Perception gap and its impact on supply chain performance

Abstract

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. Keywords Perception Gaps, Supply Chain Performance, Supply Chain Management, SCM, Supply Chain Integration, Performance Management