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http://dx.doi.org/10.5762/KAIS.2014.15.12.7025

Study of the Effects of Supplier Monitoring on Shop floor Productivity  

Cho, BooYun (Dept. of Business Administration, Jeju National University)
Kang, Gi-Choon (Dept. of Economics, Jeju National University)
Hyun, MinCheol (Dept. of Business Administration, Jeju National University)
Publication Information
Journal of the Korea Academia-Industrial cooperation Society / v.15, no.12, 2014 , pp. 7025-7039 More about this Journal
Abstract
Focal companies (hereafter called buyers) adopt outsourcing practices from a supply chain management strategy to be competitive. Buyers face the bridge transfer after outsourcing contracts, and the monitoring practices would be the only control mechanism left to prevent losing control over the suppliers. This study suggests the set of monitoring practices (i.e., capability, activity and outcome monitoring) as the independent variables to enhance the buyer-supplier collaboration and supplier's performance. In addition the buyer's efforts of monitoring are assumed to influence the buyer's shop floor productivity mediated by the supplier's performance and buyer-supplier collaboration. The results showed that the monitoring practices are meaningful antecedents to the supplier's performance and buyer-supplier collaboration, which fully mediates between the monitoring practices and buyer's shop floor productivity. The mediating role of the buyer-supplier collaboration between activity monitoring and shop floor productive has been rejected, because the negative effect of activity monitoring on buyer-supplier collaboration conflicts with the positive impact of buyer-supplier collaboration on shop floor productive. The theoretical contribution and managerial implications with limitations have been discussed.
Keywords
Activity Monitoring; Capability Monitoring; Output Monitoring; Supplier Integration; Outsourcing Performance; Shop Floor Productivity;
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