Collaborative supply chain practices and performance: exploring the key role of information quality
TL;DR: In this paper, the authors report the results of a study examining the importance of information quality for the efficacy of collaborative supply chain practices and demonstrate that the impact of collaborative practices on performance varies significantly depending on the quality of information that is exchanged throughout the supply chain.
Abstract: Purpose - This paper seeks to report the results of a study examining the importance of information quality for the efficacy of collaborative supply chain practices. Design/methodology/approach - A questionnaire was sent to procurement managers throughout the supply chain within the German automotive industry. Regression analyses illustrate the differences in performance of collaborative practices under high and low information quality scenarios. Findings - The study illustrates that the impact of collaborative supply chain practices (i.e. information sharing, incentive alignment, joint-decision making) on performance varies significantly depending on the quality of information that is exchanged throughout the supply chain. Specifically, whilst information sharing improves operational performance when low and high quality information is exchanged, incentive alignment and joint decision making only improve operational performance when the information is of high quality. Originality/value - Although research on the performance impact of collaborative supply chain practices has advanced over the past decade, there is still a scarcity of research acknowledging the multidimensional nature of collaboration. Additionally, the importance of information quality for the success of collaborative practices has not been firmly established. The paper addresses this void in the literature by reporting results of an empirical study examining collaborative supply chains and practices within the German automotive industry. The paper will thus be beneficial to supply chain managers considering collaborative practices and will support further empirical research work in the collaborative supply chain research field.
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TL;DR: In this paper, a meta-analytic approach is used to provide a quantitative review of the empirical literature in SCI, and examines relevant design and contextual factors, concluding that there is a positive and significant correlation between SCI and firm performance.
Abstract: As supply chain activities become more dispersed among customers, suppliers and service providers, there is an increased need for customers and suppliers to work together more closely. Supply chain integration (SCI) has been a highly researched topic during the last 20 years. A meta-analytic approach is used to provide a quantitative review of the empirical literature in SCI, and examines relevant design and contextual factors. Eighty independent samples across 86 peer-reviewed journal articles, yielding a total of 17,467 observations, were obtained and analyzed. While general support exists in favor of the positive impact of SCI on firm performance in the literature, this research helps clarify mixed findings that presently exist. Our results indicate that there is a positive and significant correlation between SCI and firm performance. Additional subgroups and moderators are tested and provide nuanced views of the scope and specific dimensions of SCI, firm performance and their relationships.
426 citations
TL;DR: In this paper, the authors investigate a model of collaboration based on the notion of firms having strong working relationships with their suppliers and customers, and show that there is some support for this collaboration model, with both collaboration-based constructs influencing performance.
Abstract: Purpose – The purpose of this paper is to investigate a model of collaboration based on the notion of firms having strong working relationships with their suppliers and customers. Whilst issues associated with collaborative relationships between firms and their trading partners are a key theme currently being addressed in the supply chain management literature, there appears to be a lack of clear guidelines as to how such capability can be developed in a practical sense.Design/methodology/approach – Data from 418 Australian manufacturing plants are used to test the model. Two key constructs, customer relationship and supplier involvement, are developed. For predictive validity purposes, these constructs are regressed against firm performance construct.Findings – Results of structural equation modeling analysis show, inter alia, that there is some support for this collaboration model, with both collaboration‐based constructs influencing performance.Originality/value – The results provide an insight into ho...
224 citations
TL;DR: In this paper, the impact of customer integration on efficiency and the moderating role of supplier integration was analyzed in a sample of 200 manufacturing plants and two hypotheses were tested through a hierarchical regression analysis.
Abstract: Purpose – This research intends to investigate whether there are synergies that a firm could or should exploit by simultaneously implementing customer and supplier integration. In particular, the aim is to analyze the impact of customer integration on efficiency, and the moderating role of supplier integration.Design/methodology/approach – This study analyzes data from a sample of 200 manufacturing plants. Two hypotheses are tested through a hierarchical regression analysis. Customer and supplier integration constructs consider items related to different aspects of the integration (e.g. sharing of production plans and customers' forecasts, feedback on performance, communication on quality considerations and design changes, joint quality improvement efforts, close contact, partnerships). The focus of the integration clearly extends beyond the dyad, as it includes the integration of focal operations upstream and downstream, with both suppliers and customers.Findings – Supplier integration positively moderat...
204 citations
TL;DR: The results indicate that enhanced supply chain agility has positive impacts on the firm's sales, market share, profitability, speed to market, and customer satisfaction.
157 citations
TL;DR: In this paper, the authors investigated the extent to which organizational cultural fit between a buyer and supply chain participants influences performance and found that complementarity rather than congruence between the supply chain partners achieved successful performance outcomes.
Abstract: Purpose – The aim of this paper is to expand the knowledge of buyer-supplier relationships by investigating the extent to which organisational cultural fit between a buyer and supply chain participants influences performance. Design/methodology/approach – The study was conducted in a FMCG supply chain. A cultural dimensions questionnaire was used in a focal organisation (the buyer) and it identified best and poorest performing supply chain. The results were analysed using a series of ANOVA's within the respective supply chains. The findings were then triangulated via qualitative methods. Findings – The findings demonstrate that complementarity rather than congruence between the supply chain partners achieved successful performance outcomes. Organisations in the high-performing supply chain had significantly different cultural profiles, reporting significant statistical differences across all six cultural dimensions. Organisations in the low-performing supply chain had almost identical profiles across all six cultural dimensions with significantly lower mean scores across each dimension. Research limitations/implications – The deconstruction of organisational culture into its constituent dimensions in a supply chain provides insights for academics. Propositions are presented which provide a platform for further studies. Future studies could develop these findings by using a larger sample, over a longer period of time, and adding mediating variables that impact supply chain outcomes. Practical implications – Managers should pay attention to cultural evaluation within the supplier selection process as well as finance or strategic evaluations. A shared supply chain culture of norm-based trust and openness may yield better outcomes and reduced conflict and uncertainty throughout the supply chain. Originality/value – This is one of the first papers to deconstruct and measure organisational cultural fit empirically in a supply chain context.
