Professional Documents
Culture Documents
12078
© Council of Supply Chain Management Professionals
he Thought-Leader Series of five articles in the March 2014 issue of the Journal of Business Logistics made it clear that major changes
T are required in both Logistics and Supply Chain Management programs and indeed in business schools. The articles provided further
evidence of how ill-advised metrics in the hands of fools not only result in a misuse of financial resources but also squander “the efforts of
some of the world’s best minds” (Economist 2013a). We address the problems that these “Thought-Leader” pieces reveal, briefly review the
criticism of business schools, and describe how the metrics used to evaluate performance are driving the wrong behavior. We offer recommen-
dations for change including: stop competing based on flawed ranking systems; focus on providing students with a quality cross-functional
education; encourage faculty members to conduct problem-driven, big-idea research that impacts management practice; and change the incentive
system for faculty and administrators. Faculty members in Logistics and Supply Chain Management have a unique opportunity to make substan-
tial contributions due to the boundary-spanning nature of these fields and the traditional emphasis on applied research. We should not ignore
these strengths. Implementing our recommendations will not be easy but we must find the courage to change.
Keywords: logistics; supply chain management; business education; academic relevance; performance measurement
However, with no support from the literature, they claim that the be difficult for anyone outside the specialty area to judge the
name supply chain management has “tended to encourage a sup- quality. Once again, this raises the questions: What is good
ply-focused viewpoint” rather than a focus on demand (p. 29). research? and Who should judge the quality of our research?
They make the case that “we need a new response to a changing In the fifth article, Van Hoek et al. (2014) identify the prob-
business environment, which we term demand chain manage- lem that procurement, operations, and logistics managers are
ment” (p. 29) and that a holistic integrated supply chain strategy viewed and evaluated based on cost reductions. They suggest
is the integration of marketing and supply chain management. that supply chain management professionals need to manage the
Since every firm in a network of companies up to the final cus- links with the horizontal (functions) and the vertical (CEO), but
tomer is a supplier to the final customer and derives its income at the end of the day, the authors deal exclusively with procure-
from the final customer, supply chain seems like an appropriate ment. They refer to procurement and supply chain management
name for this network of companies. It is difficult to understand professionals as if they were the same. Perhaps it was manu-
how a name change to demand chain management solves the scripts like this that led Christopher and Ryals (2014) to believe
problems of academic silos and lack of cross-functional integra- that supply chain management is too focused on supply. One
tion in companies (Saunders 2014). In fact, one might argue that observation can be made: there is a lack of precision in
it exacerbates the confusion caused by the constant renaming of terminology that makes communication difficult.
the subject matter. Other professions seem to understand the As pointed out by Fawcett and Waller (2014), “the keys to
importance of the brand. For example, Marketing has been called sustained viability is leadership’s (1) understanding of and com-
Marketing for more than 100 years although the domain has mitment to the needed change, and (2) willingness to allocate
changed substantially from the first courses taught at the Univer- resources that alters the driving force/resisting force dynamics”
sity of Michigan and University of Pennsylvania in 1904. (p. 18). As shown above, four of the five “thought-leader” pieces
Christopher and Ryals (2014) appear to use logistics and unwittingly support the conclusion that we are in desperate need
supply chain management as synonyms referring to an organiza- of change. Will we find the courage to do so or will we destroy
tional function. They view the integration of Marketing and Sup- ourselves from within?
ply Chain Management as the cornerstone for business The calls for change are not new. For example, in the 1980s
performance, but ignore the fact that the inclusion of other busi- when Lester Thurow was the Dean of the Sloan School of Man-
ness functions such as Sales, Operations, Purchasing, Finance, agement at MIT, he said “If our B-Schools are doing so well,
and Research and Development in cross-functional, cross-firm why are American companies doing so badly?” (Businessweek
teams is key to driving business value (Cooper et al. 1997; Lam- 1988). The problem has been described widely in the manage-
bert and Enz 2012). How can one reasonably expect that a net- ment field (Harmon 2006; AACSB 2008; Aguinis et al. 2014),
work of companies can be managed with fewer business but little has changed. In fact, it can be argued that the situation
functions than are to needed to manage a single company? continues to get worse with time. In the next section, we will
In the fourth article, Petersen and Autry (2014) recognize that provide a brief review of the opportunities and imperatives for
departments in business schools compete for resources, which is change. It is followed by a synopsis of the broader problems that
the reason for not seeing much collaboration across departments. exist in business schools. Then, we present a way forward, and
For example, at The Fisher College of Business, The Ohio State the implications for logistics and supply chain management. The
University, the cross-functional, cross-firm supply chain manage- paper ends with a summary of our recommendations and a call
ment framework developed by faculty in the Department of Mar- for change.
