The Effect of Trust in Supply Chain on the Firm Performance through Supply Chain Collaboration and Collaborative Advantage

Trust in the supply chain leads to an increase in supply chain collaboration (SCC) and subsequently in collaborative advantage (CA) and consequently affects firm performance positively. Supply chain collaboration is an effective collaboration of supply chain partners to succeed in a common goal. Concisely, the collaborative advantage is the relative competitive advantage among companies. It refers to the gathering, exchanging and improving the resources among the collaborating partners. This research aims to clarify the relationship between trust in the supply chain and firm performance through supply chain collaboration and collaborative advantage. Analysis results show that trust in the supply chain positively affects supply chain collaboration. Although the proposed model suggested a positive relationship between trust in the supply chain and collaborative advantage, according to the hypotheses test results, this relation is not statistically significant. This means that trust in the supply chain has no direct effect on the collaborative advantage, but has an indirect effect through supply chain collaboration on the collaborative advantage. Finally, the positive effect of collaborative advantage on firm performance has been found to be statistically significant.

___

  • Ailawadi, K.L., Farris, P.W., Parry, M.E., Market share, and ROI: observing the effect of unobserved variables. International Journal of Research in Marketing. Vol. 16, No.1, 1999, p. 17–33
  • Akgün A.E., Keskin H., Byrne J.C., Aren S. Emotional and learning capability and their impact on product innovativeness and firm performance. Technovation. Vol. 27, No. 9, 2007, pp. 501-513.
  • Andersen, J., and Narus, J. A. “A Model of Distributor Firm and Manufacturer Firm Working Partnerships.” Journal of Marketing. Vol. 54, 1990, p. 42-58.
  • Anderson, J., and Gerbing, D. Structural Equation Modelling in Practice: A Review and Recommended Two-Step Approach. Psychological Bulletin. 1988
  • Angeles, R., and Nath, R. Partner congruence in electronic data interchange (EDI) enabled relationships. Journal of Business Logistics. Vol. 22, No. 2, 2001,p. 109-127.
  • Ansoff, H. I. (1988). The New Corporate Strategy. Newyork: Wiley.
  • Badea, A., Prostean, G., Goncalves, G., and Allaoui, H. Assessing risk factors in the collaborative supply chain with the analytic hierarchy process (AHP). Social and Behavioural Sciences. Vol. 124, 2014, p. 114-123.
  • Bagchi, P., & Skjoett-Larsen, T. Supply chain integration: a survey. International Journal of Logistics Management, Vol. 16, No.2, 2005, p. 275-294.
  • Bagozzi, R. P., and Yi, Y. Assessing Method Variance in Multitrait-Multimethod Matrices: The Case of Self-reported Affect and Perceptions at Work. Journal of Applied Psychology, vol. 75, No. 1, 1990, p. 547-560.
  • Bowersox, D., Closs, D., and Stank, T. How to master cross-enterprise collaboration. Supply Chain Management Review, Vol. 7, 2003, p. 18-27.
  • Byrne, B. M. Structural Equation Modeling with AMOS. (New York: Routledge Taylor and Francis Group, 2010).
  • Cagliano, R., Caniato, F., and Spina, G. E-business strategy: how companies are shaping their supply chain through the internet. International Journal of Operations and Production Management, Vol. 23, No.10, 2003, p. 1142-1162.
  • Cao, M., & Zhang, Q. Supply chain collaborative advantage: A firm’s perspective. International Journal of Production Economics, Vol. 128, 2010, pp. 358-367.
  • Cao, M., and Zhang, Q. Supply chain collaboration: Impact on the collaborative advantage and firm performance. Journal of Operations Management. Vol. 29, 2011, p. 163-180.
  • Chakraborty, S., Bhattacharya, S., and Dobrzykowski, D. D. Impact of Supply Collaboration on Value Co-creation and Firm Performance: A Healthcase Service Sector Perspective. Procedia Economics and Finance Vol.11, 2014, p. 676-694.
