Effect of buyer-supplier supply chain strategic collaboration on operating performance: evidence from Chinese companies

Abstract

Purpose The purpose of this study is to examine the impact of the implementation of supply chain strategic collaboration (SCSC) on companies’ operating performance. Design/methodology/approach Based on 181 SCSC announcements of listed companies in China, this study analyzes changes in the operating performance of the sample companies in the 20 quarters after the announcement. The changes in different operating performance metrics for the sample firms are compared against their metrics before the announcement. This study uses a self-control model based on historical performance and uses a combination of adjustment percentage changes and adjustment level changes to measure performance changes. Findings SCSC helps to improve firm operating performance, although this effect is only evident after two years. Companies that collaborate on product development have better performance improvements than do companies that implement market collaboration. The operating performance of buyer companies is better than that of supplier companies. Finally, strategic collaboration in the service supply chain improves performance more than that in the manufacturing supply chain. Practical implications The finding that company performance varies in different situations can help managers better understand and manage SCSC. Originality/value This study newly uses secondary data to assess changes in companies’ operating performance brought about by the implementation of SCSC.