Measuring the effect of supply chain collaborations and market turbulence on performance outcomes

Abstract

Collaboration is increasingly being viewed in the industry as a key to fostering performance and growth especially as the supply chains are becoming complex due to globalization. This research study discusses collaboration as an important supply chain strategy, and provides a framework for performance evaluation of the firm employing collaboration with its supply chain partners. Drawing on the relational view as the basis of collaboration, a COLLABORATION-TURBULENCE conceptual framework is suggested, and hypotheses are developed from the extant literature and tested using sample data collected from firms in India and United States. It was found that the level of supply chain collaboration between supply chain partners has a positive influence on the operational and relational outcomes which leads to a positive influence on the firm performance. In addition, based on behavioral and contingency theories, it was found that market turbulence moderates these relationships, having a positive influence on collaboration-operational outcomes link and a negative influence on collaboration-relational outcomes link. Managers who are confident about the level of collaboration in their supply chain can use this to decide whether to emphasize on operational or relational outcomes in times of market turbulence which will be critical to ensuring success of the firm.