IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v214y2019icp80-94.html
   My bibliography  Save this article

Sales and Operations Planning: The effect of coordination mechanisms on supply chain performance

Author

Listed:
  • Goh, Shao Hung
  • Eldridge, Stephen

Abstract

Sales and Operations Planning (S&OP) is a means of facilitating cross-functional coordination, such as across the marketing-operations interface, but adopters of S&OP have not all benefited from S&OP to the same extent. This paper investigates the effect of S&OP on supply chain performance using the perspective of coordination and contingency theories. A structural equation model was developed in which six S&OP coordination mechanisms were hypothesized to contribute to improved supply chain performance. The model was tested using a global survey of 568 experienced S&OP practitioners. Our results indicate that Strategic Alignment and Information Acquisition/Processing are the mechanisms that most significantly enable superior S&OP outcomes. However, we find that a highly formalized S&OP Procedure inhibits supply chain performance. Furthermore, using a contingency theory perspective, increasing firm size and increasing experience in S&OP amplify the negative effect of a standardized S&OP Procedure upon supply chain performance. Our results suggest that organizational bricolage may be a coordinating mechanism of effective S&OP programs and that managers should empower ambidextrous S&OP teams to maintain balance using self-governing event-driven processes. This paper makes a novel contribution to the S&OP literature by providing evidence of a theoretical construct (organizational bricolage), which may trigger a re-evaluation of the efficacy of prescriptive S&OP procedures that have been advocated by some researchers and practitioners.

