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International Journal of Production Research

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A structural model of supply chain performance in an emerging economy

Jie Yang
a a

School of Business Administration, University of Houston Victoria, 14000 University Blvd, Sugar Land, TX 77479, USA Published online: 11 Aug 2011.

To cite this article: Jie Yang (2012) A structural model of supply chain performance in an emerging economy, International Journal of Production Research, 50:14, 3895-3903, DOI: 10.1080/00207543.2011.603373 To link to this article: http://dx.doi.org/10.1080/00207543.2011.603373

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International Journal of Production Research Vol. 50, No. 14, 15 July 2012, 38953903

A structural model of supply chain performance in an emerging economy

Jie Yang*
School of Business Administration, University of Houston Victoria, 14000 University Blvd, Sugar Land, TX 77479, USA (Received 1 April 2011; final version received 29 June 2011) Drawing on a knowledge-based view and strategic choice theory, this study develops and empirically tests a conceptual framework to assess the effect of knowledge sharing on the development of supply chain capabilities and the effects of such capabilities on supply chain performance. Employing path analysis, it is shown that strong associations exist between the sharing of both explicit and tacit knowledge and the development of supply chain capabilities, including cost efficiency and innovation capabilities. The results also indicate significant moderating effects of cost and innovation orientations on supply chain capabilities, which in turn exert effects on the improvement of supply chain performance. Managerial and theoretical implications are discussed, and future research directions are also suggested. Keywords: knowledge sharing; capability; orientation; supply chain; performance

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1. Introduction Nowadays, competition is not between firms, but between chains. Prior studies on Supply Chain Management advocate that supply chain capabilities such as process efficiency are determined by interorganisational systems, including external integration and interorganisational breadth and initiation (e.g. Saeed et al. 2005). A large body of research highlights the importance of supply chain capabilities as a critical dynamic resource. For example, supply chain capabilities can be developed by inducing a robust reduction of the bullwhip effect (Pereira et al. 2009) and implementing supply chain process integration (Chen et al. 2009). Supply chains with strategic resources have advantages over chains lacking such resources (e.g. Hult et al. 2004). While firms focus on the improvement of supply chain capabilities, theoretical and anecdotal evidence of knowledges potential for value creation in improving supply chain capabilities remains sparse. Modi and Mabert (2007) revealed a strong connection between operational knowledge transfer activities and supplier performance improvement by surveying 215 supplier development experiences from US manufacturing firms. Narasimhan and Nair (2005) tested a model conceptualising buyer-supplier relationship architecture and performance by sampling members of APICS (Association for Operations Management) and NAPM (National Association of Purchasing Management) in the US. A significant effect of information sharing and trust with suppliers on the supply chain proximity has been identified using a structural equation modelling. Thornhill (2006) proposed a framework of the contingency effects of knowledge and training on the link between firm-level innovation and revenue growth. A linear regression on the data collected from 845 Canadian manufacturing firms shows a significant moderating effect of training on the link between innovation and growth. Supply chain performance is determined by the degree of fit between ideal profiles of knowledge elements and strategies (Hult et al. 2006). A broad body of studies has linked knowledge to supply chain improvement. However, there is a lack of evidence whether such efforts in knowledge management lead to improved supply chain capabilities, thereby creating value for the firm. Furthermore, the role of other factors, such as cost and innovation orientation, is untested in the context of Chinese manufacturing firms. Low-cost defenders and differentiated defenders are two popular strategies proposed by Walker and Ruekert (1987). Cost and innovation orientations match with the two supply chain strategies, respectively. Thus, this study also examines the contingency role of cost and innovation in the relationship between knowledge sharing and supply chain capabilities. There are two types of knowledge, explicit and tacit knowledge (Grant 1996). Firms share explicit knowledge through the codification process, while they share tacit knowledge through personalisation. For the buyer and supplier dyad, cost efficiency and innovation capability are two critical measures for supply chain
*Email: jieuhv@gmail.com
ISSN 00207543 print/ISSN 1366588X online 2012 Taylor & Francis http://dx.doi.org/10.1080/00207543.2011.603373 http://www.tandfonline.com

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capabilities. While establishing theoretical foundations for knowledge sharing and a firms orientation, the following three research questions are proposed. Does knowledge sharing (explicit and tacit knowledge) create value in improving supply chain capabilities (cost efficiency and innovation capabilities)? Which roles do cost and innovation orientations play in the improvement of supply chain capabilities? Do cost efficiency and innovation capabilities improve supply chain performance? The paper has been organised as follows. First, theoretical background and hypotheses development are presented. Then, research methods are discussed, and analysis and results are explained. Finally, the paper concludes with a discussion of implications, limitations and suggested future research.

