A firm's capability to calibrate supply chain knowledge-Antecedents and consequences

Kishore Gopalakrishna Pillai, Soon Hong Min

Research output: Contribution to journalArticle

17 Citations (Scopus)

Abstract

This paper proposes a conceptual model for a firm's capability to calibrate supply chain knowledge (CCK). Knowledge calibration is achieved when there is a match between managers' ex ante confidence in the accuracy of held knowledge and the ex post accuracy of that knowledge. Knowledge calibration is closely related to knowledge utility or willingness to use the available ex ante knowledge: a manager uses the ex ante knowledge if he/she is confident in the accuracy of that knowledge, and does not use it or uses it with reservation, when the confidence is low. Thus, knowledge calibration attained through the firm's CCK enables managers to deal with incomplete and uncertain information and enhances quality of decisions. In the supply chain context, although demand- and supply-related knowledge is available, supply chain inefficiencies, such as the bullwhip effect, remain. These issues may be caused not by a lack of knowledge but by a firm's lack of capability to sense potential disagreement between knowledge accuracy and confidence. Therefore, this paper contributes to the understanding of supply chain knowledge utilization by defining CCK and identifying a set of antecedents and consequences of CCK in the supply chain context.

Original languageEnglish
Pages (from-to)1365-1375
Number of pages11
JournalIndustrial Marketing Management
Volume39
Issue number8
DOIs
Publication statusPublished - 2010 Nov 1

Fingerprint

Firm capabilities
Supply chain
Calibration
Managers
Confidence
Conceptual model
Demand and supply
Knowledge utilization
Willingness
Inefficiency
Reservation
Bullwhip effect

All Science Journal Classification (ASJC) codes

  • Marketing

Cite this

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A firm's capability to calibrate supply chain knowledge-Antecedents and consequences. / Pillai, Kishore Gopalakrishna; Min, Soon Hong.

In: Industrial Marketing Management, Vol. 39, No. 8, 01.11.2010, p. 1365-1375.

Research output: Contribution to journalArticle

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