A Study of Logistics Networks: The Value of a Qualitative Approach

DOIhttp://doi.org/10.1111/emre.12086
Date01 March 2017
Published date01 March 2017
A Study of Logistics Networks: The Value of a
Qualitative Approach
THIERRY HOUÉ and EILEEN MURPHY
1
Department of Supply Chain Management and Information Systems, ICN Business School CEREFIGE,Metz, France
The purpose of this paper is to demonstrate the relevance of a qualitative approach to map the nature and
operation of the plural relationships of different logistics networks. Based on a literature review and an empirical
study, a theoretical model of three logistics networks of proximity is presented, explained and linked to a discussion
on the appropriateness of qualitativeresearch in supplychain management. A matrix analysisis employed to develop
the model. The paperconfirms the significanceof a qualitative view for the research considered. The advantages and
limitations of such an approach are also examined. Finally, the paper provides new perspectives for research and
supports the idea of an adaptation or a combination of methods in the field of supply chain management while
refuting a methodological dogmatism.
Keywords: matrix; methodology; networks; proximity; qualitative analysis; supply chain management
Introduction
The logistics function of firms has been changing
constantly since the late 1980s. Today it has a
fundamental role as an instrument contributing to the
agility and development of principles of organization
management (Christopher 2000). However, these
changes require moving from purely transactional
interactions to close and consolidated relationships
(Peck & Jüttner 2000). This means an improved
coordination of physical and information flows
between companies with an increasing number of
business partners (Sauvage 2003). Arguably, the term
logisticshas gradually been replaced by the concept
of supply chain which embraces a more inter-
organizational coordination of flows (Christopher
2011). There is continued debate and a lack of real
consensus amongst scholars on the overlapping of the
terms logistics and supply chain management (SCM).
An answer to this dilemma is provided by practitioners
themselves. A study of Lummus et al.(2001)shows
that practitioners see a difference between the two
terms. Logistics is essentially related to the physical
flows of material without information transfer while
supply chain management includes ideas of processes
and integration. SCM is viewed as strategic and
logistics is more operational or tactical. Logistics is
considered as within one company. SCM embraces
not only logistical flows but also customer
management, production processes and information
useful to manage the activities at the supply chain
nodes (Lummus et al. 2001). But for Larson and
Halldórsson (2004), even among firms, it is sometimes
possible to have different approaches and vision of the
two concepts. Stock and Boyer (2009: 706) propose a
consensual encompassing definition of SCM: The
management of a network of relationships within a
firm and between interdependent organizations and
business units consisting of material suppliers,
purchasing, production facilities, logistics, marketing,
and related systems that facilitate the forward and
reverse flow of materials, services, finances and
information from the original producer to final
customer with the benefits of adding value,
maximizing profitability through efficiencies and
achieving customer satisfaction. This definition
emphasizes concepts of network, relationship and the
plurality of players. It reinforces our idea of a supply
chain constituted in a management of plurality of
networks and relationships. We adhere to this vision
of SCM in this paper. For Gardner and Cooper
(2003) the concepts of network and supply chain are
related. Lummus and Alber (1997: 22) define supply
chain as the network of entities through which
Correspondence: ThierryHoué, Departmentof Supply Chain Management
and Information Systems, ICN Business School CEREFIGE, 3, Place
Edouard Branly,F-57070 Metz, France. Tel: +33 3 8756 37 18. E-mail
thierry.houe@icn-groupe.fr
European Management Review, Vol. 14, 318, (2017)
DOI: 10.1111/emre.12086
©2016 European Academy of Management
material flows. Those entities may include suppliers,
carriers, manufacturing sites, distribution centers,
retailers and customers.
The literature describes a wide variety of business
relations from a classical economic transaction to a true
collaborative relationship within the supply chain
(Wilding & Humphries 2006). A mix of cooperative and
transactional attitudes in supply chains can lead to the
emergence of different types of relationships and
networks. A more strategic view of these networks has
been gradually clarified with the strengthening of
cooperation andalliances between players. This evolution
from the supply chain concept to the network notion
follows the development of a logistics function that has
progressivelybecome strategic and integrative (Bowersox
1990; Stock & Lambert 2001).
