The purpose of this paper is to empirically demonstrate how information sharing is addressing issues of agency theory behaviour in the context of different supply chains.
The contribution of this research is, on the one hand, to gain insights of multi-tier supply chain relationship structures of different companies. They aim is to analyse the transparency along the supply chain, which is affected by different behaviour of parties to each other. Afterwards, it is important to draw a conclusion of how supply chain information sharing addresses these issues of agency theory behaviour.
Covid-19 is a pandemic that has led to a breakdown in supply chains. One of the reasons for this was the selfish behaviour of many consumers, who bought goods in mass quantities, which leads to empty shelves for the community. Especially in situations like these, it becomes clear how important it is to maintain a resilient supply chain, which can adapt quickly to unpredictable circumstances. A supply chain, which consists of at least of three parties, depends on every single member along the chain. In this way, it becomes more and more important to select the right supplier. Unfortunately, it is not easy to find the right supplier, as many individuals and organisations are driven by opportunistic behaviour and bounded rationality.
Table of Contents
1 INTRODUCTION
2 LITERATURE REVIEW
2.1 THE DEFINITION OF AGENCY THEORY
2.2 DEFINING SUPPLY CHAIN MANAGEMENT
2.3 SUPPLY CHAIN INFORMATION SHARING IN THE CONTEXT OF AGENCY THEORY
2.4 FINDING A RESEARCH GAP
3 RESEARCH METHODS
3.1 RESEARCH DESIGN
3.2 DATA COLLECTION
3.3 DATA ANALYSIS
4 FINDINGS
4.1 SUPPLY CHAIN OBJECTIVES
4.2 ORGANISATIONAL STRUCTURES
4.3 INFORMATION SHARING REGARDING SUPPLY CHAIN RELATIONS
4.3.1 RELATIONSHIP BETWEEN COMPANY AND SUPPLIER
4.3.2 INFORMATION SHARING BETWEEN COMPANY AND SUPPLIER
4.3.3 RELATIONSHIP BETWEEN COMPANY AND CUSTOMER
4.3.4 INFORMATION SHARING BETWEEN COMPANY AND CUSTOMER
4.4 BENEFITS OF INFORMATION SHARING SYSTEMS
5 DISCUSSION:
5.1 SUPPLY CHAIN INFORMATION SHARING IN THE CONTEXT OF AGENCY THEORY
5.2 LIMITATIONS AND FUTURE RESEARCH PROPOSALS
6 CONCLUSION
Research Objectives and Themes
The primary objective of this research is to empirically examine how information sharing practices address agency theory-related behavioral issues within various multi-tier supply chain environments. The study focuses on understanding the transparency dynamics between buyers, suppliers, and sub-suppliers, and evaluating how information exchange can mitigate opportunistic behavior and goal conflicts between supply chain members.
- Application of Agency Theory to modern supply chain relationships.
- Analysis of multi-tier supply chain structures and the limits of information transparency.
- Investigation of how information sharing mitigates opportunistic behavior and moral hazard.
- Evaluation of the role of contracts, incentives, and IT systems in supply chain governance.
- Identification of barriers to information flow beyond dyadic supply chain tiers.
Excerpt from the Book
The Definition of Agency Theory
Agency theory has been used in various areas of economics, sociology and politics. It is also used in the discipline of supply chain management, it explains relationships between at least two parties (individuals or organisations) (Fayezi et al., 2012). It originated from information economics and traceable to the 1960’s and early 1970’s when economists explored different risk sharing behaviour in cooperation’s between actors (Eisenhardt, 1989). The roots of basic assumptions of current agency theory can be found in the independently developed works of Mitnick (1973) and Ross (1973) (Fayezi et al., 2012).
Over time, agency theory has gained popularity but also critics. such as Perrow (1986), who claimed that the approaches are only one-sided, approach no real problems and have too few testable implications (Perrow, 1986, cited in (Eisenhardt, 1989). Nevertheless, for supporters the theory “provides a unique, realistic, and empirically testable perspective on problems of cooperative effort” (Eisenhardt, 1989, p. 72).
Summary of Chapters
1 INTRODUCTION: This chapter highlights the impact of global disruptions like Covid-19 on supply chains and introduces the research goal of analyzing multi-tier structures and their alignment with agency theory.
2 LITERATURE REVIEW: The section defines core concepts including agency theory, supply chain management, and how information sharing serves as a mechanism to reduce opportunistic behavior.
3 RESEARCH METHODS: This chapter outlines the qualitative research approach, specifically the use of semi-structured interviews with ten supply chain experts to gather empirical data.
4 FINDINGS: The results detail supply chain objectives, organizational structures, and the current state of information sharing between companies, their suppliers, and customers.
5 DISCUSSION: This chapter synthesizes the empirical findings by applying agency theory variables to the observed supply chain practices and identifying limitations in the research.
6 CONCLUSION: The final chapter summarizes that information sharing remains largely confined to dyadic relationships and that transparency is heavily dependent on company size and industry requirements.
Keywords
Agency Theory, Supply Chain Management, Information Sharing, Multi-tier Supply Chain, Opportunistic Behavior, Transparency, Principal-Agent Relationship, Moral Hazard, Adverse Selection, Supply Chain Governance, Contractual Relationships, Information Asymmetry, Sustainability, Performance Monitoring, Business Logistics.
Frequently Asked Questions
What is the core focus of this research paper?
The paper explores the application of agency theory within supply chain management, specifically analyzing how information sharing influences the relationship between principals and agents to reduce opportunistic behavior.
What are the central thematic areas covered?
The research covers multi-tier supply chain structures, information asymmetry, the role of contracts and incentives, and the implementation of information sharing systems for transparency.
What is the primary research goal?
The goal is to empirically demonstrate how information sharing addresses agency theory behavioral issues in diverse, real-world supply chain contexts.
Which methodology does the research employ?
The study uses a qualitative methodology, conducting semi-structured interviews with ten experts in supply chain management and purchasing to gather deep insights.
What is treated in the main body of the work?
The main body examines literature on agency theory, defines supply chain management in a multi-tier context, presents empirical interview findings, and discusses these through the lens of agency theory.
How can the research be characterized by its keywords?
It is characterized by the intersection of agency theory, supply chain transparency, risk management, and the practical challenges of multi-tier information exchange.
What did the research reveal regarding multi-tier information sharing?
The study revealed that in practice, information sharing is rarely present beyond dyadic (two-party) relationships, even in multi-tier supply chains.
How does company size influence information sharing?
The research found that larger companies, or those with more critical products for society, tend to invest more in monitoring and require higher levels of transparency from their supply chain members.
- Citation du texte
- Anonym (Auteur), 2020, Supply Chain Information Sharing in the Context of Agency Theory Perspective, Munich, GRIN Verlag, https://www.grin.com/document/1000550
