Developing a Reference Framework for Measuring the Supply Chain Capability

This research aims to develop a framework for measuring the supply chain capability. The literature review and company interviews allow us to propose four capabilities and relative measurements. A field survey is then conducted in the Taiwan PC industry to assess the measurements. To ensure the measurements are valid, we apply two-step measurement assessments: the factor analysis and initial reliability are first conducted and then followed by item-total correlation, optimal reliability coefficients, convergent validity, and discriminant validity. The resulting model is an 18-item and three-dimension construct. The three dimensions are: (1) reducing transaction related risk, (2) promoting good relationship, and (3) managing environment change. The confirmatory factor analysis then suggests us to arrange the three dimensions in two groups. The first group includes the first dimension, indicating the firm capability, and the second group includes the other two, expressing the inter-firm capability. The contribution is multi-folded. Validated supply chain capability measures can help managers better gauge the characteristics of the collaborations. IT researchers can build upon the model developed in this study through further examination of the factors that are discovered