and capacities. We quantify the risk for different categories of ship in different sectors so as to investigate the characteristics of ship portfolios. Estimation of such risk is of considerable interest to academics and practitioners alike, since determining the behaviour of risk has important applications for procurement decisions. The new portfolio method should strongly support the decision-making process involved in acquiring facilities and is readily extendible to more general sustainability issues and other industries.

Ho, Danny A Study of Vegetable Marketing Organization’s Hydroponic Vegetables Production and Distribution System in Hong Kong Abstract: With advancement of innovative farming technology, urban hydroponics, which involves growing plants with nutrient solution in a soilless environment of urban areas, is no longer a foreign concept in Hong Kong. The aim of this study is to describe and analyze the Vegetable Marketing Organization (VMO)’s hydroponic vegetables production and distribution system in Hong Kong. Data were collected through face-to-face interview and VMO’s website and reports. The motivations, production process, and distribution network and operations behind this non-profit-making urban hydroponics initiative are examined. The sustainability of the urban hydroponic vegetables production and distribution system is analyzed from the economic, social and environmental aspects. Opportunities and challenges for development of sustainable urban food supply chains are also discussed.

11

Wong, Eugene Y. C. and Lau, Henry Y. K. Green Port Development in Hong Kong – Reduction of Marine and Port-related Emissions (*) Abstract: The impact of air pollutant emissions from shipping and port operations towards environment and health is a pressing global concern. The marine and port sectors have contributed significantly to the growth of the supply chain industry and the economic development, while, at the same time, the pollutant emissions rising from ships and port-related operations have inflicted adverse public health concerns. Leading ports and terminals continuously impose measures to reduce the greenhouse gas emitted during vessel berthing. Hong Kong, being the third largest container port in the world and having the second cruise terminal running into operation, urgently requires comprehensive green port operations and practices. This paper evaluates and benchmarks the latest measures conducted by the leading ports over the world in reducing the greenhouse gas emissions from ship and port operations. International regulations, onshore power supply, vessel speed reduction, and fuel switching are analyzed. Recommendations on the future green port development in Hong Kong are proposed. Fu, Wenhui Business model Innovation and Value Co-creation Based on the Dynamic Process of Platformalization - A Longitudinal Study of Tencent and Shangpinzhaipei Cases

Abstract: By studying the dynamic process of platformalization on Tencent（騰訊）and Shangpinzhaipei（尚品宅配）, we explored how the business model innovation influences the value co-creation in the

context of platform. The entry of new participant, the diversification of product, and the specialization of platform service promotes the interaction of different participants, changing their roles, key resources or capabilities by network effect (inside or cross-group) of platform. We also summarized some paradigms of how multiple parties achieve win-win in the platform ecosystem: 1) every party plays multiple roles in order to get cross-group network effect. 2) The diversification of product and the specialization of platform service give rise to inside-group network effect. 3) The entry of new participant helps the platform to expand its ecosystem by a nested external expansion path. Ng, Stephen; Zhuang, Bochao and Zhao, Xiande Unravel the Paradoxical Effect of Customer Focus on Firm Performance – from the Perspective of Strong-weak Tie and Dynamic Capability Abstract: Customer focus is a double-edged sword that seldom has empirical studies to consider its paradoxical impact on firms and how firms can deal with such effect. In this study, we address two questions: given the paradoxical effect of customer focus, how do brand manufacturers achieve both product quality and product innovation and thus financial performance? And second, will the firms of different customer-ties adopt different concepts and approaches to achieve performance? We thus establish a theoretical model based on the notion of strong-weak tie, a perspective emerging from social capital theory, and that extends the traditional strategy-performance model by introducing dynamic capabilities and operating capabilities as mediators. Using a sample of 560 Chinese brand manufacturers, we find that while the dynamic capability of supply chain partners exploitation leads to operating capability of product innovation but not product quality, that of process management influences product quality but not product innovation instead.

12

Paper Presentations – Session 2B

-Supply Chain Management Issues, Risks and Opportunities-

Session Chair: Dr. Ricky Wong

10.40am – 12.10pm, 12

th January 2014

Venue: A404 Zhou, Qiang and Lee, Tien-sheng. Financial Supply Chain Management and Supply Chain Finance: A Concise Literature Review (*)

Abstract: Supply chain management research largely focuses more on material flow and information flow than on financial flow. The literature on financial supply chain and supply chain finance primarily grows out of analytical models or mathematical programming models. The paper calls for empirical studies with theoretical basis in this research area. Wong, Wai Hung; Ng, Stephen and Wong, Ricky An Integrative Framework on the Collaborations and Risks of Customer-Involved Product Development

