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Organizational commitment and governance for supply chain success

Stanley E. Fawcett (Department of Management, Marriott School of Management, Brigham Young University, Provo, Utah, USA)
Jeffrey A. Ogden (Department of Management, Marriott School of Management, Brigham Young University, Provo, Utah, USA)
Gregory M. Magnan (Albers School of Management, Seattle University, Seattle, Washington, USA)
M. Bixby Cooper (Marketing and Supply Chain Management, Eli Broad College of Business, Michigan State University, East Lansing, Michigan, USA)

International Journal of Physical Distribution & Logistics Management

ISSN: 0960-0035

Article publication date: 1 January 2006

Abstract

Purpose

To examine the nature and extent of commitment to supply chain collaboration. Also, to explore the state of supply chain governance structures.

Design/methodology/approach

A multi‐method survey and in‐depth interview methodology was employed to gather data. Content analysis was then used to identify the types and extent of managerial support for supply chain initiatives.

Findings

Four types of managerial support are needed to achieve the highest levels of supply chain success: top management support, broad‐based functional support, channel support, and infrastructural/governance support. None of the interview companies have put all four types of support in place. Leading‐edge governance relies on cross‐functional/inter‐organizational teams, executive governance councils, customer advisory boards, supplier advisory councils and a modified reporting structure that overseas all value‐added activities from product conceptualization to customer relationship management. Again, none of the interview companies have established all aspects of an effective supply chain governance structure.

Originality/value

Much has been written on the need to focus on supply chains and create more cooperative and integrative relationships with key organizations in the supply chain; however, little has been written concerning the commitment levels among those involved in the supply chain or the types of governance structures that should be utilized within a given organization or along the supply chain. This paper bridges this gap, providing a benchmark for managerial commitment and presenting a composite governance structure based on observed best practices. Both academics and practitioners can use the insights provided to work toward a better understanding of supply chain commitment and governance.

Keywords

Citation

Fawcett, S.E., Ogden, J.A., Magnan, G.M. and Bixby Cooper, M. (2006), "Organizational commitment and governance for supply chain success", International Journal of Physical Distribution & Logistics Management, Vol. 36 No. 1, pp. 22-35. https://doi.org/10.1108/09600030610642913

Publisher

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Emerald Group Publishing Limited

Copyright © 2006, Emerald Group Publishing Limited