Competitive and Cooperative Positioning in Supply Chain Logistics Relationships*

Abstract

Cooperative logistics relationships require the sharing of information, which must be enabled by the integration of disparate information systems across partners. In this article, we theorize business-to-business logistics relationships should be managed using cooperative and competitive postures. Based on data from 91 dyadic relationships using interorganizational information technology (IT), we find that performance gains accrue when parties share strategic information and customize IT; mutual trust enables IT customization and strategic-information flows and equitable relationship-specific investments positively impact IT customization, mutual trust, and performance. Among other scholarly and practical implications discussed, partners should compete on resources for IT customization and cooperate to share strategic information. Managers tend to think of relationships with firms as polar opposites and view them as entirely cooperative or entirely competitive. Our results support active balancing and understanding of both competitive and cooperative stances. Such an approach enables conditions for participation symmetry that yields greater performance gains.

Assimilation of tracking technology in the supply chain

“…Alternatively, Firm A is already cognizant that IT can lead to improvements in strategic information flow, opportunities to make data driven decisions and ultimately reduced transaction costs [62], expecting that tracking technology will further all of these gains.…”

Pre-requisites of successful strategic electronic coordination: the moderation effect of the ownership mechanism of inter-organisational information systems

“…The main argument for information sharing is the reduction in the transaction costs and the uncertainty (Tan et al, 2010). On the contrary, partners may prefer to withhold sensitive information to diminish the threat of opportunism (Klein et al, 2007). In this case, the information is considered an asset that requires additional safeguarding mechanisms (Kembro et al, 2014).…”

“…In this case, the information is considered an asset that requires additional safeguarding mechanisms (Kembro et al, 2014). Therefore, it may lead to unwillingness to invest into highly specific IOSs (Tan et al, 2010;Klein et al, 2007).…”

Inter-organizational information exchange, supply chain compliance and performance

“…This allows comparisons to be made between companies of different size (Lusch and Brown, 1996). Profitability was initially formulated based on Kaynak (2002), Narasimhan and Kim (2002), and Han (2009), whereas competitive performance was initially formulated based on Narasimhan and Kim (2001), and Straub et al (2007). These items have been employed to jointly measure the construct of 'profitability & competitive performance' .…”

“…It was found that trading partners' level of trust in the client positively influenced their information exchange behavior, and in turn, information communication positively affected client customizations (Klein et al, 2007). Trust was also found to be an important factor influencing the adoption and use of inter-organizational information systems Saunders, 1997, 1998;Gang et al, 2006).…”