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Understanding Complex Systems
Innovative
Solutions for
Sustainable
Supply Chains
Understanding Complex Systems
Series Editors:
Henry D. I. Abarbanel, Department of Physics, University of California,
La Jolla, CA, USA
Dan Braha, New England Complex Systems Institute and University of
Massachusetts, North Dartmouth, MA, USA
Péter Érdi, Center for Complex Systems Studies, Kalamazoo College,
Department of Physics, Kalamazoo, MI, USA
Karl J. Friston, Wellcome Department of Cognitive Neurology, National Hospital,
Institute of Neurology, London, UK
Hermann Haken, Institut für Theoretische Physik, Universität Stuttgart,
Stuttgart, Germany
Viktor Jirsa, Jules Marey UMR 6233, (CNRS), CP910, Inst des Sciences du
Mouvement, Eti, Marseille, France
Janusz Kacprzyk, Systems Research Institute, Polish Academy of Sciences,
Warsaw, Poland
Kunihiko Kaneko, Research Center for Complex System Biology,
The University of Tokyo, Tokyo, Japan
Scott Kelso, Florida Atlantic University, Boca Raton, FL, USA
Markus Kirkilionis, Mathematics Institute and Centre for Complex Systems,
University of Warwick, Coventry, UK
Jürgen Kurths, PIK, University of Potsdam, Potsdam, Brandenburg, Germany
Ronaldo Menezes, Department of Computer Science, Florida Institute of
Technology, Melbourne, FL, USA
Andrzej Nowak, International Center for Complexity and Conflict, Rm1,
SWPS School Warsaw, Warszawa, Poland
Hassan Qudrat-Ullah, York University, Toronto, ON, Canada
Linda Reichl, Center for Complex Quantum Systems, University of Texas,
Austin, TX, USA
Peter Schuster, University of Vienna, Vienna, Austria
Frank Schweitzer, Gebäude WEV G 212, ETH Zürich, Professur für Systemges,
Zürich, Switzerland
Didier Sornette, Professur f. Entrepreneurial Risks, ETH Zürich, SEC F 7,
Zurich, Switzerland
Stefan Thurner, Section for Science of Complex System, Medical University of
Vienna, Wien, Austria
Future scientific and technological developments in many fields will necessarily
depend upon coming to grips with complex systems. Such systems are complex in
both their composition – typically many different kinds of components interacting
simultaneously and nonlinearly with each other and their environments on multiple
levels – and in the rich diversity of behavior of which they are capable. The Springer
Series in Understanding Complex Systems series (UCS) promotes new strategies
and paradigms for understanding and realizing applications of complex systems
research in a wide variety of fields and endeavors. UCS is explicitly transdisciplinary.
It has three main goals: First, to elaborate the concepts, methods and tools of
complex systems at all levels of description and in all scientific fields, especially
newly emerging areas within the life, social, behavioral, economic, neuro- and
cognitive sciences (and derivatives thereof); second, to encourage novel applications
of these ideas in various fields of engineering and computation such as robotics,
nano-technology and informatics; third, to provide a single forum within which
commonalities and differences in the workings of complex systems may be
discerned, hence leading to deeper insight and understanding. UCS will publish
monographs, lecture notes and selected edited contributions aimed at communicating
new findings to a large multidisciplinary audience.
This Springer imprint is published by the registered company Springer Nature Switzerland AG.
The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland.
To my grandson
Abdurahman Hassan
-Hassan Qudrat-Ullah-
Preface
The purpose of this edited volume is to provide the reader with state-of-the-art
perspectives and model-based applications to better understand the dynamics of
sustainable supply chains of the twenty-first century. This collection of innovative
contributions by the scholars of the field presents a paradigmatic shift in thinking
about sustainable supply chain complexity for the challenges of the twenty-first
century. The book is less about abstract possibilities and esoteric techniques and
more about understanding the dynamics of complex systems as they pertain to sus-
tainable supply chains. Through various perspectives such as agent-based modeling,
system dynamics modeling, and different methodologies, we believe we have
improved understanding in a wide range of supply chain settings at critical encoun-
ters with complexity. We are hopeful that this collection will provide a synergy that
can leverage a new level of understanding in order to theorize and empirically
explore the emergent and process nature of complexity across levels of analysis that
foster insights into the dynamics of supply chain systems. Furthermore, we hope to
encourage further theoretical and empirical research that perhaps may be interwo-
ven by the works presented herein and in advancing new methodological perspec-
tives to include multilevel and cross-level analysis to better understand the dynamics
of sustainability-focused supply chains.
