Perception gap and its impact on supply chain performance

January 10, 2016
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Supply chain performance

Figure 4. SEM modelling for relationship between performance gaps and performance shortfall

Figure 4. SEM modelling for the relationship between performance gaps and performance shortfall

Perception gap and its impact on supply chain performance

The main purpose of this paper is to frame the perception differences between the buyer and supplier on the supply chain’s operational delivery, and to investigate their causal relation to the overall supply chain performance. A conceptual three-level model is developed to theorise the structural existence of the perception gaps in primarily a dyadic buyer-supplier setting. Using the primary data gathered through a major survey exercise, confirmative factor analysis and structural equation modelling were conducted to test the hypotheses on the significance and relevance of the perception gaps in supply chain management. This study provides a better conceptual understanding of the perception differences on the required as well as achieved operational deliveries within the supplier-buyer dyad, and reveals their significant and negative causal impact on the overall supply chain performance.

Lu, D., Ertek, G., (2015) “Perception gap and its impact on supply chain performance”, Int. J. Business Performance and Supply Chain Modelling, Vol. 7, No. 2, 122-140.

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