Thesis Final (Standard Edited)

Drivers and Effects of Supply Chain Transparency in the Pakistani Automotive Industry
A thesis submitted
By
Mohammad Omar (12188)
To
Department of Business Administration
In partial fulfillment of
The requirement for the
Degree of
MASTER OF BUSINESS ADMINISTRATION
In
Supply Chain Management
This thesis has been
Accepted by the faculty
FACULTY OF BUSINESS ADMINISTRATION
Mr. Waqar Ahmed

Advisor
Mr. Syed Ali Raza

Deputy Director Research and Publications
Acknowledgement
It has been a great opportunity for me to write my thesis on the subject “The Drivers of
supply chain transparency and its effects on performance measurers in the automotive
industry of Pakistan”, through an institution as great as Iqra University. While conducting
my research I went through various past researches and visited OEMs, Vendors and Sub-
vendors associated with foreign multi-nationals like Honda, Toyota etc.
I acknowledge with gratitude the help and assistance of Professor Waqar Ahmed,
Professor ArsalanNajmi and all faculty members associated with this project. I am also
thankful to all the teachers who taught me the relevant subjects. This was my first Thesis
and was achieved with the help of the aforementioned seniors.
I hope this thesis will prove helpful for further research and will be beneficial for the
students working in the automotive industry.
I again feel pleasure in thanking IQRA University.
Mohammad Omar.
i
Table of Contents
Acknowledgement............................................................................................................i
Abstract...........................................................................................................................vi
Chapter No 1........................................................................................................................1
1.1 Introduction................................................................................................................2
1.2 Background................................................................................................................4
1.3 Statement of problem.................................................................................................7
1.4 Objective of study......................................................................................................9
1.5 Research Questions....................................................................................................9
1.6 Significance of study..................................................................................................9
1.7 Limitations and delimitations of study.....................................................................10
Chapter No 2......................................................................................................................11
2. Literature Review.......................................................................................................12
2.1 Introduction..............................................................................................................12
2.2 Theoretical background and hypothesis...................................................................13
2.2.1 Disintermediation..............................................................................................16
2.2.3 Third-party integration......................................................................................18
2.2.4 Supply chain communication............................................................................20
2.2.5 System Integration.............................................................................................21
2.2.6 Trust...................................................................................................................22
2.2.7 Effects of supply chain transparency on performance measures......................23
2.3 Review of related literature......................................................................................23
2.3.1 Disintermediation..............................................................................................26
ii
2.3.2 Formalization.....................................................................................................28
2.3.3 Third party integration.......................................................................................29
2.3.4 Supply chain communication............................................................................30
2.3.5 System Integration.............................................................................................32
2.3.6 Trust...................................................................................................................33
2.3.7 Supply Chain Transparency..............................................................................33
2.3.8 Relationship Performance.................................................................................36
2.3.9 Operational Performance...................................................................................37
2.3.10 Supplier Performance......................................................................................38
2.3.11 Technical Performance....................................................................................40
2.4 Conceptual framework (Proposed Model)...............................................................43
Chapter 3............................................................................................................................44
3. Research Methodology..............................................................................................45
3.1 Introduction..............................................................................................................45
3.2 Research Purpose.....................................................................................................45
3.3 Research approach...................................................................................................45
3.4 Research design........................................................................................................46
3.5 Research instrument.................................................................................................47
3.6 Face and Content Validity........................................................................................48
3.7 Target Population.....................................................................................................48
3.8 Sample Size..............................................................................................................49
3.9 Sampling technique..................................................................................................49
3.10 Statistical techniques for data analysis...................................................................50
iii
3.11 Operational definitions of variables.......................................................................51
3.11.1 Disintermediation............................................................................................51
3.11.2 Formalization...................................................................................................51
3.11.3 Third-party integration....................................................................................51
3.11.4 System integration...........................................................................................51
3.11.5 Supply chain communication..........................................................................51
3.11.6 Trust.................................................................................................................52
3.11.7 Supply chain transparency...............................................................................52
3.11.8 Relationship Performance...............................................................................52
3.11.9 Operational performance.................................................................................52
3.11.10 Supplier performance....................................................................................52
3.11.11 Technical performance..................................................................................52
3.12 Ethical considerations............................................................................................53
Chapter No 4......................................................................................................................54
4. Data Analysis.............................................................................................................55
4.1 Introduction..............................................................................................................55
4.2 Reliability (Pilot Study)...........................................................................................55
4.3 Data Screening.........................................................................................................56
4.4 Descriptive analysis and interpretations..................................................................56
4.5 Model Validity.........................................................................................................57
4.5.1 Model measurement..........................................................................................57
4.5.2 Content Validity................................................................................................57
4.5.3 Convergent validity...........................................................................................60
iv
4.5.4 Discriminant Validity........................................................................................62
4.6 The structural model and test of hypotheses............................................................63
Chapter No 5......................................................................................................................69
5. Conclusion and Recommendations............................................................................70
5.1 Conclusion...............................................................................................................70
5.2 Recommendations (Implications)............................................................................74
5.3 Future Research........................................................................................................78
References..........................................................................................................................80
Appendices........................................................................................................................97
Appendix-A....................................................................................................................98
Appendix-B..................................................................................................................102
v
Abstract
Information flow in a supply chain has gained a lot of importance in achieving better and
timely decision making. Previous studies have addressed the technological side of
integrating the information flow but very few have emphasized on the quality elements of
information flow which leads to a supply chain transparency. This research investigates
the factors which are significant to augment supply chain transparency. The study further
examined the impact of supply chain transparency on the various performance indicators.
Research model is derived through the detailed past studies stressing on factors
contributing to supply chain transparency and its impact on performance. Partial Least
Square- Structural equation modeling has been used to validate the research model and
for examining the relationships between variables. Using data from 218 supply chain
specialists from Pakistani automotive industries, results revealed that supply chain
transparency has a significant effect on operations, supplier, relational & technical
performance. The effort of foreign multinationals to standardize the automotive supply
chain has also been highlighted. Furthermore, the main aspect evaluated is the prevailing
level of supply chain transparency in the automotive sector of the developing country like
Pakistan. The study will be beneficial for supply chain specialists in formulating
strategies to improve logistics performance through improving transparency in their
multitier supply chains.
Keywords: Supply Chain Transparency, Disintermediation, System Integration, Trust,
Formalization, Relationship, Operational, Technical and Performance.
vi
The Drivers of supply chain transparency and its effects on 1
performance measures in the automotive industry of Pakistan
Chapter No 1
Introduction
1.1 Introduction
The automotive sector around the world is growing rapidly as the global demand
for transportation has increased. Some of the challenges faced by the automotive sector
due to this expansion are the complexities of mass customization, inventory minimization
etc. shifting the industrial trend towards a more holistic view (Michalos, 2010) and
requires more collaboration with respect to the supply chain function. The supply chain
functionality of this sector should be flexible enough to respond to demand driven
changes in customer requirements and prioritize the right strategic actions in line with
such changes (Wiengarten et al., 2010). The complexities faced pose a one of the greatest
challenges for the automotive sector in contrast with other industrial sectors because of
the large number of parts involved in the manufacture of automobiles which makes it
difficult to quantify data in terms of parts (Imran, 2015). Automotive industry practices
are being improved through the efforts of incorporating Just-in-Time (JIT) integration
and implementation of Total quality management (TQM) (Dinsdale & Bennett, 2015,
Vanichchinchai, 2014). Such efforts require effective collaboration among original
equipment manufacturers (OEMs) and their supply chain members (vendors) such as
appropriate leadership and greater focus on customer requirements respectively
(FadlyHabidin & Yusof, 2013). The application of JIT implies that inventory remains low
to zero throughout the manufacturing processes so that inventory storage costs remain
minimum and maximum space is available for manufacture or movement of work in
progress is not affected by stored inventory (Pawar et al., 2016). The effective application
of JIT can be accomplished through the appropriate level of supply chain collaboration
(Saad & Patel, 2006), i.e. making the functionalities, performances, motives and
importance of all supply chain members visible enough to enable comparability with the
subjective company’s own performance while taking into account the collective effect of
the contribution of all supply chain members on the subjective company’s performance
(Dingwerth & Eichinger, 2010). Collaboration with all tiers of the supply chain should be
effective enough to enable the identification of discrepancies so that corrective action can
be taken to remove or minimize inefficiencies.
Intermediaries and their selection as supply chain members has huge implications
on a company’s future performance as only productive intermediaries can lead towards
value addition in the finished product (Intarakumnerd and Chaoroenporn, 2013),
therefore, efforts to remove non value adding intermediaries should be undertaken by
companies. Formalized forms of management practices through standardization are
currently implemented in the automotive sector to improve mutual understanding of
manufacturing procedures (Heras-Saizarbitoria & Boiral, 2013). System integration
among supply chain members is also currently practiced in the automotive sector of
developed countries with the objective of improving supply chain collaboration
(Wiengarten et al., 2013). Structured forms of communication to aid supply chain
functionality are put in place. Such degree of implementation of disintermediation,
formalization, system integration, communication and third party involvement are all
being done with the aim of improving supply chain functionality by improving supply
chain transparency (Bastian & Zentes, 2013).
Variability in consumer requirements is subjective of country, society, economy
etc (Keshavarzian, 2012). In the case of third-world or developing economies like
Pakistan the demand for two-wheelers and four-wheelers is more focused on fulfilling the
commuting requirements of individuals than mass customization or luxury as the
majority of Pakistan’s population consists of working class individuals (Hassan et al.,
2012). However, even with the low focus on mass customization or luxury, the
commuting infrastructure of Pakistan, specifically major cities like Karachi, is very
mediocre and requires durable vehicles which can easily traverse such rough roads (Ali et
al., 2015). Vendors providing OEMs with parts are also communicating their processes in
the development of such parts through proper supply chain collaborative procedures as
the durability requirements of the finished products are essential for making the products
marketable (Mahmood et al., 2011). Supply chain collaboration, in order to influence
long-term relationships, is carried out to enhance the performances of both suppliers and
buyers so that consumer demand fulfillment can be facilitated (Ramanathan et al., 2012).
1.2 Background
Automotive companies, in the past, have faced many problems including poor
inventory control, technical discrepancies, design incompatibilities, low government
support, product unavailability, engineering down falls, market rejection, non-value
adding suppliers, manufacturing delays, untimely dispatches, information gaps etc.
(Amin et al., 2014, Bennett & O’Kane, 2006, Ahmed et al., 2013, Ahmed & Pirzada,
2014, Hasan et al., 2014, Mahmood et al., 2014, Khan and Nicholson, 2015) all these
mostly pointing towards inappropriate supply chain practices as well as internal short
comings (Khan and Nicholson, 2014). Most of these issues can be resolved through the
adoption or rectification of supply chain practices (Mahmood et al., 2014). A shift from
intermediary distribution to direct distribution has resulted in improved product supply
(Niziolek et al., 2012). Non productive intermediaries established their stake in the
automotive industry by simply providing a channel for part supplies rather than
manufacturing or adding value to the parts (Intarakumnerd & Chaoroenporn, 2013).
Removal of such intermediaries has reduced supply costs. Collaborative partnerships
among supply chain members have lead to the realization of favorable future supply
chain functionality (Cao & Zhang, 2011).
Further application of supply chain collaboration, differentiated through the
economic conditions, in the contemporary national setting of Pakistan can lead to
improved synergistic output from a supplier-buyer relationship (Khan and Nicholson,
2014). Countries in which extensive supply chain collaborative measures, and research of
the said measures, have been applied show positive outcomes leading towards overall
improvements in organizational performance matrices resulting in better customer order
fulfillment (Wiengarten et al., 2013, FadlyHabidin & Yusof, 2013).
Implementation of a system based on information technology to facilitate the flow
of information among supply chain members accompanied with other complementary
competencies has, in the past, resulted in favorable inter suppler-buyer logistics
functionality (Prajogo & Olhager, 2012). As researched and identified by Khan and
Nicholson (2015), improvements in systems used for supplier-customer communications
are currently being implemented in Pakistan, with a shift from local unauthentic supply
chain practices to technologically advanced systems provided by advanced economies
through international joint ventures subjecting small to medium sized local automotive
vendors.
Worldwide standardization of the various sectors under certifications such as ISO
9000 has lead towards positive performance outcomes improving supplier-customer

comprehension in terms of management procedures and standardized management
practices (Llach et al., 2011, Heras-Saizarbitoria & Boiral, 2013). Such standardized
forms of management practices and procedures are, as per standard requirement, without
any indirect influence applied on supply chain management and manufacture processes
and procedures. Even with the presence of such standards, the outcomes of
standardization have varied with respect to the depth of standard application (Prajogo et
al., 2012). Standardization of the automotive vendors and OEMs in Pakistan has been
implemented to a great extent with some companies keeping pace with current standards
while others struggling to adopt and/or follow current standards leaving some companies
uncertified or with expired certifications (Ahmed et al., 2013).
Supply chains of companies work well when collaboration is high and even better
when the level of trust among customers and suppliers is significantly positive (Gold et
al., 2009). Improvements in level of commitment and trust have played a vital role in
improving satisfaction of supplier-customer relationships in the past as well as enhancing
performance levels of the supply chain (Nyaga et al., 2010). Past examination of
automotive vendors in Pakistan has shown issues with trust among OEMs, vendors and
sub-vendors to a mild extent with respect to occasional operational irregularities (Shakeel
Sadiq Jajja et al., 2014). It is unclear whether these issues with trust still exist and, if they
do, are they effecting performance of the manufacturing processes distributed throughout
the supply chain. Effective supply chain collaboration, with respect to past research,
implies a good level of customer-supplier trust (Sharfman et al., 2009).

1.3 Statement of problem
In the current state of dynamics in which the automotive industry is operating it is
vital that information flow stays timely and reliable throughout the supply chain
(Michalos, 2010). The contribution of internal knowledge flow among firms involved in
supply chain activities is a hidden measurable between operational performance and
supply integration (Prajogo et al., 2016) indicating the need to identify transparency
levels. Empirical data for analyzing the status of supply chain transparency is insufficient
due to lack of research (Bastian & Zentes. 2013). Techniques for analyzing information
quality have been employed be various sophisticated automotive industry members to
enhance tier interactivity and profitability (FadlyHabidin & Yusof, 2013). Although inter-
tier information asymmetries remain partially explored as frameworks to reduce some
automotive industry complexities, such as Supply Chain-New Product Development,
have been proposed, the methodological phase for implementing such frameworks as
well as other substantial frameworks still remains to be explored (Hasan et al., 2014).
Automobile vendors are hesitant to implement new technologies for operational
advancement considering it a monetary burden and an extreme time dedicative endeavor
(Perween et al., 2013). Meeting standards at the international level and improving
competitive edge are requirements for industries in emerging economies in order to make
their products internationally marketable (Shakeel Sadiq Jajja et al., 2014). The vendor
industry integrated with various Japanese automobile manufacturers operating in Pakistan
fall subject to continuous auditing and improvement programs (Hasrulnizzam Wan

