Methodological Considerations in Industryrelated Logistics Research

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Methodological Considerations in Industry-related
Logistics Research

• Prof. Lauri Ojala
• NORDLOG Ph.D. workshop
• Trondheim, June 12, 2002

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The presentation discusses...

• the benefits of industry-related research,
• the constraints of industry-related research,
• from a methodological point-of-view.
• The presentation also contains examples of
• industry-related dissertation research
  trajectories.
• However, the scope is not limited to Ph.D.
  research.

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Industry-related research?

• Research conducted and led by university staff
  for firms or groups of firms or industry
  representatives.
• Firms or their representatives take actively part
  in the research process.
• The private sector is funding parts or whole of
  the research.
• Post-graduate theses often part of the
  process.
• M.Sc. Thesis work not included here, if it is not
  part of a university-led project.

Industry understood in the broad sense of the
word (?näringsliv)
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How does industry-related research start?
2. Simultaneous matching
Research proposal with University X
3. Contract research
Research proposal to University X
An on-going project or process of Firm A
1. Active promoting
Research proposal from University X
Time
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The entry modes affect the available choices

• 1. Active promoting is often based on previous
  contacts
• The research idea comes from the university or an
  individual researcher.
• These have a model, method and/or theoretical
  framework that needs empirical evidence or
  testing.
• 2. Simultaneous matching may occur as part of a
  larger research program
• The idea can come from either side, or from a
  public research program.
• The applied model, method and/or theoretical
  framework often chosen jointly.
• 3. Contract research is usually very pragmatic
  and short-term
• The firm (or industry) has defined an area or
  issue that needs research input.
• The choice of method or framework may be very
  limited.

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The source of funding has a bearing too
Fully private funding
Public-private funding
Public funding
Public co-fund, group of firms
Unit of a firm
Public co-fund, one firm
Public funding only
A firm
Group of firms
Often required, restricted
Not easy
Not easy
Not easy
Often required
Public reporting
Required
High within the unit, often low in other units
or externally
Medium to high within the firm, often
low externally
Medium to high within the firm, often
low externally
Low to medium within the group, often
low externally
Low to medium within firms, medium to high
externally
Medium within the group, often low externally
Internal and extrenal access
Public funding publicly funded research
agencies, public foundations or universities own
funds.
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Theory, Method and Observation Openness

• Positivistic research typically starts with
  theory and ends with observations
• Theory -gt Method -gt Observation
• Grounded research approach has often the opposite
  order
• Observation -gt Method -gt Theory
• The openness of framework is often low in
  positivistic approaches, and high in open-ended
  research.
• The approaches starting with well-founded theory
  and/or method suit industry-funded research
  better than e.g. open-ended grounded approaches.

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Openness of framework in 25 Nordic Ph.Ds
Contribution to Theory testing
Contribution to theory generation
Contribution to practice
Adapted from Vafidis, D. (2001) Methodological
tendencies in logistics research, Empirical
evidence from 25 Finnish and Swedish doctoral
dissertations 1994-1998, TSEBA, Series D
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Key benefits for firms of university-based
research, with related concerns

• At best, offering a neutral and external view
  based on the latest theoretical thinking.
• Maintaining the unbiased approach even under
  criticisms and opposition from within.
• Possibility to approach external stakeholders
  thanks to the universities integrity.
• Maintaining high research ethics that does not
  compromise institutional or personal
  integrity.
• A long-term expert relationships that goes way
  beyond consultancy type of assignments.
• Depends on mutual understanding of long-term
  benefits.

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Firms research interest goes seldom beyond
solutions of practical and short-term value
Researchable domain
Scope of research
General
Theory building
Open-ended questions
Model building and testing
Case descriptions
Theory validation
Analytic approaches
Pragmatic operational or competitive issues
Detailed
Actors approaches
Solutions
Timeframe
Week Month Quarter
Year 4 years
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Three illustrative research trajectories

• Background
• Industry objective
• Research objective
• Funding
• Duration
• Main findings
• Backing
• Resistance
• Access
• Choice of method
• What happened

• Three single firm cases
• A no-go because of corporate politics.
• Value-for-money through better supplier
  knowledge.
• A strategic shift identified, but the firm unable
  to change.

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A no-go because of corporate politics

• Background After Sales division of a
  stock-listed manufacturer.
• Industry objective Implement a global direct
  distribution (DD) model.
• Research objective Test, analyse and apply
  direct distribution concepts.
• Funding Direct funding approved by VP After
  Sales.
• Research duration Intended 3 years, realised 1.5
  years.
• Main findings DD with clear operational benefits
  and cost savings.
• Backing Board split over strategy and
  preoccupied with costs.
• Resistance Some Board members and other
  divisions.
• Access Excellent within the unit, limited in
  other units.
• Method Multiple case analysis on SC benefits
  and costs.
• What happened The concept not approved by the
  Board, VP resigned after two years the
  concept was re-introduced under another name
  along a massive e-business project to enable
  global on-line visibility. No academic reports.

