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Twin-objective supply chain collaboration to cope with rare but high impact disruptions whilst improving performance

Twin-objective supply chain collaboration to cope with rare but high impact disruptions whilst... PurposeRare but high impact (R-HI) disruptions, which are caused by legal changes, socio-technical accidents, or natural disasters, are becoming more frequent and have strong short-term and long-term impacts on performance. Meanwhile, the short-term perspective of managers leads to adoption of mitigation strategies with lower investments and immediate performance improvement. The purpose of this paper is to provide insights on supply chain collaboration (SCC) to establish so-called twin-objective strategy to help both risk mitigation (through moderation effects) and performance improvement (through a direct positive impact). Moreover, power position will be considered as the control variable.Design/methodology/approachA cross-sectional approach was adopted with primary data collected through a survey in China. Data were analyzed using structural equation modeling with partial least squares estimations. A sub-group model analysis was applied to test the effect of the control variable.FindingsThe findings verify that SCC has both a direct positive impact on performance and moderation effects on the relationships between sources of R-HI disruptions and performance. The results of sub-group model analysis illustrate that both powerful and weak focal firms benefit from SCC, but in different ways.Originality/valueThe study shows that the allocation of gains from collaborative advantage should be added to the theory-building of relational view. Meanwhile, the research extends the focal firm’s context to its supply chain’s context so that classic contingency theory can be extended to adequately explain supply chain management phenomena. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The International Journal of Logistics Management Emerald Publishing

Twin-objective supply chain collaboration to cope with rare but high impact disruptions whilst improving performance

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References (87)

Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0957-4093
DOI
10.1108/IJLM-02-2016-0028
Publisher site
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Abstract

PurposeRare but high impact (R-HI) disruptions, which are caused by legal changes, socio-technical accidents, or natural disasters, are becoming more frequent and have strong short-term and long-term impacts on performance. Meanwhile, the short-term perspective of managers leads to adoption of mitigation strategies with lower investments and immediate performance improvement. The purpose of this paper is to provide insights on supply chain collaboration (SCC) to establish so-called twin-objective strategy to help both risk mitigation (through moderation effects) and performance improvement (through a direct positive impact). Moreover, power position will be considered as the control variable.Design/methodology/approachA cross-sectional approach was adopted with primary data collected through a survey in China. Data were analyzed using structural equation modeling with partial least squares estimations. A sub-group model analysis was applied to test the effect of the control variable.FindingsThe findings verify that SCC has both a direct positive impact on performance and moderation effects on the relationships between sources of R-HI disruptions and performance. The results of sub-group model analysis illustrate that both powerful and weak focal firms benefit from SCC, but in different ways.Originality/valueThe study shows that the allocation of gains from collaborative advantage should be added to the theory-building of relational view. Meanwhile, the research extends the focal firm’s context to its supply chain’s context so that classic contingency theory can be extended to adequately explain supply chain management phenomena.

Journal

The International Journal of Logistics Management – Emerald Publishing

Published: May 8, 2017

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