Opposites attract: organisational culture and supply chain performance

Trevor Cadden, Donna marshall, Guangming Cao

Research output: Contribution to journalArticle

46 Citations (Scopus)

Abstract

Purpose – The aim of this paper is to expand the knowledge of buyer-supplier relationships by investigating the extent to which organisational cultural fit between a buyer and supply chain participants influences performance. Design/methodology/approach – The study was conducted in a FMCG supply chain. A cultural dimensions questionnaire was used in a focal organisation (the buyer) and it identified best and poorest performing supply chain. The results were analysed using a series of ANOVA's within the respective supply chains. The findings were then triangulated via qualitative methods. Findings – The findings demonstrate that complementarity rather than congruence between the supply chain partners achieved successful performance outcomes. Organisations in the high-performing supply chain had significantly different cultural profiles, reporting significant statistical differences across all six cultural dimensions. Organisations in the low-performing supply chain had almost identical profiles across all six cultural dimensions with significantly lower mean scores across each dimension. Research limitations/implications – The deconstruction of organisational culture into its constituent dimensions in a supply chain provides insights for academics. Propositions are presented which provide a platform for further studies. Future studies could develop these findings by using a larger sample, over a longer period of time, and adding mediating variables that impact supply chain outcomes. Practical implications – Managers should pay attention to cultural evaluation within the supplier selection process as well as finance or strategic evaluations. A shared supply chain culture of norm-based trust and openness may yield better outcomes and reduced conflict and uncertainty throughout the supply chain. Originality/value – This is one of the first papers to deconstruct and measure organisational cultural fit empirically in a supply chain context.
LanguageEnglish
Pages86-103
JournalJournal of Supply Chain Management: An International Journal
Volume18
Issue number1
DOIs
Publication statusPublished - 2013

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Supply chain performance
Organizational culture
Supply chain
Cultural dimensions
Buyers
Analysis of variance
Congruence
Finance
Selection process
Buyer-supplier relationships
Complementarity
Strategic evaluation
Deconstruction
Questionnaire
Uncertainty
Evaluation
Long period
Managers
Qualitative methods
Openness