In the quest for innovative solutions for the management of sustainable supply
chains, many challenges lie ahead. Specifically, as we move toward displacing tra-
ditional thinking, founded in “bottom-line”-focused decisions, to one where plural
logics of “triple bottom” coexist under conditions of uncertainty and ambiguity, the
need for systematic and integrated solutions for sustainable supply chains becomes
pronounced. Our aim here has been to focus our attention on the whole (supply
chain system) and its interrelationships. It is our hope that this book will stimulate
a new way of thinking as a proclamation of a new era of resource constraints and
renewed focus on “integrative” solutions.
vii
viii Preface
Content Overview
I would like to thank everyone, mentioned herein or not, for their continued support
in helping to bring this book to completion. Most importantly, I am sincerely grate-
ful to the contributing authors of this book. Their support of this endeavor enabled
us to platform the collective lessons presented in the book. I also acknowledge the
work and knowledge of the members of our review panel. My appreciation also
goes to all the people at Springer, USA, especially Christopher and HoYing with
whom I corresponded for their advice and facilitation in the production of this book.
I would like to thank Taub Jeffrey and the production team from Springer, for their
help in the final production of this book. I am grateful to my family, Tahira Qudrat,
Anam Qudrat, Ali H. Qudrat, Umer K. Qudrat, and Umael H. Qudrat for their
encouragement and support throughout this endeavor. Special thanks and apprecia-
tion goes to my mother, Fazeelat Begum, and my mother-in-law, Saira Bano, whose
prayers and wishes provide unique strengths to me for such taxing tasks.
Finally, the editor would like to acknowledge the financial support provided by
the Deanship of Scientific Research (DSR) at King Fahd University of Petroleum
and Minerals (KFUPM) for funding this work through project No. BW171002.
Hassan Qudrat-Ullah
Dammam, Saudi Arabia
April, 2018
ix
Contents
Index������������������������������������������������������������������������������������������������������������������ 345
Contributors
xiii
xiv Contributors
Hassan Qudrat-Ullah
1.1 Introduction
H. Qudrat-Ullah (*)
College of Industrial Management, King Fahd University of Petroleum Engineering
and Minerals, Dhahra, Saudi Arabia
e-mail: [email protected]
Perspectives
Modeling
Approaches
Fig. 1.1 Perspectives and modeling approaches for sustainable supply chains
Consequently, the sustainable supply chain issues and problems require a sys-
tematic and integrated approach. Modeling and simulation in general and system
dynamics and agent-based modeling in particular have the capabilities to deal with
the complexity of sustainable supply chain-related problems. Therefore, the pri-
mary aim of this book is to present the latest decision-making perspectives, tools,
techniques, and insightful and innovative solutions that decision-makers can utilize
to overcome the challenges that their sustainable supply chains face.
In an attempt to provide some unique perspectives and innovative solutions for
sustainable supply chains in the twenty-first century, we issued the call for contribu-
tions in this volume. Specifically, we sought help from the system dynamics and
agent-based modeling community. Consequently, several different examples of per-
spectives and modeling approaches, with a common unifying goal of “improving
the performance of sustainable supply chains” are provided in this volume.
1.1.1 Methodology
In our call for contributions on “The Innovative Solutions for Sustainable Supply
Chains,” we went through various email lists of professional bodies. We also posted
the call for chapters on message boards of a few international conferences on the
related topics. Personal invitations were sent to target authors as well. We received
19 “two-to-three-page” abstracts as the expression of interest. Based on the initial
1 Innovative Solutions for Sustainable Supply Chains: An Introduction 5
screening by our review panel, the authors of 12 chapters were invited to submit the
complete chapter. All 12 chapters received from the contributors went through a
double-blind review process. The reports from the independent reviewers were sent
to the authors to address the issues and incorporate the suggestions made by the
reviewers. Only 11 chapters made it to final stage of acceptance. The final versions
of chapters have been edited and included in this volume.