Abstract: To achieve higher customer satisfactions by matching their wants and needs closely, getting customers involvement in a New Product Development (NPD) process has become a recent trend for the manufacturing industry. However the risks arisen from customer involvement in the NPD process have not been investigated and current studies concentrated to emphasise the positive influence on product success. We start by identifying the manufacturer-customer relationships and customer involvement levels. We investigate how these relationships and customer involvement levels are driven by the lead-user theory and power theory. An integrative framework is then proposed to describe the interactions between these four components on customer involved NPD, and address the potential risks caused by mismatch manufacturer-customer collaboration. An exploratory qualitative research was conducted to examine the interactions between manufacturers and customers in the NPD and identify the embedded risks resulting from different patterns of customer involvement. Lastly, the managerial implications on managing customer involved NPD and possible risk mitigation methods are discussed. Li, Tillotson The Supplier-Intermediary-Consumer Channel of Wine in China: A Case Study

Abstract: The rapidly growing wine market in mainland China has attracted attention of world practitioners in the industry. In 2012, China has imported about US$40 billion worth of wine, accounted for over 50 per cent of the total Asia’s import. Yet, wine consumption only accounted for about 2 percent of alcohol consumption in China. The purposes of this paper are: first, to study how did a wine intermediary in Guangzhou, China, turn from a franchisee local retailer to an importer sourcing supply from different European countries? How does it promote its wine to distributors and consumers? How does it manage and improve its channels from sourcing in Europe to selling to consumers in the mainland? Finally, an efficient and a cost effective supply-chain model will be developed for the wine intermediary. Interviews of the owner and his suppliers were conducted. Business reports in wine issued by the Hong Kong Trade Development Council and the alike were studied. Logistics providers were consulted. The actual process from placing an order to a European supplier to shipment arrived at a Guangzhou port was tracked. The model developed will provide potential new entrants to the industry a sample route so as to reduce if not minimize their initial cost thereby providing Chinese consumers more wine choices at affordable prices.

13

Kwong, Kenneth K. and Leung, John W. K. In Search of Third-Party Logistics Synergies and the Effects on Performance (*)

Abstract: It is held that the competitiveness of firm in the market can be significantly improved by outsourcing its logistics function to third-party logistics providers (3PLs). A survey result of 200 companies in South China offered an empirical support to this argument. Findings suggested that a close collaboration between the firm and logistics providers is likely to create synergies among the parties for greater efficiencies and better results. In search of these synergies, the firm is advised to integrate its operations with 3PLs and to remain flexible in dealing with the third-party. Featuring with these operational characteristics, it is believed that the firm can have a better chance to benefit from the outsourcing of logistics function to third-party logistics providers. Wong, Ricky When Too Much Hurts: Anchoring-and-Adjustment Heuristic in Procurement

Abstract: Although heuristics are used to help make judgements and decisions in complex situations with minimal effort, they lead to systematic biases. Interest in the relevance of behavioural theory and laboratory-documented cognitive biases to real world decision behaviour has increased markedly over the last 15 years. These studies investigate one of the well-documented decisional heuristics, anchoring-and-adjustment, in the context of procurement. Anchoring-and-adjustment heuristic regards decision makers' insufficient adjustments away from an initial value. That is, in an environment of uncertainty or risk, their estimates are usually influenced by irrelevant values. Anchoring-and-adjustment heuristic has been considered in literatures of bargaining, finance, real estate management and marketing. Also, past studies have shown that experts are, too, susceptible to this bias (see Northcraft & Neale, 1987, for example). Specifically, decisional biases do not seem to disappear once decision makers are placed in the information-rich context in which actual decisions are being made. In the area of procurement, employees are required to make frequent decisions about the quantity to be replenished for different items. It is common that they possess irrelevant information (e.g. order size in the past). The data to be collected is the product of two experimental studies. The studies examine the biasing potential of anchoring-and-adjustment in an information-rich setting. The primary research questions to be are: 1. Do the past replenishment sizes bias the estimate of future demand for a certain item?, 2. Do amateurs and experts suffer from the anchoring-and-adjustment bias when making replenishment order? In order to assess the generalisability of laboratory research on this decision heuristic, students and employees in the field of procurement or supply chain management will be the subjects of Study 1 and Study 2 respectively. Subjects in Study 1 are junior and senior undergraduate business school students and those in Study 2 are experts in the field of supply chain management and procurement. Subjects in both studies will be randomly assigned to one of the three experimental conditions (1. Control, 2. High Anchor and 3. Low Anchor). Subjects in the three conditions will receive the same information with one exception - the replenishment size of Item X in the previous year. The information that is identical across the three conditions is the potential future demands of Item X with the corresponding probability (e.g. 30% chance of 1000 units required, 40% chance of 5000 required, 30% chance of 8000 units). The "anchor" past replenishment sizes used in the High Anchor and Low Anchor Conditions are 6,110 units and 3,290 units respectively whereas control subjects will not receive any anchor. These anchors represent deviations of approximately 30% of the expected value of future demand. (*) Full paper – All full papers are available on http://scm2014.hsmc.edu.hk/papers

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