TY - JOUR
T1 - Broadening the perspective of supply chain finance
T2 - The performance impacts of network power and cohesion
AU - Carnovale, Steven
AU - Rogers, Dale
AU - Yeniyurt, Sengun
N1 - Publisher Copyright:
© 2018 Elsevier Ltd
PY - 2019/3
Y1 - 2019/3
N2 - Because firms do not operate in isolation, they are bound by the structure of the networks in which they are embedded. This structure has implications on a firm's ability to access resources and utilize them to their advantage. We consider two critical components of this network structure: network power and network cohesion. Both of these network structures can be critical determinants of firm financial success. Yet, to date the extant research has not yet considered the role of network relations in the context of Supply Chain Finance (SCF). This manuscript attempts to contribute to this gap. Through the use of a dynamic supply chain network structure, we test the role that network power and cohesion have on a firm's financial performance. The results indicate network cohesion contributes positively to efficiency in financial performance, whereas power is a critical factor in earnings performance. Taken together, the study advances a nuanced perspective of managing the firm's levels of network power and cohesion to allow for heightened financial performance.
AB - Because firms do not operate in isolation, they are bound by the structure of the networks in which they are embedded. This structure has implications on a firm's ability to access resources and utilize them to their advantage. We consider two critical components of this network structure: network power and network cohesion. Both of these network structures can be critical determinants of firm financial success. Yet, to date the extant research has not yet considered the role of network relations in the context of Supply Chain Finance (SCF). This manuscript attempts to contribute to this gap. Through the use of a dynamic supply chain network structure, we test the role that network power and cohesion have on a firm's financial performance. The results indicate network cohesion contributes positively to efficiency in financial performance, whereas power is a critical factor in earnings performance. Taken together, the study advances a nuanced perspective of managing the firm's levels of network power and cohesion to allow for heightened financial performance.
KW - Network theory
KW - Resource dependency
KW - Supply chain finance
KW - Supply network structure
UR - http://www.scopus.com/inward/record.url?scp=85062783850&partnerID=8YFLogxK
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U2 - 10.1016/j.pursup.2018.07.007
DO - 10.1016/j.pursup.2018.07.007
M3 - Article
AN - SCOPUS:85062783850
SN - 1478-4092
VL - 25
SP - 134
EP - 145
JO - Journal of Purchasing and Supply Management
JF - Journal of Purchasing and Supply Management
IS - 2
ER -