The impact of buyer firm information connectivity enablers on supplier firm performance

Multi-criteria decision analysis of significant enablers for a competitive supply chain

Purpose

The purpose of this research paper is to study the significant enablers for a competitive supply chain and analyze the relationships among them by using multi-criteria decision-making (MCDM) techniques. The supply chain (SC) managers will get better insights from the models of this study to design their SCs that are more competitive for competitive advantage.

Design/methodology/approach

After an extensive review of literature followed by experts' opinions, 21 significant enablers for a competitive SC (CSC) were selected for structural modeling using MCDM techniques of total interpretive structural modeling (TISM), Impact Matrix Cross-Reference Multiplication Applied to a Classification (MICMAC), followed by decision-making trial and evaluation laboratory (DEMATEL) approach.

Findings

Top management commitment is the most prominent causing enabler of a CSC; customer satisfaction is the topmost effect enabler; the operational performance of individual firms in the supply chain is a crucial enabler of a CSC.

Practical implications

The results and findings of this study would provide better insights to SC professionals and practitioners to comprehend the significant enablers of a CSC for designing and executing SC operations more competitively to achieve better customer satisfaction and sustainable business performance.

Originality/value

To the best of the authors’ knowledge, this is a foremost study focusing on the significant enablers of a CSC by utilizing the TISM along with MICMAC and DEMATEL methods. It is expected that this research will offer useful guidance for assessing and considering the SC enablers for achieving a CSC and facilitate new research in this area with more thrust.

Collaborative process competence as an enabler of supply chain collaboration in competitive environments and the impact on customer account management

Purpose

The purpose of the current research seeks to understand what role supply chain (SC) collaboration plays in effectively managing customers of a firm. The research also investigates what role industry competitive intensity plays on SC collaboration formation.

Design/methodology/approach

The current research utilizes empirical survey data from professionals whose companies collaborate within a SC. Structural equations modeling is employed to assess the relationship of collaborative process competence on SC collaboration as well as the moderating impact of industry competitive intensity. A further boundary condition is examined with the partner interdependence SC collaboration relationship. Additionally the SC collaboration account management relationship is also investigated.

Findings

The paper provides empirical insights on how SC collaboration contributes to focal firm customer account management. Additionally, results suggest that collaborative process competence and its relationship with SC collaboration works differently in the presence of partner interdependence and the moderator of industry competitive intensity.

Research limitations/implications

While the findings help to promote the generalizability of the new research, future research could seek to understand how firms could develop specific account management value propositions through SC collaboration in specific contexts.

Originality/value

The main contributions of the work include empirical analysis of a proposed theoretical model, a better understanding of the role collaborative process competence plays on SC collaboration formation and the discussion of customer account management as an outcome of SC collaboration.

Environmental scanning, supply chain integration, responsiveness, and operational performance

Purpose

It remains unclear how environmental scanning (ES) can generate firm performance through supply chain management (SCM) practices. The purpose of this paper is to investigate the effects of ES on operational performance through supply chain integration (SCI) and supply chain responsiveness (SCR).

Design/methodology/approach

The scanning–interpretation–action–performance (SIAP) model and organization information processing theory (OIPT) are used to explain the ES–SCI–SCR–performance (S–I–A–P) relationships, which were tested by structural equation modeling of survey data of 329 manufacturing firms in China.

Findings

The results indicate that ES has a significant positive effect on SCI and SCR. SCI is significantly and positively related to SCR. SCR partially mediates the relationship between ES and operational performance, and fully mediates the relationship between SCI and operational performance.

Practical implications

Supply chain managers should collaborate with senior executives to obtain signals from ES activities, as input for building SCI and SCR and use SCI as a joint interpretation mechanism of ES signals for developing SCR to reap operational advantages in the rapidly changing business environment.

Originality/value

Strategic management academics and practitioners have explicitly emphasized the importance of ES in developing strategic plans but are unsure about the role of SCM in creating operational advantages through ES. Using the SIAP model, this study theorizes and demonstrates how SCI and SCR transform signals from ES into operational performance. In doing so, a more precise application of OIPT is explicated in the supply chain context.

Interactions in sustainable supply chain management: a framework review

Purpose

The purpose of this paper is to evaluate the research conducted among the interim, dyadic interactions that bridge the stand-alone measures of economic, environmental and social performance and the level of sustainability, as suggested in the Carter and Rogers (2008) framework.

