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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)

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.

Suggested Citation

  • Elena Revilla & Luis Gomez - Mejia, 2008. "The role of the supply chain executive in supply chain integration: a behavioral approach," Working Papers Economia wp08-24, Instituto de Empresa, Area of Economic Environment.
  • Handle: RePEc:emp:wpaper:wp08-24
    as

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    File URL: http://latienda.ie.edu/working_papers_economia/WP08-24.pdf
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    References listed on IDEAS

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    1. 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.
    2. March, James G., 1988. "Variable risk preferences and adaptive aspirations," Journal of Economic Behavior & Organization, Elsevier, vol. 9(1), pages 5-24, January.
    3. Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk," Econometrica, Econometric Society, vol. 47(2), pages 263-291, March.
    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 251-278, October.
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    Keywords

    Firm performance; Supply chain management; Risk;

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