Relational factors that explain supply chain relationships

Purpose: The purpose of this paper is to gain a better understanding of the types of relationships that exist along the supply chain and the capabilities that are needed to manage them effectively. ---------- Design/methodology/approach: This is exploratory research as there has been little empirical research into this area. Quantitative data were gathered by using a self-administered questionnaire, using the Australian road freight industry as the context. There were 132 usable responses. Inferential and descriptive analysis, including factor analysis, confirmatory factor and regression analysis was used to examine the predictive power of relational factors in inter-firm relationships. ---------- Findings: Three factors were identified as having significant influence on relationships: sharing, power and interdependency. “Sharing” is the willingness of the organisation to share resources with other members of the supply chain. “Power” relates to exercising control based on experience, knowledge and position in the supply chain. “Interdependency” is the relative levels of dependency along the supply chain. ---------- Research limitations/implications: The research only looks at the Australian road freight industry; a wider sample including other industries would help to strengthen the generalisability of the findings. ---------- Practical implications: When these factors are correlated to the types of relationship, arm's length, cooperation, collaboration and alliances, managerial implications can be identified. The more road freight businesses place importance on power, the less they will cooperate. The greater the importance of sharing and interdependency, the greater is the likelihood of arm's length relationships. ---------- Originality/value: This paper makes a contribution by describing empirical work conducted in an under-researched but important area – supply chain relationships in the Australian road freight industry.

Competences and capabilities for innovation in supply chain relationships

There is little empirical research on the relational capabilities and competences in supply chain relationships, and the important links that exist between relational capabilities, competences and supply chain innovation. This study addresses some of that knowledge gap gained through a case study of the Australian freight services sector. Findings suggest that different competences developed by supply chain participants support different ways to enable operational effectiveness. Road freight businesses should acquire knowledge of how to select and manage inter-firm relationships that provide the greatest benefit, acquiring competences that either improve their current capabilities or assist them to explore strategies that ensure incremental innovation and supply chain performance objectives are met.

Assessment framework for construction supply chain relationships: Development and evaluation

The change of supply chain relationships from the traditional adversarial to the collaborative has been increasing in the UK construction industry. To reflect this change, some attempts have been made to establish models for measuring and improving supply chain relationships in construction. However, there are obvious deficiencies in these existing models. This highlights the need for a systematic model for the assessment of construction supply chain relationships. Based on a review of the literature and an expert group discussion, an assessment framework is developed in this paper, which consists of assessment criteria, relationship levels, detailed descriptions, assessment classes and assessment procedures. The proposed framework is evaluated through expert interviews and case studies. This framework provides a roadmap for the improvement of supply chain relationships. It can help construction organisations to position their current relationship and identify key areas for relationship improvement in the future.

Maturity Model for Supply Chain Relationships in Construction

This study explores the special characteristics of the construction industry and develops a maturity model for measuring and improving the relationships between the key players of a construction supply chain. The model adopts the capability maturity methodology and defines four maturity levels of construction supply chain relationships. It is in a matrix format, consisting of 24 assessment criteria in eight categories at each maturity level. It also provides three different ways of using the model. The model is evaluated through a series of expert interviews. A case study is also presented to demonstrate the application of this model in practice.

Managing imbalanced supply chain relationships for sustainability:a power perspective

This study adopts a power perspective to investigate sustainable supply chain relationships and specifically uses resource-dependence theory (RDT) to critically analyze buyer-supplier-supplier relationships. Empirical evidence is provided, extending the RDT model in this context. The concept of power relationships is explored through a qualitative study of a multinational company and agricultural growers in the UK food industry that work together to implement sustainable practices. We look at multiple triadic relationships involving a large buyer and its small suppliers to investigate how relative power affects the implementation of sustainable supply-management practices. The study highlights that power as dependence is relevant to understanding compliance in sustainable supply chains and to identifying appropriate relationship-management strategies to build more sustainable supply chains. We show the influences of power on how players manage their relationships and how it affects organizational responses to the implementation of sustainability initiatives. Power notably influences the sharing of sustainability-related risks and value between supply chain partners. From a managerial perspective, the study contributes to developing a better understanding of how power can become an effective way to achieve sustainability goals. This article offers insights into the way in which a large organization works with small and medium size enterprises to implement sustainable practices and shows how power management-that is, the way in which power is used-can support or hinder effective cooperation around sustainability in the supply chain. © 2014 Decision Sciences Institute.