Suggested Citation

  • Goh, Shao Hung & Eldridge, Stephen, 2019. "Sales and Operations Planning: The effect of coordination mechanisms on supply chain performance," International Journal of Production Economics, Elsevier, vol. 214(C), pages 80-94.
    • Handle: RePEc:eee:proeco:v:214:y:2019:i:c:p:80-94
    DOI: 10.1016/j.ijpe.2019.03.027
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527319301239
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2019.03.027?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Tavares Thomé, Antônio Márcio & Scavarda, Luiz Felipe & Fernandez, Nicole Suclla & Scavarda, Annibal José, 2012. "Sales and operations planning: A research synthesis," International Journal of Production Economics, Elsevier, vol. 138(1), pages 1-13.
    2. Wenpin Tsai, 2002. "Social Structure of “Coopetition” Within a Multiunit Organization: Coordination, Competition, and Intraorganizational Knowledge Sharing," Organization Science, INFORMS, vol. 13(2), pages 179-190, April.
    3. Noroozi, Sayeh & Wikner, Joakim, 2017. "Sales and operations planning in the process industry: A literature review," International Journal of Production Economics, Elsevier, vol. 188(C), pages 139-155.
    4. Ranjay Gulati & Paul R. Lawrence & Phanish Puranam, 2005. "Adaptation in vertical relationships: beyond incentive conflict," Strategic Management Journal, Wiley Blackwell, vol. 26(5), pages 415-440, May.
    5. John Mello, 2010. "Corporate Culture and S&Op: Why Culture Counts," Foresight: The International Journal of Applied Forecasting, International Institute of Forecasters, issue 16, pages 46-49, Winter.
    6. Samer Faraj & Yan Xiao, 2006. "Coordination in Fast-Response Organizations," Management Science, INFORMS, vol. 52(8), pages 1155-1169, August.
    7. Tuomikangas, Nina & Kaipia, Riikka, 2014. "A coordination framework for sales and operations planning (S&OP): Synthesis from the literature," International Journal of Production Economics, Elsevier, vol. 154(C), pages 243-262.
    8. Wagner, Stephan M. & Ullrich, Kristoph K.R. & Transchel, Sandra, 2014. "The game plan for aligning the organization," Business Horizons, Elsevier, vol. 57(2), pages 189-201.
    9. John Antonakis & Samuel Bendahan & Philippe Jacquart & Rafael Lalive, 2010. "On making causal claims : A review and recommendations," Post-Print hal-02313119, HAL.
    10. Beth A. Bechky, 2006. "Gaffers, Gofers, and Grips: Role-Based Coordination in Temporary Organizations," Organization Science, INFORMS, vol. 17(1), pages 3-21, February.
    11. Jarvis, Cheryl Burke & MacKenzie, Scott B & Podsakoff, Philip M, 2003. "A Critical Review of Construct Indicators and Measurement Model Misspecification in Marketing and Consumer Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 30(2), pages 199-218, September.
    12. Richard L. Daft & Robert H. Lengel, 1986. "Organizational Information Requirements, Media Richness and Structural Design," Management Science, INFORMS, vol. 32(5), pages 554-571, May.
    13. Jon I Martinez & J Carlos Jarillo, 1989. "The Evolution of Research on Coordination Mechanisms in Multinational Corporations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 20(3), pages 489-514, September.
    14. Paula A. Jarzabkowski & Jane K. Lê & Martha S. Feldman, 2012. "Toward a Theory of Coordinating: Creating Coordinating Mechanisms in Practice," Organization Science, INFORMS, vol. 23(4), pages 907-927, August.
    15. Pedroso, Carolina Belotti & da Silva, Andrea Lago & Tate, Wendy Lea, 2016. "Sales and Operations Planning (S&OP): Insights from a multi-case study of Brazilian Organizations," International Journal of Production Economics, Elsevier, vol. 182(C), pages 213-229.
    16. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119.
    17. Tang, Christopher S., 2010. "A review of marketing-operations interface models: From co-existence to coordination and collaboration," International Journal of Production Economics, Elsevier, vol. 125(1), pages 22-40, May.
    18. Niels van Hove, 2016. "An S&OP Communication Plan: The Final Step in Support of Company Strategy," Foresight: The International Journal of Applied Forecasting, International Institute of Forecasters, issue 42, pages 5-10, Summer.
    19. Jay R. Galbraith, 1974. "Organization Design: An Information Processing View," Interfaces, INFORMS, vol. 4(3), pages 28-36, May.
    20. Pamela Danese & Margherita Molinaro & Pietro Romano, 2018. "Managing evolutionary paths in Sales and Operations Planning: key dimensions and sequences of implementation," International Journal of Production Research, Taylor & Francis Journals, vol. 56(5), pages 2036-2053, March.
    21. Mary Beth Pinto & Jeffrey K. Pinto & John E. Prescott, 1993. "Antecedents and Consequences of Project Team Cross-Functional Cooperation," Management Science, INFORMS, vol. 39(10), pages 1281-1297, October.
    22. Sebastian Raisch & Julian Birkinshaw & Gilbert Probst & Michael L. Tushman, 2009. "Organizational Ambidexterity: Balancing Exploitation and Exploration for Sustained Performance," Organization Science, INFORMS, vol. 20(4), pages 685-695, August.
    23. Olhager, Jan & Rudberg, Martin & Wikner, Joakim, 2001. "Long-term capacity management: Linking the perspectives from manufacturing strategy and sales and operations planning," International Journal of Production Economics, Elsevier, vol. 69(2), pages 215-225, January.
    24. John Mello & Terry Esper, 2007. "S&OP, Forecasting, and the Knowledge-Creating Company," Foresight: The International Journal of Applied Forecasting, International Institute of Forecasters, issue 7, pages 23-27, Summer.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Samuel Roscoe & Nachiappan Subramanian & Romina Prifti & Lin Wu, 2020. "Stakeholder engagement in a sustainable sales and operations planning process," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3526-3541, December.
    2. Marcelo Xavier Seeling & Tobias Kreuter & Luiz Felipe Scavarda & Antônio Márcio Tavares Thomé & Bernd Hellingrath, 2021. "Global sales and operations planning: A multinational manufacturing company perspective," PLOS ONE, Public Library of Science, vol. 16(9), pages 1-22, September.
    3. Sahi, Gurjeet Kaur & Gupta, Mahesh C. & Cheng, T.C.E. & Mantok, Stanzin, 2021. "Mitigating the tension in pursuit of operational ambidexterity: The roles of knowledge development and bricolage," International Journal of Production Economics, Elsevier, vol. 239(C).
