The influence of supply chain integration on operational performance

2017 ◽  
Vol 28 (2) ◽  
pp. 444-463 ◽  
Author(s):  
Kum Fai Yuen ◽  
Vinh Van Thai
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Supply Chain Integration ◽  
Operational Performance ◽  
Implicit Assumption ◽  
Content Type ◽  
Service Companies ◽  
Internal Integration ◽  
Service Supply Chains ◽  
The Relationship

Purpose An implicit assumption of current supply chain integration (SCI) research is that the results obtained from product supply chains can be directly extrapolated to service supply chains. The purpose of this paper is to question this assumption of equivalence by proposing that the effects of internal integration (II) and external integration (EI) on operational performance (OP) are contingent on whether a firm operates in a product and service supply chain. Design/methodology/approach Drawing on the contingency theory, a model that specifies and contrasts the interrelationships between II, EI, and OP in product and service supply chains was proposed. Subsequently, measures were developed and survey data were collected from 138 product and 174 service companies in Singapore. The data were then analysed using multi-sampling analysis. Findings The effects of II and EI on OP varied significantly between product and service supply chains. In addition, the relationship between II and OP was found to be partially mediated by EI in product supply chains whereas a fully mediated relationship was observed in service supply chains. Research limitations/implications Within the context of SCI, different mediation patterns exist in product and service supply chains. The results suggest adopting a contingency rather than a universalistic approach in the management of firms’ internal and external integrative capabilities to maximise OP. Specifically, managers should adjust their II and EI efforts to achieve congruency with the type of supply chain they serve. Originality/value This paper tests the assumption of equivalence and extends the current scope of SCI contingency research by cross-examining the effects of II and EI on OP in both product and service supply chains simultaneously.

scholarly journals Interplant coordination, supply chain integration, and operational performance of a plant in a manufacturing network: a mediation analysis

2016 ◽  
Vol 21 (5) ◽  
pp. 550-568 ◽  
Author(s):  
Yang Cheng ◽  
Atanu Chaudhuri ◽  
Sami Farooq
Keyword(s):  
Supply Chain ◽  
Positive Impact ◽  
Supply Chain Integration ◽  
Operational Performance ◽  
Data Set ◽  
Content Type ◽  
Internal Integration ◽  
Manufacturing Network ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to investigate the relationships at the level of plant in a manufacturing network, labelled as networked plant in the paper, between inter-plant coordination and operational performance, supply chain integration (SCI) and operational performance and inter-plant coordination and SCI. Design/methodology/approach This paper is developed based on the data obtained from the sixth version of International Manufacturing Strategy Survey (IMSS VI). Specifically, this paper uses a subset of the IMSS VI data set from the 606 plants that identified themselves as one of the plants in a manufacturing network. Findings This paper finds that external integration is significantly related to operational performance of networked plant, whereas internal integration is not. As an enabler for external integration, the influence of internal integration on operational performance of networked plant is mediated by external integration. This paper also provides evidence to the purported positive impact of internal integration on inter-plant coordination, as well as the positive impact of inter-plant coordination on external integration. It further suggests that inter-plant coordination can influence operational performance of networked plant through external integration and also mediate the relationship from internal integration to performance through external integration. Originality/value This paper contributes to the SCI literature and extends the understanding of the impact of SCI on the operational performance by selecting networked plant as a unit of analysis. Besides, this paper distinguishes inter-plant coordination from SCI and investigates the relationship between inter-plant coordination, SCI, and operational performance for the first time.

scholarly journals Environmental scanning, supply chain integration, responsiveness, and operational performance

2019 ◽  
Vol 39 (5) ◽  
pp. 787-814 ◽  
Author(s):  
Wantao Yu ◽  
Roberto Chavez ◽  
Mark Jacobs ◽  
Chee Yew Wong ◽  
Chunlin Yuan
Keyword(s):  
Supply Chain ◽  
Structural Equation ◽  
Business Environment ◽  
Supply Chain Integration ◽  
Operational Performance ◽  
Equation Modeling ◽  
Environmental Scanning ◽  
Content Type ◽  
Processing Theory ◽  
The Relationship