  • Corsten, D., Kumar N. Do Suppliers Benefit from Collaborative Relationships with Large Retailers? An Empirical Investigation of Efficient Consumer Response Adoption. Journal of Marketing: July 2005, Vol. 69, No. 3, 2005, pp. 80-94.
  • Çemberci, M. (2012). Tedarik Zinciri Yönetimi Performansının Göstergeleri ve Firma Performansı Üzerine Etkileri: Kavramsal Model Önerisi. İstanbul: Akademi Titiz Yayınları.
  • Doney, P., & Cannon, J. (1997). An examination of the nature of trust in buyer-seller relationships. Journal of Marketing, 61, 35-61.
  • Duffy, R., Fearne, A., The impact of supply chain partnerships on supplier performance. International Journal of Logistics Management Vol. 15 No.1, 2004, pp.57–71.
  • Dyer, J., and Singh, H. The relational view: Cooperative strategy and sources of inter-organizational competitive advantage. Academy of Management Review. Vol. 23, 1998, p. 660-679.
  • Ellinger A.D., Ellinger, A.E., Yang B., Howton S.W., The relationship between the learning organization concept and firm’s financial performance: an empirical assessment. Human Resource Development Quarterly. Vol. 13, No. 1, 2002, pp. 5-21.
  • Ellinger, A. E., Daugherty, P. J., and Keller, S. B. The Relationship Between Marketing/Logistics Interdepartmental Integration and Performance In U.S. Manufacturing Firms: An Empirical Study. Journal of Business Logistics Vol. 21, 2000, p. 15-16. Fawcett, S. E., Jones, S. L., and Fawcett, A. M. Supply chain rust: the catalyst for collaborative innovation. Business Horizons, Vol. 55, 2012, p. 163-178. Fisher, M.L., What is the right supply chain for your product? Harvard Business Review, Vol. 75, No.2, 1997, pp. 105–116 Fornell, C., and Larcker, D. Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, Vol. 18, No.1, 1981, p. 39-50. Golicic, S., Fogginn, J., and Mentzer, J. Relationship magnitude and its role in inter-organizational relationship structure. Journal of Business Logistics(24), 2003, p. 57-75. Han, S., Wilson, D.T., Dant, S.P., Buyer supplier relationships today. Industrial Marketing Management Vol. 22, No. 4, 1993, p.331–338. Handfield, R. B., and Bechtel, C. The role of trust and relationship structure in improving supply chain responsiveness. Industrial Marketing Management Vol. 31, No.1, 2002, p. 367-382. Hudnurkar, M., Jakhar, S., and Rathod, U. Factors affecting collaboration in the supply chain: A literature Review. Social and Behavioural Sciences, 2014, p. 189-202. Itami, H., and Roehl, T. Mobilizing Invisible Assets. (Cambridge: Harvard University Press, 1987). Jap, S. Pie expansion efforts: collaboration processes in buyer-supplier relationships. Journal of Marketing Research, Vol. 36, No.4, 1999, p. 461-476. Kalwani, M., and Narayandas, N. Long term manufacturer-supplier relationships: do they pay? Journal of Marketing, Vol. 59, No.1, 1995, p. 1-15. Kaufman, A., Wood, C., and Theyel, G. Collaboration and technology linkages: a strategic supplier typology. Strategic Management Journal, Vol. 21, No.6, 2000, p. 649-663. Kumar, Kuldeep, and Han G. Van Dissel. Sustainable Collaboration: Managing Conflict and Cooperation in Interorganizational Systems. MIS Quarterly, vol. 20, no. 3, 1996, pp. 279–300. Kwon, G., Suh, T. Trust, commitment and relationships in supply chain management: a path analysis, Supply Chain Management: An International Journal, Vol. 10, No. 1,2005, pp.26 - 33 Lambert, D. M., Emmelhainz, M. A., and Gardner, J. T. Building Successful Partnerships. Journal of Business Logistics, Vol. 20, No.1, 1999, p. 165-181. Lambert, D.M., Knemeyer, A.M., Gardener, J.T., Supply chain partnerships: model validation and implementation. Journal of Business Logistics Vol. 25 No. 2, 2004, pp.21–42 Lado, A, Boyd, N.G., Hanlon, S.C., Competition cooperation and the search for economic rents: a syncretic model. Academy of Management Review Vol. 22 No.1, 1997, pp. 110- 141. Lee, H., Padmanabdan, V., and Whang, S. The bullwhip effect in the supply chain. Sloan Management Review, Vol. 38, 1997, p. 93-102. Li, S., Ragu-Nathan, B., Ragu-Nathan, T., and Rao, S. The impact of supply chain practices on competitive advantage and organizational performance. Omega vol. 34, 2006, p. 107-124. Liao, S.