Knowledge management process in supply chains partnership

magazinebindΔιαχείριση

6 Νοε 2013 (πριν από 3 χρόνια και 8 μήνες)

76 εμφανίσεις

Knowledge

Management Activities and the Partnership in Supply Chain Performance

J
un
-
zhi chiu
12

Cheng
-
Jen Hung
3



1.2.

Graduate School of Management,

I
-
Shou University


Department of

Distribution Management
, Kao Fong
C
ollege

3
Yuh
-
Ing Junior College of

Health Care & Management










Corresponding

author :
J
un
-
Zhi Chiu ,

No.
38
, S
icnsieng

Rd.,
Changjhih

Township,
Pingtung

County
98
0, Taiwan

(R.O.C.) ;
Tel
:
886
-
8
-
7626365

ext. 3003 ;
F
ax: 886
-
8
-
7627882 ;
E
-
mail:
jun
-
zhi65@hotmail.com



Abstract

The purpo
se of this study is to explore the relationship between knowledge management and supply
chains. The key point of this relationship is that how the knowledge can create the more effective
supply chains management.

This paper was applied the qualitative rese
arch approach as the methodology. Based upon
The
concept of cooperative competence
,

the previous studies and literature indicate that that the
Supply

chain,
Partnership

and

Knowledge

management have the significant relationship among those three
variables.

The result of this research find that the supply chains


organizations must pay attention on
the connection of the all supply chain

s companies in order to applied the knowledge management, the
partnership to help and
sharing

new knowledge all the members

to learn which can increase the supply
chain performance more effective.






K
eywords:
Supply

Chain Management,
Partnership
,

Knowledge

Management



Introduction

The supply chain

(SC)

is a global network used to deliver products and services from raw mate
rials
to customers, through an engineered flow of information, physical distribution and cash
. SC

integration is considered as a strategic tool,

which attempts to minimize the operating costs and
thereby

enhancing values for the stack
-
holders (customers an
d

shareholders) by linking all
participating players throughout

the system; from supplier’s suppliers to the customers.

Su
pply chain
management (SCM) partnership

require
s

trust and commitment for long
-
term cooperation along with a
willingness to share risk
s.
(Luo, 2003).
Partnership

can be defined as a complex members interaction
channel. In this relationship the members need to trust and cooperative with each other in the way to
have this kind of relation the goal is very important because only have the sa
me goal then the members
can do anything at the same path toward the goal (Dixon, 2000). Thurow (1999) proposed that the
knowledge management (KM) is one of the important
parts

in the organization. The KM can increase
the organization

s
comprehension
. For
the supply chain companies the knowledge resource sharing
and
delivery

are the important facts (Luo, 2003). Park and Luo (2001) found that different kind
characteristics of knowledge could affect the KM. From pervious studies and literatures once can find
that having the well knowledge management can increase the SC companies


performance. (Nonaka,
1994; Luo,2003).

The aim of this study is to explore the following sections; first, the dimensions of KM, partnership
and the SCM. Second, how does the different

partnership affect the KM and SC

s performance? Third,
the
c
orrelational model in SC and KM. Fourth, based upon the literature and previous studies to
propose the research questions.

Literature Review

SC

s
Partnership

and performance

SCM is the integratio
n of all activities associated with the flow and transformation of goods from
new materials, through to the end user, as well as associated information flows, through improved
SC

relationships to achieve a sustainable competitive advantage (Handfeld and Ni
chols, 199
9
).

The literature is replete with buzzwords such as: integrated

purchasing strategy, integrated logistics,
supplier

integration, buyer

supplier partnerships, supply base

management, strategic supplier alliances,
SC
synchronization and
SCM
, to

ad
dress elements or stages of this new management

philosophy (Tan
et al.
, 199
9
). SCM has been defined to explicitly recognize the strategic nature of coordination
between trading partners and to explain the dual purpose of SCM: to improve the performance of
an
individual organization, and to improve the performance of the whole supply chain.

The concept of
SCM has received increasing attention from academicians, consultants, and business managers alike

(
Croom

et al
.,2000

Tan

et al
.,2002).

Many organizations h
ave begun to recognize that SCM is the key
to building sustainable competitive edge for their products and/or services in an increasingly crowded
marketplace
.

Otherwise, from the studies and literature above, the coordination plays an important role and tr
ust
and commitment are the key factors of coordination (
Tan

et al
., 2002). In order to
clarify

the meaning
of coordination, the trust and commitment were needed to discuss as follow.

