Relationship Between Best Practice And Integrated Supply Networks

Abstract

This paper reports on an empirical study to examine the relationship between supply chain performance and its impact on firm performance - a controversial issue in the literature.  It develops an integrated performance measurement framework to survey the relationship between best practice firms and their position in supply/buy networks operating between firms in the Electronics and IT Communications industry in the Northern Adelaide Region of South Australia.  The methodology joins models of best practice with theories of structural network analysis applied to a sample of 44 original equipment manufacturers (OEMs) and their first tier suppliers and customer firms.  It uses a combination of quantitative and qualitative analysis to arrive at a classification of best practice firms, and correlates their leader and lagger status against a five class typology of supply and buy networks for the OEM firm, to show the impact of supply chain performance on firm performance.  The results reported here are a pilot study to test the validity of the conceptual framework preparatory to a future survey of the full population of firms in the industry operating multi-tier supply/buy chains.  Advanced statistical techniques and snowball sampling will be used to test and confirm the preliminary relationships presented here.  The study was sponsored by Playford City Council as part of its Industrial Renewal Program for Northern Adelaide to build regional systems of innovation and agendas for change.