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Environmental determinants of VMI adoption: An exploratory analysis

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  • Dong, Yan
  • Xu, Kefeng
  • Dresner, Martin

Abstract

This study empirically examines the determinants of adoption of Vendor Managed Inventory programs that have recently gained popularity in many industries. To achieve this goal, survey scales are adapted and developed for buyer and supplier market competitiveness, product demand, buyer operational uncertainty, and buyer-supplier cooperation. Based on the analysis of responses from purchasing managers in three industries, structural equation modeling results suggest that the competitiveness of the supplier's market and buyer-supplier cooperation are positively associated with VMI adoption, while operational uncertainty for the buyer is negatively associated with VMI adoption. Managerial implications and limitations of the study are also noted.

Suggested Citation

  • Dong, Yan & Xu, Kefeng & Dresner, Martin, 2007. "Environmental determinants of VMI adoption: An exploratory analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 43(4), pages 355-369, July.
    • Handle: RePEc:eee:transe:v:43:y:2007:i:4:p:355-369
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    Citations

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    Cited by:

    1. Rad, Reza Hosseini & Razmi, Jafar & Sangari, Mohamad Sadegh & Ebrahimi, Zahra Fallah, 2014. "Optimizing an integrated vendor-managed inventory system for a single-vendor two-buyer supply chain with determining weighting factor for vendor׳s ordering cost," International Journal of Production Economics, Elsevier, vol. 153(C), pages 295-308.
    2. Wang, Zhiqiang & Wang, Qiang & Lai, Yin & Liang, Chaojie, 2020. "Drivers and outcomes of supply chain finance adoption: An empirical investigation in China," International Journal of Production Economics, Elsevier, vol. 220(C).
    3. Zhang, Tiantian & Zhang, Cherry Yi & Pei, Qifan, 2019. "Misconception of providing supply chain finance: Its stabilising role," International Journal of Production Economics, Elsevier, vol. 213(C), pages 175-184.
    4. Falasca, Mauro & Kros, John F., 2018. "Success factors and performance outcomes of healthcare industrial vending systems: An empirical analysis," Technological Forecasting and Social Change, Elsevier, vol. 126(C), pages 41-52.
    5. Basole, Rahul C. & Nowak, Maciek, 2018. "Assimilation of tracking technology in the supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 114(C), pages 350-370.
    6. Sadeghi, Javad & Mousavi, Seyed Mohsen & Niaki, Seyed Taghi Akhavan & Sadeghi, Saeid, 2014. "Optimizing a bi-objective inventory model of a three-echelon supply chain using a tuned hybrid bat algorithm," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 274-292.
    7. Thokozani Patmond Mbhele, 2014. "Antecedents of Quality Information Sharing in the FMCG Industry," Journal of Economics and Behavioral Studies, AMH International, vol. 6(12), pages 986-1003.
    8. Danese, Pamela & Romano, Pietro & Formentini, Marco, 2013. "The impact of supply chain integration on responsiveness: The moderating effect of using an international supplier network," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 49(1), pages 125-140.
    9. Lixin Shen & Kannan Govindan & Atul B. Borade & Ali Diabat & Devika Kannan, 2013. "An evaluation of vendor managed inventory practices from small and medium indian enterprises," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 14(sup1), pages 76-95, June.
    10. Taleizadeh, Ata Allah & Shokr, Iman & Konstantaras, Ioannis & VafaeiNejad, Mahyar, 2020. "Stock replenishment policies for a vendor-managed inventory in a retailing system," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    11. Abbas Keramati & Rose Taeb & Arad Mousavi Larijani & navid Mojir, 2010. "A combinative model of behavioural and technical factors affecting ‘Mobile’-payment services adoption: an empirical study," The Service Industries Journal, Taylor & Francis Journals, vol. 32(9), pages 1489-1504, October.
    12. Saiful Azam, 2014. "Perceived Environmental Factors And The Intention To Adopt A Standard Business Reporting Facility: A Survey Of Australian Corporate Cfos," Asian Academy of Management Journal of Accounting and Finance (AAMJAF), Penerbit Universiti Sains Malaysia, vol. 10(2), pages 147-173.
    13. Rajesh K. Singh, 2013. "Analyzing the Factors for VMI Implementation: A Framework," Global Business Review, International Management Institute, vol. 14(1), pages 169-186, February.

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