Impact of supply chain linkages on supply chain performance

Purpose – The purpose of this paper is to examine the impact of supply chain linkages on supply chain performance (SCP). It aims to define and describe linkage constructs for power, benefits, and risk reduction and develop multi‐item scales for their measurement. It also aims to assess the relationships of the linkages with SCP. Design/methodology/approach – A total of 145 manufacturing and services sector managers are surveyed. The measurement scales are assessed for reliability and validity and further assessed within a measurement model context. Study hypotheses are then tested using a multiple regression approach. Findings – Results for the combined sample indicate that power, benefits, and risk reduction linkages positively and significantly impact SCP. Power is identified as the dominant linkage for manufacturers, and risk reduction as the most important within the services sector. Practical implications – The key to effective supply chain management is the ability to establish long‐term, strategic relationships with supply chain partners. Practitioners should work to fully develop power, benefits, and risk reduction linkages with partners within their specific supply chains in order to maximize value to the ultimate customers of the supply chain. Originality/value – Through this study, previously discussed supply chain linkage constructs are specifically defined, scales for measurement of the constructs are developed, and an initial assessment of the relation of the constructs to SCP is provided.