Design/methodology/approach

This paper conducts a systematic literature review based on the Tranfieldet al.(2003) method of the articles published in 13 major journals in the area of supply chain management between the years 2010 and 2016. Results were analyzed using an expert panel.

Findings

The area of research between environmental and social performance is sparse and relegated to empirical investigation. As an important area of interaction, this area needs more research to answer the how and why questions. The economic activity seems to be the persistent theme among the interactions.

Research limitations/implications

The literature on the “environmental performance and social performance (ES)” interactions is lacking in both theoretical and analytical content. Studies explaining the motivations, optimal levels and context that drive these interactions are needed. The extant research portrays economic performance as if it cannot be sacrificed for social welfare. This approach is not in line with the progressive view of sustainable supply chain management (SSCM) but instead the binary view with an economic emphasis.

Practical implications

To improve sustainability, organizations need the triple bottom line (TBL) framework that defines sustainability in isolation. However, they also need to understand how and why these interactions take place that drive sustainability in organizations.

Originality/value

By examining the literature specifically dedicated to the essential, interim, dyadic interactions, this study contributes to bridging the gap between stand-alone performance and the TBL that creates true sustainability. It also shows how the literature views the existence of sustainability is progressive, but many describe sustainability as binary. It is possible that economic sustainability is binary, and progressive characterizations of SSCM could be the reason behind the results favoring economic performance over environmental and social.

Buyer–supplier relationships in IT outsourcing: consultants’ perspective

Purpose

Supply chain relationships have often been analysed from the macro-perspective of the companies involved, but there is less evidence of how relationships relate to the micro-perspective of persons involved. The purpose of this paper is to investigate, in IT outsourcing (ITO), how the buyer–supplier relationship type strengthens buyer performance from the perspective of consultants.

Design/methodology/approach

IT consultants were surveyed, and analysis was performed considering the aggregated values of variables that characterise buyer–supplier relationships adjusted to ITO.

Findings

The results show that strategic relationships are associated with higher supplier investment in relational management than in transactional ones. Similarly, in this type of relationship, higher levels of trust are linked to the recognition of more activities shared between parties involved than in transactional relationships. The improvement of supplier development by buyers was also found to improve buyers’ performance.

Research limitations/implications

The model proposed here was developed for nonspecific industries but tested in the context of ITO. Further research should be undertaken to broaden generalisability.

Originality/value

The paper provides an understanding of the influence of the buyer–supplier relationship type on buyer performance based both on relational management and, more specifically, how the formal dimension of supplier development can also contribute to performance. ITO is increasing worldwide, and relational management affects outsourcing outcomes in broad supply chain integration. This analysis is usually visited from buyer and supplier perspectives using decision makers. This paper assesses it from the perspective of consultants.

Supply chain collaboration and firm’s performance

Purpose

The purpose of this paper is to identify and assess the interrelationships between various characteristics of information sharing and trust and their criticality for effective information-centred supply chain collaboration initiatives and, in turn, its criticality to overall firm’s performance.

Design/methodology/approach

A survey of 189 executives from different firms was conducted and the resulting data were analysed to investigate how collaboration enablers affect effective collaboration and to determine its impacts on organisational performance. Structural equation modelling through partial least squares is used to study the relationships between four enablers (trust, information readiness, information accuracy and information security), perceived collaboration success, and two outcomes (sales growth and overall operational performance).

Findings

The empirical results indicate that three collaboration enablers including trust, information readiness and secure sharing of information improve supply chain collaboration. The present study finds that “secure sharing of information” was the most important factor in fostering information sharing-centred collaboration. The present study also demonstrates that effective collaboration positively and significantly influences on firm’s performance.

Practical implications

This study provides researchers and practitioners with a more comprehensive understanding about the information sharing-centred collaboration, its enablers and effects on firms’ performance in a supply chain context. Future research should focus on developing additional constructs that may capture other drivers of effective collaboration.

Originality/value

The present study makes an empirical contribution to the body of knowledge by investigating an integrated framework focussing on the enablers of collaboration through information sharing and its impact on firms’ performance.

The role of dependence and information sharing on governance decisions regarding conflict

Purpose

Contemporary supply chain exchanges are governed by both contractual and relational governance mechanisms. However, the decision about when to use these mechanisms is likely driven by key relationship characteristics as well as the context in which they are needed. The purpose of this paper is to evaluate the influence of dependence and information sharing on the governance decision within the context of inter-organizational conflict, and assess the degree to which contractual and relational governance approaches lead to more satisfying outcomes.