Mahmood et al., 2011, Khan and Nicholson, 2014) as well as international joint ventures
to aid in their technological development (Khan and Nicholson, 2015).
The appropriate speed of information diffusion helps maintain an innovative
standing in the industry (Irland, 2007). Some intermediaries lack the skill set necessary to
contribute productively in the supply chain (Niziolek et al., 2012). International standards
have significantly multiplied in the past decade, to cater the requirements of mass
customization (Llach, 2011), which are not fully or are variably adhered to by the local
automobile vendors (Ahmad et al., 2013).
Clear & trustworthy information sharing is vital for performance improvement
(Nyaga et al., 2010) which is questionable considering the collaborative asymmetries
which are proving to be problematic for multinationals when operating with the Pakistani
automotive industry (Khan and Nicholson, 2014).
Two phases of organizational strategy deployment can play a critical role in
achieving information flow effectiveness; exploration followed by exploitation (Khan
and Nicholson, 2015, March, 1991). The dynamic capabilities of organizations can be
aided through exploration of new knowledge dimensions (Teece, 2014) which will lead
towards supply chain transparency. Capabilities inherent to organizations can be fostered
and improved through the exploitation of knowledge & technology prevalent in the
existing industrial setting (Andriopoulos & Lewis, 2009).
1.4 Objective of study
The objective of the study is to analyze the factors which contribute towards
supply chain transparency and the effect of supply chain transparency on various
performance measures like relational, operational, supplier and technical performance

measures in the context of the Pakistani automotive industry. This would help in
identifying insightful operational aspects which indicate the presence of asymmetric
information (i.e. imbalances or irregularities in information nature and structure among
supply chain members) effecting performance. Past research (Wiengarten et al., 2013,
Saad & Patel, 2006, Prajogo & Olhager, 2012, Sharfman et al., 2009) has focused mostly
on uncovering the effects of collaborative efforts on performance in industrial contexts
such as the automotive industry where as this study focuses on evaluating the level of
information transparency resulting from such collaborative efforts and the effects of
transparency on performance metrics.
1.5 Research Questions
Q1: What is the relationship between information flow/clarity enhancing factors and
supply chain transparency among automotive industry members?
Q2: What is the relationship between supply chain transparency and various essential
performance measures among automotive industry members?
1.6 Significance of study
This study, due to its focus on uncovering information flow/clarity driving
factors, will play an important role in facilitating supply chain officials in developing
strategies for enhancing the effects of current information sharing practices among supply
chain members in the automotive industry. The factors studied in this thesis have been
applied in the industry at variable levels implying that the results of this study will
identify the factors which have contributed the greatest in improving transparency
enabling supply chain managers to focus on the most significant factors. The
performance measures being affected by supply chain transparency have also been
studied in this thesis in order to identify the significance of supply chain transparency
with respect to each performance measure. This would help clarify to supply chain
officials the importance of maintaining a transparent supply chain in terms of information
flow/clarity and emphasize the formulation of strategies to enhance supply chain
transparency. This study will also help in setting a direction for new supply chain
transparency based research in the automotive sector.
1.7 Limitations and delimitations of study
Limitations will be present throughout the research process as surveys in Pakistan
are carried out under unstable conditions owing to corporate mismanagement and poor
infrastructure, the former mentioned difficulty is attributable to a research making use of
convenience sampling (Bryman, 2015) as a specified group of respondents compatible
with a research are generally difficult to access and their availability is limited. This
implies that accessibility of some automotive vendors will be a problem and the survey
will have to be conducted via email or telephone. Another limitation is that prior research
on supply chain transparency is insufficient for formulating any firm conventions for this
research and has been conducted on industries other than the automotive industry
therefore, generalized conclusions, in the international context, for automotive supply
chain transparency will be limited or not available.
The sample size acquirable will not be a problem as a huge amount of automotive
supply chain members are available via large OEM networks and will be fulfilled under
the guide lines of Tabachnick and Fidell (2007). The data will be reasonably reliable as
only supply chain, technical and other relevant officials will be approached for fulfilling
the requirements of this research as per convenience sampling.

Chapter No 2
Literature review
2. Literature Review
2.1 Introduction
Supply chain transparency, specifically, has not been one of the core focuses, as
indicated by past research, in the automotive sector. Mostly, some of the aspects
attributing to or affecting transparency have been analyzed in the past. Aspects which
may have contributed to the effective application of transparency such as cost have been
researched upon (Aggarwal & Jorion, 2012). Subject to the effective operation of the
automotive sector, various techniques have been implemented to improve supply chain
collaboration in order to achieve synergistic functionality complemented by the collective
involvement of all supply chain members, suppliers and customers alike. In the case of
the automotive industry of Pakistan, not much literature is available exclusively focused
on the supply chain transparency elements, however, other elements focusing on
improving supply chain functionality in terms of information sharing have proven
significant through past research in other, more developed, countries. In order to facilitate
supply chain management in the automotive sector of countries other than Pakistan
strategies and tactics involving collaboration, standardization, intermediary alignment,
third-party involvement and binding contracts have been resorted to. Literature has
shown that improvement in supply chain functionality can be achieved in similar
industries (Adebanjo & Laosirihongthong, 2014) as well as unrelated industries
(Humphreys et al., 2011, Trienekens et al., 2012) with the proper application of the right
factors affecting supply chain performance and indirectly affecting supply chain
transparency.
2.2 Theoretical background and hypothesis
Supply chain performance, in industries manufacturing durable products such as
two wheelers and four wheelers, in a demand driven economy like Pakistan require that
their information flow with all supply chain members stays reasonably fluid and clear, if
not absolutely fluid and crystal clear. The proper flow of information has led to many
benefits for industries in the past in terms of cost savings, performance improvements etc.
Improving customer satisfaction is the core focus of the automotive sector, one which
cannot be achieved without proper manufacturing capabilities and capacity.
With the presence of current demand levels, manufacturing targets are extremely
high and require active involvement of all relevant supply chain members. Various
factors, in the past, have affected the flow of information among all tier supply chain
members, supply chain performance of the subject organization as well as the
performances of all tier members involved and the overall synergistic output of all
members involved. These information flow and performance driving factors can be
linked with supply chain transparency followed by how much transparency is affecting
the desirable outcomes in terms of other factors.
Building upon the theoretical implications of SCT (supply chain transparency)
which is a critical component of SCM (supply chain management) in the modern era, yet
remains fully unexplored (Bastian & Zentes, 2013), information theory (A.K.A channel
coordination) is used as a foundation for describing the flow of information in terms of its
asymmetric levels and its influence in enabling mass customization, production
requirements, business relationships in the long run and ultimately performance levels
(Sarkis et al., 2011).

All tiers operating within the supply chain manage operational synchronization
with each other through information sharing which enables them to coordinate task
requirements in order to carry out organizational functions in the most efficient and
effective of ways (Sarkis et al., 2011).
The information shared should be communicated in formats which are
comprehendible to the supply chain members who are meant to be directed and the
medium should be free of distorting hurdles, noise generating nuances, delaying
operators etc. so that no information is lost during transition (Beulens et al., 2005). Slight
information imbalances, such as forecasted operational sequences not falling in line with
actual operational requirements, create functional disorders in terms of distrust among
supply chain members (Han & Dong, 2015). This indicates that trust falls in line as a
construct supporting information flow.
Strategies, developed and followed by organizations for carrying out their supply
chain activities, require effective involvement of all entities present in the supply chain
network in terms of consistent interactions all in all leading towards strategic purchasing,
i.e. selecting supplier more proactively while focusing on long term competitive
advantage, supplier base reduction, i.e. eliminating excess supplier while retaining the
productive ones (Disintermediation), the effective application of information technology,
i.e. facilitating the real time flow of information through computer applications and
rendering new processes by analyzing previous ones, develop better supply structures, i.e.
instead of vertical integration more focus is placed upon inter-firm dependency, the
standardization of operations among all supply chain members and the establishment of
better communication norms at an inter-organizational level (Chen & Paulraj, 2004).

Therefore it can be said that the former mentioned components (i.e. disintermediation,
standardization, IT integration, communication) are active constructs enabling fluid
information flow. Third parties working as certification bodies (NGOs) also have a major
play in communicating the credibility of information provided by industrial entities
(Raynolds et al., 2007), therefore, facilitating further supplier-customer relationship
enhancement. Third party integration can be considered as a construct which improves
information flow but is more focused on information credibility enhancement.
Two aspects significantly facilitate effective application of strategies involving
information sharing which is ‘coordination’ accompanied with the ‘sharing of
information’. Building upon these two aspects, three categories of information sharing
drive the effective functionality of coordination and collaboration. Firstly, order
information, which is the information shared among supply chain members on a regular
basis for carrying out common operations, secondly, Partial information, which enables
effective planning followed by control and thirdly, information which is meant for
strategic action such as industry relevant research data. The primary objective of
accurately sharing information in a timely fashion is to enable effective decision making
which pertains to the quality requirements of the organization. The same two aspects
apply for information sharing done at an inter-organizational level (Hung et al., 2011). A
common attribute of all the above mentioned sub-aspects of information shared is the
quality of information which is just as significant as information sharing itself. Better
quality information shared is preferable over a vast amount of information shared (Wang
et al., 2014).
The flow of information is facilitated through the integration and proper
application of resources which are specifically designed to aid information flow. These
resources are incorporated into the collaborative structures of industrial entities in order
to achieve and sustain competitive advantage as suggested by ‘Resource based view’
(Barney, 2012) and in order for these resources to be more focused on transparency in
terms of economic friendliness and facilitate performance it is appropriate to shift focus
towards the economic perspective of outcomes rather than the environmental and social
perspectives (Carter & Rogers, 2008). Information technology, as a resource, has not
independently shown strong contribution towards improving performances in the past but
after further research it has been identified that information technology when integrated
into the supply chain function to facilitate the supply chain communication systems has
significantly positive effects on performance and more benefits of information
technology can be realized through multi-function IT integration. This multi-functional
IT integration can help foster capabilities such as responsiveness in terms of supply chain
information exchange, coordination and integration of activities (Wu et al., 2006).
Summing up the assumptions underlying resource based view; firms in similar and
complementary industrial settings should be resourceful enough to have access to varying
levels of technologies as compared to the industry as a whole in which information varies
due to the varying sources from which the information originates (Hunt & Davis, 2012).
This implies that resourceful companies may have the capabilities of dealing with
information complexities which for them is advantageous in contrast with the industry as
a whole.
2.2.1 Disintermediation
Involvement of supply chain members, in order to be supportive for supply chain
performance , should be with integrity in terms of functional relevance to the overall
supply chain objective. Therefore, it is critical that supply chain members be chosen with
diligence. Correct certification attached to suppliers is an assurance that the supplier will
follow standardized procedures to fulfill the buyer’s requirements. (Irland, 2007) found
that certified supplier’s linkage to the other tier members is made effective by the paper
work attached to each supply made downstream or received from upstream as per
standard. (Sarkis et al., 2011) found that, as suggested by theory, greater number of
intermediaries’ results in greater complexities for all involved supply chain members.
Cost advantages can be directly linked with disintermediation even though transportation
costs may increase in the absence of intermediaries; the cost reductions of the former are
greater than the additional costs of the latter (Niziolek et al., 2012). Greater degree of
transparency demands that information disclosure in part of the supplier to the buyer
remains significant (Greer & Purvis, 2016). Transparency can retain its significance in
the supply chain with the proper implementation of standards in terms of ordering, freight
management, storage etc. (Trienekens et al., 2012). Therefore, it can be stated that
effective reduction of nonproductive intermediaries through disintermediation can lead to
better supply chain transparency.
H1: Greater disintermediation has a positive impact on supply chain transparency.

2.2.2 Formalization
Standardization, with the objective of improving control, on a voluntary level in
order to fulfill ethical and qualitative requirements by value chain focal companies is
known as formalization. Physical, technical and procedural performance characteristics
are the underlying agreements forming the basis of standardization (Alvarez, 2010). It is
evident through past research that preceding standard implementation, standard
development processes and dissemination are undertaken to make implementation
effective, however, gaps still exists regarding knowledge discrepancies which require
exploration through further research (Heras-Saizarbitoria & Boiral. 2012). From a
perspective of cross-national reference, past research has been carried out to analyze the
level of diffusion ISO 9001 standards have gone through identifying that in terms of
activity sectors in the industry the diffusion if ISO 9001 standards have been realized in
most of the production sector including two-wheelers and four wheelers (Llach et al.,
2011). Various acts, legislation and standards have been issued in the past to improve the
transparency in the supply chain in order to keep the supply chain members from
deviating from their actual operational objectives (Greer & Purvis, 2016). Standard
vendor managed inventory (VMI), with proper implementation, has resulted in an
improved cost effectiveness accompanied with information sharing and transparency
(Wadhwa et al., 2010). As indicated by past research, formalization, implemented with
various methodologies, is undertaken with the objective of improving transparency or its
implementation indirectly effects transparency in positive ways.
H2: Greater Formalization has a positive impact on supply chain transparency.

2.2.3 Third-party integration
Monitoring standards and the enforcement of any irregularities in standard
application through various modes of control are decisions significant for ensuring the
supply chain governance leads towards sustainability. Three common modes used at a
basic level are; first party mode, i.e. monitoring done internally to investigate the
processes being carried out by members of the supply chain, second party mode, i.e.
monitoring done by members who part of sectors associated with the focal supply chain
function and lastly the third party mode, i.e. monitoring done by organizations which are
independent of the focal supply chain function (Alvarez, 2010). Some third party
certifications, implemented voluntarily, have higher complexities associated with their
fulfillment as compared to other general certifications usually adhered to and accepted by
organizations as norms and are generally rejected by prevailing certification bodies.
Superior standards, as compared to general standards, are reassured through such third
party certifications making the certification holders more acceptable to their buyers by
improving their operational visibility (Raynolds et al., 2007). Some criteria used for
judging the level of legitimacy, imposed by third parties, to be implemented on
organizations includes disclosure, transparency, inclusivity etc. i.e. a measure used to
tackle low levels of transparency is to increase third party involvement (Mueller et al.,
2009). Transparency is viewed as a favorable aspect by independent organizations such
as the EU for establishing relationships between suppliers and public organizations such
that it keeps the benefits of collaborative interaction attainable while keeping confidential
information from disseminating into harmful channels (Lamming et al., 2004). Third
party involvement has been used as a measure to disclose the activities of involved
supply chain members and disclosures of irregularities have resulted in the development
of legislation to be imposed on organizations involved in such irregularities and
standardize the transparency of their operations (Greer & Purvis, 2016).
H3: Greater Third Party integration has a positive impact on supply chain transparency.
2.2.4 Supply chain communication
Supply chain complexities, shared among all supply chain members, comprise of
collaborative factors forming the basis for information sharing such as sophisticated
communication. It was argued that supply chain networks are required to adapt quasi
meta-organizational structures due to the increasing awareness in terms of the ethical and
environmental context worldwide. This necessitated organizations to establish
coordination with respect to all stages of production, i.e. from extraction of raw materials
to final customer delivery, in terms of material, functional and financial information
(Gold et al., 2009). Companies make investments when trying to achieve a more
sustainable state of their supply chains by shifting away from their purchasing portfolios.
The other motive of this effort is to achieve supplier continuity with the prevailing market
dynamics. The companies involved showed continuing efforts with respect to this aspect
and transitional periods were experienced by these companies as the efforts for continuity
gained complexity (Pagell et al., 2010). Supply chain planning and coordination are both
significant drivers for mass customization capacity; coordination provides corporate
entities with greater opportunity to establish functional networks within the industry and
drive operational performance through these networks and using the information
provided by supply chain members for production planning improves value chain
transparency (Yinanet al., 2014). Integrated information flow has proven to be a

