Leader or Lobbyist? How Organizational Politics and Top Supply Chain Manager Political Skill Impacts Supply Chain Orientation and Internal Integration

• Author: Chad W. Autry,Terry L. Esper,LaDonna M. Thornton
• DOI: http://doi.org/10.1111/jscm.12119
• Date: 01 October 2016
• Published date: 01 October 2016

LEADER OR LOBBYIST? HOW ORGANIZATIONAL

POLITICS AND TOP SUPPLY CHAIN MANAGER

POLITICAL SKILL IMPACTS SUPPLY CHAIN

ORIENTATION AND INTERNAL INTEGRATION

LADONNA M. THORNTON

Florida State University

TERRY L. ESPER

University of Arkansas

CHAD W. AUTRY

University of Tennessee

Despite myriad attempts by supply chain managers and exhortation by

scholars, many firms remain insufficiently integrated across internal func-

tional areas. Supply chain management research has hinted that the diffi-

culty may be due to social dynamics occurring within and between

organizational departments (i.e., organizational politics) and the percep-

tions thereof held by employees. This study examines whether perceptions

of organizational politics held by firm employees negatively impact inter-

nal integration directly, or indirectly via inhibiting the firm’s supply chain

orientation. Based on social exchange theory and social influence theory,

the research also assesses whether the potentially harmful impacts of

political perceptions on internal integration are/can be mitigated by

employees’perception of the political skill of the top supply chain man-

agement executive—a person charged with ensuring the firm’s supply

chain will function successfully. The findings of a broad managerial survey

conducted within the U.S. retail industry suggest that perceptions of orga-

nizational politics within organizations do directly influence internal inte-

gration. Furthermore, the relationship between organizational politics and

supply chain orientation is impacted when the top supply chain executive

is perceived to be politically skilled.

Keywords: cross-functional interfaces; behavioral supply management; organiza-

tional politics; survey methods; structural equation modeling

INTRODUCTION

In a recent interview, the Vice President of Supply

Chain Management of a large consumer packaged

goods (CPG) firm noted that his company’s competitive

and divisive culture had created an internal operating

environment where employees were very hesitant to help

one another. As a result, there was a pervasive unwill-

ingness to engage in projects that did not directly benefit

individual employees or their respective functional

departments. He further lamented that this culture

greatly inhibited executives’ attempts to integrate

business processes across the multiple functional areas of

the firm.

The above example was identified during prelimi-

nary qualitative phases of this research and captures

the essence of this study. Organizational behavior the-

orists (e.g., Ferris, Davidson & Perrewe, 2005; Ferris

et al., 2005; Hochwarter, Ferris, Laird, Treadway &

Gallagher, 2010) have termed social exchanges such

as those described in the example as organizational pol-

itics. Political behaviors such as these may degrade

Volume 52, Number 442

common understanding or adoption of organizational

goals across employee subgroups (Lawrence & Lorsch,

1967). They often stimulate the creation of social divi-

sions or fiefdoms across functional boundaries

(Piercy, 2007). If left unchecked, political behaviors

impede the effective achievement of internal integra-

tion, despite its many established and recognized

operational benefits (Flynn, Huo & Zhao, 2010; Van

der Vaart & van Donk, 2008).

The VP of the CPG firm from the example has since

been able to navigate the organization’s political cul-

ture in ways that inhibit its effects. In interviews we

conducted with him, he suggested that his unique

political acumen (which he referred to as “card play-

ing”) allows him to engage effectively with employees

of many functional departments within the organiza-

tion. Consequently, he has been able to facilitate the

alignment of their conflicting goals, foster internal

cross-functional integration, and, as a result, improve

operational performance. Therefore, by exerting polit-

ical efforts, the VP served the interests of both

the internal supply chain and upstream/downstream

partners.

Organizational scholars have long described firms as

complex ecosystems (Burns, 1961) comprised of peo-

ple and subgroups who often act self-interestedly to

gain recognition, status, support, resources, etc., via

social maneuvering (Ferris, Russ & Fandt, 1989;

Kumar & Ghadially, 1989). In fact, researchers have

found evidence that politics can be so impactful

within firms that even the perceptions of organizational

politics (hereafter, POPS) leads employees to exhibit

behaviors that are counter to firm interests (Piercy,

2007). Thus, the presence of POPS—defined here as

employees’ perceptions of intentional actions, which may be

performed at the expense of others, that are either overtly

or covertly performed in an effort to advance one’s position

(Ferris & Kacmar, 1992; Kacmar & Carlson, 1997)—

places the operational outcomes of the organization

in danger (Markham, 2000; Treadway et al., 2005).

Historically organizational politics is studied by

management and organizational behavior scholars.

However, in the current paper, we argue that politics

is also an issue germane to effective supply chain

management (SCM) execution. Two themes emerge

when considering the vast literature exploring antece-

dents to SCM effectiveness: first, the importance of

integration both within and between firms in supply

chains and second, the need for a strategic emphasis

on SCM to strengthen and facilitate effective SCM

decision making—often referred to in the literature as

supply chain orientation (SCO) (Mentzer et al.,

2001). We observe anecdotal evidence that political

cultures within firms may compromise both internal

integration and SCO (Blossom, 1995; Piercy, 2007),

and use this as the foundation for our study.

Specifically, drawing on social exchange theory

(SET) and social/political influence theory, we explore

how the proactive management of POPS by a firm’s

highest ranking supply chain management executive

may mitigate POPS’ adverse effects on supply chain

initiatives and internal integration. In line with the

introductory example, we theorize that the perceived

political skill of the top SCM Executive plays a key

role in advancing the firm’s SCO and internal integra-

tion efforts, particularly in the face of otherwise politi-

cally unhealthy environments. Our proposition is that

the cultivation of a strong SCO through perceived

political maneuvering serves as a counteracting force

that inoculates operations employees from the lack of

integration that is characteristic of highly political

organizations. We test the hypotheses using structural

equation modeling, applied to data collected exclu-

sively in the U.S. retailing sector.

Our findings offer interesting insights regarding the

role and impact of supply chain executives on supply

chain operations via a proactive approach to manag-

ing firm politics. We observe from our analysis that

perceived organizational politics negatively affects

internal integration. However, as the top supply chain

executive is increasingly politically skilled, organiza-

tional politics are more positively associated with

SCO, which ultimately drives increased integration. In

essence, the findings underscore that politically skilled

supply chain executives play a critical role in harness-

ing firm politics, such that supply chain strategies and

processes can thrive in the face of political maneuvers

that would otherwise impede them.

By investigating the perceived influence of supply

chain leaders relative to the socio-political nature of

intrafirm supply chain environments, this research

complements the work of Villena, Gomez-Mejia and

Revilla (2009), which found that attributes of the

leading supply chain executive could impact external

integration. Furthermore, considering the various

behavioral perceptions and influences that permeate a

firm’s operational environment (Bendoly, Perry-Smith

& Bachrach, 2010), this work contributes to the

behavioral operations literature by addressing calls for

more work on political issues (Mantel, Tatikonda &

Liao, 2006). Thus, this study brings fresh perspectives

to the role of SCM leadership and more clearly illumi-

nates how employee perceptions of the individual

characteristics and capabilities of SCM Executives may

impact operations strategies and dynamics.

LITERATURE REVIEW

Without question, supply chains are social entities

that are directly affected by the perceptions, behav-

ioral norms, and social dynamics of individuals

responsible for managing supply chain exchange and

October 2016 43

Politics and Supply Chain Management