Design/methodology/approach

This research builds on both transaction cost and conflict resolution arguments to build hypotheses. To test the hypotheses, survey data were collected from supply chain professionals regarding specific episodes of conflict and analyzed using an ordinary least squares regression.

Findings

The results show a strong reluctance for the use of relational governance mechanisms to resolve conflict when the relationship is characterized by strong joint dependency or information sharing asymmetries. A strong dependence asymmetry and high degree of joint information sharing are associated with greater use of contractual and relational governance approaches, respectively. Finally, the authors find that contractual mechanisms do not necessarily lead to a dissatisfactory outcome for the manager involved.

Originality/value

This research investigates not only the use of contractual and relational governance mechanisms in inter-firm conflict resolution, but also the relationship specific factors that influence a firm’s decision to leverage either type of governance mechanism.

To examine the relationships between supplier development practices and supplier-buyer relationship practices from the supplier’s perspective

Purpose

The purpose of this paper is to examine the relationships between supplier development practices (SDPs) and supplier-buyer relationship practices from the supplier’s perspective (SBRSP), and seek to understand how specific SDPs may impact a buyer’s operational performance as well as supplier-buyer relationship practices.

Design/methodology/approach

The authors conducted a survey of 512 respondents from the different manufacturing firms in India and applied structural equation modelling to test a structural model that proposes the impacts of various efforts of SDPs on a buyer’s performance as well as SBRSP.

Findings

The study concludes that SDPs and SBRSP together improve the relationship between a buyer and supplier, and this improved relationship leads to competitive advantages (CAs) followed by profitability. Results indicate that supplier perspective of buyer-supplier relationship can be improved under the condition of SDPs and SBRSP together. SDPs are driven by productive measure and competitive pressure, whereas customer uncertainty is found to be statistically insignificant.

Research limitations/implications

The study was carried out in North Maharashtra Industrial Zone of India, where the auto sector and machine/components manufacturing firms have been established for a considerable period of time. Results of the study are limited to manufacturing organizations predominantly focussing on the automobile sector and machine/components manufacturing firms.

Practical implications

This study provides significant insights into the specific impact of various SDPs and SBRSP for both academics and practitioners. SDPs along with SBRSP practices lead to improvement in the relationship leading to CAs. SBRSP suggests that trust, long-term commitments and the supplier’s perspective are important practices for relationship improvement.

Originality/value

The current study attempts to identify what are the success factors for the supplier-buyer relationship from the supplier’s perspective and SDPs and how the supplier-buyer relationship can be improved under the condition of SDPs and SBRSP. Hence, the aim is to develop a more thorough understanding of the outcomes of a supplier-buyer relationship improvement from both buyer’s and supplier’s perspective, under the conditions of supplier development to achieve CAs leading to profitability. Furthermore, the study analyses the effect of the improved supplier-buyer relationship for achieving CAs leading to profitability.

Zografos K, Harrison A. Developing a conceptual model for examining the supply chain relationships between behavioural antecedents of collaboration, integration and performance

Purpose

– The purpose of this paper is threefold: first, review the literature on the topic of behavioural antecedents of collaboration and their impact on supply chain integration and performance; second, lay the theoretical foundations and develop a conceptual model linking behavioural antecedents of collaboration, information integration, coordination of operational decisions and supply chain performance; and third, set out operationalisation considerations.

Design/methodology/approach

– A conceptual model with theoretical basis on Relational Exchange Theory (RET) and extant supply chain theory is developed as a causal model that can be operationalised using structural equations modelling (partial least squares) and a “single key informant” approach.

Findings

– Positive relationships between behavioural antecedents of collaboration (trust, commitment, mutuality/reciprocity), information integration, coordination of operational decisions and supply chain performance (efficiency, effectiveness) are hypothesised. RET provides adequate theoretical background that leads to the theoretical establishment of hypotheses between behavioural antecedents, supply chain integration and performance, which are worth testing empirically.

Research limitations/implications

– The ideas presented in this paper enrich the study of behavioural factors in supply chain management and their impact on supply chain performance, and may benefit researchers in the field. The paper also sets the scene (experimental design, measurement items) for the upcoming field research. The empirical part of the work will provide the necessary evidence for the validation of the established hypotheses.

Practical implications

– The proposed linkages may stimulate the interest of supply chain strategists towards more collaborative relationship management and affect their decisions on the behavioural antecedents of relationship formation and management. Moreover, the proposed model may help clarify how the integration of critical operational contingencies – information, operational decisions – can help achieve superior supply chain performance.

