Supply chain integration and collaboration - a relationship management approach

Abstract

In this research we examined, by means of case studies, the mechanisms by which relationships can be managed and by which communication and cooperation can be enhanced in sustainable supply chains. The research was predicated on the contention that the development of a sustainable supply chain depends, in part, on the transfer of knowledge and capabilities from the larger players in the supply chain. Relationship management is a system that provides a collaborative environment and a framework for all participants to adapt their behaviour to project (and longer term) objectives. It is about open communication, sharing resources and experiences, exposing the ‘hidden’ risks in the project. The case studies suggest that leadership has a strong influence on the relationship management climate which needs to be facilitated and nurtured. Commitment and action by senior management (and, so, parent organisations) can have a strong impact on the team and relationship management culture, indicating relationship management has a high chance of failure when there is inadequate support from top management. Like all relational contracting approaches, trust between relationship management partners is important. The authors conclude that without a positive approach to relationship management a sustainable industry and continuous improvement are not possible. So, the authors postulate that a ‘sustainable supply chain’ is essentially tautological without the existence of a clear relational vision that leads to both soft and hard infrastructure to assist and inform decision making and encourage relationship building. The research adopted a triangulated approach in which quantitative data were collected by questionnaire, interviews were conducted to explore and enrich the quantitative data and case studies were undertaken in order to illustrate and validate the findings. Handy’s view of organisational culture, Allen & Meyer’s concepts of organisational commitment and Van de Ven & Ferry’s measures of organisational structuring have been combined into a model to test and explain how collaborative mechanisms can affect supply chain sustainability It has been shown from the research that the degree of match and mismatch between organisational culture and structure has an impact on staff’s commitment level. A sustainable supply chain depends on convergence – that is the match between organisational structuring, organisation culture and organisation commitment.