Relational capital and supply chain collaboration for radical and incremental innovation

2019 ◽  
Vol 31 (4) ◽  
pp. 1076-1094 ◽  
Author(s):  
Nguyen Thi Mai Anh ◽  
Lei Hui ◽  
Vu Dinh Khoa ◽  
Sultan Mehmood
Keyword(s):  
Factor Analysis ◽  
Supply Chain ◽  
Information Sharing ◽  
Radical Innovation ◽  
Hunan Province ◽  
Incremental Innovation ◽  
Relational Capital ◽  
Supply Chain Collaboration ◽  
Content Type ◽  
The Relationship

PurposeThe purpose of this paper is to investigate the relationship between relational capital and supply chain collaboration (SCC) and how this relationship relates to innovation. The authors propose a theoretical framework to illustrate the effect of relational capital on three dimensions of collaboration and radical and incremental innovation.Design/methodology/approachThe paper has a quantitative approach. The authors conducted the survey to collect the data from 225 suppliers in the Hunan province of China. The proposed model is tested with exploratory factor analysis, confirmatory factor analysis and structural equation modelling.FindingsThe findings show that relational capital can facilitate information sharing and benefit/risk sharing when firms work together to achieve innovation. Furthermore, the results indicate that relational capital leads to radical innovation through facilitating information sharing among firms and helps in generating incremental innovation by encouraging firms to share risks and benefits with their partners.Practical implicationsThe findings of this study give some suggestions for managers of the firms in terms of building their collaborative strategies. Managers should exploit relational capital to build successful and long-term collaboration. Also, through relational capital, managers can share information to create radical innovation or pool risks and share benefits with their customers to achieve incremental innovation.Originality/valueThis study provides a nuanced understanding of the relationship between relational capital, different dimensions of SCC and innovation in the context of a developing economy. Moreover, the findings provide a clearer understanding of the collaborative mechanism of relational capital and collaboration to achieve radical and incremental innovation.

The role of cognitive proximity on supply chain collaboration for radical and incremental innovation: a study of a transition economy

2019 ◽  
Vol 34 (3) ◽  
pp. 591-604 ◽  
Author(s):  
Mai Anh Thi Nguyen ◽  
Hui Lei ◽  
Khoa Dinh Vu ◽  
Phong Ba Le
Keyword(s):  
Factor Analysis ◽  
Supply Chain ◽  
Transition Economy ◽  
Incremental Innovation ◽  
Equation Modeling ◽  
Supply Chain Collaboration ◽  
Cross Sectional ◽  
Incentive Alignment ◽  
Content Type

PurposeThe purpose of this paper is to investigate the role of cognitive proximity on supply chain collaboration and how it relates to radical and incremental innovation.Design/methodology/approachThe paper is based on quantitative approach to analyze the data of 218 firms in a developing and transition economy. The proposal model is tested with exploratory factor analysis (EFA), confirmatory factor analysis (CFA) and structural equation modeling (SEM).FindingsThe authors’ findings show that cognitive proximity facilitates decision synchronization and incentive alignment in the supply chain. Furthermore, the authors’ results indicate that information sharing and decision synchronization are determinants of radical innovation while incentive alignment is a determinant of incremental innovation.Research limitations/implicationsThis study was cross-sectional, so the authors could not consider the control variable such as sectors or firms’ size. It is hard to control the specific features of cognitive proximity in one single industry when using cross-sectional data. In future investigations, it may be possible to use a different dimension of proximity to explain the implementation of collaboration for innovation.Originality/valueThis study attempted to explore the role of cognitive proximity on supply chain implementation process in the context of a transition economy. Moreover, the authors’ findings provide the clearer understanding of the relationship between collaboration and innovation.

