The effects of competitive environment on supply chain information sharing and performance: An empirical study in China

Production and Operations Management

Volumn 23, Issue 4, 2014, Pages 552-569

  Huo, Baofeng ^a   Zhao, Xiande ^b,c   Zhou, Honggeng ^d  

^a ZHEJIANG UNIVERSITY   (China)

^b CHINA EUROPE INTERNATIONAL BUSINESS SCHOOL   (China)

^c SOUTH CHINA UNIVERSITY OF TECHNOLOGY   (China)

^d UNIVERSITY OF NEW HAMPSHIRE   (United States)

Author keywords

China; competitive environment; information sharing; supply chain performance

Indexed keywords

EID: 84898883147     PISSN: 10591478     EISSN: 19375956     Source Type: Journal    
DOI: 10.1111/poms.12044     Document Type: Article

References (115)

1. Aeppel, T., 2008. Stung by soaring transport costs, factories bring jobs home again. Wall St. J. June 13, A1.
2. Amoako-Gyampah, K., 2003. The relationships among selected business environment factors and manufacturing strategy: Insights from an emerging economy. Omega 31 (4): 287-301.
3. Amoako-Gyampah, K., S. S. Boye,. 2001. Operations strategy in an emerging economy: The case of the Ghanaian manufacturing industry. J. Oper. Manag. 19 (1): 59-79.
4. Areddy, J. T., 2008. China's export machine threatened by rising costs. Wall St. J. June 30, A1.
5. Attaran, M., 1989. The automated factory: Justification and implementation. Bus. Horizons 32 (3): 80-86.
6. Aviv, Y., 2001. The effect of collaborative forecasting on supply chain performance. Manage. Sci. 47 (10): 1326-1333.
7. Badri, M. A., D. Davis, D. Davis,. 2000. Operations strategy, environmental uncertainty and performance: A path analytic model of industries in developing countries. Omega 28 (2): 155-173.
8. Bagozzi, R. P., Y. Yi, L. W. Phillips,. 1991. Assessing construct validity in organizational research. Admin. Sci. Quart. 36 (3): 421-458.
9. Balakrishnan, S., B. Wernerfelt,. 1986. Technical change, competition and vertical integration. Strateg. Manage. J. 7 (4): 347-359.
10. Beamon, B. M., 1999. Measuring supply chain performance. Int. J. Oper. Prod. Man. 19 (3): 275-292.
11. Bollen, K. A., 1989. Structural Equations with Latent Variables. John Wiley & Sons, New York.
12. Braunscheidel, M. J., N. C. Suresh,. 2009. The organizational antecedents of a firm's supply chain agility for risk mitigation and response. J. Oper. Manag. 27 (2): 119-140.
13. Byrne, P. J., C. Heavey,. 2006. The impact of information sharing and forecasting in capacitated industrial supply chains: A case study. Int. J. Prod. Econ. 103 (1): 401-437.
14. Cachon, G. P., M. Fisher,. 2000. Supply chain inventory management and the value of shared information. Manage. Sci. 46 (8): 1032-1048.
15. Cachon, G., M. A. Lariviere,. 2001. Contracting to assure supply: How to share demand forecasts in a supply chain. Manage. Sci. 47 (5): 629-646.
16. Cao, Q., S. Dowlatshahi,. 2005. The impact of alignment between virtual enterprise and information technology on business performance in an agile manufacturing environment. J. Oper. Manag. 23 (5): 531-550.
17. Carr, A. S., H. Kaynak,. 2007. Communication methods, information sharing, supplier development and performance. Int. J. Oper. Prod. Man. 27 (4): 346-370.
18. Cavusoglu, H., H., Cavusoglu, S., Raghunathan,. 2012. Value of and interaction between production postponement and information sharing strategies for supply chain firms. Prod. Oper. Manag. 21 (3): 470-488.
19. Chatfield, D. C., J. G. Kim, T. P. Harrison, J. C. Hayya,. 2004. The bullwhip effect-Impact of stochastic lead time, information quality, and information sharing: A simulation study. Prod. Oper. Manag. 13 (4): 340-353.
20. Chau, P. Y. K., 1997. Reexamining a model for evaluating information center success using a structural equation modeling approach. Decision Sci. 28 (2): 309-334.
21. Chen, I. J., A. Paulraj,. 2004. Towards a theory of supply chain management: The constructs and measurements. J. Oper. Manag. 22 (2): 119-150.
