Performance management process integration in retail supply chains

Abstract

Purpose – The purpose of this paper is to explore and generate propositions of factors that affect the degree of performance management process integration in retail supply chains. Design/methodology/approach – The performance management processes of two retail supply chains were explored and their degree of process integration was classified. Differences in the degree of performance management process integration and affecting factors lead to the generation of five propositions. Findings – Dependence, brand importance, business process integration, performance demand and the existence of a performance management standard seem to be positively related to the degree of performance management process integration in the relation. Both factors that affect process integration in general and performance management process integration specifically are included. Some insights on integration in a vertically integrated retail chain were provided. Research limitations/implications – This study has specified the knowledge in process integration to the performance management process and expanded it into a retail context. It has generated a number of propositions on factors that affect the degree of performance management process integration, including a factor that was not found in previous research on manufacturing supply chains. The contribution to process integration theory is however limited until the propositions are validated in a broader study. Practical implications – Knowledge in affecting factors is useful when “performance management managers” need to communicate integration ambitions with other managers within and outside their own company. The detailed descriptions of performance management processes and integration practices can serve as inspiring benchmarks, as in the daily groceries supply chain, where the industry standard is especially interesting. They can also indicate practices to avoid, as in the home textiles supply chain. Another managerial take-away is the need to handle each relation, manufacturer-wholesaler and wholesaler-retailer store, with their specific affecting factors in specific ways. Originality/value – Previous knowledge on performance management process integration is mainly based on manufacturing companies. This study expands existing knowledge into a retail context.