2. Theoretical background and hypotheses development This study is grounded in the knowledge-based view and strategic choice theory. The knowledge-based view asserts that knowledge contributes significantly to an intangible strategic resource in supply chains (Grant 1996, Hult et al. 2006). Nonaka and Konno (1998) stated that for the sharing of explicit knowledge, explicit knowledge can be combined with existing knowledge through cyber Ba, which is supported in collaborative environments by means of information technology to share the codified documentation. Codification is an effective strategy for sharing explicit knowledge. The codification of explicit knowledge can be achieved through a variety of techniques such as cognitive mapping, decision trees, knowledge taxonomies and task analysis (Dalkir 2007). The sharing of tacit knowledge is a socialisation process through originating Ba, which is a world where individuals share feelings, emotions, experiences and mental models. The socialisation process includes joint activities. It emphasises a face-to-face communication for the sharing of technical and cognitive knowledge that is personal and hard to formalise in the documentation. Personalisation is a strategy focusing on developing social network, and tacit knowledge is shared through managed conversation. Strategic choice theory illuminates how the two knowledge strategies interweave with low-cost defenders and differentiated defender strategies (Walker and Ruekert 1987). Low-cost defenders focus on lowering costs of supply chain activities to keep a viable market demand. On the other hand, differentiated defenders emphasise creating value by offering innovative products to the volatile market. This strategy requires high investment in research and development and the knowledge sharing process. Accordingly, this study takes the firms cost and innovation orientations into consideration since the orientations are critical to the knowledge strategies in achieving high supply chain capabilities. In line with the two strategies of low-cost defenders and differentiated defenders, this study includes cost and innovation orientation in the conceptual model as two moderators to assess the effects of cost and innovation orientations on the links between knowledge sharing and supply chain capabilities. In the interface between sharing knowledge and improving supply chain capabilities, the sharing of explicit knowledge (through codification) and tacit knowledge (through personalisation) fits the low-cost and differentiated defenders strategies, respectively, in their efforts to improve supply chain capabilities.

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2.1 Effects of knowledge sharing on supply chain capabilities Explicit knowledge is viewed as information because of its codifiability. A high degree of explicitness is associated with a high degree of articulability (Nonaka and Takeuchi 1995). Codifiable or explicit product-based knowledge transfers effortlessly compared to less articulable knowledge (Wagner and Buko 2005). The amount of optimal current knowledge sharing efforts is lower when both buyers and suppliers have already made prior knowledge sharing efforts (Samaddar and Kadiyala 2004). Information sharing and trust between buyer and supplier exert a direct positive effect on supply chain proximity (Narasimhan and Nair 2005), which brings buyer and supplier closer and makes explicit knowledge sharing seamless for the partners. By sharing the documented information through information technology, the buyer and supplier dyad can achieve a reduced cycle time, lowered operational cost, and improved product quality due to the simultaneous access to the required information. As a result, the unit cost of the product and manufacturing overhead costs are reduced. Tacit knowledge is contextual and gained through experience and interactions among individuals and between individuals and processes (Nidumolu 2001). Tacit knowledge is best shared through face-to-face communication since it is embedded into the practices and communications of individuals (Fahey and Prusak 1998). Through individual communications and informal meetings, the knowledge and skill base are building up for enhanced creativity within the organisation, which enables the firm to create innovative products to meet the quickly changing needs of customers. A collaborative supply chain through effective knowledge sharing enhances continuous

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innovation (Soosay et al. 2008). The firms ability to recognise the informations value, assimilate it and apply it to commercial ends is critical to the firms innovative capacity (Cohen and Levinthal 1990). Thus, Hypothesis 1. Explicit knowledge sharing with suppliers is positively related to the improvement of the buyers cost efficiency. Hypothesis 2. Tacit knowledge sharing with suppliers is positively related to the improvement of the buyers innovation capabilities.

