Organizational Alignment and Supply Chain Governance Structure: Introduction and Construct Validation

Purpose – The purpose of this paper is to introduce and validate two new constructs with the potential to sharpen our understanding of how and why firms integrate their internal supply chains and assess the governance structure of their supply chains. The first construct, organizational alignment (OA), is a reflective scale measuring the extent to which upper management attempts to foster integration between internal supply chain functions. The second, supply chain governance structure (SCGS), is a formative index, and is a first attempt at developing a measurement instrument to assess SCGS along multiple dimensions. Design/methodology/approach – Following a literature review, measures of OA and SCGS are conceptualized. These instruments are used to collect data, after which they are refined and validated through parallel scale development (OA) and index construction (SCGS) processes. Findings – OA shows acceptable content and construct validity, and SCGS shows acceptable results for content and item specification, as well as multicollinearity. Practical implications – OA and SCGS may provide some insight into how to promote better internal supply chain integration within the firm, and may allow for an assessment of the governance structure of the firm\u27s supply chain. In different industries and at different times, this knowledge may prove useful in supply chain design and supply base optimization decisions. Originality/value – These scales have considerable applicability in logistics and supply chain management research. Together, they represent initial attempts to assess upper management influence on internal supply chain alignment (OA), and to assess the governance structure of a firm\u27s supply chain

Using grounded theory for theory building in operations management research:a study on inter-firm relationship governance

Purpose – Qualitative theory building approaches, such as grounded theory method (GTM), are still not very widespread and rigorously applied in operations management (OM) research. Yet it is agreed that more systematic observation of current industrial phenomena is necessary to help managers deal with their problems. The purpose of this paper is to provide an example to help guide other researchers on using GTM for theory building in OM research. Design/methodology/approach – A GTM study in the German automotive industry consisting of 31 interviews is followed by a validation stage comprising a survey (110 responses) and a focus group. Findings – The result is an example of conducting GTM research in OM, illustrated by the development of the novel collaborative enterprise governance framework for inter-firm relationship governance in the German automotive industry. Research limitations/implications – GTM is appropriate for qualitative theory building research, but the resultant theories need further testing. Research is necessary to identify the transferability of the collaborative enterprise governance concept to other industries than automotive, to other organisational areas than R&D and to product and service settings that are less complex and innovative. Practical implications – The paper helps researchers make more informed use of GTM when engaging in qualitative theory building research in OM. Originality/value – There is a lack of explicit and well-informed use of GTM in OM research because of poor understanding. This paper addresses this deficiency. The collaborative enterprise governance framework is a significant contribution in an area of growing importance within OM

Building trust in agribusiness supply chains: A conceptual model of buyer-seller relationships in the seed potato industry in Asia

In the absence of a certified seed system, potato farmers in Asia must purchase replacement seed tubers from an informal seed system. With no third party assurance that the seed tubers purchased are of good quality, the farmer's decision to purchase seeds may be influenced by the long-standing relationships that have been established between buyers and sellers. Trust is the critical determinant of a good buyer-seller relationship. Through maintaining communication and the making of various relationship specific investments, a conceptual model is proposed which suggests that seed suppliers may engage in trust building behavior which should result in the preferred seed supplier enjoying a greater share of the farmer's patronage

Motivations Behind Sustainable Purchasing

Sustainability issues in purchasing are receiving greater attention. Literature is rapidly growing, with several research programs being initiated to investigate the topic. This study presents the results of a research project which aims to reveal and structure the motivating forces leading companies to make efforts in sustainability purchasing and the means used to attain achievements in some fields of sustainability. Results presented in the literature are scattered in terms of the fields of sustainability: most of the studies focus only on green or corporate social responsibility issues and there is a lack of exploratory models. Sustainability in purchasing is addressed in a comprehensive way including green, social responsibility and corporate growth issues. After presenting the results of a literature review, theoretical development was undertaken to create a framework in which it is possible to describe the means of sustainability applied and the motivating forces behind them. This framework serves as the basis for an empirical investigation among Hungarian companies. Empirical results confirm the usefulness of the theoretical framework: the number and the characteristics of sustainability activities were determined by the particular types of motivation – to avoid negative effects, to achieve compliance with expectations and to attain positive effects

Contracting outsourced services with collaborative key performance indicators

While service outsourcing may benefit from the application of performance‐based contracts (PBCs), the implementation of such contracts is usually challenging. Service performance is often not only dependent on supplier effort but also on the behavior of the buying firm. Existing research on performance‐based contracting provides very limited understanding on how this challenge may be overcome. This article describes a design science research project that develops a novel approach to buyer–supplier contracting, using collaborative key performance indicators (KPIs). Collaborative KPIs evaluate and reward not only the supplier contribution to customer performance but also the customer's behavior to enable this. In this way, performance‐based contracting can also be applied to settings where supplier and customer activities are interdependent, while traditional contracting theories suggest that output controls are not effective under such conditions. In the collaborative KPI contracting process, indicators measure both supplier and customer (buying firm) performance and promote collaboration by being defined through a collaborative process and by focusing on end‐of‐process indicators. The article discusses the original case setting of a telecommunication service provider experiencing critical problems in outsourcing IT services. The initial intervention implementing this contracting approach produced substantial improvements, both in performance and in the relationship between buyer and supplier. Subsequently, the approach was tested and evaluated in two other settings, resulting in a set of actionable propositions on the efficacy of collaborative KPI contracting. Our study demonstrates how defining, monitoring, and incentivizing the performance of specific processes at the buying firm can help alleviate the limitations of traditional performance‐based contracting when the supplier's liability for service performance is difficult to verify

Processes and integration in the interaction of purchasing and marketing: considering synergy and symbiosis

Effective integration of both purchasing and marketing functions is central to effective value creation and alignment of an organization with its business environment. Rapidly changing environments create gaps in the value creation process that compromises the delivery of value to the customer and risk misalignment of value propositions to their needs. Despite the clear imperative for research in this area, the extant literature is partial and delivers limited coherence. Ours is a theoretical article that—in drawing on previous literature—introduces the new work collected in this special issue and considers this against our own empirical evidence. We present a framework that maps out the landscape of internal organizational integration with a particular emphasis on purchasing and marketing integration. Implications for theory and managers are explored