Abstract

Third-party logistics (3PL) user-provider integration is attracting increasing attention from both academics and practitioners. However, it remains unclear how best to adopt governance mechanisms to safeguard 3PL user-provider integration (e.g., information sharing and process coordination). Based on transaction cost economics and social exchange theory, this study examined the individual and joint effects of contractual (e.g., detailed contracts and contract application) and relational governance (e.g., trust and relational norms) on 3PL user-provider integration for operational performance. We conducted a survey involving 247 3PL service users and analyzed the conceptual model using the method of structural equation modeling. The results showed that process coordination improved operational performance, while information sharing alone did not significantly improve operational performance but complemented the role of process coordination in improving operational performance. In addition, having detailed contracts was positively related to process coordination, while contract application was positively related to information sharing. Trust was not significantly related to information sharing or process coordination, while relational norms were positively related to both. Finally, three joint effects on 3PL user-provider integration were found. Two of them were substitutional (detailed contracts and relational norms; contract application and trust), and one was complementary (detailed contracts and trust). This study makes several theoretical contributions and provides novel guidelines for 3PL relationship development.

Keyword

3PL user-provider integration ;  China ;  complementary ;  contractual governance ;  relational governance ;  substitutional relationship

Abstract

Supply chain quality management has received increasing attention from researchers and practitioners in recent years. However, the knowledge about the effects of a manufacturer's design and production capabilities on supply chain quality management is limited. In this study, we propose a model to investigate the effects of mass customization and product modularity on supply chain quality integration (i.e. internal, supplier, and customer quality integration) and the impact of supply chain quality integration on competitive performance. We use data collected from 317 global manufacturers to empirically test the conceptual model. The results show that mass customization and product modularity directly improve internal quality integration, and product modularity also improves internal quality integration indirectly through mass customization. Product modularity improves supplier quality integration directly, and both mass customization and product modularity improve supplier quality integration indirectly through internal quality integration. Mass customization improves customer quality integration both directly and indirectly through internal quality integration, and product modularity improves customer quality integration indirectly through mass customization and internal quality integration. We also find that supplier quality integration directly enhances competitive performance, and internal quality integration enhances competitive performance both directly and indirectly through supplier quality integration. Our findings contribute to production and quality management literature and practices.

Keyword

Competitive performance ;  Mass customization ;  Product modularity ;  Supply chain quality integration

Abstract

Purpose-The purpose of this paper is to explore the effects that customer structured and unstructured information sharing (IS) can have on customer operational and strategic coordination and on supply chain performance (SCP). In addition, the study examines how customer IS influences customer coordination under various levels of demand uncertainty (DU). Design/methodology/approach-The conceptual model for this study is designed on the basis of information-processing theory (IPT). Using data collected from 622 manufacturers in mainland China and Taiwan, the theoretical model is tested using the structural equation modeling method. Findings-The authors find that both customer structured IS and unstructured IS are positively associated with customer strategic coordination. Customer structured IS increases customer operational coordination, but customer unstructured IS does not. DU positively moderates the relations between customer unstructured IS and strategic coordination, and between customer structured IS and operational coordination. Also, DU negatively moderates the relationship between customer structured IS and strategic coordination. Customer strategic coordination is positively related to SCP and to operational coordination. Customer operational coordination has no significant impact on SCP. Originality/value-This study deepens our understanding of customer IS by distinguishing between customer structured and unstructured IS. The study also provides a greater understanding of customer coordination by making a distinction between the customer strategic and the operational coordination. The findings extend the empirical application of IPT. In addition, this study's findings direct SC managers to apply varied customer IS practices that can enhance specific kinds of customer coordination activities, thereby enabling improved SCP.

