Organisational culture is a common cultural value growing up with a development of an enterprise. Generally, a culture will affect behaviour of firms, consistency of supply chain, and then enhance the cohesion and competence of supply chain.
Cultural integration and adaptation is on the top of supply chain integration, which can be divided into integration within focal firms and adaptation between focal firms and their partners. Within the focal firm, the cultural integration should strengthen the firm features, such as the values, the spirits, and the philosophy. And for the whole supply chain, the cultures should be adapted from the following three aspects.
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- Strategies consistency, the integration on the macro-level. The focal firm should confirm and enhance its core competence, while outsource the non-core competitive business by establishing strategic partnership with its supplier – on the basis, integrate the visions, competitive strategies and development tacit to reach their common goals.
- Philosophies or values adaptation, the kernel and difficulty of cultural adaptation. The organisational philosophies and values, comprising vision, philosophy, spirit, concepts of benefit, service, quality, etc., are the special standards on operational behaviours selection and evaluation shaping from its long-time operational process and the essential part of organisational culture. Value adaptation along the supply chain needs to separate the good from the bad, and then strengthen the good while delete the bad. Meanwhile, promote the values of the focal firm and then form the common values accepted by all members generally.
- Management models integration. In this operation level, different management models in supply chain should be analysed to find, integrate and develop suitable spirits and souls for supply chain integration. By integrating management models, the improvement of employees’ quality is linked with the improvement of supply chain competency, and a new incentive mechanism and supply chain culture that employees’ fate is connected closely with the status of supply chain will be formed finally.
In most supply chains, there is generally a focal firm which coordinates their operations with other less powerful firms. This type of power will impact the nature of supply chain relationships. For example, on the side’s source of supply chain power is the other side’s dependence resulting from an imbalance of resources. Restricting the amount of information, resources, and capabilities shared with a supplier can benefit buyers who want to have more control over their suppliers.
In short, the pressures of the environment supply chain operates in effect how power is applied between firms. The implication for this is that culture will determine the power dynamics within supply chain relationships, which will ultimately have an influence on supply chain performance and resilience.
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