Supply Management Under High Goal Incongruence: An Empirical Examination of Disintermediation in the Aerospace Supply Chain

Decision Sciences - Tập 39 Số 3 - Trang 507-540 - 2008
Christian L. Rossetti1, Thomas Y. Choi2
1Department of Business Management, College of Management, North Carolina State University, Raleigh, NC 27695, e-mail: [email protected]
2Department of Supply Chain Management, W. P. Carey School of Business, Arizona State University, Tempe, AZ 85287, Yonsei University School of Business, Seoul, 120‐749, Korea, e‐mail: [email protected]

Tóm tắt

ABSTRACTAftermarket sales and profits are becoming an increasingly important part of an original equipment manufacturer's (OEM) business model. Because replacement parts often do not require further manufacturing, OEMs act as intermediaries in the aftermarket. As with any intermediary, the OEM must concern itself with suppliers disintermediating its supply chain selling replacement parts directly to the OEM's customers. We frame supply chain disintermediation (SCD) as a principal–agent contracting problem between an OEM buyer and a supplier. Hypotheses relate contract conditions, goal incongruence, supplier capabilities and contract enforcement to SCD. The data are collected from the aerospace industry using a multimethod study, combining an Internet‐based survey with archival data. Causal modeling with structural equation modeling (SEM) shows general support for the hypotheses. Particularly, SCD is positively related to buyer–supplier goal incongruence. The agency model offers insights that differ from previous transaction‐cost‐based models of buyer–supplier relationships. OEM buyers with a lucrative aftermarket should consider aligning goals through incentives rather than relying entirely on economic hostages associated with specific assets.

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