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  • Journal of Operations Management 29 (2011) 163180

    Contents lists available at ScienceDirect

    Journal of Operations Management

    journa l homepage: www.e lsev ier .co

    Supply ratperform

    Mei Caoa

    a Department o d Statb Department o tate U

    a r t i c l

    Article history:Received 1 JanReceived in reAccepted 16 DAvailable onlin

    Keywords:Supply chain cCollaborative aSurvey researcStructural equ

    haveeir sun annd vae colods u

    ts indine ins supe moships the

    2010 Elsevier B.V. All rights reserved.

    1. Introduction

    In the poutside thepartners toto dynamicsupply chaiedge of theiLejeune andor more ausupply chaideliver subset al., 2000& Gamble htheir supplicompetitiveSohi, 2003;rms share(Park et alductivity (Kperformanc2000).

    CorresponE-mail add

    Despite the popularity and benets of supply chain collab-

    0272-6963/$ doi:10.1016/j.ast decades, there has been a need for rms to lookir organizations for opportunities to collaborate withensure that the supply chain is efcient and responsivemarket needs. Firms have strived to achieve greatern collaboration to leverage the resources and knowl-r suppliers and customers (Fawcett and Magnan, 2004;Yakova, 2005). Supply chain collaboration means two

    tonomous rms working jointly to plan and executen operations (Simatupang and Sridharan, 2002). It cantantial benets and advantages to its partners (Mentzer). Firms such as HewlettPackard, IBM, Dell, Procterave forged long-term, collaborative relationships withers to reduce transaction costs and achieve a strongerposition (Handeld and Bechtel, 2002; Johnson and

    Sheu et al., 2006). Collaborative relationships can helprisks (Kogut, 1988), access complementary resources

    ., 2004), reduce transaction costs and enhance pro-alwani and Narayandas, 1995), and enhance prote and competitive advantage over time (Mentzer et al.,

    ding author.resses:mcao1@uwsuper.edu (M. Cao), qzhang@astate.edu (Q. Zhang).

    oration, many partner relationships fall short of meeting theparticipants expectations (Doz and Hamel, 1998; Barringer andHarrison, 2000). Fewrmshave truly capitalized on the potential ofsupply chain collaboration (Min et al., 2005; Barratt and Oliveira,2001). Supply chain collaboration seems to have great potential,but further investigation is needed to recognize its value (Gofnet al., 2006).

    First, supply chain collaboration (SCC) and supply chain integra-tion (SCI) sometimes have been used interchangeably since bothrefer to a tight coupling process between supply chain partners.However, the term integration means the unied control (or own-ership) of several successive or similar process formerly carried onindependently (Webster, 1966; Flynn et al., 2010). So it puts moreemphasis on central control, ownership, or process integrationgov-erned by contract means. According to transaction cost economics(TCE) theory, between the two ends of governance continuumof vertical integration and market exchange, collaboration is anintermediate form of hybrid governance. Collaboration is attrac-tive since it puts more emphasis on governance through relationalmeans in addition to governance through contract means (Nyagaet al., 2010).Although thereare someoverlapsbetweenSCCandSCI,SCC is a better construct to capture the joint relationship betweenautonomous supply chain partners.

    Knowledge of supply chain collaboration has been obscured bythe vague term of integration (Gofn et al., 2006). In the exitingSCI literature, most studies do not focus on the conceptualiza-

    see front matter 2010 Elsevier B.V. All rights reserved.jom.2010.12.008chain collaboration: Impact on collaboance

    , Qingyu Zhangb,

    f Business and Economics, University of Wisconsin-Superior, Superior, WI 54880, Unitef Computer & Information Technology, College of Business, Arkansas State University, S

    e i n f o

    uary 2010vised form 20 October 2010ecember 2010e 29 December 2010

    ollaborationdvantagehation modeling

    a b s t r a c t

    Facing uncertain environments, rmsage the resources andknowledge of ththe nature of supply chain collaboratioof collaborative advantage. Reliable arigorous empirical analysis. Data wervarious industries. The statisticalmethtion modeling (i.e., LISREL). The resuladvantage and indeed has a bottom-lan intermediate variable that enableperformance. A further analysis of thtage completely mediates the relationsmall rms while it partially mediatem/locate / jom

    ive advantage and rm

    esniversity, AR 72467, United States

    strived to achieve greater supply chain collaboration to lever-ppliers and customers. The objective of the study is to uncoverd explore its impact on rmperformance based on a paradigmlid instruments of these constructs were developed throughlected through a Web survey of U.S. manufacturing rms insed include conrmatory factor analysis and structural equa-icate that supply chain collaboration improves collaborativeuence on rm performance, and collaborative advantage isply chain partners to achieve synergies and create superiorderation effect of rm size reveals that collaborative advan-between supply chain collaboration and rm performance forrelationship for medium and large rms.

