The role of joint collaboration planning actions in a demand‐driven supply chain

TLDR

This study builds on operations and information systems literature and buyer‑seller relationship concepts, addressing a gap in examining pre‑collaboration planning actions. The study aims to measure how joint collaboration planning actions affect relationship strength, IOIS use, and firm flexibility. Using a path model and an electronic survey of 53 suppliers in a telecom equipment supply network, the authors test that joint collaboration planning actions and relationship strength drive IOIS use, which then enhances firm flexibility. The results show that joint collaboration planning actions significantly strengthen relationships, and that IOIS use mediates the impact of planning actions and relationship strength on firm flexibility, underscoring their importance in demand‑driven supply chains.

Abstract

Abstract Purpose – Drawing on the operations and information systems literature as well as concepts tied to buyer‐seller relationships, the objective of this exploratory research is to measure the influence of joint collaboration planning actions on the strength of relationships, interorganizational information systems (IOISs) use and firm flexibility. The path model proposed in this study also posits that joint collaboration planning actions and the strength of relationships positively affect IOISs use, which in turn positively affects firm flexibility. Design/methodology/approach – Empirical evidence is gathered through an electronic survey conducted with 53 suppliers in a single supply network in the telecommunications equipment industry. Findings – The present study demonstrates that joint collaboration planning actions positively and significantly impact the strength of relationships. The results also show that IOISs use mediates the impact of joint collaboration planning actions and of the strength of relationships on firm flexibility. Practical implications – This study contributes to managers' understanding of the critical role played by joint collaboration planning actions between partners and IOISs in a demand‐driven supply chain. Originality/value – This research is amongst the few that have examined the preparation or other activities that precede the actual collaboration between partners.