Leveraging supply chain collaboration in pursuing radical innovation

2018 ◽  
Vol 10 (3) ◽  
pp. 350-370 ◽  
Author(s):  
Erlinda N. Yunus
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Structural Equation ◽  
Positive Impact ◽  
Radical Innovation ◽  
Incremental Innovation ◽  
Equation Modeling ◽  
Supply Chain Collaboration ◽  
Content Type ◽  
The Impact

PurposeThe purpose of this study is to examine the relationship between supply chain collaboration and innovation. It particularly investigates the effect of collaboration on radical innovation and highlights the positive impact of innovation, both radical and incremental, on business performance.Design/methodology/approachA survey of 230 Indonesian firms was conducted and the instrument was tested for reliability and validity to warrant its psychometric properties. The data were analyzed using structural equation modeling.FindingsThis study reveals that collaboration with suppliers brings radical innovation, while collaboration with customers brings incremental innovation. Contrary to this study’s conjecture, albeit interesting, collaboration with customers negatively affects radical innovation. Both radical and incremental innovations further exert a positive influence over firm performance.Research limitations/implicationsThis study focuses on the relationships between supply chain collaboration, innovation and firm performance. The results enhance our understanding of types of innovation that are promoted by each dimension of collaboration. Further studies could extend the research by using a more elaborate measure of innovation or perform a longitudinal examination.Practical implicationsManagers are encouraged to pursue innovation as it improves firm performance. They could exploit their current partnership with customers to generate incremental innovation or leverage their supplier network to develop radical innovation.Originality/valueStudies that specifically investigate the impact of firms’ collaboration with their supply chain partners on radical innovation are quite scarce. This empirical study is among the very few to fill this void by providing an integrative assessment of customer, supplier and internal collaborations and their impact on both radical and incremental innovation.

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.

Potentials of blockchain technologies for supply chain collaboration: a conceptual framework

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abderahman Rejeb ◽  
John G. Keogh ◽  
Steven J. Simske ◽  
Thomas Stafford ◽  
Horst Treiblmaier
Keyword(s):  
Supply Chain ◽  
Conceptual Framework ◽  
Information Sharing ◽  
Resource Sharing ◽  
Supply Chain Collaboration ◽  
Goal Congruence ◽  
Content Type ◽  
Information Transparency ◽  
Narrative Literature Review ◽  
Key Dimensions

PurposeThe purpose of this study is to investigate the potentials of blockchain technologies (BC) for supply chain collaboration (SCC).Design/methodology/approachBuilding on a narrative literature review and analysis of seminal SCC research, BC characteristics are integrated into a conceptual framework consisting of seven key dimensions: information sharing, resource sharing, decision synchronization, goal congruence, incentive alignment, collaborative communication and joint knowledge creation. The relevance of each category is briefly assessed.FindingsBC technologies can impact collaboration between transaction partners in modern supply chains (SCs) by streamlining information sharing processes, by supporting decision and reward models and by strengthening communicative relationships with SC partners. BC promises important future capabilities in SCs by facilitating auditability, improving accountability, enhancing data and information transparency and improving trust in B2B relationships. The technology also promises to strengthen collaboration and to overcome vulnerabilities related to moral hazard and shortcomings found in legacy technologies.Research limitations/implicationsThe paper is mainly focused on the potentials of BC technologies on SCC as envisioned in the current academic literature. Hence, there is a need to validate the theoretical inferences with other approaches such as expert interviews and empirical tests. This study is of use to practitioners and decision-makers seeking to engage in BC-collaborative SC models.Originality/valueThe value of this paper lies in its call for an increased focus on the possibilities of BC technologies to support SCC. This study also contributes to the literature by filling the knowledge gap of how BC potentially impacts SC management.

