Applying an extended investment model for enhancing supply chain performance

Abstract

Purpose The purpose of this study is to verify whether the relationships between supply chain members can maximize supply chain efficiency by adopting an investment model that has been used in family psychology. Design/methodology/approach Information sharing was added as a link between commitment level and the independent variables of the investment model, and their effect on logistics performance in terms of supply chain operation was examined. The authors surveyed workers involved in supply chain-related work in Korea and collected 300 valid survey responses to verify the findings. The hypotheses were verified through structural equation model using SPSS 18.0 and AMOS 18.0. Findings This study academically revealed the impacts of intangible efficiency on performance. Satisfaction and investment size had a significant effect on information sharing, but not on the quality of alternatives. Information sharing had a positive effect on the commitment level. Finally, commitment level had a positive effect on logistics performance. Because the effects of satisfaction and investment size are proportional to the degree of information sharing, firms in a supply chain must consider their importance. Originality/value Owing to the complexity of today’s supply chains, the existing fragmentary method of analysis limits the evaluation of supply chain performance factors. Accordingly, based on an investment model that is rarely discussed in business administration, this study identified the link of antecedent variables in addition to direct variables that affect supply chain performance.