Abstract
Firms are involved in supply chains to achieve operative efficiency, develop strategic advantages, and generate financial profits. However, there is limited evidence regarding how governance mechanisms influence the generation of value from collaboration. Furthermore, how a particular buyer or supplier position provides benefits to partners is unclear. In this paper, we examine the roles of management control information as both a governance mechanism and a source of dynamic capabilities, and its interaction with relational variables to create and capture value following a demand-side perspective. Two separate studies are developed using multigroup structural equation modelling, which analyse buyer and supplier positions played by the firm as a complex supply chain node. The results demonstrate that the characteristics of information sharing have different impacts on value, depending on the role played in the relationship. Although timely information sharing appears to be the key source of operative and financial value in downstream relationships, disaggregated information sharing generates additional strategic advantages in upstream relationships. The presence of different control-trust frameworks mediates the process of value generation, leading to different managerial and theoretical implications.
Highlights
Firms join collaborative supply chains to achieve efficiency and create unique value that neither participant can obtain independently [1,2,3,4]
Trust is found to have a direct, positive effect on continuity expectations (H3), in line with literature that suggests that trust shifts the focus of a relationship to future conditions [11,54,55,102,118], such an effect is significant for buyers, adding evidence to [57] results on the importance of trust to promote buyers’ cooperation
Disaggregated information negatively affects trust for buyers and suppliers (H1), while no direct effect is observed on continuity expectations (H2), an indirect negative impact is observed on the basis of trust (H7)
Summary
Firms join collaborative supply chains to achieve efficiency and create unique value that neither participant can obtain independently [1,2,3,4]. Supply chains create financial value for participants [12], which is eventually captured in the form of increases in sales, market shares, or profit margins [11,13]. As corporate sustainability has been found to depend on sustainable relationships between the firm and its multiple stakeholders [15,16], the supply value-network is expected to emphasize the issue of value creation beyond the boundaries of the firm [17]; many relationships do not produce the benefits that are expected to result from collaboration [18] so there is a need of additional investigation into the success factors of interorganisational relationships [19]
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