We applied a thematic approach to classify our contributions for this book. The
chapters thus complied are classified into four categories following the structure of
the book. The first category, the current one, presents the introduction and preview
of “Innovative Solutions for Sustainable Supply Chains.” The second category
examines the unique perspectives for enhancing the performance of the sustainable
supply chains including Determinants of ITF R&D Technology Commercialization
in Logistics and Supply Chain Industries: R&D Technologist Perspective; A Meta-
analysis of Sustainable Supplier Selection Approaches; Green Supply Chain
Management, Green Innovations, and Green Practices; The Road Towards a
Circular Economy: The Role of Modular Product Designs in Supply Chains; Policy
Design for Sustainable Supply Chain Through Trainings; and The Application of
System Dynamics for a Sustainable Procurement Operation.
Next, the third category showcases the state-of-the-art innovative solutions for
industry-specific supply chains including Alternative Energy Policy for Mitigating
the Asynchrony of the Wind-Power Industry’s Supply Chain in Brazil, Resilience as
Basis for Sustainability: Shortages in Production Supply Chainsfor Essential
Consumer Goods, Sustainable Food Supply Chain Management: An Integrated
Framework and Practical Perspectives, Designing a Sustainable Tourism Supply
Chain: A Case Study from Asia, and Risk Assessment of the Timber Supply Chain in
Southern Ontario Using Agent-Based Simulation. Finally, the last category dis-
cusses conclusions and future research directions in sustainable supply chains.
Here we present six unique perspectives for enhancing the performance of twenty-
first-century supply chains. These perspectives shed light on important actionable
strategies and decisions pertaining to sustainable supply chains. For instance, why
“supplier selection” is so critical, why be “green,” what “training” of personnel
means, does a “modular design” matter, and what is the role of “procurement
operations” and “R&D” in improving the overall performance of a sustainable
supply chain.
6 H. Qudrat-Ullah
When it comes to the unique perspectives for the sustainable supply chains, R&D
technologists’ perspective presents some interesting insights. In Chap. 2, by S.C.Ho
and K.B.Chuah, the risks and challenges faced by companies in Hong Kong’s logis-
tics and supply chain industries are discussed (Ho & Chuah, 2018). Authors define
successful commercialization and adoption of research and development (R&D)
project deliverables as the whole R&D project completed, commercialized, and
adopted in the industry. In their chapter, they examine the R&D technologists’ per-
spective, the determinant factors of Innovation and Technology Fund (ITF) R&D
technology commercialization and adoption in Hong Kong’s logistics and supply
chain industries. R&D technologists face various challenges of developing technol-
ogy that matches industry needs. They investigate how R&D technologists think
their efforts can align with industry needs during the development process. They
consider this study as the first attempt of a multi-perspective study to bridge the
gaps from idea generation, R&D and subsequent technology implementation, and
adoption by industry. In this study, qualitative and quantitative data collected from
R&D technologists has been carried out using a proposed market-driven project
management model, market-science-technology-application-market (MSTAM); the
results will shed light on latter study from other perspectives.
