A metacognitive perspective on decision making in supply chains: Revisiting the behavioral causes of the bullwhip effect

Haines, Russell P.; Hough, Jill R.; Haines, Douglas

doi:10.1016/j.ijpe.2016.11.006

Cited by 39 publications

(28 citation statements)

References 38 publications

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“…The 'relational view' of the firm suggests that close relationships between supply chain partners engender relational capital, promote mutual trust, and facilitate accurate information flows (Dyer and Singh, 1998;. Since the sharing of more accurate information has the potential to mitigate the BWE (Lee et al, 1997a;Haines et al, 2017), higher relational capital between supply chain partners should help mitigate the BWE. However, recent research documents the 'dark side' of relational capital and suggests that stronger ties between supply chain partners may lead to opportunistic or gaming behavior, which has the potential to increase BWE (Villena et al, 2011;Zhou et al, 2014).…”

Section: Introductionmentioning

confidence: 99%

Supply chain relational capital and the bullwhip effect

Rong¹,

Mashruwala²,

Pandit³

et al. 2019

IJOPM

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Purpose The purpose of this paper is to conduct a large-sample empirical investigation of how relational capital impacts bullwhip at the supplier. Design/methodology/approach The study uses mandatory disclosures in regulatory filings of US firms to identify a supplier’s major customers and constructs empirical proxies of supply chain relational capital, i.e., length of the relationship between suppliers and customers and partner interdependence. Multivariate regression analyses are performed to examine the effects of relational capital on bullwhip at the supplier. Findings The findings show that bullwhip at the supplier is greater when customers are more dependent on their suppliers, but is reduced when suppliers share longer relationships with their customers. The results also provide additional insights on several firm characteristics that impact supplier bullwhip, including shocks in order backlog, selling intensity and variations in profit margins. Furthermore, the authors document that the effect of supply chain relationships on bullwhip tends to vary across industries and over time. Originality/value The study employs a novel data set that is constructed using firms’ financial disclosures. This large panel data set consisting of 13,993 observations over 36 years enables thorough and robust analyses to characterize supply chain relationships and gain a deeper understanding of their impact on bullwhip.

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Section: Introductionmentioning

confidence: 99%

Supply chain relational capital and the bullwhip effect

Rong¹,

Mashruwala²,

Pandit³

et al. 2019

IJOPM

View full text Add to dashboard Cite

show abstract

“…[3,15] evidenced that the causes may be specific to human behavior and others specific to the operation, ref. [16] confirms that if decision makers understood the situation the face it, then made better decisions, and ref. [17] indicates that human attitude affect inventory factor.…”

Section: Causes Bullwhip Effectmentioning

confidence: 79%

Impact of Bullwhip Effect in Quality and Waste in Perishable Supply Chain

Peña¹,

Ortíz²,

Maldonado

2021

Processes

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The bullwhip effect results from inefficiencies in the supply chain; in perishable products, the inefficiencies are quality in the supply chain and product waste. We carried out a literature review to determine the causes of the bullwhip effect and the supply chain’s quality factors of this phenomenon’s perishable products. Update the demand, the level of deterioration of the product, and the number of intermediaries is the causes of the bullwhip effect most investigated. On the other hand, the product’s safety and the quality of the information are the quality factors of the chain of supplies of perishable products more researched. Future research should address the causes of human behavior that affect the bullwhip effect in the perishable goods supply chain.

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“…Similarly, prior studies have explored how personality traits influence decisionmaking processes and outcomes (e.g., Lauriola, Panno, Levin, & Lejuez, 2014;Davis et al, 2007) also in games with uncertain outcomes (Kang & Morin, 2016). Furthermore, Haines, Hough, and Haines (2017) report that supply chain decision making is a behavioural rather than a deterministic process. Some offer mixed results about the effect of personality traits on the quality of decisions ( Moutafi, Furnham, & Crump, 2003;Hough & Ogilvie, 2005;Davis et al, 2007).…”

Section: Literature Reviewmentioning

confidence: 99%

The effect of personality traits and knowledge on the quality of decisions in supply chains

Erjavec

Popovič

Trkman

2019

Economic Research-Ekonomska Istraživanja

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Supply chain and operations management requires frequent decision making, and decisions are importantly influenced by the personality traits and knowledge of the decision maker. Thus, we analyse the effect of those factors on the confidence and quality of decisions taken in the context of supply chain management. The data were gathered via an online supply chain simulation game where subjects needed to make several decisions. Personality traits of the participants were tested using the Big Five model. The structural model was estimated using the partial least squares structural equation modelling approach. We found that decision-makers with lower levels of extraversion and agreeableness and higher levels of conscientiousness and openness make better decisions. On the other hand, neuroticism and agreeableness negatively affect confidence in decisions. Tested knowledge positively influences both decision-makers' confidence in and the quality of their decisions while self-reported knowledge has no significant effect. Therefore, the companies should carefully consider how an individual's personality matches the type of job at hand and rely on tested instead of self-reported knowledge.

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A metacognitive perspective on decision making in supply chains: Revisiting the behavioral causes of the bullwhip effect

Cited by 39 publications

References 38 publications

Supply chain relational capital and the bullwhip effect

Supply chain relational capital and the bullwhip effect

Impact of Bullwhip Effect in Quality and Waste in Perishable Supply Chain

The effect of personality traits and knowledge on the quality of decisions in supply chains

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