On the relationship between financial performance and position of businesses in supply chain networks

Seiler, AC; Papanagnou, C; Scarf, PA

Abstract

We investigate how the network position of organisations in an extended supply chain
network impacts their financial performance. The paper argues that performance measurement tools
should incorporate a network (external, connectedness) perspective in addition to an internal financial
perspective. We merge local networks of companies in a supply chain into a single, extended network in
which the transactional value-flows on arcs are known. Network position characteristics of focal
companies are determined using social network analysis. The impact of these characteristics on
financial performance is studied using regression analysis. In the context of our case study, there is some
evidence that profitability is related to connectedness and market share. In this way, the paper describes
how organisations might enrich their performance measurement tools with connectedness metrics.

Citation

Seiler, A., Papanagnou, C., & Scarf, P. (2020). On the relationship between financial performance and position of businesses in supply chain networks. International Journal of Production Economics, 227, https://doi.org/10.1016/j.ijpe.2020.107690

• Journal Article Type: Article
• Acceptance Date: Feb 17, 2020
• Online Publication Date: Feb 20, 2020
• Publication Date: Sep 1, 2020
• Deposit Date: Feb 18, 2020
• Publicly Available Date: Aug 20, 2021
• Journal: International Journal of Production Economics
• Print ISSN: 0925-5273
• Publisher: Elsevier
• Volume: 227
• DOI: https://doi.org/10.1016/j.ijpe.2020.107690
• Publisher URL: https://doi.org/10.1016/j.ijpe.2020.107690
• Related Public URLs: https://www.sciencedirect.com/journal/international-journal-of-production-economics