keting and Logistics over a period of 22 years, is ignored by the
production/operations and purchasing faculty in the Department
of Management Sciences. OPPORTUNITIES AND IMPERATIVES FOR CHANGE
Petersen and Autry (2014) state that “academic business insti-
tutions have the propensity for identifying and ‘promoting’ lead- In the article “Marketing Renaissance,” 14 distinguished market-
ing scholars into administrative roles” (p. 42). It is hard to know ing scholars provided their insights on the “current challenges,
upon what data this assertion was made. In fact, the exact oppo- opportunities, and imperatives for improving marketing thought
site case can be made. For example, at Petersen and Autry’s own and practice” (Brown et al. 2005, 1). While the focus was on
institution, the dean has one article with more than 100 cites, not marketing, there was a message for faculty from all business
a record that most would consider to be representative of a functions. The underlying concern was that “many strategically
“leading scholar.” With notable exceptions (e.g., the deans at important aspects of marketing are being taken away by other
Harvard University, University of Arkansas, University of San functions in the organization” (Sheth and Sisodia in Brown et al.
Diego, and Vanderbilt University, to name just four), it appears 2005, 11), a problem that is shared by other business functions,
that the “leading scholars” are not promoted to administrative including Logistics (Fawcett and Waller 2014). The response to
roles. Consequently, business school administrators rely on jour- these threats should not be to strengthen competition among
nal rankings to make promotion decisions perhaps because they functions but to encourage practitioners and scholars to expand
are not capable of reading the articles and judging quality or they their horizontal vision and make connections across disciplines.
lack sufficient time (McKinnon 2013). “The dean may not know For example, Brown urges marketing scholars to “position their
much about research but at least he or she can count” (Worrell contributions more to business in general rather than limit them
2009, 127). The same might be said about most department to marketing practice” (Brown et al. 2005, 1). The most signifi-
chairs. In the defense of administrators, it can be argued that the cant problems in business require cross-functional solutions,
bulk of the research is so narrow and specialized that it would which mean that our research needs to find ways to leverage
We Must Find the Courage to Change 11
synergies across functional silos. The drive for business excel- theoretically important actionable research is difficult and so
lence and the requirement for more collaboration with key cus- more likely an ability problem” (p. 259). For example, it is not
tomers and suppliers makes the implementation of cross- the lack of financial incentives for a successful career that stops
functional, cross-firm processes a necessity (Lambert 2014). As most college level athletes from playing in the National Football
noted by Brown, “thinking in terms of processes and across dis- League, it is that few of them have the ability to play at this
ciplines would do wonders” for scholarship (Brown et al. 2005, level. “Despite all of the doctoral consortia, reformed doctoral
3). training, and junior faculty mentoring available, very few are
The narrow and deep focus of academic research, is “far a going to be able to do this difficult work” (Pearce and Huang
field from the day-to-day” trade-offs that managers have to make 2012, 257). When combined with the growing pressure to pub-
in business (Brown et al. 2005, 3). Methodological rigor has lish only in journals used in business school rankings, the result
been emphasized at the expense of both theory development and has been more publications that lack relevance for practicing
practical relevance, “retarding the progress of the marketing dis- managers.
