Value Creation of Supply Chain Cooperation: Theory with Evidence from Chinese Coal and Power Enterprises

This paper presents a theoretical explanation of creating value through supply chain cooperation and tests it with data from the coal and power industries of China. Our theoretical analysis is based upon findings in a number of fields, including transaction cost economics theory, social exchange theory, etc. In addition, an empirical analysis is provided by using data collected through questionnaire. Four specific indicators of supply chain cooperation value and five factors affecting it are put forward. We find that the improvement of relationship, transaction process as well as enterprise capacity significantly influence the market performance of electric power companies. Trust degree, price risk, risk of supply and demand and transaction frequency influence the value of supply chain cooperation, among which trust degree has the most significant impact.