Cite this

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title = "Opposites attract: organisational culture and supply chain performance",
abstract = "Purpose – The aim of this paper is to expand the knowledge of buyer-supplier relationships by investigating the extent to which organisational cultural fit between a buyer and supply chain participants influences performance. Design/methodology/approach – The study was conducted in a FMCG supply chain. A cultural dimensions questionnaire was used in a focal organisation (the buyer) and it identified best and poorest performing supply chain. The results were analysed using a series of ANOVA's within the respective supply chains. The findings were then triangulated via qualitative methods. Findings – The findings demonstrate that complementarity rather than congruence between the supply chain partners achieved successful performance outcomes. Organisations in the high-performing supply chain had significantly different cultural profiles, reporting significant statistical differences across all six cultural dimensions. Organisations in the low-performing supply chain had almost identical profiles across all six cultural dimensions with significantly lower mean scores across each dimension. Research limitations/implications – The deconstruction of organisational culture into its constituent dimensions in a supply chain provides insights for academics. Propositions are presented which provide a platform for further studies. Future studies could develop these findings by using a larger sample, over a longer period of time, and adding mediating variables that impact supply chain outcomes. Practical implications – Managers should pay attention to cultural evaluation within the supplier selection process as well as finance or strategic evaluations. A shared supply chain culture of norm-based trust and openness may yield better outcomes and reduced conflict and uncertainty throughout the supply chain. Originality/value – This is one of the first papers to deconstruct and measure organisational cultural fit empirically in a supply chain context.",
author = "Trevor Cadden and Donna marshall and Guangming Cao",
note = "Reference text: Ahmad, S. and Schroeder, R.G. (2003), “The impact of human resource management practices on operational performance: recognizing country and industry differences”, Journal of Operations Management, Vol. 21 No. 1, pp. 19-43. Ambrose, E., Marshall, D. and Lynch, D. (2010), “Buyersupplier perspectives on supply chain relationships”, International Journal of Operations and Production Management, Vol. 30 No. 12, pp. 1269-90. Baird, K., Kristal, J.H. and Reeve, R. (2011), “The relationships between organizational culture, total quality management practices and operational performance”, International Journal of Operations and Production Management, Vol. 31 No. 7, pp. 789-814. Balthazard, P.M., Cooke, R.A. and Potter, R.E. (2006), “Dysfunctional culture, dysfunctional organisation”, Journal of Managerial Psychology, Vol. 21 No. 8, pp. 709-32. Barringer, B. and Harrison, J. (2000), “Walking a tightrope: creating value through inter-organisational relationships”, Journal of Management, Vol. 26 No. 3, pp. 367-403. Bates, K.A., Amundson, S.D., Schroeder, R.G. and Morris, W.T. (1995), “The crucial interrelationship between manufacturing strategy and organizational culture”, Management Science, Vol. 41, October, p. 1565. Beamon, B.M. (1999), “Measuring supply chain performance”, International Journal of Operations and Production Management, Vol. 19, pp. 275-92. Boyer, K.K. and McDermott, C. (1999), “Strategic consensus in operations strategy”, Journal of Operations Management, Vol. 17, pp. 289-305. Cadden, T., Humphreys, P. and McHugh, M. (2010), “The influence of organizational culture on strategic supply chain relationship success”, Journal of General Management, Vol. 36 No. 2, pp. 37-61. Cartwright, S. and Cooper, C.L. (1993), “The role of cultural compatibility in successful organisations marriage”, Academy of Management Executive, Vol. 7 No. 2, pp. 57-70. Casson, M. (1998), Information and Organisation: A New Perspective on the Theory of the Firm, Oxford University Press, New York, NY. Chen, I.J. and Paulraj, A. (2013), “Towards a theory of supply chain management: the constructs and measurements”, Journal of Operations Management, Vol. 22 No. 2, pp. 119-50. Cousins, P.D. (2002), “A conceptual model for managing long-term inter-organisational relationships”, European Journal of Purchasing and Supply Management, Vol. 8, pp. 71-82. Cousins, P.D. and Crone, M.J. (2003), “Strategic models for the development of obligation based inter-firm relationships: a study of the UK automotive industry”, International Journal of Operations and Production Management, Vol. 23 Nos 11/12, pp. 1447-74. Cousins, P., Lawson, B. and Squire, B. (2008), “Performance measurement in strategic buyer supplier relationships: the mediating role of socialisation mechanisms”, International Journal of Operations and Production Management, Vol. 28 No. 3, pp. 238-58. Cousins, P., Handfield, R., Lawson, B. and Petersen, K. (2006), “Creating supply chain relational capital: the impact of formal and informal socialization processes”, Journal of Operations Management, Vol. 24 No. 6, pp. 851-63. Degraeve, Z. and Roodhooft, F. (2001), “A smarter way to buy”, Harvard Business Review, June, pp. 22-3. Dearlove, D. and Coomber, S. (1999), Heart and Soul and Millennial Values, Blessing/White, Skillman, NJ. Denison, D.R. and Mishra, A.K. (1995), “Toward a theory of organisational culture and effectiveness”, Organisation Science, Vol. 6, pp. 204-23. Deshpande´, R. and Farley, J.U. (2013), “Organizational culture, market orientation, innovativeness, and firm performance: an international research odyssey”, International Journal of Research in Marketing, Vol. 21 No. 1, pp. 53-73. Detert, J.R., Schroeder, R.G. and Mauriel, J.J. (2000), “A framework for linking culture and improvement initiatives in organizations”, Academy of Management Review, Vol. 25 No. 4, pp. 850-63. Douma, M.U., Bilderback, J., Idenburg, P.J. and Looise, J.K. (2000), “Strategic alliances. Managing the dynamics of fit”, Long Range Planning, Vol. 33, pp. 579-98. Drejer, A., Blackmon, K. and Voss, C. (1998), “Worlds apart? A look at the operations management area in the US, UK and Scandinavia”, Scandinavian Journal of Management, Vol. 16, pp. 45-66. Dyer, J.H. (2000), Collaborative Advantage: Winning through Extended Enterprise Supplier Networks, Oxford University Press, New York, NY. Opposites attract: organisational culture and supply chain performance Trevor Cadden, Donna Marshall and Guangming Cao Supply Chain Management: An International Journal Volume 18 · Number 1 · 2013 · 86–103 97 Dyer, J. and Singh, J. (1998), “The relational view: cooperative strategy and sources of interorganizational competitive advantage”, Academy of Management Review, Vol. 23 No. 4, pp. 660-79. Eisenhardt, K.M. (1989), “Building theories from case study research”, Academy of Management Review, Vol. 14 No. 4, p. 532. Fawcett, S.E., Magnan, G.M. and McCarter, M.W. (2008), “Benefits, barriers, and bridges to effective supply chain management”, Supply Chain Management: An International Journal, Vol. 13 No. 1, pp. 35-48. Flamholtz, E. and Kannan-Narasimhan, R. (2005), “Differential impact of cultural elements on financial performance”, European Management Journal, Vol. 23 No. 1, pp. 50-64. Flynn, B.B., Schroeder, R.G. and Sakakibara, S. 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Opposites attract: organisational culture and supply chain performance. / Cadden, Trevor; marshall, Donna; Cao, Guangming.

