Are supply chain partnerships developed and implemented according to their potential?

Abstract

PurposeGrounded in contingency theory and strategic fit theory, the goal for this research was to determine if managers differentiate in terms of the degree of partnership when allocating resources for planning, joint operating controls, communication and other management components to relationships and if this differentiation is based on the Partnership Model (Lambert et al., 1996).Design/methodology/approachIn total, 381 managers representing 31 relationships participated in one-and-a-half-day partnership meetings, and the authors analyzed how the management components were implemented in each relationship compared to the recommendations in the Partnership Model.FindingsManagers did not differentiate types of partnerships which led to over-resourcing relationships with low potential and under-resourcing those with the highest potential for creating value. The principles of contingency theory and strategic fit were not used for managing relationships.Research limitations/implicationsContingency theory combined with the relationship view suggests that management components should not be implemented at the same level for all relationships, but in the 31 relationships studied different partnership types were not managed based on their potential.Practical implicationsThe research reinforces the need for a formal structure like the Partnership Model to establish joint goals for a relationship and guide management in implementation.Originality/valueEffective supply chain management depends on the ability of managers to differentiate among partnership types and fit relational mechanisms that are appropriate. However, researchers tend to generalize their findings to all partnerships regardless of potential. The authors found support for the Partnership Model published in IJLM in 1996 as a method to resource different types of partnerships following the contingency perspective and strategic fit theory.