2.2 Moderating effects of cost and innovation orientations on supply chain capabilities Knowledge strategies focusing more on codification are appropriate when a firm is cost oriented because sharing codified and documented knowledge is not expensive. When a firm is cost oriented, it emphasises utilising existing information without largely investing in acquiring new knowledge. A cost orientation is likely to facilitate the valueharnessing process of cost efficiency from explicit knowledge sharing. Tacit knowledge sharing requires a substantial investment in promoting an originating Ba for socialisation (Nonaka and Konno 1998). An innovation-oriented firm is able to create value for customers by continuously offering new products through new idea creation, brain storming, intensive research and development, and incentives for creativity. Such firms have an organisational culture of innovation. An innovation orientation promotes an atmosphere of creativity and new product offerings, which originate from the effective tacit knowledge sharing. It is posited that Hypothesis 3. The relationship between explicit knowledge sharing and cost efficiency will be stronger when a cost orientation exists. Hypothesis 4. The relationship between tacit knowledge sharing and innovation capabilities will be stronger when an innovation orientation exists.

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2.3 Effects of supply chain capabilities on supply chain performance For the buyer and supplier dyad, lower operational costs are significantly related to the excellence of the dyads. Innovation capabilities are a reflection of skills and accumulated new knowledge that are exercised through organisational processes. This enables the firms to make use of their assets and functions as a key success factor (Day 1994). These capabilities enable a firm to maintain a competitive advantage with a focus on creating value for customers. It has been found that performance measures are determined by the firms capabilities (Morash and Lynch 2002). To achieve superior performance, a supply chain must improve its innovation capability to fit the market characteristics of its products. The value congruency suggests that after a firm has developed minimum supply chain capabilities (e.g. cost efficiency and innovation capabilities) to be order qualified, it should concentrate on those capabilities and performance metrics that support value creation. In this process, the firm reduces cycle time, saves resources and increases its performance image in the marketplace (Morash 2001). Therefore, Hypothesis 5. Cost efficiency exerts a positive effect on supply chain performance. Hypothesis 6. Innovation capabilities exert positive effects on supply chain performance.

3. Methods 3.1 Sample and data collection Data has been collected in Shanghai to test the above hypotheses by means of a survey questionnaire sent to the top 500 firms classified as manufacturing in the Shanghai Statistics Bureaus industry classification system. The key informant approach has been widely used in empirical studies because of the knowledge of the key informants, access to strategic information and familiarity with the environment of the firms. A pilot study was undertaken to ensure that respondents encountered no difficulties in completing the survey questionnaire. Minor changes have been made according to the feedback in the pilot study. The questionnaire was sent to these firms, together with a letter explaining the purpose of this study and offering to share the research results if respondents returned the completed questionnaire. A senior manager completed the survey on behalf of his/her firm. The respondents from the firms include chief executive officer, chief operating officer, president and other managers, because of their knowledge of the operations of their businesses and privilege

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J. Yang Table 1. Profile of the respondent firms. Sample firm characteristics Number of employees 1400 401800 8011200 12011600 16012000 2001 or above Unknown Industries Chemicals Electronics Telecommunication Mechanical engineering Pharmaceuticals Construction Automobile manufacturing New materials and energy Others (e.g. textiles, etc.) Percentage 42.3% 10.2% 6.6% 5.1% 4.4% 24.1% 7.3% 10.7% 6.3% 8.2% 28.4% 21.7% 12.1% 6.5% 3.4% 2.7%

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to access the necessary data for the survey. Table 1 shows the profile of the respondent firms. Sample firm characteristics such as number of employees of the firm and industry it belongs to are shown in the Table 1. The surveyed firms represented different industries and included those from the following sectors: electronics, mechanical engineering, telecommunications, chemicals, pharmaceuticals, construction, automobile manufacturing and new materials and energy. Follow-up phone calls were made to all potential respondents who had not returned the surveys after four weeks. A comparison of the early responding firms with the late responding firms showed that these groups did not differ in terms of number of employees, sales revenue and years in business in this study (p 4 0.01). We did the same comparison between the responding and non-responding firms, and the results showed no issue of non-response bias. As a result, 137 usable questionnaires were returned, yielding an effective response rate of 27%.