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Value-for-money through supplier knowledge

• Background Production division of a
  stock-listed manufacturer.
• Industry objective A coherent sourcing strategy
  for key suppliers.
• Research objective Analyse model industrial
  buyer-supplier relationships.
• Funding Direct funding approved by VP Sourcing.
• Research duration Intended 3 years, realised 2
  years.
• Main findings Intra- and inter-functional issues
  undermine supplier relationships normative
  rules difficult to give.
• Backing Division management and key Board
  members
• Resistance Limited intra-functional frictions
  affected data gathering.
• Access Excellent with the unit and suppliers,
  good in other units.
• Method Multiple case study within firm and
  suppliers interviews.
• What happened The intended sourcing strategy did
  not materialise VP was absent a lengthy
  period. The data and expertise gathered was
  very useful when preparing an extensive
  e- sourcing implementation. Dissertation
  expected in 2003.

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Strategic shift identified firm unable to change

• Background A stock-listed distributor
• Industry objective To find arguments for the
  current market governance.
• Research objective Understand the business logic
  in logistics terms.
• Funding Company-related foundation.
• Research duration Intended 3 years, realised 2
  years.
• Main findings Current business model and
  strategy unsustainable.
• Backing CEO and VP, but Board split over
  principles.
• Resistance Some Board members.
• Access Excellent within the firm and with
  external stakeholders.
• Method Multiple case analysis on SC benefits
  and costs.
• What happened Top management in disarray, CEO
  retired, opposing Board members left the firm,
  new CEO had difficulties gaining control. The
  indicated business logic was desperately
  needed. Controlling stake eventually taken
  over by an expanding firm, focused on
  logistics strategy. Dissertation in 2003.

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Problems in industry-related research

• Discontinuities in business.
• Key contacts changing positions or firms
• Mergers and acquisitions
• Change in management or strategy
• Sudden changes in the competitive position
• Lack of contingency plans in the research
  contract.
• Unclear confidentiality issues or public
  reporting principles.
• Lack of time to communicate the research process.
• Lack of interest for methodical or theoretical
  considerations.

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The joint-Nordic PhD programme in logistics

• Ph.D. Course on Case Study Research in Logistics
• Turku School of Economics and Business
  Administration,
• Turku, Finland
• January 14-18, 2003
• Contact for further information log_at_tukkk.fi

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Course outline

• The methodological basis of the course lies in
  the three different approaches to the discipline
  the analytic approach, the systems approach and
  the actors approach as presented by Arbnor and
  Bjerke, 1997. Each approach leads to different
  research questions and requires different methods
  of inquiry. The students should learn to
  understand this relationship and to choose the
  methods that are consistent with the approach
  chosen.
• The course consists of the following parts
• Part a. State of the art in logistics
  research input from senior academic researchers.
• Part b. Feedback from senior researchers on the
  students own methodological considerations.
• Part c. The students prepare papers on the course
  subject, Applying Case Study Research Methods
  in logistics research.
• Tentative cost per participant 500 incl.
  accomodation and meals.
• For Nordic participants, external funding may
  become available.

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Preliminary Course programme

• Introduction to the course. By Professor Lauri
  Ojala
• A Review of Nordic Logistics Research Associate
  professor Britta Gammelgaard
• An Analysis of Nordic PhD Dissertations. Econ.
  Lic. Dimitrios Vafidis and Professor Lauri Ojala
• A Framework of Logistics Research By Professor
  Stock
• Evolving trends in international logistics and
  SCM research By Professor Stock.
• The Arbnor Bjerke framework for business
  research, Associate professor Britta Gammelgaard
• Theoretical and Methodological Issues in Case
  Study Research (a). Professor Mats Abrahamsson
• Theoretical and Methodological Issues in Case
  Study Research (b). Professor Lillian Barros
• Theoretical and Methodological Issues in Case
  Study Research (c). Assistant Prof. Olli-Pekka
  Hilmola
• Theoretical and Methodological Issues in Case
  Study Research (d). Professor Jari Juga
• Constructive Research in Business, Accounting. By
  Professor Kari Lukka,
• Epistemological considerations in research. By
  Professor Olav Solem
• Presentation of own research questions and
  methodological considerations. In groups led by
  professors
• Introduction to writing scientific papers. By
  Professor Marianne Jahre
• Collaborative writing. By Docent Andreas Norrman
• Collaborative paper writing using Case Research
  method in logistics research. In groups with
  professors
• Hand out and presentation of the students
  written papers to all participants.
• Rounding off the course and course evaluation

Tue, Jan 14
Wed, Jan 15
Thu, Jan 16
Fri, Jan 17
Sat, Jan 18