The role of supply chain analytics capability and adaptation in unlocking value from supply chain relationships

Abstract

The performance and survival of many supplier firms depend on key buyer–supplier relationships (BSRs). A difficult task in managing such relationships is creating value when there is a lack of justice. This study examines whether supply chain analytics capability (SCAC) and adaptation can prove useful for suppliers in extracting greater value from supply chain relationships. The role of SCAC in driving value has not been evaluated in contexts where independent decision making is constrained, such as the case for a power disadvantaged supplier. We use resource orchestration theory and social exchange theory to develop a model that explains how SCAC and adaptation can work in BSRs and test it using data from North American suppliers. The results show that in relationships marked by low levels of procedural justice, SCAC becomes critical in extracting value from the relationship, while in relationships marked by high levels of procedural justice, adaptation is more important. The findings lead to actionable insights on how suppliers can leverage SCAC and adaptation to maximize value from supply chain relationships. A key insight is that benefits from firm-level capabilities, like SCAC, depend on relational attributes in the supply chain context.

Keywords:

• Supply chain analytics capability
• adaptation
• justice
• supply chain relationships

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 The practitioner sources are not listed here for space considerations. The list can be requested from the corresponding author.

Additional information

Notes on contributors

Muhammad Usman Ahmed

Muhammad Usman Ahmed, PhD, is an Assistant Professor of Supply Chain and Operations Management at the University of Michigan Flint. His research interests include supply chain management, supply chain analytics, and sustainability. His research has been published in the International Journal of Operations and Production Management, Journal of Operations Management, International Journal of Production Economics, and Production Planning and Control, among others. Prior to entering academia, Muhammad has worked in managerial and engineering roles.

Asad Shafiq

Asad Shafiq, PhD, is an Assistant Professor of Management at the College of Business & Economics at California State University, Fullerton. His research explores the multi-faceted linkages between the natural environment, social issues and firm performance. He has published in the Decision Sciences Journal, International Journal of Operations and Production Management, International Journal of Production Economics, Human Resource Management, and the Journal of Purchasing & Supply Management. Prior to entering academia, Asad worked in the FMCG industry, where he held a number of senior management positions.

Farzad Mahmoodi

Farzad Mahmoodi, PhD, is Joel Goldschein '57 Endowed Chair Professor in Supply Chain Management, and the Director of Clarkson’s Global Supply Chain Management Program. This program has been ranked as one of the Top-20 supply chain management programs in the nation by U.S. News & World Report for 17 years. Dr. Mahmoodi’s research interests are in supply chain systems design and management, and systems modelling and simulation. He has published more than 90 articles in a variety of journals, including Journal of Operations Management, Decision Sciences Journal, International Journal of Production Research, European Journal of Operational Research, International Journal of Operations and Production Management, Computers and Industrial Engineering, Computers and Operations Research, International Journal of Management Science-Omega, Production Planning & Control, International Journal of Production Economics, Journal of Cleaner Production, as well as edited books and conference proceedings. Dr. Mahmoodi has been the recipient of numerous teaching, research and leadership awards.