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Supply Chain Collaboration in Distributor-Dealer Network

Volume 21, Number 2 Article by Anuphak Saosaovaphak, Himanshu Kumar Shee & Ian Sadler June, 2009

Supply Chain Collaboration in Distributor-Dealer Network :

Collaboration between parties has been identified as central to trading partners in developing competitive advantage when they work together through the Internet. This paper is based on a study that examines the collaborative relationship in the Thai motorcycle industry when the distributor and dealers use the Internet to conduct business. The main research question is: How can collaboration between a distributor and dealers be improved?

The paper builds on the conceptual framework proposed by Nokkentved and Hedaa for achieving collaboration and explores the factors non-coercive power,trust and exception handling. It specifically examines how non coercive power, trust, and exceptions handling impact the collaborative efforts between a distributor and many dealers,how non coercive power affects trust and exceptions handling;how human collaboration can be used to promote trust and handle exceptions,and how e collaboration can enhance the level of trust and handle exceptions.The research employed a survey based questionnaire which aimed to address five propositions.

Data analysis indicates that non-coercive power will produce notable effects on the level of collaboration. Trust between parties enhances collaboration. Similarly, the effective handling of exceptions was shown to be important for achieving collaboration.This thesis makes three contributions to existing knowledge. First,non-coercive power not only enhances collaboration, it enhances trust and exception handling too. Second, collaboration enhances trust and exception handling, and the effects are therefore reciprocal.Third,the contribution of human and electronic collaboration effectively promotes trust and handles exceptions.

Finally this research recommends several practices for improving collaboration in electronic distribution networks.

Reprint No 09204