22. Chiang, W. K., Y. Feng,. 2007. The value of information sharing in the presence of supply uncertainty and demand volatility. Int. J. Prod. Res. 45 (6): 1429-1447.
23. Chin-Chun, H., V. R. Kannan, K. C. Tan, G. K. Leong,. 2008. Information sharing, buyer-supplier relationships, and firm performance. Int. J. Phys. Distrib. Logist. Man. 38 (4): 296-310.
24. Chwelos, P., I. Benbasat, A. S. Dexter,. 2001. Research report: Empirical test of an EDI adoption model. Inform. Syst. Res. 12 (3): 304-321.
25. Dasgupta, S., D. Agarwal, A. Ioannidis, S. Gopalakrishnan,. 1999. Determinants of information technology adoption: An extension of existing models to firms in a developing country. J. Glob. Inf. Manag. 7 (3): 30-40.
26. Devaraj, S., L. Krajewski, J. C. Wei,. 2007. Impact of eBusiness technologies on operational performance: The role of production information integration in the supply chain. J. Oper. Manag. 25 (6): 1199-1216.
27. Dodge, H. R., S. Fullerton, J. E. Robbins,. 1994. Stage of the organizational life cycle and competition as mediators of problem perception for small businesses. Strateg. Manag. J. 15 (2): 121-134.
28. Droge, C., J. Jayaram, S. K. Vickery,. 2004. The effects of internal versus external integration practices on time-based performance and overall firm performance. J. Oper. Manag. 22 (6): 557-573.
29. Ebrahim-Khanjari, N., W. Hopp, S. M. R. Iravani,. 2012. Trust and information sharing in supply chains. Prod. Oper. Manag. 21 (3): 444-464.
30. Ferguson, M., M. E. Ketzenberg,. 2006. Information sharing to improve retail product freshness of perishables. Prod. Oper. Manag. 15 (1): 57-73.
31. Fisher, M., 2007. Strengthening the empirical base of operations management. M&Som-Manuf. Serv. Op. 9 (4): 368-382.
32. Flynn, B. B., B. Huo, X. Zhao,. 2010. The impact of supply chain integration on performance: A contingency and configuration approach. J. Oper. Manag. 28 (1): 58-71.
33. Frohlich, M. T., R. Westbrook,. 2001. Arcs of integration: An international study of supply chain strategies. J. Oper. Manag. 19 (2): 185-200.
34. Frohlich, M. T., R. Westbrook,. 2002. Demand chain management in manufacturing and services: Web-based integration, drivers and performance. J. Oper. Manag. 20 (6): 729-745.
35. Gavirneni, S., 2006. Price fluctuations, information sharing, and supply chain performance. Eur. J. Oper. Res. 174 (3): 1651-1663.
36. Gavirneni, S., R. Kapuscinski, S. Tayur,. 1999. Value of information in capacitated supply chains. Manage. Sci. 45 (1): 16-24.
37. Germain, R., K. N. S. Iyer,. 2006. The interaction of internal and downstream integration and its association with performance. J. Bus. Logist. 27 (2): 29-53.
38. Ha, A., S. Tong,. 2008. Contracting and information sharing under supply chain competition. Manage. Sci. 54 (4): 701-715.
39. Hair, J. F., R. E. Anderson, R. L. Tatham, W. C. Black,. 1998. Multivariate Data Analysis. Prentice Hall, Upper Saddle River, NJ.
40. Hamel, G., 1991. Competition for competence and inter-partner learning within international strategic alliances. Strateg. Manage. J. 12 (S1): 83-103.
41. Handfield, R. B., C. Bechtel,. 2002. The role of trust and relationship structure in improving supply chain responsiveness. Ind. Market. Manag. 31 (4): 367-382.
42. Hillebrand, B., W. G. Biemans,. 2003. The relationship between internal and external cooperation: Literature review and propositions. J. Bus. Res. 56 (9): 735-743.
43. Hillebrand, B., W. G. Biemans,. 2004. Links between internal and external cooperation in product development: An exploratory study. J. Prod. Innovat. Manag. 21 (2): 110-122.
44. Hochwarter, W. A., M. James, D. Johnson, F. R. Ferris,. 2004. The interactive effects of politics perceptions and trait cynicism on work outcomes. J. Leadership. Organ. ST. 10 (4): 44-57.
