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Duration of collaboration from a market perspective: An agent-based modeling approach

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journal contribution
posted on 28.07.2017, 10:20 by Niniet I. Arvitrida, Antuela TakoAntuela Tako, Duncan RobertsonDuncan Robertson, Stewart RobinsonStewart Robinson
Maintaining a long-term partnership with a supplier is considered an effective strategy to achieve collaboration success in supply chain management (SCM). However, individual companies find that this approach does not always improve business performance. In this paper, an agent-based model (ABM) is developed to investigate the effect of duration of collaboration on supply chains from a market perspective. The model represents two-stage supply chains of an innovative product market, involving suppliers and manufacturers. The model outputs are measured by the rate of demand fulfilment and the number of supply chains which can survive in the market. The results show that duration of collaboration has no significant impact on both demand fulfilment and survivability of supply chains. This finding contradicts the common belief held in the literature about the benefits of long-term collaboration, but it corroborates examples encountered in practice. This study provides new insights to the practice of supply chain collaboration by taking a market perspective. The results show that a longer duration of collaboration does not provide a significant improvement to the supply chain's competitiveness from a market point of view, in terms of demand fulfilment and supply chain's ability to survive over the long-term. The implications of this finding to practice are discussed in the paper.

History

School

  • Business and Economics

Department

  • Business

Published in

OPERATIONS AND SUPPLY CHAIN MANAGEMENT

Volume

10

Issue

3

Pages

149 - 159

Citation

ARVITRIDA, N.I., ...et al., 2017. Duration of collaboration from a market perspective: An agent-based modeling approach. Operations and Supply Chain Management: An International Journal, 10(3), pp. 149-159.

Publisher

© the Authors. Published by SCM

Version

VoR (Version of Record)

Publisher statement

This work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/

Acceptance date

13/07/2017

Publication date

2017

Notes

This paper was accepted for publication in the journal Operations and Supply Chain Management: An International Journal and the definitive published version is available at http://www.journal.oscm-forum.org/journal/issue/journals/oscm-volume-10-issue-3-2017

ISSN

1979-3561

eISSN

2579-9363

Language

en