Theory development in China-based supply chain management research. A literature review

Date14 November 2016
DOIhttps://doi.org/10.1108/IJLM-07-2015-0119
Pages972-1001
Published date14 November 2016
AuthorXiaohong Liu,Alan C. McKinnon
Subject MatterManagement science & operations,Logistics
Theory development in
China-based supply chain
management research
A literature review
Xiaohong Liu
Business School, Central University of Finance and Economics,
Beijing, China, and
Alan C. McKinnon
Department of Logistics, Kuehne Logistics University, Hamburg, Germany
Abstract
Purpose Although well established in North America and Europe, the study of supply chain
management (SCM) is still at a relatively early stage in its development in China. The transformation
and rapid growth of the Chinese economy has, nevertheless, created major supply chain challenges for
the country making SCM a very fertile area of business research. In Western countries, research on
SCM is now mature and underpinned by a solid body of theory. The purpose of this paper is to examine
the extent to which research on SCM in China has also developed a theoretical basis.
Design/methodology/approach The research involved a systematic review of 150 papers
published in 18 journals in the fields of SCM, logistics, operations management and marketing during
the period 2004-2014. A three-step process was adopted to select appropriate journals, identify relevant
articles and classify them in terms of their theoretical content.
Findings The study hasconfirmed that, becauseof its unique economic, political and cultural setting,
supply chain development in China has presented new research challenges. Many examples were found
of researchers conducting quasi-experiments to test the applicability of established theories to Chinese
supply chains while others have tried to develop new ones that are more closely aligned with the Chinese
economy and management practices. Researchers have exhibited a heavy reliance on existing theories,
with relatively few attempting to customise them to the Chinese context or to construct new ones.
Research limitations/implications Given the broad scope of SCM, it is possible that the journal
and paper selection processes have accidentally screened out relevant papers. The total sample of
papers is, nevertheless, large for an explorative study of this type and should, therefore, give an overall
impression of the level of theory development in Chinese SCM research.
Practical implications This study provides a general framework within which to assess the
application and development of theories in the Chinese SCM context. It is principally concerned with three
components: the SCM phenomena studied, the Chinese business environment and the theoretical
contribution of the research. The paper is targeted more at an academic audience than practitioners, though
provides an overview of the research so far undertaken on SCM in China that should be of wider interest.
Originality/value This study is the first of its kind to review China-based SCM research
systematically from the perspective of theory development. It should support the evolution of SCM
theory not only in China but also more generally.
Keywords China, Theory development, Supply chain management
Paper type Literature review
The International Journal of
Logistics Management
Vol. 27 No. 3, 2016
pp. 972-1001
©Emerald Group Publishing Limited
0957-4093
DOI 10.1108/IJLM-07-2015-0119
Received 22 July 2015
Revised 8 November 2015
Accepted 6 December 2015
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/0957-4093.htm
This study is being supported by a grant from National Social Science Foundation of China
(No. 15BGL002) and the Ministry of Education (PR China) of Humanities and Social Science
project (No. 14YJA630034). The authors would like to express their sincere appreciation to the
three anonymous reviewers and the editors for their constructive comments and suggestions on
how the paper might be improved.
972
IJLM
27,3
1. Introduction
As the largest transitional economy in the world and essentially the workshop of the
world, China is intriguing to academic researchers. This is not merely a consequence
of its unique national culture and long, distinctive history, but also of its
unprecedentedly swift economic growth. Since the adoption of the reform
programmes of the late 1970s, China has transformed itself from a planned economy
and traditional agricultural society, to a market-oriented economy and advanced
industrial society. As a consequence of this transition, China has experienced
extraordinary economic development and systematic restructuring. According to a
report of the National Bureau of Statistics, during the period 1978-2014, China had the
highest annual GDP growth rate in the world, averaging 10 per cent year on year.
This rapid growth has made China an indispensable player in the global economy.
Since Chinas accession to WTO, it has reformed its governmental administration in
compliance with international market rules, diversifying enterprise ownership and
moving away from solely state-owned enterprises (Nancy and Liu, 2011).
This transition is on-going. Traditional governance structures, inherited from the
days of central planning, have been weakened and dismantled, while, many of the
barriers that previously constrained business have been removed (Li and Peng, 2008;
Liu, 2011; Wang, 2006). Certain components of the old economic system nevertheless
endure, impeding the operations of industries and companies (Lau and Zhang, 2006).
In its current stage of economic transition, the Chinese market system is still
under-developed by Western standards, though its development pathway differs from
that followed by todays leading economies. This means that private businesses in
China cannot function as they would in a wholly market-based economy (Nancy and
Liu, 2011). China thus provides a uniquely socio-economic setting within
which researchers can test and develop the theoretical aspects of supply chain
management (SCM).
SCM is inextricably intertwined with the Chinese economy and society, and for
this reason is developing rapidly. As alreadyobservedbysomeresearchers(e.g.Liu,
2014; Zhao et al., 2006a, b, 2007), in recent decades a stream of China-related SCM
studies have been published. This stream has enabled the exploration of many SCM
phenomena in a Chinese context. For example, having reviewed leading journals in
the decision sciences between 1995 and 2006, Zhao et al. (2007) discovered that
supplier selection, evaluation and management, supply chain collaboration and
relationship management were dominant areas for research. Similarly, by reviewing
eight top-tier logistics and SCM journals within the 2001-2012 timeframe, Liu (2014)
identified the main research issues associated with SCM, including strategy,
planning/configuration, relationship management, integration/coordination,
flexibility, quality management, risk management and green SCM. These studies
have yielded findings that not only enrich the general body of SCM knowledge; they
also show that the development of SCM in China has several distinctive features,
including its emergent status, transitional institutional environment and unique
culture. This makes it an interesting supply chain environment within which to
apply, test and, if necessary, refine those theories already developed to explain
supply chain practices and trends elsewhere, particularly in North America and
Europe. Nevertheless, no attempts have so far been made to review the theoretical
underpinnings of SCM research conducted in China.
Theory is a statement of the nature of the relationships between concepts
(Amundson, 1998, p. 347). It is commonly recognised that theory development is
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Theory
development
in China-based
SCM

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