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On the relationship between financial performance and position of businesses in supply chain networks

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  • Seiler, A.
  • Papanagnou, C.
  • Scarf, P.

Abstract

We investigate how the network position of organisations in an extended supply chain network impacts their financial performance. The paper argues that performance measurement tools should incorporate a network (external, connectedness) perspective in addition to an internal financial perspective. We merge local networks of companies in a supply chain into a single, extended network in which the transactional value-flows on arcs are known. Network position characteristics of focal companies are determined using social network analysis. The impact of these characteristics on financial performance is studied using regression analysis. In the context of our case study, there is some evidence that profitability is related to connectedness and market share. In this way, the paper describes how organisations might enrich their performance measurement tools with connectedness metrics.

Suggested Citation

  • Seiler, A. & Papanagnou, C. & Scarf, P., 2020. "On the relationship between financial performance and position of businesses in supply chain networks," International Journal of Production Economics, Elsevier, vol. 227(C).
    • Handle: RePEc:eee:proeco:v:227:y:2020:i:c:s0925527320300827
    DOI: 10.1016/j.ijpe.2020.107690
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    Cited by:

    1. Simpson, N.C. & Tacheva, Zhasmina & Kao, Ta-Wei, 2023. "Semi-directedness: New network concepts for supply chain research," International Journal of Production Economics, Elsevier, vol. 256(C).
    2. Rasool Lavaei Adaryani & Khalil Kalantari & Ali Asadi & Amir Alambeigi & Hesamedin Gholami & Naser Seifollahi, 2023. "Information sharing antecedents in the supply chain: a dynamic network perspective," Operations Management Research, Springer, vol. 16(2), pages 887-903, June.
    3. Ana Isabel Bento & Carla Cruz & Gabriela Fernandes & Luís Miguel D. F. Ferreira, 2024. "Social Network Analysis: Applications and New Metrics for Supply Chain Management—A Literature Review," Logistics, MDPI, vol. 8(1), pages 1-20, February.
    4. Donghun Lee & Jongeun Kim & Seokwoo Song & Kwanho Kim, 2023. "Discovering Sustainable Business Partnerships through a Deep Learning Approach to Maximize Potential Value," Sustainability, MDPI, vol. 15(22), pages 1-14, November.
    5. Kayvan Miri Lavassani & Bahar Movahedi, 2021. "Firm-Level Analysis of Global Supply Chain Network: Role of Centrality on Firm’s Performance," International Journal of Global Business and Competitiveness, Springer, vol. 16(2), pages 86-103, December.
    6. Satyendra Kumar Sharma & Praveen Ranjan Srivastava & Ajay Kumar & Anil Jindal & Shivam Gupta, 2023. "Supply chain vulnerability assessment for manufacturing industry," Annals of Operations Research, Springer, vol. 326(2), pages 653-683, July.
    7. Durowoju, Olatunde A. & Chan, Hing Kai & Wang, Xiaojun & Akenroye, Temidayo, 2021. "Supply chain redesign implications to information disruption impact," International Journal of Production Economics, Elsevier, vol. 232(C).

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