Trust

Trust is frequently defined as a willingness to take risk (Mayer

et

al.
, 1995) and a willingness to rely
on an exchange partner

in whom one has confidence. Trust exists when one party has

confidence in an
exchange partner’s reliability and integrity

(Morgan and Hunt, 1994).

In their attempt to bring trust
into the

TCA

fra
mework,

scholars have argued that trust has the important effect

of lowering
transaction costs. Trust is frequently defined

as a willingness to take risk (Mayer et al.
,

1995). Trust
exists

when one party has confidence in an exchange partner's

reliability
and integrity (Morgan and
Hunt
,
1994
).
The outcome of trust, therefore, is the "fi
r
m's belief

that another company will perform
actions that will

result in positive outcomes to the firm as well as not take

unexpected actions that
result in negative outcomes
"

(Anderson and Narus
,

199
0
). Analyzing their field data,

Beccerra and
Gupta (1999) categorized both key negative

consequences of lack of trust and key positive results

from high
-
trust relationships. Pertaining to negative

aspects resulting from a lack of
trust, they
observed tine

emergence of higher transaction costs and agency costs

in low
-
trust relationships.
For
instance, a manager's time

and energy spent on dealing with low
-
trust relationships

are higher than
those spent in dealing with high
-
trust

rela
tionships. In contrast, a partnership with high trust

would
enjoy open
mind
and willingness to

take risks. People in high
-
trust relationships are not afraid

to share
all information and believe in tile content of the

information received. Furthermore, part
ners with
high
-
trust relationships are more inclined to take risks than

low
-
trust partners. They also indicated that
the overall

performance would be enhanced if th
e
problems of dis
-
trust were reduced (Beccerra and
Gupta 1999).

Commitment

This study
adopt
s

the concept of commitment from (Morgan and Hunt, 1994) who define it as “an
exchange partner believing that an ongoing relationship with another is so important as to warrant
maximum efforts at maintaining it; that is, the committed party believes the rel
ationship endures
indefinitely”, and commitment is central to all the relational exchanges between the firm and its
various patterns. The above definition has its roots in social exchange (Cook and Emerson, 1978),
marriage (Thompson and Spanier, 1983), and

organizations (Meyer and Allen, 1984).

Without
commitment, business relationship and subsequent transactions become fragile and vulnerable.
Accordingly, enduring commitment is a basic requirement for successful
SC
implementation.

(

Ik
-
Whan G. Kwon and

Tae
won, 2005 )

SC

s
Performance

The literature on ‘‘competitive priorities’’ forms the

basis for the performance variable included in
our study.

This works suggests that four ‘‘priorities’’ are directly

tied to

SC

s

performance.
Speed
refers to the

time it ta
kes from initiation to completion of an order

fulfillment process in the
SC
(Mentzeret al., 2001).

The focus of speed is the ability to deliver

on time, according to a set schedule.
In such cases, the

organization may not have the least costly, greatest

fl
exibility, or the highest quality
process, but is able to

compete on the basis of reliably delivering products

when promised (Ward et al.,
1998).

Quality
,
cost
, and
flexibility
, in our study, are tied to

the order fulfillment process itself, not
directly t
o the

product or service resulting from it.
SC

that

stress quality
-
based operations continually
focus on

improving their
SC

processes to increase

product reliability and customer satisfaction
(Youndt

et al., 1996). Ward et al., (1998)

find
Cost
-
driven
SC

s
trive to create

customer value by either
reducing costs or increasing

benefits in the
SC

equation. Flexibility refers to a

SC
’s agility,
adaptability, and responsiveness

to the needs of its users (Youndt et al., 1996).

S
C

s
Partnership

and
K
M

The concept o
f cooperative competence

was proposed by Silvadas and Dwyer (2000). This concept
based upon the
trustworthy

which contains two main dimensions trust and commitment. Based upon
the trust the organization can having an effective coordinate, sharing the knowl
edge, and cooperation.
Partnership

can be defined as a complex member interaction channel. In this relationship the members
need to trust and cooperative with each other in the way to have this kind of relation the goal is very
important because only have
the same goal then the members can do anything at the same path toward
the goal which they have (Dixon, 2000).

Nonaka and Takeuchi (1995) proposed that

the

knowledge creation was generated by the interaction
of

tacit knowledge and explicit knowledge.

DeLon
g and Fahey (2000) developed a
n
useful framework
to classify knowledge, which distinguished among human, social, and

structured knowledge. Human
knowledge is what humans know or know how to do. Social knowledge is usually tacit knowledge that
arises out

of

relationships. An example of social knowledge is the way employees at different levels in

the employment hierarchy interact with other employees (e.g. a cutter and a finisher versus a

cutter
and a manager).

