The Relationships between Orientation, Collaboration and Performance for Supply Chain Management of Korean FDI Firms for Sustainable Growth

Abstract

The objective of this study is to verify the relationships between orientation, collaboration and performance for supply chain management (SCM) of Korean foreign direct investment (FDI) firms for sustainable growth. To achieve the objective, this study created the research model, and the research hypotheses came from prior research. The questionnaire was sent to Korean FDI firms, and the collected data were analyzed by various analytical methods such as a factor analysis, a Cronbach’s alpha coefficient, structural equation modeling (SEM) and a moderated regression analysis. The results are as follows. First, orientation for SCM has a positive effect on collaboration for SCM. Global SCM is regarded as an essential part in the era in which a value chain is globalized, and as a result, it is globally performed in the procurement of raw materials, production of goods and sales of final goods. To perform global SCM, staff of manufacturers should have recognition of SCM from the internal viewpoint of a firm, they should create strategy and structure for SCM from the whole viewpoint of a firm, and they should disseminate it to suppliers and customers. Second, collaboration for SCM has a positive effect on supply chain performance. The key factors are collaboration with international logistics service providers as well as inter-departmental collaboration. The collaboration is based on attaining efficiency and effectiveness, and as a result, firms achieve superior supply chain performance.