cipline” (Webster in Brown et al. 2005, 4). In addition, research- Raju encourages marketing practitioners and academics to be
ers tend to choose tactical performance variables such as sales “more comfortable with our own identity” because their field
volume or market share over more meaningful predictors of sus- “has made many important contributions to the business world,
tainable business growth because they are easier to observe and to society, and to science” (Brown et al. 2005, 19). This is
measure. And, some authors (e.g., Flynn et al. 2010) resort to advice that would benefit those logistics scholars who want to
managers’ perceptions of financial performance rather than ask- change the name of our profession and/or publish their best work
ing respondents to provide the actual numbers or at least the per- in journals of other fields to gain the respect of nonlogistics col-
centage increase or decrease in the numbers if there are issues of leagues. In the words of Raju: “If we have a good article that fits
confidentiality. equally well in two outlets, we may want to consider publishing
Another type of silo that academics have created is based on it in a marketing journal rather than in an economics journal”
the research methodology used. Researchers tend to categorize (Brown et al. 2005, 19).
themselves as behavioral, modelers, managerial, survey-based, or While the changes that are necessary in logistics can be
case study researchers, and publications tend to favor specific addressed to some extent by senior logistics faculty, the issues
methodologies (McAlister in Brown et al. 2005). These silos faced by logistics faculty are symptoms of the broader problems
have created an inconsistent and adversarial view about what that exist in business schools. The failings of today’s business
comprises relevant research, quality research, and rigorous education are systemic, and “cannot be solved by changes at
research, and diminished intellectual stimulation since articles are one, or even a few, business schools” (Podolny 2009, 63).
reviewed by researchers who think alike (MacInnis in Brown
et al. 2005). Webster argues that academics “renew respect” for
conceptual thinking as opposed to methodological rigor and WHAT IS WRONG WITH BUSINESS SCHOOLS?
encourage research that redefines the boundaries of the disci-
pline, because “the major challenges are conceptual, not method- Achieving higher rankings has become the goal rather than
ological” (Brown et al. 2005, 6). Raju recommends that “We providing students with the best cross-functional learning experi-
should be more open to studying problems that matter, even if ence delivered by faculty who are known for the positive impact
we need to make some limited compromises in terms of the pre- of their research on management practice. Because business
cision with which we study these” (Brown et al. 2005, 18), and school rankings are believed to influence students’ choice of a
paraphrasing Lodish (1974) he continues: “Approximate answers business school, they have become the basis on which schools
to important problems or issues are just as useful (if not more compete. The main components of school rankings are students’
useful) than precise answers to wrong, well-defined, narrow starting salaries after graduation, GMAT scores, and the research
problems” (Raju in Brown et al. 2005, 18). productivity of faculty. Since rankings are slow to react to struc-
A risk of perpetuating the focus on narrow business issues and tural changes in curricula and program design, many deans focus
methodological rigor is that knowledge, essential for business on short-term measures in an attempt to move their schools up in
success, can be lost forever (Wilkie in Brown et al. 2005). the charts quickly (Podolny 2009). For example, if a business
Marketing (and indeed all business subjects) should be taught as school admits students with more business experience, offers
an art and a science (like cooking) to foster its creative dimen- specialized programs that prepare students for higher paying
sion (Sheth and Sisodia in Brown et al. 2005). The responsibility industries such as consulting or banking, or trains students to
for creating the conditions that are necessary for advancing and master job interviews rather than focusing on academic excel-
transmitting integrated business knowledge is on senior academ- lence, its rankings will likely improve.
ics (Webster in Brown et al. 2005). There are few incentives for An unintended consequence of using rankings including start-
business leaders to step outside the comfort zone that their func- ing salaries as the basis for competition is that it has lent “legiti-
tional silos provide. Similarly, young scholars cannot be macy to students’ claims that a school’s primary goal is to get
expected to have the wide perspective on the total business disci- them a high-paying job” (Podolny 2009, 65), rather than to pro-
pline nor the time to develop integrated business conceptualiza- vide a learning experience that will prepare them for professional
tions if their promotions are dependent on the number of papers success if they put in the effort. It is difficult to teach students
published in a limited set of specialized journals. Pearce and with the “high-paying job” expectations the moral and ethical
Huang (2012) make the case that the decline in actionable consequences of their business decisions, and this explains in
research “is not just an incentives problem, but that producing part the recent financial crises, and the widespread mistrust that
12 D. M. Lambert and M. G. Enz
society has in business schools. A revision of the ethical founda- from 1960 to 2010 were found to have a low and declining prac-
tions of business schools is important because “MBAs occupy tical value for managers (Pearce and Huang 2012). Other
positions with enormous responsibility that have a huge impact research has shown declining trends of readability, the ease of
on society, and their ability to do harm is very great” (Podolny understanding of an article due to the style of writing, for the
2009, 65). It is unlikely that a single faculty member can provide Journal of Marketing (Bauerly, Johnson, and Singh in Brown
students a holistic view of business that combines both “hard” et al. 2005) and other major marketing journals (Crosier 2004).
