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Performance Improvement Through Supply Chain Collaboration: Conventional Wisdom Versus Empirical Findings

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  • A. VEREECKE
  • S. MUYLLE

Abstract

Supply chain collaboration is claimed to yield significant improvements in multiple performance areas: it is believed to reduce costs, to increase quality, to improve delivery, to augment flexibility, to cut procurement cost and lead time, and to stimulate innovativeness. Yet empirical support for the relationship between supply chain collaboration and performance improvement is scarce. Our research adds to this emerging stream of research by providing empirical evidence from the engineering/assembly industries, based on data collected through the International Manufacturing Strategy Survey (IMSS) in Europe. The study reveals that supply chain collaboration is no guarantee for success: performance improvement is only weakly related to the extent of collaboration with customers or suppliers. However, strong improvers in multiple performance areas are found to be heavily engaged in collaboration projects with customers and suppliers, through extensive information exchange and higher levels of structural coordination.

Suggested Citation

  • A. Vereecke & S. Muylle, 2005. "Performance Improvement Through Supply Chain Collaboration: Conventional Wisdom Versus Empirical Findings," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 05/291, Ghent University, Faculty of Economics and Business Administration.
    • Handle: RePEc:rug:rugwps:05/291
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    File URL: http://wps-feb.ugent.be/Papers/wp_05_291.pdf
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    1. David Boddy & Douglas Macbeth & Beverly Wagner, 2000. "Implementing Collaboration Between Organizations: An Empirical Study Of Supply Chain Partnering," Journal of Management Studies, Wiley Blackwell, vol. 37(7), pages 1003-1018, November.
    2. Theodore H. Clark & Janice H. Hammond, 1997. "Reengineering Channel Reordering Processes To Improve Total Supply‐Chain Performance," Production and Operations Management, Production and Operations Management Society, vol. 6(3), pages 248-265, September.
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    Cited by:

    1. Watabaji, Mulugeta D. & Molnar, Adrienn & Dora, Manoj K. & Gellynck, Xavier, 2016. "The influence of value chain integration on performance: an empirical study of the malt barley value chain in Ethiopia," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(4), August.

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    Keywords

    supply chain management; collaboration; performance improvement;
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