Supplier transparency: scale development and validation

Abstract

Purpose The purpose of this paper is to create an instrument for conducting future supply chain transparency research by developing and validating a measure of supplier transparency. Specifically, the research develops a two-dimensional measure of supplier transparency that builds on previous studies that independently examine visibility and traceability in supply chain management (SCM)/logistics. Design/methodology/approach The scale development process is carried out over three stages (item generation, scale purification, scale validation). Survey methods are used with two separate data collection phases involving a total of 358 managers from multiple and diverse industries. Findings The new supplier transparency measure is a concise, two-dimensional scale that has the potential for significant usage in the development and testing of SCM theory. Research limitations/implications This study implemented a purposefully general sampling procedure. However, different industries may have additional, specific constraints regarding what it means to be a transparent supplier. Additional opportunities for future research include applying the new supplier transparency measure to examine supply chain frameworks, regulatory compliance, supply chain relationships and the implementation of information technology. Practical implications Firms are under increasing pressure to be transparent about partner sourcing, resource utilization and other transactional issues related to the products and processes in their supply chains. The new measure may be utilized to address these issues as well as the interaction between supply chain operations and stakeholders by facilitating a quantitative assessment of supplier transparency. Originality/value Drawing on the established constructs of supply chain visibility and traceability, a measure of supplier transparency is developed, supported by a review of the literature, input from subject matter experts and interviews with supply chain managers. Suggestions are made for future validation of supplier transparency within established supply chain frameworks.