Assessing Effectiveness of Supply Chain Collaboration: An Empirical Study

Abstract

Even though collaboration has obtained increasing popularity in the supply chain (SC) arena, its effectiveness has not been measured empirically at a national level. In this paper, we refine, validate, and then employ an instrument that measures (1) the extent of information sharing, joint planning, goal congruence, personal interaction, and trust between SC partners and (2) manager perception of the effectiveness of this collaborative relationship. These factors along with several firm- specific variables that the literature has suggested (i.e., number of employees, annual sales revenue, percent of partners involved in collaboration, years in collaboration, and length of current agreement) are used to explain the effectiveness of SC collaboration using regression analysis.