Structured knowledge is rooted in the systems, p
rocesses, rules, and

routines of an
organization and is usually explicit knowledge
.
Many organizations are now engaging in KM in order
to leverage knowledge

both within their organization and externally to their customers and suppliers
(Rubinstein
-
Montano
et al. 2001). KM is an emerging filed which is a matter of grave concern of
academic

and industry.

Scarbrough (1998) discusses that the knowledge
-
based view of a
fo
rm focuses
on

fostering specialization of employees knowledge and on creating internal netwo
rks of these human

knowledge sources, while business process reengineering focuses on external relationships for

rapidly
growing performance complemented by generalization of the knowledge source.

Much of the
literature on managing knowledge in organizatio
ns has dealt with specific

elements of the knowledge
enterprise, such as knowledge transfer (Szulanski, 1996)
, knowledge creation

(
Nonaka
,1995
), the
design of technology tools for

knowledge sharing (Davenport and Prusak, 1998
;

Nonaka
,2000
); and
developing
a knowledge strategy(Zack, 1999).

When the organizations realize that they don

t have enough knowledge or skill to improve their
products they have to enrich
their

knowledges. Normally when the organization meets this, they used
to catch or learn the new k
nowledge from outside of organization (Zack
, 1999
). In this kind of
situation, when the organization earning the new tech or skills should be faced that the organization
change and that will be affected the sc
partnership
.

According to the
concept of coope
rative competence

and the literatures
above

once can indicate that
the supply chain management has significant relationship in KM.

KM
in
SC’
s

performance

The SC could look like the channel
which

going through sharing and integrating. This process can
creat
e more effective way to manage the organization (Ronald, 1985). The sharing means in
System

the suppler and customer can both sharing the resource and profits. For the integrating means that the
supplier can integrate the whole SC

s companies or
organizati
ons, which

can reduce the cost, risk , and
others. This kind of strategy once could be defined as the SC performance.

In the previous studies and literature found that m
any organizations are now engaging in KM in
order to leverage knowledge

both within the
ir organization and externally to their customers and
suppliers (Rubinstein
-

Montano et al. 2001). KM is an emerging filed, which is a matter of grave
concern of academic

and industry.

Scarbrough (1998) adopt knowledge
-
base as form focused on
fostering spe
cialization of employees


knowledge and on
internal networks of these human

knowledge
sources
, when the organization processing reengineering which
concentrate
d on
external relationships
for

rapidly growing performance complemented by generalization of the

knowledge source
; in the end
Scarbrough (1998) concluded that
the
KM

has a significant relationship

in
SC

performance.

Based upon the literature and pervious studies can be
concluded

that
S
C
Partnership

and
K
M have a
significant relationship (
Tan
et al.
,
1998; New, 1997
;
Croom

et al
.,2000

Tan

et al
.,2002
). For the
S
C
Partnership

and
K
M the literature and
t
he concept of cooperative competence

(Silvadas and Dwyer
(2000) indicate that
S
C
Partnership

and
K
M have significant relationship. The previous studies a
nd
previous studies also can indicate that
KM
in
SC

performance has significant relationship between
these two factors

(Scarbrough
,
1998
;
Rubinstein
-
Montano et al. 2001
).

Based upon those
literature

and studies, this study will focus on the relationship am
ong
Supply

chain,
Partnership
,

Knowledge

management to investigate more detail relationship and
factors, which

might influence those variables.














Fig 1.
The
conceptual

model for this study.



SC Partnership

Trust


Commitment

KM activities

Knowledge transfer

Knowledge storing

Knowledge sharing

Knowledge

application



SC performance

Speed

Quality

Cost

F
lexibility

Conclusion and Implication

The purpose of this st
udy is to explore the relationship among knowledge management, partnership,
SC’
s

performance

and SC. The key point of this relationship is that how the knowledge can create the
more effective SCM. There are three research questions have been proposed.

Fir
st, the partnership has significant relationship with KM.

Partnership can be defined as more than one
member

whom doing the same thing which become
some kind of
cooperation ship
. The members should
negotiat
e and cooperate together then sharing the
advanta
ges and risks; together to reach the same goal (Zack, 1999). This kind of relationship also exist
in KM; the concept of cooperative competence which proposed by Silvadas and Dwyer (2001). The
key dimensions of this concept contains trust and commitment the
se two dimensions. Through these
three dimensions can have the commitment among all members in the SC so we can call this kind of
phenomenon

is one kind of partnership. Anyway from the above evidences once can indicate that the
partnership has significant
relationship with KM.

