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The role of the supply chain executive in supply chain integration: a behavioral approach

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  • ELENA REVILLA

    ()
    (Instituto de Empresa)

  • LUIS GOMEZ - MEJIA

    ()
    (Instituto de Empresa)

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    Abstract

    Applying a behavioural approach of agency theory, this paper aimed to identify the most appropriate employment and compensation system (ECS) for supply chain executives in order to foster supply chain integration. We attempted to develop a novel approach of how encourages supply chain integration from the perspective of managerial incentives, an enabler that has not been analyzed in the literature. The paper presents the analysis of three sources of risk bearing - compensation risk, employment risk and environmental risk - which can adversely influence supply chain executives´ risk-taking behaviour, rendering them less willing to promote supply chain integration.

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    File URL: http://latienda.ie.edu/working_papers_economia/WP08-24.pdf
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    Bibliographic Info

    Paper provided by Instituto de Empresa, Area of Economic Environment in its series Working Papers Economia with number wp08-24.

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    Length: 24 pages
    Date of creation: Apr 2008
    Date of revision:
    Handle: RePEc:emp:wpaper:wp08-24

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    Keywords: Firm performance; Supply chain management; Risk;

    This paper has been announced in the following NEP Reports:

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    1. Amos Tversky & Daniel Kahneman, 1979. "Prospect Theory: An Analysis of Decision under Risk," Levine's Working Paper Archive 7656, David K. Levine.
    2. Richard H. Thaler & Eric J. Johnson, 1990. "Gambling with the House Money and Trying to Break Even: The Effects of Prior Outcomes on Risky Choice," Management Science, INFORMS, vol. 36(6), pages 643-660, June.
    3. March, James G., 1988. "Variable risk preferences and adaptive aspirations," Journal of Economic Behavior & Organization, Elsevier, vol. 9(1), pages 5-24, January.
    4. Asanuma, Banri, 1989. "Manufacturer-supplier relationships in Japan and the concept of relation-specific skill," Journal of the Japanese and International Economies, Elsevier, vol. 3(1), pages 1-30, March.
    5. Tversky, Amos & Kahneman, Daniel, 1986. "Rational Choice and the Framing of Decisions," The Journal of Business, University of Chicago Press, vol. 59(4), pages S251-78, October.
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