3.2 Measures All multi-item variables were measured on a seven-point scale to ensure a uniform scale width. Some items were adapted and re-worded to fit the present context. The measures in this study were drawn from several sources. The measure of explicit knowledge sharing was adapted from Tan et al. (2002), which includes two items reflecting the extent to which the firm uses a formal knowledge sharing agreement to share information with suppliers. The measure of tacit knowledge sharing was based on the studies of Hult and Ferrell (1997), Nonaka and Konno (1998) and Jones (2005), and includes three items reflecting the existence of Ba, a context for sharing knowledge with suppliers. For cost orientation, the measure was based on the work of Kotha and Vadlamani (1995) and Homburg et al. (1999), capturing the degree of improvement of operating efficiency and production processes and the reduction of operating cost. Innovation orientation was measured by the three items developed by Hurley and Hult (1998), reflecting the extent to which the technical innovation is accepted, management actively seeks innovative ideas, and innovation is perceived as risky and is resisted. Cost efficiency was measured by two items drawn from Swink et al. (2005), reflecting the firms unit cost and total manufacturing overhead cost. To measure innovation capability, we adopted the measures from the work of Calantone et al. (2002), tapping the degree of knowledge and skill base, emphasis on creativity, value creation for customers and organisational intelligence. Supply chain performance was adopted from Narasimhan and Nair (2005), indicating the degree of performance in terms of market share, return on assets (ROA), average selling price, product quality and customer service levels as compared to the respondent firms major industrial competitors. We acknowledge that the potential problems of perceptual measures may have led to a common method bias. To detect the threat of common method variance

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associated with the use of perceptual measures, we conducted Harmons one factor test, as suggested by Podsakoff and Organ (1986). Seven factors with eigenvalues greater than one were extracted from all the measurement items, and they altogether explained 85.32% of the variance, with the first factor accounting for 24.01% of the variance. Since no single factor emerged that accounted for most of the variance, the common method variance did not appear to be a problem in this study (Podsakoff and Organ 1986). 3.3 Reliability and validity analyses In examining the convergent and discriminant validity of the theoretical constructs, we performed confirmatory factor analysis on the measurement model using Lisrel. The fit indices suggest a satisfactory fit for the model (2 544.90, p 0.00, df 209, CFI 0.93, IFI 0.93, NNFI 0.91). The results of this analysis and the proportion of variance extracted for each construct are summarised in Table 2. The proportion of variance extracted

Table 2. Construct measurement, reliability and confirmatory factor analysis.

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Measures Explicit knowledge sharing ( 0.85; proportion of variance extracted: 0.78) 1. Use formal knowledge sharing agreement/corporate guideline with suppliers. 2. Our suppliers have the same formal information as we have. Tacit knowledge sharing ( 0.80; proportion of variance extracted: 0.51) 1. There exists a shared context for sharing knowledge with suppliers and customers. 2. We always analyse unsuccessful endeavours and communicate the lessons learned widely with suppliers and customers. 3. Suppliers and customers are encouraged to express their ideas. Cost orientation ( 0.89; proportion of variance extracted: 0.74) 1. Improving the operating efficiency of the business is a top priority. 2. We have a continuing overriding concern for operating cost reduction. 3. We continuously seek to improve production processes so that we can lower costs. Innovation orientation ( 0.72; proportion of variance extracted: 0.67) 1. Technical innovation based on research results is readily accepted. 2. Management actively seeks innovative ideas. 3. Innovation is readily accepted in program/project management. Cost efficiency ( 0.88; proportion of variance extracted: 0.79) 1. Unit cost. 2. Total manufacturing overhead cost. Innovation capability ( 0.87; proportion of variance extracted: 0.64) 1. Our knowledge and skill base is building up at the right pace. 2. Our firm placed emphasis on creativity through substantial investment in R&D. 3. Our firm is able to identify and create new value for customers. 4. Our firm has harnessed organizational intelligence and managed technology to increase innovation. Supply chain performance ( 0.79; proportion of variance extracted: 0.51) 1. Please indicate the level of your firms performance in terms of market share as compared to your major industrial competitors. 2. Please indicate the level of your firms performance in terms of return on assets as compared to your major industrial competitors. 3. Please indicate the level of your firms performance in terms of average selling price (higher performance means higher average price) as compared to your major industrial competitors. 4. Please indicate the level of your firms performance in terms of overall product quality as compared to your major industrial competitors. 5. Please indicate the level of your firms performance in terms of overall customer service levels as compared to your major industrial competitors. Model fit index 2 544.90 (p 0.00), df 209, CFI 0.93, IFI 0.93, NNFI 0.91

