UNDERSTANDING EFFECTS OF INNOVATIVE AND COLLABORATIVE APPROACHES ON SUPPLY CHAIN PERFORMANCE

Year 2017, Volume: 4 Issue: 2, 125 - 142, 30.06.2017

Hakan Demir Bulent Sezen

https://doi.org/10.17261/Pressacademia.2017.457

Abstract

Purpose- Main goal
of this paper is to perform an exploratory and empirical research on the
interactions of collaboration and innovation elements that are presented in the
literature; co-creation, service dominant logic, open innovation, negative
entropy and entrepreneurship orientation. Moreover, this study aims to examine
the effects of these elements on supply chain performance attributes
(reliability, responsiveness, flexibility, costs and asset management).

Methodology- In order to
understand the effects of innovative and collaborative dynamics on supply chain
performance, prominent logistics service providers and firms with officially
approved R&D departments were surveyed.

Findings- This study
provides evidence on strong relationships between supply chain performance and
co-creation, SDL, and open innovation. One of the findings that grabs our
attention is the remarkable effect of negative entropy on co-creation, SDL and
open innovation. Moreover, according to results, negative entropy has the
highest individual effect on supply chain performance in comparison with other
collaboration and innovation elements.

Conclusion-  This paper highlights the importance of
innovative and collaborative dynamics in supply chain performance measurements.
This research also provides evidence to supply chain performance literature by
suggesting negative entropy as a powerful instrument of integration and
preservation in supply chains. 

Keywords

Supply chain performance, co-creation, open innovation, service-dominant logic, entrepreneurship orientation, negative entropy

