Supply chain planning and trust: two sides of the same coin

Purpose – The purpose of this paper is to analyze the relationship between supply planning, trust and integration, and the influence of them on operational performance. Design/methodology/approach – The paper used a survey with 335 respondents from three different industries. The paper analyzed the data with structural equation modeling. Findings – The results suggest that supply planning and trust are positively related and both influence supply integration and operational performance. At the end the paper proposed a classification for supply integration based on planning use and trust. Research limitations/implications – The sample is composed by companies from only three industries (machinery, electronics and automobile), what does not allow generalization. Practical implications – Managers are challenged to develop simultaneously supply chain planning practices and trust-based relationship within buyers and suppliers. They must pay attention to different integration drivers and use them accordingly an...

[1]  Yi Li,et al.  Effects of suppliers' trust and commitment on customer involvement , 2015, Ind. Manag. Data Syst..

[2]  Martin Rudberg,et al.  Collaborative supply chain planning using electronic marketplaces , 2002 .

[3]  Leo R. Vijayasarathy,et al.  Supply integration: An investigation of its multi-dimensionality and relational antecedents , 2010 .

[4]  John J. Neale,et al.  The practice of supply chain management : where theory and application converge , 2004 .

[5]  Barbara B. Flynn,et al.  An exploratory study of the nature of cumulative capabilities , 2004 .

[6]  Ik-Whan G. Kwon,et al.  Factors Affecting the Level of Trust and Commitment in Supply Chain Relationships , 2004 .

[7]  R. Narasimhan,et al.  Managing beyond the factory walls: Effects of four types of strategic integration on manufacturing plant performance , 2007 .

[8]  Riikka Kaipia,et al.  Effects of delivery speed on supply chain planning , 2008 .

[9]  Stephan M. Wagner,et al.  EFFECTS OF SUPPLIERS' REPUTATION ON THE FUTURE OF BUYER-SUPPLIER RELATIONSHIPS: THE MEDIATING ROLES OF OUTCOME FAIRNESS AND TRUST , 2011 .

[10]  A. Roth,et al.  The effect of an ambidextrous supply chain strategy on combinative competitive capabilities and business performance , 2010 .

[11]  Roger G. Schroeder,et al.  High performance manufacturing : global perspectives , 2001 .

[12]  J. Hair Multivariate data analysis , 1972 .

[13]  J. Mentzer,et al.  Handbook of Global Supply Chain Management , 2006 .

[14]  M. Brannen,et al.  Positioning JIBS as an interdisciplinary journal , 2011 .

[15]  Kenneth K. Boyer,et al.  COMPETITIVE PRIORITIES: INVESTIGATING THE NEED FOR TRADE‐OFFS IN OPERATIONS STRATEGY , 2002 .

[16]  M. Cao,et al.  Supply chain collaboration: Impact on collaborative advantage and firm performance , 2011 .

[17]  C. Yeh,et al.  Trust and knowledge sharing in green supply chains , 2008 .

[18]  Carlos Ghosn Saving the Business Without Losing the Company , 2002 .

[19]  Jeffrey H. Dyer,et al.  The determinants of trust in supplier–automaker relationships in the US, Japan, and Korea , 2000 .

[20]  Peter Schütz,et al.  The impact of flexibility on operational supply chain planning , 2011 .

[21]  Joseph P. Cannon,et al.  Building long-term orientation in buyer–supplier relationships: The moderating role of culture , 2010 .

[22]  Ching Chyi Lee,et al.  Strategic information sharing in a supply chain , 2006, Eur. J. Oper. Res..

[23]  A. Yeung Strategic supply management, quality initiatives, and organizational performance , 2008 .

[24]  S. Kim An investigation on the direct and indirect effect of supply chain integration on firm performance , 2009 .

[25]  Patrik Jonsson,et al.  Applying advanced planning systems for supply chain planning: Three case studies , 2007 .

[26]  W. C. Benton,et al.  Purchasing and Supply Chain Management , 2010 .

[27]  J. H. Dyer,et al.  Creating and managing a high‐performance knowledge‐sharing network: the Toyota case , 2000 .

[28]  Jeffrey H. Dyer Specialized supplier networks as a source of competitive advantage : Evidence from the auto industry , 1996 .

[29]  A. Vereecke,et al.  Performance improvement through supply chain collaboration in Europe , 2006 .

[30]  T. Vallet-Bellmunt,et al.  Integration: attitudes, patterns and practices , 2013 .