Standardised loading 0.79 0.97 0.91 0.54 0.64 0.78 0.86 0.93 0.74 0.89 0.82 0.95 0.82 0.79 0.71 0.86 0.84

0.55 0.70 0.75 0.86 0.66

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estimates of all the theoretical constructs were above the 0.5 threshold and were found to be greater than the squared correlation between any pair of them. The results suggested that the measurement items share common variance with their hypothesised constructs more than with the other constructs, offering evidence of discriminant validity. The measures and scale reliability for the theoretical constructs are reported in Table 2. All theoretical constructs had a Cronbach  above 0.70, indicating a good evaluation of reliability of these constructs. The results of the confirmatory factor analysis also show that all the measurement items loaded on the expected factors had loadings above 0.50.

4. Analysis and results We examined the hypothesised structural relationships using path analysis by means of Lisrel. The completely standardised parameter estimates and t-values for each hypothesised path are presented in Table 3. Overall, the results indicate that the overall fit of the model is acceptable (2 28.71, p 0.00, df 9, CFI 0.95, IFI 0.95, NFI 0.92, GFI 0.94). As a result, hypotheses H2, H3, H4 and H6 are supported (p 5 0.01). H6 does not receive support. Unexpectedly, the results indicate a negative relationship between explicit knowledge sharing to cost efficiency, which is contradictory to the proposed hypothesis. Hypothesis 1 predicts a positive effect of explicit knowledge sharing on cost efficiency. Contrary to the expectation, the results suggest a negative relationship between these two measures ( 0.43, t 3.19). Hypothesis 2 proposed a positive association between tacit knowledge sharing and innovation capability, and results support this hypothesis at significance level p 5 0.00 ( 0.28, t 3.53). Cost orientation has a significant moderating effect on the link between explicit knowledge sharing and cost efficiency ( 0.49, t 3.65), indicating that Hypothesis 3 is strongly supported. On the other hand, innovation orientation exerts a significant effect on the association between tacit knowledge sharing and innovation capability ( 0.62, t 7.86), which strongly supports Hypothesis 4. However, the effect of cost efficiency on supply chain performance is marginal, thus, Hypothesis 5 is not supported. The results of the analysis also show a strong relationship between innovation capability and supply chain performance, indicating a support for Hypothesis 6. To summarise, this study examines: (1) the effect of explicit knowledge sharing on cost efficiency and the moderating effect of cost orientation on the link; (2) the effect of tacit knowledge sharing on innovation capability and the moderating effect of innovation orientation on the connection; and (3) the effects of cost efficiency and innovation capability on supply chain performance. Results show that four out of six hypothesised relationships are strongly supported. In particular, explicit knowledge sharing and tacit knowledge sharing have been shown to have significant effects on supply chain cost efficiency and innovation capability, respectively, and the links are strengthened by the cost and innovation orientations. A surprising finding of the study is that a strong negative relationship between explicit knowledge sharing and cost efficiency has been identified. Supply chain performance is dependent on innovation capability. Contrary to our expectations, cost efficiency does not contribute to the improvement of supply chain performance.

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Table 3. Path coefficients for the structural equation model. Proposed path H1 H2 H3 H4 H5 H6 Explicit knowledge sharing to cost efficiency Tacit knowledge sharing to innovation capability Explicit knowledge sharing_cost orientation Tacit knowledge sharing_innovation orientation Cost efficiency to supply chain performance Innovation capability to supply chain performance Expected sign 0.94 0.92 0.95 0.95 Path coefficient 0.43** 0.28*** 0.49*** 0.62*** 0.16 0.38*** t-statistic 3.19 3.53 3.65 7.86 1.90 4.49

Overall fit indices: Goodness of fit index (GFI) Normed fit index (NFI) Comparative fit index (CFI) Incremental fit index (IFI) Note: **p 5 0.01; ***p 5 0.001.