significant functional aspect leading towards improvements in overall manufacturing
capacities for large scale projects by allowing transparent flow of information among
technical divisions and creating information compatibility (Cˇusˇ-Babic et al., 2014).
Transparency is viewed as a means of unraveling new opportunities and enables change
management with effectiveness in collaborative relationships due to its dynamic
operational capacity which encompasses effective techniques for information sharing and
allows creative input (Lamming et al., 2004).
H4: Greater Supply Chain Communication has a positive impact on supply chain
transparency.
2.2.5 System Integration
System integration from an Information technology perspective has a key role in
improving supply chain collaboration by standardizing volumetric flow of information
and tackling complexity issues with the information exchanged. Real time flow of
information with respect to various supply chain particulars and activities can be
effectively carried out by properly integrating the IT function with supply chain. Inter-
firm collaboration can be effectively carried out by utilizing the IT function to schedule
and forecast operational tasks and aligning these tasks to achieve buyer-supplier synergy
(Prajogo & Olhager, 2012). Through the application of information technology based
resources within the inter-firm collaborative structure positive business synergy is
achieved and, even though the effects may not be immediately apparent, leads towards
advantages in terms of collaborative outcomes (Cao & Zhang, 2011). Integration of
logistics information in the supply chain, after being broken down and specified in terms
of its components such as inbound logistics, leads towards various advantages and
therefore improves the competitive position of the focal corporation (Prajogo et al.,
2016). This integration clarifies the transit status of materials to finished goods, lays an
emphasis on internal and external process management and manifests the collective
positive effect of lean production and supply chain integration. With the proper
application of ERP IT systems, large scale projects have benefited significantly through
transparent flow of information and thus scheduling accuracy and effective change
management (Cˇusˇ-Babic et al., 2014). Information systems, as a prerequisite for
enabling transparent flow of information, have shown great implications in areas of
governance execution, compliance and coordination with respect to quality standards,
collaborative functionality and support the fulfillment of legislative and market
requirements (Trienekens et al., 2012).
H5: Greater System Integration has a positive impact on supply chain transparency.
2.2.6 Trust
Supplier-buyer trust is a key component in a supply chain’s operational domain
which serves as a foundation for the establishment of long-term business commitments
and relationships. The effects on overall outcomes resulting from trustworthy
relationships and the level of commitment they generate are the primary concerns of
buyers (Nyaga et al., 2010). Among other important components responsible for assisting
firms with managing a supply chain at corporative level, trust has been identified as a
significant antecedent in maintaining effective operational collaboration (Sharfman et al.,
2009). Collaborative environments fall subject to complexities such as sharing of
information which can be tackled with the establishment of relationships formed on the
basis of trust which is a valuable strategic tool when information shared comprises
context critical for operational effectiveness (Cai et al., 2010). Trust in a product’s
originality can be placed on the basis of the reality of information attributed to the
product as information integrity cannot always be guaranteed with contractual agreement
clauses. Prolonged business relationships lead towards the development of trust which
acts as an indicator of behavior driving opportunistic intentions supporting governance
and ensuring transparency, in terms of information shared, among members involved
(Trienekens et al., 2012). Various acts, supported by legislation, were formed to enable
the identification of supply chain operators trustworthy enough to let them operate with
continuity i.e. they had transparent information flow present throughout their operations
visible to all tiers of the supply chain (Greer & Purvis, 2016).
H6: Greater Trust has a positive impact on supply chain transparency.
2.2.7 Effects of supply chain transparency on performance measures
Information asymmetry is a complexity which can be reasonably tackled by
enabling transparent flow of information among supply chain members from a theoretical
perspective (Bastian & Zentes, 2013).
Asymmetric information has shown as a negative driver of long term business
relationships and results in contracts lasting for short time intervals, therefore, enabling
transparency in information flow can result in successful long term relationships
(Costello, 2013). A trustworthy supplier-buyer relationship composed of attributes
depicting exchange of information in social manners such as power alongside reciprocity
and commitment is a prerequisite of long-term strategy formulation for enhancing
collaboration (Wu et al., 2014). Alliances comprising of transparency among buyers and
suppliers in the long run are successful due to greater visibility for responsiveness
(Ellram & Krause, 2014). Collaborative efforts resulting in information flow transparency
lead towards successful collaborative execution due to which future collaborations are
positively affected (Ramanathan & Gunasekaran, 2012). Thus, quality relationships are
the product of transparency enabling characteristics inherent in organizations and efforts
employed by organizations to enhance transparency.
H7: Greater Supply Chain Transparency has a positive impact on Relationship
Performance.
Reliable information systems have positive effects on operational performance
due to their information transparency enabling capacities (Green et al., 2012). During
transfer of operational knowledge, from a theoretical point of view, the prevailing
knowledge structures present in the organizations are taken into account which facilitates
in the creation of value through the process of knowledge transfer (Modi & Mabert,
2007). Operational performance, to a certain degree, is favorably affected by positive
transparency in the supply chain (Bastian & Zentes, 2013). Industries with significant
information flow related operations rely on timely information diffusion and collection in
order to stay in line with industrial competitive pressures. Operational benchmarks, such
as supply chain effectiveness, information flow efficiency accompanied with reasonable
cost reductions, have been met by large corporations through refinement of supplier
integration and operations carried out internally. This implies that operational firm
performance, in industries composed of corporations which heavily rely on information
flow, is favorably affected by proper supplier integration as part of supply chain
management (Ou et al., 2010). Information system reliability, transfer of operational
knowledge and timeliness in information flow through supplier integration, being

attributes of a transparent supply chain network, therefore, favorably affect operational
performance.
H8: Greater Supply Chain Transparency has a positive impact on Operational
Performance.
Effective information sharing practices, although not highly effected by industrial
supply chain dynamics, are found to be drivers of better supply chain performance
metrics such as supplier performance in terms of delivery, ‘just in time’ and planning
(Zhou & Benton, 2007). Collaborative communication plays a positive role when
mediated through the collective effect of two constructs measuring supplier integrity;
affective supplier commitment and knowledge levels of suppliers resulting in supplier
performance improvements at a continuous level (Joshi, 2009). Supplier performance is
improved through value created by activities involving transfer of knowledge.
Knowledge transfer is commenced after suppliers have gone through proper evaluation
procedures and certification formalities. This helps in identifying supplier compatibility
with operational requirements, highlights opportunities of further development and
indicates areas of improvement by establishing new benchmarks. Suppliers chosen for
prolonged business engagement are subjected to further development programs to
facilitate performance enhancement (Modi & Mabert, 2007). These efforts are, therefore,
focused on creating greater transparency for enhancing supplier performance.
H9: Greater Supply Chain Transparency has a positive impact on Supplier Performance.
Technical skills, alongside knowledge which is specific to the firm, induced in
organizational personnel are a requisite for effective information system functionality.
Systems designed for carrying out information flow are utilized in intensive knowledge
transfer activities and require technical capacities. With the appropriate levels of
information technology responsiveness in terms of flexibility is enhanced, therefore,
enabling rapid provision of solutions for technical issues (Ravichandran et al., 2005) and
ensures a better leveraged information systems through technical knowledge. Supply
chain members involved in the development stages of new products benefit from back
and forth supply chain technical assessments resulting in favorable performance of new
product designs (Petersen et al., 2005). Transfer of technical information, as part of
logistics integration, is crucial for ensuring that the information transferred contains no
loop holes and the information managed by the supply chain is transparent enough to not
compromise integrity and facilitate performance (Prajogo & Olhager, 2012).
H10: Greater Supply Chain Transparency has a positive impact on Technical
Performance.
2.3 Review of related literature
Niziolek, Chaim and Yih (2012) used a simulation model to analyze the
improvement in supply chain of the pharmaceutical industry with the implementation of a
disintermediation strategy (i.e. removing the whole seller tier). Results indicate a
significant impact on transportation cost with the implementation of a hybrid strategy.
Shipping directly to customers is the main focus of this disintermediation strategy and a
comparison of four direct-ship models has been done. Inventory cost ratio and truck
utilization has also been analyzed with the use of sensitivity analysis to determine the
best possible strategy to implement.

Sarkis, Zhu and Lai (2011) used theoretical investigation and literature review to
investigate the current emphasis, acceptance and implementation of green supply chain
management and areas where it can be further implemented and improved. Further
directions of research have been identified. Nine broad organizational theories in
published GSCM literature have indicated the effects of implementing GSCM practices.
Worthy questions for investigating the domain of GSCM, through a review framework,
have been identified. The conclusion drawn suggests more organizational theories worthy
of implementation in future GSCM research.
Irland (2007) investigated the level of availability of environmentally certified
wood products alongside the hindrances, complexities and barriers in certification and
distribution of wood products. Importance of environmental standards to be met for
buyers of wood products is critical for allowing green material usage in construction.
Forest management is therefore required to adhere to ‘green certification’ of several
forms. Issues in circulation include the fact that wood, mostly, on display in shelves has
no label indicating ‘green certification’. Through this research, products of high potential
for ‘green certification have been identified and the support of all tiers in the supply chain
for facilitating in the certification process has been suggested due to the complexity of the
multi-level supply chain. Purchase size, frequency, product selection criteria, influences
and price sensitivity are some of the factors like to increase the marketability of certified
wood products.
Ponte and Gibbon (2005) discussed the global value chains and the weightage
given by them on quality. Lead firms are shifting towards a ‘buyer-driven’ functionality
with respect to their global value chains even though the coordination between them and
them and their immediate suppliers is more ‘hands-off’ in nature. Complex quality
information developed and provided by lead firms have become part of certification
procedure alongside widely accepted standards and codification. Value chain-specific
quality attributes have been defined and managed by lead firms which has enabled them
to successfully achieve acceptance in the said standards and procedures as suggested by
convention theory that are more exposed to society and give of greater descriptions of
quality.
2.3.2 Formalization
Heras-Saizarbitoria and Boiral (2012) ran an integrative review of the current
standard adaptation trends of organizations by going through past literature based on
meta-standard (management system standards) adoption in organizations. The goal was
to indentify the changes in standardizations and the progressive applications and effects
of the standards. Two meta-standards were the main focus of this study, ISO 9001 and
ISO 14000, which are being followed worldwide by more than 1.3 million organizations.
Some of the main problems in meta-standards have been highlighted in this paper which
should be subject to future research including; motivations, internalization, consultancy,
diffusion processes, favorable effects of standard adaptations, performance implications
of standards, auditing and global governance.
Prajogo, Huo and Han (2012) through the use of structural equation modeling
examined the effects of various ISO 9000 implementations on three essential supply
chain management practices followed by the effects of these SCM practices on
operational performance. This paper focuses on a model, proposed, describing the
relationships between these various implementations of ISO 9000 in supply chain

management practices and operational performance. 321 managers from Australian firms
were the respondents for this research on which the standards of ISO were being
implemented on an advanced, basic or supportive level. The effects of these varying
implementations on supplier, internal and customer process management were analyzed.
These process management practices were hypothesized to have an effect on operational
performance. Findings indicated positive effects of advanced ISO implementation on all
three supply chain activities. Supportive ISO implementation had positive effects on two
supply chain activities (customer and internal) and basic ISO implementation showed no
effect on any of the three supply chain practices.
Llach, Marimon and Bernardo (2011) analyzed the level of diffusion of standards
laid down in ISO 9000 world-wide respective of the industrial sectors and the activities
carried out within alongside evaluating the evolution of this diffusion. The data from
1998 to 2008 was used to analyze the level of diffusion world-wide of ISO 9000
standards. ISO provided the data. The data was analyzed to establish comparability of the
level of diffusion between different industrial sectors and identifying diffusion
heterogeneity, two instability indices were used. Findings indicate that ISO 9001
standards are diffused throughout the industrial sectors in varying patterns which can be
graphically represented by logistic curves. Three groups of industrial sectors have been
identified and each stage of diffusion varies among them. A mathematical model forms
the basis of prediction due to which data validity is crucial. The data had two
discrepancies present within.

2.3.3 Third party integration
Mueller, Santos and Seuring (2009) investigated the activities of companies in
setting up their standards for meeting the requirement to fulfill corporate social
responsibility. It has been identified that companies tend to make use of standards which
are low in demand in order to be more legitimately apparent, although this is not the case
as this act gives off misleading images of companies and legitimacy is a main
requirement in order to be acceptable socially and environmentally. Alongside giving off
misleading information, such practices tend to be more harmful for stakeholder-company
relationships as the stakeholders lose their trust in the instruments measuring the
application of CSR in the companies. A conceptual approach was adopted to fulfill the
objective of this research incorporating past empirical research to support the studied
literature. Findings indicate that among all the cases analyzed, discrepancies have been
identified and he assessment criteria used, including discourse, supply chain,
transparency, control and inclusivity, facilitate in developing standards and enhance
legitimacy.
Raynolds, Murray and Heller (2007) analyzed the growth of the private regulatory
efforts made with the objective of improving social and environmental sustainability in
the coffee sector. Third-party certifications playing a major role in this sector were
compared including fair trade, Utzkapeh, Rain forest Alliance, Organic and Shade/ Bird
Friendly initiatives. Arguments were raised in this research stating that efforts to promote
such private certifications in the context of social and ecological ground would be
challenged by present forces who seek to keep the current standards concrete. Findings
indicate that this difficulty to implement such private certifications can reduced if private
regulations work in conjunction with public regulations in order to improve
environmental and social sustainability.
Pagell, Wu and Wasserman (2010) through a theoretical sampling approach
examined the adoption and application of kralgic’s supply chain management model
which emphasized focus on technology, risk and globalization. The concept of this
purchasing portfolio, as an effective tool for practitioners, was well adopted by a large
number of supply chain induced organizations and in the literature of supply chain
management it is considered a significant tenet. Recent investigations, however,
identified that in the case of sustainable sourcing there has been a shift in supply chain
management practices. The shift shows that sustainable supply chain management leaders
are organizing their purchase portfolios in ways other than those suggested by Kralgic.
Leveraged commodities were being purchased in a manner more in line with the
requirements of strategic suppliers. A modified model of the purchasing portfolio has
been derived using an inductive approach to give a description of the shifting phenomena
enabling it to be used as a tool for facilitating SSCM.
Gold, Seuring and Beske (2009) through content analysis have aimed to identify
the key driving factors for attaining competitive advantage. Sustainable supply chain
management practices adapted by organizations with the objective of improving and
creating inter-organizational resources are assessed. The inter-organizational resources
are valuable for achieving sustainable competitive advantage by means of collaboration
focused mainly on environmental and social problems. In the presence of resources-based
and relational capacities the supply chain management, which is partner focused, gets
influenced and converts into core competences with respect to the competitive shift from
‘inter-firm’ to ‘inter-supply-chain’ level. Strategic collaboration is important for attaining
competitive advantage as regarded by the ‘supply chain management collaborative
paradigm’ and also synergistically influences other key areas of performance including
environmental, economic and social performances.
2.3.5 System Integration
Prajogo and Olhager (2012) investigated the level of information and material
integration, employed by practitioners and observed by researchers, to facilitate supply
chain integration in order to improve supply chain performance. Long-term supplier
relationship is examined to analyze its effect on integration. The data was collected from
232 Australian companies. Through the use of structural equation modeling, the
relationship between variables was examined. Findings indicate that operational
performance is highly affected by logistics integration. Both information sharing and
information technology capabilities positively and significantly affect logistics
integration. Indirect and direct effects of long-term relationships on performance have
been identified with the indirect effect mediating through logistics and information
integration.
Cao and Zhang (2011) investigated the efforts of firms in employing better supply
chain collaboration due to prevailing uncertainties in order to provide greater support for
the knowledge and resources of customers and suppliers linked to them. Revealing the
impact of supply chain collaboration on firm performance was the goal of this research
alongside identifying the paradigm shift associated with collaborative advantage and the
nature of supply chain collaboration. The relationships analyzed include supply chain
collaboration with collaborative advantage (intermediate variable) and firm performance,
collaborative advantage with firm performance, and firm size is used as a moderating
measure. The data was collected from 211 respondents. Statistical tests such as
confirmatory factor analysis and structural equation modeling were to analyze the data
and evaluate the results. Findings indicate that supply chain collaboration has a positive
effect on collaborative advantage and ultimately on firm performance. Firm size, as a
moderating variable, has a complete mediating effect between collaboration and
performance in the case of small firms and a partial mediating in the case of medium and
large firms.
2.3.6 Trust
Nyaga, Whipple and Lynch (2010) investigated the nature of relationships based
on collaborative activities among buyers and suppliers using structural equation modeling
to examine the characteristics of these relationships from the perspectives of both buyers
and suppliers. The achievement of flexibility, competitive edge and efficiencies is the
main driving factor for companies to establish effective collaborative relationships. It is
also unknown whether the costs associated with the establishment are lower as compared
to the benefits obtained. After analyzing the perceptions of buyers and supplier in terms
of these relationships, both perceptions are compared using testing involving invariance
to explain the relational and economic perspectives of both parties and how they vary.
Findings indicate that Commitment and trust can be achieved with the appropriate
collective application of information sharing, dedicated investments, and joint
relationship efforts. Results from the two separate models show that suppliers focus more
on leveraging ‘information sharing’ and ‘joint relationship efforts’ in order to protect

