Social capital, relational learning, and performance of suppliers

2018 ◽  
Vol 30 (2) ◽  
pp. 417-437 ◽  
Author(s):  
Badri Munir Sukoco ◽  
Hardi Hardi ◽  
Alfiyatul Qomariyah
Keyword(s):  
Social Capital ◽  
Supply Chain ◽  
Information Sharing ◽  
Knowledge Integration ◽  
Relational Learning ◽  
Social Practices ◽  
Sense Making ◽  
Content Type ◽  
And Performance ◽  
The Relationship

Purpose The relationship between buyers and suppliers over the years – social practices – facilitate the development of social capital (SC), and it contributes to the relationship performance (RP) for both parties. The purpose of this paper is to examine the mechanisms that transform SC into RP. By exercising the relationship learning (joint sense-making, information sharing, and knowledge integration), this paper proposes that SC will transform into RP. Design/methodology/approach Quantitative study was employed in this study. Questionnaires were distributed to first-tier supplier of Astra Group (Astra International) in Indonesia. In total, 211 questionnaires were used for data analysis in this study. Findings The results exhibit that cognitive and structural SC contribute to the development of relational SC. Further, relational SC was positively associated with joint sense-making, which then goes through information sharing, knowledge integration, and finally RP. Research limitations/implications The cross-sectional data in a specific context (a firm) in Indonesia serve as a major limitation of this study. The development of SC and learning as a social process might not be captured well by using the current method – surveys. Furthermore, a major problem is caused by a one-sided survey that depends on the suppliers’ perceptions and judgments of relationship learning and performance. Practical implications The results suggest that managers and other relationship actors would benefit from the competency to develop practices and activities with suppliers regarding developing trust. The trust development is facilitated by having common understanding and interactions regularly, either by participating in formal and/or informal activities with suppliers. Building consensus – joint sense-making, between buyers and suppliers are crucial practices in relationship learning before knowledge sharing and knowledge integration practices are in place. And finally, managers should actively integrate this knowledge in order to increase their RP. Originality/value This study empirically tests the supply chain practice view as a new theoretical perspective in the supply chain management literature. It also extends the utilization of social practices – SC – since it is crucial in a buyer-supplier relationship. It also presents that relationship learning is a mechanism that could transform SC into RP, and thus bridge the SC and collaborative learning theory. Finally, this study indicates that inside relational learning, there are sequences of joint sense-making-information sharing-knowledge integration, before it moves on to RP.

Social capital, information sharing and performance

2014 ◽  
Vol 34 (11) ◽  
pp. 1440-1462 ◽  
Author(s):  
Yina Li ◽  
Fei Ye ◽  
Chwen Sheu
Keyword(s):  
Social Capital ◽  
Supply Chain ◽  
Information Sharing ◽  
Social Relations ◽  
Shared Vision ◽  
Reciprocal Relationship ◽  
Three Dimensions ◽  
Relational Capital ◽  
Content Type ◽  
And Performance

Purpose – The purpose of this paper is to examine the effects of social resources on promoting information sharing practice and, thereby, improving firm performance. In particular, the authors are interested in addressing the following research questions. First, can the development of social capital (expressed in three dimensions: cognitive capital, structural capital, and relational capital) promote the content and quality of supply chain information sharing? Second, what are the relationships among the three social capital dimensions in the context of information sharing? Third, what are the effects of shared information (content and quality) on firm performance? Design/methodology/approach – A theoretical model and several research hypotheses, well-grounded in the western literature, are developed. Data from 272 manufacturers in China were collected to test the model and the hypotheses. Structural equation modeling was used for statistical analysis. Findings – The statistical results reveal that each social capital dimension has different effects on information sharing and performance. Namely, relational capital and cognitive capital have significant positive influences on information sharing. Structural capital has no direct positive impact on information sharing, but it displays indirect affects through the other two social capital dimensions. Furthermore, both the content and quality of the shared information improve manufacturing efficiency and responsiveness performance. Finally, the paper also recognizes possible reciprocal causality between relational capital and cognitive capital. Research limitations/implications – First, considering the distinct role of social relations in China, future studies should examine the influence of social capital and the potential reciprocal relationship between trust and shared vision, using data from other countries. Second, data were collected solely from the Pearl River Delta, China. Studies based on samples drawn from other regions, such as the Yangtze River Delta, the Bohai Sea economic area, and southwest China, would provide a degree of geographic and economic diversity and extend the generalizability of the results. Practical implications – Despite the touting of the value of information sharing, many companies struggle with the practice. The findings help us understand the process by which social capital accumulates and contributes to information sharing. Namely, firms must first engage in social interactions with supply chain partners in order to develop a trusting relationship and a shared vision for information sharing. The managers must also be aware of the possible reciprocal relationship between trust and shared vision. Both the volume and content of information sharing are critical to the performance. Social implications – Manufacturers can use the concept of social capital to build relational rents for information sharing. Originality/value – Responding to the call from the literature, this study extends the discussion of antecedents and consequences of supply chain information sharing, with a focus on the influences of relational resources. The paper proves that social capital provides a valid theoretical base from which to examine the role of social relations in promoting supply chain information sharing. Previous supply chain research in social capital often limited its consideration of social capital to relational capital. Understanding the effects of all three dimensions of social capital and their inter-relationships would contribute to the process by which social capital accumulates and promotes information sharing. Additionally, a study with the Chinese data should validate the theoretical model developed based on western literature, and offer valuable insights to researchers and practitioners from both economic and cultural perspectives.

