Understanding influence of supply chain collaboration on innovation-based market performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hina Baig ◽  
Waqar Ahmed ◽  
Arsalan Najmi 

Purpose In today’s world, supply chain collaboration becomes an essential source of attaining competitive advantage to make the position in the global market in terms of information, expertise and risk-sharing abilities. Hence the purpose of this study is to highlight the understanding of the value and importance of collaboration in innovation and to strategically implement such steps to achieve supply chain collaboration capabilities. Design/methodology/approach The data of 269 respondents were collected from supply chain professionals belong to the different industrial sectors in Karachi, Pakistan. The data was analyzed by using structural equation modeling. Findings This study finds that supplier collaboration brings radical as well as incremental innovation. In contrast, internal collaboration brings incremental innovation, whereas collaboration with customers has an insignificant impact on incremental innovation. Furthermore, both types of innovations have a positive and significant influence on market performance. Research limitations/implications This study's outcome improves the understanding of the types of innovation enhanced by each construct of collaboration. Supply chain experts or managers are motivated to implement innovation to improve the firm's overall market performance. Originality/value This research will contribute to the literature by sharing the understanding of the relationship among supply chain members as they collaborate for innovation purposes. All supply chains develop a sustainable competitive advantage in market performance.

2018 ◽  
Vol 10 (3) ◽  
pp. 350-370 ◽  
Author(s):  
Erlinda N. Yunus

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.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hasan Uvet ◽  
Hasan Celik ◽  
Sedat Cevikparmak ◽  
Saban Adana

PurposeDespite the significant increase in the adoption of performance-based contracting (PBC) in various industries, the primary value drivers of it are still not clear. Considering a lack of empirical evidence for PBC, this study investigates the effects of collaboration between the suppliers to understand the value offerings created in PBC by empirical findings. The purpose of this paper is to examine how supply chain collaboration (SCC) affects PBC benefits.Design/methodology/approachUsing data from 381 survey participants who hold the title of manager or above, hypotheses are tested using structural equation modeling (SEM).FindingsThe results reveal that a strong and positive relationship between SCC and PBC benefits.Research limitations/implicationsOne of the limitations of this research is the collection of data through the Amazon Mechanical Turk online service. The experience level of participants in PBC and the absence of validation of these scale items by industrial experts are other limitations of this study. Nonetheless, the authors found convincing evidence that SCC has a positive effect on PBC benefits.Practical implicationsThe findings highlight the importance of SCC to increase financial, operational and non-financial benefits of PBC for practitioners. The findings offer guidance for managers aiming to increase PBC benefits through SCC.Originality/valueThis is the first study to empirically examine the impact of SCC for better PBC and contributes to the body of knowledge by providing empirical findings in a PBC context. This research also develops valid and reliable instruments to measure PBC benefits through rigorous empirical and statistical analysis that can be used in future studies.


2016 ◽  
Vol 31 (1) ◽  
pp. 59-69
Author(s):  
Byoung-Chun Ha ◽  
Hyunjeong Nam

Purpose – The purpose of this study is to empirically analyze managers’ ethical judgments in supply chain management. It investigated the influence of those judgments on trust and collaboration in relationships with suppliers. Design/methodology/approach – A scenario-based method was applied to measure managers’ ethical judgments using a sample of 341 data sets collected via survey. Structural equation modeling was utilized to test the proposed hypotheses associating ethical judgments with trust and collaboration in supply chains. Findings – This study illustrates that managers’ ethical judgments in bidding/contracting, information management and inventory management significantly increase trust, which in turn increases supply chain collaboration. Originality/value – The study extends our understanding of ethical judgments in the supply chain management context. Its findings on the causality among ethical judgment, trust and supply chain collaboration provide an effective approach to the management of supplier relationships.


2019 ◽  
Vol 34 (3) ◽  
pp. 591-604 ◽  
Author(s):  
Mai Anh Thi Nguyen ◽  
Hui Lei ◽  
Khoa Dinh Vu ◽  
Phong Ba Le

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.