Even if SCM has become a fully-fledged research field
(Skjøtt-Larsen 1999), the discussion in the previous
paragraph shows the difficulty of clearly delimiting some
concepts. However, it seems clearer that positivist
paradigm and quantitative methods continue to take the
lead in SCM research (Arlbjørn & Halldórsson 2002;
Näslund 2002). In considering this and in order to
contribute to the methodological discussion on the topic,
we propose to question the use of a qualitative approach
in SCM. The issue can be stated as follows: facing the
visible hegemony of the positivist paradigm and
quantitative methods in the field of supply chain
management research, is the use of a purely qualitative
approach appropriate for the analysis of logistics
networks? The main objective of this paper is to
demonstrate the relevance of a qualitative approach to
map the nature and operation of the plurality of
relationships studied within different logistics networks.
The empirical work and the application of a matrix
analysis attempt to incorporate dimensions of a supply
chain strategywithin a strategic network (Meade & Sarkis
1998). Explaining the benefit of a qualitative approach
could enhance the knowledge of supply chain
management. Especially at a time when it should be
approached as a strategic management of different
networks (Harland et al. 2001), and where logistics
strategies are definitively considered as part of the overall
strategy of organizations (Harrison& Van Hoek 2005). It
is also a way to demonstrate the usefulness of a qualitative
methodology, arguably suitable to describe relationship
dynamics.
To provide an answer to the research question, the
paper offers a step by step qualitative study based on a
matrix analysis conducted in the Grand Duchy of
Luxembourg. This country is considered as a relevant
space of investigation in relation to the research
objectives. On 4 August 2004 the Luxembourg
Government decided to retain logistics activities as one
of the target areas of its economic development policy
(Guillaume 2008). During the last decade, Luxembourg
has made important investments into restructuring its
economy and attracting logistics activities, often seen as
a lever for economic growth (Hannigan & Mangan
2001). Today, two major zones are dedicated to logistics
activities in Luxembourg. In this small European country
of 562,958 inhabitants in January 2015 (Statec 2015),
nearly 13,500 people are engaged in the logistics and
transport sector (Damiani 2015). A total of 18 interviews
with different groups of players was conducted. The
following groups were investigated: manufacturing
companies, third-party logistics, large retailers, public
institutions and real estate logistics companies. This
sample provided an overview of the relationships within
the network.
Literature review
Since the main objective of this paper is to demonstrate
the appropriateness of a qualitative approach in the
context of logistics networks analysis, the literature
review is divided into two parts. First, selected studies
were examined to show the recent rise of a qualitative
approach in SCM to justify the recourse to such methods.
This is followed by a thorough explanation of the choice
of concepts which facilitate the conduct of the research.
From the dominance of quantitative methods to therise of
qualitative approach in SCM
Research methods and research practice issues remain
fundamental questions for scholars (Lee & Cassell
2013). Research in logistics and SCM is therefore not
immune to debates and controversies concerning the
use of both qualitative and quantitative methods. It
seems that qualitative management research is
characterized by its diversity and its creativity, two
characteristics that also confer value in complex and
multiple research contexts (Johnson 2015). Johnson
et al. (2006) call to mind its significant contribution
to many substantive areas of management. It is
stimulated by an increasing collection of modes of
engagement which vary philosophically (Prasad &
Prasad 2002). Nevertheless, quantitative methods
remain very present in supply chain management and
deductive positivism seems to be the main common
research approach (Arlbjørn & Halldórsson 2002). An
important study which focuses strongly on research
methods in these fields has been conducted by Burgess
et al. (2006). With a structured literature review
published in the International Journal of Operations
& Production Management, they demonstrate that there
is a predominant use of the functionalist paradigm.
Ninety seven percent of the articles studied in this
4T. Houé and E. Murphy
©2016 European Academy of Management

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