The relationship between information sharing, informal contracts and trust on performance of supply chain management in the SMEs of batik

2018 ◽  
Vol 22 (3) ◽  
pp. 292-314 ◽  
Author(s):  
Aries Susanty ◽  
Norma Mustiana Sirait ◽  
Arfan Bakhtiar
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Data Collection ◽  
Information Sharing ◽  
Significant Positive Effect ◽  
Chain Management ◽  
Content Type ◽  
Informal Contracts ◽  
The Relationship ◽  
Positive Effect

Purpose The purpose of this study is twofold: to examine the effect of information sharing and contract on increasing the trust level in the relationship between the batik small- and medium-size enterprises (SMEs) and supplier and to examine the trust on performance of a supply chain related to the procurement of raw cotton fabric (mori). Design/methodology/approach This research used primary data collected through interviews and closed questionnaires using a five-point Likert scale. The sample included 65 people, including batik SME-owners in Pekalongan, a Central Java city. This research was conducted using partial least square (PLS) through SmartPLS 3.0 software to analyze the hypothesis. Findings The results of hypothesis testing indicate that trust between owners of SME and their suppliers has a significant positive effect on the performance of supply chain management (SCM). Strong trust between batik SME- owners with their suppliers will be beneficial for both parties. Among other things, trust can reduce unnecessary cost and activity, reduce the waiting time for the arrival of raw material, reduce the number of inventories and increase profit and customer satisfaction. This result has also show that information sharing and informal contract have a significant positive effect on trust between batik SME-owners and their mori suppliers. In this case, information sharing has a higher effect on trust compared to informal contract. Broader information was distributed to the batik SME-owners and their suppliers, resulting in stronger trust between them. Research limitations/implications The limitations of this study include the relatively small sample size and data collection method used to determine the effect of trust, the number of the antecedent variables of trust and the type of scale used to measure the performance of the supply chain. Suggestions for future research may include expanding the scope of the data collection to other regions in Indonesia; adopting a dyadic approach and longitudinal research in providing evidence on the effect of trust as a component of an interactive activity along the supply chain; adding other variables that contribute towards increasing the trust between SMEs and their suppliers (such as commitment); and enhancing the performance measurement of SCM by using a direct measure of financial and non-financial performance instead of recording the perception of the batik SME-owners. Practical implications As the scale of their business increases, it is better if the batik SMEs can enhance information sharing and informal contract with suppliers to promote the development of trust. In this case, to ensure that batik SMEs will have better information sharing from their supplier, it is better if the batik SME-owners using the criteria of supplier willingness to share detailed information when they select the new supplier. Then, to increase the role of contract on trust, it is better if owner of batik SME learn to understand the written contract processes and procedures as their business scale increases. Social implications The research confirms that information sharing, informal contract and trust between batik SMEs and their suppliers can have a positive effect on the performance of the supply chain. It may encourage more SMEs and suppliers in the batik industry to build better information sharing, informal contract and trust as a bottom line for the economic and non-economic growth of their business. Originality/value The conceptual model used in this study is original, built from past research about the relationship between information sharing, informal contract and trust on the performance of the supply chain. Besides, the selection of the sample is also original, which in this case is on the batik SMEs which have informal contracts. This case has still been rarely studied, and the research is therefore highly valuable.

