Aligning Supply Chain Relational Strategy with the Market Environment: Implications for Operational Performance

Abstract

This study melds the relational view and the environment-strategy-performance perspective to develop a theoretical framework and hypotheses specifying how supply chain partnership strategy as a response to competitive intensity and product complexity may influence operational performance. Empirical findings support the conventional wisdom relating collaboration and operational performance. For firms in industries that market complex products, the study finds evidence of a direct relationship with all three supply chain strategy factors, that is, resource specificity, resource complementarity, and collaboration. Interestingly, competitive intensity is positively associated with resource specificity, but is negatively associated with the need for resource complementarities. The findings provide an initial strategic response framework for appropriately aligning supply chain strategy with market context factors to achieve operational performance improvements.