their transaction specific investments while buyers are heavily concerned about
relationship outcomes.
Cai, Jun and Yang (2010) conducted this research in china focusing on the
institutional environments of companies and the effects of such environments on
integrating information and trust enhancement among suppliers and buyers. Through the
use of structural equation modeling, a sample of 398 Chinese companies, involved in
manufacturing, was analyzed to identify the relationships between the salient aspects of
institutional environments (i.e. Government support, guanxi and legal protection) and
trust followed by the analysis the relationship trust has with collaborative planning and
sharing of information. As indicated by results, trust is positively and significantly
affected with greater presence of government support and higher importance placed on
Gaunxi. Subsequently, trust has shown positive and significant relationships with
collaborative planning and sharing of information. Other relationships analyzed showed
positive effects of Guanxi on information sharing, and government support on
collaborative planning as well as information sharing.
2.3.7 Supply Chain Transparency
Greer and Purvis (2016) through this qualitative study attempted to investigate
and identify the extent of human trafficking being done in the state of California and the
legislative measures being taken to prevent it. Previously, human trafficking was highly
associated with prostitution as governments did not pay much attention towards other
forms of this organized crime but presently, due to intervention of many interested and
welfare concerned groups investigation has further expanded in order to identify more
significant categories of this crime unit such as forced labor. Due to the globalization
effect in supply chains, human trafficking to facilitate organizations seeking cheap labor
has grown significantly. The current legislation of California is working to improve the
condition by communicating with labor providing countries by increasing the
transparency levels within the supply chain through establishing standards for carrying
out any form of labor related transactions. The California transparency in supply chains
act (2010) was written to accomplish such objectives. The smoot-Hawley tariff act of
1930 was passed to prohibit the entry of any forms of products and/or services,
manufactured or delivered through the use of forced labor in the country. It can be
concluded that in order to fight organized crime responsible for human trafficking
policies should be put in place to condemn corporations using forced labor and that the
consumers be given the appropriate information regarding the manufacture or provision
of goods and services they are provided by corporations.
Bastian and Zentes (2013) used PLS regression and correlation to identify the
effects of the variables; disintermediation, country complexity, formalization, third-party
integration and supply chain communication on supply chain transparency followed by
the effect of supply chain transparency on social performance, ecological performance,
Long-term relationships and operational performance. Results indicate that
Disintermediation, country complexity and formalization are strong predictors of supply
chain transparency while third party integration and supply chain communication are
reasonable predictors of supply chain transparency; however the collective effect of all
five predictors is important for influencing supply chain transparency. All performance
measures analyzed were positively affected by supply chain transparency indicating
transparency as key contributor of performance. The responses of this research were

limited as only highly sophisticated companies were approached with knowledgeable
professional human resource. The results might show different, if not the opposite,
interactions between variables.
Aggarwal and Jorion (2012) examined the benefits and costs of transparent hedge
fund returns towards investors. The study analyzed the effects of managed accounts
intervention in hedge funds. Among the types of transparencies analyzed were the private
form and not the public form. It has been indicated that funds under managed accounts
provide better transparency to investors and are thoroughly screen by investors as they
function alongside regular accounts. The difference between the indexes of the two
parallel accounts indicates the performance of the funds under managed accounts. The
data used was collected from Tremont Advisory Shareholder Services (TASS) and
covered a period of 16 years (i.e. January 1994 to December 2009). The data collected
incorporated total monthly returns less Management and incentive fees, and Assets under
Management (AUM). The tests used for the analysis included descriptive statistics,
weighted averages, pooled cross-sectional regression analysis, and a test used for
calculating the probability of hedge fund selection called Heckman selection Model. The
results were based on the following dimensions:
 Performance
 Selection bias
 Risk
 Fraud prediction
Performance results showed that both the funds, ones with MACs and the ones
without MACs, had close performance levels which were slightly fluctuating. The
selection bias results did not show support for the hypotheses as no relationship was
found. Risk was found to be highly associated with funds which did not accept MACs
and vice versa for the ones which did accept MACs. Fraud was also highly associated
with funds which did not accept MACs as compared to the funds which did.
Trienekens, Wognum, Beulens and van der Vorst (2012) investigated the various
aspects which have influence over supply chain transparency in the food supply chain as
demand for the ever diversifying food industry, in terms of product categories, has been
increasing resulting in globalized markets driven by mass customization. This has had a
significant impact on flow of raw materials (ingredients). Alongside the upward shift in
demand, animal welfare, product safety, environmental impact and other such
precautionary measures were highly demanded by governments and consumers alike.
Findings indicate that the factors which have influence over supply chain transparency
include quality and safety standards, governmental mechanisms and information
exchange. Also, the information system functions and I.T applications have been
identified.
2.3.8 Relationship Performance
Costello (2013) used descriptive statistics, correlation and regression for this
study to analyze the effects of information asymmetry and holdup concerns on contract
design. The sample included 1500 random contracts from 4927 available contracts. The
duration of the contracts was hypothesized to be influenced, as suggested by the initial
model design, by information asymmetry, financial covenant, exclusivity, trade credit,
audit certification, firm controls and RSI. Alongside analyzing the determinants of
contract duration the determinants of financial covenants were also analyzed using the
same model with duration and covenants swapping places. Findings indicate that
asymmetric information has an adverse effect on contract duration resulting in short term
contracts and long-term contracts often lead to financial covenants due to the
involvement of relation specific assets. Costly direct monitoring and the products
exchanged being specific in nature resulted in firm covenant restrictions.
Ramanathan and Gunasekaran (2012) with the use of confirmatory factor analysis
and structural equation modeling analyzed a data set comprising 150 usable responses out
of 182 from the customers of a textile firm. This research was conducted to analyze the
contribution of collaborative decision making among supply chain partners, collaborative
supply chain process execution and collaborative planning on collaboration success.
Findings indicate that all three collaborative factors influence the supply chain function
towards success with collaborative execution, planning and decision making positively
affecting success, and the combination of success and execution positively affecting
collaborations in the future. It is implied that long-term collaborative engagement can be
undertaken based on the prevailing collaborative success. This may help in improving
investment decisions.
2.3.9 Operational Performance
Green, Zelbst, Meacham and Bhadauria (2012) with the goal of contributing to
the initial efforts of analyzing the impact of green supply chain management practices in
an empirically investigative way and how this impact effects performance conducted this
research. A secondary goal was to examine green supply chain management practices
empirically, form theories based on the examination and develop a model which explains
the effects of such practices on performance. Partners, including both customers and
supplier, and their links with manufactures, employing green supply chain management
practices, to enable an environmentally stable supply chain are key components of this
model. Structural equation modeling was used to identify and represent the effects of
GSCM practices driven variables on organizational performance, they data was collected
from 159 respondents. Findings indicate that GSCM practices improved economic and
environmental performance positively effecting operational performance. The net effect
was a positive organizational performance. The research was exploratory in nature as this
form was necessary and it provides Managers and practitioners with a framework for
employing GSCM practices to synergistically improve organizational performance.
Ou, Liu, Hung and Yen (2010) investigated within the information related
industries in Taiwan, through the use of structural equation modeling, the relationships
among contextual internal supply chain management factors, external integration of
suppliers, customers and firms, and firm performances in terms of various dimensions.
The analysis of these relationships was done to identify the impact of supply chain
management practices on various financial performance and non-financial performance
matrices. Operational, customer satisfaction and financial were the performance levels
measured. The contemporary situation during this research indicated the presence
competitive global pressures burdening firms and influencing them to resort to heavy
supply chain management practices in order to keep pace with competition. The internal
contextual factors of firms were positively affected by management of external customer-
firm-supplier relationships due to which overall firm performance was also positively
affected. Results showed that operational performance was favorable as a net result of the
former mentioned managerial application and improvements thus enhancing financial

performance and customer satisfaction. This research has managerial implications
suggesting better ways of employing supply chain practices to achieve synergistic
performance enhancements.
2.3.10 Supplier Performance
Prahinski and Benton (2004) in this research investigated the effects of supplier
perception of buyer-supplier collaboration on supplier performance. Structural equation
modeling was used to analyze the relationships between variables; buyer-supplier
relationships and supplier performance was tested against supplier evaluation
communication strategy. While buying firm’s commitment, cooperation, operational
linkages, supplier’s commitment and supplier’s performance were tested against buyer-
supplier relationship levels. Supplier perceptions about their own evaluations were
influenced through the usage of supplier development programs. The effects of this
influence on supplier performance were analyzed. The data was collected from 139 direct
suppliers of automotive parts in the United States of America. Findings indicate that
supplier perception is not influenced by the type of communication the buying firm
establishes with the suppliers, although, supplier commitment has a strong influence on
supplier perception. Commitment is directly influenced by cooperation and commitment
from the buyer’s side.
Krause, Scannell and Calantone (2000) while focusing on manufacturing industry
have investigated the effects of buyer involvement in supplier functions and training
provision through various supplier improvement programs. Two models were designed to
examine the effects on supplier performance, one was the direct impact model and the
other was mediated impact model. Variables incorporated in the direct impact model
included ‘supplier assessment, direct involvement, supplier incentive and competitive
pressure. The mediated impact model included ‘direct involvement’ as a mediating
variable. The methodology used to conduct the study incorporated the internalization
theory, resource based theory and structural equation modeling. The variables used
assessed supplier capabilities and their responsive levels to buyer requirements, the
effects of buyer involvement in supplier operations to calibrate their functions for
meeting buyer requirements, incentives provided to supplier to motivate and help
improve their performance and the competitive pressures which effect supplier
performance. The effects examine may have been positive or negative. Findings indicate
that direct buyer involvement in supplier activities helps improve performance and is
critical for lining up supplier operations with buyer requirements.
2.3.11 Technical Performance
Parmigiani, Klassen and Russo (2011) highlighted stakeholder exposure through
an investigation of the level of accountability and control firms and stakeholders share
among each other. Firms are held accountable by their stakeholders due to the
environmental and social outcomes, mostly adverse, resulting from the usage of the
products marketed by them. Issues such as human rights violations or the toxic nature of
products begin to surface as the usage of such hazardous products increases or the
employment practices of companies become clearer to the public. A combination of
elements from supply chain factors such as stakeholder management, supply chain
configuration and capability management were used to form an integrative model which
was initiated from a responsive versus efficient SC framework. Accountability and
control indicate stakeholder exposure and how it affects the relationships between supply
chain configuration, performance and capabilities. Findings indicate that environmental,
social, technical and relational capabilities are determined by stakeholder exposure and
affect environmental and social outcomes. Room for further research lies in formulating
ways in which SC theories should be advanced in order to include stakeholders external
to organizations, make pitfalls visible, explain strategies and improve performance
prediction.
Modi and Mabert (2007) investigated the level of effort organizations go through
in terms of supplier development in order to improve supplier performance. Competitive
edge, in today’s business environment, can be achieved through the effective use of
resources available to companies. Enterprises, acquiring inputs through supplier
networks, face quality and cost fluctuations with respect to the supplier networks they
come in contact with. The data collected comprised of 215 experiences involving supplier
developments. The variables analyzed include competitive pressure, evaluation and
certification, future business incentives as exogenous variables which were hypothesized
against operational knowledge transfer. The direct impact of operational knowledge
transfers on supplier performance and an indirect impact, with collaborative
communication as a mediating variable, were hypothesized. Bilateral top management’s
involvement was also considered in the hypothesis. Findings indicate that certification
and evaluation play a key role as supplier development prerequisites and collaborative
inter-organization communication supports organization’s efforts in improving supplier
performance.
2.4 Conceptual framework (Proposed Model)
Figure 1: The Research Framework
The Hypotheses proposed have been summarized in figure 1 which shows the directional
effects of researchable propositions being examined, i.e. positive effect of all drivers on
supply chain transparency and supply chain transparency having positive effects on all
performance measures. The model has been adapted from a previous research done by
Bastian and Zentes (2013) with the exception of two additional indicators predictors for
transparency, System integration (Prajogo and JanOlhager, 2012) and Trust (Humphreys
et al., 2011), and two additional performance measures, Supplier performance
(Humphreys et al., 2011) and Technical performance (Inemek, 2010), being predicted by
supply chain transparency.
Chapter 3
Research Methodology
3. Research Methodology
3.1 Introduction
This research is conducted to investigate the relationships existing among supply
chain transparency and various functions employed to improve performance functionality
and effect transparency in the process. The methodology chosen for this research is
explanatory because the measured variables are caused by the latent constructs and errors
may incapacitate the latent variables form explaining the construct fully therefore
depicting the model’s reflective nature (Hair et al., 2010). This chapter comprises of the
description of variables used in the research, the approach used to conduct the research,
research design, characteristics of the instrument used for data collection, data collection
procedures, respondent particulars, hypothesis validation statistical techniques etc.
3.2 Research Purpose
The primary objective of this research is to validate the effects of constructs
highlighted (Disintermediation, formalization, supply chain communication, third party
integration, system integration, trust) on supply chain transparency and how transparency
levels affect various performance measures (Relationship, operational, supplier and
technical performances) as proposed.
3.3 Research approach
The theory relevant to the research was identified and various literatures were
reviewed to further develop foundational support for that theory (Carter & Rogers, 2008)
in order to aid the formation of a relational context between supply chain transparency
and sustainability in terms of the establishment of proper channel coordination affecting
performance.
From the two broad categories of research approaches available, qualitative and
quantitative, in which qualitative research requires extensive field work (consistent
observation, document screening, in-depth interviews etc.) in order to identify insightful
information about the research topics to answer the research questions (Patton, 2005)
followed by the compilation of such raw information into comprehendible narratives and
quantitative research which incorporates more rigorous forms of hypothesis assessment
techniques including likert scale induced surveying, validation of survey reliability and
relationship identification of variables examined through statistics (Pekrun et al., 2002),
quantitative research methods were used for this research, data collection is done using
item induced questionnaires measuring various managerial perceptions of their own
organizations and the industry as a whole. Using quantitative approaches provides the
advantage of enabling the identification of a more general picture of a population through
sampling (Kelle, 2006). The use of statistical software, SPSS and Smart PLS, was
employed to store the data and analyze the relationships among variables.
3.4 Research design
Quantitative research designs are selected with respect to the nature of variables,
data, type of respondents, desired analysis, result extraction requirements etc. Research
designs include categories and sub-categories of analytical tools. Experimental, causal
comparative and descriptive are the broadly available categories in quantitative research
(Williams, 2007) Non-experimental research designs comprise correlation and
descriptive (Sousa et al., 2007).
The research design used this thesis is correlation as the data set comprises
quantitative variables which are first explored to identify factors (Sousa et al., 2007). The
objective is to examine the effects of variables and constructs among one another through
a set of specific statistical techniques and models and establish the existence of
relationships (Johnson, 2001, Williams, 2011).
Correlation is a technique useable complementarily with causal comparative as
well as experimental research techniques (Williams, 2011) which can be used to
distinguish the two characteristics between groups subject to research. There still exists
some conflict among educational authors in the form of disagreement concerning the
statuses of both correlation and causal comparative research designs (Johnson, 2001).
3.5 Research instrument
The survey instrument used in this research has been adopted from various studies
supporting the measurement requirements for this study. The instrument comprises of 51
items measuring managerial perceptions on a 5 point likert scale. It has been structuredin
a format categorizing the constructs making it clear and comprehendible for the
respondents. Each item is phrased as per the respondents’ perceptions making it simple
for the respondents to answer according to their level of agreement with each statement.
A five point likert scale for each item accompanies each statement (1 = Strongly
Disagree, 2= Disagree, 3= Neutral, 4= Agree, 5= Strongly Agree). The amount of items
for each variable, with respect to the source, is as follows (Table 1):
Table 1 Research Instrument
Variables No. of items Sources Sample Items

Disintermediation 2 items Bastian & Zentes. "There are no
2013 unnecessary or
unproductive
channels or
checkpoints
throughout the
supply chain."
Formalization 5 items Bastian & Zentes. "We have a written
2013 code of conduct
which is mandatory
for the supplier"
Third party 2 items Bastian & Zentes. "In order to comply

integration 2013 with technical and
engineering
requirements in the
supply chain we
closely cooperate
with independent
organizations"
Supply chain 5 items Bastian & Zentes. "Information
communication 2013 exchanged with the
supplier is reliable"
System integration 6 items Prajogo & "There are direct

Olhager, 2012 computer-to-
computer links with
key suppliers"
Trust 5 items Humphreys et al., "The suppliers keep