and “soft” disciplines such as ethics and leadership. And, the In addition, Pfeffer and Fong (2002) make the case that disci-
emphasis in quantitative research techniques has led faculty to pline-based parochialism has resulted in narrowing research
specialize only in those problems that fit their area of expertise agendas and in specialized faculty which explains the failure to
(Podolny 2009). develop truly integrated curricula.
Since GMAT scores also impact the rankings, there is pressure A traditional strength of logistics journals has been that the arti-
to only admit students who will positivity affect this measure. cles have been both readable and focused on improving manage-
While a business school would not want to admit students who ment practice. The risk for the future of Logistics as a discipline is
will not do well in the program, is there a level of GMAT score that journals of young academic fields are less represented in the
beyond which success in the business world does not improve? upper levels of journal rankings (McKinnon 2013). This could
Are there other personality traits beyond a certain level of intelli- cause logistics academics to become “disloyal to the specialist
gence that should be considered? In fact, there has been research journals in their fields” (McKinnon 2013, 6) and to break with the
that indicates that higher GMAT scores are related to negative tradition of publishing practical and meaningful research. But,
traits such as the unwillingness to take risks (uncertainty avoid- there is a way forward if we have the courage to change.
ance) and individualism (Aggarwal et al. 2013). Another “survey
of hundreds of MBA alumni found no correlation between an
individual’s GMAT score and that person’s post-MBA success A WAY FORWARD
as measured by starting salary and pay over the first 5 years after
graduation” (Yeaple 2012), never mind during an entire career. In this section, we offer a number recommendations for improv-
Business schools have implemented rewards to increase ing the current situation: stop competing based on flawed ranking
research productivity and to encourage faculty to publish in a systems; focus on providing students with a quality cross-func-
select group of highly ranked journals to satisfy the criteria set tional education; encourage faculty members to conduct prob-
by school ranking schemes (McKinnon 2013). Journal rankings lem-driven, big-idea research that impacts management practice;
are convenient for university administrators because they provide and change the incentive system for faculty and administrators.
a quantitative metric for judging faculty productivity without the Improving the quality of business schools requires that we stop
need “to read the papers and assess their individual merits” competing on rankings (Harmon 2006; Podolny 2009). Achieving
(McKinnon 2013, 10). However, the validity of journal rankings higher rankings by expecting ever higher GMAT scores should
as indicators of research quality is questionable (Tsui 2013). not be the goal but rather delivering a quality cross-functional
Rankings favor research that is highly theoretical, emphasizes education. Above some reasonable minimum GMAT score, the
methodological rigor over practical relevance, and is written in a emphasis should turn to personal characteristics such as ambition,
style that is inaccessible for practitioners (Brown et al. 2005; creativity, integrity, and leadership abilities. Also, the emphasis
McKinnon 2013). The peer-review system is not sufficiently reli- on rankings places too much importance on starting salaries
able to assume that all publications in top journals represent which has resulted in too many graduates going to Wall Street
good research, and all poor research is left to low-tier journals and consulting jobs which “sucked a lot of talent out of other sec-
(Bennis and O’Toole 2005; Starbuck 2005). Citations, which are tors—and out of businesses that actually produce things” (McG-
the number of times that a published work is cited by other rath 2013). Finally, the rankings put too much emphasis on
researchers, are the basis for ranking systems and are used to publications in journals on the Financial Times, Businessweek,
determine the impact of articles, researchers, journals, and even and University of Texas at Dallas lists which has resulted in fac-
entire fields (Aguinis et al. 2014). Therefore, scholarly impact is ulty who are narrow specialists not capable of contributing to an
defined and assessed exclusively by other scholars in what can integrated program of study and in some cases lacking interest in
be viewed as “an incestuous closed loop” (Hambrick 1994, 13) teaching. We agree with the recommendation of Harmon (2006,
which excludes students, practitioners, government agencies, and 242): “University presidents, business school deans, and the
society in general as key stakeholders of academic work (Aguinis AACSB should publicly condemn and refuse to participate in any
et al. 2014). Moreover, a performance measurement system business school ranking surveys on the ground that they represent
based on the number of articles produced and the number of cita- a vulgarization of scholarly values.”
