Linking Leadership Behaviors and Information Exchange to Improve Supply Chain Performance: A Conceptual Model

Abstract

Organizations striving to improve cycle time concentrate on developing long-term relationship with suppliers. In order to support organizational efforts, this study develops a conceptual model that explores the relationships among leadership behaviors, relational commitment and trust, information exchange, and cycle time. Although the supply chain management literature mentions leadership behavior in the context of supply chain, there are no studies that examine the impact of leadership behaviors on cycle time. This study proposes that transformational and transactional leadership behaviors of buyers increase the flow of information to suppliers directly as well as indirectly through relational commitment and trust, and these relationships also influence cycle time. However, it also proposes that the impact of transformational leadership behaviors on relational commitment and trust and information exchange is stronger than the impact of transactional leadership behaviors. Additionally, both uncertain environment and supplier base have potential to play moderation roles in the relationship between transformational leadership and relational commitment and trust and between transformational leadership and information exchange.

Improving reverse supply chain performance: The role of supply chain leadership and governance mechanisms

“…A buying firm is required to lead by example, which results in their being admired, respected and trusted by their supply chain followers such as their upstream suppliers. Hult et al, (2000a); Hult et al, (2007); Birasnav et al, (2015).…”

“…Transactional leaders clarify followers' roles and requirements, then providing rewards for those who meet the expectations (Bass, 1990;Judge and Piccolo, 2004;Whittington et al, 2009). Drawing upon this tenet, transactional leadership in the SCM context is conceptualised as the behaviour of buying firms in: clarifying suppliers' expectations and roles; rewarding, monitoring and auditing suppliers (Birasnav et al, 2015;Agi and Nishant, 2017;Blome et al, 2017;Gosling et al, 2017). Gosling et al (2017) deduced that buying firms who are committed towards contract compliance (such as defect inspection and quality monitoring) are practising transactional leadership.…”

“…Gosling et al (2017) deduced that buying firms who are committed towards contract compliance (such as defect inspection and quality monitoring) are practising transactional leadership. Moreover, by exhibiting a transactional leadership style, a buying firm can initiate rewarding behaviours that trigger information sharing between both parties (Birasnav et al 2015). While through a transformational leadership, a buying firm inspires the supplier to do more than contracted, transactional leaders strive to ensure that suppliers do exactly as expected (Hartog et al, 1997;Bass et al, 2003;Birasnav et al, 2015).…”

“…Suppliers' adoption of RSC practices can also be maximised by using transactional SCL. Using a transactional approach, a buying firm will monitor and keep track of the performance of the suppliers by comparing it to a certain set of pre-determined rules or agreements (Birasnav et al, 2015). At the same time, in order to promote compliance, rewards can be offered to supply chain members; a buying firm is also able to use punishment schemes (Blome et al, 2017).…”

“…Through a transformational leadership style, a buying firm tends to work collaboratively with suppliers, providing any necessary assistance, support and motivation. In these situations, suppliers will assume that the buying firm is concerned about their success (Birasnav et al, 2015). Nevertheless, the nature of transformational SCL drives buying firms to mentor and coach suppliers, and to encourage them to express their ideas and improving their strengths (Roman, 2017;Teoman and Ulengin, 2018).…”