This dissertation examines two research questions that contribute to our understanding of the role of accounting information in supply chain relationships. The first research question examines whether nonfinancial performance measures are leading indicators of supply chain financial performance and whether the information contained in these measures have a role in the performance evaluation and rewards processes between firms. Chapter 2 analyzes proprietary performance measurement data from a leading international manufacturer regarding its contractual arrangements with 156 independent distributors. Consistent with predictions, I find that measures of process alignment and, to a lesser extent, measures of detailed information exchange are nonfinancial performance measures that are leading indicators of supply chain sales growth, productivity and profitability. In addition, I find that nonfinancial measures are associated with the manufacturers decision to renew supply chain contracts. Supplemental analysis examines whether the role of nonfinancial measures in performance evaluations is associated with the evaluations apparent economic importance or the exclusivity of the supply chain relationship.
The second research question investigates whether buyer bargaining power influences supplier performance. Chapter 3 uses the suppliers FAS 131 disclosure to proxy for the presence of a relatively more powerful buyer (strong buyer) and analyzes the financial and operational performance of apparel suppliers. Consistent with prior literature, I find that strong buyers adversely affect supplier gross margins. However, I find that strong buyers are also associated with efficiency gains for suppliers through lower SG&A expenses and enhanced inventory management. These efficiencies yield higher supplier financial and operational performance despite lower gross margins. Interestingly, I find that suppliers to multiple strong buyers are unable to offset lower gross margins through SG&A expense or inventory management efficiencies. One interpretation of these results is that such suppliers are unable to manage effectively the demands of multiple strong buyers because these demands are not synchronized. Collectively, this dissertation provides important evidence of the apparent productivity and efficiency gains that are available to supply chain partners from engaging in process alignment and exchanging detailed customer demand and inventory information, and how these gains appear to enhance the performance of each firm.
| Identifer | oai:union.ndltd.org:PITT/oai:PITTETD:etd-12012008-133721 |
| Date | 29 January 2009 |
| Creators | Schloetzer, Jason Daniel |
| Contributors | Ranjani Krishnan, Mei Feng, Shawn Thomas, Nandu Nagarajan, John H. Evans III |
| Publisher | University of Pittsburgh |
| Source Sets | University of Pittsburgh |
| Language | English |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.library.pitt.edu/ETD/available/etd-12012008-133721/ |
| Rights | unrestricted, I hereby certify that, if appropriate, I have obtained and attached hereto a written permission statement from the owner(s) of each third party copyrighted matter to be included in my thesis, dissertation, or project report, allowing distribution as specified below. I certify that the version I submitted is the same as that approved by my advisory committee. I hereby grant to University of Pittsburgh or its agents the non-exclusive license to archive and make accessible, under the conditions specified below, my thesis, dissertation, or project report in whole or in part in all forms of media, now or hereafter known. I retain all other ownership rights to the copyright of the thesis, dissertation or project report. I also retain the right to use in future works (such as articles or books) all or part of this thesis, dissertation, or project report. |
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