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5. Discussion and conclusion This study has examined the direct effect of knowledge sharing on the improvement of supply chain capability and the moderating effects of cost and innovation orientations on these relationships. It has also assessed the effects of cost efficiency and innovation capability on supply chain performance. The results provide partial support to the hypotheses and shed light on the importance of explicit and tacit knowledge sharing, and the mediating role of cost and innovation orientations on the improvement of supply chain capability. This study extended the literature on knowledge sharing and supply chain capability from knowledge-based and strategic choice perspectives. In particular, the findings suggest that tacit knowledge sharing exerts a significant effect on innovation capability. Unexpectedly, explicit knowledge sharing is negatively associated with cost efficiency. A possible explanation for this finding might be that the relationship between explicit knowledge sharing and cost efficiency is curvilinear. There exists a curvilinear relationship between cost of knowledge acquisition for a new product domain and financial performance of the new product: moderate levels of cost of knowledge acquisition produce the lowest financial performance; high and low costs of knowledge acquisition result in higher financial performance of new products (Yang et al. 2002). Similarly, knowledge sharing through codification increases cost efficiency, which reflects the improved financial performance. However, when it reaches a certain level, the cost efficiency will decrease with increased sharing of explicit knowledge. Furthermore, low-cost defenders are seldom at the head of chain development practices (Hult et al. 2006). A marginal relationship between cost efficiency and supply chain performance can be explained by the firms strategic orientation. A firm with cost orientation usually adopts low-cost defender strategy in doing business with its suppliers, which achieves a high level of cost efficiency, but the lack of adaptive innovation and offering of products to volatile markets results in a low level of customer satisfaction. Thus, high cost efficiency does not lead to the improvement of supply chain performance.

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5.1 Managerial and theoretical implications Based on the findings of this study, several implications are offered to practitioners and researchers. In line with the knowledge-based view and strategic choice theory, the findings shed light on achieving a high level of supply chain capability. The results show that innovation orientation and tacit knowledge sharing interweave for the improvement of innovation capabilities. The finding supports our theorising, which asserts that personalisation strategy is best employed for tacit knowledge sharing. It suggests that a manager should put more efforts to construct Ba for knowledge sharing and creation. In particular, originating Ba facilitates the implementation of personalisation through the socialisation process. Approximately, 8090% of a firms knowledge is tacit knowledge residing in people, thus, top management of the firm should invest heavily in building Ba for the organisation so that employees can share tacit knowledge through face-to-face communication to harvest the great value of tacit knowledge. Knowledge creation in a supply chain through various Ba has also been testified by Wu (2008). As discussed in prior literature, when competition and cooperation coexist, information and knowledge sharing in a collaborative supply chain plays a crucial role in achieving superior performance (e.g. Cheng et al. 2008, Sezen 2008). Second, this study reveals a strong connection between innovation capability and supply chain performance. The managers of Chinese manufacturing firms have suggested focusing on the creativity and product innovation by continuously building the knowledge and skill base and substantially investing in research and development to create new value for customers. This is consistent with the assertion that applying innovative ideas through collaborative supply chain partners creates a meta-value chain that brings new products to customers as well as adding value to the other supply chain members (Rodriguez et al. 2008). Third, building on the knowledge-based view and strategic choice theory, this study fill a research gap in the Supply Chain Management literature by providing empirical support for theorised links between sharing of explicit and tacit knowledge and the improvement of supply chain capabilities in the context of Chinas transition economy. When the codification and personalisation processes of explicit and tacit knowledge sharing through Ba match lowcost defenders and differentiated defenders strategies, supply chain capabilities can be improved.

5.2 Future research This study was subject to some shortcomings that limited the interpretation of the results, and we will leave these for future studies. First, we used cross-sectional data to test the research model and the hypotheses, which captured the

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perceptions of manufacturing executives at a point in time. Cross-sectional data failed to capture the continuous process of knowledge sharing and development of supply chain capabilities. It may be desirable to conduct a longitudinal study to complement this research endeavour to gain understanding of the mechanism of the effect of knowledge sharing on supply chain capabilities. Second, this study assessed only the links between knowledge sharing and two supply chain capabilities, including cost efficiency and innovation capability, in the manufacturing context. Further research can extend this study by including more relevant theoretical constructs. For instance, it would be interesting to include some variables relating to supply chain agility to understand their collective association with knowledge sharing and supply chain performance. Finally, the data of this study was collected from Chinese manufacturing firms, which may possess cultural differences from their western counterparts. Although we tried to reduce such differences by conducting the research in Shanghai, which is considered an international business city, it is unreasonable to assume that the findings of this study can be identical in companies with a western culture. Future work may consider the cultural dimension on the improvement of supply chain capabilities and performance.

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