45. Hu, L., P. M. Bentler,. 1999. Cutoff criteria for fit indices in covariance structure analysis: Conventional criteria versus new alternatives. Struct. Equ. Modeling 6 (1): 1-55.
46. Huo, B., W. Selen, J. Yeung, X. Zhao,. 2008. Understanding drivers of performance in the 3PL industry in Hong Kong. Int. J. Oper. Prod. Man. 28 (8): 772-800.
47. Jain, A., S. Seshadri, M. Sohoni,. 2011. Differential pricing for information sharing under competition. Prod. Oper. Manag. 20 (2): 235-252.
48. Jambulingam, T., R. Kathuria, W. Doucette,. 2005. Entrepreneurial orientation as a basis for classification within a service industry: The case of retail pharmacy industry. J. Oper. Manag. 23 (1): 23-42.
49. Jiang, B., R. C. Baker, G. V. Frazier,. 2009. An analysis of job dissatisfaction and turnover to reduce global supply chain risk: Evidence from China. J. Oper. Manag. 27 (2): 169-184.
50. Jiang, B., G. V. Frazier, D. Heiser,. 2007. China-related POM research: A literature review and suggestions for future research. Int. J. Oper. Prod. Man. 27 (7): 662-684.
51. Kathuria, R., 2000. Competitive priorities and managerial performance: A taxonomy of small manufacturers. J. Oper. Manag. 18 (6): 627-641.
52. Kerlinger, F., 1986. Foundations of Behavioral Research. Holt, Rinehart, and Winston, New York.
53. Kim, S. W., R. Narasimhan,. 2002. Information system utilization in supply chain integration efforts. Int. J. Prod. Res. 40 (18): 4585-4609.
54. King, W. R., T. S. H. Teo,. 1997. Integration between business planning and information systems planning: Validating a stage hypothesis. Decision Sci. 28 (2): 279-308.
55. Krause, D. R., R. B. Handfield, B. B. Tyler,. 2007. The relationships between supplier development, commitment, social capital accumulation and performance improvement. J. Oper. Manag. 25 (2): 528-545.
56. Kumar, S., B. Kadow, M. Lamkin,. 2011. Challenges with the introduction of radio-frequency identification systems into a manufacturer's supply chain-A pilot study. Lect. Notes Bus. Inf. 5 (2): 235-253.
57. Kumar, K., H. G. van Dissel,. 1996. Sustainable collaboration: Managing conflict and cooperation in interorganizational systems. MIS Quart. 20 (3): 279-300.
58. Lane, P., B. Koka, S. Pathak,. 2006. The reification of absorptive capacity: A critical review and rejuvenation of the construct. Acad. Manage. Rev. 31 (4): 833-863.
59. Lee, H., K. So, C. Tang,. 2000. The value of information sharing in a two-level supply chain. Manage. Sci. 46 (5): 626-643.
60. Lee, H. L., V. Padmanabhan, S. Whang,. 1997. The bullwhip effect in supply chains. Sloan Manage. Rev. 38 (3): 93-102.
61. Lee, J. Y., M. Swink, T. Pandejpong,. 2011. The roles of worker expertise, information sharing quality, and psychological safety in manufacturing process innovation: An intellectual capital perspective. Prod. Oper. Manag. 20 (4): 556-570.
62. Lessler, J., W. Kalsbeek,. 1992. Nonsampling Error in Surveys. John Wiley & Sons, New York.
63. Li, J., L. Poppo, K. Zhou,. 2008. Do managerial ties in China always produce value? Competition, uncertainty, and domestic vs. foreign firms. Strateg. Manage. J. 29 (4): 383-400.
64. Li, J., R. Sikora, M. J. Shaw, G. W. Tan,. 2006. A strategic analysis of inter organizational information sharing. Decis. Support Syst. 42 (1): 251-266.
65. Li, L., 2000. An analysis of the sources of competitiveness and performance of Chinese manufacturers. Int. J. Oper. Prod. Manag. 20 (3): 299-315.
66. Li, L., 2005. Assessing intermediate infrastructural manufacturing decisions that affect a firm's market performance. Int. J. Prod. Res. 43 (12): 2537-2552.
67. Li, L., 2006. The effects of information technology implementation on supply chain collaboration. Int. J. Internet Enterp. Manage. 4 (2): 118-134.
68. Li, Z., L. Gao,. 2008. The effects of sharing upstream information on product rollover. Prod. Oper. Manag. 17 (5): 522-531.