Keyword

Customer coordination ;  Customer information sharing ;  Demand uncertainty ;  Supply chain performance

Abstract

Purpose-Following resource-based view, the purpose of this paper is to investigate the effects of three intra-organizational structural elements on supply chain integration (SCI). Design/methodology/approach-Based on data collected from ten countries, this study employs the structural equation modeling method to test the proposed model. Findings-The results demonstrate that teamwork culture is positively related to three dimensions of SCI. Organizational commitment has positive effects on internal and customer integration (CI), whereas it has no significant effect on supplier integration (SI). Human goodness is only positively related to internal integration, but has no significant effect on SI or CI. Originality/value-This study contributes to both structural elements literature and SCI enabler literature by operationalizing three human-related components of structural elements and empirically investigating relationships between intra-organizational structural elements and SCI.

Keyword

Abstract

Purpose The purpose of this study is to explore the effect of backward supply chain information sharing (SCIS) on the performance of different parties along supply chains. Design/methodology/approach Using data collected from 617 Chinese manufacturers, this study examines the effect of information sharing from manufacturers to suppliers (ISMS) on supplier and manufacturer responsiveness in both two- and three-tier supply chains and the transferrable effect of information sharing from customers to manufacturers (ISCM) on supplier responsiveness. The authors use structural equation modeling and regression analysis to estimate the proposed relationships. Findings ISMS is positively related to supplier responsiveness in both two- and three-tier SCIS, whereas its effect on manufacturer responsiveness is conditional, indicating that upstream receiving parties benefit more from backward SCIS. ISCM is positively related to supplier responsiveness, demonstrating the transferable effect of backward SCIS. Originality/value This study provides deep insights into the distribution of the benefits from SCIS among supply chain partners and suggests that the direction and the role supply chain partners play (as receiving or disclosing parties) in SCIS matter.

Keyword

Information systems ;  Structural equation modelling ;  Supply chain management ;  Quick response; Supply chain ;  Information sharing ;  Responsiveness

Abstract

Service provider opportunism is a serious concern in third party logistics (3PL) relationships. However, our knowledge about antecedents of 3PL providers' opportunism is limited. According to transaction cost economics (TCE), increased transaction costs give rise to opportunism. This study incorporates key constructs (i.e., environmental uncertainty, specific asset, and opportunism) from TCE and conducts a transaction cost analysis. We argue that environmental uncertainty and specific asset create exchange hazards that result in opportunism. Meanwhile, specific asset reduces coordination costs raised by environmental uncertainty. Building on the arguments, this study tests a model, which hypothesizes that environmental uncertainty (demand, supply, and technology uncertainty), and specific asset (user and supplier specific asset) are positively related to opportunism, and that environmental uncertainty is positively related to specific asset. Structural equation modeling is used to examine data from 247 3PL relationships from China. The results show that demand uncertainty decreases opportunism, supply uncertainty increases opportunism, and technology uncertainty does not have a significant effect. User specific asset increases opportunism, while provider specific asset decreases opportunism. Demand and supply uncertainty have positive effects on user specific asset, but non-significant effects on provider user asset, while technology uncertainty does not have a significant impact on user or provider specific asset. In general, our findings are supported by the rationale of TCE and some surprising findings may be explained by industrial or cultural distinctions. This study contributes to 3PL literature and practices.

Keyword

3PL ;  Environmental uncertainty ;  Specific asset; Opportunism ;  Transaction cost economics

Abstract

This study investigates relationships among various types of supply chain coordination, innovativeness, and financial performance. Social contagion theory is mainly used to construct a research framework. Two underlining contagion mechanisms, cohesion and structural equivalence, were identified for various supply chain relationships. Data was collected from 617 Chinese manufacturers and employed to test the theoretical model. The results show that supplier coordination positively influences manufacturer, customer coordination, and supplier innovativeness. Manufacturer coordination promotes customer coordination and manufacturer innovativeness. Supplier innovativeness directly improves manufacturer innovativeness and indirectly enhances financial performance through manufacturer innovativeness. Customer coordination and manufacturer innovativeness positively influence financial performance. This study contributes significantly to theories and practices of supply chain coordination.