Impact of supply chain information sharing on performance of fashion enterprises

2019 ◽  
Vol 32 (6) ◽  
pp. 913-935 ◽  
Author(s):  
Caixia Chen ◽  
Tongyu Gu ◽  
Yuru Cai ◽  
Yixiong Yang
Keyword(s):  
Supply Chain ◽  
Organizational Performance ◽  
Information Sharing ◽  
Life Cycles ◽  
Equation Modeling ◽  
Content Type ◽  
Research Results ◽  
Fashion Brand ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to develop a novel research model to examine the relationship among information sharing (IS), supply chain integration (SCI), operational performance (OP) and business performance (BP) in the fashion supply chains. Design/methodology/approach A survey of 247 executives from Chinese fashion brand firms was conducted and the data were analyzed to investigate how IS affects the organizational BP. Structural equation modeling (SEM) was applied to study the relationship among IS, SCI, OP and BP. Findings The empirical research results indicate that IS is critical to enhance the SCI and OP, and both SCI and OP exert mediating effects on BP of fashion brands. This result also reveals constructive suggestions that allow fashion brands to strengthen their SCI and OP, as well as BP. Research limitations/implications Multiple data sources were applied to develop the sampling frame, and respondents were selected (according to their experience and position) to ensure they had the knowledge and expertise to provide valid response. However, this could not guarantee the adequacy of the sample. This limitation is compounded by the reliance on a simple respondent per firm, which precludes testing for inter-rater reliability. Practical implications The empirical findings provide an enhanced understanding of the relationship among IS, SCI, OP and BP in Chinese fashion brand settings. The research results will help fashion brands to improve supply chain efficiency and enhance company performance. Originality/value Although previous studies have realized that the value of IS varies in different industries, few have specifically explored the impact on the fashion industry characterized by short life cycles, high volatility, low predictability and high impulse purchasing. To fill this knowledge gap, the present study employed a questionnaire survey and SEM techniques to explore the relationship among IS, SCI, OP and BP in the fashion supply chain. Comprehending the impact mechanism of IS on organizational performance can provide useful management insights into the development of effective strategies that allow enterprise to improve BP.

Building knowledge integration in buyer-supplier relationships

2015 ◽  
Vol 35 (10) ◽  
pp. 1408-1436 ◽  
Author(s):  
Elena Revilla ◽  
Desirée Knoppen
Keyword(s):  
Decision Making ◽  
Knowledge Integration ◽  
Structural Model ◽  
Measurement Model ◽  
Supply Management ◽  
Sense Making ◽  
Joint Decision ◽  
Supplier Relationships ◽  
Content Type ◽  
The Relationship

Purpose – There are two major objectives in the research. First, the authors investigate the impact of knowledge integration in terms of joint decision-making and joint sense-making, on relational performance, including operational efficiency and innovation. Second, the authors examine the key antecedents that might facilitate knowledge integration: strategic supply management and trust. The paper aims to discuss these issues. Design/methodology/approach – This paper expands and tests theory drawing upon survey data from 133 buyer-supplier relationships (BSRs). The authors employed a two-step process of analysis to evaluate first the measurement model and then the structural model. The measurement model test built upon confirmatory factor analysis, while the structural model quality test built upon path analysis. Findings – The results suggest that both integrative mechanisms, joint decision making and joint sense making, affect performance although in different ways. This study also finds that while trust has multiple significant influences and consequently must be viewed as an organizing principle, strategic supply management is required to jointly understand the dynamic and complex context but not to jointly make ongoing decisions. Research limitations/implications – Three limitations: first, this study was cross-sectional rather than longitudinal. Second, in line with accepted practice, the authors surveyed only one side of the relationship. The suppliers’ viewpoint is thus not fully taken into account. Third, another potential limitation of the study is that the sample stems from just one country and its size does not distinguish subgroups in the analysis of the path model. Practical implications – Managers should be advised that: first, a trusting partnership built on knowledge integration is a hard order, especially with a new, unknown supplier in a low-cost country, where intellectual property protection is less obvious; second, strategic supply management may not improve cost or operational performance, but in its absence, it is unlikely that a supplier has insight into the exact needs of its buyer and thus, may not add considerable value to their customers; third, building a dynamic knowledge integration capability (valuable, rare, and difficult to imitate) takes time, as does creating reliable learning mechanisms. Joint teams, visit partners’ workplace, early involve suppliers in developing new products or selection of supplier with high-learning capabilities may help to create a knowledge integration capability. Social implications – The authors suggest that companies should move from an arm-length relationship and turn their supplier relationships into a tool for innovating faster while cutting cost. In order to do this, joint sense-making and joint decision should be seen as institutionalized inter-firm routines rather than ad hoc activities. Thus, the authors recommend managers to proactively build certain knowledge-based capabilities that hinges heavily upon a strategic stance toward supply management and trustful relationships with selected suppliers. Originality/value – The major intent of this research is to expand understanding of knowledge integration by building a more testable, complex model around its creation. While previous research relied on a configuration approach to explore the relationship between knowledge integration and performance, the authors evaluate causal relationships at the level of the formative dimensions rather than higher order knowledge integration, as this has proven to be a superior analytical method. Second, although supply chain scholars have expressed great interest in trust, an in-depth examination of prior studies in knowledge integration indicate that trust has been analyzed alone. In contrast, the study empirically examines the simultaneous effect of trust and strategic supply management in BSRs.