How does product design modularity impact supply chains is an interesting ques-
tion that the authors of Chap. 5, Thomas Nowak, Fuminori Toyasaki, and Tina
Wakolbinger, investigate (Nowak et al., 2018). According to these authors, product
modularity has become a well-established concept for new product design that leads
to accelerated product development and increases a company’s abilities for mass
customization. Recently, product modularity also starts receiving attention as a
promising mechanism for circular economy because it is expected to mitigate nega-
tive product-related environmental effects. While effects of product modularity are
well investigated in forward supply chains, little attention has been paid to implica-
tions of modular designs for reverse logistics operations. This study explores the
links between anticipatory and reactive supply chain strategies, consumer prefer-
ences, as well as a company’s optimal product design decision by considering
reverse logistics operations. These relationships are explored by comparing two
optimization problems: one for a company following a reactive and one for a com-
pany following an anticipatory strategy. Based on the numerical analysis of the
mathematical models, the paper provides recommendations for policy-makers
8 H. Qudrat-Ullah
Both soft and hard skills training play a critical role in productivity and prosperity
of a business firm albeit a sustainable supply chain firm. In Chap. 6, Ijaz Yosuf and
Tafsheen M. Azhar provide a systematic analysis of the role of training in enhancing
the performance of supply chains (Yosuf & Azhar, 2018). They begin their chapter
with two assertions: (i) trainings imparted to the company employees are prerequi-
sites for organizational transformation, and (ii) impact of the training appears in the
form of changed behavior and attitude of the employees that contribute significantly
for the enhancement of the supply chain score of the focal firm. In this chapter the
authors discuss:
The types of trainings generally categorized in soft skills and hard skills. Training need
analysis is best proven method utilized to identify the competency gaps of current employ-
ees. Soft skills trainings and hard skills trainings are designed for capacity building in order
to reduce the gap and raising the employee productivity towards the sustainable supply
chain management. Soft skills trainings not only change the attitude and behavior of the
employee but as well enhance the motivational level of the employees that ultimately con-
tribute in terms of better product quality and waste reduction. Hard skills trainings improve
the technical capabilities of the workers. Reduced waste percentage, improved process
settings, declining cost of quality, mistake proofing in product design and enhanced produc-
tivity are the contributing factors for sustained supply chain performance. Training need
analysis is most appropriate method in the case company for assessing the competency gap.
Training budget is allocated accordingly to reduce the competency gap.
According to the authors, the major objective of this chapter is to design the
plausible policies for enhanced supply chain performance conducting experimenta-
tion with the simulated system dynamics model; what type of training is required
more and how significantly this training impacts the supply chain score for enhanced
supply chain performance are the research questions being explored; experimenta-
tion with the model unveils the underlying symptoms and keeps on playing with the
model to make the system better behaved; and trainings usually considered as
expenditure can be a valuable asset if its effectiveness improves the supply chain
performance. They contribute with a system dynamics simulated model which
the users can apply to design the policy streams for improved supply chain
performance.
1 Innovative Solutions for Sustainable Supply Chains: An Introduction 9
In the final chapter of this section, Chap. 7, the authors, Sherif Barrad, Raul Valverde,
and Stéphane Gagnon, present a system dynamics perspective on an important yet
often neglected functional area of any sustainable supply chain, the procurement
function (Barrad et al., 2018). First they introduce and describe the system dynam-
ics approach as (i) system dynamics is an approach to modeling complex systems
using feedback loops to explain relationships between variables and to reflect their
nonlinear interdependencies through time, along with their underlying driving
forces (Sterman, 2000), and (ii) systems are graphically represented by a set of
active nodes, with qualitative and quantitative attributes, along with passive nodes,
modeled as flows and stocks acting as buffers between active nodes. In the context
of this chapter, they use the system dynamics approach to model the operations of a
procurement function within the supply chain. In this chapter, they propose a sys-
tem dynamics interpretation of procurement drivers and a link to the operational and
strategic levels of decision-making.
After the reader of this book has learned about six unique perspectives unified with
a common goal, improving the performance of sustainable supply chain, here in this
section, we present five state-of-the-art solutions, rich with actionable insights, for
industry-specific supply chains including the (i) wind-power industry, (ii) essential
consumer goods industry, (ii) food industry, (iv) tourism industry, and (v) timber
industry. Insights and lessons learned from these industry-specific supply chains,
however, are applicable equally well for other industries and jurisdictions.
This chapter deals with the asynchrony of the wind-power industry supply chain in
Brazil. The authors of this Chap. 8, Milton M. Herrera, Isaac Dyner, and Federico
Cosenz, present a systematic and model-based analysis of the climate-induced
dynamics of wind power in Brazil (Herrera et al., 2018). Here is how they describe
the issue:
High dependency on hydroelectricity has revealed drawbacks in the security of power sup-
plies as a consequence of the climate variability in South America. Under these conditions,
Brazil is starting to consider alternative renewable sources for energy production, seeking to
avoid periods of scarcity, while also promoting clean technologies in its electricity market.
