Reviewing interfirm relationship quality from a supply chain management perspective
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Qian, Chen; Seuring, Stefan; Wagner, Ralf Article — Published Version Reviewing interfirm relationship quality from a supply chain management perspective Management Review Quarterly Provided in Cooperation with: Springer Nature Suggested Citation: Qian, Chen; Seuring, Stefan; Wagner, Ralf (2020) : Reviewing interfirm relationship quality from a supply chain management perspective, Management Review Quarterly, ISSN 2198-1639, Springer International Publishing, Cham, Vol. 71, Iss. 3, pp. 625-650, https://doi.org/10.1007/s11301-020-00195-5 This Version is available at: https://hdl.handle.net/10419/289062 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public. If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by/4.0/
Vol.:(0123456789) Management Review Quarterly (2021) 71:625–650 https://doi.org/10.1007/s11301-020-00195-5 1 3 Reviewing interfirm relationship quality fromasupply chain management perspective ChenQian1 · StefanSeuring1· RalfWagner2 Received: 20 December 2019 / Accepted: 5 September 2020 / Published online: 23 September 2020 © The Author(s) 2020 Abstract With the overlap of the interfirm relationship quality and supply chain management research in mind, this paper reviewed 100 recent, scientific, English-language papers on interfirm relationship quality based on a categorisation schema derived from a conceptual framework of supply chain management. We aim to contribute to the existing supply chain management literature by providing an insight into the connections of supply chain performance with buyer–supplier relationship quality from the relationship quality scholars’ perspective. Through content analysis, frequency and contingency analysis, we evaluated how the three relationship quality dimensions—information, operational, and relational dimensions—and the three types of supply chain performance—financial and market, operational, and relational performance have been reflected in the current interfirm relationship quality papers and how the scholars have tended to link them to each other. The results reveal that relational dimension plays a key role in SC relationship management and influences performance significantly. Information dimension will affect performance indirectly through relational dimension. However, the impact of the operational dimension on performance varies. In addition, buyers’ and suppliers’ perspectives on the relational drivers of their financial performance may differ. Based on the findings, we suggest promising avenues for future investigation of supply chain relationship and performance. Keywords Relationship quality· Supply chain management· Supply chain performance· Buyer–supplier relationship· Literature review JEL Classification M110· M310 * Chen Qian [email protected] Extended author information available on the last page of the article
626 C.Qian et al. 1 3 1 Introduction Since the beginning of the 20th century, interorganizational relationships between SC partners have become a topic of great importance in the supply chain management (SCM) research (Ricciotti 2019). In a modern approach, supply chain (SC) is defined as “a network of interdependent relationships developed and fostered through strategic collaboration” of SC partners “with the goal of deriving mutual benefits” (Chen and Paulraj 2004, p. 121). Based on this, a highly accepted definition of SCM describes this as the management of a network of relationships within and between interdependent organizations (Stock and Boyer 2009; Hochrein et al. 2015). Dyer and Singh (1998) first introduced the relational view to integrate the concept of relationship quality (RQ) into the analysis of SCs’ competitiveness. Subsequently, the quality of the relationships formed among SC parties has been considered a critical factor, as firms strive to improve performance and develop a sustainable competitive advantage (Nyaga and Whipple 2011). On the other side, the marketing scholars have considered RQ an established construct of relationship marketing, which roots in Business-to-Business (B2B) marketing (e.g., Palmatier etal. 2006). They defined RQ in the B2B settings as a composite measure of the strength of the relationships between two organizations, which include factors such as trust, commitment, long-term orientation, communication, and cooperation (e.g., Palmatier 2008). Reviewing the RQ literature shows that many contributions to contemporary knowledge are derived by challenging interorganizational RQ between business buyers and suppliers—in other words, by considering the SC context(Qian etal. 2020). The RQ scholars have strived to examine various advantages in developing and maintaining high quality business relationships for both selling and buying companies in an SC relationship. For example, they have investigated which RQ characteristics have a positive impact on the operational and/or financial performance of sellers and buyers, and which RQ characteristics would engender greater customer retention or supplier loyalty (e.g., Caceres and Paparoidamis 2007; Fynes etal. 2008; Nyaga and Whipple 2011; Sarmento etal. 2015). Upon consideration of the interorganizational relationship topics discussed in the RQ and SCM research, while their overlap is obvious, it is hardly reflected in scholarly research. Researchers from both domains widely failed to read out of their silos and to adopt the results already published in the other domain for enhancing the own research progress. Therefore, this paper attempts to combine the research perspectives of RQ and SCM on one and the same “basic unit of investigation”—interorganizational RQ in the SC contexts. More specifically, we aim to embed the RQ construct and its consequences that are well established by previous marketing research in a broader theoretical framework taken from SCM research, and thus adopt the results published in the RQ research for enhancing the SCM research progress. For this purpose, we review the published scientific literature on interfirm RQ guided by a framework derived from Leuschner et al.’s (2013) research
