Supply chain collaboration: conceptualisation and instrument development

Facing intensified global competition, firms strive for greater supply chain collaboration by leveraging the resources and knowledge of key suppliers and valued customers to reduce uncertainty, lower transaction costs, build core competence, capitalise on opportunities for learning and knowledge creation, and improve competitive position. This study examines the nature and characteristics of supply chain collaboration. Through an extensive literature review, it conceptualises supply chain collaboration as seven interconnecting elements: information sharing, goal congruence, decision synchronisation, incentive alignment, resource sharing, collaborative communication, and joint knowledge creation. It develops valid and reliable instruments to measure supply chain collaboration through rigorous empirical and statistical analysis including structured interviews, Q-sort, and a large-scale study. Predictive validity is evaluated by demonstrating a strong and positive relationship between a firm's level of supply chain collaboration and its performance. The definitions and measures that result provide a rich and structured understanding of supply chain design and operation. They also facilitate empirical research and provide analytical consistency that enables greater sharing and comparison of research results.