Organizational commitment and governance for supply chain success

Purpose - To examine the nature and extent of commitment to supply chain collaboration. Also, to explore the state of supply chain governance structures.Design methodology approach - A multi-method survey and in-depth interview methodology was employed to gather data. Content analysis was then used to identify the types and extent of managerial support for supply chain initiatives.Findings - Four types of managerial support are needed to achieve the highest levels of supply chain success: top management support, broad-based functional support, channel support, and infrastructural governance support. None of the interview companies have put all four types of support in place. Leading-edge governance relies on cross-functional inter-organizational teams, executive governance councils, customer advisory boards, supplier advisory councils and a modified reporting structure that overseas all value-added activities from product conceptualization to customer relationship management. Again, none of the interview companies have established all aspects of an effective supply chain governance structure.Originality value - Much has been written on the need to focus on supply chains and create more cooperative and integrative relationships with key organizations in the supply chain; however, little has been written concerning the commitment levels among those involved in the supply chain or the types of governance structures that should be utilized within a given organization or along the supply chain. This paper bridges this gap, providing a benchmark for managerial commitment and presenting a composite governance structure based on observed best practices. Both academics and practitioners can use the insights provided to work toward a better understanding of supply chain commitment and governance.