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Selective Perception in Supply Chain Management and Logistics

October 30th, 2020
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Abstract

The concept of selective perception implies ignoring some suggestions because they do not appeal to clients positive attitude and beliefs. Indeed, selective perception plays an important role in advertising and marketing because it relies on the cultural and social sensitivity of clients and other stakeholders. When it concerns selective perception in the sphere of supply chain and logistics, the emphasis should be placed on such factors as the controlling criteria for choosing suppliers and vice versa the criteria used by the suppliers that choose a specific organization or company. In this respect, the attention should be paid to the development of specialized grounds an theories according to which supply chain networks could improved its productivity and performance.

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The Selective Perception in Supply Chain and Logistics

Introduction

The concept of selective perception is associated with both ignorance of the ideas which make people feel discomfort or negative emotions, or vice versa selective perception that implies the choice of the best opportunities and methods. In the context of supply chain management, the selective perception framework presupposes the choice of the most suitable suppliers. However, the specific requirements depend on a range of factors, such as the type of the industry involved, the nature of production, the location of suppliers, the quality of the received parts, and the time of delivery. In fact, selective perception can help organizations come up with the necessary criteria for choosing the suppliers with reliance on the clients needs and concerns, as well as the organizational mission and objectives.

Background

The concept of selective perception has been discussed in many dimensions, including customer relationship management, decision-making, and price analysis. In this respect, Hinner (2016) introduces a new outlook on cognitive processes in decision-making through which it is possible to evaluate selective perception. To enlarge on the issue, the author explains, one may only select that information which confirms ones own self-concept and ignore the rest, i. e. selective perception (Hinner, 2016, p. 15). In this respect, self-awareness has a critical influence on the way one controls ones own behavior and interaction. It is also the reason for retailers to pay attention to the ways prices and producers are developed by consumers.

Problem Statement

The concept of selective perception is associated with selective exposure, attention, and ignorance. Self-disclosure is also carried out through the preference of a specific idea in contrast to others. Therefore, the purpose of this study is to critically evaluate the role of selective perception in the supply chain and logistics. Indeed, these spheres are underexplored, providing no theories and directions for organizations on how to advance the quality of the supply chain operations. It is highly essential to conduct an extensive literature review to highlight the means and criteria for defining and controlling the selective perception of suppliers and clients through the development of new schemes and models on the basis of the leading practices and case studies.

Literature Review

It should be admitted that selective perception plays an important role in the decision-making process of each organization which plans to implement a new product or establish new partnerships with suppliers and investors. At this point, this concept should be discussed in more detail with reliance on such spheres as risk management, advertising, quality assessment, customer satisfaction, and organizational behavior.

Risk Management and decision-making in the supply chain network are complicated, with the supply chain risk sources associated with both internal and external forces. Moreover, the shortened product life cycle and the dynamic global market situation as well as the rising manufacturing cost pose a critical risk to the supply chain network in lowering the overall costs and, conclusively, enhancing customer service and satisfaction (Wang, Huang, & Dismukes, 2004). Furthermore, the network and relationship between suppliers and clients are closely interrelated, which requires time and effort to make the decision. Additionally, the supply chain network complexity itself increases the risk of interrupting the decision-making process.

Due to the increasing complexity in the supply chain, the decision-making process is becoming more significant and crucial nowadays. When it concerns choosing suppliers or logistic partners in business-to-business field, a decision must be accurate and clear to for the company to compete as a global player. In supply chains, coordination between a manufacturer and suppliers is typically challenging, because it creates new channels of distribution. A number of models have been developed for vendor selection decisions which are based on simplistic perceptions of the decision-making process (Manuj & Mentzer, 2008). Most of these methods do not seem to address the complex and unstructured nature and context of many current trends in purchasing. In fact, many known decision models are considered for supplier selection. However, in the decision-making processes, the following influencial factors are not always taken into consideration: additional qualitative criteria, incomplete information, and imprecision preferences.

