Study on the Integrated SCM Performance Formation Model through Supplier Development Project and Asset Specificity

Purpose - This study aims to clarify through which process asset specificity and supplier development project (SDP) affect performance. Cooperation, partnership, the level of information exchange, and the importance of information sharing are considered significant variables as mediators related to the process. Finally, the performance formation model of the supply chain through asset specificity and supplier development project would be suggested as being a result of this study. Research design, data, and methodology - Data collection was as follows: questionnaires were distributed to 250 companies that have business ties with H Company. The empirical study to test our hypothesis was based on statistical analysis (using SPSS 19.0 and AMOS 19.0). The hypothesis of this paper is that the asset specificity and supplier development project variables have positive effects on the following variables: mediators such as cooperation and partnership (reliability and dependence); and the cooperation and partnership variables have a positive effect on the following variables: level of information sharing, the importance of information sharing, and level of information sharing; the importance of information sharing has a positive effect on supply chain performance. We tested our hypothesized model utilizing path analysis with latent variables. Results - First, it was found that asset specificity has significant positive effects on cooperation (H1), reliability (H2), and dependability (H3). Second, it was proved that the level of comprehension on the purpose of SDP has positive effects significantly on cooperation (H4), reliability (H5), and dependability (H6). Third, the hypotheses related to cooperation were all significantly accepted. The relationships of cooperation with the lev- el (H7) and importance (H8) of information sharing were significant. Fourth, the hypotheses related to reliability were all significantly accepted. The relationships of reliability with the level