2011 our interests in
mind"
Supply chain 5 items Bastian & Zentes. "The supply chain

transparency 2013 of our products is
very transparent"
Relationship 5 items Bastian & Zentes. "A long-term

performance 2013 relationship with
the supplier is
guaranteed"
Supplier 5 items Humphreys et al., "Percentage of

performance 2011 downtime due to
supplier errors is
bearable"
Operational 6 items Bastian & Zentes. "The products

performance 2013 acquired are
compliant with
quality
requirements"
Technical 5 items Inemek. 2010 "Research and

performance development
capability is
progressive"
3.6 Face and Content Validity
Survey instruments, in order to be effective for research, are discussed with
relevant officials at meetings to make them clearer and valid for respondents (Tan et al.,
1999). Evaluation is mostly done with the help of research scholars with experience
relevant to the subject of research (Rai et al., 2006). In order to validate the face value
and content relevance the context of the instrument was discussed with supply chain
officials. The instrument was approved by three officials who included two supply chain
officials from the automotive industry and one from a separate industry.
3.7 Target Population
A specified target population with respect to a particular region is chosen to
conduct restricted forms of research (Kwon & Suh, 2005). Certain professionals are
selected as valid respondents to generate the desired results, without misrepresentation,
while staying in line with the research objective (Kannan & Tan, 2005, Sahay & Mohan,
2003). The target population approached for this thesis comprises of officials
(specifically supply chain officials) from the automotive industry in Pakistan (Karachi).
3.8 Sample Size
The sample size used in a reasonably similar model was 131 respondents (Bastian
& Zentes, 2013). Through survey a sample of 225 respondents was obtained which
included supply chain officials, managerial staff, technical staff, departmental heads, top
level management etc. who shared common association with the automotive industry.
Sample sizes greater than 200 are considered a comfort zone in the context of past
research and can fall from 100 to 50 if the model is of a simple structure (Iacobucci.
2010). As per the method (Figure 2) laid down by Tabachnick & Fidell (2007) the sample
size required for this research is roughly greater than 110 respondents.
Figure 2: Sample Size Formula
N >50+ 8 m
Where N is the number of respondents and m is the number of independent
variables. The total number of independent variables, including supply chain
transparency as an IV for the performance measures, is 7. Therefore 50 + 8(7) = 106.
3.9 Sampling technique
Data collected to be used in research is commonly gathered through five sampling
techniques including convenience sampling, stratified sampling, systematic sampling,
cluster sampling and random sampling (Zhu et al., 2012, Gimenez et al., 2012, Sukati et
al., 2012, Lee & Fernando, 2015, Caniato et al., 2013).
The sampling technique used for this thesis is convenience sampling as new
dimensions are being explored and the focus is on a particular industry where
respondents are easily accessible through online as well as face to face survey.
Convenience sampling is done to fulfill the focal requirements of a research as the
objective is specific to a particular operation (Zhu et al., 2012) as well as aiding
exploratory research (Sukati et al., 2012).
3.10 Statistical techniques for data analysis
The data gathered is screened through SPSS to detect missing data as well as
multi and uni-variate outliers as it utilizes effective statistical methods, such as the
mahalanobis distance, chi-square, Z-score calculation to carry out such tasks (Hair et al.,
2010, Leech et al., 2005). Irregularities will be removed if detected. This thesis is
composed of variables developed through items from past studies which included both
reflective and formative scale items; therefore, Partial least Square (structural equation
modeling) through Smart PLS 3.2.4 (Bastian & Zentes, 2013) is used to statistically
validate the instrument and analyze the relationships among variables. PLS-SEM is
utilized because it is an approach based on regression, has the ability to work with
smaller sized samples as well as its capacity to maximize the dependent construct’s
variance explained as compared to co-variance based SEM which makes the analysis
more predatory rather that explanatory by producing a theoretical matrix comprising of
co-variances (Hair et al., 2011). It should be noted that this thesis involves the use of a
reflective scales for structural model analysis. PLS-SEM also provides multiple tests for
validity levels of the model (Becker et al., 2012) as well as the bootstrapping function
which re-samples the original data set into a much larger data set to check significance
(Hair et al., 2014).
3.11Operational definitions of variables
This variable measure the amount of intermediaries present in the supply chain
that are contributing productively in carrying out the supply chain function.
Disintermediation is a course of action undertaken to minimize wasteful cost activities
(Niziolek et al., 2012) and simplifying the supply chain (Bastian & Zentes, 2013)
3.11.2 Formalization
This is a measure of the level of standardization implemented at each supply
chain member’s operational premise and will help in indicating the commonness of
standardization among all supply chain members. Compliance with international

standards enables more systematic supply chain interactions evidenced by documentation
(Heras-Saizarbitoria & Boiral, 2013) therefore, complexity issues can be tackled with the
with the proper application of formal standards (Bastian & Zentes, 2013).
3.11.3 Third-party integration
This will measure third party involvement. Any third party providing support for
the supply chain function will be considered by the respondents with respect to the
support they provide in facilitating the supply chain function. Integration with recognized
third parties enhances the legitimacy for organizations through proper certifications
(Raynolds et al., 2007) and also plays a key role in indentifying innovative opportunities
through consulting services (Bastian & Zentes, 2013).
3.11.4 System integration
This is a measure of the Information technology implementation in the
organizations and will identify the intensity of implementation in terms of technological
integrity to specialized tailor made software implementation. Technological integration in
organizations is done to enhance information flow with the objective of creating better
logistics integration (Pragojo & Olhager, 2012). Technological development therefore
acts as an activity which supports logistic functionality (Prajogo et al., 2016).
This is a measure of the level of collaboration among supply chain members and
the sophistication levels in collaboration with respect to the efforts made in standardizing
collaboration. Supply chain communication is a key aspect involved in developing
collaborative strategies for maintaining competitive advantage (Gold et al., 2009) and is
supported by information technology and communication practices to create routine
based operations (Bastian & Zentes, 2013).
3.11.6 Trust
This is psychometric measure of the level of trust buyers place in supplier and
how they perceive their suppliers in trusting them. Greater commitment of resources
among buyers and suppliers indicated high levels of trust among them (Nyaga et al.,
2010). Trust also depicts better protection of investments which are specific transactions
between buyers and suppliers (Cai et al., 2010)
3.11.7 Supply chain transparency
The dependent variable for the former defined variables, it will measure the level
of transparency achieve with respect to information flow. Communicating pre-define
information systems, legal procedures and standards pertaining to quality etc. throughout
the supply chain indicates the presence of transparency (Trienekens et al., 2012) which
helps reduce conflicts among supply chain members resulting from opportunistic
behaviors (Bastian & Zentes, 2013).
3.11.8 Relationship Performance
Dependent on transparency levels, this variable will measure the prevailing
commitment level among supply chain members and their will to continue this
commitment in the long run. Collaborative engagements among supplier and buyer, is
successful, result in long term relationships (Ramanathan & Gunasekaran, 2012) enabling
more identification of areas regarding performance evaluation and supply chain processes
(Bastian & Zentes, 2013).

3.11.9 Operational performance
This will measure the basic performance metrics of the organization being
effected by transparency including cost effectiveness (Green et al., 2012), productivity
etc. and is an indication of organizational responsiveness to supply chain requirements
(Bastian & Zentes, 2013). It is dependent on transparency.
3.11.10 Supplier performance
This will measure the supplier productive input in facilitating the organization to
help improve its supply chain. The ability to meet target requirements and achieving
goals in a timely manner is an indication of supplier performance (Krause et al., 2000)
and are characteristics of suppliers highly committed towards fulfilling customer
requirements (Joshi, 2009).
3.11.11 Technical performance
This is a measure of technical improvements resulting from supply chain
transparency and the company’s intrinsic abilities defined through innovative
competitiveness with respect to industrial changes. The effective utilization of science
and technology by organization is a display of their technical capabilities (Parmigiani et
al., 2011) which is further utilized in effectively operating information systems within
inter-organization supply chain networks (Ravichandran et al., 2005).
3.12 Ethical considerations
The design of research can be structured to protect the privacy of respondents
(Picou, 1996). The confidentiality of respondents has been protected in this research and
any organization specific or personal information has not been disclosed as only non-
private information is allowed for disclosure as per litigation (Cecil & Boruch, 1988) and
protecting the privacy of respondents is the responsibility of the principle investigator or
researcher (ASA, 1992). All the respondents were asked to fill out the questionnaires as
per their own perceptions of the industry in which they operate. Generalizing the results
from a broad spectrum of industry specific perceptions will enable the beneficiaries
(automotive industry) to consider strategic options through this research.

Chapter No 4
Data Analysis
4. Data Analysis
4.1 Introduction
The hypotheses, by the use of software, SPSS and Smart PLS 3.2.4, formulated
and proposed in chapter 2 have been analyzed in this chapter, using elaborative statistical
techniques. Statistical analysis is a core part of quantitative research and is carried out to
validate the data collected in terms of data composition, reliability, instrument
authenticity, underlying variable relationships, model fit etc (Hair et al., 2010, Leech et
al., 2005). The raw form of the data will be screened using SPSS by carrying out missing
value analysis, reliability testing and outlier detection, both univariate and multivariate.
Data screening will be followed by Partial Least Square regression and bootstrapping
using Smart PLS 3.2.4 to assess model fit, validity and variable relationships.
4.2 Reliability (Pilot Study)
The reliability of the raw composition of data is check through Cronback’s Alpha,
a measure used to gauge the reliability of an instrument as a whole or the individual
constructs within (Hair et al., 2010) through the identification of consistency in the data
set as well as uni-dimensionality and homogeneity (Tavakol & Dennick, 2011). The
output values for Cronbach Alpha range from 0 to 1 with values over 0.7 considered as
reliable (Hair et al., 2010, Leech et al., 2005). The initial value of the alpha is 0.896 based
on the raw data distributed over 51 items and shows reliability as it is over 0.7 and closer
to 1.
4.3 Data Screening
No missing data was detected in the entire dataset and 218 responses were usable
from a total of 225 responses collected due to the detection and removal of 7 multivariate
outliers .Only 4 univariate outliers were detected in the item SCC3 (supply chain
communication; question 3) which were replaced by the closest value in the item column.
4.4 Descriptive analysis and interpretations
Demographic profiling of the respondents was done under 3 categories which
were broad in terms of the characteristics analyzed through them (Table 2). The results
under the first category show that most of the respondents were middle level managers,
i.e. 111 out of 218 (50.9 %), followed by lower level mangers which were 69 (31.%) out
of 218 and the least number of respondents were top level managers, i.e. 38 out of 218
(17.4%). Results under the category of company size showed that most of the companies
analyzed comprised of a more than 300 workforce, i.e. 162 out of 218 (74.3%)
companies, followed by companies comprising of work forces ranging from 100 to 200,
i.e. 50 out of 218 (22.9%). Only a few companies comprised of a less than 100 work
force, i.e. 6 out of 218 (2.8%). Among the two types of companies approached for this
research vendors were greater in number, i.e. 173 out of 218 (79.4), followed by OEMs
which were 45 out of 218 (20.6%). The lower management was well informed of the
aspects relevant to supplier, operational and technical performances as that have
reasonable interactions with higher management.

Table 2 Demographic Profiles
Description (Sample Size = 218) Frequency Percentage

Designation Top Management (CEO, CFO, CIO, etc) 38 17.4
Middle Management (GM,RM, DM,etc) 111 50.9
Lower Management (Managers, etc) 69 31.7
Company Size Less than 100 6 2.8
100 to 300 50 22.9
More than 300 162 74.3
Company Type OEM 45 20.6
Vendor 173 79.4
Source: Authors' estimation
4.5 Model Validity
Based on the results generated from SmartPLS 3.2.4 the model generated, based
on the data collected, was validated and checked for reliability followed by the
examination of the proposed hypotheses (Ringle et al.,2015).
4.5.1 Model measurement
Three main measures of model validation were carried out to validate the
constructs and check for model reliability including content validity followed by
convergent validity as well as discriminant validity. The following sections describe the
statistical aspects and results based on those aspects of the mentioned validation outputs.
On a side note, third party integration was removed from the overall analysis because it
was interfering with model validation and was not meeting two key criterions. Evidence
of this is discussed in Convergent and Discriminant validity.
4.5.2 Construct Validity
The PLS algorithm function in Smart PLS is applied to the data set and produces
various outputs based on the data. Content validity is examined through a table generated
titled cross loadings and is a depiction of Confirmatory Factor Analysis (CFA) which is
Co I D F O R S S S S T T
ns t I R P P C C I P P R
tr e M C T
uc m The Drivers of supply chain transparency and its effects on 61
ts s performance measures in the automotive industry of Pakistan
DI D 0
vital for validation. I . Strong item loadings on
1 8
5
constructs other than the 8 one they are meant to
D 0
represent warrant item I . elimination and are
2 8
8
therefore eliminated implying that strong
0
FR F 0
loadings of items on M R . their relevant constructs
M 8
is a representation of 1 2 strong content validity
6
F 0
(Chin, 1998, Hair et al., R .
2013) which is the case
M 8
with the current data. It 2 4 is therefore evident that
3
the concept relevance is F 0 prevalent (Tables 3 &
R .
M 7
Appendix: Sec 4, Table 3 2 3).
5
Table 3 - Factor F 0 Analysis Results
R .
M 8
5 0
3
O O 0
4.5.3 P P . Convergent validity
3 8
The validity 6 levels achieved due to
1
O 0
the collective conceptual P .
measurement
4 8
convergence of a group 6 of items is called
2
convergent validity O 0 (Hair et al., 2013). Three
P .
5 8
measures collectively 7 contribute towards
6
identifying convergent O 0 validity levels; One,
P .
6 8
statistically significant and strong factor
1
6
loadings greater than RP R 0 0.7, two, average
P .
variance extracted 1 6 greater than 0.5 for
8
6
every construct in the R 0
analysis is considered
P .
2 7
5
5
R 0
P .
3 7
acceptable (Fornell & Larcker. 1981), third and last, composite reliability measured for
each construct should be at 0.7 or above. All of the assumptions have been strongly met
(Table 4). As mentioned earlier third party integration was removed from the overall
analysis. This measure was taking because it was showing low levels of composite
reliability and was therefore interfering with overall convergent validity (see appendix
Section 8, Table 1.). It could have been kept for individual item analysis but that doesn’t
fall in line with the research objective (Conti et al., 2016, Fridin & Belekopytov, 2014)
Table 4–Convergent Validity

Constructs Items Loadings CR AVE
DI1 0.858 0.86
DI 0.755
DI2 0.880 0
FRM1 0.826
FRM2 0.843 0.87
FRM 0.641
FRM3 0.725 7
FRM5 0.803
OP3 0.861
OP4 0.862 0.91
OP 0.729
OP5 0.876 5
OP6 0.816
RP1 0.686
RP2 0.755
0.86
RP RP3 0.738 0.558
3
RP4 0.758
RP5 0.793
SCC1 0.775
SCC3 0.836 0.87
SCC 0.638
SCC4 0.827 5
SCC5 0.753
SCT1 0.893
SCT2 0.890 0.89
SCT 0.677
SCT3 0.866 1
SCT4 0.606
SI4 0.810
0.83
SI SI5 0.746 0.621
1
SI6 0.807
SP1 0.689
0.80
SP SP2 0.739 0.581
5
SP3 0.850
TP2 0.708
0.78
TP TP3 0.649 0.547
1
TP4 0.847
TR2 0.817
0.84
TR TR3 0.903 0.641
1
TR4 0.663
Source: Authors' Estimation
4.5.4 Discriminant Validity
The collective capacity of a set of items enabling them to discriminate a variable,
represented by the items, from other variables, represented by other sets of items, is
called discriminant validity and, for this thesis, is measured through three quantitative
outputs generated by the PLS algorithm; one, difference between loadings of all items in
a construct, meant for the constructs, and cross loading with respect to non-relevant
constructs should be greater than 0.1 (Gefan & straub, 2005) and the loadings of all
construct relevant items on the relevant constructs should be strong (i.e. near 0.7 or
greater)(table 3), two, the Fornell and larcker criterion matrix representing the square
roots of all Average Variances Extracted (AVEs) in the diagonal should be composed of
a diagonal containing values greater than the other squared correlations in the matrix
(Fornell & Larcker, 1981) and three, values greater than 0.85, if present in the
‘heterotrait-monotrait ratio of correlations’ (HTMT) matrix, are considered unacceptable
and represent non-validity (Henseler et al., 2015) as HTMT is a representation of
estimated factor correlation and values significantly less than 1 indicate discrimination
between two factors (Henseler et al., 2016). Validity is prevalent as shown in tables 5 and
6. The inclusion of Third party integration was resulting in figures over 0.85 being
generated therefore; it was clearly not being discriminated from other items in the data set
because of its odd data structure and was interfering with model validity (See appendix
section 8, Table 2). This was the second model validity criterion being violated and
warranted the removal of Third party integration.

