The mediating role of supply chain collaboration on the relationship between technology, trust and operational performance

Abstract

Purpose The purpose of this paper is to understand the link between trust, technology and supply chain collaboration and their impact on firms’ operational performances. Design/methodology/approach Based on extant literature, a hypothesized model was developed and tested using structural equation modelling (i.e. AMOS). A survey was conducted to collect data from the supply chain managers of fast-moving consumer goods (FMCG) companies (more precisely in the food and beverage sector) in Thailand. Findings The study findings suggest that through an ongoing relationship, trust evolves and is shaped over time and can form a competitive capability that may not be easy for competitors to replicate. Both trust and technology are found to have significant impact on supply chain collaboration and on firms’ operational performances. Research limitations/implications One of the major limitations of the study is that the data were obtained from one single economy, which restricts its generalizability across other economies. The study was a cross-sectional and descriptive sample of the FMCG industry at a given point in time. A more stringent test of the relationships between trust, technology, supply chain collaboration and operational performance requires an in-depth case study or longitudinal study. Practical implications The findings will enable supply chain managers in the FMCG industry to understand the strategic role of trust and technology in building supply chain collaboration that leads to superior operational performance. Originality/value The paper clearly confirms that trust and technological capabilities are significantly associated with supply chain collaboration and operational performance. Most of the earlier supply chain collaboration research streams are based on developed economies where supply chain collaboration challenges are predictable, while the current study conducted is based on a developing economy setting. This study facilitates the author’s understanding of the challenges in managing supply chain collaboration within a developing economy.