Author(s):  
Santanu Mandal ◽  
Rathin Sarathy ◽  
Venkateshwar Rao Korasiga ◽  
Sourabh Bhattacharya ◽  
Surajit Ghosh Dastidar

Purpose The purpose of this paper is to investigate the inter-relationship among dominant supply chain capabilities of collaboration, flexibility, velocity and visibility and how the same influence supply chain resilience (SCRES) and supply chain performance. Further, the aim is to explore the relationship between integrated logistics capabilities and supply chain capabilities. Design/methodology/approach The proposed hypotheses were tested with survey data collected from 339 supply chain professionals. The collected data were then analyzed with confirmatory factor analysis, and the proposed relationships were tested with structural equation modeling. Findings Integrated logistics capabilities were found to positively influence supply chain collaboration and supply chain visibility. There is a positive influence of each of collaboration, flexibility, visibility and velocity on SCRES. Further, each of these supply chain capabilities positively influences each other to a greater extent. Further, SCRES was found to have a positive influence on supply chain performance. Research limitations/implications Like many other cross sectional studies, this study also suffers from data collected from single respondent per firm. Originality/value The study is significant and holds immense importance for managers and supply chain practitioners because it has suggested them to focus on core supply chain capabilities, for example, collaboration, flexibility, visibility and visibility for developing SCRES. Along with this, it undersigned the growing importance and empirical influence of integrated logistics capabilities in developing these supply chain capabilities and also the positive influence of resilience on supply chain performance.


2014 ◽  
Vol 34 (6) ◽  
pp. 807-828 ◽  
Author(s):  
Andrew Beheregarai Finger ◽  
Barbara B. Flynn ◽  
Ely Laureanos Paiva

Purpose – The purpose of this paper is to propose and empirically validates a measure of the anticipation of new technologies (ANT) construct, first suggested by Hayes and Wheelwright (1984). ANT allows establishment of a sustained competitive advantage through acquiring new technologies and the capability to use them, in advance of actual need. The theoretical foundation for ANT is developed using the literature on absorptive capacity. Several elements of supply chain management are proposed as antecedents to ANT. Design/methodology/approach – Perceptual survey data from 317 manufacturing plants in ten countries was used to test the hypotheses using structural equation modeling and confirmatory factor analysis. Findings – The key supply chain antecedents of ANT are supply chain planning, internal integration and supplier integration. ANT was related to both operational and cost performance. Research limitations/implications – Potential limitations include the use of an existing database, the plant as the unit of analysis and the need to include customer integration, as well as supplier integration. The results demonstrate the competitive importance of the ANT construct and the key role that relationships with suppliers play in its development. Practical implications – This research sheds new light on a construct whose roots are inherently practical. Suppliers and their extended networks are an important source of external knowledge about technology and future customer needs, thus, supply chain relationships are an important contributor to ANT. Originality/value – Although the role of technology in establishing a competitive advantage has been thoroughly studied, the effectiveness of developing technologies that are expected to be important in the future has not, although this concept was first introduced almost 30 years ago. The authors use absorptive capacity to develop the role of supply chain relationships in building an organization's ANT capability, contributing to the operations strategy literature by grounding a practical construct in the theoretical literature and demonstrating its importance.


Author(s):  
Beth Davis-Sramek ◽  
Konstantin Krotov ◽  
Richard Germain

Purpose – The purpose of this paper is to examine a traditional information technology (IT) integration-performance framework in the transition economy of Russia, which has undergone significant and tumultuous institutional shifts. The research incorporates variables not previously utilized in the supply chain literature but underscore significant roles in the context of the Russian institutional environment to examine the drivers of IT integration. Design/methodology/approach – The Moscow-based, Public Opinion Research Center (VCIOM) was contracted to collect data from Russia manufacturing firms with 100 or more employees, and the effort resulted in 769 responses from Russian private sector firms. This primary survey data were combined with two secondary data sets to test the model using structural equation modeling. Findings – Overall, the results indicate that firms in developed economies must pay special attention to specific contextual nuances in transition economy firms that can affect their ability to successfully navigate this significantly different supply chain environment. Specifically, the results show that spatial distance from Moscow hampers a firm’s ability to integrate its logistics IT capabilities, suggesting that “modern” logistics IT (and possibly supply chain practice in general) initiate from the Moscow core and spread outward. Further, results find that growth in the number of foreign competitors in a firm’s primary industry over the prior five-year period associates with greater integrated logistics IT. It appears that increasing foreign competition creates a sense of urgency for managers within Russian firms to focus on cost reduction and improvements in logistics efficiencies by way of greater IT integration. Originality/value – A significant portion of research related to supply chain management and firm performance takes place in the economically developed West, but there are questions about whether these findings are applicable in transition economies that have a significantly different set of institutional dynamics. This research highlights how the unique contexts in transition economies such as Russia can present challenges for firms as they adapt to the realities of global market dynamics.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Madhavi Kapoor ◽  
Vijita Aggarwal