Table 5 - Correlations of Discriminant Validity

Construct FR
DI OP RP SCC SCT SI SP TP TR
s M
0.86
DI
9
0.23 0.80
FRM
9 0
0.48 0.29
OP 0.854
8 2
0.50 0.25 0.74
RP 0.479
1 2 7
0.42 0.19 0.49 0.79
SCC 0.507
9 7 9 9
0.52 0.49 0.55 0.54 0.82
SCT 0.568
1 9 0 5 3
0.38 0.23 0.42 0.42 0.48 0.78
SI 0.406
3 5 7 4 6 8
0.37 0.20 0.39 0.41 0.43 0.39 0.76
SP 0.407
0 3 9 4 4 0 2
0.41 0.13 0.42 0.43 0.47 0.49 0.38 0.73
TP 0.386
2 7 9 0 7 0 7 9
0.04 0.13 - 0.09 0.06 0.34 0.07 0.11 0.11 0.80
TR
5 7 0.073 7 8 4 7 2 2 1
Source: Author's Estimation
Table 6 - Heterotrait-Monotrait Ratio (HTMT) Results

FR T
Constructs DI OP RP SCC SCT SI SP TP
M R
DI
0.31
FRM
8
0.62 0.33
OP
4 6
0.66 0.30 0.56
RP
7 7 0
0.57 0.23 0.60 0.61
SCC
5 7 0 5
0.68 0.60 0.66 0.66 0.65
SCT
4 2 3 4 9
0.55 0.30 0.51 0.57 0.56 0.62
SI
1 6 5 6 8 6
0.56 0.27 0.54 0.53 0.58 0.58 0.59
SP
2 7 3 8 1 5 2
0.64 0.18 0.51 0.62 0.61 0.65 0.72 0.63

TP
1 2 9 8 3 3 7 5
0.15 0.18 0.10 0.13 0.10 0.42 0.17 0.15 0.20
TR
3 2 9 8 4 9 2 6 4
4.6 Reflective Measurement and Structural Model
Standardized indicator loadings are about 0.7 with most loadings greater than 0.7
(Section 4.5.2, Table 2) indicating that indicator reliability is high and therefore
acceptable (Hulland, 1999). Each construct’s data build was defined by a composite
reliability greater than 0.7 as generated by statistical analysis indicating reliable internal
consistency as well as acceptable convergent validity with Average Variances Extracted
(AVEs) greater than 0.5 (Section 4.5.3, Table 4)(Bagozzi & Yi, 1988). Discriminant
validity, as defined by the Fornell-Larcker (1981) criterion is considered acceptable if the
AVEs of all constructs are greater than the construct’s squared correlation with all other
constructs which is the case with this data (Section 4.5.4, Table 5). Cross loadings of
each construct with items defining other constructs is less than the loadings of items
defining their relevant constructs (Appendix: Section 4, Table 2) indicating an acceptable
data set (Chin, 1998, Gregoire & Fisher, 2006). Therefore, the overall model
measurement has indicated an acceptable structural model.
4.7 The structural model and test of hypotheses
The test of hypotheses was followed by validation procedures and was carried out
through the use of PLS structural equation modeling (Ringle et al., 2015). PLS-SEM was
chosen due it relatively great potential for evaluating reflective structural models with
respect to other statistical techniques used for SEM (Hair et al., 2011, Henseler et al.,
2014) and supersedes other estimates based on approaches involving covariance. (Hair et
al., 2011, Hair et al., 2012). Bootstrapping was utilized followed by the application of the
PLS algorithm function on the data set (Efron & Tibshirani, 1986, Haenlein & Kaplan,
2004). Figures 3 and 4 are representations of the structural model.
Figure 3: SEM Output (Factor Loadings and Path Coefficients)

Figure 4: SEM Output (T-Statistics)
To measure the collective capacity of constructs in terms of variance explanation
R-Squared is the measure used which is another output generated by the PLS algorithm
function (Hair et al., 2011).Values near 0.26 are considered strong while values near 0.13
and 0.02 are considered mild and weak respectively (Cohen, 1988). Predictive relevance
of a statistical model is measured by a quantity known as Q-Squared, the criterion values
for Q-Squared are 0.02, 0.15 and 0.35 for weak, moderate and strong respectively (Chin,
1988, Henseler et al., 2009), predictive power can be identified by values greater than 0
and are high if the difference between R-Squared and Q-Squared is low (Hair et al., 2011,
F.Hair et al., 2014). From the values of the results generated it can be stated that
predictive power of the exogenous constructs (i.e. Predictors of Supply chain
transparency) is well above strong. The predictive power of supply chain transparency for
the performance measures is strong with respect to operational and relationship

performances (i.e. greater than the threshold of 0.26) and with respect to Supplier and
technical performances lies in the middle of the strong and mild thresholds (Table 7). The
predictive relevance for all the constructs being predicted is reasonable as the Q-Squared
values are greater than 0 and more than half the values of R-Squared. The greatest
predictive relevance is shown by Supply chain transparency with a value greater than
strong. The predictive relevance of operational and relationship performances is greater
than moderate and in the cases of supplier and technical performance it is greater than the
weak criteria.
Table7 - Predictive Power of the construct

R Square Q²
OP 0.322 0.228
RP 0.302 0.160
SCT 0.612 0.403
SP 0.188 0.100
TP 0.228 0.116
Source: Authors' Estimate
Guidelines provided for evaluating overall model fit suggest that a measure be
used known as ‘goodness of fit’ test as this test is considered a global fit measure
(Wetzels et al., 2009,Tenenhaus et al., 2004). Although as per latest guide lines the
goodness of fit measure is not suitable for every research using PLS (Hair et al., 2016).
The test involves the use of average communality (AVE) and predictive indicators (R-
Squared) to calculated model fit. The product of Average AVEs and Average R-Squared
is taken followed by taking the principle square root of the product (Tenenhaus et al.,
2005, Wetzels et al., 2009). The criterion values are 0.1, 0.25 and 0.36 as small, medium
and large respectively. The GOF value for this model is 0.459522 which is well above the
maximum criterion (Table 8 and Figure 5).
Table 8 - Average R-Squared and Average AVE

R
Average Variance Extracted (AVE)
Square
0.322 0.755
0.302 0.641
0.612 0.729
0.188 0.558
0.228 0.638
0.677
0.621
0.581
0.547
0.641
0.3304 0.638660399
Figure 5: Goodness of Fit Index
GoF =√ Average R 2∗Average AVE
GoF =√ 0.3304∗0.639=0.459522
Supportive results can be observed from the output values generated by the PLS
analysis. Due to the unreliable nature of Third party integration hypothesis 3 was
completely removed from the analysis (Fridin & Belekopytov, 2014) and is not
mentioned in the test result table. The Beta coefficient is a depiction of how much and in
what direction, positive or negative, a dependent construct will shift with a unit’s change
in an independent variable with every other quantitative aspect remaining constant (Hair
et al., 2010, Leech et al., 2005). ‘Disintermediation, Formalization, Supply Chain
Communication, System Integration and Trust’ have beta coefficients of 0.244, 0.307,
0.286, 0.179 and 0.257 respectively with p values less than 0.001 at the 0.001
significance level and T-Values greater that 1.9 indicating positive effects on supply
chain transparency while retaining significance. The effect of Supply chain transparency
is 0.568, 0.550, 0.434 and 0.477 on Relationship, Operational, Supplier and technical
performances respectively with p values less than 0.001 ant T-values greater than 1.96
indicating significance. Therefore all the hypotheses have been supported by the analysis
(Table 9).
Table 8 - Hypothesis Test Results

No Hypothesis Estimate S.E. T-Values F Square Remarks
1 DI -> SCT 0.244*** 0.053 4.655 0.116 Supported
2 FRM -> SCT 0.307*** 0.046 6.637 0.219 Supported
4 SCC -> SCT 0.286*** 0.055 5.226 0.155 Supported
5 SI -> SCT 0.179*** 0.047 3.816 0.062 Supported
6 TR -> SCT 0.257*** 0.060 4.323 0.167 Supported
7 SCT -> OP 0.568*** 0.046 12.233 0.476 Supported
8 SCT -> RP 0.550*** 0.049 11.228 0.434 Supported
9 SCT -> SP 0.434*** 0.053 8.264 0.232 Supported
10 SCT -> TP 0.477*** 0.052 9.158 0.295 Supported
Note: ***p<0.001
Effect size of relationships is measured through the F-square statistic and is strong
when its value is greater than or equal to 0.35 while values near 0.15 and 0.02 are
considered moderate and weak respectively (Cohen, 1988). As shown by the statistical
results (Table 8) the effect sizes of formalization, supply chain communication and trust
on supply chain transparency are near moderate while effect sizes of trust and
disintermediation are slightly above weak. The effect sizes of supply chain transparency
on Operational and Relationship performances is strong, and within range of strong and
mild in the cases of supplier and technical performances.
Model Significance was assessed through the use of bootstrapping (i.e. drawing a
large number of samples from a small sample size) (F.Hair et al., 2014, Chin 1988,
Hensler et al., 2009). The sample was bootstrapped to 5000 samples. The estimates show
that formalization has the greatest effect on supply chain transparency with an estimate of
0.307 with supply chain communication having the second highest effect on transparency
showing an estimate of 0.287. The estimates of disintermediation and trust are nearly the
same with values of 0.244 and 0.257 respectively and are significantly predicting
transparency. System integration is the weakest predictor in terms of its estimate’s value
(i.e. 0.179) but a significant indicator nevertheless. Therefore the answer to research
question number one is positive, all information flow/clarity factors have positive
relationships with supply chain transparency.
Supply chain transparency as an indicator of performance measures has been
shown as significant through statistical analysis and having the greatest effect on
operational performance with an estimate value of 0.568. Relationship performance is
shown as having been highly effected by transparency second to operational performance
with an estimate value of 0.550. Supplier and technical performances have also been
significantly predicted transparency with estimates of 0.434 and 0.477. Therefore the
answer to research question number two is also positive, supply chain has a positive
relationship with all performance measures.

Chapter No 5
Conclusion and
Recommendations
5. Conclusion and Recommendations
5.1 Conclusion
This thesis examines the indicators which may contribute to enhance supply chain
transparency (SCT) and at the same time it has tested the impact of SCT on the various
supply chain performance (SCP) factors as well as a factor measuring internal technical
performance. Supply chain transparency examined in this thesis was specific to the
automotive industry of Pakistan (Karachi). Transparency is the key supply chain aspect
as it comprises of the levels of information flow among all supply chain partners involved
in an industrial operation (Bastian and Zentes. 2013).
In this study, various forms of determinants like Disintermediation,
Formalization, Supply Chain Communication, System Integration and Trust were
extracted from different past researches which have evident positive impact in making
transactions and information flow more trustworthy and clear. These factors were then
built in the model in order to understand the phenomenon better. Results show that all the
determinants are significantly impacting the supply chain transparency with p<0.001. The
greatest contributor for transparency is formalization having a significant (p < 0.001) beta
coefficient of 0.307 followed by Supply chain communication as the second best
contributor with a significant (p < 0.001) beta coefficient of 0.286. Trust and
Disintermediation have shown similar statistical estimates with significant (p < 0.001)
beta coefficients of 0.257 and 0.244 respectively indicating that trust has slightly greater
importance than disintermediation as a transparency estimator. System integration being
a significant (p < 0.001) estimator for transparency is the weakest among all five with a
beta coefficient of 0.179.

Estimates showing effects of supply chain transparency on performance measures
are all significant. Operational and relationship performances, due to transparency levels,
are being affected the most with significant (p < 0.001) beta coefficients of 0.568 and
0.550 respectively. Supplier and technical performances (additional constructs in this
study) have been significantly (p < 0.001) estimated by supply chain transparency levels
with slightly weaker beta coefficients of 0.434 and 0.477 respectively.
Parallel to this, the model is enriched to analyze the effect on various performance
measures being affected by supply chain transparency levels. Decision making through
information sharing among supply chain members involved in a specific business
operation results in better outcomes through assistance in part of all supply chain
members involved as each supply chain member is bound by the availability of resources
specific to each member (Hung et al., 2011). As the statistical output shows; all of the
constructs analyzed in the study in order to identify their contribution towards supply
chain transparency have shown positive effects on transparency with formalization
having the greatest effect followed by communication practices of the supply chain
having the second best effect. There is a weak difference between the effect size of
formalization and the effect size of supply chain communication. Formalization involves
standardization in terms of buyer-supplier operational synchronization as well as
examining supplier operations through buyer-supplier audits in order to suggest supplier
improvement programs or supplier selection. Formalization through the procedures
mentioned has taken place as suggested by past research in the context of the Pakistani
automotive vendor industry to achieve buyer suggested technical expertise which has also
resulted in greater collaboration between buyers and suppliers.