References

• Anderson, B.S., Covin, J.G. and Slevin, D.P., (2009). Understanding the relationship between entrepreneurial orientation and strategic learning capability: an empirical investigation. Strategic Entrepreneurship Journal. 3(3). pp.218-240.
• Atuahene-Gima, K., and Ko, A. (2001). An empirical investigation of the effect of market orientation and entrepreneurship orientation alignment on product innovation. Organization science. 12(1). pp.54-74.
• Avolio, B.J., Yammarino, F.J., Bass, B.M. (1991). Identifying Common Methods Variance with Data Collected From a Single Source: an Unresolved Sticky Issue. Journal of Management. 17(3). pp.571-587.
• Azadegan, A. and Dooley, K.J., (2010). Supplier innovativeness, organizational learning styles and manufacturer performance: An empirical assessment. Journal of Operations Management. 28(6). pp.488-505.
• Bagozzi, Richard P. and Yi, Youjae. (1988). On the Evaluation of Structural Equation Models. Journal of Academy of Marketing Science. 16(1). pp.74-94. Ballantyne, D. (2004). Dialogue and its role in the development of relationship specific knowledge. Journal of Business & Industrial Marketing. 19(2). pp.114-123.
• Ballantyne, D., and Varey, R. J. (2006). Creating value-in-use through marketing interaction: the exchange logic of relating, communicating and knowing. Marketing theory. 6(3). pp.335-348.
• Bigliardi, B., Bottani, E. and Galati, F., (2010). Open innovation and supply chain management in food machinery supply chain: a case study. International Journal of Engineering. Science and Technology. 2(6). pp.244-255.
• Bolstorff, P., (2002). How does SCOR measure up. Supply Chain Technology News, pp.22-25.
• Borys, B. and Jemison, D.B. (1989). Hybrid agreements as strategic alliances: theoretical issues in organizational combinations. Academy of Management Review. 14(2). pp.234-49.
• Bowersox, D. J., Closs, D. J., and Cooper, M. B. (2002). Supply chain logistics management. 2nd Edition. New York, NY: McGraw-Hill.
• Battilana, J., Leca, B., and Boxenbaum, E. (2009). How actors change institutions: Towards a theory of institutional entrepreneurship. The Academy of Management Annals. 3(1). pp.65-107.
• Callaway, S. K. and Dobrzykowski, D. D. (2009). Service-oriented entrepreneurship: service-dominant logic in green design and healthcare. Service Science. 1(4). pp.225-240.
• Cenfetelli, R.T. and Bassellier, G. (2009). Interpretation of Formative Measurement in Information Systems Research. Mis Quarterly. 33(4). pp.689-707.
• Chen, Y.C., Li, P.C. and Evans, K.R. (2012). Effects of interaction and entrepreneurial orientation on organizational performance: Insights into market driven and market driving. Industrial Marketing Management. 41(6). pp.1019-1034.
• Chesbrough H.W. (2003). The era of open innovation. MIT Sloan Manag. Rev. 44 (3). pp. 35-38.
• Chesbrough, H.W. (2012). Open innovation: Where we've been and where we're going. Research Technology Management. 55(4). pp.2027.
• Chin, W.W., (1998). The partial least squares approach to structural equation modeling. Modern methods for business research. 295(2). pp.295-336.
• Christopher, M. (2011). Logistics & supply chain management. Fourth Edition. Pearson Education Ltd.
• Covin, J.G., Green, K.M. and Slevin, D.P. (2006). Strategic process effects on the entrepreneurial orientation–sales growth rate relationship. Entrepreneurship theory and practice. 30(1). pp.57-81.
• Dong, B., Evans, K.R. and Zou, S., (2008). The effects of customer participation in co-created service recovery. Journal of the Academy of Marketing Science. 36(1). pp.123-137.
• Dibrell, C. and Moeller, M., (2011). The Impact of a Service-Dominant Focus Strategy and Stewardship Culture on Organizational Innovativeness in Family-Owned Businesses. Journal of Family Business Strategy. 2(1). pp.43-51.
• Dyer, J. H. (2000). Collaborative advantage: Winning through extended enterprise supplier networks. Oxford University Press.
• Fawcett, S.E., Jones, S.L. and Fawcett, A.M. (2012). Supply chain trust: The catalyst for collaborative innovation. Business Horizons. 55(2). pp.163-178.
• Finney, R. Z., Spake, D. F., and Finney, T. G. (2011). Lost in transition? The human influence on marketing's emerging service-dominant logic. Journal of Management and Marketing Research. 6. pp.1-16.
• Flint, D. J., and Mentzer, J. T. (2006). Striving for integrated value chain management given a service-dominant logic for marketing. In R. F. Lusch & S. L. Vargo (Eds). The service dominant logic of marketing: Dialog, debate and directions. pp. 139-149.
