Antecedents for the adoption and execution of supply chain management

Abstract

Purpose: The purpose of this paper is to develop a conceptual model that includes drivers of supply chain management (SCM) adoption and execution identified in the literature, provide a set of measurement scales that operationalise constructs within this model, empirically verify a hierarchical order of antecedents that affects the adoption and execution of SCM, and assist management by providing a focus on those SCM conditions and processes that need to be prioritised to increase successful SCM adoption and execution.Design: The conceptual model is tested empirically through a survey of 174 senior supply chain managers representing the biggest organisations within a central European country.Findings: Using structural equation modelling the hypothesised hierarchical order of three proposed antecedents are verified: 'internal SCM conditions' that affect 'joint or external SCM conditions' which in turn influences collaborative 'SCM-related processes'. Firms that adopt these steps should enjoy a rigorous and appropriate road to the full execution of SCM. Research limitations:The survey results reflect the views of large organisations in a countryspecific supply chain setting. Practical implications:The findings provide a hierarchical focus for financial, personnel and management initiatives to increase integration within a supply chain and improve competitiveness.Originality/value: The major contribution of this paper is that it provides empirical proof of the antecedents that affect the adoption and execution of SCM.

The non-adoption of supply chain management

“…Despite this, the underlying assumption within supply chain management that every activity including transactions, processes, practices, and relationships are part of a 'chain' or 'network' remains strong. Whether internal or external, supply or demand orientated, it logically follows from this dominant assumption that chains cannot be left to serendipity; they must be actively and holistically managed (Kotzab et al, 2011). Efficiencies argued to flow from such holistic management form a significant part of arguments for industries and organisations to adopt supply chain management.…”

“…Indeed, contextually sensitive models of development and diffusion are argued to be largely absent (Kotzab et al, 2011).…”

Key antecedents and practices for Supply Chain Management adoption in project contexts

“…However, this study shows how this class of variables does not directly impact on the success of SCM implementation rather they represent the basis to assess other functional/preparatory variables. Further antecedents are in fact required to achieve effective SCM, in accordance with the work by Kotzab et al (2011). Definitely, this first layer of antecedents can be interpreted as a preliminary basing humus in a SCM adoption path.…”

“…Halldorsson et al (2007) for example identified a number of preconditions, such as trust, long-term collaboration and willingness to share costs and benefits, which can be found in inter-organizational relationships studies. Then, a work by Kotzab et al (2011) investigated the relationships among SCM antecedents in the automotive sector, discerning between internal, joint or external conditions, and SCM-related processes; this categorization represents the foundation to further explore in details the preconditions of SCM approach, but as underlined by the authors themselves, the classification is still quite generic and does not include all the aspects of SCM implementation (Kotzab et al, 2011).…”

“…In so doing, the proposed model also analyzes the interconnections of antecedents and innovatively offers a structured conceptual path for SCM adoption, emphasizing most critical issues that have to be considered and organized in this complex and unpredictable setting. Also, in respect to the "SCM antecedent" stream of literature (Hsu et al, 2014;Kotzab et al, 2011) the work suggests a different perspective of antecedents focusing the analysis on the capabilities (intended as managerial methodologies and technical tool/systems).…”