Measuring the performance of collaborative relationships in supply chain networks using DEA: A corporate governance perspective

Abstract

Supply chain management (SCM) as a concept of functional integration of processes between firms in business partnerships is not new, yet has been invigorated by the prominence of modern information communication technologies (ICT). The end­ to ­end supply chain in the form of networks linking customers, manufacturers, suppliers and logistics providers is a virtual and physical reality which many believe can provide sustained competitiveness through added value to customers, operational ef iciencies, and strategic capabilities in a global business arena. This scenario of a supply chain network provides an opportunity to develop models which explain i) the dynamics, complexities and processes of integration as supported by ICT and ii) the customised relationships necessary for a collaborative strategy to succeed. There is much literature on the former but a dearth on the later. This paper presents a development in performance measurement of some factors of corporate governance in a supply chain by using the Data Envelopment Analysis (DEA) algorithm. DEA is a non­-parametric operations research technique, successfully used and widely applied in situations, which traditionally support qualitative study.