627 1 3 Reviewing interfirm relationship quality fromasupply chain… framework of SC integration. Leuschner etal. (2013) synthesized and categorised different factors and constructs used to measure integration between SC partners in three dimensions: information, operational and relational dimension and analysed the relationships between these dimensions and SC performance based on a review of SCM literature. These three dimensions also cover the major factors and constructs used to measure interfirm RQ in the SC context. Consequently, we use Leuschner etal.’s framework to build a categorisation scheme that includes three RQ dimensions—information, operational, and relational dimension—and three types of SC performance outcomes—financial and market, operational, and relational performance—from perspectives of both buyers and suppliers involved in the SC relationships. This categorisation scheme enables a systematic assessment of the RQ papers. Through the literature review, the scope of the three RQ dimensions and the three types of SC performance outcomes reflected in the interfirm RQ papers will be mapped and the ways how scholars linked RQ dimensions to SC performance outcomes will be evaluated and discussed. Based on the literature review, avenues for future researchers to investigate SC relationships will be suggested. Three research questions will be answered: (1) How the information, operational, and relational dimension of RQ have been reflected in the current literature on interfirm RQ in the SC settings? (2) Which SC performances—financial and market, operational, and relational performances have been addressed as the consequence of RQ in the current literature on interfirm RQ in the SC settings? (3) How are the RQ dimensions and the SC performances linked to each other from the RQ scholars’ perspective? So far, there has yet to be a review integrating the RQ and SCM research streams. SCM researchers reviewed papers published in journals within the area of logistics, operations and SCM and ignored the research results published in marketing-related journals (e.g., Terpend etal. 2008; van der Vaart and van Donk 2008; Flynn etal. 2010; Leuschner etal. 2013; Chang etal. 2016). This paper seeks to contribute to the SCM literature by providing insight into (1) the connections of SC performance with buyer–supplier relationships from the RQ scholars’ perspective, (2) the role of different RQ dimensions in affecting firm performance, (3) the similarities and differences of the buyers’ and suppliers’ perspectives on RQ and performance. The remainder of this paper is structured as follows: In the next section, the conceptualization of interfirm RQ and its linkages to SCM is elaborated. Then, the categories for a systematic analysis of the RQ papers are deductively derived from a developed conceptual framework based on the SCM theory. Subsequently, the research methodology is explained. Thereafter, the results of the data analysis are presented and discussed. Based on this, the results are discussed and the suggestions for future research are provided. In addition, the limitations of the paper are elaborated. Finally, the paper concludes with the contributions and the main findings of this study.
628 C.Qian et al. 1 3 2 Interfirm relationship quality fromasupply chain management perspective Applying the concept of RQ to interfirm relationships in the SC context, scholars introduced the concept of SCRQ and defined this as an overall measure of the strength of the relationship between two firms involved in an SC (e.g., Fynes etal. 2008; Su etal. 2008). By focusing on different types of interfirm relationships in SCs (e.g., supplier-manufacturer relationships, manufacturer-distributor relationships, service buyer-service provider relationships, and exporter-importer relationships) and different relationship members’ perspectives (i.e., buyers/suppliers’ perspectives), scholars and practitioners have defined and measured RQ in various ways. Despite the variety of conceptualization and operationalization of RQ, scholars are consistent in arguing that interfirm RQ is a second-order and holistic construct composed of several first-order dimensions capturing the different but related facets of a relationship (e.g., Palmatier etal. 2006; Naudé etal. 2007; Nyaga and Whipple 2011; Jiang etal. 2016). The first-order dimensions include trust, commitment, communication, cooperation, collaboration, long-term orientation, coordination, integration (e.g., Su etal. 2008; Čater and Čater 2010; Obadia and Vida 2011; Nyaga etal. 2013; Jiang etal. 2016). These dimensions refer to some major SCM factors discussed in the SC literature. Some SCM scholars have applied trust, commitment and long-term orientation to characterize “the adoption of a strategic connection between firms in the supply chain” (Leuschner etal. 2013, p. 49). They describe the attitude of a firm towards its relationship partner. Trust is generally described “as existing when one party has confidence in an exchange partner’s reliability and integrity” (e.g., Morgan and Hunt 1994, p. 23). It can be defined as “the extent to which relationship partners perceive each other as credible and benevolent” (Nyaga and Whipple 2011, p. 347). Studies have confirmed that interfirm trust is central to SC relationships (e.g., Delbufalo 2012). Commitment is conceptualized as “an enduring desire to maintain a valued relationship” (Moorman etal. 1992, p. 316). Scholars characterized a committed relationship by the relationship partner’s intention to maintain long-term relationships, which implies the partner’s willingness to make short-term sacrifices and looking forward to achieving long-term benefits (e.g., Chu and Wang 2012). Associated with commitment, long-term orientation refers to the “expectation of relationship continuity” (Jiang etal. 2016, p. 301) and the “focus on long-term goals in the relationship” (p. 306). Jiang etal. (2016) emphasized the relevance of long-term orientation for achieving mutual benefits and a competitive advantage in SC relationships and noted that “whereas the emphasis on short-term business performance reflects transactional qualities, the building of good RQ is oriented toward the long run” (p. 303). This is in concordance with the SCM theory shaped by Chen and Paulraj (2004), who identified that longterm orientation is a central factor for managing buyer–supplier relationships in SCs. In addition to trust, commitment and long-term orientation, communication has been considered an important dimension for constituting interfirm RQ (e.g.,
629 1 3 Reviewing interfirm relationship quality fromasupply chain… Fynes etal. 2008; Su etal. 2008). Scholars have generally defined communication as “the formal as well as informal sharing of meaningful and timely information between firms” (Anderson and Narus 1990, p. 44, see also Nyaga etal. 2013, Sjoerdsma and van Weele 2015, Su etal. 2008). They emphasized that effective exchange of information should take place bi-directionally, frequently, informally, and in a timely manner between SC partners (e.g., Cambra-Fierro and Polo-Redondo 2008; Fynes etal. 2008; Su etal. 2008). Chen and Paulraj (2004) pointed out that communication is one of the key aspects of managing buyer–supplier relationship in SCs. Moreover, Leuschner et al. (2013) have considered information sharing and collaborative communication as the first stage of integration with SC partners. Further, some constructs that describe “the collaborative joint activity development, work processes and coordination decision making among firms in the supply chain” (Leuschner etal. 2013, p. 49) have also been considered the important RQ characteristics. For example, RQ scholars have frequently considered cooperation as one of the important dimensions of RQ (e.g., Čater and Čater 2010; Fynes etal. 2008; Obadia and Vida 2011; Sjoerdsma and van Weele 2015; Su etal. 2008). They described cooperation as “an orientation that reflects a spirit of willingness by one organization to work with another organization” (Payan etal. 2010, p. 549) and “all activities undertaken jointly or in collaboration with others, which is directed towards common interests or achieving rewards” (Su etal. 2008, p. 266). Fynes etal. (2008) considered cooperation in “product design”, “process design”, “forecasting and production planning”, and “quality practices” (p. 66) the important activities for SC partners to work jointly. Some RQ scholars also used the construct collaboration for similar activities. Nyaga etal. (2013) cited a range of firm’s collaborative activities including “joint planning, cost control, quality improvement, developing cross-functional processes, goal setting, performance measurement” (p. 46). Besides, coordination and integration have also been regarded as one of the RQ dimensions (e.g., Kühne etal. 2013; Mysen and Svensson 2010; Sjoerdsma and van Weele 2015). Coordination emphasises the synchronisation of activities and flows (e.g., Barnes etal. 2011). Integration focusses on the degree to which a firm can collaboratively manage tasks and activities across the SC (e.g., Lai etal. 2013). Noticeably, in the SCM literature, collaboration and integration have usually been considered the concepts that are broader than operational level. For example, Kache and Seuring (2014) linked the strategic collaboration and integration to risk and performance in SCs. Van der Vaart and van Donk (2008) considered integration a concept that comprises not only collaborative communication and activities but also firms’ attitude towards SC partners. In contrast, the RQ scholars normally focused on firms’ behaviors when addressing collaboration and integration (e.g., Nyaga etal. 2013). They considered them alongside trust, commitment, communication the firstorder constructs of interfirm RQ (Kühne etal. 2013; Mysen and Svensson 2010). This paper uses the definitions and operationalizations cited in the RQ papers and refers to the joint activities performed by the SC partners when addressing collaboration and integration. Thus, we clustered the constructs cooperation, collaboration, coordination, and integration under an overarching dimension labelled “operational dimension of RQ”.
