Browse > Article
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;
Citations & Related Records
연도 인용수 순위
  • Reference
1 Heizer, J., & Render, B., Operations Management, 9th Ed, Pearson Education, 2008.
2 Cowell, D. W., The Marketing of Service, William Heinemann Ltd, London, 1988.
3 Grover, V., Cheon, M. J., & Teng, J. T. C., A descriptive study on the outsourcing of information systems functions," Information Management, 27(-), 33-41, 1994.   DOI   ScienceOn
4 Harmancioglu, N., Portfolio of controls in outsourcing relationships for global new product development, Industrial Marketing Management, 38(4), 394-403, 2009. DOI: http://dx.doi.org/10.1016/j.indmarman.2009.04.001   DOI
5 Lacity, M. C., & Hirschheim, R. A., The Information System Outsourcing Bandwagon, Sloan Management Review, 35(1), 73-86, 1993.
6 Kakouris, A. P., Polychronopoulos, G., & Binioris, S., Outsourcing Decisions and the Purchasing Process: A System-Oriented Approach, Marketing Intelligence and Planning, 24(7), 708-729, 2006. DOI: http://dx.doi.org/10.1108/02634500610711879   DOI
7 Quinn, J. B., & Hilmer, F. G., Strategic Outsourcing, The McKinsey Quarterly, 1(-), 47-70, 1995.
8 Stump, R. L., & Heide, J. B., Controlling Supplier Opportunism in Industrial Relationships, Journal of Marketing Research, 33(4), 431-441, 1996. DOI: http://dx.doi.org/10.2307/3152214   DOI   ScienceOn
9 Cho, B. Y., Three Essays on the Services Outsourcing Management, dissertation of Korea University , 2011.
10 Ellram, L. M., Tate, W. L., & Billington, C., Offshore outsourcing of professional services: A transaction cost economics perspective, Journal of Operations Management, 26(2), 148-163, 2008. DOI: http://dx.doi.org/10.1016/j.jom.2007.02.008   DOI
11 Cho, B. Y., & Kang, J. J., An Investigation on the Impacts of Buyer"s Relationship Commitment on Buyer"s Switching Inertia in Services Outsourcing with Supplier"s Collaboration as a Mediator, Journal of e-commerce, 12(4), 183-201, 2012.
12 Mclaughlin, C. P., & S. Coffey., Measuring Productivity in Services, international Journal of Service Industries Management, 1(-), 46-64, 1990.   DOI
13 Saraph, J. V., Benson, P. G., & Schroeder, R. G., An instrument for measuring the critical factors of quality management, Decision Sciences, 20(4), 810-829, 1989. DOI: http://dx.doi.org/10.1111/j.1540-5915.1989.tb01421.x   DOI
14 Monks, J. J., Operations Management, McGraw-Hill, 1987.
15 Murray, J. Y., M. Kotabe & A. R. Wildt., Strategic and Financial Performance Implications of Global Sourcing Strategy: A Contingency Analysis, Journal of International Business Studies, 26(1), 181-202, 1995. DOI: http://dx.doi.org/10.1057/palgrave.jibs.8490171   DOI
16 Handifield, R. B., The new supply chain model, APICS, January, 24, 2002.
17 Shepherd, C., & H. Gunter., Measuring Supply Chain Performance: Current Research and Future Directions, International Journal of Productivity and Performance Management, 55(3,4), 242-258, 2006.   DOI   ScienceOn
18 Stank, T. P., Keller, S. B. & Daugherty, P. J., Supply Chain Collaboration and Logistical Service Performance, Journal of Business Logistics, 22(1), 29-48, 2001. DOI: http://dx.doi.org/10.1002/j.2158-1592.2001.tb00158.x   DOI   ScienceOn
19 Fynes, B., S. de Burea., & C. Voss., Supply Chain Relationship Quality, the Competitive Environment and Performance, International Journal of Production Research, 43(16), 3303-3320, 2005. DOI: http://dx.doi.org/10.1080/00207540500095894   DOI
20 Choi, J, U., PURCHASING & SUPPLY MANAGEMENT, PAKYOUNGSA, 2013.
21 Heizer. J., & Render. B., Operations Management, Pearson Education Limited, 2013.
22 Zhao, X., B. Huo,, W. Selen., J. Hoi., & Y. Yeung., The impact of internal integration and relationship commitment on external integration, Journal of Operations Management, 29(1,2), 17-32, 2010.