Keyword

Financial performance ;  Innovativeness ;  Supply chain coordination

Abstract

Service provider opportunism is a serious concern in third party logistics (3PL) relationships. However, our knowledge about the antecedents of 3PL providers' opportunism is limited. According to transaction cost economics (TCE), increased transaction costs cause opportunism. This study incorporates key TCE constructs (environmental uncertainty, specific assets, and opportunism) and conducts a transaction cost analysis. We argue that environmental uncertainty and specific assets create exchange hazards that result in opportunism. Meanwhile, specific assets reduce coordination costs raised by environmental uncertainty. Building on these arguments, this study tests a model that hypothesizes that environmental uncertainty (demand, supply, and technology uncertainty), and specific assets (user and provider-specific assets) are positively related to opportunism, and that environmental uncertainty is positively related to specific assets. Structural equation modeling is used to examine data from 247 3PL relationships in China. The results show that demand uncertainty decreases opportunism, supply uncertainty increases opportunism, and technology uncertainty does not have a significant effect. User-specific assets increase opportunism, while provider specific assets decrease opportunism. Demand and supply uncertainty have positive effects on user-specific assets, but non-significant effects on provider-specific assets, while technology uncertainty does not have a significant impact on user or provider-specific assets. In general, our findings are supported by the rationale of TCE, and industrial or cultural factors can explain several surprising findings. This study contributes to 3PL literature and practice.

Keyword

3PL ;  Environmental uncertainty ;  Opportunism ;  Specific assets ;  Transaction cost economics

Abstract

To lay the foundation for the study of supply chain power, we study power configurations at the level of interlocking power dyads (IPDs), viewing the simultaneous effect of upstream and downstream power. We build on four key constructs: dependence asymmetry (resource dependence theory), joint dependence (embeddedness perspective), power type differential (based on French & Raven, 1959), and power source asymmetry. We examine the research question of what the relationship is between IPDs and the focal firm's operational performance, developing hypotheses based on the dependence asymmetry, joint dependence, power type differential, and power source asymmetry of theoretical IPDs. A survey of over 600 respondents in China was used to collect data on focal firm perceptions of upstream and downstream power, with cluster analysis yielding eight IPDs. Inferential analysis revealed the importance of joint dependence, dependence asymmetry, power type differential, and power source asymmetry to the operational performance of the focal firm.

Keyword

global purchasing ;  international ;  performance ;  power asymmetry ;  resource dependence theory ;  supplier management

Abstract

Purpose The purpose of this paper is to investigate effects of two integrative mechanisms of third-party logistics (3PL) integration (i.e. information sharing and process coordination) between users and providers on relationship satisfaction, and further explores how partnership-surrounding (e.g. legal unprotectability) and partnership-specific barriers (e.g. measurement difficulty and cooperation difficulty) influence 3PL integration in the context of Chinese 3PL practices. Design/methodology/approach Using data collected from 247 3PL users in China, this study uses the structural equation modeling method to empirically examine the relationship among partnership-surrounding/specific barriers, 3PL integration and relationship satisfaction. Findings The results show that information sharing has no significant effect on relationship satisfaction, while process coordination has a positive effect on relationship satisfaction and partially mediates the relationship between information sharing and relationship satisfaction. Furthermore, as partnership-specific barrier, measurement difficulty and cooperation difficulty are negatively related to information sharing and process coordination. Surprisingly, as partnership-surrounding barrier, legal unprotectability is not significantly related to information sharing but is positively related to process coordination. Originality/value As a comprehensive study on 3PL user-provider relationship in China, this study extends existing 3PL literature by providing evidence about the importance of 3PL integration and different types of barriers to 3PL integration, also providing managerial implications for 3PL users, providers, law and regulation makers about how to better implement 3PL integration in China.

Keyword

China ;  3PL integration ;  Partnership-specific barrier ;  Partnership-surrounding barrier ;  Relationship satisfaction