tions accumulated can be gamed (Aguinis et al. 2014). Perhaps We should focus on graduating students who will be success-
this explains why the number of authors per paper has increased ful, which will increase demand for future graduates and lead
to the point where it is rare to see single-author articles and former students who are grateful for the life-changing experience
manuscripts with two authors are not the norm. provided to them to be generous in their support of their alma
The obsession with journal rankings has created an overpro- mater. The emphasis should be on what the students will learn
duction of papers that are seldom read, are not comprehensible that will prepare them for long-term career success and not on
by the public, and are irrelevant for business practice (Harmon the size of the starting salaries upon graduation.
2006). For example, analysis of articles appearing in the Academy Our advice to business leaders is to ventilate the silos in their
of Management Journal and Administrative Science Quarterly organizations by implementing cross-functional teams (Lambert
16 D. M. Lambert and M. G. Enz
on improving management practice rather than searching for ing the conventional wisdom will not diminish the opportunities
research questions that address gaps in the literature. “This pro- for success but may actually increase them. And, Porter is not an
duces research designed to address a suspicion that a particular isolated case. In the period 2002 to 2011, Clay Christensen,
theory is wrong or narrower in scope than represented in the lit- Michael Porter, Linda Hill, Rosabeth Moss Kanter, Henry Min-
erature” (Pearce and Huang 2012, 257), which results in articles tzberg, Rakesh Khurana, and Andrew Kakabadse had no articles
that address questions without practical importance and produce published in the Financial Times list of 42 top journals and yet
findings that are not actionable. According to Pearce and Huang they were among the 21 full professors included in the world’s
(2012), “the supply of management research superstars has not 50 top management thinkers (Martin 2012). It is not surprising
kept proportional pace with the demand” (p. 258). The same that a majority of the 21 full professors included in “the world’s
might be said about the field of logistics and a contributing fac- 50 top management thinkers” are connected to the Harvard Busi-
tor may be that we have moved away from a focus on solving ness School which has a history of focusing on solving business
business problems. Finally, we should publish in logistics jour- problems, has stayed the course regardless of the educational
nals and not forsake our specialty journals as implied by Zinn fads and would be on any reasonable person’s list of top 10
and Goldsby (2014). We should be comfortable with our own business schools.
identity as logisticians (Raju in Brown et al. 2005). The names
of real professions do not change every 10–20 years. For exam-
ple, the subject that is known as Marketing has remained Mar- SUMMARY
keting for more than 100 years.
Second, since the mid 1990s, we have endured a continuous In summary, we recommend the following: stop competing based
stream of new names for the subject matter supply chain man- on flawed ranking systems; focus on providing students with a
agement with each proponent claiming to have breakthrough quality cross-functional education; encourage faculty members to
thinking. Many of the culprits are academics who want to appear conduct problem-driven, big-idea research that impacts manage-
leading edge by using new terminology for old ideas. Other cul- ment practice; and change the incentive system for faculty and
prits are consultants who try to differentiate their service offer- administrators. We also make specific recommendation for logis-
ings by the name of the service rather than how well they help tics and supply chain management. Table 1 contains a summary
clients implement the concepts. We should refrain from this of these recommendations.
