When the chickens come home to roost: The short- versus long-term performance implications of government contracting and supplier network structure

IF 11.2 2区 管理学 Q1 MANAGEMENT
Ellie C. Falcone, Steven Carnovale, Brian S. Fugate, Brent D. Williams
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引用次数: 1

Abstract

The old adage “it is not what you know, but who you know” suggests that in connection(s) lies the key(s) to success. But what does success mean, and for how long will it last? What does the choice of partner, and network connections say about the performance implications of contracting, particularly in the case of a public–private partnership? With countries such as the United States accounting for the world's largest buyer (of any and everything), several suppliers eagerly await their opportunity to contract with large government entities, but is it always a wise decision? Such questions remain largely unexplored and require answers. This research provides answers to these questions by integrating congruence, and network theory to investigate how government contracting impacts private suppliers' financial performance and how suppliers' supply chain network connections moderate this relationship. Results using panel data over several years suggest that while contracting with government bolsters' short-term financial performance (ROA), it negatively affects long-term supplier performance (Tobin's Q). In addition, the prominence of a firm's connections (i.e., who they know) and the composition of these connections enhances the performance gains, highlighting the critical role of a firm's network structure on their performance within the contracting relationship. We therefore find that the power of supply chain network connections enhances the short-term positive effects and mitigates the long-term adverse effects when contracting with government buyers, as the relationship is not always universally positive.

当鸡回家栖息:政府合同和供应商网络结构的短期与长期绩效影响
老话说:“重要的不是你知道什么,而是你认识谁。”这句话表明,成功的关键在于人际关系。但是成功意味着什么,它能持续多久呢?合作伙伴的选择和网络连接对合同的绩效影响有什么影响,特别是在公私合作的情况下?随着美国等国家成为世界上最大的买家,一些供应商急切地等待着与大型政府机构签订合同的机会,但这总是一个明智的决定吗?这些问题在很大程度上仍未被探索,需要答案。本研究通过整合一致性和网络理论来探讨政府承包如何影响私营供应商的财务绩效,以及供应商的供应链网络连接如何调节这种关系,从而为这些问题提供了答案。利用几年来的面板数据得出的结果表明,虽然与政府签订合同支持短期财务绩效(ROA),但它会对供应商的长期绩效产生负面影响(托宾Q)。此外,公司关系(即他们认识的人)的突出地位以及这些关系的组成增强了绩效收益,突出了公司网络结构在合同关系中对其绩效的关键作用。因此,我们发现,当与政府购买者签订合同时,供应链网络连接的力量增强了短期的积极影响,减轻了长期的不利影响,因为这种关系并不总是普遍积极的。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
14.40
自引率
14.60%
发文量
34
期刊介绍: Supply chain management and logistics processes play a crucial role in the success of businesses, both in terms of operations, strategy, and finances. To gain a deep understanding of these processes, it is essential to explore academic literature such as The Journal of Business Logistics. This journal serves as a scholarly platform for sharing original ideas, research findings, and effective strategies in the field of logistics and supply chain management. By providing innovative insights and research-driven knowledge, it equips organizations with the necessary tools to navigate the ever-changing business environment.
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