Performance implications of transformational supply chain leadership and followership

Purpose – The purpose of this paper is to develop the concepts of supply chain leadership (SCL) and supply chain followership (SCF) from the literature, and propose a theory of leadership in supply chains using a strategy‐structure‐performance theory framework. Design/methodology/approach – Constructs are defined and valid and reliable scales are developed for SCL, SCF, and three structural elements (information availability, communication, and rewards). Proposed SCL and SCF theoretical relationships are tested using data collected from an interactive simulation and analyzed using structural equation modeling. Findings – Transformational SCL and SCF are inter‐related constructs that can be linked to the creation of the three forms of supply chain structure examined in this research to varying degrees. A finding of significance is that supply chain follower organizations may actually have greater influence over operational performance than the supply chain leader. Research limitations/implications – This research presents an initial test of supply chain‐related constructs not tested in previous research. These represent significant organizational constructs that may benefit future supply chain research efforts. Practical implications – Transformational supply chain behaviors of leaders and followers can be perceived and measured. Managers may utilize this knowledge to better understand the type of supply chain relationships their organization should most effectively pursue. Originality/value – The paper introduces the concepts of SCL and SCF and empirically tests these concepts and the structural constructs of information availability, communication, and rewards.