630 C.Qian et al. 1 3 To sum up, interfirm RQ in an SC refers to a composite measure of the strength of the interfirm relationships between SC partners. The RQ dimensions, i.e., trust, commitment, long-term orientation, communication, cooperation, collaboration, coordination and integration represent the major SCM factors that affect the performance of the collaborating partners and thus their competitive advantage. 3 Analytic category building fromSCM theory For deriving analytic categories to be applied in the analysis of the RQ papers, we introduce the research framework proposed by Leuschner et al. (2013). Derived from this, we developed the conceptual framework (see Fig.1) adopted to guide our systematic assessment. The framework of Leuschner etal. (2013) was selected, because it sheds light on the overlap between RQ constructs and SCM, which was elaborated in Sect.2. Leuschner etal. (2013) synthesized and categorised different factors and constructs used to measure integration between SC partners in three dimensions: information, operational and relational dimensions. Relational dimension refers to “the adoption of a strategic connection between firms in the supply chain characterized by trust, commitment and long-term orientation” (Leuschner et al. 2013, p. 49). Operational dimension refers to “the collaborative joint activity development, work processes and coordination decision making among firms in the supply chain” (p. 49). Information dimension refers to “the coordination of information transfer, collaborative communication and supporting technology among firms in the supply chain” (p. 49). These three dimensions are mutually dependent and affect performance resulting from the individual relationship between the collaborating SC partners. As discussed in Sect.2, the major first-order dimensions of RQ relate to these three dimensions of SCM factors. Fig. 1 Conceptual framework based on Leuschner etal. (2013) for deriving analytic categories
631 1 3 Reviewing interfirm relationship quality fromasupply chain… In addition, Leuschner et al. (2013) categorized different types of performances into three groups of performance outcomes. Financial and market performance is usually measured by, for example, profitability, return on investment, sales, market share or growth in sales and market share. Operational performance comprises a firm’s improvements in key competitive capabilities, including cost, quality, delivery, flexibility and innovation. Relational performance consists of measures related to improvements in partner satisfaction and loyalty or closely related constructs such as relationship retention or enhancement (Leuschner etal. 2013). To distinguish buyers’ and suppliers’ perceptions of relationships and performance, buyers’ and suppliers’ perspectives are separately considered. Based on the developed conceptual framework presented in Fig.1, we list the six main analytic categories and their descriptions for our analysis in Table1. Within each main category, two subcategories that correspond to the supplier’s and the buyer’s perspectives were considered. In other words, we distinguish between buyers’ perceptions of RQ with suppliers and suppliers’ perceptions of RQ with buyers in regard to the information, operational and relational dimension. In respect to SC performance, the buyer and the supplier performance are analysed. According to these categories, we analysed the content of the selected papers on inter-firm RQ. By this means, we mapped the scope of the SCM factors and performance reflected in interfirm RQ studies, and explored their association patterns from the RQ scholars’ perspective. Table 1 Analytic categories and their description Own table based on Leuschner etal. (2013) Main categories and subcategories Description of categories Information dimension IDS: Information dimension of RQ with suppliers IDB: Information dimension of RQ with buyers Refers to the coordination of information transfer, collaborative communication and supporting technology among firms in the SC Operational dimension ODS: Operational dimension of RQ with suppliers ODB: Operational dimension of RQ with buyers Refers to cooperation in joint activities, work processes and coordination decision-making among firms in the SC Relational dimension RDS: Relational dimension of RQ with suppliers RDB: Relational dimension of RQ with buyers Focusses on attitudes and refers to the adoption of a strategic connection between firms in the SC and is characterized by trust, commitment and longterm orientation Financial and market performance FPB: Financial and market performance of buyers FPS: Financial and market performance of suppliers The exhibition of monetary and market performances of a firm in terms of profitability, return on investment, sales, market share, growth in sales and market share, etc. Operational performance OPB: Operational performance of buyers OPS: Operational performance of suppliers Comprises performance in key competitive capabilities, including cost, quality, delivery, flexibility and innovation Relational performance RPB: Relational performance of buyers RPS: Relational performance of suppliers Consists of measures related to an improvement in the buying or selling company’s satisfaction and loyalty or closely related constructs, such as relationship retention or enhancement