Second, the partnership has significant relationship with SC performance.

The value chain analysis offers the organizations to increase their competition and implication

s
direction (Porter, 1985). Due to the
digital

global
ization, i
n the past decades, the concept of
organization function has been changed from inner arrangement became the integration between inside
and outside factors of organization. The whole SC
should

be cooperated among each
single

part of
SC

s company. Therefore
the flowing supply chain system is the key for all different kinds of SC
organization (Lorenzoni and Fuller, 1995). According to the literature and
previous

studies can
indicate the partnership has significant relationship with SC performance.

Third, the
SC performance has significant relationship with KM.

The success in the whole supply chain performance is relied on the members


cooperation,
interaction and commitment which also regarding to the
trust

and fully participating in order to sharing
the knowl
edge then increase the performance of the SC (Barquin, Bennet, and Remez, 2001). By
going through the
definition

of ontology to
promote

the all SC

s company having the same
recognition

of knowledge then do with the semantic web technology extending at the
same time in order to
making the knowledge transfer more quick and easily which can increase SC performance. Base
among above once can indicate the KM has significant relationship with SC performance.

Recently the KM had been studied in many ways but only

few in the partnership and SCM. Due to
the lacking of the whole structure of those, this research is tended to seek that the SC


organizations
must pay attention on the connection of the all SC

s companies in order to applied the KM, the
partnership to he
lp and
sharing

new knowledge all the members to learn which can increase the SC
performance more effective.





References

Anderson J. C. and Narus, J. A. (1990)


A model of distributor firm and manufacture firm working
partnerships
’,
Journal of Marketing
,

54(1): 42
-
58.

Beccerra, M. and Gupta A. K. (1999)


Trust within organization: integrating the trust literature with
agency theory and transaction costs economics

,

Public Administration Quarterly
, 23(2)
:
177
-
203.

Barquin R. C., Bannet

A. and Remez S.G.

(2
001)

Building Knowledge Management

Environments
for Electronic Government
, 2001, Vienna, VA: Management

Concepts.

Bowersox, D.J., Closs, D.J. and Stank, T.P.
,
(2000)

Ten

mega
-
trends that will revolutionize supply
chain logistics

,

Journal of Business Logi
stics
, 21
(
2
):
1
-
16.

Croom S, Romano P, Giannakis M. (2000)

Supply chain management: an analytical framework for
critical literature review

,
European Journal of Purchasing and Supply Management
, 6(1)
:
67

83.

Cook, K.S. and Emerson, R.M. (1978)

Power, equ
ity and

commitment in exchange networks


,
American Sociological Review
, 43
:
721
-
7
39.

Delong, D. W., and Fahey, L
.

(
2000
)


Diagnosing
c
ultural
b
arriers to
k
nowledge

m
anagement

,

The
Academy of Management Executive
, 14
(
4
):

113
-
127.

Dixon, N. M.

(2000)

Commo
n Knowledge: How Companies Thrive by Sharing What They

Know
,
MA: Harvard Business School Press.

Davenport, T.H., Prusak, L.
(
1998
)

Working Knowledge: How Organizations Manage What They
Know
,

Boston
:

Harvard

Business School Press
.

G. Prem Premkumar

(
2000
)

Inter
-
organization systems and supply chain management: an
information processing perspective

,

Information Systems Management
,

17(3): 56
-
69
.

Handfield, R. B., Ragatz, G. L., Peterson, K. J., and Monczka, R. M.
(
1999
)


Involving

Suppliers in
New Product De
velopment

,
California Management Review
,

42
(
1
):
59
-
82.

Ik
-
Whan G. Kwon

and
Taewon S
. (2005)


Trust, commitment and relationships in supply

chain
management: a path analysis

,

Supply Chain Management: An International Journal
, 10(1): 26
-
33.

Lorenzoni, G. a
nd Fuller, C. B.
(
1995
)

Creating a Strategic Center to Manage a Web of

Partner

,

California Management Review
, 37
(
3
):

146
-
163.

Luo, Y.
(
2003
)


Industrial Dynamics and Managerial Networking in an Emerging Market:

The Case
of China

,
Strategic Management Jo
urnal
, 24
(13):
1315
-
1327.

Park, S. H.

and Luo, Y.
(
2001
)


Guanxi and Organizational Dynamics: Organizational

Networking
in Chinese Firms

,
Strategic Management Journal
, 22
(5):
455
-
477.