Ellátási lánc kapcsolatok modellezése = Modeling of supply chain relationships

A dolgozatban az ellátási láncokban meglévő diadikus kapcsolatok minőségét állítjuk a vizsgálatok középpontjába. Az irodalomban számtalan megközelítés ismert az ellátási lánc kapcsolatok fejlődésének leírására. Ezen fejlődési elméletek inkább elméleti szinten írják le a diadikus kapcsolatok változását, annak empirikus tesztelhetőségét nem vizsgálják. Dolgozatunkban kísérletet teszünk az ellátási lánc kapcsolatok fejlődésének empirikus vizsgálatára. Arra próbálunk választ találni, hogy az életciklus hipotézis az üzleti kapcsolatok időbeli fejlődésére alkalmazható-e. = Our paper combines two approaches using data of an internet based questionnaire and applying quantitative analysis it tests the hypothesis business relationship development in time can be described with the concept of life cycle. The concept of life cycle is widely used in business research. Among others the diffusion of innovation is described using this concept, or the concept of product life cycle just to name a few. All of these researches analyze the life cycle along a specific variable (for example the volume of sales or revenue in case of the product life cycle) which (except the last stage of the cycle, the decline) has a cumulative character resulting in the widely known specific shape of a life cycle. Consequently testing a life cycle hypothesis inevitably means the acceptance of some type cumulativity in the development.

The role of relational capabilities in developing the capacity for supply chain innovation

The purpose of this paper is to gain a better understanding of the types of relational capabilities supply chain participants develop to enable ongoing supply chain innovation capacity building that produces improved business outcomes. This is exploratory research using qualitative data gathered by using five interviews, with the Australian road freight industry as the context. Two key relational capabilities and the improvement of four key business outcomes were identified as being present in the interaction of freight transport service providers with members of their supply chain. The data also demonstrates that by entering into competence building relationships with customers and suppliers firms can build capabilities that will increase their capacity for supply chain innovation. Even in short term arm’s length relationships firms can acquire improved skills behaviours and practices that enhance their operation effectiveness and the efficiency of the supply chain relationships.

Strategic supply chain management factors influencing agribusiness innovation utilization

Purpose – The purpose of this paper is to examine empirically, an industry development paradox, using embryonic literature in the area of strategic supply chain management, together with innovation management literature. This study seeks to understand how, forming strategic supply chain relationships, and developing strategic supply chain capability, influences beneficial supply chain outcomes expected from utilizing industry-led innovation, in the form of electronic business solutions using the internet, in the Australian beef industry. Findings should add valuable insights to both academics and practitioners in the fields of supply chain innovation management and strategic supply chain management, and expand knowledge to current literature. Design/methodology/approach – This is a quantitative study comparing innovative and non-innovative supply chain operatives in the Australian beef industry, through factor analysis and structural equation modeling using PAWS Statistical V18 and AMOS V18 to analyze survey data from 412 respondents from the Australian beef supply chain. Findings – Key findings are that both innovative and non-innovative supply chain operators attribute supply chain synchronization as only a minor indicator of strategic supply chain capability, contrary to the literature; and they also indicate strategic supply chain capability has a minor influence in achieving beneficial outcomes from utilizing industry-led innovation. These results suggest a lack of coordination between supply chain operatives in the industry. They also suggest a lack of understanding of the benefits of developing a strategic supply chain management competence, particularly in relation to innovation agendas, and provides valuable insights as to why an industry paradox exists in terms of the level of investment in industry-led innovation, vs the level of corresponding benefit achieved. Research limitations/implications – Results are not generalized due to the single agribusiness industry studied and the single research method employed. However, this provides opportunity for further agribusiness studies in this area and also studies using alternate methods, such as qualitative, in-depth analysis of these factors and their relationships, which may confirm results or produce different results. Further, this study empirically extends existing theoretical contributions and insights into the roles of strategic supply chain management and innovation management in improving supply chain and ultimately industry performance while providing practical insights to supply chain practitioners in this and other similar agribusiness industries. Practical implications – These findings confirm results from a 2007 research (Ketchen et al., 2007) which suggests supply chain practice and teachings need to take a strategic direction in the twenty-first century. To date, competence in supply chain management has built up from functional and process orientations rather than from a strategic perspective. This study confirms that there is a need for more generalists that can integrate with various disciplines, particularly those who can understand and implement strategic supply chain management. Social implications – Possible social implications accrue through the development of responsible government policy in terms of industry supply chains. Strategic supply chain management and supply chain innovation management have impacts to the social fabric of nations through the sustainability of their industries, especially agribusiness industries which deal with food safety and security. If supply chains are now the competitive weapon of nations then funding innovation and managing their supply chain competitiveness in global markets requires a strategic approach from everyone, not just the industry participants. Originality/value – This is original empirical research, seeking to add value to embryonic and important developing literature concerned with adopting a strategic approach to supply chain management. It also seeks to add to existing literature in the area of innovation management, particularly through greater understanding of the implications of nations developing industry-wide, industry-led innovation agendas, and their ramifications to industry supply chains.