142 citations
Cites background from "Collaborative supply chain practice..."
...…automotive and aerospace industries have long led the way with early supplier involvement and rationalisation initiatives (Cousins and Crone, 2003; Wiengarten et al., 2010), the concept has now permeated across a range of industries and sectors (Cadden et al., 2010; Lamming et al., 2013); while…...
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...In an era when supply chains are under extreme pressure to cut costs, proactive and collaborative supply chains, which exhibit behaviours of information sharing and joint cost reduction programmes are outperforming adversarial supply chains (Wiengarten et al., 2010)....
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...Although the automotive and aerospace industries have long led the way with early supplier involvement and rationalisation initiatives (Cousins and Crone, 2003; Wiengarten et al., 2010), the concept has now permeated across a range of industries and sectors (Cadden et al....
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References
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TL;DR: In this paper, the statistical tests used in the analysis of structural equation models with unobservable variables and measurement error are examined, and a drawback of the commonly applied chi square test, in additit...
Abstract: The statistical tests used in the analysis of structural equation models with unobservable variables and measurement error are examined. A drawback of the commonly applied chi square test, in addit...
56,555 citations
"Collaborative supply chain practice..." refers methods in this paper
...AVE is calculated as the square root of the average communality ( Fornell and Larcker, 1981...
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TL;DR: The extent to which method biases influence behavioral research results is examined, potential sources of method biases are identified, the cognitive processes through which method bias influence responses to measures are discussed, the many different procedural and statistical techniques that can be used to control method biases is evaluated, and recommendations for how to select appropriate procedural and Statistical remedies are provided.
Abstract: Interest in the problem of method biases has a long history in the behavioral sciences. Despite this, a comprehensive summary of the potential sources of method biases and how to control for them does not exist. Therefore, the purpose of this article is to examine the extent to which method biases influence behavioral research results, identify potential sources of method biases, discuss the cognitive processes through which method biases influence responses to measures, evaluate the many different procedural and statistical techniques that can be used to control method biases, and provide recommendations for how to select appropriate procedural and statistical remedies for different types of research settings.
52,531 citations
TL;DR: In this paper, the authors provide guidance for substantive researchers on the use of structural equation modeling in practice for theory testing and development, and present a comprehensive, two-step modeling approach that employs a series of nested models and sequential chi-square difference tests.
Abstract: In this article, we provide guidance for substantive researchers on the use of structural equation modeling in practice for theory testing and development. We present a comprehensive, two-step modeling approach that employs a series of nested models and sequential chi-square difference tests. We discuss the comparative advantages of this approach over a one-step approach. Considerations in specification, assessment of fit, and respecification of measurement models using confirmatory factor analysis are reviewed. As background to the two-step approach, the distinction between exploratory and confirmatory analysis, the distinction between complementary approaches for theory testing versus predictive application, and some developments in estimation methods also are discussed.
34,720 citations
Additional excerpts
...Anderson and Gerbing (1988) suggest...
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...correlations (Anderson and Gerbing, 1988)....
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...validity is given (Anderson and Gerbing, 1988)....
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Book•
28 Apr 1989
TL;DR: The General Model, Part I: Latent Variable and Measurement Models Combined, Part II: Extensions, Part III: Extensions and Part IV: Confirmatory Factor Analysis as discussed by the authors.
Abstract: Model Notation, Covariances, and Path Analysis. Causality and Causal Models. Structural Equation Models with Observed Variables. The Consequences of Measurement Error. Measurement Models: The Relation Between Latent and Observed Variables. Confirmatory Factor Analysis. The General Model, Part I: Latent Variable and Measurement Models Combined. The General Model, Part II: Extensions. Appendices. Distribution Theory. References. Index.
19,019 citations
TL;DR: In this article, a general null model based on modified independence among variables is proposed to provide an additional reference point for the statistical and scientific evaluation of covariance structure models, and the importance of supplementing statistical evaluation with incremental fit indices associated with the comparison of hierarchical models.
Abstract: Factor analysis, path analysis, structural equation modeling, and related multivariate statistical methods are based on maximum likelihood or generalized least squares estimation developed for covariance structure models. Large-sample theory provides a chi-square goodness-of-fit test for comparing a model against a general alternative model based on correlated variables. This model comparison is insufficient for model evaluation: In large samples virtually any model tends to be rejected as inadequate, and in small samples various competing models, if evaluated, might be equally acceptable. A general null model based on modified independence among variables is proposed to provide an additional reference point for the statistical and scientific evaluation of covariance structure models. Use of the null model in the context of a procedure that sequentially evaluates the statistical necessity of various sets of parameters places statistical methods in covariance structure analysis into a more complete framework. The concepts of ideal models and pseudo chi-square tests are introduced, and their roles in hypothesis testing are developed. The importance of supplementing statistical evaluation with incremental fit indices associated with the comparison of hierarchical models is also emphasized. Normed and nonnormed fit indices are developed and illustrated.
16,420 citations
"Collaborative supply chain practice..." refers background in this paper
...indicate that all of the coefficients of the measurement items exceed twice their standard error indicating convergent validity ( Bentler and Bonett, 1980...
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