In: Journal of Supply Chain Management: An International Journal, Vol. 18, No. 1, 2013, p. 86-103.

Research output: Contribution to journalArticle

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N1 - Reference text: Ahmad, S. and Schroeder, R.G. (2003), “The impact of human resource management practices on operational performance: recognizing country and industry differences”, Journal of Operations Management, Vol. 21 No. 1, pp. 19-43. Ambrose, E., Marshall, D. and Lynch, D. (2010), “Buyersupplier perspectives on supply chain relationships”, International Journal of Operations and Production Management, Vol. 30 No. 12, pp. 1269-90. Baird, K., Kristal, J.H. and Reeve, R. (2011), “The relationships between organizational culture, total quality management practices and operational performance”, International Journal of Operations and Production Management, Vol. 31 No. 7, pp. 789-814. Balthazard, P.M., Cooke, R.A. and Potter, R.E. (2006), “Dysfunctional culture, dysfunctional organisation”, Journal of Managerial Psychology, Vol. 21 No. 8, pp. 709-32. Barringer, B. and Harrison, J. (2000), “Walking a tightrope: creating value through inter-organisational relationships”, Journal of Management, Vol. 26 No. 3, pp. 367-403. Bates, K.A., Amundson, S.D., Schroeder, R.G. and Morris, W.T. (1995), “The crucial interrelationship between manufacturing strategy and organizational culture”, Management Science, Vol. 41, October, p. 1565. Beamon, B.M. (1999), “Measuring supply chain performance”, International Journal of Operations and Production Management, Vol. 19, pp. 275-92. Boyer, K.K. and McDermott, C. (1999), “Strategic consensus in operations strategy”, Journal of Operations Management, Vol. 17, pp. 289-305. Cadden, T., Humphreys, P. and McHugh, M. (2010), “The influence of organizational culture on strategic supply chain relationship success”, Journal of General Management, Vol. 36 No. 2, pp. 37-61. Cartwright, S. and Cooper, C.L. (1993), “The role of cultural compatibility in successful organisations marriage”, Academy of Management Executive, Vol. 7 No. 2, pp. 57-70. Casson, M. (1998), Information and Organisation: A New Perspective on the Theory of the Firm, Oxford University Press, New York, NY. Chen, I.J. and Paulraj, A. (2013), “Towards a theory of supply chain management: the constructs and measurements”, Journal of Operations Management, Vol. 22 No. 2, pp. 119-50. Cousins, P.D. (2002), “A conceptual model for managing long-term inter-organisational relationships”, European Journal of Purchasing and Supply Management, Vol. 8, pp. 71-82. Cousins, P.D. and Crone, M.J. (2003), “Strategic models for the development of obligation based inter-firm relationships: a study of the UK automotive industry”, International Journal of Operations and Production Management, Vol. 23 Nos 11/12, pp. 1447-74. Cousins, P., Lawson, B. and Squire, B. (2008), “Performance measurement in strategic buyer supplier relationships: the mediating role of socialisation mechanisms”, International Journal of Operations and Production Management, Vol. 28 No. 3, pp. 238-58. Cousins, P., Handfield, R., Lawson, B. and Petersen, K. (2006), “Creating supply chain relational capital: the impact of formal and informal socialization processes”, Journal of Operations Management, Vol. 24 No. 6, pp. 851-63. Degraeve, Z. and Roodhooft, F. (2001), “A smarter way to buy”, Harvard Business Review, June, pp. 22-3. Dearlove, D. and Coomber, S. (1999), Heart and Soul and Millennial Values, Blessing/White, Skillman, NJ. Denison, D.R. and Mishra, A.K. (1995), “Toward a theory of organisational culture and effectiveness”, Organisation Science, Vol. 6, pp. 204-23. Deshpande´, R. and Farley, J.U. (2013), “Organizational culture, market orientation, innovativeness, and firm performance: an international research odyssey”, International Journal of Research in Marketing, Vol. 21 No. 1, pp. 53-73. Detert, J.R., Schroeder, R.G. and Mauriel, J.J. (2000), “A framework for linking culture and improvement initiatives in organizations”, Academy of Management Review, Vol. 25 No. 4, pp. 850-63. Douma, M.U., Bilderback, J., Idenburg, P.J. and Looise, J.K. (2000), “Strategic alliances. Managing the dynamics of fit”, Long Range Planning, Vol. 33, pp. 579-98. Drejer, A., Blackmon, K. and Voss, C. (1998), “Worlds apart? A look at the operations management area in the US, UK and Scandinavia”, Scandinavian Journal of Management, Vol. 16, pp. 45-66. Dyer, J.H. (2000), Collaborative Advantage: Winning through Extended Enterprise Supplier Networks, Oxford University Press, New York, NY. Opposites attract: organisational culture and supply chain performance Trevor Cadden, Donna Marshall and Guangming Cao Supply Chain Management: An International Journal Volume 18 · Number 1 · 2013 · 86–103 97 Dyer, J. and Singh, J. (1998), “The relational view: cooperative strategy and sources of interorganizational competitive advantage”, Academy of Management Review, Vol. 23 No. 4, pp. 660-79. Eisenhardt, K.M. (1989), “Building theories from case study research”, Academy of Management Review, Vol. 14 No. 4, p. 532. Fawcett, S.E., Magnan, G.M. and McCarter, M.W. (2008), “Benefits, barriers, and bridges to effective supply chain management”, Supply Chain Management: An International Journal, Vol. 13 No. 1, pp. 35-48. Flamholtz, E. and Kannan-Narasimhan, R. (2005), “Differential impact of cultural elements on financial performance”, European Management Journal, Vol. 23 No. 1, pp. 50-64. Flynn, B.B., Schroeder, R.G. and Sakakibara, S. 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PY - 2013