Purpose It remains unclear how environmental scanning (ES) can generate firm performance through supply chain management (SCM) practices. The purpose of this paper is to investigate the effects of ES on operational performance through supply chain integration (SCI) and supply chain responsiveness (SCR). Design/methodology/approach The scanning–interpretation–action–performance (SIAP) model and organization information processing theory (OIPT) are used to explain the ES–SCI–SCR–performance (S–I–A–P) relationships, which were tested by structural equation modeling of survey data of 329 manufacturing firms in China. Findings The results indicate that ES has a significant positive effect on SCI and SCR. SCI is significantly and positively related to SCR. SCR partially mediates the relationship between ES and operational performance, and fully mediates the relationship between SCI and operational performance. Practical implications Supply chain managers should collaborate with senior executives to obtain signals from ES activities, as input for building SCI and SCR and use SCI as a joint interpretation mechanism of ES signals for developing SCR to reap operational advantages in the rapidly changing business environment. Originality/value Strategic management academics and practitioners have explicitly emphasized the importance of ES in developing strategic plans but are unsure about the role of SCM in creating operational advantages through ES. Using the SIAP model, this study theorizes and demonstrates how SCI and SCR transform signals from ES into operational performance. In doing so, a more precise application of OIPT is explicated in the supply chain context.

Inhibitors and enablers of supply chain integration across multiple supply chain tiers: evidence from Malawi

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kizito Elijah Kanyoma ◽  
Frank Wogbe Agbola ◽  
Richard Oloruntoba
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Interpersonal Relationships ◽  
Supply Chain Integration ◽  
Content Type ◽  
Face To Face ◽  
Focal Firm ◽  
Culture Of Fear ◽  
Major Supplier ◽  
Internal Integration

PurposeThis paper investigates the inhibitors and enablers of supply chain integration (SCI) across multiple tiers in the supply chains of manufacturing-based small and medium-sized enterprises (SMEs) in Malawi.Design/methodology/approachFollowing a qualitative approach, data were collected through face-to-face interviews across three supply chains, each consisting of a focal manufacturer, a major supplier and a retailer.FindingsThe research identified interpersonal relationships, supplier cost transparency and joint supply chain management (SCM) investments as key enablers of SCI. Concerning the inhibitors of SCI, the study found that a lack of external integration inhibited internal integration by acting as a source of disruption to intra-firm processes and relationships. Further, the research found weaker links between manufacturer–-retailer dyads than in manufacturer–supplier dyads, which constrained the ability to achieve multi-tier supplier–manufacture–retailer integration. The study also revealed that resource and infrastructural deficiencies, a culture of fear and intimidation within and between firms, corruption in sourcing transactions and a lack of inter-firm trust inhibited SCI.Research limitations/implicationsThe paper extends earlier evidence that internal integration is a prerequisite for external integration demonstrating that a basic level of external integration is necessary to prevent disruptions to internal integration.Originality/valueThis study is one of the few to go beyond the focal firm perspective and explore the inhibitors and enablers of SCI across multiple supply chain positions, and provides new evidence on the role of external integration in achieving internal integration.

scholarly journals The mediating effect of internal integration on the relationship between supply chain integration and operational performance: Evidence from Moroccan manufacturing companies

2019 ◽  
Vol 12 (2) ◽  
pp. 254 ◽  
Author(s):  
Mohamed Errassafi ◽  
Hassan Abbar ◽  
Zahra Benabbou
Keyword(s):  
Supply Chain ◽  
Mediating Effect ◽  
Supply Chain Integration ◽  
Organizational Capabilities ◽  
Operational Performance ◽  
Manufacturing Companies ◽  
Customer Integration ◽  
Supplier Integration ◽  
Internal Integration ◽  
The Relationship

Purpose: This paper aims to explain the direct effect of supply chain integration on operational performance of manufacturing companies and the mediating effect of internal integration on the relationship between external integration and operational performance.Design/methodology/approach: From an organizational capabilities perspective we consider internal integration as a set of intra-organizational capabilities and customer integration and supplier integration as a set of inter-organizational capabilities. In the basis of a sample of 75 Moroccan manufacturing companies, we used PLS – Structural Equation Modeling to study the direct effect of customer integration, internal integration and supplier integration on operational performance of manufacturers and to analyze the mediating effect of internal integration. Findings: The results show that customer integration, internal integration and supplier integration are all positively and significantly related to operational performance of the manufacturer and internal integration mediates relationship between costumer integration and operational performance but not relationship between supplier integration and operational performance.     Research limitations/implications: This study focuses on a set of best practices for integrating flows and business processes that industrial companies need to implement in order to create value for final consumer and show how to use internal integration practices to benefit more from external integration.Originality/value: The result of this study extends the developing body of literature on supply chain integration by analyzing the effect of interaction between internal and external integration on the operational performance towards an organizational capabilities perspective in a specific Moroccan industrial context.