632 C.Qian et al. 1 3 4 Research method To analyze the interfirm RQ papers according to the analytic categories predefined (see Table1), a structured literature review (Tranfield etal. 2003) using a content analysis approach is employed. Content analysis “encompasses the analysis of a set of systematically identified literature by means of content analysis and allows a rulegoverned combination of quantitative and qualitative arguments and reproducibility” (Sauer and Seuring 2017, p. 237). Its relevance to supply chain and operations management research has been noted (Seuring and Gold 2012). Following the process model for content analysis (Mayring 2010) as explained by Seuring and Gold (2012), four steps were undertaken in our study: (1) material collection, (2) descriptive analysis, (3) category selection, and (4) material evaluation, which are specified in the following sections. 4.1 Material collection The material collection was based on a systematic search, which was started with the identification of the appropriate search terms. As the aim of this paper is to review the papers on interfirm RQ in the SC context, we applied two classes of search terms: (1) “relationship quality,” (2) “supply chain,” “suppl*,” “inter-firm,” “interfirm,” “inter-organizational,” “interorganizational,” “B2B,” and “business-to-business.” The former class uses the term “relationship quality”, since this is an established construct in the relationship marketing research and represents the major theme of this study. Though this study defined RQ as a second-order construct composed of a wide variety of first-order constructs such as “trust”, “commitment”, “long-term orientation”, “cooperation”, “collaboration”, “coordination”, “integration”, and “communication”, we did not use these constructs as the search terms, in order to have a clear focus on the main theme of the research—RQ. Using all of the first-order constructs as search terms would result in an ambiguous research scope. The latter class encompasses several phrases, to take into account both the inter-firm setting and the SC context for covering all of the related articles on interfirm RQ in the SC context. The search was conducted by using the “title, abstract, keywords” search for all combinations between these two classes of search terms. The databases selected for the systematic search were Web of Science (WOS) (www.webof knowl edge.com), Elsevier (www.scien cedir ect.com), and Emerald (www.emera ldins ight.com). WOS was selected, as it is regarded as having “probably widest range of high-quality scientific journals of all databases” (Sauer and Seuring 2017, p. 238). Its advantage has been stated in comparison with Scopus and Google Scholar, as it “performed the best with total coverage of the journal sample population and also retrieved the most unique items” (Adriaanse and Rensleigh 2013, p. 727). Elsevier and Emerald were
639 1 3 Reviewing interfirm relationship quality fromasupply chain… information exchange. Some studies have also empirically confirmed the positive relationship between information and relational dimension of RQ. For example, Chu and Wang (2012) and Sarmento etal. (2015) considered information exchange and sharing to be an antecedent of trust and commitment. Regarding the association between RQ dimensions and performance, buyers’ perception of relational dimension of RQ with suppliers (RDS) frequently occurs alongside buyers’ relational performance (RPB) (φ = 0.554). Reviewing the related papers, we can confirm that the RQ scholars often linked relational performance of a buying firm (for example, its loyalty or satisfaction) with the degree of trust, commitment or long-term orientation that this firm perceived from its supplier (e.g., Čater and Čater 2010; Hutchinson etal. 2011; Leonidou etal. 2013; Rauyruen and Miller 2007; Sarmento etal. 2015; Ulaga and Eggert 2006; Wu etal. 2015). No other significant frequent co-occurrence of RQ dimension and performance was found in the sample of the papers from the buyers’ view. This reveals that the other associations between RQ dimensions and performance have been discussed relatively less frequently; however, we can still find the papers that discuss these issues. Some studies have analysed and confirmed the positive impact of buyers’ perception of relational dimension of RQ with suppliers on buyers’ operational performance measured by quality and delivery performance (e.g., Nyaga and Whipple 2011), innovation performance (e.g., Chang etal. 2012b; Fang etal. 2011), and cost (e.g., Han and Sung 2008). Furthermore, some scholars have analysed and confirmed that buyers’ financial and market performance is positively correlated to their perception of RQ with suppliers, which is composed of relational and/or operational dimension (e.g., Barnes etal. 2015; Chu and Wang 2012; Han and Sung 2008; Lai etal. 2013; Song etal. 2012). However, some scholars have also pointed to counterexamples. Alejandro etal. (2011) found that neither RQ with supplying firms nor RQ with account managers in the supplying firms affect buyers’ financial performance significantly. Barnes etal.’s