lOMoARcPSD|22517024
TO Upload W6 - Journal Article Review -
BUSI613
International Business (Liberty University)
lOMoARcPSD|22517024
W6 REVIEW – EMERGING ECONOMIES 1
W5: Supply Chain Management Article Journal Article Review #
5 Article: Supply Chain Management in Emerging Economies
XXX
School of Business, Liberty University
Author Note
XXX
I have no known conflict of interest to disclose.
Correspondence concerning this article should be addressed to XXX
Email: [email protected]
lOMoARcPSD|22517024
W6 REVIEW – EMERGING ECONOMIES 2
W6: Supply Chain Management Journal Article Review # 5
Statement of the Author's Purpose
According to Avittathur and Jayaram (2016), the journal article examines the domain of
supply chain management in the emerging economies to explore and categorize the existing
industry research in the context of emerging economies such as Brazil, Russia, India, and China.
The article (Avittathur and Jayaram, 2016) emphasized the significance of the emerging
economies of Brazil, Russia, India, and China (BRICS) from the perspective of globalization to
the global economy and supply chain management. Avittathur and Jayaram (2016) noted a vast
opportunity for industry scholars and researchers to place higher and expanded focus on
untapped research areas of supply chain management in emerging economies. The authors
identified the three major areas to explore for extended research in emerging economies by other
researchers. Avittathur and Jayaram (2016) emphasized that comprehensive research should
explore the areas of supply chain level, supply chain practices in emerging economies, and
understanding the local factors of socio-cultural environments and infrastructure and how they
can affect supply chain management.
Background of the Issue
As globalization and advancement in technological trends evolved over the years, the
ever-changing competitive environments for trade and supply chain management have
exponentially transformed. The scope and competition landscape have expanded to integrated
business activities overseas. Oláh et al. (2018) highlight the impacts of economic trends,
globalization, consumer behavior, and expectations on the global supply chain. Oláh et al. (2018)
emphasize that the impacts of globalization and the relevant evolving trends in supply goods
flow and distribution reflect more complex challenges over the years. Supply is transforming
into
lOMoARcPSD|22517024
W6 REVIEW – EMERGING ECONOMIES 3
a global phenomenon. Liberty University (2021) refers to emerging economies as "countries that
are progressing to becoming more advance by undergoing a high economic growth, trade
liberalization, and the sound establishment of economic government policies. The emergence and
the rapid growth of the economies of Brazil, Russia, India, and China (BRICS) have created
major opportunities for the global economy (Liberty University, 2021, p. 372).
The IMF data shows that BRICS economies share of the world GDP has increased from
31 % in 1980 to 50.4 % in 2013 (Avittathur & Jayaram, 2016). Therefore, the need to research
the emerging economies in the context of their dynamic growth trends, supply chain
infrastructure, and socio-economic environments is tracking attention as an area of opportunity
for the global economies.
Over the years, technology-driven globalization has paved the way for value-added
business integration by businesses across the globe. Strategic factors such as availability of
material, labor, warehouse, local, and regional distribution models at a competitive cost and
attractive trade regulatory tax exemptions have complimented the global supply chain of
products and services. However, Avittathur and Jayaram (2016) identified the aspects of
infrastructure, ever-changing consumers behavior and preferences, high initial business setup
cost, unstable commodity pricing, and diverse socio-cultural environments as significant
challenges for the supply chain in emerging economies.
The areas of efficiency, quality control, and robust customer support are highly relevant
to successful global trade and supply chains. Avittathur and Jayaram (2016) emphasized that
the supply chain environments may vary from one country to another, which can impact the
operational effectiveness and efficiency of firms, resulting in affecting the country's overall
competitiveness. According to Bhatt et al. (2014), efficiency across the supply chain
lOMoARcPSD|22517024
W6 REVIEW – EMERGING ECONOMIES 4
management operations of service is a critical component for its sustainable success. Conger and
Chiavetta (2006) noted that with globalization, "many new markets will bring issues of low-price
requirements, lack of infrastructure, and unskilled technical support." Oláh et al. (2018) point to
the significance of the IT-based technological process to provide robust customer support across
the globe. Avittathur and Jayaram (2016) emphasized that the supply chain environments tend to
differ from one country to another, affecting the operational effectiveness and efficiency of firms
operating in that country, which affects the country's overall competitiveness.
Application of Supply Chain Management Theory Relevant to Article
The changing trends in today's global economy coupled with resources utilization,
consumers behavior, business trade models, decentralized manufacturing distribution network,
and strategic outsourcing have transformed supply chain management across the globe.
