Models for understanding the influence of Supply Chain Governance on Supply Chain Performance

The purpose of this study is to develop models and analyse the influence of supply chain governance (SCG) and its conceptions (contractual, relational and transactional) on supply chain performance (SCP).

Multiple case studies and survey methods were used. Data collection in the multiple case studies was performed by in-depth interviews with supply chain executives from top strategic levels in six companies. The research instrument was applied to 185 executives from large companies that possessed a broad, complex supply chain in Brazil.

It was identified that SCG, comprising contractual, relational and transactional aspects, has a positive influence on operational and financial SCP. SCG was found to be a more comprehensive view of the supply chain that focuses on more strategic aspects and long-term inter-organizational relationships. SCG affects SCP, primarily in the operational aspects with regard to global costs and in the financial aspects of investment return.

SCG is a topic that has been widely studied in recent years for analysing inter-organizational relations as a multi-dimensional phenomenon embedded in the company’s structures and processes. Studies analysing all aspects of SCG at the same time, however, have not been found. Moreover, there are a number of performance indicators, but there is a lack of consensus on what determines the performance of these supply chains. Furthermore, few studies have attempted to understand the effects of SCG on supply chain performance.