Chapter 4 RESEARCH METHODOLOGY AND DESIGN
4.3 Conceptual Framework
A conceptual framework is developed to connect the literature to the concepts that support the needs of the study. The preliminary aim of a conceptual framework is to identify, categorise and describe various concepts, factors and variables from the existing literature and explain the presumed relationships between them (Rocco and Plakhotnik, 2009). A conceptual framework shows a clear picture of the research issues and the important fields to be investigated by refining and narrowing down the topic from a broader aspect leading the researcher towards the choice of strategies and research methods to achieve the target (Rocco and Plakhotnik, 2009). The review of literature in marketing, channel relationships and supply chain and logistics management led to the development of the conceptual framework for this study. As shown in Figure 4.1, the first part of the framework identifies what factors
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affect operational and strategic information sharing. The second part shows how operational and strategic information sharing affect supply chain performance in terms of cost, quality, delivery and flexibility. This is a ‘precursors – information sharing – effect model.’ While this model has been adapted from previous studies, the cause and effect of information sharing are different in the current study.
4.3.1 Factors Influential to Information Sharing in Supply Chains
Based on the systematic review of the literature in Chapter Three, 21 factors were identified as the antecedents of information sharing in supply chains. The identified factors were then grouped into four categories based on their origin (relationship, intra- or inter-organisational and environmental). Information sharing was divided into two levels as operational and strategic information sharing. The literature lacks a comprehensive list of factors that enhance or impede information sharing between supply chain partners. In addition, the antecedents of information sharing in the context of developing country is lacking in the literature. This study aims to find out the significant factors and the magnitude of their effects on information sharing. Hence, the first primary research question is as follows:
PRQ1: How is information sharing affected in supply chains in the context of Nepal? The primary research question is divided into two subsidiary questions:
SRQ1.1: What are the critical factors affecting information sharing in the supply chains in Nepal?
The first subsidiary research question aims to test whether the identified 21 factors affect operational and strategic information sharing. It will investigate whether a factor affects operational and strategic information sharing significantly. All the factors that exhibit statistical significance will be considered as the critical factors that will influence information sharing. To answer SRQ1.1, 21 hypotheses were formulated to test the effect of each factor on operational information sharing and another 21 on strategic information sharing.
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Strategic Information Sharing Operational Information Sharing Supply Chain Performance PRQ 1 PRQ 2 Relationship Factors • Trust • Commitment • Power • Personal Connection • Organisational Compatibility Intra-organisational Factors
• Top Management Commitment
• Market Orientation • Reputation • Project Payoffs • Monitoring • Incentives Inter-organisational Factors • Information Technology • Information Quality • Partnership Extent • Legal Contract
• Supply Network Configuration
• Interaction Routines
• Supply Chain Integration Environmental Factors
• Environmental Uncertainties
• Government Support
• National Culture
How is information sharing affected in the supply chains in the context of Nepal?
How does information sharing affect the supply chain performance of individual firms in the context of Nepal?
Information Sharing
Supply Chain Performance
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Hypothesis (1-21)a: Operational information sharing is affected by trust, commitment, power, personal connection, organisational compatibility, top management commitment, market orientation, reputation, project payoffs, monitoring, incentives, information technology, information quality, partnership extent, legal contract, supply network configuration, interaction routines, supply chain integration, environmental uncertainties, government support and national culture.
Hypothesis (1-21)b: Strategic information sharing is affected by trust, commitment, power, personal connection, organisational compatibility, top management commitment, market orientation, reputation, project payoffs, monitoring, incentives, information technology, information quality, partnership extent, legal contract, supply network configuration, interaction routines, supply chain integration, environmental uncertainties, government support and national culture.
After finding out the critical factors affecting information sharing, the next aim is to find out the magnitude and the direction of the effect of the significant factors empirically predicted from SRQ1.1. Hence, the second subsidiary question is as follows:
SRQ1.2: How do these factors affect information sharing at strategic and operational levels?
4.3.2 Effect on Supply Chain Performance
Different supply chains have different aims and objectives, based on which firms employ different supply chain performance metrics. This study has chosen cost, quality, delivery and flexibility as the four components of supply chain performance to investigate how information sharing affects the supply chain performance of individual firms.
Hence, the second primary research question is as follows:
PRQ2: How does information sharing affect the supply chain performance of individual firms in the context of Nepal?
The second primary research question is further divided into two subsidiary questions:
SRQ2.1: How does operational information sharing affect the supply chain performance of individual firms in Nepal?
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SRQ2.2: How does strategic information sharing affect the supply chain performance of individual firms in Nepal?
The two subsidiary questions under PRQ2 aim to find out how supply chain performance of individual firms is influenced by operational and strategic information sharing. To answer SRQ2.1 and SRQ2.2, eight hypotheses were framed as follows:
Hypothesis 22a: There is a positive relationship between operational information sharing and cost performance.
Hypothesis 22b: There is a positive relationship between operational information sharing and quality performance.
Hypothesis 22c: There is a positive relationship between operational information sharing and delivery performance.
Hypothesis 22d: There is a positive relationship between operational information sharing and flexibility performance.
Hypothesis 23a: There is a positive relationship between strategic information sharing and cost performance.
Hypothesis 23b: There is a positive relationship between strategic information sharing and quality performance.
Hypothesis 23c: There is a positive relationship between strategic information sharing and delivery performance.
Hypothesis 23d: There is a positive relationship between strategic information sharing and flexibility performance.