Collaboration in demand-driven supply chain: Based on a perspective of governance and IT-business strategic alignment

Abstract In today’s marketplace, firms participating in a supply chain are required to work collaboratively to quickly respond to market and consumer demands. To understand how firms may effectively achieve supply chain collaboration, this paper presents an empirical study using a moderated mediation model that explores the effects of formal contract, e-business strategic alignment (including intellectual and operational alignment) and the degree of competition on collaboration in demand-driven supply chain. Using data from a survey of IT and business executives in 209 firms, we discover that formal contract has a positive effect on supply chain collaboration through intellectual and operational alignment. In addition, the positive mediating effect of operational alignment is stronger under a higher degree of competition. Although there is no moderated mediation effect in the path of formal contract-intellectual alignment-supply chain collaboration, the degree of competition shows a negative moderated effect on the relationship between formal contract and intellectual alignment, and a positive moderated effect on the relationship between intellectual alignment and supply chain collaboration. Learnings from this study contribute to supply chain management literature, and provide a comprehensive view of the governance and strategic antecedents of supply chain collaboration under various environmental circumstances.