study (2011) demonstrates that a cooperative relationship with suppliers does not directly affect but indirectly affects buyers’ financial performance through buyers’ satisfaction with suppliers. In addition, Chang etal. (2012b) found that trust, commitment and information exchange does not affect buyers’ financial performance directly. Few scholars discussed the direct impact of information or operational dimension of RQ on buyers’ performance. For example, Chang etal. (2012b) found that higher degree of information exchange leads to higher innovation. Remarkably, some scholars linked information exchange or sharing to performance mediated by relational dimension of RQ measured by trust and commitment (e.g., Chu and Wang 2012; Sarmento etal. 2015). In addition, a great deal of the papers analysed RQ and performance using a second-order model. This means that these papers examined the aggregate effect of interfirm RQ as composed of several RQ dimensions. For example, Fynes etal. (2008) confirmed the positive relationship between RQ (measured by trust, communication, cooperation and adaptation) and buyers’ operational performance. Leonidou etal. (2013), Su et al. (2008), and Mysen and Svensson (2010) found that RQ (measured by relational, operational and information dimensions) has a positive impact on buyers’ relational performance. Barnes etal. (2015)
640 C.Qian et al. 1 3 observed that RQ (measured by commitment and cooperation) positively affects buyers’ financial performance. In such cases, the effect of an individual RQ dimension on performance is vague. Finally, a significant frequent co-occurrence exists between a buyer’s financial and market performance (FPB) and its operational performance (OPB) as a result of buyers’ perceptions of RQ with suppliers (φ = 0.462). We found that the RQ scholars often combined these two types performance when measuring performance outcomes of RQ (e.g., Fang etal. 2011; Richey Jr etal. 2010). 6 Discussion 6.1 Discussion oftheresults This paper analyses the interfirm RQ studies published in a wide range of and particularly in marketing-related journals, based on a categorisation scheme derived from a theoretical framework taken from SCM research, and therefore it embeds the RQ constructs and its consequences in a broader SCM framework. It contributes to the SCM research by (1) revealing the role of various dimensions of buyer–supplier RQ in affecting SC performance from the RQ scholars’ perspective, (2) discussing the differences between the studies using the buyers’ and suppliers’ perspective. The RQ scholars paid great attention to relational dimension, which focuses on firms’ attitude towards relationship partners and characterizes the strategic connection between firms in SCs. This seems to be in accordance with the finding by van der Vaart and van Donk (2008), who found that attitudes dominated in the items used to measure the integration between SC partners. While relationships formed between SC partners are critical factors for firms to improve performance and develop a sustainable competitive advantage, the establishment of trustful, committed and long-term oriented relationships with the relationship partners play the central role for firms in managing their SC relationships. The RQ studies have generally confirmed that a SC party’s perception of relational dimension of RQ with its SC partner positively affects its relational performance, such as intentions of relationship continuity. This finding supports the study by Leuschner etal. (2013), who found that the relational dimension has most frequently been considered the driver of customer-oriented performance, such as customer satisfaction and customer loyalty. Our study adds to this by reinforcing the importance of relational dimension of RQ for facilitating both buyers’ and suppliers’ loyalty and intentions to maintain the relationships. In addition, the RQ studies have provided evidence that a SC party’ operational performance such as quality, delivery, cost, and innovation is connected to its perception of relational dimension of RQ with its SC partners. This result strengthens the significance of relational dimension, namely the strategic connection between SC partners for firms’ operational performance improvement. Furthermore, our study shows that the RQ scholars tended to emphasize the indirect impact of information dimension of RQ on performance, through relational dimension in particular. For instance, information exchange and sharing has been
