Performance impact of supply chain partnership strategy-environment co-alignment(Prashant Srivastava, Karthik N.S. Iyer and Mohammed Y.A. Rawwas, 2016)

The current intensely dynamic business environment has driven firms toward forging strategic inter-firm cooperative arrangements for enhancing performance (e.g. Wittmann et al., 2009).
Strategic partnerships allow firms to focus on their core activities and fill resource inadequacies in critical operations (Sambasivan et al., 2013).
Supply chain management (SCM) has especially drawn interest as a partnership strategy for maximizing performance (Shi and Yu, 2013).

1. ADDIS ABABA UNIVESITY PHILOSOPHY OF INTERNATIONAL BUSINESS AND STARATEGY GLOBAL SUPPLY CHAIN MANAGEMENT COURSE Article review- Individual Assignment On Performance impact of supply chain partnership strategy-environment co-alignment(Prashant Srivastava, Karthik N.S. Iyer and Mohammed Y.A. Rawwas , 2016) Tesfamaryam

2. Introduction The current intensely dynamic business environment has driven firms toward forging strategic inter-firm cooperative arrangements for enhancing performance (e.g. Wittmann et al., 2009). Strategic partnerships allow firms to focus on their core activities and fill resource inadequacies in critical operations ( Sambasivan et al., 2013). Supply chain management (SCM) has especially drawn interest as a partnership strategy for maximizing performance (Shi and Yu, 2013 ). Therefore this paper investigated the environment-supply chain partnership strategy co-alignment impacts performance.

3. Key Concepts of the paper Strategy essentially relates to deployment patterns of key resources for competitive gains ( Venkatraman and Prescott, 1990). Partnership strategy therefore is tantamount to appropriately leveraging and deploying inter-firm resources ( Wittmann et al., 2009). In aligning supply chain strategy with specific environmental context, partners proactively deploy appropriate critical resource choices ( Iyer et al., 2014). ESPV: The perspective proposes deploying the following key inimitable partnership resource choices as response to co-align with context for superior performance: collaboration, resource specificity, and resource complementarity . key partnership resources to align with the environmental context.

4. Statement of the problem There is an inadequate understanding on the critical issue of strategic partnership resource choices that co-align match with context factors to enhance performance.

5. Objectives of the article The purpose of the article : is to enhance understanding on supply chain partnership strategy environment context c o-alignment and its relationship with performance . Objectives is to provide insights on the performance implications of environmental context-supply chain partnership strategy co-alignment is to investigate mediating influences, especially of strategic partnership resources.

6. Research Questions This research try to answer those research questions: 1. Does a proactive supply chain partnership strategy response to co-align with its critical environment context factors result in better performance? 2. Do resource complementarity and resource specificity antecede collaboration?

7. Theoretical The ESPV framework theorizes the importance of environmental context in shaping strategy It argues that the operating environment demarcates boundaries for strategy choices, posing both opportunities and threats (Child, 1997; Shaojie Cui et al., 2005). the “firm’s operational effectiveness is predicated on the appropriate selection of strategy in conjunction with environmental conditions” ( Shaojie Cui et al., 2005, p. 3). Environmental context incents firms to invest in building critical resources, and to deploy effective combinations for generating competitive outcomes ( Jap, 1999). In partnerships, the game plan is appropriate configurations of key cross-firm resources to co-align with the context ( Iyer et al., 2014; Wittmann et al., 2009).

8. T hree strategic supply chain resource choices contribute to better performance outcomes in alignment with context factors Collaboration refers to continuous joint problem-solving and coordinated inter-firm actions to strategically leverage respective resources for mutually beneficial outcomes( Wittmann et al., 2009). Resource specificity Resource specificity potentially routinizes operations, enhancing operational process productivity. Resources idiosyncratic to a partnership enhance productivity (Williamson, 1985). Partner-specific resources enhance coordination efficiencies and information flows, and stabilize relationships ( Jap, 1999). Supply chains realize speed and quality in decision making as processes are streamlined, and downtime-to-market is reduced

9. … Resource complementarity Resources pooled by partners that collectively complement each other, produce a strong competitive position for the partnership (Teece et al., 1997). Complementary resources fill deficiencies in partners’ portfolio of resources (Lambe et al., 2002). They also enhance process productivity by enabling the creation of new idiosyncratic resource bundles

10. Research gap Nevertheless, such proactive co-alignment strategies in supply chains are relatively under-investigated (Sousa and Voss, 2008) extant literature lacks adequate understanding of supply chain resources as sources of competitive advantage. Past research has mostly addressed contextual influences either by aggregating factors, or by modeling a narrow range. And They are fragmented and fails to clearly analyze the relationships in a comprehensive and definitive manner. Hence Our research fills this gap by basing the research framework on the central argument in co-alignment theory : strategic choice.

11. Methodology The Hypotheses &model developed by using environment strategy performance view and relational perspective

12. … The environment-strategy-performance view (ESPV) (Child, 1972) considers environmental factors as critical in determining strategies . It proposes a co-alignment match between context and strategy for superior performance.

13. Hypothesis H1. Collaboration is positively related to (a) operational and (b) financial performance. H2a. Resource Complementarity is positively associated with collaboration. H2b. Resource Specificity is positively associated with collaboration. H3. Technological turbulence associates positively with (a) resource complementarity and (b) resource specificity. H4. Product complexity associates positively with (a) resource complementarity and (b) resource specificity. H5. Competitive intensity associates positively with (a) resource complementarity and (b) resource specificity.

14. … H6. Collaboration mediates the relationship between resource specificity and each of: (a) operational performance (b) financial performance. H7. Collaboration mediates the relationship between resource complementarity and each of: (a) operational performance (b) financial performance. H8. Resource specificity mediates the relationship between each of: (a) technological turbulence (b) product complexity, and (c) competitive intensity and collaboration. H9. Resource complementarity mediates the relationship between each of: (a) technological turbulence (b) product complexity, and (c) competitive intensity and collaboration.

15. Methodology Sample Data was collected using a field survey method source of data Hoover’s database of US manufacturing firms unit of analysis was either the strategic business unit or independent firm. 1,440 potential respondents was randomly selected and questionnaires mailed. 115 replay responses Selection criteria - were high-level executives; overseeing strategic level decision making in related fields of supply chain, logistics and operations, and - therefore possessed sufficient knowledge to respond effectively.

16. … Measurement scales The competitive intensity scale was adapted from Jaworski and Kohli (1993). It consisted of three items and was measured on a seven-point Likert scale Data analysis partial least square structural equation modeling (PLS-SEM) approach

17. Structural Model Result

18. Findings Findings support the conventional wisdom relating collaboration to operational and financial performance. While product complexity associates with the “building block” resources, resource complementarity and resource specificity, technological turbulence relates significantly with only resource specificity. Interestingly, competitive intensity associates differentially with the resources – positive with resource specificity and negatively with resource complementarity. The results also reveal mediating influences of resource specificity and collaboration.

19. Conclusion The relational view, as the strategic choice component of the ESPV, identifies and explains the unique cross-firm resources and capabilities necessary for performance, and their interrelationships Through this unique contribution, which included understanding the mediating roles, the centrality of collaboration as a capability is reinforced . Roles of resource specificity and complementarity in eventually contributing to overall performance gains

20. Contribution This study has filled a vital literature gap highlighted by O’Cass and Weerawardena (2010), who underscored the inadequate progress in unraveling the complementary alignment between the operating environment and partnership resources. Feature research : study on cross- firm nature linkage