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    Rights statement: This is the author’s version of a work that was accepted for publication in International Journal of Production Economics. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in International Journal of Production Economics, 214, 2019 DOI: 10.1016/j.ijpe.2019.03.027

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Sales and Operations Planning: The effect of coordination mechanisms on supply chain performance

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Sales and Operations Planning : The effect of coordination mechanisms on supply chain performance. / Goh, S.H.; Eldridge, S.

In: International Journal of Production Economics, Vol. 214, 01.08.2019, p. 80-94.

Research output: Contribution to Journal/MagazineJournal articlepeer-review

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Goh, S.H. ; Eldridge, S. / Sales and Operations Planning : The effect of coordination mechanisms on supply chain performance. In: International Journal of Production Economics. 2019 ; Vol. 214. pp. 80-94.

Bibtex

@article{f71d0450b171455d8af2cabb156d43b8,
title = "Sales and Operations Planning: The effect of coordination mechanisms on supply chain performance",
abstract = "Sales and Operations Planning (S&OP) is a means of facilitating cross-functional coordination, such as across the marketing-operations interface, but adopters of S&OP have not all benefited from S&OP to the same extent. This paper investigates the effect of S&OP on supply chain performance using the perspective of coordination and contingency theories. A structural equation model was developed in which six S&OP coordination mechanisms were hypothesized to contribute to improved supply chain performance. The model was tested using a global survey of 568 experienced S&OP practitioners. Our results indicate that Strategic Alignment and Information Acquisition/Processing are the mechanisms that most significantly enable superior S&OP outcomes. However, we find that a highly formalized S&OP Procedure inhibits supply chain performance. Furthermore, using a contingency theory perspective, increasing firm size and increasing experience in S&OP amplify the negative effect of a standardized S&OP Procedure upon supply chain performance. Our results suggest that organizational bricolage may be a coordinating mechanism of effective S&OP programs and that managers should empower ambidextrous S&OP teams to maintain balance using self-governing event-driven processes. This paper makes a novel contribution to the S&OP literature by providing evidence of a theoretical construct (organizational bricolage), which may trigger a re-evaluation of the efficacy of prescriptive S&OP procedures that have been advocated by some researchers and practitioners. ",
keywords = "Contingency, Coordination, Organizational ambidexterity, S&OP, Structural equation modeling, Supply chain management, Surveys, Information acquisitions, Marketing-operations interfaces, Sales and operations planning, Supply chain performance, Human resource management",
author = "S.H. Goh and S. Eldridge",
note = "This is the author{\textquoteright}s version of a work that was accepted for publication in International Journal of Production Economics. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in International Journal of Production Economics, 214, 2019 DOI: 10.1016/j.ijpe.2019.03.027 ",
year = "2019",
month = aug,
day = "1",
doi = "10.1016/j.ijpe.2019.03.027",
language = "English",
volume = "214",
pages = "80--94",
journal = "International Journal of Production Economics",
issn = "0925-5273",
publisher = "Elsevier Science B.V.",

}

RIS

TY - JOUR

T1 - Sales and Operations Planning

T2 - The effect of coordination mechanisms on supply chain performance

AU - Goh, S.H.

AU - Eldridge, S.

N1 - This is the author’s version of a work that was accepted for publication in International Journal of Production Economics. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in International Journal of Production Economics, 214, 2019 DOI: 10.1016/j.ijpe.2019.03.027

PY - 2019/8/1

Y1 - 2019/8/1

N2 - Sales and Operations Planning (S&OP) is a means of facilitating cross-functional coordination, such as across the marketing-operations interface, but adopters of S&OP have not all benefited from S&OP to the same extent. This paper investigates the effect of S&OP on supply chain performance using the perspective of coordination and contingency theories. A structural equation model was developed in which six S&OP coordination mechanisms were hypothesized to contribute to improved supply chain performance. The model was tested using a global survey of 568 experienced S&OP practitioners. Our results indicate that Strategic Alignment and Information Acquisition/Processing are the mechanisms that most significantly enable superior S&OP outcomes. However, we find that a highly formalized S&OP Procedure inhibits supply chain performance. Furthermore, using a contingency theory perspective, increasing firm size and increasing experience in S&OP amplify the negative effect of a standardized S&OP Procedure upon supply chain performance. Our results suggest that organizational bricolage may be a coordinating mechanism of effective S&OP programs and that managers should empower ambidextrous S&OP teams to maintain balance using self-governing event-driven processes. This paper makes a novel contribution to the S&OP literature by providing evidence of a theoretical construct (organizational bricolage), which may trigger a re-evaluation of the efficacy of prescriptive S&OP procedures that have been advocated by some researchers and practitioners. 

AB - Sales and Operations Planning (S&OP) is a means of facilitating cross-functional coordination, such as across the marketing-operations interface, but adopters of S&OP have not all benefited from S&OP to the same extent. This paper investigates the effect of S&OP on supply chain performance using the perspective of coordination and contingency theories. A structural equation model was developed in which six S&OP coordination mechanisms were hypothesized to contribute to improved supply chain performance. The model was tested using a global survey of 568 experienced S&OP practitioners. Our results indicate that Strategic Alignment and Information Acquisition/Processing are the mechanisms that most significantly enable superior S&OP outcomes. However, we find that a highly formalized S&OP Procedure inhibits supply chain performance. Furthermore, using a contingency theory perspective, increasing firm size and increasing experience in S&OP amplify the negative effect of a standardized S&OP Procedure upon supply chain performance. Our results suggest that organizational bricolage may be a coordinating mechanism of effective S&OP programs and that managers should empower ambidextrous S&OP teams to maintain balance using self-governing event-driven processes. This paper makes a novel contribution to the S&OP literature by providing evidence of a theoretical construct (organizational bricolage), which may trigger a re-evaluation of the efficacy of prescriptive S&OP procedures that have been advocated by some researchers and practitioners. 

KW - Contingency

KW - Coordination

KW - Organizational ambidexterity

KW - S&OP

KW - Structural equation modeling

KW - Supply chain management

KW - Surveys

KW - Information acquisitions

KW - Marketing-operations interfaces

KW - Sales and operations planning

KW - Supply chain performance

KW - Human resource management

U2 - 10.1016/j.ijpe.2019.03.027

DO - 10.1016/j.ijpe.2019.03.027

M3 - Journal article

VL - 214

SP - 80

EP - 94

JO - International Journal of Production Economics

JF - International Journal of Production Economics

SN - 0925-5273

ER -