The behavior-based SCM research is different from the traditional, economic-based
one. The economic-based SCM theories propose that economic humans have access to
perfect information and will choose the rational solution and therefore imply that
SCM practices is a consequence of the rational analysis of, for example, firm resources,
transportation costs, and institutional/industry factors. In contrast, behavior-based
SCM research emphasizes on individual actors and recognizes that various decision
makers will make different strategic decisions in the same situation. Our research design
incorporates two dimensions of SCM behaviors, including corporate entrepreneurship
and social connections; however, it does not capture every aspect of SCM behaviors.
A potential attribute is firm’s human capital or knowledge management (Lee et al., 2005).
SCM research recognizes the importance of tacit knowledge of employees and
organizational learning for firms that are engaging in SCM. A supply chain member’s
SCM-related knowledge (e.g. about supplier selection and coordination/integration
across the supply chain) grows gradually over time because of the high cost of
information acquisition and the bounded rationality of managers. The firm thus operates
in an imperfect supply chain market with information asymmetry and is assumed to be
short-term oriented, risk averse and sufficing rather than profit maximizing. Managers
or practitioners must recognize that SCM is a gradual process through which firms
accumulate SCM knowledge over time. Such learning through supply chain engagement in turn influences the pace and direction of SCM practices and subsequent performance.
That is, SCM activities occur incrementally and are influenced by the employee’s
increased tacit knowledge and commitment.