Supply chain collaboration aligns order-winning strategy with business outcomes

Abstract

The paper aims to find out whether appropriate choice of collaboration will enable the required order-winners, leading to improved business outcomes. Structural equation modelling (SEM) was employed with cross-sectional data to test the hypothesised relationships among order-winners, modes of collaboration, and business outcomes. Results indicate that firms that focus on flexibility, quality, and delivery should develop strategic collaboration with suppliers to achieve market and innovation improvement. Cost- and quality-focussed firms should develop operational collaboration to achieve resource efficiency. The model allows managers to understand the right alignment of external suppliers while working on their own order-winners being pursued to win business performance.

Keywords

• Manufacturer–supplier collaboration
• Order-winner
• Supply chain dyad
• Structural equation modelling
• Business performance
• Thailand