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PurposeThe purpose of this paper is to introduce and validate two new constructs with the potential to sharpen our understanding of how and why firms integrate their internal supply chains and assess the governance structure of their supply chains. The first construct, organizational alignment (OA), is a reflective scale measuring the extent to which upper management attempts to foster integration between internal supply chain functions. The second, supply chain governance structure (SCGS), is a formative index, and is a first attempt at developing a measurement instrument to assess SCGS along multiple dimensions.Design/methodology/approachFollowing a literature review, measures of OA and SCGS are conceptualized. These instruments are used to collect data, after which they are refined and validated through parallel scale development (OA) and index construction (SCGS) processes.FindingsOA shows acceptable content and construct validity, and SCGS shows acceptable results for content and item specification, as well as multicollinearity.Practical implicationsOA and SCGS may provide some insight into how to promote better internal supply chain integration within the firm, and may allow for an assessment of the governance structure of the firm's supply chain. In different industries and at different times, this knowledge may prove useful in supply chain design and supply base optimization decisions.Originality/valueThese scales have considerable applicability in logistics and supply chain management research. Together, they represent initial attempts to assess upper management influence on internal supply chain alignment (OA), and to assess the governance structure of a firm's supply chain.

Purpose -There is good evidence that the shift in global sourcing is toward so-called "low cost country suppliers." Yet conditions in these countries are often not well-known. At the same time, best practices in integrated supply dictate a multi-faceted decision, rather than basing supplier location on a single attribute say, labor cost alone. With these issues in mind, a research project was formulated with two primary objectives. First, the authors wanted to compile the knowledge and perceptions of purchasing managers regarding low cost regions and their capabilities and to reflect the multiple factors involved in current sourcing strategies and supplier selection decisions in these low cost geographies. Second, the authors wanted to compare managers' subjective perceptions with objective data regarding attributes of sourcing locations to identify the relationship between perceptions and reality. This paper aims to explore the issues. Design/methodology/approach -The authors surveyed over 100 sourcing professionals on their perceptions of various low cost sourcing alternatives. Perceptual mapping techniques were used to combine the rankings on some 12 different attributes to visualize how the various attributes relate to each other and how the low cost regions compare when rated against sourcing managers' ideal perceptions.Findings -The research results show that procurement managers select regions for low cost sourcing based on both specific measures and individual and/or group perceptions of the region, whether these perceptions are correct or not. This paper probes these perceptions. Also the paper compares these subjective perceptions with objective data to show that cultural stereotypes may bias managers' perception of location-specific characteristics. The paper closes with implications for procurement managers and opportunities for further research. Practical implications -The authors have demonstrated that purchasing managers choose sourcing locations using multiple criteria instead of only focusing on cost. But some perceptions are biased by cultural stereotypes and do not reflect reality. This suggests that managers have to be careful when using their subjective judgment in choosing sourcing locations. Originality/value -The authors believe that visual representations of alternative sourcing options have great potential to improve the efficiency of cross-disciplinary and multi-company teams that are increasingly responsible for global sourcing strategies. Comparing managers' perception with objective data of location attributes shows that mangers' perception may be biased by cultural stereotypes.

This study examines how organizational alignment between professionals—who act as surrogate buyers‐‐ and the organizations in which they work, influence the supply management efficiency of the organization. Based on a cross‐sectional sample of hospital data, we estimate random effects regression models to investigate the association between physician‐hospital integration mechanisms and hospital supply efficiency. The results suggest that either professional hierarchy or bureaucratic pressures can improve supply management efficiency. In a sector of the economy characterized by escalating costs and uncertainty, the findings provide potential guidance for professional relationship strategy design to improve sector performance.