23 Narashimhan, R., & J. Jayaram., Causal Linkages in Supply Chain Management: An Exploratory study of North American Manufacturing Firms, Decision Sciences, 29(3), 579-605, 1998. DOI: http://dx.doi.org/10.1111/j.1540-5915.1998.tb01355.x   DOI   ScienceOn
24 Dyer, J., & H. Singh., The relational view: Cooperative strategy and sources of interorganizational competitive advantage, Academy of Management Review, 23(4), 660-679, 1998. DOI: http://dx.doi.org/10.2307/259056
25 Dyer, J. H., Specialized Supplier networks as a Source of Competitive Advantage : Evidence From the Auto Industry, Strategic Management Journal, 17(4), 271-292, 1996. DOI: http://dx.doi.org/10.1002/(SICI)1097-0266(199604) 17:4<271::AID-SMJ807>3.0.CO;2-Y
26 Marien, E. J., The Four Supply Chain Enablers, Supply Chain Management Review, 60-68, 2000.
27 Hur, D., J. L. Hartley., & C. K. Hahn., An Exploration of Supply Chain Structure in korean Companies, International Journal of Logistics, 7(2) 151-164, 2004. DOI: http://dx.doi.org/10.1080/13675560410001694165   DOI
28 Bensaou, M., Inter-organization Cooperation and the Use IT: An Empirical Comparison fo U.S. and Japanese Supplier Relations, Information Systems Research, 8(2), 107-124, 1997. DOI: http://dx.doi.org/10.1287/isre.8.2.107   DOI   ScienceOn
29 Chenhall, R., & D. Morris., The Impact of Structure, Environment and Interdependence on the Perceived Usefulness of Management Accounting Systems, The Accounting Review, Vol.61, No.1, 16-35, 1986.
30 Joshi, A. W., Continuous supplier performance improvement: Effects of collaborative communication and control, Journal of Marketing, 73(1), 133-150, 2009. DOI: http://dx.doi.org/10.1509/jmkg.73.1.133   DOI
31 Challagalla, G. N., & Shervani, T. A., Dimensions and types of supervisory control: Effects on salesperson performance and satisfaction, Journal of Marketing, 60(1), 89-105, 1996. DOI: http://dx.doi.org/10.2307/1251890   DOI   ScienceOn
32 Heide, J. B., Wathne, K. H., & Rokkan, A. I. Interfirm monitoring, social contracts, and relationship outcomes, Journal of Marketing Research, 44(3), 425-433, 2007. DOI: http://dx.doi.org/10.1509/jmkr.44.3.425   DOI
33 Marvel, M. K., & Marvel, H. P., Outsourcing oversight: A comparison of monitoring for in-house and contracted Services, Public Administration Review, 67(3), 521-530, 2007. DOI: http://dx.doi.org/10.1111/j.1540-6210.2007.00734.x   DOI   ScienceOn
34 Barthelemy, J., Quelin, B. V., Complexity of outsourcing contracts and ex post transaction costs: An empirical investigation, Journal of Management Studies, 43(8), 1775-1795, 2006. DOI: http://dx.doi.org/10.1111/j.1467-6486.2006.00658.x   DOI
35 Eisenhardt, K. M., AGENCY THEORY - AN ASSESSMENT AND REVIEW, Academy of Management Review, 14(1), 57-74, 1989. DOI: http://dx.doi.org/10.2307/258191
36 Jaworski, B. J., Stathakopoulos, V., & Krishnan, H. S., Control combination in marketing: Conceptual framework and empirical evidence, Journal of Marketing, 57(1), 57-69, 1993. DOI: http://dx.doi.org/10.2307/1252057   DOI   ScienceOn
37 Oliver, R. L., & Anderson, E., An empirical test of the consequences of behavior and outcome-based sales control systems, Journal of Marketing, 58(4), 53-67, 1994. DOI: http://dx.doi.org/10.2307/1251916
38 Villena, V. H., E. Revilla., & T. Y. Choi., The dark side of buyer-supplier relationships: A social capital perspective, Journal of Operations Management, 29(-), 561-576, 2011.   DOI
39 Han, H. S., Lee, J. N., & Seo, Y. W., Analyzing the impact of a firm's capability on outsourcing success: A process perspextive, Information and Management, 45(1), 31-42, 2008. DOI: http://dx.doi.org/10.1016/j.im.2007.09.004   DOI   ScienceOn
40 Lee, J. N., The impact of knowledge sharing, organizational capability and partnership quality on IS outsourcing success, Information and Management, 38(5), 323-335, 2001. DOI: http://dx.doi.org/10.1016/S0378-7206(00)00074-4   DOI   ScienceOn
41 Petersen, K. J., R. B. Handfield & G. L. Ragatz., A model of supplier integration into new product development, Journal of Product Innovation Management, 20(4), 284-299, 2003. DOI: http://dx.doi.org/10.1111/1540-5885.00028   DOI   ScienceOn
42 Lee, J. N., Huynh, M. Q., & Hirschheim, R., An integrative model of trust on IT outsourcing: Examining a bilateral perspective, Information Systems Frontiers, 10(2), 145-163, 2008. DOI: http://dx.doi.org/10.1007/s10796-008-9066-7   DOI   ScienceOn
43 Clements, S., Donnellan, M., & Read, C., CFO Insights: Achieving High Performance through Finance Business Process Outsourcing, John Wiley & Sons, New Jersey, 2004.
