2006
DOI: 10.1007/s10479-006-0023-x
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The efficiency of joint decision making in buyer-supplier relationships

Abstract: This paper examines the effectiveness of joint decision making within 87 pairs of buyer-supplier relationships in manufacturing. Joint decision making is an important attribute of a more cooperative supply chain relationship that may ultimately result in a better performance. Efficiency is modeled as a multiple criteria problem using Data Envelopment Analysis (DEA). Inputs of five kinds of joint decision making activity are examined relative to two measures of output based on the assessment of the buying firm.… Show more

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Cited by 32 publications
(24 citation statements)
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“…Joint planning activities are very important in achieving collaboration as these define the interorganizational processes between the collaborating parties (Lummus et al, 1998;Simatupang and Sridharan, 2005). Trust and transparency are important in joint decision making since it involves an exchange of information as well as sharing of resources and processes (Biehl et al, 2006;Potocan, 2009 (Chu and Fang, 2006;Zailani et al, 2008). The real test, however, whether supply chain parties have trust in their relationship, is when both parties are ready to share private and even proprietary information (Doney and Cannon, 1997;Gullet et al, 2009).…”
Section: Hypothesis Developmentmentioning
confidence: 99%
See 1 more Smart Citation
“…Joint planning activities are very important in achieving collaboration as these define the interorganizational processes between the collaborating parties (Lummus et al, 1998;Simatupang and Sridharan, 2005). Trust and transparency are important in joint decision making since it involves an exchange of information as well as sharing of resources and processes (Biehl et al, 2006;Potocan, 2009 (Chu and Fang, 2006;Zailani et al, 2008). The real test, however, whether supply chain parties have trust in their relationship, is when both parties are ready to share private and even proprietary information (Doney and Cannon, 1997;Gullet et al, 2009).…”
Section: Hypothesis Developmentmentioning
confidence: 99%
“…It was hypothesized that joint planning and decision making are associated with trust as it would be easier for firms to come together and do collaborative planning if the parties involved relate well with each other and can communicate 7 with each other (Ha and Park, 2011) and would be ready at least to share data necessary for the collaborative demand and supply planning. The presence of trust in both parties motivates them to honor their division of work and responsibilities inherent in joint planning and decision making (Mhyr and Spekman, 2005;Biehl et al, 2006;Potocan, 2009).…”
Section: Relationship Between Supply Chain Collaboration and Trustmentioning
confidence: 99%
“…The latter activity is related to sharing technology information and sharing of decision making (Kim and Oh, 2005;Petersen et al, 2003, Bozdogan et al, 1998McIvor and Humphreys, 2004). Sharing of technology information and decision making is facilitated by integrating the suppliers on the development team (Biehl, 2006). This approach is similar to an integrated approach to NPD project coordination (Lakemond et al, 2006b), which provides good conditions for knowledge integration.…”
Section: Managerial Practicesmentioning
confidence: 99%
“…Biehl et al (2006) Comparison of the effectiveness of joint decision making within 87 pairs of buyer-supplier relationships.…”
Section: Appendix 2 Primary Data Used For Assessing Uncertainty Durimentioning
confidence: 99%