• Fornell, C. and Larcker, D.F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research. 18(1). pp.39-50.
• Galbraith, J. (2005). Designing the Customer-Centric Organizations. San Francisco.
• Ganesan, S. (1994). Determinants of long-term orientation in buyer-seller relationships. the Journal of Marketing. 58(2). pp.1-19.
• Goffin, K., Lemke, F., and Szwejczewski, M. (2006). An exploratory study of ‘close’supplier–manufacturer relationships. Journal of operations management. 24(2). pp.189-209.
• Gok, Tarkan. (2014). A Practice About the Effects of Innovative and Negative Entropic Strategies on Corporate Identity. Halic University, Doctoral Thesis.
• Golafshani, Nahid, (2003). Understanding Reliability and Validity in Qualitative Research. The Qualitative Report. 8(4). pp.597–607.
• Grinberg, S. (2007). Pedagogical Risk and Governmentality: Shanty Towns in Argentina in the 21st Century. In trabajo presentado en Risk and Rationalities Conference, Economic & Social Research Council. pp. 29-30.
• Grönroos, C. (2008). Adopting a service business logic in relational business-to-business marketing: value creation, interaction and joint value co-creation. In Otago forum. 2(9). pp.268-287.
• Gunasekaran, A., and Ngai, E. W. (2004). Information systems in supply chain integration and management. European Journal of Operational Research. 159(2). pp.269-295.
• Halbesleben, J. R. and Whitman, M. V. (2013). Evaluating Survey Quality in Health Services Research: a Decision Framework for Assessing Nonresponse Bias. Health services research. 48(3). pp.913-930.
• Hair, Joseph F. Jr., Black, William C., Babin, Barry J. and Anderson, Rolph E. (2010). Multivariate Data Analysis. 7th Edition. Pearson Education. New Jersey. Hamel, G., Doz, Y., and Prahalad, C. (1989). Collaborate with your competitors. Harvard business review. 67(1). pp.133-139.
• Handfield, R.B., Ragatz, G.L., Petersen, K.J. and Monczka, R.M., (1999). Involving suppliers in new product development. California management review. 42(1). pp.59-82.
• Harman, H. H. (1976). Modern factor analysis. Chicago, IL: University of Chicago Press.
• Henseler, J., Ringle, C. M. and Sinkovics, R. R. (2009). The Use of Partial Least Squares Path Modeling in International marketing. Advances in İnternational Marketing. 20(1). pp.277–319.
• Inauen, M., and Schenker-Wicki, A. (2011). The impact of outside-in open innovation on innovation performance. European Journal of Innovation Management. 14(4). pp.496-520.
• Jiang, X., Yang, Y., Pei, Y.L. and Wang, G., (2014). Entrepreneurial orientation, strategic alliances, and firm performance: Inside the black box. Long Range Planning. 49(1). pp. 103-116. Jothimani, D. and Sarmah, S.P., (2014). Supply chain performance measurement for third party logistics. Benchmarking: An International Journal, 21(6), pp.944-963. Karpen, I. O., and Bove, L. L. (2008). Linking SD logic and marketing practice: Toward a strategic service orientation. In Otago Forum. 2(9). pp. 214-237. Kast, R. E., and Rosenzweig, J. E. (1974). Organization and management. New York. Katz, D. and Kahn. R. L. (1978). The social psychology of organizations. 2nd Edition. New York: Wiley. Kocaoğlu, B., Gülsün, B. and Tanyaş, M., (2013). A SCOR based approach for measuring a benchmarkable supply chain performance. Journal of Intelligent Manufacturing. 24(1). pp.113-132. Kock, N. (2015). WarpPLS 5.0 User Manual. Laredo. Texas: ScriptWarp Systems.
• Kreiser, P. M., Marino, L. D., and Weaver, K. M. (2002). Assessing the psychometric properties of the entrepreneurial orientation scale: A multi-country analysis. Entrepreneurship Theory and Practice. 26(4). pp71-94. Lamberti, L., and Paladino, A. (2013). Moving forward with service dominant logic: Exploring the strategic orientations of a service-centred view of the firm. International Journal of Business Science and Applied Management. 8(1). pp.1-15. Lewis, E.F., Hardy, M. and Snaith, B. (2013). An Analysis of Survey Reporting in the Imaging Professions: is the Issue of Non-Response Bias Being Adequately Addressed? Radiography. 19(3). pp.240-245. Liao, S. H., and Kuo, F. I. (2014). The study of relationships between the collaboration for supply chain, supply chain capabilities and firm performance: A case of the Taiwan׳ s TFT-LCD industry. International Journal of Production Economics. 156. pp.295-304. Lichtenthaler, U., (2008). Open innovation in practice: an analysis of strategic approaches to technology transactions. IEEE Transactions on engineering management. 