This study explores a performance measurement system for a dynamic supply chain partnership in a cross-cultural context. An initial framework is constructed by reviewing the existing literature, followed by an in-depth case study in the Chinese automotive industry, where the framework is refined to address the multi-cultural setting. A performance measurement, system which includes the relationship strategy and operational measurement criteria for a supply chain partnership, has been developed. The relationship strategy contains elements of strategy orientation, management style, interdependence, mutual organisational characteristics and common goals. The operational measurement criteria consist of commitment, trust, communication behaviour, information sharing, participation decision, quality, production performance, delivery, cost, supplier strength, attitude, compromise and loyalty. The last three operational measurement criteria are found to be particularly relevant to the cross-cultural feature. While existing studies tend to focus on either specific measures or individual organisations, this paper for the first time proposes a comprehensive framework to measure the performance of supply chain partnerships. The crosscultural perspective provides a further unique view on how a performance measurement system can be responsive to the dynamics in practice.Keywords: supply chain partnership; performance measures; case study; automotive industry; cross-cultural collaboration
1: Literature reviewSupply chain partnership (SCPR) management and performance measurement have been theorized as a crucial means for manufacturers to achieve sustainable competitive advantage and superior performance (Lee and Whang 2004;Hult, Ketchen and Arrfelt 2007; Cousins, Lawson and Squire 2008; Vanpoucke, Vereeckbe and Boyer 2014). Cao and Zhang (2011) noted that a good relationship with suppliers can give a manufacturer competitive advantage over others in the marketplace. Hence, much attention has been paid in the literature to developing effective SCPR, where the importance of partnership and performance to the entire supply chain is particularly stressed (Ellram 1991;Macbeth and Ferguson 1994;Landeros et al. 1995; New 1996;Maloni and Benton 1997).Performance can be defined as a metric used to quantify the efficiency and/or effectiveness of an action (Neely et al. 1995). Within the context of SCPR, performance of both manufacturers and suppliers should be taken into account, and an effective measurement system adopted to monitor their relationship (Chan and Qi 2003;Gunasekaran, Patel and Tirtiroglu 2001). On the one hand, supplier performance is vital to the success of the manufacturer-supplier relationship when measuring individual participants' input into the supply chain management process (Cousins et al. 2008). On the other hand, manufacturer performance is narrower, and assesses the prospective relationship and organisational capabilities in relation to company performance SCPR is a close, cooperative relationship, formed by tw...