How does supplier digitalization improve customer resource allocation efficiency? The role of supply chain entrainment

Purpose Customer resource allocation efficiency (RAE) refers to the ability of customers to use, allocate and manage their available resource inputs to produce valuable outputs. This study draws on organizational entrainment theory (OET) to examine how the implementation of supplier digitalization affects customer RAE through supply chain entrainment. Design/methodology/approach Based on supplier and customer data disclosed by Chinese A-share listed firms from 2009 to 2022, this study uses fixed effects panel data models to empirically examine the impact of supplier digitalization on customer RAE and the mechanistic role of supply chain entrainment. Findings The results show that supplier digitalization significantly increases customer RAE. It improves RAE by influencing the three dimensions of supply chain entrainment (the bullwhip effect, inventory management coordination and risk management coordination). Practical implications This study provides important insights into how managers can adapt the external digital environments and maintain synchronous operations with their supply partners. Our findings demonstrate how managers can fully leverage the advantages of digitalization of their suppliers to improve their own RAE through supply chain entrainment strategies. Originality/value This study introduces the concept of supply chain entrainment to reveal how firms optimize their own resource allocation strategies and achieve efficient operations. Our research enriches the understanding of supply chain governance in the digital age and contributes to the literature on supply chain digitalization.

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Publication Details

Journal
International Journal of Operations & Production Management
Published
2024-11-24
DOI
https://doi.org/10.1108/ijopm-02-2024-0077
Citations
9
Primary Topic
Quality and Supply Management
Type
article
Field-Weighted Citation Impact
4.76
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article

How does supplier digitalization improve customer resource allocation efficiency? The role of supply chain entrainment

Qian Ding, Jinyu Chen
9 citations
International Journal of Operations & Production Management
Quality and Supply Management
4.76
article

How does supplier digitalization improve customer resource allocation efficiency? The role of supply chain entrainment

Qian Ding, Jinyu Chen
article en
9 citations

Abstract

Purpose Customer resource allocation efficiency (RAE) refers to the ability of customers to use, allocate and manage their available resource inputs to produce valuable outputs. This study draws on organizational entrainment theory (OET) to examine how the implementation of supplier digitalization affects customer RAE through supply chain entrainment. Design/methodology/approach Based on supplier and customer data disclosed by Chinese A-share listed firms from 2009 to 2022, this study uses fixed effects panel data models to empirically examine the impact of supplier digitalization on customer RAE and the mechanistic role of supply chain entrainment. Findings The results show that supplier digitalization significantly increases customer RAE. It improves RAE by influencing the three dimensions of supply chain entrainment (the bullwhip effect, inventory management coordination and risk management coordination). Practical implications This study provides important insights into how managers can adapt the external digital environments and maintain synchronous operations with their supply partners. Our findings demonstrate how managers can fully leverage the advantages of digitalization of their suppliers to improve their own RAE through supply chain entrainment strategies. Originality/value This study introduces the concept of supply chain entrainment to reveal how firms optimize their own resource allocation strategies and achieve efficient operations. Our research enriches the understanding of supply chain governance in the digital age and contributes to the literature on supply chain digitalization.

International Journal of Operations & Production ManagementVol. 45(6)
Central South University (CN)
Openalex Percentile: Top 5%
Quality and Supply Management
4.76
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