Y1 - 2013

N2 - Purpose – The aim of this paper is to expand the knowledge of buyer-supplier relationships by investigating the extent to which organisational cultural fit between a buyer and supply chain participants influences performance. Design/methodology/approach – The study was conducted in a FMCG supply chain. A cultural dimensions questionnaire was used in a focal organisation (the buyer) and it identified best and poorest performing supply chain. The results were analysed using a series of ANOVA's within the respective supply chains. The findings were then triangulated via qualitative methods. Findings – The findings demonstrate that complementarity rather than congruence between the supply chain partners achieved successful performance outcomes. Organisations in the high-performing supply chain had significantly different cultural profiles, reporting significant statistical differences across all six cultural dimensions. Organisations in the low-performing supply chain had almost identical profiles across all six cultural dimensions with significantly lower mean scores across each dimension. Research limitations/implications – The deconstruction of organisational culture into its constituent dimensions in a supply chain provides insights for academics. Propositions are presented which provide a platform for further studies. Future studies could develop these findings by using a larger sample, over a longer period of time, and adding mediating variables that impact supply chain outcomes. Practical implications – Managers should pay attention to cultural evaluation within the supplier selection process as well as finance or strategic evaluations. A shared supply chain culture of norm-based trust and openness may yield better outcomes and reduced conflict and uncertainty throughout the supply chain. Originality/value – This is one of the first papers to deconstruct and measure organisational cultural fit empirically in a supply chain context.

AB - Purpose – The aim of this paper is to expand the knowledge of buyer-supplier relationships by investigating the extent to which organisational cultural fit between a buyer and supply chain participants influences performance. Design/methodology/approach – The study was conducted in a FMCG supply chain. A cultural dimensions questionnaire was used in a focal organisation (the buyer) and it identified best and poorest performing supply chain. The results were analysed using a series of ANOVA's within the respective supply chains. The findings were then triangulated via qualitative methods. Findings – The findings demonstrate that complementarity rather than congruence between the supply chain partners achieved successful performance outcomes. Organisations in the high-performing supply chain had significantly different cultural profiles, reporting significant statistical differences across all six cultural dimensions. Organisations in the low-performing supply chain had almost identical profiles across all six cultural dimensions with significantly lower mean scores across each dimension. Research limitations/implications – The deconstruction of organisational culture into its constituent dimensions in a supply chain provides insights for academics. Propositions are presented which provide a platform for further studies. Future studies could develop these findings by using a larger sample, over a longer period of time, and adding mediating variables that impact supply chain outcomes. Practical implications – Managers should pay attention to cultural evaluation within the supplier selection process as well as finance or strategic evaluations. A shared supply chain culture of norm-based trust and openness may yield better outcomes and reduced conflict and uncertainty throughout the supply chain. Originality/value – This is one of the first papers to deconstruct and measure organisational cultural fit empirically in a supply chain context.

U2 - 10.1108/13598541311293203

DO - 10.1108/13598541311293203

M3 - Article

VL - 18

SP - 86

EP - 103

JO - Supply Chain Management

T2 - Supply Chain Management

JF - Supply Chain Management

SN - 1359-8546

IS - 1

ER -