BUS606: Operations and Supply Chain Management

Drawing from the network theory, the literature of SCM and logistics management aforementioned, a conceptual model has been developed as shown in Figure 1. The model consists of five constructs: one predictor – supplier information technology use; three mediators – supplier collaborative communication, supplier network structure development and supplier long-term relationship; and one outcome variable – supplier performance. Conceivably, the suppliers' information technology use influences their collaborative communication, network structure development and consequent relationship longevity in supply chains. Detailed explanations of the associations between these constructs are provided in the hypotheses developed hereafter.

FIGURE 1: Conceptual model.

Supplier information technology use and collaborative communication

Increasingly, resource has become a vital element in contemporary supply chain systems, transforming the way that exchange-related activities are performed. It is noted in the literature that IT can generate a sustainable competitive advantage by facilitating collaborative communication and fostering relational capabilities. Accordingly, sustainability of advantage is possible when IT resources facilitate collaborative communication, leading to the development of complementary capabilities. In the context of this study, it is argued that IT as a crucial business resource connects and creates an enabling environment that fosters suppliers' communication with their business counterparts. Therefore, the ability of suppliers in Zimbabwe to aptly utilise IT resources to connect with their partners will likely generate a conducive environment in which business communication can flourish. In light of this view and also drawing from network theory, IT resource is expected to impact positively on a supplier's communication with its partners in Zimbabwe. Such a relationship has also been supported in prior empirical studies. Accordingly, this study posits five hypotheses. The first is that:

Hypothesis 1: There is a positive relationship between the suppliers' IT resource utilisation and their collaborative communication with business partners in Zimbabwe.

Supplier information technology use and network governance

IT resource can be viewed as a necessary business infrastructure that facilitates networking between business partners. By connecting to a business partner who is also connected to other supply chain partners using IT resources, a network structure is established. Network structure refers to inter-business governance and co-ordination that is characterised by informal social systems in contrast to the use of hierarchical authority. These social systems are relational in nature and are characterised by: solidarity, mutuality, flexibility, information exchange and role integrity. In this regard, IT resource plays an important role in activating and translating these relational norms into value-enhancing relational assets. Thus, through IT resources utilisation, network structure enables the exchange of information among supply chain partners and facilitates the development and maintenance of value-enhancing relational exchanges among supply chain partners. Similarly, in the context of this study, a supplier's IT resource utilisation is likely to facilitate linkages between business partners in a supply chain. Eventually, a network governance structure that promotes a richer communication among supply chain partners emerges. Previous studies have also supported a positive relationship between IT resource utilisation and network structure development. Therefore, deducing from the Network theory and empirical evidence, this study posits that:

Hypothesis 2: There is a positive relationship between the suppliers' IT resource utilisation and their network governance with business partners in Zimbabwe.

Supplier collaborative communication and network governance

Inter-business long-term orientation has been increasingly recognised as an important factor driving business competitiveness. The reasoning is that, through a long-term relationship, the supplier will become part of a well-managed chain and will have a lasting effect on the competitiveness of the entire supply chain.

Hypothesis 3: There is a positive relationship between the suppliers' collaborative communication and their network governance with business partners in Zimbabwe.

Supplier collaborative communication and relationship longevity

Higher levels of collaborative communication in organisations leads to better co-ordination and effective completion of tasks, which positively affects the performance of alliance relationships. Promotions of collaborative communication enables supply chain partners to build stronger relational bonds. Consequently, supply chain partners are able to focus on knowledge development and exchange and increase investment in relational competencies. Insofar as these relational competencies are ‘socially created,' resulting from on-going collaborative communication among exchange partners and not easily tradable in strategic factor markets, they may confer durable strategic advantages for the supply chain partners. Thus, collaborative communication between suppliers and their partners in the supply chain provides the strategic context necessary for fostering long-term relationships. To that extent, collaborative communication enables the exchange parties to cultivate relational norms that promote co-operation for mutual gains. Accordingly, this study submits that, suppliers' collaborative communication can be expected to foster long-term relationship between suppliers and their partners in the supply chain. Moreover, a positive relationship between collaborative communication and long-term relationship has also been supported previously in the extant management literature. Drawing from the foregoing discussion, this study therefore proposes the following hypothesis:

Hypothesis 4: There is a positive relationship between the suppliers' collaborative communication and their relationship longevity with business partners in Zimbabwe.

Supplier network governance and relationship longevity

Supplier network structure can be an effective governance mechanism that creates co-operative bonding between suppliers and their partners in the supply chain. Consequently, as a result of such co-operative bonding, understandings and conventions involving fair play and good faith develop between suppliers and their business partners. The development of good faith between supply partners generates trust and relationship commitment, which eventually expedites long-term relationships. Moreover, the literature indicates that the development of supplier network structures facilitates the integration of logistics activities in supply chains – a process that strengthens and promotes long-term relationships between suppliers and their business partners. In the context of this study, it is expected that the development of suppliers' network structures will facilitate co-operative bonding, trust and relationship commitment. As a result of this, long-term relationships between the suppliers and their partners is expected to develop. Accordingly, a positive linkage between the suppliers' network structure development and long-term relationship can be anticipated. Previous research has also supported a positive relationship between suppliers' network structure development and long-term relationships. Based on the above-mentioned discussions, the current study postulates the following hypothesis:

Hypothesis 5: There is a positive relationship between the suppliers' network governance and their relationship longevity with business partners in Zimbabwe.