-H., and Kuo, F.-I. The Study of Relationships Between The Collaboration For Supply Chain, Supply Chain Capabilities And Firm Performance: A Case Of The Taian’S Tft-Lcd İndustry. Int. J. Production Economics, 2014, p. 295-304. Magutua, P. O., Adudab, J., and Nyaogac, R. B. Does Supply Chain Technology Moderate the Relationship between Supply Chain Strategies and Firm Performance? Evidence from LargeScale Manufacturing Firms in Kenya. International Strategic Management Review, Vol. 3, 2015, p.43-65. Mayer, R. C., Davis, J. H., and Schoorman, F. D. An Integrative Model of Organizational Trust. The Academy of Management Review, 1995, p. 709-734. Morgan, R. M., and Hunt, S. D. The commitment-trust theory of relationship marketing. Journal of Marketing, vol. 58, 1994, p. 20-38. Nyaga, G., Whipple, J., and Lynch, D. Examining supply chain relationships: do buyer and supplier perspectives on collaborative relationships differ? Journal of Operations Management, Vol. 28, 2010, p. 101-114. Özalp, Ö., Zheng, Y., and Chen, K.-Y. Trust in Forecast Information Sharing. Management Science, Vol. 57, No. 6, 2011, p. 1111-1137. Patterson, Kirk A. Grimm, Curtis M., M. Corsi. Thomas, Adopting new technologies for supply chain management. Transportation Research, 2003, pp. 95–121. Ring, P., and Ven, A. V. Developmental processes of cooperative inter-organizational relationships. Academic Management Review vol. 19, 1994, p. 90-118. Robert, B., and Handfield, C. B. The role of trust and relationship structure in improving supply chain responsiveness. International Marketing Management, vol. 31, 2002, p. 367-382. Sheu, C., Yen, H., and Chae, D. Determinants of supplier-retailer collaboration: evidence from an international study. International Journal of Operations and Production Management, vol 26, No.1, 2006, p. 24-49. Simatupang, T. M., and Sridharan, R. The Collaborative Supply Chain. The International Journal of Logistics Management, vol. 13,no. 1, 2002, p. 15-30. Simatupang, T. M., and Sridharan, R. The collaboration index: a measure for supply chain collaboration. International Journal of Physical Distribution and Logistics Management, vol 34, no.1, 2004, p. 44-62. Simatupang, T. M., and Sridharan, R. An Integrative Framework for Supply Chain Collaboration. International Journal of Logistics Management vol. 16, 2005, p. 257-274. Stank, T., Keller, S., and Daugherty, P. Supply chain collaboration and logistical service performance. Journal of Business Logistics vol. 22, 2001, p. 29-48. Stuart, F.I., McCutcheon, D. Sustaining strategic supplier alliances. International Journal of Operation and Production Management Vol.16, 1996, pp 5-22. Uzzi, B., Social structure and competition in interfirm networks: the paradox of embeddedness. Administrative Science Quarterly Vol. 42, No. 1,1997, p.35–67 Wua, I. L., Chuangb, C. H., Hsua, C. H., Information sharing and collaborative behaviors in enabling supply chain performance: A social exchange perspective, International Journal of Production Economics, Vol. 148, 2014, pp. 122-132.
Yönetim Bilimleri Dergisi-Cover
  • ISSN: 1304-5318
  • Yayın Aralığı: 4
  • Başlangıç: 2003
  • Yayıncı: Yönetim Bilimleri Dergisi