The effect of the supply chain social capital

Abstract

PurposeThe aim of this paper is to demonstrate that supply chain social capital has an effect on supply chain integration, which in turn has a significant on firm performance, and then supply chain integration mediates the relationship between supply chain social capital and firm performance.Design/methodology/approachThe authors validated their model and tested the hypotheses using the partial least squares (PLS) structural equation model (SEM).FindingsEmpirical results reveal that the three dimensions of supply chain social capital – structural, relational, and cognitive – had significant effects, directly or indirectly, on supply chain integration and performance, and supply chain integration played a mediating role in the relationships between structural capital and firm performance, between relational capital and firm performance, and between cognitive capital and firm performance.Research limitations/implicationsSince the survey data were collected at various industries in Korea, it is difficult to gain social network benefits for a specific industry through worldwide. Therefore, to obtain more meaningful results, the authors would collect the data for special product family in the special industry. But the study suggests that supply chain integration among supply chain partners can be improved by building up social capital, firm performance can be enhanced by improving supply chain integration, and consequently, supply chain integration should serve to enhance firm's profitability.Originality/valueThe main contribution of this paper investigates whether supply chain integration mediates the relationship between supply chain social capital and firm performance in the supply chain using the PLS and Baron and Kenny's approach.

Supply Chain Integration Strategy: A Conceptual Model of Supply Chain Relational Capital Enabler in the Malaysian Food Processing Industry

“…It is important to highlight that integration strategies require mutual trust and commitment among supply chain partners (Day, Fawcett, Fawcett, & Magnan, 2013) from the perspective of relational capital. Trust and commitment have become important relational dimensions in previous literature (Fazli, Hooshangi, & Hosseini, 2013;Sambasivan et al, 2011;Yim, & Leem, 2013), and a part from the above dimensions, socialization has shown a significant association with inter-firms relationship (Cousins et al, 2006). Importantly, through empirical finding, Yim, & Leem (2013) has shown a significant relationship between relational capital and supply chain integration.…”

“…Trust and commitment have become important relational dimensions in previous literature (Fazli, Hooshangi, & Hosseini, 2013;Sambasivan et al, 2011;Yim, & Leem, 2013), and a part from the above dimensions, socialization has shown a significant association with inter-firms relationship (Cousins et al, 2006). Importantly, through empirical finding, Yim, & Leem (2013) has shown a significant relationship between relational capital and supply chain integration. In addition, Sambasivan et al (2011) revealed that relational capital was significantly linked with strategic alliance.…”

“…Therefore, by understanding the important factors of relational capital that influence the establishment of supply chain integration enable participants in supply chain to complement and espouse resources and information among them (Ferrer, Santa, Hyland, & Bretherton, 2010). As reported in previous literature, information sharing plays an important role in improving supply chain integration through the influence factor of relational capital (Yim, & Leem, 2013). To conclude, it can be postulated that supply chain relational capital may act as an enabler to facilitate to the success of supply chain integration.…”

Impact of Online Firm Generated Content (FGC) on Supply Chain Performance: An Empirical Analysis

“…Wei and Ju [32] report on how a partner's social capital can enhance knowledge creation in supply chains. Yim and Leem [33] demonstrate a case where supply chain social capital affecting supply chain integration significantly influences firm performance. Social capital can be an important component of the successful performance of a service supply chain as a source of both physical and informational resources [34].…”

Review, typology and evaluation of traceability technologies: case of the French forest supply chain

“…In accordance with Alfaro and Rábade (2009), the use of traceability information can improve supply chain management. However, a study conducted by Harwood and Humby (2008) highlighted that organisations rarely share information with their supply chain partners, which can have a negative impact supply chain activities like inventory management (Yu, Yan, and Edwin Cheng 2001), resource exchange and collaboration (Yim and Leem 2013).…”