69. Li, L., Q. Su, X. Chen,. 2011. Ensuring supply chain quality performance through applying SCOR model. Int. J. Prod. Res. 49 (1): 33-57.
70. Li, S., S. S. Rao, T. S. Ragu-Nathan, B. Ragu-Nathan,. 2005. Development and validation of a measurement instrument for studying supply chain management practices. J. Oper. Manag. 23 (6): 618-641.
71. Loehlin, J. C., 1998. Latent Variable Models (3rd edn.). Lawrence Erlbaum, Hillsdale, NJ.
72. Lovett, S., L. C. Simmons, R. Kali,. 1999. Guanxi versus the market: Ethics and efficiency. J. Int. Bus. Stud. 30 (2): 231-248.
73. MacCullum, R. C., M. W. Browne, H. M. Sugawara,. 1996. Power analysis and determination of sample size for covariance structure modeling. Psychol. Methods 1 (2): 130-149.
74. Mishra, B. K., S. Raghunathan, X. Yue,. 2007. Information sharing in supply chains: Incentives for information distortion. IIE Trans. 39 (9): 863-877.
75. Morash, E. A., S. R. Clinton,. 1998. Supply chain integration: Customer value through collaborative closeness versus operational excellence. J. Marketing Theory Pract. 6 (4): 104-120.
76. Nahm, A., M. Vonderembse, X. Koufteros,. 2003. The impact of organizational structure on time-based manufacturing and plant performance. J. Oper. Manag. 21 (3): 281-306.
77. Narasimhan, R., J. Jayaram,. 1998. Causal linkages in supply chain management: An exploratory study of North American manufacturing firms. Decision Sci. 29 (3): 579-605.
78. Narasimhan, R., S. W. Kim,. 2002. Effect of supply chain integration on the relationship between diversification and performance: Evidence from Japanese and Korean firms. J. Oper. Manag. 20 (3): 303-323.
79. Neely, A., M. Gregory, K. Platts,. 1995. Performance measurement system design. Int. J. Oper. Prod. Man. 15 (4): 80-116.
80. Niu, N., M., Jin, J., Cheng,. 2011. A case study of exploiting enterprise resource planning requirements. Lect. Notes Bus. Inf. 5 (2): 183-206.
81. O'Leary-Kelly, S. W., R. J. Vokurka,. 1998. The empirical assessment of construct validity. J. Oper. Manag. 16 (4): 387-405.
82. Olorunniwo, F. O., X. Li,. 2010. Information sharing and collaboration practices in reverse logistics. Supply Chain Manag. 15 (6): 454-462.
83. Paulraj, A., A. Lado, J. Chen,. 2008. Inter-organizational communication as a relational competency: Antecedents and performance outcomes in collaborative buyer-supplier relationships. J. Oper. Manag. 26 (1): 45-64.
84. Podsakoff, P. M., S. B. MacKenzie, J. Y. Lee, N. P. Podsakoff,. 2003. Common method bias in behavioral research: A critical review of the literature and recommended remedies. J. Appl. Psychol. 88 (5): 879-903.
85. Podsakoff, P. M., D. W. Organ,. 1986. Self-reports of organizational research: Problems and prospects. J. Manage. 12 (4): 531-544.
86. Powell, B., 2008. China's at-risk factories. Time, April 28, Global Bus. 171 (17): 13-14.
87. Prajogo, D., J. Olhager,. 2012. Supply chain integration and performance: The effects of long-term relationships, information technology and sharing, and logistics integration. Int. J. Prod. Econ. 135 (1): 514-522.
88. Pyke, D., J. Farley, D. Robb,. 2002. Manufacturing technology and operations in China: A survey of state-owned enterprises, private firms, joint ventures and wholly-owned foreign subsidiaries. Eur. Manage. J. 20 (4): 356-375.
89. Pyke, D., D. Robb, J. Farley,. 2000. Manufacturing and supply chain management in China: A survey of state-, collective-, and privately-owned enterprises. Eur. Manage. J. 18 (6): 577-589.
90. Roth, A. V., 2007. Applications of empirical science in manufacturing and service operations. M&Som-Manuf. Serv. Op. 9 (4): 353-367.
91. Sanchez, J. I., P. Brock,. 1996. Outcomes of perceived discrimination among Hispanic employees: Is diversity management a luxury or a necessity? Acad. Manage. J. 39 (3): 704-719.
92. Schlie, T., J. Goldhar,. 1995. Advanced manufacturing and new directions for competitive strategy. J. Bus. Res. 33 (2): 103-114.
