Research Question, and Objectives

This section identifies the research question and defined research aims and objectives. Re- search gaps presented at the beginning of section 2.2 suggest the existence of opportunities for knowledge creation. The research gaps selected for this research presents certain research input areas.

Identification of Research Inputs

The first is Supply chain coordination with time and cost as sources of uncertainties. Supply chains in project environment fit this description best. Hence, this research has selected a dyadic supply chain in a project set up with one main project manager organization and a contractor organization. In section 2.1.4, two broad categories of coordination mechanisms (Formal contracts and Informal relational mechanism) have been identified for supply chains. It was also argued that implementation of informal relational mechanisms are possible after formal contractual mechanisms. Although ¨Ozer et al. (2011) argued that existence of trust even in absence of contractual mechanisms can promote information sharing, but majority of the authors supported the need for formal contractual relation in first place. In fact Arshinder et al. (2007) presented a framework that highlights how the coordination mechanisms are devised in different stages of the coordination over time as shown in figure 2.6.

Figure 2.6: Coordination Mechanisms in the Supply Chain Processes (Source: Arshinder et al. (2007)

Based on this observation, this research has selected contractual mechanisms to test if the supply chain under consideration can be coordinated or not. The need for use of contractual mechanisms to coordinate the supply chains was highlighted in the literature of Kwon et al. (2010) and Lippman et al. (2013). The authors have highlighted the limited shreds of evi- dence of use of project contracts to coordinate the project supply chains. Kwon et al. (2010) used a time-based project contract to coordinate a dyadic supply chain in a take it or leave it situation with completion time as a source of uncertainty. On the contrary, Lippman et al. (2013) investigated the problems in a bargaining situation. Moreover, Lippman et al. (2013) used differential preferences for risk perception between the members. The relevant litera- ture review on project supply chains is presented in chapter 4 and chapter 5. These models are restricted by the choice of the selected nature of probability distributions such as the ex- ponential distribution of time (Kwon et al. 2010) and normally distributed completion cost (Lippman et al. 2013). It is discussed in chapter 4 and 5 that the completion time and comple- tion cost can take various other forms of probability distribution in practice. This renders a question mark on the applicability of the existing models. The present research is positioned to derive coordination models for different possible probability distributions of completion time and completion cost.

The concept of fairness is a popular phenomenon in Economics more precisely behavioural economics. However, the application of the concepts of the fairness is relatively new in sup- ply chain coordination. As per the best knowledge of the author, Cui et al. (2007) were one of the pioneer authors who used the concepts of fairness for channel coordination. Again, the relevant literature review is presented in chapter 6.

Research Question

Combining the research gaps presented, this research aims to answer the research question presented in fig. 2.7. The research question is highlighted in the black box in figure 2.7. This question is designed with inputs from various areas mentioned in the gray boxes above it with arrows pointing towards it. The output of this research contributes to several areas highlighted in the white boxes underneath the research question.

This research used mathematical models as input and generate mathematical models as output. Mathematical models tend to break down due to complexity with network kind of

Figure 2.7: Research Question

structures with multiple supply chain members (Huang et al. 2003). That is why a two-stage supply chain is selected. The research question highlighted in fig. 2.7 is answered with the following research aim

To investigate the coordination in a project supply chain using mathematical models and finally to overcome the challenges of fair allocation of risks and benefits.

This aim is broken down into three objectives

• Obj.1: To investigate and propose supply chain coordination models in a take it or leave it scenario using project contracts. This research extended the models proposed by Bayiz & Corbett (2005) and Kwon et al. (2010).

• Obj.2: To investigate and propose optimal coordinating solutions in a bargaining sce- nario. This research extended the models proposed by Lippman et al. (2013).

• Obj.3: To investigate if the supply chain can be coordinated with fairly allocated risks and benefits in the scenarios mentioned in objective 1 and 2.

Chapter 3

Research Methodology

In chapter 2, this research has identified the research question, research aim, and research objectives. In order to answer the research question and fulfill the objectives, this chapter ex- plains which research method(s) can achieve this. For this purpose, this research has referred to several journal articles which have discussed the issues around the selection of research method. Based on the findings from these journal articles and considering the research ques- tion, this research has designed the research method in this section.

This section is divided into three main subsections explaining the phases of this research as highlighted in fig. 3.1.

The research design is explained in the second phase.

3.1

Phase 1: Understanding the context

In the first phase of this research, research gaps and areas, where the proposed research can contribute to the knowledge base, are identified. Funded projects with existing problem area from the research institute in concern, industry-sponsored projects with existing problems and extensive literature reviews are generally used for identification of research gaps (Webster et al, 2002). This research has conducted an extensive literature review for this purpose. At the beginning, broad ideas were generated from the previous background knowledge on this subject area. This was followed by an initial literature review which narrowed the focus to particular research gaps in the area of supply chain management. After careful consideration, a very broad objective was decided. Keeping this broad objective in mind, based on further

literature review, generated ideas and with the help of pre-existing literature review articles (Cooper et al. 1997, Kanda et al. 2008), taxonomical framework for literature classification were identified (mentioned in fig. 2.1). This framework helped organize the literature. From an extensive literature review, several ideas were generated to identify the research gaps. In order to maintain a consistency and coherency in the gaps identified, idea screening was car- ried out. The screened, coherent and consistent ideas helped the formulation of the research question presented in figure 2.7 in chapter 2. In order to answer this research question, a set of objectives were identified, which will serve the objectives of this research project. All these findings were documented in the literature review chapter of this report.