44 Birou, L. M., S. E. Fawcett., & G. M. Magnan., The product life cycle: a tool for functional strategic alignment, International Journal of Purchasing and Materials Management, 34(2), 37-51, 1998. DOI: http://dx.doi.org/10.1111/j.1745-493X.1998.tb00047.x
45 Farndale. E., Paauwe, J., & Boselie, P., An exploratory study of governance in the intra-firm human resources supply chain, Human Resource Management, 49(5), 849-868, 2010.   DOI
46 Fitzsimmons, J. A., & Fitzsimmons, M. J., Service Management: Operations, Strategy, Information Technology, 6th ed., McGraw-Hill/Irwin, New York, 2008.
47 Kim, J. J., Kim, D. S., An Empirical Study of the Effect of the Buying Company's Efforts and Supply Flexibility on Purchasing Performance under Environment Uncertainty, Journal of the Korean Production and Operations Management Society, 22(2), 235-254, 2011.
48 Tully, S., You'll Never Guess Who Really Makes," Fortune, 3(October), 124-128, 1994.
49 Zhang, Q., M. A. Vonderembse., & J. Lim., Value Chain Flexibility: A Dichotomy of Competence and Capability, International Journal of Production Research, 40(3), 561-583, 2002. DOI: http://dx.doi.org/10.1080/00207540110091695   DOI
50 Swafford, P. M., S. Ghosh., & N. Murthy., The Antecedents fo Supply Chain Agility of a Firm: Scale Development and Model Testing, Journal of Operations Management, 24(2), 170-188, 2006.   DOI
51 Kraljic, P., Purchasing Must Become Supply Management, Harvard Business Review, 61(5), 109-117, 1983.
52 Dong, Y., Carter, C. R., & Dresner, M. E., JIT purchasing and performance: an exploratory analysis of buyer and supplier perspectives, Journal of Operation Management, 19(4), 471-483, 2001. DOI: http://dx.doi.org/10.1016/S0272-6963(00)00066-8   DOI   ScienceOn
53 Anderson, J. C., & Gerbing, D. W., Structural Equation Modeling in Practice: a Review and Recommended Two-step Approach, Psychological Bulletin, 103(3), 411-423, 1998. DOI: http://dx.doi.org/10.1037/0033-2909.103.3.411
54 Choi, T. Y., & Hartley, J. L. An exploration of supplier selection practices across the sypply chain, Journal of Operrations Management, 14(4), 333-343, 1996. DOI: http://dx.doi.org/10.1016/S0272-6963(96)00091-5   DOI   ScienceOn
55 Avittathur, B., & P. Swamidass., Matching plant flexibility and supplier flexibility: Lessons from small suppliers of U.S. manufacturing plants in India, Journal of Operations Management, 25(3), 717-735, 2007. DOI: http://dx.doi.org/10.1016/j.jom.2006.05.015   DOI
56 Hallgren, M., & J. Olhager., Flexibility configurations: empirical analysis of volume and product mix flexibility, Omega, 37(4), 394-403, 2009. DOI: http://dx.doi.org/10.1016/j.omega.2008.07.004
57 Hair, J.F., Anderson, R.E., Tatham, R.L., & Black, W.C., Multivariate D-92.ata Analysis with Readings, 5th Ed., Prentice Hall, New Jersey, 1998.
58 Bagozzi, R.P., & Yi, Y., (1988), On the Evaluation of Structural Equation Models, Journal of the Academy of Marketing Science, 16(1), 74-94, 1988. DOI: http://dx.doi.org/10.1007/BF02723327   DOI   ScienceOn
59 Fornell, C., & Larcker, D.F., Structural Equation Models with Unobservable Variables and Measurement Error: Algebra and Statistics, Journal of Marketing Research, 18(3), 382-388, 1981. DOI: http://dx.doi.org/10.2307/3150980   DOI   ScienceOn
60 Chae, S, I., The Practice of Social Research, Seoul, BMNBOOKS, 2005.
61 Sobel, M.E., Direct and Indirect Effects in Linear Structural Equation Models, Sociological Methods & Research, 16(1), 155-176, 1987. DOI: http://dx.doi.org/10.1177/0049124187016001006   DOI
62 Baron, R.M., & Kenny, D.A., The Moderator-Mediator Variable Distinction in Social Psychological Research: Conceptual, Strategic, and Statistical Considerations, Journal of Personality and Social Psychology, 51(-), 1173-1182, 1986.   DOI
63 Soper, D.S., Sobel Test Calculator for the Significance of Mediation (Online Software), 2013. http://www.danielsoper.com/statcalc.