55(1). pp.148-157. Lin, Y., Wang, Y. and Yu, C., (2010). Investigating the drivers of the innovation in channel integration and supply chain performance: A strategy orientated perspective. International Journal of Production Economics. 127(2). pp. 320-332. Lisboa, A., Skarmeas, D., and Lages, C. (2011). Entrepreneurial orientation, exploitative and explorative capabilities, and performance outcomes in export markets: A resource based approach. Industrial Marketing Management. 40(8). pp.1274-1284. Lumpkin, G. T., and Dess, G. G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review. 21(1). pp.135–172. Lumpkin, G. T., and Dess, G. G. (2001). Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life cycle. Journal of business venturing. 16(5). pp.429-451. Lusch, R. F., Vargo, S. L., and Malter, A. J. (2006). Taking a leadership role in global marketing management. Organizational Dynamics. 35(3). pp.264-278. Lusch, R. F., Vargo, S. L., and O’Brien, M. (2007). Competing through service: Insights from service-dominant logic. Journal of retailing. 83(1). pp.5-18. Lusch, R. F. (2011). Reframing supply chain management: a service‐dominant logic perspective. Journal of Supply Chain Management. 47(1). pp.14-18. Madhani, P. M. (2012). Value creation through integration of supply chain management and marketing strategy. The IUP Journal of Business Strategy. 9(1). pp.7-26. Mascarenhas, O. A., Kesavan, R., and Bernacchi, M. (2004). Customer value-chain involvement for co-creating customer delight. Journal of consumer marketing. 21(7). pp.486-496. Merz, M. A., He, Y., and Vargo, S. L. (2009). The evolving brand logic: a service-dominant logic perspective. Journal of the Academy of Marketing Science. 37(3). pp.328-344. Najmi, A. and Makui, A., (2012). A conceptual model for measuring supply chain's performance. Production Planning & Control. 23(9). pp.694-706. Nam, K., and Lee, N. H. (2010). Typology of Service Innovation from Service-Dominant Logic Perspective. J. UCS. 16(13). pp.1761-1775. Nambisan, S. (2002). Designing virtual customer environments for new product development: Toward a theory. Academy of Management Review. 27(3). pp.392-413. Payne, A. F., Storbacka, K., and Frow, P. (2008). Managing the co-creation of value. Journal of the academy of marketing science. 36(1). pp.83-96. Peery, N. S. (1975). General systems theory approaches to organizations: Some problems in application. Journal of Management Studies. 12(3). pp266-275. Pilav-Velić, A., and Marjanovic, O. (2016). Integrating open innovation and business process innovation: Insights from a large-scale study on a transition economy. Information & Management. 53(3). pp.398-408.
• Podsakoff, P.M. and Organ, D.W., (1986). Self-reports in organizational research: Problems and prospects. Journal of management, 12(4), pp.531-544.
• Prahalad, C. K., and Ramaswamy, V. (2004). Co‐creation experiences: The next practice in value creation. Journal of interactive marketing. 18(3). pp.5-14. Ramanathan, U., Gunasekaran, A. and Subramanian, N., (2011). Supply chain collaboration performance metrics: a conceptual framework. Benchmarking: An International Journal. 18(6). pp.856-872. Rauch, A., Wiklund, J., Lumpkin, G. T. T., and Frese, M. (2009). Entrepreneurial orientation and business performance: An assessment of past research and suggestions for the future. Entrepreneurship: Theory and Practice. 33(3). pp.761-787. Read, S., N. Dew, S. Sarasvathy, M. Song and R. Wiltbank. (2009). Marketing Under Uncertainty: The Logic of an Effectual Approach. Journal of Marketing. 73(3). pp.1-18. Ren, S. J., Hu, C., Ngai, E. W. T., and Zhou, M. (2015). An empirical analysis of inter-organisational value co-creation in a supply chain: a process perspective. Production Planning & Control. 26(12). pp.969-980. Runyan, R., Droge, C. and Swinney, J., (2008). Entrepreneurial orientation versus small business orientation: what are their relationships to firm performance?. Journal of Small Business Management. 46(4). pp.567-588. Saguy, I. S., and Sirotinskaya, V. (2014). Challenges in exploiting open innovation's full potential in the food industry with a focus on small and medium enterprises (SMEs). Trends in Food Science & Technology. 38(2). pp.136-148.