A tranzakciós költségek elmélete és a társadalmi csereelmélet hatásai a bizalomra az ellátási láncban (Affects of Transaction cost and Social Exchange Constructs on trust In supply chain relationship)

A szerzők alapvető feltételezése, hogy az ellátási láncban a bizalom ösztönzi a felek közötti elkötelezettséget. Továbbá a bizalom növeli annak a lehetőségét, hogy az ellátási lánc sikeresen működjön. Ugyanakkor, a felek közötti bizalom hiánya gyakran megnöveli a tranzakciós költségeket, és így csökkenti a hatékonyságot. A cikkben bemutatott kutatás adatgyűjtésére több országban – Franciaországban, Magyarországon, Dél-Koreában, Tunéziában és az Egyesült Államokban – került sor. Összesen 729 érvényes kérdőív érkezett vissza, amelyeket a különböző ellátási láncok résztvevői töltöttek ki. A kutatási eredmények szerint az ellátási láncokon belüli üzleti kapcsolatokban a tranzakciós költségek elméletének összetevői (kapcsolatspecifikusság és viselkedési bizonytalanság), valamint a társadalmi csereelmélet tényezői (lecserélhetőség, észlelt megelégedettség, a partner hírneve és észlelt konfliktus) szoros kapcsolatban állnak a bizalom és az elkötelezettség változóival. _____ This article is based on the assumption that trust promotes commitment between partners in the supply chain and improves the chances of return on supply chain success. In contrast, a lack of trust between them often increases transaction costs and results in inefficiency. The results of this research, based on multi-country surveys with 729 returns from France, Hungary, Korea, Tunisia and the United States on supply chain professionals, reveals a strong affect of transaction cost constructs (TCC) (asset specificity and behavioral uncertainty) and social exchange constructs (SEC) (replaceability, perceived satisfaction, partner reputation, and perceived conflict) on trust-commitment variables in partnership based supply chain relationships. This paper employed a structural equation model to extract information from the survey data. Among the findings, the research indicates that a firm’s trustcommitment in dealing with their supply chain partnership is highly associated with not only transaction cost, but more so with social exchange variables. This study may open a new research avenue in that there is another construct, SEC, beside TSC that influences the degree of trust and commitment.

A bizalmat befolyásoló tényezők vizsgálata az üzleti kapcsolatokban (Affects of Transaction cost and Social Exchange Constructs on trust In supply chain relationship)

Az üzleti célú kapcsolatok vizsgálatakor legtöbbször felmerül a bizalom fogalma is, amellyel először a szociálpszichológia és a szociológia foglalkozott. A szerző cikkében azzal foglalkozik, hogy milyen tényezők befolyásolják a bizalmat az üzleti kapcsolatokban. Ezért magyarországi szervezeteket (elsősorban üzleti vállalkozásokat) kérdezett meg kvantitatív módszer alkalmazásával. Ez az empirikus kutatás igyekszik a bizalom lehető legtöbb tényezőit összegyűjteni, ahol a kérdőívben a válaszolók egyik létező – vevői vagy beszállítói – kapcsolatukra gondolva válaszoltak a bizalmon túl a partner hírnevére, az észlelt elégedettségre és konfliktusra, az információcserére, a lecserélhetőségre, valamint a kapcsolatspecifikus beruházásokra vonatkozóan. Az eredmények azt mutatják, hogy egyik változó sem jelent kizárólagos befolyásoló erőt, hanem közösen alakítják ki a bizalom adott szintjét. _______ This article is based on the assumption that trust promotes commitment between partners in the supply chain and improves the chances of return on supply chain success. In contrast, a lack of trust between them often increases transaction costs and results in inefficiency. The results of this research, based on multi-country surveys with 729 returns from France, Hungary, Korea, Tunisia and the United States on supply chain professionals, reveals a strong affect of transaction cost constructs (TCC) (asset specificity and behavioral uncertainty) and social exchange constructs (SEC) (replaceability, perceived satisfaction, partner reputation, and perceived conflict) on trust-commitment variables in partnership based supply chain relationships. This paper employed a structural equation model to extract information from the survey data. Among the findings, the research indicates that a firm’s trustcommitment in dealing with their supply chain partnership is highly associated with not only transaction cost, but more so with social exchange variables. This study may open a new research avenue in that there is another construct, SEC, beside TSC that influences the degree of trust and commitment.