Modelling complexity in retail supply chains

Kybernetes ◽  
2016 ◽  
Vol 45 (2) ◽  
pp. 297-322 ◽  
Author(s):  
Esra Ekinci ◽  
Adil Baykasoglu
Keyword(s):  
Supply Chain ◽  
System Dynamics ◽  
Supply Chains ◽  
Information Sharing ◽  
Performance Measures ◽  
Dynamics Simulation ◽  
Type Analysis ◽  
Content Type ◽  
Retail Supply Chains ◽  
And Performance

Purpose – The purpose of this paper is to describe the characteristics of complexity and how a retail supply chain can contain complexity in itself. A case has been provided to show the measurement of complexity with/without information sharing and the relation of complexity with the performance measures. Quantification of the complexity will help the practitioners to take strategic actions. Design/methodology/approach – System dynamics simulation has been used to model the retail supply chain with and without information sharing and data visibility. Entropy-based metric used for quantification and comparison of complexity based on the outputs of the models. Performance measures proposed for the retail supply chains to understand the effect of data visibility. Findings – Paper provides insight about the complexity of retail supply chain perspective. Using system dynamics modelling can be a useful way to perform what-if type analysis before business process changes. Including both complexity and performance measures can be useful to understand if the complexity is good or bad for the business and if it is in manageable amount. Research limitations/implications – Paper can encourage the future research on retail supply chains. Practical implications – Approach can be useful to analyse what-if type analysis in practice easily. It can support strategic decision making process. Originality/value – Combines retail supply chain with complexity and performance measurement.

Acquired, transferred and integrated knowledge: a study of M&A knowledge performance

2018 ◽  
Vol 11 (3) ◽  
pp. 282-305 ◽  
Author(s):  
Rachel Calipha ◽  
David M. Brock ◽  
Ahron Rosenfeld ◽  
Dov Dvir
Keyword(s):  
Knowledge Integration ◽  
Theory Model ◽  
Annual Reports ◽  
Content Type ◽  
Knowledge Based ◽  
Before And After ◽  
And Performance ◽  
The Relationship ◽  
Integrated Knowledge

PurposeThe acquisition of knowledge through mergers and acquisition (M&A) may not create value—usually because the knowledge may not be transferred, or transferred but not integrated. The purpose of this paper to develop and test a theoretical model of knowledge and performance in the M&A process.Design/methodology/approachTheory, model and case analysis.FindingsThe literature review led us to distinguish between three main categories of knowledge along the different stages of the M&A process: acquired knowledge in the pre-merger stage; and transferred knowledge and integrated knowledge in the post-merger stage. The application of the model is illustrated in a case study of technology M&A, which includes data collected from annual reports before and after the merger.Research limitations/implicationsThe model recommends acknowledging the differences between the acquired knowledge, transferred knowledge and integrated knowledge when examining the relationship between knowledge and performance in M&As. In addition, the model suggests considering several factors that influence future knowledge integration in the pre-merger stage. Ignoring the three categories and the factors may be the reason for the reports of previous studied stating that the acquisition of knowledge-based resources is associated with negative announcement returns to the acquiring firm.Originality/valueThe paper presents new procedures to measure knowledge, collecting data on R&D employees by using annual reports. In addition, the paper suggests adding “in-process R&D” as an “Acquired Knowledge” measure.

Assessing the impact of business uncertainty on supply chain integration

2016 ◽  
Vol 27 (2) ◽  
pp. 463-485 ◽  
Author(s):  
Minkyun Kim ◽  
Sangmi Chai
Keyword(s):  
Supply Chain ◽  
Supply Chain Integration ◽  
Content Type ◽  
Four Dimensions ◽  
Purchasing Managers ◽  
And Performance ◽  
Push And Pull ◽  
The Impact ◽  
The Relationship

