Network Complexity and Supply Chain Performance Measurement: A Comparative Case Study

Posted: 29 Apr 2020

See all articles by Neale Gilbert O'Connor

Neale Gilbert O'Connor

Monash University Malaysia

Anne Wu

National Chengchi University (Taipei)

Date Written: June 26, 2013

Abstract

We investigate the emphasis that buyers place on each of five performance measurement dimensions (technology, quality, delivery, service, and cost) when they select suppliers and allocate orders among those suppliers. The results of a comparative case study of six large buyers in the electronics industry show that buyers employ different criteria for these two decisions and that Network complexity influences the degree of variation in those criteria. Buyers producing generic products employ observable, cost-related criteria in both supplier selection and order allocation, whereas their innovative product-producing counterparts rely on intangibles (e.g., technical superiority) for supplier selection, but tangible metrics (e.g., delivery) for order allocation. We also obtain evidence of post-contract monitoring practices.

Keywords: Supplier selection criteria, Non-financial performance measures; Supplier cost management; Subjective performance measurement

Suggested Citation

O'Connor, Neale Gilbert and Wu, Anne, Network Complexity and Supply Chain Performance Measurement: A Comparative Case Study (June 26, 2013). Available at SSRN: https://ssrn.com/abstract=3568322

Neale Gilbert O'Connor (Contact Author)

Monash University Malaysia ( email )

Malaysia
0122005964 (Phone)
47500 (Fax)

Anne Wu

National Chengchi University (Taipei) ( email )

No. 64, Chih-Nan Road
Section 2
Wenshan, Taipei 11623
Taiwan

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