Does plant role moderate relationship between internal manufacturing network integration, external supply chain integration, operational performance in manufacturing network?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yang Cheng ◽  
Sami Farooq ◽  
Muhammad Shakeel Sadiq Jajja
Keyword(s):  
Supply Chain ◽  
Mediating Effect ◽  
Supply Chain Integration ◽  
Operational Performance ◽  
Manufacturing Strategy ◽  
Network Integration ◽  
Data Set ◽  
Content Type ◽  
Manufacturing Network ◽  
The Relationship

PurposeThis paper aims to investigate the moderating effects of the role a plant plays in a manufacturing network on the relationships between its level of integration with other plants in the same manufacturing network (referred as “internal manufacturing network integration” in this paper), its interactions with suppliers/customers (referred as “external supply chain integration” in this paper), and its operational performance.Design/methodology/approachThis paper is based on the data from the sixth version of International Manufacturing Strategy Survey (IMSS VI). Specifically, this paper uses a subset of the IMSS VI data set from the 606 plants that identified themselves as one of the plants in a manufacturing network.FindingsThe results demonstrate plant role has a moderating effect on the relationship between internal manufacturing network integration and external supply chain integration, but not on the relationship between external supply chain integration and operational performance. Our research also highlights that plant role moderates the mediating effect of external supply chain integration on the relationship between internal manufacturing network integration and operational performance. More importantly, it indicates that if a plant wants to significantly increase its operational performance, it will have to strengthen its linkages with supply chain partners, no matter which role it plays in manufacturing network.Originality/valueThis paper supplements the existing research by developing further understandings on the relationship between internal manufacturing network integration, external supply chain integration and operational performance. Specifically, it examines the influence of plant role on such relationship and reveals the essence about in what context (in terms of plant characteristics) internal manufacturing network integration influences the operational performance of a plant in a manufacturing network through external supply chain integration.

Effects of cloud computing assimilation on supply chain financing risks of SMEs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Qiang Lu ◽  
Jinliang Chen ◽  
Hua Song ◽  
Xiangyu Zhou
Keyword(s):  
Cloud Computing ◽  
Supply Chain ◽  
Small And Medium Enterprises ◽  
Supply Chain Integration ◽  
Content Type ◽  
Supply Chain Financing ◽  
Medium Enterprises ◽  
The Relationship ◽  
Moderating Role

Purpose The purpose of this study is to examine how cloud computing assimilation reduces supply chain financing (SCF) risks of small and medium enterprises (SMEs). This study also investigated the mediating roles of internal and external supply chain integration between cloud computing assimilation and the SCF risks of SMEs, as well as the moderating role of environmental competitiveness. Design/methodology/approach Data was collected from surveys of SMEs located in China. Multiple regression analysis was used to validate the proposed theoretical model and research hypotheses. Findings The findings show that cloud computing assimilation could reduce the SCF risks of SMEs directly. The results also indicate that both internal and external supply chain integration mediate the relationship between cloud computing assimilation and SCF risks. Furthermore, environmental competitiveness inhibits the effects of cloud computing assimilation on SCF risks. Originality/value To our best knowledge, this is the preliminary study to explore the role of cloud computing assimilation in reducing the SCF risks of SMEs. Also, this study attempted to investigate the process by which cloud computing assimilation affects the SCF risks of SMEs.

The mediating effect of supply chain flexibility on the relationship between supply chain integration and supply chain performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anurodhsingh Khanuja ◽  
Rajesh Kumar Jain
Keyword(s):  
Supply Chain ◽  
Survey Methodology ◽  
Mediating Effect ◽  
Supply Chain Integration ◽  
Supply Chain Performance ◽  
Business Practices ◽  
Chain Flexibility ◽  
Content Type ◽  
Supplier Integration ◽  
The Relationship

PurposeSupply chain integration (SCI) and flexibility (SCF) are recognised as crucial business practices and capability in the global competitive market. However, limited research has paid attention to study the relationship between SCI, SCF and their impact on supply chain performance (SCP). Therefore, the purpose of this paper is to establish a relationship between integration, flexibility and performance.Design/methodology/approachThe structural equation modelling technique was used to analyse the 187 data collected from Indian organisations through the survey methodology.FindingsFindings indicate that external integration contributes significantly to realise SCF and SCP. Sourcing and logistics flexibility also help to improve the SCP. The mediation analysis showed that the association of customer and supplier integration with SCP is partially and fully mediated by logistics flexibility, respectively. This study suggests that integration influences the SCP when the firm has a strong association with downstream partners and enough capability for logistics flexibility.Research limitations/implicationsThe study has collected cross-sectional data to analyse the relationship between SCI, SCF and SCP. However, as integration requires an effort of the years, longitudinal data and industry-specific studies may provide comprehensive views to validate the results of this study.Originality/valueBuilding on relational view theory and dynamic capability theory, the study has proposed the SCP assessment framework based on the relationship between SCI and SCF.

