Developing and Measuring Supply Chain Management Concepts

Abstract

To investigate the construct of Supply Chain Management and its antecedent construct of a Supply Chain Orientation, reliable, valid scales of each are needed. In this study, we developed measurement scales for a supply chain orientation (SCO) and supply chain management (SCM). Validity and reliability of the developed scales were established and the relationship between a SCO, SCM, and business performance was also established, providing evidence of nomological validity. The implications of these findings for managers and researchers are discussed.

Supply Chain Management measurement and its influence on Operational Performance

“…SCO and SCM concepts are two related but different concepts. SCO relates to the firm and precedes SCM that, in its turn, should be applied to a collection of firms, forming a chain (Min & Mentzer 2004). …”

“…presented an SCM framework that encompassed three dimensions: supply network structure, characterized by strong linkages between members, low levels of vertical integration, nonpower based relationships; longterm relationships, managed with effective communication, cross-functional teams, early supplier involvement in crucial projects, planning processes; and logistics integration. Min and Mentzer (2004) represented SCM as a second order construct including agreed vision and goals, information sharing, risk and reward sharing, cooperation, agreed supply chain leadership, long-term relationship and process integration. Consolidation of both proposals and also taking in account other influential contributions suggested five constructs to represent SCM: information sharing, long-term relationship, risk and reward sharing, cooperation, and processes integration.…”

The Influence of Green External Integration on Firm Performance: Does Firm Size Matter?

“…A rigorous process was conducted to validate the measurement items, as the scales had been developed in a very different national culture [41,49]. Exploratory factor analysis was employed to ensure the uni-dimensionality of the scales.…”

Understanding Supply Chain Management Practices for Small and Medium-Sized Enterprises

“…To embrace a successful SCM philosophy, various activities are needed, such as development of long-term relationships (Min and Mentzer, 2004;Chen and Paulraj, 2004), mutually sharing information, integrated behaviour (Tan, 2002), cooperation, risks and rewards, integration of processes, agreed goals, a focus on serving customers, (Min and Mentzer, 2004) and partnership with supply chain members. In addition, SCM is about the process of managing materials flow, information and relationships between companies in fulfilling customer requests.…”

“…Chen and Paulraj (2004) defined SCM practices to include long-term relationships, communication, supplier involvement, supply base reduction, and cross-functional teams. Min and Mentzer (2004) noted that SCM practices are composed of information sharing, agreed customer focus and vision, cooperation, sharing of risk and rewards, accepted supply chain leadership, process integration and long-term relationships. This model is grounded on strategic partnerships, with the purpose of achieving mutual benefits.…”