Supply chain alignment as process : Contracting, learning and pay-for-performance

Selviaridis, Konstantinos and Spring, Martin (2018) Supply chain alignment as process : Contracting, learning and pay-for-performance. International Journal of Operations and Production Management, 38 (3). pp. 732-755. ISSN 0144-3577

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Purpose The purpose of this paper is to understand how buyers and suppliers in supply chains learn to align their performance objectives and incentives through contracting. Design/methodology/approach Two longitudinal case studies of the process of supply chain alignment were conducted based on 26 semi-structured interviews and 25 key documents including drafts of contracts and service level agreements. Findings The dynamic interplay of contracting and learning contributes to supply chain alignment. Exchange-, partner- and contract framing-specific learning that accumulates during the contracting process is used to (re)design pay-for-performance provisions. Such learning also results in improved buyer-supplier relationships that enable alignment, complementing the effect of contractual incentives. Research limitations/implications The study demonstrates that the interplay of contracting and learning is an important means of achieving supply chain alignment. Supply chain alignment is seen as a process, rather than as a state. It does not happen automatically or instantaneously, nor is it unidirectional. Rather, it is a discontinuous process triggered by episodic events that requires interactive work and learning. Practical implications Development of performance contracting capabilities entails learning how to refine performance incentives and their framing to trigger positive responses from supply chain counterparts. Originality/value The paper addresses supply chain alignment as a process. Accordingly, it stresses some important features of supply chain alignment.

Item Type:
Journal Article
Journal or Publication Title:
International Journal of Operations and Production Management
Additional Information:
This article is (c) Emerald Group Publishing and permission has been granted for this version to appear here. Emerald does not grant permission for this article to be further copied/distributed or hosted elsewhere without the express permission from Emerald Group Publishing Limited.
Uncontrolled Keywords:
?? learningpay-for-performanceinter-organizational relationshipscontractingsupply chain alignmentstrategy and managementdecision sciences(all)management of technology and innovation ??
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Deposited On:
09 Oct 2017 10:06
Last Modified:
14 Feb 2024 01:04