In the studies by Sincero (2013), it has been stressed that selective perception would be one of the considerations while making a decision in the supply chain network and it could have an adverse influence on individual decision makers based on their experience with other vendors or business partners. The paper also examines the previous experience that has an effect on a particular perception mechanism. Additionally, Chen, Lin, and Huang, (2006) have focused on a fuzzy method of selection and evaluation in the supply chain management. Specifically, the paper dwells on the decision-making approach offered to cope with supplier selection issues in the sphere of the supply chain network. At present, the key strategic consideration refers to the ways of determining relevant supplies, although the nature and the character of these decisions are sophisticated and ambiguious. In general, both qualitative and quantitative factors, including price, quality, and flexibility should be considered to define suitable supplies. In the studies, the author focuses on the linguistic values for estimating the weights and the rating of the identified factors. Attention should be drawn to the employment of the hierarchy decision-making which is offered to cope with the supplier selection problem.

Furthermore, Haksoz (2013) has examined a selective perception influence, particularly in the supply chain decision-making processes. To enlarge on the issue, new evidence appears reliable and informative if it is consistent with ones initial beliefs. Hence, whatever one does not expect to notice is drawn from the peripheral vision. In this process, the context in which the weak signals are presented is also critical. Norman and Ulf (2004) agree with the idea that supply chain risk management plays a critical role due to the growing tendency of supply chain vulnerability. The main purpose of the study is to define the way Ericsson has developed a new organization, with new tools and processes, after being fired as a sub-supplier. The approach seeks to analyze, evaluate, and manage the risks resources all over the supply chain, partly due to cooperating closely with the suppliers, as well as by placing formal requirements. The research also outlines the insurance companies which could create the driving force for enhanced supply chain risk management as they embrace the risk of vulnerability of modern supply chains.

Tuncel and Alpan (2010) have discussed the risk assessment and management for the supply chain network. The authors have discussed the case study of Petri nets framework in using the model and analyzing the supply chain model with reliance on different risks. The method is promoted by industrial case studies. The authors have investigated the disruption issues of the supply chain network by means of a failure mode, outcomes, and critical evaluation techniques. Further, they have integrated new methods of management such as techniques through planning, design, and performance evaluation of supply chain networks. The developed model offers an effective environment for identifying the uncertainties in terms of the system and the evaluation of risk mitigation as well as value adding activities. The study concludes that the system performance can be upgraded by means of risk management, along with the overall system costs, which can be reduced through the mitigation scenarios. As soon as these issues are presented, it is possible to introduce a new vision of the selective perception in supply chain systems.

Shortly, selective perception is initially based on personal experiences and knowledge, as well as personal preference and interests. This tendency makes people think in their own way which strongly dominates in decision making processes, increasing the risk in many different ways (Harland, Brenchley, & Walker, 2003). It is also assumed that selective perception could affect supply chains when choosing vendors or business partners. In the majority of cases, this attitude prevents decision makers from thinking rationally, what can increase uncertainty in a complicated situation. However, selective perception could have some benefits too such as decreasing the time of decision making to a shorter period.

In addition, selective perception is closely associated with the customer demand, as well as competitiveness of certain organizations and suppliers. At this point, the stuides by Bamrara (2014) focus on the customer relationship management which affecs the technology and processes, as well as the understanding of the needs and concerns of a customer. It is also an integrated method for dealing with the relaitonship and selective perception of clients. In this respect, organizations that regard the needs and demands of their stakeholders can be more effective in managing supply and demand. Successful mechanisms often fail due to the lack of the recognition of perception and competitiveness of organizaitons that depend on the specific state of affairs. Thus, the study adjusts a relational plan of an executive strategy.

To sum up, cognitive bias influence manifests itself in many ways during a decision-making process. Specifically, a crucial role belongs to selective perception. This essay argues that cognitive bias influences the supply chain network and displays numerous risks in the supply chain vendor and business partner selection.

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Methods

As it can be seen, the methods used for understanding the role of selective perception in the supply chain and logistics are confined to qualitative assessment of case studies, theoretical frameworks and the ground which can expand the outlook on the selective perception, risk supply chain management, cognitive biases, and the organizations competitiveness. What is more important, the key issues represented in the supply chain framework rely on the way selective perception defines the risks and factors affecting the quality of delivery, competitiveness, the quality of supply partners, and motivational functions of an organization in attracting new suppliers. In fact, the qualitative assessment provides a firm ground for further discussions and the implementation of the practical investigations among multinational corporations which interact with numerous suppliers all over the world. The review of literature is a complex synthesis of information, taken from different research fields to draw the conclusion and provide a new outlook on the topic under analysis.

