Long-term orientation Sample Clauses
Long-term orientation. The importance of an organization having a long-term orientation of their supply chain partnerships was proposed as critical factor in the success of an IOS for SCM purposes. This was based on SCM literature which clearly emphasizes that supply chain partners should, ideally, consider their supply chain partnership’s duration as indefinitely. IOS research supports this view through underpinning the importance of the supply chain partners having a long-term and shared vision of the IOS. Theoretical support is also found from SET as trust, commitment, and relational norms are developed over time within a relationship. And having commitment within a business relationship opens up for relation-specific investments and the willingness to share knowledge, which can be a source of a competitive advantage as outlined by TRV. A study that draws on TRV is ▇▇▇▇▇▇▇ and ▇▇▇▇ (2007) who studied strategic business relationships using IT, as opposed to pure transactional or operational relationships. Drawing on TRV, they propose that having a small number of suppliers with whom they regard the relationship as long-term have higher levels of performance and external logistics integration. The findings support their initial model - strategic relationships characterized as long-term ▇▇▇▇▇▇ collaborative behavior, lead to the development of interaction routines and coordination mechanism which reduce communication errors, facilitate information-sharing and ▇▇▇▇▇▇ learning. These findings are consistent with the work of ▇▇▇▇▇ (2008) who finds that value is created within a supply chain through collaborative efforts and long-term commitment. The findings also suggest that relationship-based supply chain activities are closely linked to improved SCM as forming long-term partnerships fosters improved collaboration and commitment. Ryu and ▇▇▇▇ (2005) also put focus on the importance of having a high level of long-term orientation. Their findings indicate that throughout a relationship soft contracts are developed, and with higher levels of long-term orientation the presence of hard contracts is less. This is in line with the fourth source of achieving a competitive advantage as outlined by TRV – achieving effective governance of an exchange relationship, for instance in form of self-enforcing agreements, lowers the costs of governance and provides incentives for value- creation initiatives. The last study is by ▇▇▇▇ et al (2002) that attempt to integrate the two research streams o...
Long-term orientation. ▇▇▇▇▇▇▇ and ▇▇▇▇ (2007) explore how strategic business relationships using IT affect an organization’s external logistics integration and agility performance. The research draws on TRV and SCM literature and develops a model which proposes that organizations having a limited number of suppliers with whom they regard the relationship as long-term and participate in close inter-organizational communication, have higher levels of performance and external logistics integration. To empirically test the model, data was gathered from 221 members of the Institute for Supply Management through a cross-sectional mail survey in the United States. The empirical analysis suggests that the impact of strategic business relationships and IT is significant in respect to improved levels of logistics integration through relational and technological initiatives. Specifically, strategic relational partnerships could lead to superior external logistics integration. Also, strategic relationships ▇▇▇▇▇▇ collaborative behavior. As organizations maintain and develop a long-term relationship they develop interaction routines and coordination mechanisms that help them to better utilize shared information. In sum, relationships characterized by a limited number of suppliers, long-term orientation, and inter- organizational communication increase performance and integration between the partners through reducing communication errors, facilitation information sharing, and fostering learning. ▇▇▇▇▇ (2008) takes a relationship approach, utilizing relationship marketing literature, to explain relationship-related factors’ impact on supply chains. Specifically, a questionnaire with 898 respondents is used to extract information about commitment, trust, and satisfaction within supply chain relationships. The empirical evidence suggests that value is created within a supply chain through collaborative efforts and long-term commitment. Results also suggest that there is a preparedness to commit to long-term business relationships. It is evident from the empirical findings that relationship-based supply chain activities are closely linked to improved SCM through forming more satisfying long-term business partnerships and developing the social aspect of the relationship. In sum, the research indicates that when organizations pursue in long-term relationships the likeliness of meeting strategic organizational objectives are higher. A limitation to the study is pointed out, however, as the data is ...
Long-term orientation. Long-term orientation refers to an organization’s willingness to exert effort in developing long-term relationships and committing resources to a mutual goal. The achievement of effective SCM requires the partners to have a long-term perspective on their partnerships and projects (Ellram & ▇▇▇▇▇▇, 1990; ▇▇▇▇▇▇▇ & ▇▇▇▇▇▇▇, 1992; ▇▇▇▇▇▇ et al, 1997). According to ▇▇▇▇▇▇ et al (1997) the supply chain partners should, ideally, consider their supply chain partnership’s duration as indefinite. And as Ellram and ▇▇▇▇▇▇ (1990) point out, one of the essential activities that enhances effective SCM is the building and maintenance of long-term relationships. This is in line with the work of ▇▇ et al (2006) regarding IOS critical success factors where the importance of the participating organizations having a shared motivation and vision is emphasized. When the organizations have a common and long-term vision of the IOS and its expected consequences the likeliness of its success is greater. And from a theoretical viewpoint, SET supports a long-term focus as the theory states that trust, commitment, and relational norms are something that are developed over time within a relationship (▇▇▇▇▇ et al, 2001). Having a long-term orientation could also breed a competitive advantage as TRV suggest that if the organizations have a feeling of mutual commitment it would open up for relation-specific investments and the willingness to share knowledge which in turn results in relational rents (▇▇▇▇ & ▇▇▇▇▇, 1998).