Collaboration in Finnish‐Russian supply chains: Effects on performance and the role of experience

Abstract

Purpose

The management of international supply chains may significantly contribute to the successful outcome of exports. The purpose of this paper is to investigate the level of supply chain collaboration in an uncertain cross‐border context, and whether it improves supply chain performance. The moderating role of export experience and intensity to the collaboration‐performance relationship is also investigated.

Design/methodology/approach

The paper draws on a survey of Finnish industrial companies with Russian exports. Correlation and regression analysis is used in investigating causal relationships.

Findings

The results weakly support the hypothesised positive relationships of collaboration and performance in the chosen cross‐border context. It seems that experience in cross‐border supply chain operations does not guarantee success in supply chain management. However, those companies with large export volumes, implying frequency and leveraged resources in operations, seemed to be better able to collaborate for successful outcomes.

Research limitations/implications

The research is limited to supplier‐customer dyads, and the suppliers' perceptions. The findings are confined to the specific context of the Finnish‐Russian cross‐border trade.

Practical implications

Despite the generally bleak picture of cross‐border supply chain collaboration, interesting insight was generated concerning which areas of collaboration may be the most effective. Supply chain design is one of the areas where companies should clearly collaborate; joint‐planning should therefore include facility location, mode of transport, carrier selection, and general flow management related decisions.

Originality/value

Although the relationship of supply chain collaboration and performance has been established in the literature, the paper contributes to knowledge by exploring the cross‐border context, with international business environment and high level of supply chain uncertainty.

Citation

Lorentz, H. (2008), "Collaboration in Finnish‐Russian supply chains: Effects on performance and the role of experience", Baltic Journal of Management, Vol. 3 No. 3, pp. 246-265. https://doi.org/10.1108/17465260810902351