Do the Causal Effects of Internal Collaboration and External Collaboration Improve Performance in Supply Chains?

Abstract

There are three aims of this research. One is to verify the mutual effects between internal collaboration and external collaboration, another is to prove performance improvement among different levels of supply chain collaboration, and the third is to analyze gaps between the two viewpoints. The population is Korean FDI firms in China and 208 data are used in the analysis. The data are treated with various methods: exploratory and confirmatory factor analyses, SEM, cluster analysis, ANOVA, MANOVA and post hoc analysis. The results are as follows. First, external collaboration and internal collaboration have positive effects on each other, which have a positive effect on performance. This means that efficiency of internal processes is the cause of promoting connection with external processes and information generated from the market is the basis of a variance of internal processes, followed by high performance. Second, service performance improvement is more definite than cost performance improvement among different levels of supply chain collaboration. Firms can achieve more definite results in service performance when they perform supply chain collaboration. Third, this research verifies both the viewpoint of directions of supply chain collaboration and the strategic choice viewpoint of supply chain collaboration to better understand supply chain collaboration. Both viewpoints approach supply chain collaboration from different viewpoints but they do explain the methods for performance improvement.