Broadening the perspective of supply chain finance

The performance impacts of network power and cohesion

Steven Carnovale, Dale Rogers, Sengun Yeniyurt

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

Because firms do not operate in isolation, they are bound by the structure of the networks in which they are embedded. This structure has implications on a firm's ability to access resources and utilize them to their advantage. We consider two critical components of this network structure: network power and network cohesion. Both of these network structures can be critical determinants of firm financial success. Yet, to date the extant research has not yet considered the role of network relations in the context of Supply Chain Finance (SCF). This manuscript attempts to contribute to this gap. Through the use of a dynamic supply chain network structure, we test the role that network power and cohesion have on a firm's financial performance. The results indicate network cohesion contributes positively to efficiency in financial performance, whereas power is a critical factor in earnings performance. Taken together, the study advances a nuanced perspective of managing the firm's levels of network power and cohesion to allow for heightened financial performance.

Original languageEnglish (US)
Pages (from-to)134-145
Number of pages12
JournalJournal of Purchasing and Supply Management
Volume25
Issue number2
DOIs
StatePublished - Mar 1 2019

Fingerprint

Cohesion
Finance
Supply chain
Financial performance
Network structure
Critical factors
Isolation
Supply chain network
Resources

Keywords

  • Network theory
  • Resource dependency
  • Supply chain finance
  • Supply network structure

ASJC Scopus subject areas

  • Strategy and Management
  • Marketing

Cite this

Broadening the perspective of supply chain finance : The performance impacts of network power and cohesion. / Carnovale, Steven; Rogers, Dale; Yeniyurt, Sengun.

In: Journal of Purchasing and Supply Management, Vol. 25, No. 2, 01.03.2019, p. 134-145.

Research output: Contribution to journalArticle

@article{9192263d065b48e9b4269b92df169d11,
title = "Broadening the perspective of supply chain finance: The performance impacts of network power and cohesion",
abstract = "Because firms do not operate in isolation, they are bound by the structure of the networks in which they are embedded. This structure has implications on a firm's ability to access resources and utilize them to their advantage. We consider two critical components of this network structure: network power and network cohesion. Both of these network structures can be critical determinants of firm financial success. Yet, to date the extant research has not yet considered the role of network relations in the context of Supply Chain Finance (SCF). This manuscript attempts to contribute to this gap. Through the use of a dynamic supply chain network structure, we test the role that network power and cohesion have on a firm's financial performance. The results indicate network cohesion contributes positively to efficiency in financial performance, whereas power is a critical factor in earnings performance. Taken together, the study advances a nuanced perspective of managing the firm's levels of network power and cohesion to allow for heightened financial performance.",
keywords = "Network theory, Resource dependency, Supply chain finance, Supply network structure",
author = "Steven Carnovale and Dale Rogers and Sengun Yeniyurt",
year = "2019",
month = "3",
day = "1",
doi = "10.1016/j.pursup.2018.07.007",
language = "English (US)",
volume = "25",
pages = "134--145",
journal = "Journal of Purchasing and Supply Management",
issn = "1478-4092",
publisher = "Elsevier Limited",
number = "2",

}

TY - JOUR

T1 - Broadening the perspective of supply chain finance

T2 - The performance impacts of network power and cohesion

AU - Carnovale, Steven

AU - Rogers, Dale

AU - Yeniyurt, Sengun

PY - 2019/3/1

Y1 - 2019/3/1

N2 - Because firms do not operate in isolation, they are bound by the structure of the networks in which they are embedded. This structure has implications on a firm's ability to access resources and utilize them to their advantage. We consider two critical components of this network structure: network power and network cohesion. Both of these network structures can be critical determinants of firm financial success. Yet, to date the extant research has not yet considered the role of network relations in the context of Supply Chain Finance (SCF). This manuscript attempts to contribute to this gap. Through the use of a dynamic supply chain network structure, we test the role that network power and cohesion have on a firm's financial performance. The results indicate network cohesion contributes positively to efficiency in financial performance, whereas power is a critical factor in earnings performance. Taken together, the study advances a nuanced perspective of managing the firm's levels of network power and cohesion to allow for heightened financial performance.

AB - Because firms do not operate in isolation, they are bound by the structure of the networks in which they are embedded. This structure has implications on a firm's ability to access resources and utilize them to their advantage. We consider two critical components of this network structure: network power and network cohesion. Both of these network structures can be critical determinants of firm financial success. Yet, to date the extant research has not yet considered the role of network relations in the context of Supply Chain Finance (SCF). This manuscript attempts to contribute to this gap. Through the use of a dynamic supply chain network structure, we test the role that network power and cohesion have on a firm's financial performance. The results indicate network cohesion contributes positively to efficiency in financial performance, whereas power is a critical factor in earnings performance. Taken together, the study advances a nuanced perspective of managing the firm's levels of network power and cohesion to allow for heightened financial performance.

KW - Network theory

KW - Resource dependency

KW - Supply chain finance

KW - Supply network structure

UR - http://www.scopus.com/inward/record.url?scp=85062783850&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85062783850&partnerID=8YFLogxK

U2 - 10.1016/j.pursup.2018.07.007

DO - 10.1016/j.pursup.2018.07.007

M3 - Article

VL - 25

SP - 134

EP - 145

JO - Journal of Purchasing and Supply Management

JF - Journal of Purchasing and Supply Management

SN - 1478-4092

IS - 2

ER -