[31]  X. Koufteros Testing a model of pull production: a paradigm for manufacturing research using structural equation modeling , 1999 .

[32]  Madhav V. Rajan,et al.  The Role of Information and Opportunism in the Choice of Buyer‐Supplier Relationships , 2002 .

[33]  Hartmut Stadtler,et al.  Supply chain management and advanced planning--basics, overview and challenges , 2005, Eur. J. Oper. Res..

[34]  Terry L. Esper,et al.  Supply Chain Management Strategy , 2010 .

[35]  Kenn Steger-Jensen,et al.  Buyer–supplier relationships and planning solutions , 2007 .

[36]  Bart Nooteboom,et al.  Trust: Forms, Foundations, Functions, Failures and Figures , 2003 .

[37]  Nagesh N. Murthy,et al.  Achieving supply chain agility through IT integration and flexibility , 2008 .

[38]  W. C. Benton,et al.  Supplier evaluations: communication strategies to improve supplier performance , 2004 .

[39]  J. Sheth,et al.  E-Services — A Framework for Growth , 2007 .

[40]  O. Williamson,et al.  The mechanisms of governance , 1996 .

[41]  Mikihisa Nakano Collaborative forecasting and planning in supply chains , 2009 .

[42]  Jeffrey H. Dyer,et al.  The determinants of trust in supplier–automaker relations in the US, Japan, and Korea: A retrospective , 2011 .

[43]  Adam Lindgreen,et al.  Trust as a valuable strategic variable in the food industry: different types of trust and their implementation , 2003 .

[44]  Yavuz Acar,et al.  A decision support framework for global supply chain modelling: an assessment of the impact of demand, supply and lead-time uncertainties on performance , 2010 .

[45]  Mari Sako,et al.  Supplier Relations in Japan and the United States , 1995 .

[46]  M. Sodhi How to Do Strategic Supply-Chain Planning , 2006 .

[47]  David F. Pyke,et al.  Sourcing Strategy and Supplier Relationships : Alliances vs . eProcurement April 8 , 2002 , 2002 .

[48]  Jan Olhager,et al.  Supply chain integration and performance: The effects of long-term relationships, information technology and sharing, and logistics integration , 2012 .

[49]  Barbara B. Flynn,et al.  The impact of supply chain integration on performance: A contingency and configuration approach , 2010 .

[50]  A. Michael Knemeyer,et al.  SUPPLY CHAIN PARTNERSHIPS: MODEL VALIDATION AND IMPLEMENTATION , 2004 .

[51]  Shoshanah Cohen,et al.  Strategic supply chain management : the five disciplines for top performance , 2005 .

[52]  S. Fawcett,et al.  The moderating role of barriers on the relationship between drivers to supply chain integration and firm performance , 2009 .

[53]  Justin W. Webb,et al.  A multi‐theoretic perspective on trust and power in strategic supply chains , 2007 .

[54]  Martin Rudberg,et al.  Centralised supply chain master planning employing advanced planning systems , 2009 .

[55]  Elie Ofek,et al.  Manufacturer Benefits from Information Integration with Retail Customers , 2004, Manag. Sci..

[56]  Donald J. Bowersox,et al.  Supply Chain Logistics Management , 2002 .

[57]  Vineet Padmanabhan,et al.  Comments on "Information Distortion in a Supply Chain: The Bullwhip Effect" , 1997, Manag. Sci..

[58]  Daniel F. Lynch,et al.  Examining supply chain relationships: Do buyer and supplier perspectives on collaborative relationships differ? , 2010 .

[59]  Rogelio Oliva,et al.  Cross-functional alignment in supply chain planning: A case study of sales and operations planning , 2011 .

[60]  Steven Wright Manufacturing strategy: Defining the missing link , 1984 .

[61]  Henk Akkermans,et al.  Travail, transparency and trust: A case study of computer-supported collaborative supply chain planning in high-tech electronics , 2004, Eur. J. Oper. Res..

[62]  Ton G. de Kok,et al.  Philips Electronics Synchronizes Its Supply Chain to End the Bullwhip Effect , 2005, Interfaces.

[63]  J. H. Davis,et al.  An Integrative Model Of Organizational Trust , 1995 .

[64]  Douglas M. Lambert,et al.  Supply Chain Management: Processes, Partnerships, Performance , 2004 .

[65]  T. S. Lee,et al.  Pooling Data Across Transparently Different Groups of Key Informants: Measurement Equivalence and Survey Research , 2008, Decis. Sci..