Since 2004, wind power has shown a significant rise in terms of installed capacity in this
10 H. Qudrat-Ullah
country. Despite increases in wind power units, Brazil suffers from delays in setting up its
transmission infrastructure, which affects the performance of the wind-power supply chain.
In this chapter, they present a simulation model that helps assess the long-term
effects of an alternative sustainable energy policy, which may contribute to over-
coming the asynchrony between renewables generation policy and the insufficiency
of transmission infrastructure. Using lessons learned from simulations, they con-
clude that the transmission industry in Brazil requires appropriate investment incen-
tives for just-in-time synchrony with the expansion of the wind industry.
In this study, he then proposes the first causal model showing the underlying
structure of the European inexpensive, generic, injectable oncological medications
supply chain. He identifies the most common causes of supply shortages and devel-
ops a quantitative supply chain model with the ability to simulate causes of identi-
fied shortages and proposes the key performance indicators to evaluate the
sustainability of the supply chains in question from several perspectives. He con-
cludes with two future research issues: “(i) our study calls for a quantitative com-
parison and robust sensitivity analysis of all primary and secondary causes of
medicines shortages using the proposed model, and (ii) both existing and new pol-
icy recommendations regarding oncological medicines shortages in Europe should
be studied quantitatively.”
The tourism industry encompasses a web of supply chains when multiple actors
play their role to the success of various new ventures especially in Asia. Relying on
a real case study, Wongsurawat et al., in Chap. 10, present an in-depth analysis of a
1 Innovative Solutions for Sustainable Supply Chains: An Introduction 11
In the final chapter of this section, Chap. 12, “Risk Assessment of the Timber Supply
Chain in Southern Ontario Using Agent-Based Simulation,” Marcin Lewandowsk
and Ali Asgary demonstrate the utility of agent-based modeling approach in analyz-
ing the supply-demand dynamics in the timber industry (Lewandowsk & Asgary,
2018). According to the authors:
12 H. Qudrat-Ullah
The bioenergy sector has been experiencing significant growth in the last two decades. That
said, the industry faces many challenges, mainly focused around the understanding of feed-
stock supply risk. Developers and investors cannot properly price risk without raw material
supply chain risk understanding, making the development of the bioenergy industry slower
than it would otherwise be. Currently biofuel, or wood pellet, production in Ontario requires
wood chips supplied by existing sawmills. The supply of wood chips in turn depends on the
supply of timber. A model was developed here simulating the timber supply chain in
Southern Ontario. The objective of the simulation was to show the applicability of com-
puter simulation methods in determining the most resilient areas from a perspective of a
developer looking to build a new biofuel plant. The simulation presented here, developed in
Any Logic 7.3.5, is considered a base simulation. That is, it can be improved upon to simu-
late different disturbances, or add/change experiment assumptions. The simulation is there-
fore a first version of a useful tool that has a potential to improve the understanding of risk
among biofuel developers and investors.
At the outset of this project, we set the objective of this edited volume as “to present
the latest decision making tools, techniques, and insightful and innovative solutions
that decision makers can utilize to overcome the challenges that their sustainable
supply chains face.” Both eminent and distinguished as well emerging scholars of
the supply chain domain responded to our call for contributions with their unique
solution-oriented research. We are successful in showcasing, here in this book, 11
chapters covering a range of perspectives and model-based solutions unified by a
common goal: to improve the performance of sustainable supply chains.
We have six leading contributions presenting unique perspectives including
R&D technologist’s perspective, a meta-analysis-based perspective, green’s per-
spective on supply chain management, product design modularity perspective on
sustainable supply chains, trainings’ perspective on sustainable supply chains, and
system dynamics’s perspective on a procurement function within the supply chain.
These perspectives provide insights and solid reasons as to what should be done and
why it should be done to build and sustain integrated supply chains for the twenty-
first century.
