The collaboration index: a measure for supply chain collaboration

Abstract

Purpose: This paper proposes an instrument to measure the extent of collaboration in a supply chain consisting of two members, suppliers and retailers. Design/methodology/approach: The proposed model for collaboration incorporates collaborative practices in information sharing, decision synchronisation and incentive alignment. A collaboration index is introduced to measure the level of collaborative practices. A survey of companies in New Zealand was conducted to obtain data to test and evaluate the collaboration index. Findings: The survey results confirmed the reliability and validity of the proposed collaboration index measure for measuring collaboration. The findings also showed that the collaboration index was positively associated with operational performance. Research limitations/implications: Future research could consider larger sample sizes and cover other industry types. Practical implications: Supply chain participants will be able to measure the extent of their collaboration and seek improvement in their performance. Originality/value: This paper contributes to the literature by introducing a new index for measuring the extent of supply chain collaboration. This measure can be used by any participant (member) in a supply chain to identify the level of collaboration and seek improvement.