mindless proliferation of names for supply chain management The case can be made that the current system of ever-increas-
and focus on implementation. Because, supply chain manage- ing tuition costs, needed to cover the expense of a growing num-
ment is all about cross-functional, cross-firm integration (Lambert ber of administrators and salaries for faculty who increasingly are
2014), faculty in this discipline are in a unique position to lead not involved in management practice, is not sustainable. And, we
the effort to conduct research that integrates across business should keep in mind that “we are paid by people outside of aca-
functions. Senior faculty with tenure should do the right thing, demia to produce knowledge useful to them, creating moral obli-
work on long-term, big idea projects that impact business prac- gations, as well as self-interested reasons to do better” (Pearce
tice. Research on big ideas can be facilitated by establishing and Huang 2012, 260). According to U.S. Census (2013), 50% of
research centers that “act as umbrellas for a diverse set of scho- individuals earn $26,989 or less per year and 66% earn $40,563
lars and that address major substantive issues” (Brown et al. or less. Over 90% of wage earners make less than $100,000 per
2005, 22). Finally, journal editors need to place a priority on year. Compare these numbers to what new assistant professors
cross-functional research that impacts business practice rather receive and it is clear that we as a profession have a responsibility
than papers that address incremental advances in theory with to give taxpayers and students more value for their money. In
findings that are not related to business practice nor useful in the other words, there is a moral imperative for change.
classroom. The arguments presented in this paper are not new but the sit-
If scholars do not play the current game are their careers uation is becoming dire. Some have expressed the concern that
doomed? There is evidence that even without our suggested the $1.3 trillion in student debt and the $100 billion of defaulted
changes at the college level, challenging the current system does student federal loans might be an indication that education
not need to be a career ending move. For example, Michael will become the next bubble to negatively affect the economy
Porter of Harvard University has been recognized as “the most (Smialek 2014; Strauss 2014). However, student debt may not be
famous and influential business professor who has ever lived” the only potential hazard for academic institutions and it does
(Colvin 2012, 165). And yet, Porter has rejected “the No. 1 rule not consider the quality of the education received at ever higher
of the academic game. . .that all advancement depends upon pub- costs. There is also the problem of the resources squandered on
lishing as many articles as possible in the few dozen top-tier research that has no practical application. “Even when flawed
journals” (Colvin 2012, 166). Porter has published “just seven research does not put people’s lives at risk—and much of it is
such articles. . ...his many articles in Harvard Business Review too far from the market to do so—it squanders money and the
don’t count” since it is viewed as a practitioner journal at most efforts of some of the world’s best minds. The opportunity costs
top business schools (Colvin 2012, 166). According to Google of stymied progress are hard to quantify, but they are likely to
Scholar, Porter’s publications have over 240,000 citations, one be vast” (Economist 2013a). While the Economist article was
book has more than 60,000 citations and one Harvard Business addressing the problem of scientific research in general, Martin
Review article has more than 10,000 citations. In total, he has estimated the cost of not-actionable articles published in the
over 30 publications with more than 1,000 citations each. We Financial Times list of 42 “A” journals at $600 million per year
believe that Porter’s experience supports the case that challeng- (Martin 2012). If we do not find the courage to change, we risk
We Must Find the Courage to Change 15
• Condemn and refuse to participate in business school ranking surveys (Harmon 2006).
• Select MBA candidates (who have achieved some reasonable minimum GMAT score) based on personal characteristics such as
ambition, creativity, integrity, and leadership abilities.
• Prepare students for long-term career success and not for the amount of the starting salaries upon graduation.
• Discard the Financial Times, Businessweek, and University of Texas at Dallas lists and let each department select the top
journals.
Encourage faculty members to conduct problem-driven, big-idea research that impacts management practice
• Encourage research that is focused on big ideas rather than on incremental ideas and closing gaps in theory.
• Hire new faculty with the ability to conduct actionable, relevant research and an interest in doing so in order to make up for
current faculty who lack the ability to conduct such research (Pearce and Huang 2012).
• Encourage faculty to look for research funding from industry.
• Encourage faculty who by the nature of their research do not interact with practitioners to engage in consulting activity.
• Stop rewarding faculty exclusively for the number of “A” journal articles written.
• Base rewards on the impact of the research on practice and the extent to which the research can be integrated into degree
program curricula and executive education programs.
• Expect different contributions from faculty members as they progress through career stages.
• Choose metrics to evaluate faculty members that are aligned with the institution’s mission.
• Read the articles produced by faculty members and determine the impact of the research when evaluating individuals for pay
increases, and promotion and tenure decisions.
• Require that the letters from outside reviewers not be only from educators but also from an equal number of business
executives who can speak to the quality of the work.