THE INFLUENCE OF COLLABORATION IN PROCUREMENT RELATIONSHIPS Wesley


THE INFLUENCE OF COLLABORATION IN PROCUREMENT RELATIONSHIPS 

Wesley S. Boyce1 , Haim Mano2 and John L. Kent3

 1Department of Management Sciences, University of Iowa, Iowa City, Iowa 2Marketing Department, University of Missouri – St. Louis, St. Louis, Missouri 3Department of Supply Chain Management, University of Arkansas, Fayetteville, Arkansas

ABSTRACT

Supply Chain Management often requires independent organizations to work together to achieve shared objectives. This collaboration is necessary when coordinated actions benefit the group more than the uncoordinated efforts of individual firms. Despite the commonly reported benefits that can be gained in close relationships, recent research has indicated that collaboration attempts between purchasing firms and their suppliers have not been as widespread as anticipated. Using a survey of procurement professionals, this research investigates how the purchasing function utilizes collaboration in its supply chain relationships. Structural equation modeling is used to identify how information sharing, decision synchronization, incentive alignment, collaborative communication, and trust impact collaboration, as well as how collaboration impacts performance. Results from 86 survey responses indicate that firms are still not fully utilizing collaborative relationships.

KEYWORDS

Collaboration, supply chain relationships, procurement, purchasing, structural equation modeling

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