With regard to the theme of the innovative solutions for the sustainable supply
chains, we have five state-of-the-art applications of system dynamics, econometric,
and agent-based models: wind-power industry’s supply chain in Brazil, essential
consumer goods industry’s supply chain in Europe, sustainable management of
global food supply chain, designing a sustainable tourism supply chain, and risk
assessment of the timber supply chain in Southern Ontario. These applications
address the critical question of “how to do” by demonstrating the design, develop-
ment, and application of model-based solutions aimed at improving the perfor-
mance of sustainable supply chains.
1 Innovative Solutions for Sustainable Supply Chains: An Introduction 13
References
Barrad, S., Valverde, R., & Gagnon, S. (2018). The application of system dynamics for a sustain-
able procurement operation. In H. Qudrat-Ullah (Ed.), Innovative solutions for sustainable
supply chains. New York: Springer, USA (in press).
Burki, U. (2018). Green Supply Chain Management, Green Innovations, and Green Practices.
In H. Qudrat-Ullah (Ed.), Innovative Solutions for Sustainable Supply Chains. New York:
Springer, USA (in press).Tuczek, F., and Wakolbinger, T. (2018). A Meta-Analysis of
Sustainable Supplier Selection Approaches. In: Qudrat-Ullah, H. (ed.). Innovative solutions for
sustainable supply chains. Springer, USA: New York (in press).
Gunarathne, A., Nuwan, D., Navaratne, D. G., Pakianathan, A. E., Perera, N., & Yasasi, T. (2018).
Sustainable food supply chain management: An integrated framework and practical perspec-
tives. In H. Qudrat-Ullah (Ed.), Innovative solutions for sustainable supply chains. New York:
Springer, USA (in press).
Herrera, M., Dyner, I., & Cosenz, F. (2018). The wind-power industry’s supply chain in Brazil. In
H. Qudrat-Ullah (Ed.), Innovative solutions for sustainable supply chains. New York: Springer,
USA (in press).
Ho, S. C., & Chuah, K. B. (2018). Determinants of ITF R&D Technology Commercialization in
logistics and supply chain industries: R&D technologist perspective. In H. Qudrat-Ullah (Ed.),
Innovative solutions for sustainable supply chains. New York: Springer, USA (in press).
Lewandowsk, M., & Ali Asgary, A. (2018). Risk assessment of the timber supply chain in southern
Ontario using agent-based simulation. In H. Qudrat-Ullah (Ed.), Innovative solutions for sus-
tainable supply chains. New York: Springer, USA (in press).
Nowak, T., Toyasaki, T., & Wakolbinger, T. (2018). The road towards a circular economy: The role
of modular product designs in supply chains. In H. Qudrat-Ullah (Ed.), Innovative solutions for
sustainable supply chains. New York: Springer, USA (in press).
Stefan Grossor, S. (2018). Resilience as basis for sustainability: Shortages in production supply
chains for essential consumer goods. In H. Qudrat-Ullah (Ed.), Innovative solutions for sus-
tainable supply chains. New York: Springer, USA (in press).
Sterman, J. D. (2000). Business dynamics: Systems thinking and modeling for a complex world.
New York: McGraw-Hill.
Wongsurawat, W., & Shrestha, V. (2018). Designing a sustainable tourism supply chain-a case
study from Asia. In H. Qudrat-Ullah (Ed.), Innovative solutions for sustainable supply chains.
New York: Springer, USA (in press).
Yosuf, I., & Azhar, T. (2018). Policy Design for Sustainable Supply Chains through trainings. In
H. Qudrat-Ullah (Ed.), Innovative solutions for sustainable supply chains. New York: Springer,
USA (in press).
