Unveiling the link between operational interdependency and supply chain performance

Purpose This study investigates the possible curvilinear relationship between operational interdependency and supply chain performance as well as the contingency effect of supply chain disruptions, in terms of disruption orientation and disruption impact. Design/methodology/approach Path analysis was employed to test the hypotheses using the data collected from Chinese manufacturers. Findings The results confirm an inverted U-shape effect of operational interdependency. As level of buyer-supplier operational dependency increase, the supply chain performance is enhanced. However, the benefits of operational interdependency diminish beyond a certain point. Additionally, the findings of this study show the disruption orientations positively moderate the relationship between interdependency and performance, whereas the effect of disruption impact is not significant. Originality/value The findings of this study provide an explanation to the theoretical gap about the equivocal results of the effect of dependency, which provide new insights into the literature regarding buyer-supplier relationships. Furthermore, this paper identifies the moderating role of supply chain disruption in the relationship between operational interdependency and supply chain performance, which provide further explanation about the mixed results of the effect of dependency. The results confirmed that supply chain disruption orientation positively moderate the relationship between operational interdependency and supply chain performance.