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Cross-functional Incentives for Purchasing-Logistics and Supplier Integration: With Evidence from China

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Einkauf und Supply Chain Management

Part of the book series: ZfbF-Sonderheft ((ZFBFS,volume 76/21))

Abstract

The purpose of this paper is to introduce cross-functional incentives (CFI) as drivers of purchasing-logistics integration (PLI) and supplier integration (SI). Further, the aim of this study is to find out whether better PLI can increase SI and with it, also logistics performance. The authors develop and test a structural equation model with a partial-least-squares algorithm and a bootstrapping mediation analysis using data collected from 87 manufacturing firms in China. CFI significantly foster both PLI and SI. Further, CFI also indirectly increase SI through better PLI, and logistics performance through better SI. Finally, PLI also indirectly increases logistics performance through better SI. The CFI introduced in this study are confined to purchasing and logistics functions. Due to its novelty, the construct used was designed without specifying the nature of the incentives. Further research should analyze different configurations of incentives. The research provides practitioners with implementable means to promote inbound supply chain integration by setting up overlapping reward systems in the purchasing and logistics functions. The paper demonstrates that the lack of purchasing-logistics and supplier integration that exists in practice is a systemic issue rooted in unaligned incentives set for functional managers. It further shows the critical role that purchasing and logistics functions play when aiming to integrate suppliers.

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Authors and Affiliations

  1. TU Darmstadt, Darmstadt, Deutschland

    Hans-Christian Pfohl

  2. SCHOTT AG, Mainz, Deutschland

    Nikos Moraitakis

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  1. Hans-Christian Pfohl
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  1. University of Würzburg, Würzburg, Deutschland

    Ronald Bogaschewsky

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Pfohl, HC., Moraitakis, N. (2021). Cross-functional Incentives for Purchasing-Logistics and Supplier Integration: With Evidence from China. In: Bogaschewsky, R. (eds) Einkauf und Supply Chain Management. ZfbF-Sonderheft, vol 76/21. Springer Gabler, Wiesbaden. https://doi.org/10.1007/978-3-658-32895-5_10

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