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<ul><li><p>Journal of Operations Management 29 (2011) 163180</p><p>Contents lists available at ScienceDirect</p><p>Journal of Operations Management</p><p>journa l homepage: www.e lsev ier .co</p><p>Supply ratperform</p><p>Mei Caoa</p><p>a Department o d Statb Department o tate U</p><p>a r t i c l</p><p>Article history:Received 1 JanReceived in reAccepted 16 DAvailable onlin</p><p>Keywords:Supply chain cCollaborative aSurvey researcStructural equ</p><p>haveeir sun annd vae colods u</p><p>ts indine ins supe moships the</p><p> 2010 Elsevier B.V. All rights reserved.</p><p>1. Introduction</p><p>In the poutside thepartners toto dynamicsupply chaiedge of theiLejeune andor more ausupply chaideliver subset al., 2000&amp; Gamble htheir supplicompetitiveSohi, 2003;rms share(Park et alductivity (Kperformanc2000).</p><p> CorresponE-mail add</p><p>Despite the popularity and benets of supply chain collab-</p><p>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</p><p>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</p><p>Sheu et al., 2006). Collaborative relationships can helprisks (Kogut, 1988), access complementary resources</p><p>., 2004), reduce transaction costs and enhance pro-alwani and Narayandas, 1995), and enhance prote and competitive advantage over time (Mentzer et al.,</p><p>ding author.resses:mcao1@uwsuper.edu (M. Cao), qzhang@astate.edu (Q. Zhang).</p><p>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).</p><p>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.</p><p>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-</p><p>see front matter 2010 Elsevier B.V. All rights reserved.jom.2010.12.008chain collaboration: Impact on collaboance</p><p>, Qingyu Zhangb,</p><p>f Business and Economics, University of Wisconsin-Superior, Superior, WI 54880, Unitef Computer &amp; Information Technology, College of Business, Arkansas State University, S</p><p>e i n f o</p><p>uary 2010vised form 20 October 2010ecember 2010e 29 December 2010</p><p>ollaborationdvantagehation modeling</p><p>a b s t r a c t</p><p>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</p><p>ive advantage and rm</p><p>esniversity, AR 72467, United States</p><p>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.</p></li><li><p>164 M. Cao, Q. Zhang / Journal of Operations Management 29 (2011) 163180</p><p>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</p><p>A signiopment ofunderstandWestbrook,Deveraj etVan der Valacking is achain collabsupply chaition and lesknowledgemunicationsupply chairation failurthat holds sway, multil1990; Chenply chain pinformationable compe</p><p>Second,collaboratioadvantagetage is aadvantage (from relatiotive partnerof idiosyncrpetitive advrelationshipmon goals aby acting alet al., 2004;resource baappropriatibenets) anprivate ben</p><p>The concthe literatuKanter, 199tionalizatioin the extanimplicationbe made badvantage)There are mbetween SCNarasimhanVanderVaaprovided emagement prperformanc2010); howon collabor</p><p>The objeacteristics</p><p>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</p><p>age fageollabationage,stud</p><p>tion blingtandllaboanu</p><p>p relatiovantstsmonrm pnce.</p><p>oret</p><p>ply cvantage (ly chdentratioompvantts foage ea rrativcha</p><p>um grentschaxamnsactview</p><p>ansa</p><p>nsactn ex</p><p>ger aand</p><p>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;</p><p>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-</p><p>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</p><p>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</p><p>I and rmperformance (Frohlich andWestbrook, 2001;and Kim, 2002; Das et al., 2006; Deveraj et al., 2007;</p><p>rt andVanDonk, 2008). There are also somestudies thatpirical evidence of the impact of supply chain man-</p><p>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 advantage and rm performance.ctive of the study is to uncover the nature and char-of supply chain collaboration and explore its impact</p><p>advantadvantchain cthe reladvant</p><p>ThelaboraBy pooundersand cowith mdevelothe retive adalso teships aand invaria</p><p>2. The</p><p>Suptive adadvanta suppdepencollabojoint ctive adbeneadvantimizecollabosupplyzero-stionalsupplystudy e(1) trational</p><p>2.1. Tr</p><p>Trathat caBarrinarchiesthe deketmefrom bself-in</p><p>Supto orgahierarcchainand mprocesbility t(Croominternacomperom a perspective of relational rent? Does collaborativecompletely mediate the relationship between supplyorationandrmperformance?Doesrmsizemoderateships among supply chain collaboration, collaborativeand rm performance?y contributes to our knowledge on supply chain col-y providing theoretical insights and empirical ndings.an extensive set of factors, the research extends ouring of the