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Essays on Nonfinancial Performance Measurement, Relative Bargaining Power and Supply Chain Performance

Schloetzer, Jason Daniel (2009) Essays on Nonfinancial Performance Measurement, Relative Bargaining Power and Supply Chain Performance. Doctoral Dissertation, University of Pittsburgh. (Unpublished)

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This dissertation examines two research questions that contribute to our understanding of the role of accounting information in supply chain relationships. The first research question examines whether nonfinancial performance measures are leading indicators of supply chain financial performance and whether the information contained in these measures have a role in the performance evaluation and rewards processes between firms. Chapter 2 analyzes proprietary performance measurement data from a leading international manufacturer regarding its contractual arrangements with 156 independent distributors. Consistent with predictions, I find that measures of process alignment and, to a lesser extent, measures of detailed information exchange are nonfinancial performance measures that are leading indicators of supply chain sales growth, productivity and profitability. In addition, I find that nonfinancial measures are associated with the manufacturer's decision to renew supply chain contracts. Supplemental analysis examines whether the role of nonfinancial measures in performance evaluations is associated with the evaluation's apparent economic importance or the exclusivity of the supply chain relationship. The second research question investigates whether buyer bargaining power influences supplier performance. Chapter 3 uses the supplier's FAS 131 disclosure to proxy for the presence of a relatively more powerful buyer ("strong" buyer) and analyzes the financial and operational performance of apparel suppliers. Consistent with prior literature, I find that strong buyers adversely affect supplier gross margins. However, I find that strong buyers are also associated with efficiency gains for suppliers through lower SG&A expenses and enhanced inventory management. These efficiencies yield higher supplier financial and operational performance despite lower gross margins. Interestingly, I find that suppliers to multiple strong buyers are unable to offset lower gross margins through SG&A expense or inventory management efficiencies. One interpretation of these results is that such suppliers are unable to manage effectively the demands of multiple strong buyers because these demands are not synchronized. Collectively, this dissertation provides important evidence of the apparent productivity and efficiency gains that are available to supply chain partners from engaging in process alignment and exchanging detailed customer demand and inventory information, and how these gains appear to enhance the performance of each firm.


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Item Type: University of Pittsburgh ETD
Status: Unpublished
CreatorsEmailPitt UsernameORCID
Schloetzer, Jason
ETD Committee:
TitleMemberEmail AddressPitt UsernameORCID
Committee ChairEvans, John Hjhe@katz.pitt.eduJHE
Committee CoChairNagarajan, Nandunagaraja@katz.pitt.eduNAGARAJA
Committee MemberFeng, Mei
Committee MemberKrishnan, Ranjani
Committee MemberThomas, Shawn
Date: 29 January 2009
Date Type: Completion
Defense Date: 24 October 2008
Approval Date: 29 January 2009
Submission Date: 1 December 2008
Access Restriction: No restriction; Release the ETD for access worldwide immediately.
Institution: University of Pittsburgh
Schools and Programs: Joseph M. Katz Graduate School of Business > Business Administration
Degree: PhD - Doctor of Philosophy
Thesis Type: Doctoral Dissertation
Refereed: Yes
Uncontrolled Keywords: balanced scorecard; bargaining power; FAS 131; financial performance measures; nonfinancial performance measures; supply chain
Other ID:, etd-12012008-133721
Date Deposited: 10 Nov 2011 20:07
Last Modified: 15 Nov 2016 13:52


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