Introduction Literature Review Methodology Finding Conclusions Supply chain collaboration, inter-firm trust and logistics performance: Evidence from the tourism sector Pairach Piboonrugnroj and Stephen M. Disney Logistics Systems Dynamics Group, Cardiff University July 3 rd , 2011 Pairach Piboonrugnroj and Stephen M. Disney Logistics Systems Dynamics Group, Cardiff University Supply chain collaboration, inter-firm trust and logistics performance: Evidence from the tourism sector, EurOMA2011, Cambridge
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Introduction Literature Review Methodology Finding Conclusions
Pairach Piboonrugnroj and Stephen M. Disney Logistics Systems Dynamics Group, Cardiff University
Supply chain collaboration, inter-firm trust and logistics performance: Evidence from the tourism sector, EurOMA2011, Cambridge
Introduction Literature Review Methodology Finding Conclusions
Empirical Findings 2Multiple-case Study
Hotel A Hotel B Hotel C Hotel D Hotel E Hotel F
Collaborative EffortsInformation sharing High Moderate Low High Moderate HighJoint activities High High Moderate Low High HighDedicated investment High Moderate High High Moderate Moderate
Inter-firm TrustTrust belief High High Moderate Moderate High HighTrust behaviour High Moderate Low Moderate Moderate High
Logistics PerformanceOrder High High Moderate Moderate High HighDelivery High High Moderate Moderate Moderate HighForecasting High Moderate Low Low Moderate High
SatisfactionOn commitment High Moderate Moderate Moderate High HighOn performance High High Low Moderate Moderate High
Pairach Piboonrugnroj and Stephen M. Disney Logistics Systems Dynamics Group, Cardiff University
Supply chain collaboration, inter-firm trust and logistics performance: Evidence from the tourism sector, EurOMA2011, Cambridge
Introduction Literature Review Methodology Finding Conclusions
Construct operationlisation
Collaborative Efforts (Nyaga et al., 2009)
Information Sharing
Joint Activities
Dedicated Investment
Collaborative Mechanism & Outcomes
Inter-Firm Trust (Kwon and Suh, 2004)
Logistics Performance (Simatupang and Sridharan, 2002)
Relationship Satisfaction (Nyaga et al., 2009)
Pairach Piboonrugnroj and Stephen M. Disney Logistics Systems Dynamics Group, Cardiff University
Supply chain collaboration, inter-firm trust and logistics performance: Evidence from the tourism sector, EurOMA2011, Cambridge
Introduction Literature Review Methodology Finding Conclusions
Our Conceptual Framework
Pairach Piboonrugnroj and Stephen M. Disney Logistics Systems Dynamics Group, Cardiff University
Supply chain collaboration, inter-firm trust and logistics performance: Evidence from the tourism sector, EurOMA2011, Cambridge
Introduction Literature Review Methodology Finding Conclusions
Research Hypotheses
Pairach Piboonrugnroj and Stephen M. Disney Logistics Systems Dynamics Group, Cardiff University
Supply chain collaboration, inter-firm trust and logistics performance: Evidence from the tourism sector, EurOMA2011, Cambridge
Introduction Literature Review Methodology Finding Conclusions
Empirical Findings 3Questionnaire Survey
Data
Questionnaire survey
Tourism industry of Thailand
109 usable responses
Analysis Methods
Confirmatory Factor Analysis (Joreskog, 1969)
Path Analysis (Wright, 1918)
Pairach Piboonrugnroj and Stephen M. Disney Logistics Systems Dynamics Group, Cardiff University
Supply chain collaboration, inter-firm trust and logistics performance: Evidence from the tourism sector, EurOMA2011, Cambridge
Introduction Literature Review Methodology Finding Conclusions
Confirmatory Factor Analysis 1
Survey items FactorLoadings
CFA Model 1: Collaborative efforts(Chi-square/df =1.093, CFI=0.933, TLI=0.989, NFI=0.927, RMSEA=0.051, AIC=70.040)Information sharing (α = 0.937)We inform this supplier/buyer in advance of changing needs. .926It is expected that any information, which might help the other party, will be provided. .948The parties are expected to keep each other informed about changes that may affectthe other party. .883
Joint activities (α = 0.942)My firm and this supplierhave a joint team. .921conduct joint planning to anticipate and resolve operational problems. .950make joint decisions about ways to improve overall cost efficiency. .887
Dedicated investments (α = 0.811)In building the relationship with my firm, this supplierhas invested substantially in personnel. .847has provided proprietary expertise and/or technology. .829has dedicated significant investment. .632
