• Journal of the Korean Operations Research and Management Science Society
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• v.40 no.3
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• pp.73-95
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• 2015

Firms have reexamined and restructured their supply chain based on a long-term and partnership perspective as a firm's competitive advantage increasingly relies on its supply chain capability. A number of scholar works has provided evidence to support the positive effects of supply chain collaboration; however, the relationship between collaboration and performance is still inconclusive. This study refuses to have blinded faith on supply chain collaboration, but rather this paper suggests that the contribution of collaboration to supply chain performance improvement can be limited and vary along the contextual characteristics of a buyer-supplier relationship. Moreover, we argue that the relationship between supply chain collaboration and performance can be curvilinear. This paper provides and test hypotheses regarding the relationship between supply chain collaboration and performance. By using data of the Manufacturing Panel Survey (MPS), this study empirically validates the hypotheses. Overall, the results of the study support our hypotheses about a limited contribution of supply chain collaboration to manufacturing performance, which is opposite to a conventional expectation. Particularly, the effects of supply chain collaboration differ depending on the dimensions of performance such as customer satisfaction, quality, cost, delivery, and flexibility as well as the dependency in the buyer-supplier relationship. Moreover, the results of the study indicate that supply chain collaboration and performance may have curvilinear relationships in a certain context. Through a comprehensive model and empirical evidence, this study presents a better understanding of supply chain collaboration and provokes an open discussion about the effects of collaboration. This study also provides insightful implications for managers of buyers as well as suppliers who wish to foster stronger supply chain performance via a deep buyer-supplier relationship and collaboration.