According to Liberty University (2021), global supply is a competitive necessity for many
companies. For example, the world's leading companies, such as Apple, Toyota, Microsoft, and
Samsung, employ strategic outsourcing and production in countries of emerging economies of
China and India. However, besides the benefits and competitive edge, the companies must
consider the variety of challenges in the context of global supply in emerging economies. Liberty
University (2021) identified those challenges such as source identification and evaluations,
international logistics, communications, information systems, and risk management.
Managerial Implications
Mangers should extensively research and get familiar with the local environments,
including business dynamics, infrastructure, challenges, laws and regulations, operational
capacity, and business competitors. Managers should get familiarized with the local political and
administrative structure and their approach towards international business, specifically for
lOMoARcPSD|22517024
W6 REVIEW – EMERGING ECONOMIES 5
imports and exports. Managers should note the local labor laws and their compliance structure to
international standards. Managers should not assume the same business practices and
expectations in the emerging economies as they can in the USA.
Managers should prepare themselves for the socio-cultural environments in emerging
economies; Managers should be highly respectful of the local religious and cultural norms and
values. Managers should be aware of the local religious and cultural traditions. For example,
there are religious and cultural breaks during working hours in some countries, which can
surprise a manager visiting from the USA. Managers should also know the local food and
beverages traditions and codes. Managers should pay attention to cultural norms.
Managers should also prepare to handle communications barriers, including the
interpretation and body language. Managers should pay keen attention to understanding and
receiving feedback from a counterpart from an emerging economy. Managers should also be
aware that the communication style is not of an identical "straightforwardness" as he/she is
used to in the USA. Managers should also respect that English is not their first language, and
there might be a high likelihood of misunderstanding the same word or a sign. In addition,
managers should exhibit extended courtesy to their counterparts if and when they invite the
manager for lunch or dinner. Finally, managers should understand that being in a global village,
they need to adopt the local environments with a smile.
Faith and Learning Integration
Colossians 4:5 (NIV) reads, "Be wise in the way you act toward outsiders; make the most
of every opportunity." The verse is an excellent reference for us as Christians to work with other
human beings from other countries and economies. We must be humble and show respect to
them.
lOMoARcPSD|22517024
W6 REVIEW – EMERGING ECONOMIES 6
Summary
The article (Avittathur and Jayaram, 2016) emphasized the significance of the emerging
economies of Brazil, Russia, India, and China (BRICS) from the perspective of globalization to
the global economy and supply chain management. Avittathur and Jayaram (2016) examined the
highly relevant need to explore further research on untapped researched areas of the supply chain
in the emerging economies. The emergence and the rapid growth of the economies of Brazil,
Russia, India, and China (BRICS) have created significant opportunities for the global economy
(Liberty University, 2021, p. 372).
The changing trends in today's global economy, resource utilization, consumer
behavior, business trade models, decentralized manufacturing distribution network, and
strategic outsourcing have transformed supply chain management across the globe. According
to Liberty University (2021), global supply is a competitive necessity for many companies. In
addition, Avittathur and Jayaram (2016) identified the aspects of infrastructure, ever-changing
consumers behavior and preferences, high initial business setup cost, unstable commodity
pricing, and diverse socio-cultural environments as significant challenges for supply chains in
emerging economies.
Managers and companies should pay attention to critical local aspects such as socio-
cultural norms and values, religious traditions, communications, and IT technology networks to
maximize business benefits with emerging economies. In addition, managers, as Colossians 4:5
(NIV) guides us as Christians, should extend an honest, courteous, and righteous way of dealing
with their counterparts in emerging countries.
lOMoARcPSD|22517024
W6 REVIEW – EMERGING ECONOMIES 7
References
Holy Bible, New International Version®, NIV® Copyright ©1973, 1978, 1984, 2011 by
Biblica,
Inc.® Used by permission. All rights reserved worldwide.
Avittathur, B., & Jayaram, J. (2016). Supply chain management in emerging economies.
Decision (0304-0941), 43(2), 117–124. https://doi.org/10.1007/s40622-016-0130-
8 Bhatt, S. K., Bector, C. R., & Appadoo, S. S. (2014). Efficiency Issues in Supply Chain
Management. Retrieved 2021, from
https://www.proquest.com/abicomplete/docview/1733231097/abstract/9E1BBA8479CF4
4DBPQ/1?accountid=12085.
Conger, T., & Chiavetta, D. (2006). The pulse of industry. (Cover story). Industrial Engineer: IE,
38(1), 30–35.
Liberty University (2020). Supply chain management (Custom ed.). New York, NY: McGraw-
Hill
Oláh, J., Zéman, Z., Balogh, I., & Popp, J. (2018). Future Challenges and Areas of Development
for Supply Chain Management. LogForum, 14(1), 127–138.
https://doi.org/10.17270/J.LOG.2018.238
lOMoARcPSD|22517024
W6 REVIEW – EMERGING ECONOMIES 8