  • 164 M. Cao, Q. Zhang / Journal of Operations Management 29 (2011) 163180

    tion of integration, but focus on operationalizing the individualcomponent of supply chain integration, e.g., customer integra-tion, supplier integration, and internal integration (Frohlich andWestbrook, 2001; Narasimhan and Kim, 2002; Chen and Paulraj,2004; PeterZhao et al.,detailed revet al. (2010izations of Sconceptuali

    A signiopment ofunderstandWestbrook,Deveraj etVan der Valacking is achain collabsupply chaition and lesknowledgemunicationsupply chairation failurthat holds sway, multil1990; Chenply chain pinformationable compe

    Second,collaboratioadvantagetage is aadvantage (from relatiotive partnerof idiosyncrpetitive advrelationshipmon goals aby acting alet al., 2004;resource baappropriatibenets) anprivate ben

    The concthe literatuKanter, 199tionalizatioin the extanimplicationbe made badvantage)There are mbetween SCNarasimhanVanderVaaprovided emagement prperformanc2010); howon collabor

    The objeacteristics

    on collaborative advantage and rm performance by answeringthe following research questions? What are the key dimensionsof supply chain collaboration? What is the performance implica-tion of supply chain collaboration? How to measure collaborative

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    cisiochanoundteresplynizihiescollaonitos inthat p, 20lizintencsen et al., 2005; Das et al., 2006; Deveraj et al., 2007;2008; Van der Vaart and Van Donk, 2008). For moreiew, see Van der Vaart and Van Donk (2008) and Flynn). Flynn et al. (2010) point out that many conceptual-CI are incomplete, and these incomplete and evolvingzations have led to inconsistent ndings.cant amount of research has focused on the devel-supply chain integration models that advance ouring of this relatively new research area (Frohlich and2001; Narasimhan and Kim, 2002; Das et al., 2006;

    al., 2007; Zhao et al., 2008; Chen and Paulraj, 2004;art and Van Donk, 2008; Flynn et al., 2010). What isframework for accurately dening the extent of supplyoration (Lambert et al., 1999). Previous denitions ofn collaboration put more emphasis on process integra-s on the components of relational communication andcreation (Simatupang and Sridharan, 2005). Miscom-,which causes conicts andmisunderstandingbetweennpartners, is recognized as the reason formany collabo-es (Tuten and Urban, 2001). Communication is the glueupply chain partners together through balanced, two-evel contacts and message services (Mohr and Nevin,and Paulraj, 2004). Further, collaboration between sup-artners is not merely pure transactions, but leveragessharing and market knowledge creation for sustain-

    titive advantage (Malhotra et al., 2005).in investigating the consequences of supply chainn, existing literature has ignored the collaborativeachieved through collaboration. Collaborative advan-relational view of interorganizational competitiveDyer and Singh, 1998). Collaborative advantage comesnal rent, a common benet that accrues to collabora-s through combination, exchange, and codevelopmentatic resources (Dyer and Singh, 1998). It is joint com-antage and focuses on joint value creation in dyadic. Supply chain partners work together toward com-nd achieve more mutual benets than can be achievedone (Mentzer et al., 2001; Stank et al., 2001; ManthouSheuet al., 2006). In contrast, according to the extendedses view, competitive advantage focuses more on valueon by both appropriating relational rent (i.e., commondunilaterally accumulating spillover rents thatproduceets (Lavie, 2006).ept of collaborative advantage has been mentioned in

    re (Jap, 2001; Dyer and Singh, 1998; Ferratt et al., 1996;4; Vangen and Huxham, 2003). However, the opera-n of this construct has not been adequately addressedt literature. In addition, when considering performances of supply chain collaboration, a distinction shouldetween collaboration performance (e.g., collaborativeand the impact of collaborations on rm performance.any studies that empirically tested the relationship

    I and rmperformance (Frohlich andWestbrook, 2001;and Kim, 2002; Das et al., 2006; Deveraj et al., 2007;

    rt andVanDonk, 2008). There are also somestudies thatpirical evidence of the impact of supply chain man-

    actices or SCI on competitive advantage (or operationale) and rm performance (Li et al., 2006; Flynn et al.,ever, there is no empirical work on the impact of SCCative