Pairach Piboonrugnroj and Stephen M. Disney Logistics Systems Dynamics Group, Cardiff University
Supply chain collaboration, inter-firm trust and logistics performance: Evidence from the tourism sector, EurOMA2011, Cambridge
Introduction Literature Review Methodology Finding Conclusions
Confirmatory Factor Analysis 2
Survey items FactorLoadings
CFA Model 2: Collaborative mechanism and outcomes(Chi-square/df =1.010, CFI=0.999, TLI=0.999, NFI=0.915, RMSEA=0.017, AIC=112.455)Inter-firm trust (α =0.823)My firm can understand this supplier well. .812This supplier is genuinely concerned that we succeed. .946We trust this supplier keeps our best interests in mind. .667This supplier/buyer considers our welfare as well as its own. .520Satisfy with relationship (α = 0.900)
My firm is satisfied with this relationship in terms of:- Coordination of activities. .826- Participation in decision making. .809- Level of commitment. .977
Logistics performance (α =0 .971)This relationship hasimproved our order processing accuracy. .949improved our on-time delivery. .858increased our forecast accuracy. .919improved our order accuracy in term of product types. .964improved our order accuracy in term of product quantity. .980
Pairach Piboonrugnroj and Stephen M. Disney Logistics Systems Dynamics Group, Cardiff University
Supply chain collaboration, inter-firm trust and logistics performance: Evidence from the tourism sector, EurOMA2011, Cambridge
Introduction Literature Review Methodology Finding Conclusions
Hypothesis TestingResult from Multiple Regression Models
Pairach Piboonrugnroj and Stephen M. Disney Logistics Systems Dynamics Group, Cardiff University
Supply chain collaboration, inter-firm trust and logistics performance: Evidence from the tourism sector, EurOMA2011, Cambridge
Introduction Literature Review Methodology Finding Conclusions
Interaction Effects of Collaboration Efforts
-3 -2 -1 0 1 2 3
-3-2
-10
12
3
Information sharing
Inte
r-fir
m tr
ust
Low levelof Joint Activities
Moderate levelof Joint Activities
High levelof Joint Activities
-3 -2 -1 0 1 2 3-3
-2-1
01
23
Dedicated Investment
Inte
r-fir
m T
rust
Low levelof Joint Activities
Moderate levelof Joint Activities
High levelof Joint Activities
Pairach Piboonrugnroj and Stephen M. Disney Logistics Systems Dynamics Group, Cardiff University
Supply chain collaboration, inter-firm trust and logistics performance: Evidence from the tourism sector, EurOMA2011, Cambridge
Introduction Literature Review Methodology Finding Conclusions
Follow-up Interviews
Joint activities can enhance the creditability andcomprehensibility of the information shared between supplychain.
Such activities can provide an opportunity to buildinter-person trust and personal relationship between hotelsand their supply chain partners.
Hotel managers are more likely to believe in data if they knewand trusted the person that gave them the information.
Joint activities are a necessary when firms share theirinformation with supply chain partners.
Pairach Piboonrugnroj and Stephen M. Disney Logistics Systems Dynamics Group, Cardiff University
Supply chain collaboration, inter-firm trust and logistics performance: Evidence from the tourism sector, EurOMA2011, Cambridge
Introduction Literature Review Methodology Finding Conclusions
Conclusions
Firms can the enhance benefits from supply chaincollaboration if their employees work together with supplychain partners in a joint team.
Supply chain collaborations leads to better inter-firm trust.
Such trust can further improve logistics performance andinter-firm satisfaction.
Pairach Piboonrugnroj and Stephen M. Disney Logistics Systems Dynamics Group, Cardiff University
Supply chain collaboration, inter-firm trust and logistics performance: Evidence from the tourism sector, EurOMA2011, Cambridge
Introduction Literature Review Methodology Finding Conclusions
Acknowledgements
“The author is grateful tothe Royal Thai Government
through the Commission on Higher Educationfor financial support of this study.”
Pairach Piboonrugnroj and Stephen M. Disney Logistics Systems Dynamics Group, Cardiff University
Supply chain collaboration, inter-firm trust and logistics performance: Evidence from the tourism sector, EurOMA2011, Cambridge
Introduction Literature Review Methodology Finding Conclusions
Thank you
Q&A
Pairach Piboonrugnroj and Stephen M. Disney Logistics Systems Dynamics Group, Cardiff University
Supply chain collaboration, inter-firm trust and logistics performance: Evidence from the tourism sector, EurOMA2011, Cambridge