Part II
The Unique Perspectives for the
Sustainable Supply Chains
Chapter 2
Determinants of ITF R&D Technology
Commercialization in Logistics and Supply
Chain Industries: R&D Technologist
Perspective
Abbreviations
S. C. Ho (*) · K. B. Chuah
Department of Systems Engineering and Engineering Management,
City University of Hong Kong, Kowloon, Hong Kong
e-mail: [email protected]; [email protected]
2.1 Introductions
According to Research Report (2011), in Hong Kong, for at least the past 10 years,
more than 98% of enterprises in Hong Kong are small- and medium-sized enter-
prises (SMEs). They may be small individually, but together they employ 48% of
the total working population over 1.3 M employees, and their combined business
values was nearly 57% that of total business values in Hong Kong in 2009. SME
may not have enough resources to support and enable research and development
(R&D) technology in their company. They may have some concerns on the value of
R&D Technology such as cost, implementation time, extra manpower, actual value,
understanding of staff, etc. This study investigates how R&D Technologists think
their efforts can align with the industry needs during the development process. It
also examines from R&D Technologist’s perspective the determinant factors of
innovation and technology fund (ITF) and R&D Technology commercialization and
adoption in Hong Kong Logistics and Supply Chain Industries. This research aims
to find out which critical issues affect R&D project deliverables commercializing
and productizing to the industry. An R&D Technologist always faces challenges of
developing technology that matches industry needs. This research investigates how
R&D Technologists think their efforts can align with the industry needs during the
development process.
This is the first attempt of the multi-perspective study to bridge the gaps from
idea generation, R&D, and subsequent technology implementation and adoption by
industry. This research describes background of study, ITF R&D project in Logistics
and Supply Chain Industry in Hong Kong, literature review, theoretical background,
and research methodology, analysis of findings, and discussion and conclusions.
Qualitative and quantitative of the data collected from R&D Technologists have
been carried out using a proposed market-driven project management model,
MSTAM, which stands for market, science, technology, application, and market.
This study will address four distinct research questions (RQ) as follows:
2 Determinants of ITF R&D Technology Commercialization in Logistics and Supply… 19
RQ1: What are the main reason or major barriers why ITF’s R&D results commer-
cialization and adoption rate is not good in Hong Kong Logistics and Supply
Chain Industry?
RQ2: What are the appropriate actions or elements to motivate the industry users or
top management in the company to adopt or license the R&D results in their
company?
RQ3: What are the key considerations for them to adopt new technology or R&D
results in Hong Kong?
RQ4: How to facilitate, adopt, or integrate the R&D deliverables in the Logistics
and Supply Chain Industry in Hong Kong?
According to the ITF (2013), the audit selected projects for ITF, the project com-
pleted in the period form May 2008 to December 2012. The report shown that 12
projects are with post-completion evaluation, and the results have no technology
breakthrough, limit adoption, and no successful commercialization. These projects
cost ranging from HKD 1 million to HKD 19 million. None of the 12 projects had
commercialized technology breakthrough to the industry. The report showed the
figure of project cost of new projects commenced in the period of 2011–2012 to
2014–2015. The total project cost cumulative in 9 years is HKD 238.6 million for
five research centers in Hong Kong. The total commercialization income in five
research centers was HKD 174.9 million. The commercialization income compared
with project cost of new projects ratio was 4.13%. As indicated above, industry
contribution was very low. In the current situation, R&D centers were facing two
key issues in the ITF R&D project, namely, R&D project development and com-
mercialization rate was low and low project turnover rate.
In accordance with the HKTDC (2016) figure, the merchandise trade performance
index shows that the total exports, reexports, imports, and total trade figures con-
tinue to decrease from 2014 to the first quarter of 2016. The retail sales growth, visi-
tor arrival growth ratio, and service trade performance of total trade figure were
falling shapely, due to the Hong Kong immigration control of China visitor. Hong
Kong Logistics and Supply Chain companies are facing a big challenge in these
years. The major economic indicators indicate that the total HK exports in 2015 are
over HKD 2396.9 billion. This is a big figure for Hong Kong. Therefore, Logistics
and Supply Chain Industries are still one of the main pillar industries in Hong Kong.
Exploring the Variety of Random
Documents with Different Content
The Project Gutenberg eBook of Chambers's
journal of popular literature, science, and art, fifth
series, No. 116, Vol. III, March 20, 1886
This ebook is for the use of anyone anywhere in the United
States and most other parts of the world at no cost and with
almost no restrictions whatsoever. You may copy it, give it away
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eBook.
Author: Various
Language: English
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