641 1 3 Reviewing interfirm relationship quality fromasupply chain… connected to firms’ relational or financial performance mediated by trust and commitment (e.g., Chu and Wang 2012; Sarmento etal. 2015; Wu etal. 2012). This may support the notion of Leuschner etal. (2013), who considered information integration the first stage of integration between SC partners. The RQ studies provides strong supporting evidence that high-quality communication is the antecedent of the adoption of a strategic connection between firms. Besides, the results of the RQ studies on the impact of operational dimension of RQ on performance are inconsistent. Especially, the significant and positive effect of operational dimension on firms’ financial performance is controversial. This can be attributed to the behavioural nature of operational dimension. For example, cooperation in joint activities such as product and process development, planning and quality management are normally based on firms’ investment in personal, equipment, and supporting systems. If the benefits from the cooperative activities cannot compensate for the cost of investment, cooperation can even negatively affect the financial performance (e.g., Barnes etal. 2011). The fact that the operational dimension can have varying results is in line with the finding of Leuschner etal. (2013). Finally, our research also reveals the difference between the RQ studies using the buyers view and the suppliers view. We found that the RQ scholars have generally confirmed the positive impact of suppliers’ perception of relational dimension of RQ with buyers on the level of all three types of suppliers’ performance (relational, operational, and financial performance); however, the relationship between relational dimension of RQ and financial performance is controversial from the buyers’ perspective. This seems to be in line with Van der Vaart and van Donk’s (2008) notion. They believed that there is more face validity for a relationship between improved performance and integration with buyers than integration with suppliers. They argued that “it seems rather optimistic to try to establish relationship between the attitude of a firm towards its suppliers and its financial performance” (p. 50). A reason for this difference might be that financial and market performance is taken as an indicator for potential revenue and profit generation (Lahiri and Kedia 2011). Thus, a good financial and market performance is more likely to be the direct outcome of making business with trustworthy customers via suppliers’ efforts to develop a high-committed and long-term oriented customer relationship. Based on this finding, we argued that buyers’ and suppliers’ perspective on the relational drivers of their financial performance may be different. 6.2 Suggestions forfuture research Based on the results of the study and the discussion above, some suggestions for future researchers are provided. As far as the present state of RQ studies is concerned, research that untangles the relationships between different dimensions of RQ is lacking. The majority of the studies used a second-order model to measure interfirm RQ (e.g., Fynes etal. 2008; Nyaga and Whipple 2011). In these studies, the relationships between the individual RQ dimensions remain unclear. Moreover, as a second-order model investigates the aggregate effect of RQ, the relationships between the individual dimensions and performance seem vague. Consequently,
642 C.Qian et al. 1 3 more research is needed to clarify the relationships between the individual underlying relationship dimensions and their specific effect on SC performance. Providing an insight into these issues would help managers improve their understandings of how SC relationships work and how to enhance performance and thus achieve a competitive advantage by effectively using these relationships. As Palmatier etal. (2006) pointed out, promoting understanding of the key relational drivers of firms’ performance can enhance returns on firms’ relationship investment dramatically. Furthermore, we noticed that the buyers’ and suppliers’ perspectives on the relational drivers of their performance may be different. Consequently, an area of interest for future study would be collecting and comparing data from buyers and suppliers, aiming at providing multiple-channel perspectives of SC relationships and clarifying their similarities and differences. This is particularly important for examining whether the buyer and supplier involved in a relationship could achieve mutual benefit through developing and maintaining a good relationship. In addition, to examine the buyer–supplier relationship embedded in the SC, combining the dyadic view and SC perspective is suggested. While interfirm RQ studies primarily focus on dyadic buyer–supplier relationships and adopt perspectives of suppliers and/or buyers to investigate dyadic relationships, SCM studies have strived to take more entities into account to extend beyond the dyad. By combining the dyadic and SC approaches, an SC-focussed investigation of dyadic relationships embedded in the chain would be useful. It would be particularly interesting to illustrate how buyer–supplier relationships embedded in the chain and the buyer–supplier relationship management decisions affect the SC as a whole and in turn affected by it (Foerstl etal. 2017). A good example was provided by Kühne etal. (2013). They examined the influence of the chain RQ on the SC innovation capacity by collecting data from direct vertical chains composed of a triplet of firms, including a manufacturer, a supplier and a customer, and by analysing two dyadic buyer–supplier relationships (supplier-manufacturer relationships and manufacturercustomer relationships) embedded in the chain. 