Mapping the Critical Links between Supply Chain Evaluation System and Supply Chain Integration Sustainability: An Empirical Study

Mapping the Critical Links between Supply Chain Evaluation System and Supply Chain Integration Sustainability: An Empirical Study

Abirami Radhakrishnan (Morgan State University, USA), Dessa David (Morgan State University, USA), Douglas Hales (The University of Rhode Island, USA) and V. Sri Sridharan (Clemson University, USA)
Copyright: © 2013 |Pages: 24
DOI: 10.4018/978-1-4666-2473-3.ch018
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Abstract

Supply Chain Integration is widely advocated as an important factor to attain superior supply chain performance. While firms are able to achieve integration, they find it hard to sustain integration. In this paper, the authors argue that to sustain integration partner firms must establish a formal system to evaluate supply chain-wide performance. The authors draw on theories from a number of management disciplines to map the critical links between supply chain evaluation capability and supply chain integration sustainability. The authors develop and test the research model by conducting an empirical study involving 102 firms. The results of the study show that supply chains can sustain integration by establishing a supply chain wide evaluation system.
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Literature Review

The literature suggests that superior business performance is achieved through competitive advantage by developing business capabilities that provide value-added activities to end-users in unique ways or at lower prices than competitors (Porter, 1991). Providing value-added activities in unique and low-cost ways require anticipating customer demand and responding to changes in the demand faster than competitors (Stalk et al., 1992). Independent firms can leverage each others’ capabilities to achieve competitive advantage for the entire supply chain. The literature refers to the leverage of capabilities in a supply chain as an outcome of SCI (Geoffrion & Powers, 1995).

To explain how companies create capabilities, the Resource-Based View (RBV) theory says that firms must invest resources in improving business processes (Stank et al., 2005). These include, but are not limited to, customer focus, time management, integration, information exchange, demand management, new product development, and evaluation capabilities.

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