attributes of supply chain collaborationrative advantage. Through a large-scale Web surveyfacturers across the US, the research also intends toliable and valid instruments and to empirically testnships among supply chain collaboration, collabora-age, and rm performance. In addition, the researchthe moderation effect of rm size on the relation-g supply chain collaboration, collaborative advantage,erformance using multi-group analysis of structural</p><p>ical paradigms</p><p>hain collaboration is rooted in a paradigm of collabora-age (Kanter, 1994; Dyer, 2000) rather than competitivePorter, 1985). According to the collaborative paradigm,ain is composed of a sequence or network of inter-relationships fostered through strategic alliances andn (Chen and Paulraj, 2004). It is a relational view ofetitive advantage (Dyer and Singh, 1998). Collabora-age comes from relational rents that produce commonr bilateral rent-seeking behaviors while competitivencourages individual rent-seeking behaviors thatmax-ms own benets (Lavie, 2006). The perspective ofe advantage enables supply chain partners to view</p><p>in collaboration as a positive-sum game rather than aame where partners strive to appropriate more rela-for their own competitive advantage. The literature on</p><p>in collaboration represents multiple perspectives. Thisines supply chain collaboration from four perspectives:ion cost economics, (2) resource based view, (3) rela-, and (4) extended resource based view.</p><p>ction cost economics</p><p>ion cost economics (TCE) is a very inuential theoryplain relationships among rms (Williamson, 1975;nd Harrison, 2000). Williamson (1975) identies hier-markets as two methods to organize. According to TCE,</p><p>n to use either vertical integration/hierarchies or mar-ismsdepends on the relativemonitoring costs that ariseed rationality and from uncertainties due to partnerst and opportunism (Kaufman et al., 2000).chain collaboration emerges as the third alternativeng, which helps avoid the problems arising from bothand markets (Koh and Venkatraman, 1991). Supply</p><p>boration helps rms reduce the costs of opportunismring that are inherent in market transactions throughegration and mutual trust, thus increasing the proba-artners behave in the best interest of the partnership01). Supply chain collaboration also helps rms avoidg an activity that may not be aligned with theiries.</p></li><li><p>M. Cao, Q. Zhang / Journal of Operations Management 29 (2011) 163180 165</p><p>Collaborative </p><p>Advantage </p><p>Process Efficiency </p><p>ity </p><p>ve adv</p><p>2.2. Resour</p><p>Resourcetion in explRBV are resRBV arguesstrategic re1990), dyncapacity (Coin a uniquewho are unresources abilities, rm2003). RBVpartneringrare, valuab(Barney, 19</p><p>The embtional assetcompetitorallows rmrm specieffects, ther2004).</p><p>2.3. Relatio</p><p>The relacritical resoFirms can escarcity ofrelational rejointly geneated by eiththe joint cSingh, 1998laborativeknowledge,inter-rm kendowmen</p><p>Collaborelaboratesorent generation level forole of both</p><p>998)rativ</p><p>tend</p><p>ventsourcERBVoy tagested ces ae admpee/colriatend srmsnal rartnertnere, intion osultsr. Thtbous comriateontraH4a </p><p>Offering Flexibil</p><p>Business Synergy</p><p>Quality </p><p>Innovation Supply Chain </p><p>Collaboration </p><p>Information Sharing </p><p>Goal Congruence </p><p>Decision Synchronization </p><p>Incentive Alignment </p><p>Resource Sharing </p><p>Collaborative Communication </p><p>Joint Knowledge Creation </p><p>H1</p><p>Firm</p><p>Size</p><p>H3</p><p>H4c </p><p>Fig. 1. Impact of supply chain collaboration on collaborati</p><p>ce based view</p><p>based view (RBV) of the rm also receivesmuch atten-aining supply chain collaboration. The key concepts ofources, capabilities, and strategic assets (Barney, 1991).that variance in rm performance can be explained bysources, such as core competence (Prahalad and Hamel,amic capability (Teece et al., 1997), and absorptivehenandLevinthal, 1990). Firms that combine resourcesway may achieve an advantage over competing rmsable to do so (Dyer and Singh, 1998). By owning scarcend assets and excelling in core competencies and capa-s can reach a sustained market advantage (Knudsen,</p><p>claims that investing in relation-specic assets enablesrms to build competitive advantage because of theirle, non-substitutable, and difcult-to-imitate nature91).eddedness of the supply chain partnering rms rela-s and the causal ambiguity makes it difcult for theirs to imitate (Jap, 2001). Supply chain collaboration alsos to focus on their unique core activities, which increasec skills and realize economies of scale and learningeby improving their competitive positions (Park et al.,</p><p>nal view</p><p>tional view (RV) complements...</p></li></ul>