Walden University ScholarWorks Walden Dissertations and Doctoral Studies Walden Dissertations and Doctoral Studies Collection 2018 Strategies to Minimize the Bullwhip Effect in the Electronic Component Supply Chain Augustina Tina Onuoha Walden University Follow this and additional works at: https://scholarworks.waldenu.edu/dissertations Part of the Business Commons This Dissertation is brought to you for free and open access by the Walden Dissertations and Doctoral Studies Collection at ScholarWorks. It has been accepted for inclusion in Walden Dissertations and Doctoral Studies by an authorized administrator of ScholarWorks. For more information, please contact [email protected]. Walden University College of Management and Technology This is to certify that the doctoral study by Augustina Onuoha has been found to be complete and satisfactory in all respects, and that any and all revisions required by the review committee have been made. Review Committee Dr. Ronald Jones, Committee Chairperson, Doctor of Business Administration Faculty Dr. Ify Diala, Committee Member, Doctor of Business Administration Faculty Dr. Mohamad Hammoud, University Reviewer, Doctor of Business Administration Faculty Chief Academic Officer Eric Riedel, Ph.D. Walden University 2018 Abstract Strategies to Minimize the Bullwhip Effect in the Electronic Component Supply Chain by Augustina Onuoha MBA, Colorado State University, 2009 MS, University of Wisconsin, Madison, 1997 BS, Alabama A&M University, 1995 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University December 2018 Abstract Supply chain leaders in the information technology industry face challenges regarding their ability to mitigate amplified demand and supply variability in a supply chain network--the bullwhip effect--and reduce adverse implications on their component supply chain networks. The purpose of this multiple case study was to explore the strategies supply chain leaders in the United States used to reduce the bullwhip effect. Bullwhip effect theory served as the conceptual framework. Participants in the study were 5 purposefully selected supply chain leaders in the state of Texas who successfully implemented strategies to reduce the bullwhip effect on their networks. Data were collected from semistructured interviews and analysis of documents from the participants' websites. The data were analyzed using the 5 data analysis steps consistent with Yin’s approach: collection, stratification, reassembly, interpretation, and conclusion. Four themes emerged from data analysis: (a) collaboration strategy, (b) communication strategy, (c) component shortage reduction strategy, and (d) resource management strategy. Supply chain leaders might use the findings of this study to reduce the bullwhip effect within their networks and improve their profitability. The implications for positive social change include the potential for leaders to improve environmental sustainability by using effective supply chain strategies to reduce the accumulation of excess inventories, reduce transportation fuel usage, and lessen the consumption of natural resources. Strategies to Minimize the Bullwhip Effect in the Electronic Component Supply Chain by Augustina Onuoha MBA, Colorado State University, 2009 MS, University of Wisconsin, Madison, 1997 BS, Alabama A&M University, 1995 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University December 2018 Dedication I dedicate this study to my sons who are the source of my energy, support, and happiness. My God is with us (Immanuel, AKA Kelechi: KC), Will of God (Angel, AKA Uchechi: UC), and nothing is greater than God (Blessing, AKA Ginikachi: GC); thank you for your unconditional love and unwavering support. Together, we agreed that we could, and together, we did it! To God be all the Glory, now and always, Amen! KC, the times you cooked, served me food in my study room, took care of your brothers while I attended my first doctoral residence, and the back massages with kisses helped in ways you might never understand. UC, I am grateful for those times you woke up early to take your brother to school so that I could get a few more minutes of sleep before I went to work; thank you for entertaining your brother so that I could study. The times you called to check on my health and ensure that I was doing well with my stress management made the world of difference and motivated me in more ways than I can put in writing. My precious GC, you were there for me every step of the way. Thank you, son, for the hugs, kisses, and cuddles; more importantly, thank you for taking charge of your schoolwork, soccer training, and Kumon worksheets. Together, we did it! Acknowledgments God is good all the time, and all the time God is good. Not only did God provide me sufficient grace to guide me through the doctoral program, but He also surrounded me with a consistent support system along the path of my doctoral journey. My deepest gratitude goes to my doctoral chair, Dr. Ronald Jones. Dr. Jones, thank you for going beyond the call of duty to provide me with unwavering support. Your encouraging words, reassurance, and, more importantly, your belief in my ability were empowering. Thank you, Dr. Jones, for your patience and responsiveness. You are a gift to the doctoral students who are fortunate to have you as their doctoral chair. I thank Dr. Ify Diala for her expert insight, advice, and reviews. I also wish to acknowledge Dr. Mohamad S. Hammoud. Thank you for evaluating my first oral defense in my time of need. Dr. Hammoud, your feedback, comments, and suggestions were valuable and helped me to deliver a reliable study. I wish to acknowledge my friends and coworkers Thomas Mueller and Jorge Coello for the support you provided me during my doctoral journey. Tom and Jorge, thank you for your undivided attention and willingness to offer a helping hand. Your encouragement is much appreciated. Finally, I am grateful to my sons and friends for not disowning me during my doctoral journey. I could not have been able to complete the program if it were not for your unconditional love and support. Thank you! Table of Contents List of Tables .......................................................................................................................v List of Figures .................................................................................................................... vi Section 1: Foundation of the Study ......................................................................................1 Background of the Problem ...........................................................................................1 Problem Statement .........................................................................................................3 Purpose Statement ..........................................................................................................3 Nature of the Study ........................................................................................................3 Research Questions ........................................................................................................5 Interview Questions .......................................................................................................5 Conceptual Framework ..................................................................................................6 Operational Definitions ..................................................................................................6 Assumptions, Limitations, and Delimitations ................................................................8 Assumptions ............................................................................................................ 8 Limitations .............................................................................................................. 8 Delimitations ........................................................................................................... 9 Significance of the Study ...............................................................................................9 Contribution to Business Practice ......................................................................... 10 Implications for Social Change ............................................................................. 10 A Review of the Professional and Academic Literature ..............................................11 Literature Search Strategy..................................................................................... 11 i Organization of the Literature Review ................................................................. 12 Reference Source Analysis ................................................................................... 12 Bullwhip Effect Theory ........................................................................................ 13 Complementary and Contrasting Theories ........................................................... 34 Global Supply Chain Management ....................................................................... 47 Information Technology Economy ....................................................................... 50 Environmental Effect on Global Supply Chain Sustainability ............................. 55 Transition and Summary ..............................................................................................59