Investigating the effect of environmental uncertainty on supply chain collaboration and operational performance

Bae, Hee Sung

Abstract

Supply chain collaboration is an important strategic consideration for manufacturing firms, which need to effectively manage the globalization of the value chains of manufacturing firms. Like any other manufacturing firms, Korean manufacturing firms in China have to structure a whole new value creation network. Moreover, from the viewpoint of manufacturing firms, the analysis of the market and resources is the basis of formulating strategy. Consequently, this research investigates the impact of environmental uncertainty as an antecedent of supply chain collaboration based upon previous investigations. Because prior literature has indicated that supply chain collaboration could create value and superior performance in a supply chain and perhaps also in newly created supply networks, this research aims to find the reasons behind improved performance. In this regard, there are two aims of this research: 1) to confirm the relationship between supply chain collaboration and operational performance and 2) to verify the roles of environmental uncertainty on the relationship between supply chain collaboration and operational performance.

The thesis refers to prior research and contingency theory, resource-based theory, strategic choice theory, relational view and information processing theory to explain the relationships between the above variables (environmental uncertainty, supply chain collaboration and operational performance). Conceptual and operational definitions of the variables are extracted from prior research and applied to this research. A questionnaire was sent to Korean manufacturing firms in China and 208 data collected by the survey are used in the analysis. To achieve the aims of this research, various analytical methods are used. First, reliability and validity of the questionnaire instrument are verified as follows. The characteristic of the responding firms is proved through descriptive statistics. Content validity is verified by extracting items, verification by experts and the average of items. Estimation and purification of data are carried out. These include data screening, evaluation of assumptions (linearity, homoscedasticity and normality), internal consistency and exploratory factor analysis. Construct validity is tested by convergent validity through confirmatory factor analysis, discriminant validity and multicollinearity analysis. Second, the hypotheses are tested by two analytical methods: an analysis of structural equation modelling and moderating effect analysis.

In this research, contingency theory explains the relationship between environmental uncertainty and supply chain collaboration and resource-based theory, relational view; information processing theory and strategic choice theory explain the relationship between supply chain collaboration and operational performance. These theoretical relationships are verified by empirical tests. The results of the analyses can elucidate various theoretical implications. First, the relationship between supply chain collaboration and operational performance is significantly verified and this means that Korean manufacturing firms reduce costs and improve service through internal collaboration with departments and external collaboration with suppliers and customers. Second, the role of environmental uncertainty on the relationship between supply chain collaboration and operational performance is a moderator and this is explained by contingency theory and fit as moderation. The former is to start from the supposition; that is, there is no organisational structure which satisfies all conditions. From this viewpoint, firms need to find the fittest structure which is equal to the environment which they face and this is connected with high performance. The latter has two viewpoints such as a moderator and a mediator. In this research, environmental uncertainty is the role of a moderator on the relationship between supply chain collaboration and operational performance. When Korean manufacturing firms in China face environmental uncertainty, they acquire high performance through enhancing supply chain collaboration. The results provide managers with managerial implications as follows. First, managers should grasp their present level of supply chain collaboration and formulate supply chain strategy for performance improvement. Second, the analysis of environment is a precondition to perform supply chain strategy, followed by high performance. If managers perform supply chain collaboration on the basis of these implications, they can achieve high cost performance and high service performance.

Citation

Bae, H. S. Investigating the effect of environmental uncertainty on supply chain collaboration and operational performance. (Thesis). University of Hull. https://hull-repository.worktribe.com/output/4217648

• Thesis Type: Thesis
• Deposit Date: Jan 21, 2016
• Publicly Available Date: Feb 23, 2023
• Keywords: Business
• Public URL: https://hull-repository.worktribe.com/output/4217648
• Additional Information: Business School, The University of Hull
• Award Date: May 1, 2014