Handfield, R.B. and Nichols, E.L.

(
1999
)

Introduction to Supply Chain M
anagement
,

Prentice Hall,
Englewood Cliffs, NJ.

Meyer, J.P. and Allen, N.J. (1984)

Testing the ‘side
-
bet theory’ of organizational commitment:
some methodological considerations

,
Journal of Applied Psychology
, 69(3)
:

372
-
378.

Mentzer, J.T., Flint, D.J.,
Hult, G.T.M.,
(
2001
)


Logistics service quality

as a segment
-
customized
process

.
Journal of Marketing
,

65
(4):

82

104.

Mayer, R.C., Davis, J.H. and Schoorman, F.D. (1995)


An integrative model of organizational trust

,
Academy of

Management Review
, 29
(3):
709
-
34.

Morgan, R.M. and Hunt, S.D. (1994)


The commitment

trust

theory of relationship marketing

,


Journal of

Marketing
, 58
(3):

20
-
38.

Nonaka, I.

(
1994
)


A
d
ynamic
t
heory of
o
rganizational
k
nowledge
c
reation

,

Organization

Science
,

15
(1):
14
-
37.

Nonaka,
I., and Takeuchi, H.

(
1995
)

The Knowledge
-
Creating Company
, New York,

NY: Oxford
University Press.

Nonaka, I., Toyama, R., Konno, N. (2000).

SECI, Ba and leadership: a unified model of dynamic
knowledge creation

,

Long Range Planning
,

33(1)
:

5

34.

New, S.
J.,
(
1997
)

The scope of supply chain management research

,

Supply Chain Management
,

2

(
1
):
15
-
22.

Porter, M. E.
(
1985
)

Technology and
c
ompetitive
a
dvantage

,

Journal of Business Strategy
,

5
(3):

60
-
78.

Ronald, R. A.

(
1985
)

Business Process Reengineering
an Electronic Products Supply Chain’,

The
Journal of Supply Chain Management
, 35
(
3
):

16
-
24.

Rubenstein
-
Montano, B.
,

Liebowitz, J.; Buchwalter, J.; McCaw, D.; Newman, B.

and

Rebeck, K.
(2001)


SMART

v
ision: a knowledge
-
management methodology

,

Journal of Kn
owledge Management
,
5
(
4
):
300

310.

Sivadas, E. and Robert D. F. (2000)

An examination of organizational factors influencing new
product development in internal and alliance
-
based process

,

Journal of Marketing
, 64(1): 31
-
40.

Scarbrough, H. (1998)

BPR an
d the knowledge
-
based view of the form.
Knowledge and Process
Management
, 5 (3)
:
192
-
200.

Szulanski, G.
(
1996)



Exploring internal stickiness : impediments to the transfer of best practice
within the firm

,

Strategic Management Journal
, 17
:
27

43.

Tan, K.
C., Hand
field
, R.B., Krause, D.R.
(
1998
)


Enhancing
fi
rm's

performance through quality and
supply base management: an

empirical study

,

International Journal of Production Research
,

36
(
1
0):
2813
-
28
37.

Tan
,

K
,
C, Lyman
,

S
.
B
.
, Wisner
,

J
.
D
.

(
2002
)


Supply cha
in management
:

a strategic perspective

,
International Journal of Operations and Production Management
,
22
(6): 614
-
631.

Tan, K., Kannan, V., Handfield, R., and Ghosh, S.
(
1999
)

Supply
c
hain
m
anagement

: An

Empirical
s
tudy of
i
ts
i
mpact on
p
erformance

,
In
ternational Journal of

Operations and Production
Management
, 19
(10):
1034
-
1052.

Thompson, L. and Spanier, G.B. (1983)


The end of marriage and acceptance of marital
termination

,
Journal of

Marriage and the Family
, 45
:

103
-
1
13.

Thurow, L. C.

(
1999
)

Buildin
g Wealth: the New Rules for Individuals, Companies, and

Nations in a
Knowledge
-
Based Economy


New York: Happer Collins.

Ward, P.T., McCreery, J.K., Ritzman, L.P., Sharma, D.
(
1998
)


Competitive priorities in operations
management

,
Decision Sciences

,

29(4)
:

1035

1046.

Youndt, M.A., Snell, S.A., Dean, J.W., Lepak, D.P.

(
1996
)

Human

resource management
:

manufacturing strategy, and firm performance

,
Academy of Management Journal

,
39(4)
:

836

866.

Zack, M.H. (1999)

Developing a knowledge strategy

,

California Management Review
, 41(3)
:

125

145.