Originality/value

– The paper establishes a causal relationship between constructs which have not been researched (mutuality/reciprocity, coordination of operational decisions) or have been researched individually or in combination (impact of integration on performance, impact of collaboration on performance) but not in the proposed integrated way. It also addresses the challenge of lack of theoretical justification on the development of knowledge that will assist decision making in SCM/logistics and its integration into models, processes and tasks. Finally, by using RET in selecting of behavioural factors and establishing hypotheses, it adds to the body of knowledge concerning the use of interorganisational theories in supply chain relationships.

Zacharia Z. The impact of collaborative engagement on knowledge and performance gains in episodic collaborations

Purpose

– Supply chains are embedded in a larger network of enterprises where firms exchange offerings, often compete for the same customers, and constantly innovate to improve their performance. In these dynamic environments, firms are increasingly dependent on the knowledge and expertise in external organizations to innovate, problem-solve, and improve performance. Firms are increasingly collaborating to exchange and pool skills and knowledge and deploy resources and capabilities not found in their own firm. This research using both structured interviews and survey data seeks to determine what are the direct benefits and the ancillary benefits of collaboration. The paper aims to discuss these issues.

Design/methodology/approach

– A mixed methodology approach was utilized, using qualitative structured interviews leading to developing a research model and then an empirical survey of 473 participants who are involved in their respective organization's collaboration projects. The data were analyzed using structural equation modeling to examine relationships between collaborative engagement, knowledge gained, operational outcomes and relational outcomes.

Findings

– The results of the study indicate that collaborative engagement has a direct effect on knowledge gained, operational outcomes and relational outcomes in collaboration. The ancillary benefit of collaboration is the learning that takes place leads to improved operational outcomes and relational outcomes.

Research limitations/implications

– In this research study all the constructs are only examined from a single perspective. This can be a limitation as it would be of greater value to collect data from all the members involved in the collaboration.

Originality/value

– Collaboration has been well studied in many fields but this research suggests an important ancillary benefit that needs to be considered when deciding to collaborate is the knowledge and learning that happens during a collaboration.

Benchmarking model of supplier development for an Indian gear manufacturing company

Purpose

– The aim of this paper is to propose a benchmarking model of supplier development (SD) for an Indian gear manufacturing company for its successful adoption and improvement in a continuous basis.

Design/methodology/approach

– Thirteen SD critical success factors (CSFs) are identified and classified into four categories through extensive literature review and discussion held with managers/senior engineers in different Indian manufacturing companies. The four categories are primary CSFs related to supplier, secondary CSFs related to supplier, CSFs related to manufacturer and CSFs related to both manufacturer and supplier. The interpretative structural modeling (ISM) approach is applied to the Indian gear manufacturing company for developing and analyzing structural framework of CSFs to propose a benchmarking model for SD.

Findings

– It is concluded that SD adoption should be carried out in four phases sequentially for the Indian gear manufacturing company. The first, second, third and fourth phase should sequentially focus on primary CSFs related to supplier; secondary CSFs related to supplier; CSFs related to manufacturer; and CSFs related to both manufacturer and supplier, respectively. The proposed benchmarking model has four phases (i.e. plan, analyze, implement and measure) and bifurcated into 12 steps to enhance the performance of CSFs.

Practical implications

– This paper provides a useful benchmarking model for successful adoption of SD in manufacturing organizations.

Originality/value

– This is one of the few studies to develop the relationship of CSFs for SD in general and its application to an Indian gear manufacturing company in particular. A benchmarking model for SD is also proposed having five phases and 12 steps. The findings of the proposed structural framework and benchmarking model for the Indian gear manufacturing company are discussed in detail and will serve as a guideline for successful adoption of SD in manufacturing environment.

Understanding Interorganizational Agency

The opportunities and need for interorganizational collaboration in all production sectors have increased markedly over the later part of last century, yet, despite an extensive interorganizational relationships literature, little is still known about the way work is achieved in interorganizational collaborations and teams. Studies have failed to reveal the essence of the collaborative interfirm dynamic; the relationships between operational-level employees and how these are manifested and sustained at an interactional level. This case study of interfirm collaboration in the furniture manufacturing sector in France addresses this gap in the literature by examining the communication processes between the operational-level employees who produce enduring patterns of engagement. The findings reveal how actions are coordinated at the micro level through conversations and, in so doing, clarify how collective competence is formed and becomes stable. The result is a unique contribution to the literatures on interorganizational relationships (IOR) and organizational communication.