• Sarasvathy, S. (2008). Effectuation: Elements of Entrepreneurial Expertise, Edward Elgar Publishing, Cheltenham, UK. Schneider, M., and Somers, M. (2006). Organizations as complex adaptive systems: Implications of complexity theory for leadership research. The Leadership Quarterly. 17(4). pp.351-365. Seifert, D. (2003). Collaborative planning, forecasting, and replenishment: How to create a supply chain advantage. AMACOM Div American Mgmt Assn. New York. Shamah, R.A. and Elsawaby, S.M., (2014). Trust as a nucleus key for open innovation. Journal of Business and Retail Management Research. 9(1). pp.110-128. Shane, S., and Venkataraman, S. (2000). The promise of entrepreneurship as a field of research. Academy of Management Review. 25(1). pp217-226. Sillanpää, I., (2015). Empirical study of measuring supply chain performance. Benchmarking: An International Journal. 22(2). pp.290-308. Simatupang, T.M. and Sridharan, R., (2002). The collaborative supply chain. The International Journal of Logistics Management. 13(1). pp.15-30. Starik, M., and Rands, G. P. (1995). Weaving an integrated web: Multilevel and multisystem perspectives of ecologically sustainable organizations. Academy of Management Review. 20(4). pp.908-935. Stephens, S., (2000). The Supply Chain Council and the Supply Chain Operations Reference (SCOR) model: Integrating processes, performance measurements, technology and best practice. Logistics Spectrum. 34(3). pp.16-18. Stephens, S. (2001). Supply chain operations reference model version 5.0: a new tool to improve supply chain efficiency and achieve best practice. Information Systems Frontiers. 3(4). pp.471-476. Tenenhaus, M., Vinzi, V. E., Chatelin, Y. M., and Lauro, C. (2005). PLS path modeling. Computational statistics & data analysis. 48(1). pp.159205. Theeranuphattana, A. and Tang, J.C., (2007). A conceptual model of performance measurement for supply chains: Alternative considerations. Journal of Manufacturing Technology Management. 19(1). pp.125-148. Torabizadeh, M. E., Noordin, M. Y., and Awaluddin, M. S. (2014). Performance Measurement System for Sustainable Supply Chain Management. Advanced Materials Research. 845. pp.516-520. Traitler, H., Watzke, H. J. and Saguy I. S. (2011). Reinventing R&D in an open innovation ecosystem. Journal of food science. 76(2). pp.R62R68.
• Ulrich, K. T., and Ellison, D. J. (2005). Beyond make-buy: Internalization and integration of design and production. Production and Operations Management. 14(3). pp.315-330.
• Užienė, L. (2015). Open Innovation, Knowledge Flows and Intellectual Capital. Procedia-Social and Behavioral Sciences. 213. pp.1057-1062.
• Van Lancker, J., Wauters, E., and Van Huylenbroeck, G. (2016). Managing innovation in the bioeconomy: An open innovation perspective. Biomass and Bioenergy. 90. pp.60-69.
• Vargo, S., F. Lusch. (2004). Evolving to a New Dominant Logic for Marketing. Journal of Marketing. 68(1). pp.1-17. Vargo, S. L., Maglio, P. P., and Akaka, M. A. (2008). On value and value co-creation: A service systems and service logic perspective. European management journal. 26(3). pp.145-152. Varsei, M., Soosay, C., Fahimnia, B., and Sarkis, J. (2014). Framing sustainability performance of supply chains with multidimensional indicators. Supply Chain Management: An International Journal. 19(3). pp.242-257. Waters, D. (2010). Global Logistics: New Directions In Supply Chain Management. 6th Edition. Kogan Page. Verwaal, E., and Hesselmans, M. (2004). Drivers of Supply Network Governance: An Explorative Study of the Dutch Chemical Industry. European Management Journal. 22(4). pp.442-451. West, J., Salter, A., Vanhaverbeke, W., and Chesbrough, H. (2014). Open innovation: The next decade. Research Policy. 43(5). pp.805-811. Wetzels, M., Odekerken-Schroder, G. and Van Oppen, C. (2009). Using PLS Path Modeling for Assessing Hierarchical Construct Models: Guidelines and Empirical Illustration. MIS Quarterly. 33(1). pp.177-196. Yamazaki, K., Capatina, A., Bouzaabia, R. and Kocoglu, I., (2012). Cross-Cultural Issues Related to Open Innovation in High-Tech Companies from Japan, Romania, Tunisia and Turkey. Revista de Management Comparat International. 13(4). pp.561-573. Zehir, C., Can, E. and Karaboga, T. (2015). Linking Entrepreneurial Orientation to Firm Performance: The Role of Differentiation Strategy and Innovation Performance. Procedia-Social and Behavioral Sciences. 210. pp.358-367. Zhou, K. Z., Yim, C. K., and Tse, D. K. (2005). The effects of strategic orientations on technology- and market-based breakthrough innovations. Journal of Marketing. 69(2). pp.42-60.
• Zwass, V. (2010). Co-creation: Toward a taxonomy and an integrated research perspective. International Journal of Electronic Commerce. 15(1). pp.11-48.