Ensuring product safety in the global supply chain upstream: a case study
Nigam, Vivek Prakash (2018)
Diplomityö
Nigam, Vivek Prakash
2018
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi-fe2018043019257
https://urn.fi/URN:NBN:fi-fe2018043019257
Tiivistelmä
Organisations face intricate and more extended supply chain network shaped by the globalisation of value chain. This led to several instances of safety incidents, and product recalls attributed to poor design of components or supplies from the suppliers in low-cost locations. This single case-study-based research aims to assess the approaches and processes employed by the case organisation in the global supply chain upstream (GSCU) to mitigate the escalator product safety concerns.
The case organisation is among the top five manufacturers in the escalator market and currently sourcing significant components of an escalator globally. In the recent time, the escalator market has seen some high-profile safety incidents, and escalator safety department at KONE decided to proactively improve its product safety to mitigate the probability of such instances on KONE’s brand name. Therefore, this thesis materialised with the consideration for product development and global sourcing activities in the GSCU that have a high influence on product safety.
This thesis utilised a theoretical framework based on agency theory, resource-based view and transaction cost economics to assess the gathered data through the interviews of business leaders, functional experts and organisation’s records. The findings coded using content analysis and five emergent themes are identified, and then recommendations for identified challenges and opportunities are provided followed by managerial, societal and theoretical implications. Improving product safety in the GSCU decreases the probability of fatalities in societies and pecuniary aftermaths for organisations, and concurrently increases the public trust on the organisational brand.
The case organisation is among the top five manufacturers in the escalator market and currently sourcing significant components of an escalator globally. In the recent time, the escalator market has seen some high-profile safety incidents, and escalator safety department at KONE decided to proactively improve its product safety to mitigate the probability of such instances on KONE’s brand name. Therefore, this thesis materialised with the consideration for product development and global sourcing activities in the GSCU that have a high influence on product safety.
This thesis utilised a theoretical framework based on agency theory, resource-based view and transaction cost economics to assess the gathered data through the interviews of business leaders, functional experts and organisation’s records. The findings coded using content analysis and five emergent themes are identified, and then recommendations for identified challenges and opportunities are provided followed by managerial, societal and theoretical implications. Improving product safety in the GSCU decreases the probability of fatalities in societies and pecuniary aftermaths for organisations, and concurrently increases the public trust on the organisational brand.