Forecasting Management Climate Theory : Construct Development and Measurement

Despite technological advancements in supply chain forecasting methods and supporting software, human know-how remains indispensable to the process. Research suggests models that include human feedback-enabled forecasting will continue to outperform models that do not. Unfortunately, managers face a dearth of management insight when seeking to support the uniquely qualified personnel who develop, execute, and validate today’s supply chain forecasts. To help fill this void, our research employs a mixed methods approach to develop theory and measures of forecasting management climate, including seven managerial practices (first order constructs) that represent an organization’s forecasting management climate. We explore the relationships between forecaster perceptions of these practices and constructs of interest in forecasting management theory, to include forecasting task-technology fit, knowledge management effectiveness, and performance (operational and individual). This research reveals that forecasting management research should consider not only the existence of sound policies and procedures, but also how restrictive policies and procedures may be in limiting forecaster actions. Moreover, results indicate at least part of forecasting managers’ approach should include making themselves familiar with the perceptions of the individuals performing the day-to-day forecasting process, and how those perceptions may affect forecasting performance