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

Quan Zhu, Harold Krikke, Marjolein C. J. Caniels, Yacan Wang*

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

Purpose - Rare 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/approach - A 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.

Findings - The 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 subgroup model analysis illustrate that both powerful and weak focal firms benefit from SCC, but in different ways.

Originality/value - The 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.
Original languageEnglish
Pages (from-to)488-507
Number of pages20
JournalInternational Journal of Logistics Management
Volume28
Issue number2
DOIs
Publication statusPublished - 8 May 2017

Keywords

  • Supply chain collaboration
  • Partial least squares
  • Moderation effect
  • Sub-group model analysis
  • Twin-objective
  • COMMON METHOD VARIANCE
  • RISK-MANAGEMENT
  • COMPETITIVE ADVANTAGE
  • INFORMATION INTEGRATION
  • MODERATING ROLE
  • FIRM
  • VIEW
  • FIT
  • PERSPECTIVES
  • CAPABILITY

Cite this

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title = "Twin-objective supply chain collaboration to cope with rare but high impact disruptions whilst improving performance",
abstract = "Purpose - Rare 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/approach - A 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.Findings - The 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 subgroup model analysis illustrate that both powerful and weak focal firms benefit from SCC, but in different ways.Originality/value - The 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.",
keywords = "Supply chain collaboration, Partial least squares, Moderation effect, Sub-group model analysis, Twin-objective, COMMON METHOD VARIANCE, RISK-MANAGEMENT, COMPETITIVE ADVANTAGE, INFORMATION INTEGRATION, MODERATING ROLE, FIRM, VIEW, FIT, PERSPECTIVES, CAPABILITY",
author = "Quan Zhu and Harold Krikke and Caniels, {Marjolein C. J.} and Yacan Wang",
year = "2017",
month = "5",
day = "8",
doi = "10.1108/IJLM-02-2016-0028",
language = "English",
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pages = "488--507",
journal = "International Journal of Logistics Management",
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}

Twin-objective supply chain collaboration to cope with rare but high impact disruptions whilst improving performance. / Zhu, Quan; Krikke, Harold; Caniels, Marjolein C. J.; Wang, Yacan.

In: International Journal of Logistics Management, Vol. 28, No. 2, 08.05.2017, p. 488-507.

Research output: Contribution to journalArticleAcademicpeer-review

TY - JOUR

T1 - Twin-objective supply chain collaboration to cope with rare but high impact disruptions whilst improving performance

AU - Zhu, Quan

AU - Krikke, Harold

AU - Caniels, Marjolein C. J.

AU - Wang, Yacan

PY - 2017/5/8

Y1 - 2017/5/8

N2 - Purpose - Rare 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/approach - A 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.Findings - The 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 subgroup model analysis illustrate that both powerful and weak focal firms benefit from SCC, but in different ways.Originality/value - The 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.

AB - Purpose - Rare 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/approach - A 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.Findings - The 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 subgroup model analysis illustrate that both powerful and weak focal firms benefit from SCC, but in different ways.Originality/value - The 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.

KW - Supply chain collaboration

KW - Partial least squares

KW - Moderation effect

KW - Sub-group model analysis

KW - Twin-objective

KW - COMMON METHOD VARIANCE

KW - RISK-MANAGEMENT

KW - COMPETITIVE ADVANTAGE

KW - INFORMATION INTEGRATION

KW - MODERATING ROLE

KW - FIRM

KW - VIEW

KW - FIT

KW - PERSPECTIVES

KW - CAPABILITY

U2 - 10.1108/IJLM-02-2016-0028

DO - 10.1108/IJLM-02-2016-0028

M3 - Article

VL - 28

SP - 488

EP - 507

JO - International Journal of Logistics Management

JF - International Journal of Logistics Management

SN - 0957-4093

IS - 2

ER -