Relational Factors in Supply Chain Performance Measurement

Firms have recognized the importance of integrating processes across the supply chain (SC) as a further step in order to be more successful (cf. Simchi-Levi et al. 2003), but they often reach little consensus on how to measure SC performance properly, or on which factors are crucial for a superior performance. The complex networks of relationships, in which firms operate, make the measurement of SC performance a necessity but measuring cost savings alone and paying no attention to both leveraging the expertise to SC partners as well as adopting adequate global performance metrics will not allow firms to reduce inefficiencies and to experience superior performance (cf. Ramdas and Spekman 2000). Successful supply chain management may only be achieved by implementing proper SC metrics, however, no empirical research was found that dealt with the effects of relationship constructs on the use of performance metrics. Most research studies conducted so far focused on the effects of the distribution of power and dependence among firms on performance; thus, going a step further, this study investigated the effects of central relationship management constructs, such as trust, control (achieved power), and dependence, on the use of particular SC metrics as well as on performance.