Internationally expanding multi nationals setting up joint ventures in foreign
territory operating in Pakistan have extensively implemented their standardization
practices therefore (Khan and Nicholson. 2015), it can be stated that formalization is the
greatest contributor towards supply chain transparency. This is especially the case
concerning Japanese corporation operating on an international scale. The aftermath of
such extensive standardization is that local vendors gain insights of international
practices and some enthusiastic enterprises start pursuing further advancement by
improving collaboration with their buyers as well as suppliers resulting in more
sophisticated communication practice adaptation by these companies (Khan and
Nicholson. 2015). Improvement in communication practices is another critical aspect in
improving transparency (Gold et al., 2009) as indicated by the results.
Trust and disintermediation have nearly the same effect on transparency. Trust
was added as an extra construct to measure its effect on transparency and as the results
show, trust has a slightly greater effect than disintermediation. The similarity in effect
size may be due to the implication that only productive intermediaries are retained as
supply chain partners and often dealt with resulting in greater transparency alongside
improvements in levels of trust.
Trust among supply chain members, on the other hand, is a stronger indicator than
disintermediation for supply chain transparency. Trust is a factor prevalent in all forms of
joint business activity and cannot be denied (Sharfman et al., 2009). Although in the case
of the automotive vendors of Pakistan some forms of ambiguity still exists.
System integration is another construct incorporated into this thesis and was not
part of the original model and therefore had to be explored. System integration, according
to past research, has facilitated supply chain collaboration (Prajogo and Olhager. 2012)
implying better communication among supply chain partners and indirectly better
transparency according to this research. But the case, as statistically shown in this thesis,
is that system integration, although a significant indicator is the weakest indicator of
supply chain transparency. This can also be proven by past research as the automotive
vendors of Pakistan lack the appropriate technology to be comparable to foreign
industries (Khan and Nicholson. 2014). The construct included items used to investigate
the level of technology employed by organizations to enhance inter-organizational
communication for catering operational functionality, level of expediting systems
employed, organization specific coordination systems etc. A mild to weak predictor score
implies that system integration levels are weak. The state of technology employed is
mediocre as compared to the transaction and expediting systems used in foreign
industries (Khan and Nicholson. 2015). Therefore system integration is the weakest
indicator of supply chain transparency.
Third party integration was removed from the analysis due to statistical
limitations. Lower reliability implies that internal consistency with respect to the
collective response patterns of items in a construct is low (Hair et al., 2010). In advance
economies the role if third parties may extend to as significant as orchestrators (Zacharia
et al., 2011) but due to the weak supply chain practices of the automotive industrial
setting in Pakistan (Perween et al., 2013, Khan and Nicholson. 2014) the status of third
party involvement is uncertain.
The performance measures being affected by transparency include all the ones
included in the analysis, with positive effects represented by the respective coefficients.
Supply chain transparency has the greatest effect on Operational performance and nearly
similar effects on relationship performance. The constructs added for this research,
supplier performance and technical performance, have also been positively affected by
transparency but slightly weaker than operational and relationship performances.
Due to the item composition of operational performance it is indicated that
increased transparency levels positively affect cost and quality effectiveness. Supplier
performance gauged through items measuring design specification and quality
requirement adherence as well as effective delivery scheduling and fulfillment is
positively affected by improved transparency therefore, the mentioned criterions have
been positively affected. Relationship performance in terms of quality and benefit fueled
by innovative project initiation and commencement, stability and satisfaction is positively
affected by transparency. Technical performance, composed of items measuring
capacities such as research and development, engineering, new product development etc.
is also showing a positive shift with increased transparency.
5.2 Recommendations (Implications)
With the lower levels of system integration identified through their effects on
transparency and the great extent to which formalization in the form of standardization is
being implemented in Pakistan by multi nationals it is in the best interest of local vendors
to embrace the changes being implemented and proactively involve themselves in
pursuing advancement in terms of sophisticated communication practices. The emerging
state of economy through which Pakistan is going is an indication that active competition
will only increase with more second grade companies getting involved in the market with
low grade operations and mediocre supply chain practices. Continuity of such unhealthy
competition will shift the economy, in the long term to a slump; therefore a more
transparent and standardized supply chain can help identify innovative and productive
opportunities while improving performance levels in terms cost effectiveness, waste
minimization, long term progressive business endeavors and better research and
development.
Further efforts towards disintermediation can help facilitate total quality
management by making the channel of information as effective as possible.
Disintermediation, as indicated, is not the strongest contributor towards transparency,
therefore effective efforts towards keeping quality intermediaries can help identify
information asymmetries and active collaboration with such intermediaries can enable the
implementation of operational modification strategies. Just in time, alongside TQM, is an
effective operational application in automotive industries and with the effective efforts
towards disintermediation wasteful communication can be avoided while minimizing
lead time for inventory flow. Information distortion can still exist if the productive
intermediaries are not operating with integrity. In its current state the channel of
intermediaries may still be not as effective as per the requirements of multi-national
stakeholders and has given rise to efforts made by multi-nationals to make the supply
chain as productive as possible through standardization. The positiveeffects of
disintermediation identified can be further enhanced by adapting the formal standards
inducted through supplier development programs being carried out by foreign automotive
multi nationals in Pakistan thereby improving transparency.
Enhancing the effectiveness of communication practices in the supply chain is
another major objective of automotive multi nationals therefore they have employed the
local automotive vendors to enhance their communication practices. It is vital that local
vendors also make independent efforts in identifying communication barriers prevalent in
the current industrial setting. Such barriers may negatively affect the efforts employed
for improving communication and may result in wasteful outcomes of such endeavors.
Local vendors should proactively involve themselves in facilitating their suppliers by
identifying loop holes in their communication channels and help standardize sub-vendor
communication practices as applied by foreign multi-national on significant local
vendors. Advancing the prevalent communication practices to a more sophisticated level
may also call for radical change as sub-vendors are still communicating back and forth
throughout the supply chain using primitive communication practices therefore business
process re-engineering can also be a transparency enabling course of action.
Application of proper information technology based communication systems is a
general requirement for the local automotive vendors. The prevalent state of technology
may be positively affecting supply chain transparency but not to the extent it should as
compared to industrial IT applications in advance economies. This is another indicator of
the procrastinating nature of local automotive vendors in accepting new technologies.
With the current advancement in software and internet applications a vast and diverse
range of tailor made communication IT applications are available. Better buyer-supplier
integrating communication systems should be adopted by the local vendors so that better
forms of transparency can be achieved as well as making available systematic supply
chain structural outlooks throughout the supply chain. Primitive forms of communication
technology currently used for tracking supplies and expediting them should be replaced
with internet based tracking systems to guide supplies through better routes considering
the adversely dynamic traffic conditions of Pakistan.
Trustworthy supplier retention has proven to be a positive influence on
transparency and can be further enhanced with the removal of operational discrepancies
at each tier level of the supply chain. Supply chain members may have trust among one
another but may be conditional considering the varying resource availability for each
supplier; therefore, it is advisable that suppliers evaluate themselves by analyzing
superior supply chain members and setting up benchmarks followed by efforts to improve
operational attributes which would enable them to serve better as supply chain members.
This enhanced contribution in the supply chain may further develop trust among supply
chain members as requirements fulfilled at each tier level will be greater than before.
Greater trust implies greater sharing of knowledge and therefore greater transparency.
Standardization is the key driver towards improving transparency and, as already
indicated by past research, plays a vital role in positively influencing the drivers of
transparency. The formal standards introduced by foreign automotive multi-nationals,
specifically Japanese multi-nationals, have reasonably, if not fully, contributed towards
improving transparency by improving communication practices, adjusting intermediation,
enabling technological adaptation etc. It is advisable that the vendor industry practices
screening more standards which would enable greater transparency and collaborate with
other supply chain members to identify the most successful collaboration practices
circulating in the vendor industry. This would enable best practice utilization by all
members of the supply chain and may also positively influence trust leading towards
better transparency.
Since all the performance measures are positively affected by transparency
organizations should include transparency as a criteria in their performance benchmarks
which has already been done by various sophisticated corporations but is still a concept
for many primitive vendors.
5.3 Future Research
The dimensional effects identified in this study included positive effects for four
construct new to the research model. However, this research was adversely influenced by
the limited availability of respondents partially due to confined nature of the research and
partially due to the professional qualification level of respondents. The results of this
research can be contextualized even further by broadening the scope of industrial sectors
analyzed or targeting a larger geographic setting.
Most of the respondents in this thesis were officials from the automotive vendor
industry present in Karachi, Pakistan. Further research can be conducted on vendors
located in other cities or industrial installations. Motorcycle vendors were the primary
source of data while vendors of four wheelers were a minority implying that the four
wheeler vendors are yet to be explored further.
Other industrial categories, involved in manufacturing, can also be further
explored to analyze the effect of transparency enabling drivers on supply chain
transparency and ultimately performance measures.
Transparency levels analyzed in this thesis were on the basis of the theoretical
implications of information theory, which defines the role of information asymmetries in
supply chain and resource based view, which suggests the role of resources employed in
a business setup in facilitating sustainable competitive advantage.

Further research can be conducted on new dimensions based on other supply
chain theories which may have varying effects on supply chain transparency and other
performance measures.
Other dimensions which can be explored may also include drivers such as
supplier evaluation, partnership strategy, Influencers, supply chain status, External
pressures, collaborative processes etc. (Paul Humphreys. 2011, Forman. 2014, Jabbour.
2013, Mohanty and Prakash. 2014, Thuong T. LE et al., 2004) and performance measures
such as financial performance, supply chain performance, customer responsiveness etc.
(Inemek and Tuna. 2009,Gopal and Thakkar 2015, Adebanjo and Laosirihongthong.
2014).
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Appendices
Appendix-A
Questionnaire
Please spare a few minutes of your time to facilitate this research. The objective of this
research is to investigate the level of application of various factors effecting and the
factors being affected by supply chain transparency in the automotive vendor industry of
Pakistan.
To what extent do you agree with the following statements; (1 = Strongly Disagree, 5 =
strongly agree)
1 2 3 4 5
Disintermediation:
1 There are no unnecessary or unproductive channels or
checkpoints throughout the supply chain.
2 The supply chain of this product has less tiers/players than
comparable competitors.
Formalization:
Degree of control
In order to meet technical and engineering requirements in
the supply chain . . .
3
a) . . . we regularly conduct external audits of suppliers
4 b) . . . we waive external controls and rely mainly on
suppliers’ statements (r)
Formal standards:
5 The supplier has detailed formal specifications concerning
our technical and engineering requirements for the product.
6 We have a written code of conduct which is mandatory for
the supplier
7 For this supplier, we largely waive formal specifications
with regard to technical and engineering requirements (r)
Third-party integration:
In order to comply with technical and engineering
requirements in the supply chain . . .
8 a) . . . we closely cooperate with independent organizations
(e.g. NGOs, certifiers)
9 b) . . . we are supported very well by independent
organizations
Supply Chain Communication:
10 Information exchanged with the supplier is up to date
11 Information exchanged with the supplier is precise.
12 Information exchanged with the supplier is reliable
13 We exchange all helpful data with the supplier in a timely
manner
14 There is a regular open exchange of information, knowledge
and ideas with suppliers which are integrated into the
various functional areas (e.g. quality assurance,
sustainability, marketing, product development, logistics)
To what extent do you agree with the following statements; (1 =strongly disagree, 5 =
strongly agree)
System Integration 1 2 3 4 5
15 There are direct computer-to-computer links with key
suppliers
16 Inter-organizational coordination is achieved using electronic
links
17 We use information technology-enabled transaction
processing
18 We have electronic mailing capabilities with our key
suppliers
19 We use electronic transfer of purchase orders, invoices,
and/or funds
20 We use advanced information systems to track and/or
expedite shipments
Trust in supplier
21 We believe the information provided by our suppliers
22 The suppliers are concerned about our business
23 The suppliers keep our interests in mind
24 The information provided by the suppliers is trust worthy
25 The suppliers are genuinely concerned that our business
succeeds
To what extent do you agree with the following statements? (1 = strongly disagree, 5 =
strongly agree)
1 2 3 4 5
Supply Chain Transparency
26 The supply chain of our products is verytransparent
27 We are very familiar with the individualsupply chain
processes and theirmembers
28 We can trace the product all the way back to the original raw
materials extraction or engineering methods.
29 All production processes are transparent and verifiable.
30 The performance and profits of all supply chain members are
quite transparent
Long-term relationship success
Relationship benefit
31 The sourcing project leads to asignificant increase in
innovationcapacity of the involved companies
32 The sourcing project leads to long-termpositive effects with
respect toperformance of this supply chain
Relationship quality
33 We have a stable business relationshipwith the supplier of this
product
34 Both the suppliers and we are verysatisfied with our mutual
business relationship.
35 A long-term relationship with thesupplier is guaranteed
Please rate the supply chain performance regarding the following criteria (1 =strongly
disagree; 5 = strongly agree)
Operational performance 1 2 3 4 5
Ability to supply
36 There is adaptability and flexibility of the supply chain to
actual needs.
37 There is adaptability of products to changing market
requirements or customer preferences
Cost
38 The process and coordination costs are as per industry
standard
39 Total costs of acquiring products from suppliers are as per
industry standard
Quality
40 The products acquired are compliant with quality
requirements
41 Product safety is well accounted for.
Please rate the following statements with the degree of agreement respective of level of
improvement experienced: (1 = strongly disagree, 5 =strongly agree)
Supplier Performance 1 2 3 4 5
42 Percentage of orders meeting design specification has
improved or is improving
43 Percentage of orders meeting quality requirements has
improved or is improving
44 Percentage of on-time deliveries has improved or is
improving.
45 Defect rate of incoming materials is bearable / ignorable.
46 Percentage of downtime due to supplier errorsis bearable.
Please rate the supply chain performance regarding the following criteria (1 =Strongly
Disagree; 5 = Strongly Agree)
Technical performance 1 2 3 4 5
47 Engineering and design capability is as per industry standard.
48 (Flexibility) to respond to design changes is as per industry
standard.
49 New product development time is as per industry standard.
50 Research and development capability is progressive.
51 Manufacturing capability and technologyis well accounted
for.
Designation:
Top management (CEO, CFO,CIO, etc)
Middle management (GM, RM, DM, etc)
Lower Management (managers etc)
Company size:
Less than 100
100 to 300
More than 300
Company Type:
OEM
Vendor
Appendix-B
Proof of Validity
Output of Test Results
Section 1 Reliability Analysis:
1.1 Overall Reliability:
Table 1.1.1 - All items
Reliability
Statistics
Cronbach' N of
s Alpha Items
.896 51
1.2 Constructs:
Table 1.2.1 - Disintermediation
Reliability
Statistics
Cronbach' N of
s Alpha Items
.675 2
Table 1.2.2 - Formalization
Reliability
Statistics
Cronbach' N of
s Alpha Items
.810 4
Table 1.2.3 - Supply Chain Communication
Reliability
Statistics
Cronbach' N of
s Alpha Items
.806 4
Table 1.2.4 - System Integration
Reliability
Statistics
Cronbach' N of
s Alpha Items
.696 3
Table 1.2.5 - Trust
Reliability
Statistics
Cronbach' N of
s Alpha Items
.721 3
Table 1.2.6 - Supply Chain Transparency
Reliability
Statistics
Cronbach' N of
s Alpha Items
.838 4
Table 1.2.7 - Relationship Performance
Reliability
Statistics
Cronbach' N of
s Alpha Items
.799 5
Table 1.2.8 - Operational Performance
Reliability
Statistics
Cronbach' N of
s Alpha Items
.876 4
Table 1.2.9 - Supplier Performance
Reliability
Statistics
Cronbach' N of
s Alpha Items
.638 3
Table 1.2.10 Technical Performance
Reliability
Statistics
Cronbach' N of
s Alpha Items
.596 3
Section 2 Conceptual Framework

Section 3 Descriptive Statistics
Table 1 Demographic Profiles
Frequenc
Description (Sample Size = 218) y Percentage
Designation Top Management (CEO, CFO, CIO, etc) 38 17.4
Middle Management (GM,RM, DM,etc) 111 50.9
Lower Management (Managers, etc) 69 31.7
Company
Less than 100 6 2.8
Size
100 to 300 50 22.9
More than 300 162 74.3
Company
OEM 45 20.6
Type
Vendor 173 79.4
Section 4 Content Validity
Table 2 - Factor Analysis Results
Construct
Items DI FRM OP RP SCC SCT SI SP TP TR
s
0.41 0.29 0.32
DI1 0.858 0.220 0.364 0.302 0.434 0.306 0.133
4 5 6
DI
0.45 0.34 0.38 -
DI2 0.880 0.197 0.479 0.439 0.470 0.359
5 6 7 0.047
FRM 0.17 0.13 0.04
0.131 0.826 0.237 0.219 0.393 0.148 0.090
1 6 6 0
FRM 0.24 0.17 0.11
0.242 0.843 0.222 0.138 0.389 0.192 0.144
2 9 0 1
FRM
FRM 0.17 0.11 0.06
0.145 0.725 0.171 0.104 0.327 0.140 0.092
3 5 6 4
FRM 0.20 0.21 0.20
0.234 0.803 0.287 0.161 0.467 0.253 0.111
5 3 3 0
0.40 0.36 0.25 -
OP3 0.420 0.301 0.861 0.455 0.484 0.369
4 7 3 0.088
0.40 0.34 0.31 -
OP4 0.430 0.236 0.862 0.403 0.510 0.325
0 8 6 0.039
OP
0.47 0.36 0.42 -
OP5 0.466 0.270 0.876 0.465 0.531 0.346
3 8 3 0.006
0.34 0.30 0.32 -
OP6 0.334 0.180 0.816 0.406 0.398 0.352
7 2 1 0.136
0.68 0.27 0.24
RP1 0.419 0.181 0.441 0.378 0.440 0.310 0.023
6 2 3
0.75 0.33 0.31
RP2 0.399 0.228 0.332 0.302 0.426 0.255 0.077
5 8 7
0.73 0.30 0.34
RP RP3 0.461 0.219 0.387 0.392 0.430 0.251 0.132
8 6 5
0.75 0.26 0.35
RP4 0.267 0.148 0.288 0.415 0.378 0.423 0.091
8 9 7
0.79 0.29 0.34
RP5 0.290 0.149 0.317 0.377 0.360 0.370 0.035
3 5 3
0.40 0.25 0.31
SCC1 0.273 0.191 0.421 0.775 0.469 0.375 0.052
0 7 5
0.43 0.34 0.36
SCC3 0.418 0.171 0.401 0.836 0.468 0.323 0.088
8 5 3
SCC
0.44 0.39 0.29
SCC4 0.380 0.073 0.372 0.827 0.406 0.322 0.028
0 0 7
0.30 0.34 0.40
SCC5 0.299 0.189 0.424 0.753 0.387 0.333 0.042
7 0 4
0.47 0.35 0.40
SCT1 0.496 0.479 0.516 0.487 0.893 0.422 0.298
3 5 7
0.46 0.36 0.40
SCT2 0.413 0.419 0.508 0.472 0.890 0.445 0.308
7 4 9
SCT
0.52 0.38 0.41
SCT3 0.523 0.394 0.443 0.476 0.866 0.462 0.326
7 4 2
0.31 0.32 0.34
SCT4 0.242 0.343 0.396 0.344 0.606 0.238 0.178
8 6 0
0.32 0.28 0.40

