Partnership-Based Supply Chain Collaboration: Impact on Commitment, Innovation, and Firm Performance

Abstract

With increasing numbers of nodes and links in supply network relationships, understanding partnership management and the required level of collaboration is important for sustainable supply network alignment. This study explores the impact of partnership orientation on partnership commitment and firm performance using a model based on social capital theory and resource dependence theory. It aims to understand the appropriate partnership orientation for the desired level of commitment and firm performance, including innovation, operational, and financial performance. Using a survey of 423 respondents representing three different partnership structure types (supplier, buyer, and parallel-aligned firms' perspectives), the relationship between partnership orientation and commitment in enhancing firm performance is investigated using structural equation modeling. Additional analysis identifies the moderating role of commitment and investment exchange on performance. The findings show that positive relationships between both investment and contractual-based partnership orientation positively contribute to partnership commitment, but the direct association between partnership commitment and firm performance type varies by partnership structure. Furthermore, (i) investment exchange level moderates the relationship between commitment and innovation and operational performance regardless of partnership structure type, (ii) negative investment exchange signals higher firm performance from the buyer firm's perspective, and (iii) positive investment exchange is absolutely necessary for financial performance from the supplier firm's perspective.

How Does A Firm’s Previous Social Network Position Affect Innovation? Evidence from Chinese Listed Companies

“…There is a controversy about whether the increase in social network cooperation is beneficial to innovation in previous empirical studies [28]. Most current research explains the difference in empirical results using the three-dimensional classification of social capital, including relational dimension [52], structural dimension [53], and cognitive dimension [54]. The results of this study show that time is another key dimension that creates a complex impact of social network position on innovation.…”

The Impact of Blockchain Technology Application on Supply Chain Partnership and Performance

“…Similarly, a partnership confidence can lead to overall improvement in SC collaboration with respect to information sharing, decision synchronization, collaborative communication, and joint knowledge creation [33]. A high level of SC collaboration leads to collaborative advantages such as process efficiency, business synergy, and innovation, which then improve the firm's performance [21,32]. Therefore, the following hypotheses are established on SC partnership growth and SC financial and operational performance.…”

“…Advanced technologies and their successful integration can accrue potential benefits concerning strategic SC partnership management. Creating and managing partnerships within the SC, or network, in a conventional approach involves collaborative activities such as information sharing [18], resource sharing [19], decision synchronization [20], and interest alignment [21]. Because a SC is composed of a sequence, or network, of interdependent relationships, the SC's competitive advantage can only be maintained via successful partnership among SC partners [18].…”

Integration, Application and Importance of Collaboration in Sustainable Project Management

“…In efforts to improve the industry, scholars and practitioners have recently turned their attention towards collaborative business arrangements [12,13], not least to facilitate realization of sustainable development [43]. Collaborative 'partnering' arrangements have shown potential to improve business in other contexts [18,44]. There is no universal understanding of the concept [45], but much of the relevant literature refers to definitions that incorporate long-term commitment from multiple stakeholders in efforts to achieve common business objectives.…”

“…Further, due to the complexity of construction projects, duration is crucial, because it takes time and timing for relationships to evolve, so involving appropriate actors and competences at appropriate times is essential (13,14,47]. However, despite construction management scholars' interest in partnering and collaborative business arrangements [14,17,44], there is a lack of literature on how these practices may affect sustainability and the realization of sustainable project management.…”