The qualitative method also introduces previous experience focusing on the assessment of peoples features, which is similar to that of the population study, advancing a complex risk understanding of a specific social phenomenon, taking precedence of eliciting data, and generalizing other geographic populations and areas. At this point, the qualitative method differs from the quantitative one in terms of the absence of numerical data and statistics, which are redundant in a particular environment.

Discussion

As it can be seen from the discussion, selective perception can be associated with a range of biases in the sphere of psychology because of the expectations related to perception. Human decision making can be distorted by a range of perceptual, motivational, and cognitive biases, which leads to people’s failing to recognize those ambiguities, although they can clearly define the operation of fault in the human assessment of other people. The studies have shown that cognitive bias can contribute to the emerging risks in the supply chain, which implies that the organizations mission, reputation, and image should be defined perfectly in order to avoid cognitive biases and frustration in future.

The studies presented above have also reported that selective perception is associated with advertising because consumers are involved in the promotion and marketing of products, which presupposes the existence of customer loyalty as the key issue in eliminating cognitive biases. To enlarge on the issue, the beliefs, habits, behavioral patterns, contextual background, and cultural variations come onto focus to assess the consumer’s behavior and supply chain trends. The task of the corporation is to attract suppliers with the positive image in the community since their behavior and reputation can affect the buying perception.

Finally, the advertising techniques should have a contextual and cross-cultural nature. In the majority of cases, multinational organizations can establish partnerships with suppliers from different cultural and social backgrounds. As a result, the selective perceptions could affect their advertising approaches, supply chain operations, terms of delivery, and the overall mission and objective. Indeed, cultural traditions define specific views, expectations, and trends in perceiving a specific product or services. At this point, supply chain networks should be sensitive to the organizational problems which adhere to the international standards of quality. In such a manner, it will be possible to establish an effective framework for managing sophisticated cases.

Apart from advertising and cultural sensitivity, selective perception is closely associated with risk management. The techniques for coping with the risks should also rely on the behavioral patterns, beliefs, and contextual backgrounds. The investigation of disruptive factors could introduce a specific technique to eliminate biases and uncertainties. Thus, the results of the study demonstrate the system performance. The development of new opportunities is possible through the overview of real-to-life practices, in which a risk management model is implemented to improve the quality of supply chain operations. It is also associated with the level of transport and logistics initiatives. Overall, the dynamics of communication with others could be determined through the levels of relationships and engagement. The relationship is reciprocal with the emphasis placed on the relationship networks which meet the needs of consumers. The prolonged reciprocal compatibility stems from the possibility of experiencing perceived benefits which outweigh the costs. Therefore, people should be involved in constant communication and interaction for the companies and the organizations to feel the scope of commitment and loyalty on the part of regular and new customers. Such a position can be attained through conducting specific surveys, questionnaires, and interviews. The alternative relationship can also be aimed at determining the extent to which the customers are socially active and ready to be engaged in the supply chain procedures. Hence, there are many methods and trends in controlling selective perception, particularly in the sphere of logistics and supply chain networks.

Conclusion

In conclusion, the concept of selective perception is an overwhelming phenomenon that embraces multiple dimensions of business operations, including the choice of supplies, terms of delivery, transport, and logistics. The consideration of cognitive biases, ambiguities, negative associations, beliefs, cultural traditions, and behavioral patterns is at the core of the discussion to outline the importance of selective perception is in the sphere of logistics and supply chain works. The extensive literature review introduced highlights theoretical and practical dimensions in which supply chain functions with regard to selective perception. The task of the research is to critically evaluate the connection between those spheres and to define that suppliers could also be guided by the principle of selective perception while choosing an organization to work with. Similarly, the reputation, image, and branding are on the current agenda because they determine the level of the organizations competitiveness.

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