SI4 0.373 0.203 0.385 0.345 0.420 0.810 0.040
9
Table 3 - Factor Loadings Significant 1 0
0.30 0.31 0.38
SI SI5 0.259 0.194 0.261 0.374 0.332 0.746 0.034
Construct 4 T 4 P 5
Items Loadings 0.37Standard Error 0.33 0.37
s
SI6 0.265 0.161 0.303 0.292 0.389 Value Value
0.807 0.107
5 3 5
DI1 0.858 0.25 0.029 29.619 0.68 ***
0.26
DI
SP1 0.306 0.111 0.336 0.314 0.315 0.238 0.022
DI2 0.880 9 0.028 31.952 9 ***7
FRM1 0.24 28.758 0.73 ***
0.27
SP SP2 0.260 0.184 0.826
0.287 0.029 0.253
0.309 0.337 0.076
7 9 8
FRM2 0.843 0.38 0.029 28.887 0.85 ***
0.33
FRM
SP3 0.283 0.174 0.311 0.327 0.400 0.324 0.143
FRM3 0.725 1 0.054 13.473 0 ***3
0.29
TP2 FRM5
0.246 0.101 0.803
0.243 0.030 0.308
0.237 26.708 0.22 ***
0.279
0.70
0.107
9 5 8
OP3 - 0.861 0.32 0.025 33.886 0.35 ***
0.64
TP TP3 0.308 0.250 0.323 0.254 0.286 0.013
OP40.005 0.862 8 0.023 36.735 7 ***9
OP 0.33 0.30 0.84
TP4 0.356OP50.166 0.876
0.349 0.016 0.456
0.385 54.469 1 ***7
0.479 0.109
9
OP6 0.816
- 0.01 0.034 24.125 0.10 ***
0.05
TR TR2 0.042 0.113 0.016 0.270 0.100 0.817
RP1 0.066
0.686 3 0.041 16.669 3 ***3
- 0.13 0.10 0.16
TR3 0.066RP20.129 0.755 0.035 0.338
0.131 21.593 9 ***9
0.114 0.903
0.045 7
RP
TR4
- RP3
0.080
0.738
- 0.06 0.049
-
0.196
15.043
- 0.04 ***
0.00
0.663
0.021RP4 0.074
0.758 9 0.022
0.042 0.077
18.074 7 ***9
Source: Authors' estimationRP5 0.793 0.034 23.346 ***
SCC1 0.775 0.031 25.161 ***
SCC3 0.836 0.025 32.977 ***
SCC
SCC4 0.827 0.028 29.146 ***
SCC5 0.753 0.039 19.080 ***
SCT1 0.893 0.014 65.282 ***
SCT2 0.890 0.017 53.325 ***
SCT
SCT3 0.866 0.018 47.060 ***
SCT4 0.606 0.051 11.836 ***
SI4 0.810 0.030 26.588 ***
SI SI5 0.746 0.049 15.172 ***
SI6 0.807 0.040 20.412 ***
SP1 0.689 0.061 11.322 ***
SP SP2 0.739 0.065 11.345 ***
SP3 0.850 0.033 25.484 ***
TP2 0.708 0.055 12.799 ***
TP TP3 0.649 0.061 10.579 ***
TP4 0.847 0.032 26.333 ***
TR2 0.817 0.075 10.947 ***
TR TR3 0.903 0.034 26.362 ***
TR4 0.663 0.101 6.557 ***
Note: *** p<0.001
Section 5 Convergent Validity
Table 4–Convergent Validity
Constructs Items Loadings CR AVE
DI1 0.858 0.86

DI 0.755
DI2 0.880 0
FRM1 0.826
FRM2 0.843 0.87

FRM 0.641
FRM3 0.725 7
FRM5 0.803
OP3 0.861
OP4 0.862 0.91

OP 0.729
OP5 0.876 5
OP6 0.816
RP1 0.686
RP2 0.755
0.86
RP RP3 0.738 0.558
3
RP4 0.758
RP5 0.793
SCC1 0.775
SCC3 0.836 0.87

SCC 0.638
SCC4 0.827 5
SCC5 0.753
SCT1 0.893 0.89

SCT 0.677
SCT2 0.890 1
SCT3 0.866
SCT4 0.606
SI4 0.810
0.83
SI SI5 0.746 0.621
1
SI6 0.807
SP1 0.689
0.80
SP SP2 0.739 0.581
5
SP3 0.850
TP2 0.708
0.78
TP TP3 0.649 0.547
1
TP4 0.847
TR2 0.817
0.84
TR TR3 0.903 0.641
1
TR4 0.663

Table 4.1-Outer Weights
Mean, STDEV, T-Values, P-Values
Original Standard T Statistics

Sample
Sample Deviation P Values
Mean (M)
(O) (STDEV) (|O/STDEV|)
DI1 <- DI 0.552 0.552 0.043 12.721 0.000
DI2 <- DI 0.598 0.597 0.041 14.501 0.000
FRM1 <- FRM 0.311 0.310 0.030 10.386 0.000
FRM2 <- FRM 0.307 0.308 0.032 9.636 0.000
FRM3 <- FRM 0.258 0.258 0.041 6.255 0.000

FRM5 <- FRM 0.370 0.370 0.036 10.252 0.000
OP3 <- OP 0.294 0.294 0.016 17.886 0.000
OP4 <- OP 0.310 0.311 0.023 13.493 0.000
OP5 <- OP 0.323 0.324 0.021 15.486 0.000
OP6 <- OP 0.242 0.241 0.022 10.868 0.000
RP1 <- RP 0.291 0.292 0.038 7.607 0.000
RP2 <- RP 0.282 0.283 0.031 9.113 0.000
RP3 <- RP 0.284 0.284 0.027 10.696 0.000
RP4 <- RP 0.250 0.248 0.031 7.979 0.000
RP5 <- RP 0.238 0.237 0.022 10.912 0.000
SCC1 <- SCC 0.340 0.340 0.028 12.227 0.000
SCC3 <- SCC 0.339 0.340 0.026 13.041 0.000
SCC4 <- SCC 0.294 0.294 0.028 10.368 0.000
SCC5 <- SCC 0.280 0.278 0.030 9.221 0.000
SCT1 <- SCT 0.327 0.327 0.012 26.932 0.000
SCT2 <- SCT 0.318 0.318 0.010 32.564 0.000
SCT3 <- SCT 0.326 0.325 0.011 29.282 0.000
SCT4 <- SCT 0.236 0.236 0.014 17.258 0.000
SI4 <- SI 0.466 0.467 0.042 11.005 0.000
SI5 <- SI 0.368 0.367 0.044 8.332 0.000
SI6 <- SI 0.431 0.431 0.041 10.644 0.000
SP1 <- SP 0.423 0.419 0.073 5.839 0.000
SP2 <- SP 0.340 0.338 0.060 5.636 0.000
SP3 <- SP 0.538 0.540 0.054 9.946 0.000
TP2 <- TP 0.401 0.396 0.057 7.006 0.000

TP3 <- TP 0.331 0.332 0.050 6.632 0.000
TP4 <- TP 0.592 0.594 0.059 9.961 0.000
TR2 <- TR 0.412 0.409 0.087 4.734 0.000
TR3 <- TR 0.515 0.523 0.066 7.865 0.000
TR4 <- TR 0.299 0.282 0.091 3.292 0.001
Table 4.2 -Construct Reliability and Validity
Cronbach's Composite Average Variance Extracted

rho_A
Alpha Reliability (AVE)
DI 0.676 0.679 0.860 0.755
FRM 0.813 0.825 0.877 0.641
OP 0.876 0.885 0.915 0.729
RP 0.802 0.800 0.863 0.558
SCC 0.810 0.815 0.875 0.638
SCT 0.832 0.856 0.891 0.677
SI 0.697 0.705 0.831 0.621
SP 0.640 0.669 0.805 0.581
TP 0.596 0.651 0.781 0.547
TR 0.718 0.780 0.841 0.641
Section 6Discriminant Validity
Table 5 - Correlations of Discriminant Validity

Constructs DI FRM OP RP SCC SCT SI SP TP TR
0.86
DI
9
0.23
FRM 0.800
9
0.48
OP 0.292 0.854
8
0.50
RP 0.252 0.479 0.747
1
0.42 0.79
SCC 0.197 0.507 0.499
9 9
0.52 0.54 0.82
SCT 0.499 0.568 0.550
1 5 3
0.38 0.42 0.48 0.78
SI 0.235 0.406 0.427
3 4 6 8
0.37 0.41 0.43 0.39
SP 0.203 0.407 0.399 0.762
0 4 4 0
0.41 0.43 0.47 0.49 0.73
TP 0.137 0.386 0.429 0.387
2 0 7 0 9
0.04 0.06 0.34 0.07 0.11 0.80
TR 0.137 -0.073 0.097 0.112
5 8 4 7 2 1
Table 6 - Heterotrait-Monotrait Ratio (HTMT) Results

FR T
Constructs DI OP RP SCC SCT SI SP TP
M R
DI
0.31
FRM
8
0.62 0.33
OP
4 6
0.66 0.30 0.56
RP
7 7 0
0.57 0.23 0.60 0.61
SCC
5 7 0 5
0.68 0.60 0.66 0.66 0.65
SCT
4 2 3 4 9
0.55 0.30 0.51 0.57 0.56 0.62
SI
1 6 5 6 8 6
0.56 0.27 0.54 0.53 0.58 0.58 0.59
SP
2 7 3 8 1 5 2
0.64 0.18 0.51 0.62 0.61 0.65 0.72 0.63
TP
1 2 9 8 3 3 7 5
0.15 0.18 0.10 0.13 0.10 0.42 0.17 0.15 0.20
TR
3 2 9 8 4 9 2 6 4
Section 7The structural model and test of hypotheses

Collinearity Statistics
(VIF)
Inner VIF
Values
D
FRM RP OP SCC SCT SI SP TP TR
I
DI 1.331
FRM 1.107
RP
OP
SCC 1.367
SCT 1.000 1.000 1.000 1.000
SI 1.322
SP
TP
TR 1.021
Outer VIF Values
VIF
DI1 1.352
DI2 1.352
FRM1 2.110
FRM2 2.234
FRM3 1.463
FRM5 1.537
RP1 1.299
RP2 1.577
RP3 1.516
RP4 2.215
RP5 2.408
OP2 1.359
OP3 2.543
OP4 2.518
OP5 2.579
OP6 2.518
SCC1 1.489
SCC3 2.032
SCC4 2.059
SCC5 1.520
SCT1 2.733
SCT2 2.616
SCT3 2.625
SCT4 1.272
SI4 1.347
SI5 1.327
SI6 1.406
SP1 1.134
SP2 1.401
SP3 1.436
TP2 1.191
TP3 1.175
TP4 1.230
TR1 1.155
TR2 1.669
TR3 1.842
TR4 1.274
Figure 2: SEM Output (Factor Loadings and Path Coefficients)

Figure 2: SEM Output (T-Statistics)
Table7 - Predictive Power of the

construct
R Square Q²
OP 0.322 0.228
RP 0.302 0.160
SCT 0.612 0.403
SP 0.188 0.100
TP 0.228 0.116
Table 8 - Average R-Squared and Average

AVE
R Average Variance Extracted
Square (AVE)
0.322 0.755
0.302 0.641
0.612 0.729
0.188 0.558
0.228 0.638
0.677
0.621
0.581
0.547
0.641
0.3304 0.638660399
Figure 4: Goodness of Fit Index
GoF =√ Average R 2∗Average AVE
GoF =√ 0.3304∗0.639=0.459522
Table 9 - Hypothesis Test Results

No Hypothesis Estimate S.E. T-Values Decision
1 DI -> SCT 0.244*** 0.053 4.655 Supported
2 FRM -> SCT 0.307*** 0.046 6.637 Supported
4 SCC -> SCT 0.286*** 0.055 5.226 Supported
5 SI -> SCT 0.179*** 0.047 3.816 Supported
6 TR -> SCT 0.257*** 0.060 4.323 Supported
7 SCT -> OP 0.568*** 0.046 12.233 Supported
8 SCT -> RP 0.550*** 0.049 11.228 Supported
9 SCT -> SP 0.434*** 0.053 8.264 Supported
10 SCT -> TP 0.477*** 0.052 9.158 Supported
Note: ***p<0.001
Section 8 Invalid Model
Table 1 - Construct Reliability and Validity
Cronbach's rho_ Composite Average Variance Extracted

Alpha A Reliability (AVE)
DI 0.676 0.679 0.860 0.755
FR
0.813 0.825 0.877 0.641
M
OP 0.876 0.885 0.915 0.729
RP 0.802 0.800 0.863 0.558
SC
0.810 0.815 0.875 0.638
C
SC
0.832 0.856 0.891 0.677
T
SI 0.697 0.705 0.831 0.621
SP 0.640 0.669 0.805 0.581
TP 0.596 0.651 0.781 0.547
TPI 0.126 0.128 0.695 0.533
TR 0.718 0.780 0.841 0.641
Table 2 - Heterotrait-Monotrait Ratio (HTMT)
T
DI FRM OP RP SCC SCT SI SP TP TPI
R
DI
FRM 0.318
OP 0.624 0.336
RP 0.667 0.307 0.560
SCC 0.575 0.237 0.600 0.615
SCT 0.684 0.602 0.663 0.664 0.659
SI 0.551 0.306 0.515 0.576 0.568 0.626
SP 0.562 0.277 0.543 0.538 0.581 0.585 0.592
TP 0.641 0.182 0.519 0.628 0.613 0.653 0.727 0.635
TPI 1.477 0.552 0.982 1.570 1.426 1.166 1.244 1.575 1.822
TR 0.153 0.182 0.109 0.138 0.104 0.429 0.172 0.156 0.204 0.425

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Drivers and Effects of Supply Chain Transparency in the Pakistani Automotive Industry

Mohammad Omar (12188)

Department of Business Administration

The requirement for the

MASTER OF BUSINESS ADMINISTRATION

Supply Chain Management

This thesis has been

Accepted by the faculty

FACULTY OF BUSINESS ADMINISTRATION

Mr. Waqar Ahmed

Mr. Syed Ali Raza

industry of Pakistan”, through an institution as great as Iqra University. While conducting

vendors associated with foreign multi-nationals like Honda, Toyota etc.

and was achieved with the help of the aforementioned seniors.

students working in the automotive industry.

I again feel pleasure in thanking IQRA University.

1.3 Statement of problem.................................................................................................7

1.4 Objective of study......................................................................................................9

1.5 Research Questions....................................................................................................9

1.6 Significance of study..................................................................................................9

1.7 Limitations and delimitations of study.....................................................................10

2.2 Theoretical background and hypothesis...................................................................13

2.2.3 Third-party integration......................................................................................18

2.2.4 Supply chain communication............................................................................20

2.2.5 System Integration.............................................................................................21

2.2.7 Effects of supply chain transparency on performance measures......................23

2.3 Review of related literature......................................................................................23

2.3.3 Third party integration.......................................................................................29

2.3.4 Supply chain communication............................................................................30

2.3.5 System Integration.............................................................................................32

2.3.7 Supply Chain Transparency..............................................................................33

2.3.8 Relationship Performance.................................................................................36

2.3.9 Operational Performance...................................................................................37

2.3.10 Supplier Performance......................................................................................38

2.3.11 Technical Performance....................................................................................40

2.4 Conceptual framework (Proposed Model)...............................................................43

3.2 Research Purpose.....................................................................................................45

3.3 Research approach...................................................................................................45

3.4 Research design........................................................................................................46

3.5 Research instrument.................................................................................................47

3.6 Face and Content Validity........................................................................................48

3.7 Target Population.....................................................................................................48

3.8 Sample Size..............................................................................................................49

3.9 Sampling technique..................................................................................................49

3.10 Statistical techniques for data analysis...................................................................50

3.11.3 Third-party integration....................................................................................51

3.11.4 System integration...........................................................................................51

3.11.5 Supply chain communication..........................................................................51

3.11.7 Supply chain transparency...............................................................................52

3.11.8 Relationship Performance...............................................................................52

3.11.9 Operational performance.................................................................................52

3.11.10 Supplier performance....................................................................................52

3.11.11 Technical performance..................................................................................52

3.12 Ethical considerations............................................................................................53

4.2 Reliability (Pilot Study)...........................................................................................55

4.3 Data Screening.........................................................................................................56

4.4 Descriptive analysis and interpretations..................................................................56