Leveraging informational and relational capabilities for performance. An empirical investigation

• DOI: https://doi.org/10.1108/IJLM-04-2017-0087
• Pages: 985-1000
• Date: 11 July 2018
• Published date: 11 July 2018
• Author: Jie Yang,Hongming Xie,Haiwei Liu,Haoran Duan
• Subject Matter: Logistics,Management science & operations

Leveraging informational and

relational capabilities

for performance

An empirical investigation

Jie Yang

University of Houston-Victoria, Sugar Land, Texas, USA

Hongming Xie

Zhejiang University of Technology, Hangzhou, China

Haiwei Liu

Shanghai Offshore Engineering Research Institute, Shanghai, China, and

Haoran Duan

West Yunnan University of Applied Sciences, Dali, China

Abstract

Purpose –The purpose of this paper is to examine the antecedents and consequences of operational

collaboration of a buyer and its key supplier in economic exchanges in a supply chain.

Design/methodology/approach –The analyses of the sample data collected from Chinese manufacturers

in this study include measurement model and structural model using structural equation modeling.

Findings –It shows that firm IT capabilities and supplier relationship management are positively associated with

operational collaboration, which in turn enhances dyadic quality performance through improved process efficiency.

Research limitations/implications –Drawn upon the resource-based view and social contagion theory, it

explained the intention of forming an operational collaboration in a buyer –supplier relationship employing

a motivation-opportunity scheme. Second, the findings greatly advance our understanding of the indirect

linkage between IT capability and quality conformance of the dyads.

Practical implications –This study suggests that practitioners should enhance the IT capability of their

firms as well as implement supplier relationship management program in the organizations so that the

buying firms can exchange cost information, provide assistance and pursue joint investments with their

suppliers with the facilitation of advanced IT capabilities.

Social implications –Emerging market manufacturers are suggested to take measures to reduce

transaction cost and cycle time uncertainty for quality assurance.

Originality/value –First, this study empirically explored the determinants of effective operational

collaboration from the lens of motivation-opportunity scheme through integrating resource-based view and

social contagion theory. Second, it examined the effect of operational collaboration on dyadic quality

performance for both buyers and suppliers. Third, it examined the drivers of effective operational

collaboration in the context of Chinese manufacturers.

Keywords China, Survey, Collaboration, Efficiency, Quality, Supply chain, Social, Resource-based view

Paper type Research paper

1. Introduction

With the high demand of development of buyer –supplier relationships in the context of

economic exchanges, operational collaboration has attracted growing attention from

operations and supply chain management researchers. Effective operational collaboration

offers several advantages to exchange partners in a supply chain through improving

operational productivity (Srivastava et al., 2015), enhancing efficiency and effectiveness

(Lee et al., 2010), risk mitigation and strengthening the effect of marketing exploration on

performance (Ho and Lu, 2015).

The International Journal of

Logistics Management

Vol. 29 No. 3, 2018

pp. 985-1000

© Emerald PublishingLimited

0957-4093

DOI 10.1108/IJLM-04-2017-0087

Received 24 April 2017

Revised 16 September 2017

11 December 2017

27 February 2018

Accepted 1 May 2018

The current issue and full text archive of this journal is available on Emerald Insight at:

www.emeraldinsight.com/0957-4093.htm

This paper forms part of the regular section.

985

Informational

and relational

capabilities

While the major challenge faced by supply chain exchange partners has been various

strategies to meeting customers’needs, operational collaboration between a buyer and its key

suppliers focuses its theme on buyer –supplier relationships. Key suppliers are those whose

supplies to the manufacturers are crucial to the production and operations of the manufacturers.

A set of drivers of an effective operational collaboration have been identified from various

viewpoints ranging from commitment (Lee et al., 2010), trust (Cao and Zhang, 2011; Morton et al.,

2006) and information sharing (Muntean, 2009; Andraski, 1998). As a world manufacturing

center, China has its advantages including low cost of labor and raw materials. However,

China is in the economic transition from central planned economy to market competition, which

is characterized by insufficient legal framework and institutional support for the crucial role as a

manufacturing center. In addition, guanxi is embedded in the Chinese culture for doing business

and in particular enhancing collaboration in supply chain exchanges (Luo et al., 2015). Relational

capabilities of an organization play a significant role in the success of economic exchanges.

Under this background, it is important to find out the efficient way of improving operations and

collaboration between the manufacturers and its key suppliers. This study aims to find out

which factors work together in improving operational collaboration and its performance

consequences in the context of Chinese manufacturers using a motivation-opportunity scheme.

In particular, this study sought answers to the following research questions:

RQ1. What are the determinants of operational collaboration in the context of Chinese

manufacturers?

RQ2. What are the performance consequences of operational collaboration?

2. Literature review

A review of relevant literature regarding the factors affecting operational collaboration is

summarized in Table I. In the existing literature, there are several research gaps to be filled.

First, previous studies on drivers of collaboration between a buyer and its key supplier have

focused mainly on cultural factors such as trust, commitment, information sharing and

mutual adaptation (Richey and Autry, 2009; Fugate et al., 2009; Lee et al., 2010; Nyaga and

Whipple, 2011; Cao and Zhang, 2011; Tsanos et al., 2014; Ekanayake et al., 2017). Little work

has empirically explored the determinants of effective operational collaboration from the

lens of motivation-opportunity scheme through integrating resource-based view and social

contagion theory. Second, little prior research has examined the effect of operational

collaboration on dyadic quality performance for both buyers and suppliers. Quality-related

issues have been challenging for manufacturers in emerging economy. In order to

address the significant issues, measures have been taken and implemented at dyads of

buyer –supplier relationships. Given the increasing concerns for product quality in

emerging economics, it is important to investigate the association between operational

collaboration and dyadic quality performance. Third, previous studies have focused their

research attention on companies in developed market economies which outsourced their

manufacturing operations to emerging economies such as China. Since manufacturers in

emerging economy lack resources in effective management and supporting legal and

institutional infrastructure, relationships between supply chain partners in economic

exchanges are vulnerable to the power inequity, opportunism and reciprocity. Achieving an

effective operational collaboration between a buyer and its key supplier has become an

important task for Chinese manufacturers. Yet, little study has examined the drivers of

effective operational collaboration in the context of Chinese manufacturers.

This study aims to fill the above gaps. The paper is structured as follows. First, drawing

on the resource-based view and social contagion theory, a motivation-opportunity scheme is

used to explain the intention of a buying firm to form an operational collaboration with its

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