93. Small, M., 1999. Assessing manufacturing performance: An advanced manufacturing technology portfolio perspective. Ind. Manage. Data Syst. 99 (6): 256-267.
94. Stank, T. P., S. B. Keller, D. J. Closs,. 2001. Performance benefits of supply chain integration. Transport. J. 41 (2): 31-46.
95. Teece, D. J., G. Pisano, A. Shuen,. 1997. Dynamic capabilities and strategic management. Strateg. Manage. J. 18 (7): 509-533.
96. Teo, H. H., K. K. Wei, I. Benbasat,. 2003. Predicting intention to adopt interorganizational linkages: An institutional perspective. MIS Quart. 27 (1): 19-49.
97. Vickery, S. K., J. Jayaram, C. Doge, R. Calantone,. 2003. The effects of an integrative supply chain strategy on customer service and financial performance: An analysis of direct versus indirect relationships. J. Oper. Manag. 21 (5): 523-539.
98. Wakolbinger, T., J. M. Cruz,. 2011. Supply chain disruption risk management through strategic information acquisition and sharing and risk-sharing contracts. Int. J. Prod. Res. 49 (13): 4063-4084.
99. Wang, Q., B., Huo, F., Lai, Z., Chu,. 2010. Understanding performance drivers of third-party logistics providers in mainland China: A replicated and comparative study. Ind. Manage. Data Syst. 110 (9): 1273-1296.
100. Ward, P., H. Zhou,. 2006. Impact of information technology integration and lean/just-in-time practices on lead-time performance. Decision Sci. 37 (2): 177-203.
101. Ward, P. T., R. Duray, K. Leong, C. C. Sum,. 1995. Business environment, operations strategy and performance: An empirical study of Singapore manufacturers. J. Oper. Manag. 13 (2): 99-115.
102. Widaman, K., 1985. Hierarchically nested covariance structure models for multitrait-multimethod data. Appl. Psych. Meas. 9 (1): 1-26.
103. Williams, L. J., J. A. Cote, M. R. Buckley,. 1989. Lack of method variance in self-reported affect and perceptions at work: Reality or artifact. J. Appl. Psychol. 74 (3) 462-468.
104. Xin, K. R., J. L. Pearce,. 1996. Guanxi: Connections as substitutes for formal institutional support. Acad. Manage. J. 39 (6): 1641-1658.
105. Xu, L., 2011. Information architecture for supply chain quality management. Int. J. Prod. Res. 49 (1): 183-198.
106. Yee, T., 2005. Impact analysis of customized demand information sharing on supply chain performance. Int. J. Prod. Res. 43 (16): 3353-3373.
107. Zdravkovic̈, M., H. Panetto, M. Trajanovic̈, A. Aubry,. 2011. An approach for formalising the supply chain operations. Lect. Notes Bus. Inf. 5 (4): 401-421.
108. Zhou, H., W. C. Jr Benton,. 2007. Supply chain practice and information sharing. J. Oper. Manag. 25 (6): 1348-1365.
109. Zhao, X., B. B. Flynn, A. V. Roth,. 2006. Decision Sciences research in China: A critical review and research agenda-Foundations and overview. Decision Sci. 37 (4): 451-496.
110. Zhao, X., B. B. Flynn, A. V. Roth,. 2007. Decision Sciences research in China: Current status, opportunities and propositions for research in logistics, supply chain management and quality management. Decision Sci. 38 (1): 39-80.
111. Zhao, X., B. Huo, B. B. Flynn, J. Yeung,. 2008. The impact of power and relationship commitment on the integration between manufacturers and customers in a supply chain. J. Oper. Manag. 26 (3): 368-388.
112. Zhao, X., B. Huo, W. Selen, J. Yeung,. 2011. The impact of relationship commitment and internal integration on external integration. J. Oper. Manag. 29 (1-2): 17-32.
113. Zhao, X., J. Xie,. 2002. Forecasting errors and the value of information sharing in a supply chain. Int. J. Prod. Res. 40 (2): 311-335.
114. Zhao, X., J., Xie, J., Leung,. 2002a. The impact of forecasting model selection on the value of information sharing in a supply chain. Eur. J. Oper. Res. 142 (2): 321-344.
115. Zhao, X., J. Xie, W. J. Zhang,. 2002b. The impact of information sharing and ordering co-ordination on supply chain performance. Supply. Chain. Manag. 7 (1): 24-40.