The moderating role of information technology capability in the relationship between supply chain collaboration and organizational responsiveness

2016 ◽  
Vol 36 (10) ◽  
pp. 1247-1271 ◽  
Author(s):  
Zhao Cai ◽  
Qian Huang ◽  
Hefu Liu ◽  
Liang Liang
Keyword(s):  
Information Technology ◽  
Supply Chain ◽  
Hierarchical Regression ◽  
Supply Chain Collaboration ◽  
Organizational Responsiveness ◽  
Content Type ◽  
It Capability ◽  
Types Of Information ◽  
Information Technology Capability ◽  
The Relationship

Purpose The purpose of this paper is to propose a model to test the relationship between supply chain collaboration (SCC) and organizational responsiveness. Three types of information technology (IT) capability are considered as moderators in this relationship. Design/methodology/approach The study conducted a questionnaire survey of 208 firms from various industries in China. Hierarchical regression analysis was used to test the hypotheses. Findings SCC positively affects organizational responsiveness. Both outside-in and spanning IT capability positively moderates this relationship, whereas inside-out IT capability has a negative moderating effect on this relationship. Originality/value This research extends the knowledge regarding the value creation process of SCC from an organizational learning perspective. The study explores the moderating roles of three types of IT capability in this process and further clarifies the relationship between SCC and organizational responsiveness.

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.

scholarly journals The interplay between firms’ internal and external capabilities in exploration and exploitation

2018 ◽  
Vol 56 (7) ◽  
pp. 1559-1580 ◽  
Author(s):  
César Camisón ◽  
Montserrat Boronat-Navarro ◽  
Beatriz Forés
Keyword(s):  
Radical Innovation ◽  
Positive Influence ◽  
Incremental Innovation ◽  
Hierarchical Regression ◽  
Moderating Effects ◽  
Exploration And Exploitation ◽  
Content Type ◽  
Relationship Of ◽  
The Relationship ◽  
Positive Effect

PurposeThe purpose of this paper is to enrich the explanation of the interplay between internal and external – or district shared – exploration and exploitation capabilities as antecedents of a firm’s radical and incremental innovation. Previous studies do not differentiate between exploration and exploitation in district shared capabilities and how they interact with internal capabilities.Design/methodology/approachThe paper uses hierarchical regression analysis to test the quadratic and moderating effects in a sample of 1,019 Spanish firms.FindingsResults show an increasingly positive effect on radical innovation of exploration capabilities, enhanced by shared capabilities in exploration. In the case of incremental innovation, the study finds evidence of an increasingly positive influence of exploitation capabilities and a concave relationship of exploration capabilities. Moreover, shared exploitation capabilities weaken the effect of internal exploitation capabilities and also have a direct effect on incremental innovation. Therefore, the two capabilities are interchangeable in the effect they have on incremental innovation.Practical implicationsDepending on the firm’s innovation strategy, intra-district firms should develop specific capabilities and/or concentrate on adopting the shared capabilities in the destination.Originality/valueThe study furthers the understanding of the relationship between exploration and radical innovation, and between exploitation and incremental innovation, which is more complex than previously depicted. The study also differentiates between exploration and exploitation in shared capabilities, enriching understanding of the competitiveness of district firms.

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.

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.

scholarly journals Managerial Views of Supply Chain Collaboration: An Empirical Study

2009 ◽  
Vol 11 (2) ◽  
pp. 253 ◽  
Author(s):  
Ramaswami Sridharan ◽  
Togar M Simatupang
Keyword(s):  
Supply Chain ◽  
Information Sharing ◽  
Collaborative Practice ◽  
Operational Performance ◽  
Supply Chain Collaboration ◽  
Key Factors ◽  
Incentive Alignment ◽  
Managerial Perceptions ◽  
Survey Results ◽  
The Relationship

  This paper is carried out to empirically examine managerial perceptions on the relationship between supply chain collaboration practice and operational performance. The framework suggests that collaborative practice is characterised by three distinct factors: (1) decision synchronisation, (2) information sharing, and (3) incentive alignment, which enable the chain members to effectively match supply with customer demand. An important question is whether or not collaborative practice leads to better operational performance. A survey research was employed to assess the relationship between collaborative practice and operational performance of New Zealand companies. The survey results show significant positive impacts of key factors of collaborative practice on operational performance. The findings suggest that information sharing, decision synchronisation, and incentive alignment are important determinants of operational performance. This study demonstrates that the chain members need to understand the role of different key factors of collaborative practice that can be redesigned to leverage operational performance.

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