100%(1)1 out of 1 people found this document helpful
This preview shows page 14 - 16 out of 25 pages.
Finally, several authors suggest top management support plays a critical role in shaping anorganization’s values, orientation, and direction (Felton 1959; Hambrick and Mason 1984; Kotter 1990;Tosti and Jackson 1990; Webster 1988). Day and Lord (1988) found that top-level managers have asubstantial impact on organizational performance. Lambert, Stock, and Ellram suggest top managementsupport, leadership, and commitment to change are important antecedents to the implementation ofSCM. In the same context, Loforte (1991) contends lack of top management support is a barrier toSCM. In Figure 2, the recognition of the importance of these antecedents by a particular companyis represented as antecedent to a SCO. When contiguous companies in a supply chain each achievea SCO, they can begin the implementation process to realize SCM. In other words, SCO is a willingnessby one company to address the issues listed in Figure 2 from a strategic, systemic perspective. Man-agement of the supply chain is only accomplished when several companies in line in the supply chainhave that orientation and move toward implementing the management philosophy of SCO.An analogy may help at this time. Asupply chain is much like a river, with products and servicesflowing down it instead of water. Whether anyone recognizes the systemic, strategic implications ofmanaging the water basin, the river still exists. Similarly, whether any company recognizes the sys-temic, strategic implications of the supply chain of which they are a part, it still exists. When one statethrough which the river flows recognizes the need for states above it in the water basin to conserveand preserve the water supply andrecognizes its own need to do the same for states below it, the statehas taken a systemic strategic orientation—the river equivalent of a supply chain orientation. How-ever, without the cooperation of the states above and below it, there is little it can do about implementingthis orientation. It is only when a number of continuous states adopt such a similar orientation andactively manage the resources of the river that we can say the water basin is managed. Similarly, supply14MENTZER, DeWITT, KEEBLER, MIN, NIX, SMITH, AND ZACHARIA
chain management can only result in a managed supply chain when several companies directlylinked in the supply chain have a SCO and actively manage to that orientation. Consequences of SCMThe motive behind the formation of a supply chain arrangement is to increase supply chain com-petitive advantage (Global Logistics Research Team at Michigan State University 1995; Monczka,Trent, and Handfield 1998). Porter (1985) defines two types of competitive advantage: cost leader-ship and differentiation. According to Giunipero and Brand (1996), improving a firm’s competitiveadvantage and profitability through SCM can be accomplished by enhancing overall customer sat-isfaction. By the same token, La Londe (1997) proposed that SCM aims at delivering enhanced cus-