Purpose This study aims to investigate the relationship among knowledge transfer enablers, knowledge transfer process, absorptive capacity and innovation performance in the context of Indian international joint ventures (IJVs). These elements are woven with the thread of dynamic capabilities theory (DCT) into an integrated framework. Design/methodology/approach Data analysis is conducted on a quantitative survey of 196 IJVs with partial least squares structural equation modeling as the statistical technique. Findings Co-learning strategy, collaborative trust culture, information technology-based resources and systems and organizational structural design are found to be significant knowledge transfer enablers. Absorptive capacity has a complementary partial mediation effect on the positive relationship between knowledge transfer and innovation performance of Indian IJVs. Research limitations/implications The study has pioneered in explicating the criticality of IJV’s internal dynamics to cope with the global market dynamism in a much needed Indian context. Practitioners must focus on building dynamic capabilities in IJVs to make them sustainably competitive, as proposed and evaluated by this study. Further, IJV managers need to strategize their resources, routines and structure dynamically to foster knowledge transfer and innovativeness. Originality/value The comprehensive model on DCT offered by this study is rare to match in literature with a completely new context, which is the need of the hour.


2018 ◽  
Vol 118 (9) ◽  
pp. 1749-1765 ◽  
Author(s):  
Mingu Kang ◽  
Ma Ga (Mark) Yang ◽  
Youngwon Park ◽  
Baofeng Huo

Purpose The purpose of this paper is to examine the role of supply chain integration (SCI) in improving sustainability management practices (SMPs) and performance. Design/methodology/approach Based on data collected from 931 manufacturing firms in multiple countries and regions, the authors conducted a structural equation modeling analysis to test the proposed hypotheses. Findings The findings suggest that supplier and customer integration are vital enablers for both intra- and inter-organizational SMPs. The results also reveal that both intra- and inter-organizational SMPs are significantly and positively associated with sustainability performance (i.e. economic, environmental and social performance) and function as complements to jointly enhance environmental and social performance. Originality/value This study incorporates SCI into the sustainability literature, providing a new perspective on sustainability and supply chain management research.


2005 ◽  
Vol 10 (4) ◽  
pp. 289-301 ◽  
Author(s):  
Cristóbal Sánchez‐Rodríguez ◽  
David Hemsworth ◽  
Ángel R. Martínez‐Lorente

PurposeSupply chain management is an increasingly important organizational concern, and proper management of supplier relationships constitutes one essential element of supply chain success. However, there is little empirical research that has tested the effect of supplier development on performance. The main objective is to analyze the effect of supplier development practices with different levels of implementation complexity on the firm's purchasing performance.Design/methodology/approachThree supplier development constructs were defined: basic supplier development, moderate supplier development, and advanced supplier development. Three structural models were hypothesized and tested using structural equation modeling through field research on a sample of 306 manufacturing companies in Spain.FindingsIdentified important interrelationships among the various supplier development practices, basic, moderate, and advanced. Also indicated that the implementation of supplier development practices significantly contributes to the prediction of purchasing performance.Research limitations/implicationsThe use of a single key informant could be seen as a potential limitation of the study. The study was a cross‐sectional and descriptive sample of the manufacturing industry at a given point in time. A more stringent test of the relationships between the different levels of supplier development and performance requires a longitudinal study, or field experiment.Practical implicationsThis study focused on supplier development practices and revealed how involving suppliers in supplier development activities is important and may help buyers to increase their purchasing performance. The findings from the structural analysis should provide practicing managers with insights on how these practices and their benefits are related in terms of purchasing performance, thus affecting their ability to make better sourcing decisions.Originality/valueFills an important gap in the purchasing literature with respect to the area of supplier development. While there is much written about supplier development based on conceptual and case study research, this study is unique in that it is the first attempt to empirically model the relationships between different levels of supplier development and their impact on purchasing performance using a comprehensive set of practices.


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