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

A. Seiler, C. Papanagnou, P. Scarf*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

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.

Original languageEnglish
Article number107690
JournalInternational Journal of Production Economics
Volume227
Early online date20 Feb 2020
DOIs
Publication statusPublished - Sep 2020

Bibliographical note

© 2020, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/.

Keywords

  • Performance measurement.
  • Social network analysis
  • Supply chain management

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