Aki Jääskeläinen and Otto Thitz
The purpose of this paper is to clarify the prerequisites for performance measurement supporting purchaser-supplier relationships and value co-creation. It also explains the…
Abstract
Purpose
The purpose of this paper is to clarify the prerequisites for performance measurement supporting purchaser-supplier relationships and value co-creation. It also explains the causes for the limited use of collaborative measurement.
Design/methodology/approach
Four case companies representing different contextual settings are studied. The primary source of empirical material is an interview study addressed to 24 interviewees. The empirical data are analyzed according to the constructs created as a result of the literature review.
Findings
The results reveal that prevailing performance measurement practices represent a more transactional than relationship-oriented approach to purchaser-supplier collaboration. The technical prerequisites for collaborative performance measurement are mostly not fulfilled, inhibiting the use of performance measurement in a collaborative manner. It is proposed that the differentiation between project and process production types has implications on the importance of collaborative performance measurement.
Research limitations/implications
The paper illustrates the desirable characteristics of performance measurement supporting collaboration. It also presents an application of collaborative performance measurement in a single case context. The research reveals the need to develop non-financial performance measures further in order to facilitate the more proactive use of performance measurement supporting true value co-creation between purchaser and supplier companies.
Originality/value
The empirical research on the topic of performance measurement in purchasing and supply management (PSM) is often limited to intra-organizational measurement and highlights transactional approach to collaboration between parties, although PSM research has otherwise acknowledged the importance of value creation and relationships between organizations.
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Sri Yogi Kottala and Kotzab Herbert
The purpose of this paper is to develop and validate a scale measurement of supply chain operations reference (SCOR)-related performance indicators and proposed constructs…
Abstract
Purpose
The purpose of this paper is to develop and validate a scale measurement of supply chain operations reference (SCOR)-related performance indicators and proposed constructs, SCOR-related performance indicators as practices within the Indian manufacturing sector.
Design/methodology/approach
A literature-based model on SCOR processes with five constructs and respective performance indicators was empirically validated by using a structured questionnaire. A total of 155 respondents among Indian manufacturing sector participated in this research, and the returned questionnaires were analyzed by using structural equation modeling.
Findings
The study established a relationship among the SCOR-related performance indicators and overall supply chain performance indicators (OSCPI). The moderation effect of demographic characteristics, namely, employee size, company age and type of company showed significant differences between SCOR-related performance indicators and overall supply chain indicators.
Research limitations/implications
The scope of the study is limited to specific Indian manufacturing firms. The survey could not represent whole population of manufacturing sector.
Practical implications
The findings assist managers/supply chain practitioners in improving the performance measures identified using the standard framework, i.e., SCOR processes, overall supply chain performance measures as standard practices for Indian manufacturing sector for a profitable and sustainable business growth in global environment.
Originality/value
This research holds a value for suggested practices under SCOR processes and the proposed model for OSCPI, a path finder/performance measurement tool for supply chain professionals in the Indian context.