    4. Maynard, M. Travis & Falcone, Ellie C. & Petersen, Kenneth J. & Fugate, Brian S. & Bonney, Leff, 2020. "Conflicting paradigms in manufacturing and marketing decisions: The effects of situational awareness on team performance," International Journal of Production Economics, Elsevier, vol. 230(C).
    5. Stolze, Hannah J. & Brusco, Michael J. & Smith, Jeffery S., 2021. "Exploring the social mechanisms for variation reduction for direct store delivery (DSD) and vendor managed inventory performance: An integrated network governance and coordination theory perspective," International Journal of Production Economics, Elsevier, vol. 234(C).
    6. Pereira, Daniel Filipe & Oliveira, José Fernando & Carravilla, Maria Antónia, 2023. "Design of a sales plan in a hybrid contractual and non-contractual context in a setting of limited capacity: A robust approach," International Journal of Production Economics, Elsevier, vol. 260(C).
    7. Pereira, Daniel Filipe & Oliveira, José Fernando & Carravilla, Maria Antónia, 2020. "Tactical sales and operations planning: A holistic framework and a literature review of decision-making models," International Journal of Production Economics, Elsevier, vol. 228(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pereira, Daniel Filipe & Oliveira, José Fernando & Carravilla, Maria Antónia, 2020. "Tactical sales and operations planning: A holistic framework and a literature review of decision-making models," International Journal of Production Economics, Elsevier, vol. 228(C).
    2. Tobias Kreuter & Luiz Felipe Scavarda & Antonio Márcio Tavares Thomé & Bernd Hellingrath & Marcelo Xavier Seeling, 2022. "Empirical and theoretical perspectives in sales and operations planning," Review of Managerial Science, Springer, vol. 16(2), pages 319-354, February.
    3. Tuomikangas, Nina & Kaipia, Riikka, 2014. "A coordination framework for sales and operations planning (S&OP): Synthesis from the literature," International Journal of Production Economics, Elsevier, vol. 154(C), pages 243-262.
    4. Unai Apaolaza & Aitor Orue & Aitor Lizarralde & Aitor Oyarbide-Zubillaga, 2022. "Competitive Improvement through Integrated Management of Sales and Operations," Sustainability, MDPI, vol. 14(5), pages 1-18, February.
    5. Kannan Srikanth & Phanish Puranam, 2014. "The Firm as a Coordination System: Evidence from Software Services Offshoring," Organization Science, INFORMS, vol. 25(4), pages 1253-1271, August.
    6. Pedroso, Carolina Belotti & da Silva, Andrea Lago & Tate, Wendy Lea, 2016. "Sales and Operations Planning (S&OP): Insights from a multi-case study of Brazilian Organizations," International Journal of Production Economics, Elsevier, vol. 182(C), pages 213-229.
    7. Ben Ali, M. & D’Amours, S. & Gaudreault, J. & Carle, M-A., 2018. "Configuration and evaluation of an integrated demand management process using a space-filling design and Kriging metamodeling," Operations Research Perspectives, Elsevier, vol. 5(C), pages 45-58.
    8. Tom J. M. Mom & Frans A. J. van den Bosch & Henk W. Volberda, 2009. "Understanding Variation in Managers' Ambidexterity: Investigating Direct and Interaction Effects of Formal Structural and Personal Coordination Mechanisms," Organization Science, INFORMS, vol. 20(4), pages 812-828, August.
    9. Pereira, Daniel Filipe & Oliveira, José Fernando & Carravilla, Maria Antónia, 2022. "Merging make-to-stock/make-to-order decisions into sales and operations planning: A multi-objective approach," Omega, Elsevier, vol. 107(C).
    10. Ambrose, Scott C. & Matthews, Lucy M. & Rutherford, Brian N., 2018. "Cross-functional teams and social identity theory: A study of sales and operations planning (S&OP)," Journal of Business Research, Elsevier, vol. 92(C), pages 270-278.
    11. Noroozi, Sayeh & Wikner, Joakim, 2017. "Sales and operations planning in the process industry: A literature review," International Journal of Production Economics, Elsevier, vol. 188(C), pages 139-155.
    12. Hanisch, Bastian & Wald, Andreas, 2014. "Effects of complexity on the success of temporary organizations: Relationship quality and transparency as substitutes for formal coordination mechanisms," Scandinavian Journal of Management, Elsevier, vol. 30(2), pages 197-213.
    13. J. F. F. Almeida & S. V. Conceição & L. R. Pinto & B. R. P. Oliveira & L. F. Rodrigues, 2022. "Optimal sales and operations planning for integrated steel industries," Annals of Operations Research, Springer, vol. 315(2), pages 773-790, August.
    14. Eric Christian Brun, 2016. "Ambidexterity and Ambiguity: The Link Between Ambiguity Management and Contextual Ambidexterity in Innovation," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 13(04), pages 1-29, August.
    15. Marcelo Xavier Seeling & Tobias Kreuter & Luiz Felipe Scavarda & Antônio Márcio Tavares Thomé & Bernd Hellingrath, 2021. "Global sales and operations planning: A multinational manufacturing company perspective," PLOS ONE, Public Library of Science, vol. 16(9), pages 1-22, September.
    16. Pereira, Daniel Filipe & Oliveira, José Fernando & Carravilla, Maria Antónia, 2023. "Design of a sales plan in a hybrid contractual and non-contractual context in a setting of limited capacity: A robust approach," International Journal of Production Economics, Elsevier, vol. 260(C).
    17. Samuel Roscoe & Nachiappan Subramanian & Romina Prifti & Lin Wu, 2020. "Stakeholder engagement in a sustainable sales and operations planning process," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3526-3541, December.
    18. Leena Pekkinen & Kirsi Aaltonen & Jaakko Kujala & Janne Härkönen, 2015. "Evaluating Sources of Risks in Large Engineering Projects: The Roles of Equivocality and Uncertainty," International Journal of Management, Knowledge and Learning, International School for Social and Business Studies, Celje, Slovenia, vol. 4(2), pages 163-180.
    19. Milomir Vojvodic & Christian Hitz, 2022. "Relation of Data Governance, Customer-Centricity and Data Processing Compliance," Central European Business Review, Prague University of Economics and Business, vol. 2022(5), pages 109-148.
    20. J. Henri Burgers & Jeffrey G. Covin, 2016. "The contingent effects of differentiation and integration on corporate entrepreneurship," Strategic Management Journal, Wiley Blackwell, vol. 37(3), pages 521-540, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:214:y:2019:i:c:p:80-94. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.