Purpose – The purpose of this paper is to investigate how business uncertainty affects the implementation of supply chain integration (SCI). More importantly, this research divides business uncertainty into four dimensions and SCI into three dimensions to examine the role of each dimension. In addition, it investigates the moderating effects of manufacturing approaches, such as push and pull, in the relationship between SCI and performance. Design/methodology/approach – Through a structured survey, this study collected 259 responses from supply executives, and supply and purchasing managers of US manufacturing firms. The empirical data analysis was done by using the partial least squares technique. Findings – The results empirically support the findings that business uncertainty positively affects implementation of SCI. Among the four dimensions of business uncertainty, dynamism and hostility significantly affect implementation of internal integration, integration with suppliers, and integration with customers. In addition, manufacturing approaches, such as push and pull, have a moderating effect on the relationship between SCI and performance. Practical implications – This study collected survey responses from a manufacturing firm in the supply chain to assist managers to find a solution while dealing with business uncertainty through the implementation of SCI. It also emphasizes manufacturing approaches, such as push and pull, in implementing SCI to improve performance. Thus, supply and purchasing managers should consider the business uncertainty that they are dealing with while developing their supply chain strategy. Originality/value – To the best of the authors’ knowledge, this study is the first to provide meaningful insights on the effects of SCI toward dealing with business uncertainty. More importantly, by dividing the dimensions of business uncertainty and SCI, this study presents empirical evidence of the significant role of supply chain practices in uncertain business conditions. In addition, this study addresses the gap in extant literature and shows that managers need to consider their manufacturing approach in SCI to improve business performance.

Examining the moderating role of HIHRP in the relationship between external integration and productivity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jorge Tarifa Fernández ◽  
José Cespedes-Lorente ◽  
Jerónimo de Burgos Jiménez
Keyword(s):  
Supply Chain ◽  
Human Resource ◽  
Hierarchical Regression ◽  
Food Sector ◽  
Content Type ◽  
Supplier Integration ◽  
And Performance ◽  
The Relationship ◽  
Moderating Role

Purpose Based on the human resource (HR) and supply chain integration (SCI) literature, this paper aims to argue that high-involvement human resource practices (HIHRP) work as a complementary capability for SCI, and thus, HIHRP moderates the relationship between SCI and firm productivity. This moderating role is analyzed through the following HIHRP dimensions, namely, ability-enhancing, motivation-enhancing and opportunity-enhancing practices framework. Design/methodology/approach Using empirical data collected from a survey of the agri-food sector (horticultural firms of southern Spain), the moderating effects of HIHRP on the relationship between supply chain external integrations (with customers and suppliers) and productivity are examined. Hierarchical regression analysis is used to test the proposed hypotheses. Findings The results support that HIHRP has a moderating effect on the SCI/productivity relationship. However, these results are only significant in the case of supplier integration. Originality/value This study analyzes HIHRP as a complementary asset in the context of SCI and makes both theoretical and managerial contributions to the SCI literature by empirically analyzing the role of HR practices in enhancing the relationship between SCI and performance.

scholarly journals Undermining alienative commitment through spiritual leadership: a moderated mediation model of social capital and political skill

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Moazzam Ali ◽  
Muhammad Usman ◽  
Shahzad Aziz ◽  
Yasin Rofcanin
Keyword(s):  
Social Capital ◽  
Spiritual Leadership ◽  
Political Skill ◽  
Content Type ◽  
Political Skills ◽  
Moderated Mediation Model ◽  
Time Lagged ◽  
And Performance ◽  
Indirect Relationship ◽  
The Relationship

PurposeThe purpose of the present study is to examine the relationship between spiritual leadership and employees' alienative commitment to the organization, both directly and indirectly, via employee social capital. We also test the role of employee political skill as a boundary condition of the indirect spiritual leadership–alienative commitment link.Design/methodology/approachTime-lagged data were collected from 491 employees in various manufacturing and service organizations. Data were analyzed using structural modeling equation in Mplus (8.6).FindingsSpiritual leadership was negatively associated with alienative commitment, both directly and indirectly, via social capital. Employee political skill moderated the indirect relationship between spiritual leadership and alienative commitment, such that the relationship was stronger when employee political skill was high (vs low).Practical implicationsThe demonstration of spiritual leadership's behaviors by both managers and employees can develop employees' social capital at work, which in turn can reduce employees' negative commitment to the organization. Likewise, improving employees' political skills can help leadership diminish alienative commitment.Originality/valueThe present work contributes to the literature on spiritual leadership by foregrounding how and why spiritual leadership undermines employee alienative commitment to the organization. By doing so, the study also enhances the nomological networks of the antecedents and outcomes of social capital and contributes to the scant literature on negative alienative commitment. Given the prevalence and negative repercussions of alienative commitment for employees' and organizations' productivity and performance, our findings are timely and relevant.

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