6.3 Limitations The following aspects should be considered limitations of this paper. First, this paper adopted a contingency analysis aimed at examining how researchers tended to link the constructs instead of ‘[confirming] relationships between predetermined constructs or [quantifying] effect sizes between these constructs’ (Terpend et al. 2008, p. 29). It is less sensitive at detecting a positivism bias than a meta-analysis (Sobh and Perry 2006). Nevertheless, a meta-analysis, which can quantify effect sizes between constructs, would be of interest for future researchers. Second, we reviewed a sample of papers on interfirm RQ guided by a categorisation scheme derived from Leuschner etal.’s (2013) research framework, as the three dimensions considered in their framework cover the major RQ constructs such as trust, commitment, long-term orientation, communication, and cooperative activities. However, Leuschner etal. (2013) focuses on SC integration and performance, which is one of the relevant SCM topics. Connections of RQ to other SCM issues,
643 1 3 Reviewing interfirm relationship quality fromasupply chain… for instance, supplier development, risk management, in which buyer–supplier-relationships play considerable roles, can be explored. Third, the most challenging issue in content analysis is reliably coding during the material evaluation step, which would ideally be ensured by joint coding by several researchers (Seuring and Gold 2012). This was done for a subset of the sample (42 papers), which was separately coded by two coders. To minimise potential bias, after joint coding in the first phase, all cases for which different judgments were made were discussed and resolved. Based on this, a sound coding routine was established and used to analyse the remaining papers in the sample by the single researcher; nevertheless, this is regarded as a limitation of this study. 7 Conclusion In summary, with the overlaps of the interfirm RQ and SCM research in mind, this paper analysed interfirm RQ papers based on analytic categories derived from an SCM framework. It contributes to the existing SCM literature by providing novel insights into the connections of SC performance with the quality of buyer–supplier relationships from the RQ scholars’ perspective. Our study shows that firms’ perceptions of a strategic connection with SC partners characterised by trust, commitment and long-term orientation generally has a positive impact on firm’s relationship retention and loyalty as well as operational performance such as quality, delivery, and innovation. Information transfer and communication can facilitate the strategic connection between firms in SCs, which further lead to firm performance. However, the impact of operational dimension of RQ on firms’ performance varies. In addition, the buyers’ and suppliers’ perspectives on the relational drivers of their financial performance may be different. This suggests future researchers to analyse SC relationships and performance matching the buyers’ and suppliers’ perspectives. Funding Open Access funding enabled and organized by Projekt DEAL. Open Access This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article’s Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article’s Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creat iveco mmons .org/licen ses/by/4.0/.
644 C.Qian et al. 1 3 Appendix Referenced papers for each categories (n = 100) Categories and subcategories Reference number of assigned paper No. of papers analysed in contingency analysis (n = 65) Information dimension IDS IDB See individual subcategories 2, 4, 9, 10, 13, 14, 15, 16, 29, 35*, 36*, 37, 38, 48, 49, 59, 60*, 61, 68, 73, 74, 79, 82, 89, 90, 96 2, 11*, 12*, 24, 28*, 46*, 60*, 61, 73, 96 23 5 Operational dimension ODS ODB See individual subcategories 3*, 4, 5, 11*, 13, 41, 48, 49, 57, 60*, 61, 69*, 76, 79, 81, 82, 83*, 84, 90, 100* 3*, 12*, 20, 24, 39, 41, 46*, 60*, 61, 63*, 64, 100* 14 6 Relational dimension RDS RDB See individual subcategories 1, 2, 3*, 4, 6, 9, 10, 13, 14, 15, 16, 17, 18*, 21, 22, 25, 29, 30*, 32, 33, 34, 35*, 36*, 37, 38, 40, 41, 43, 44, 48, 49, 51*, 57, 58*, 59, 60*, 61, 62, 65, 66, 67*, 69*, 72, 73, 74, 75*, 76, 77*, 78*, 79, 80*, 82, 83*, 84, 85*, 86, 88, 89, 90, 91, 92*, 93, 95, 96, 97*, 98 2, 3*, 7, 8, 11*, 12*, 20, 22, 23, 24, 26, 27*, 28*, 39, 41, 43, 45, 46*, 47, 51*, 52, 54, 60*, 61, 62, 63*, 64, 71*, 73, 87, 95, 96, 97*, 99, 100* 48 23 Financial and market performance FPB FPS See individual subcategories 1, 2, 4, 5, 9, 15, 16, 25, 29, 33, 44, 59, 62, 66, 76, 81, 84, 86 2, 20, 23, 26, 39, 47, 55*, 62, 64, 87, 99 18 10 Operational performance OPB OPS See individual subcategories 2, 9, 15, 22, 25, 29, 41, 49, 59, 61, 62, 76, 79, 84, 98 2, 22, 23, 24, 26, 39, 41, 47, 61, 62 16 10 Relational performance RPB RPS See individual subcategories 1, 2, 5, 6, 10, 13, 14, 17, 19*, 21, 22, 32, 33, 34, 37, 38, 40, 43, 44, 48, 49, 57, 59, 65, 66, 68, 72, 73, 74, 79, 82, 86, 88, 89, 90, 91, 93, 95, 96, 98 2, 7, 8, 22, 23, 26, 43, 45, 52, 54, 96 40 11 *The papers that were not considered in the contingency analysis, because they do not meet the requirement that the paper addresses at least one of the three dimensions of RQ (information, operational, and relational dimension) along with at least one of the three types of performance outcomes (operational, relational, and financial and market performance)
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