The relationship between internal supply chain structure and operational performance: survey results from Japanese manufacturers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mikihisa Nakano ◽  
Kazuki Matsuyama
Keyword(s):  
Supply Chain ◽  
Structural Properties ◽  
Operations Management ◽  
Chain Structure ◽  
Operational Performance ◽  
Equation Modeling ◽  
Content Type ◽  
Wide Range ◽  
Supply Chain Structure ◽  
The Relationship

Purpose The purpose of this paper is to discuss the roles of a supply chain management (SCM) department. To achieve that, this study empirically examines the relationship between internal supply chain structure and operational performance, using survey data collected from 108 Japanese manufacturers. Design/methodology/approach Based on a literature review of not only organizational theory but also other fields such as marketing, logistics management, operations management and SCM, this study focused on two structural properties, formalization and centralization and divided operational performance to firm-centric efficiency and customer-centric responsiveness. To examine the analytical model using these dimensions, this study conducted a structural equation modeling. Findings The correlation between centralization of operational tasks and centralization of strategic tasks, the impacts of centralization of both tasks on formalization and the effect of formalization on responsiveness performance were demonstrated. In addition, the reasons for formalization not positively influencing efficiency performance were explored through follow-up interviews. Practical implications Manufacturers need to formalize, as much as possible, a wide range of SCM tasks to realize operational excellence. To establish such formalized working methods, it is effective to centralize the authorities of both operational and strategic tasks in a particular department. In addition, inefficiency due to strict logistics service levels is a problem that all players involved in the supply chain of various industries should work together to solve. Originality/value The theoretical contribution of this study is that the authors established an empirical process that redefined the constructs of formalization and centralization, developed these measures and examined the impacts of these structural properties on operational performance.

Trust, power and supply chain integration in Web-enabled supply chains

2019 ◽  
Vol 24 (4) ◽  
pp. 524-539 ◽  
Author(s):  
Carlo Mora-Monge ◽  
Gioconda Quesada ◽  
Marvin E. Gonzalez ◽  
Joshua M. Davis
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Business Performance ◽  
Dynamic Capabilities ◽  
Social Capital Theory ◽  
Supply Chain Integration ◽  
Trading Partner ◽  
Capital Theory ◽  
Content Type ◽  
The Social

Purpose This study aims to examine the effects of trading partner trust and trading partner power, on supply chain integration, and their impact on business performance in the context of Web-enabled supply chains. In doing so, the authors extend previous studies by exploring this phenomenon by using an integrative theory-driven approach. Design/methodology/approach This study presents a theoretical model grounded on the resource-based and dynamic capabilities views and the social capital theory. Data collected from 175 firms in the USA are used to test the hypotheses using structural equation modeling. Findings Results highlight the importance of trust and supply chain integration on business performance, whereas power did not appear to have an effect on supply chain integration in Web-enabled supply chains. The findings are robust to concerns of endogeneity, common method bias and alternative model specification. Practical implications Companies engaged in Web-enabled supply chains need to focus on increasing their integration efforts, and these efforts must also be accompanied by partnerships built on trust. Trading partners who might be inclined to use coercive strategies to influence other members of the supply chain in Web-enabled environments may be better off using cooperative approaches based on trust to achieve their desired goals. Originality/value This study integrates the resource-based view, dynamic capabilities view and the social capital theory to explore the dynamic relationships between trading partner trust, trading partner power and supply chain integration in Web-enabled supply chains. In doing so, this paper extends prior studies by examining supply chain integration’s impact on business performance and its mediating role, as it relates to trading partner trust and power in Web-enabled supply chains.

Exploratory analysis on the relationship between strategy and structure/processes in supply chains

2015 ◽  
Vol 26 (2) ◽  
pp. 381-400 ◽  
Author(s):  
Mikihisa Nakano
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Customer Service ◽  
Operating Cost ◽  
Exploratory Analysis ◽  
Process Variables ◽  
Content Type ◽  
Strategy And Structure ◽  
High Level ◽  
The Relationship

Purpose – The purpose of this paper is to provide some empirical evidence of the relationship between strategy and structure/processes in supply chains on the basis of the results of an exploratory analysis using survey data from Japanese manufacturers. Design/methodology/approach – This study explores the differences of structure/processes among the four supply chain strategies, that is, efficient, responsive, efficient/responsive, and traditional. Specifically, this study conducts a one-way analysis of variance of the structure/process variables by supply chain strategies. Findings – As the results of exploratory analysis including follow-up interviews with survey respondents, this study found many differences between traditional and efficient/responsive firms on process variables. With regard to structure variables, the existence of a supply chain management department, which is a variable of internal structure, in responsive and efficient/responsive firms is statistically more likely than in efficient firms. In addition, this study found significant differences between efficient and responsive firms, and traditional firms on some variables of external structure. Research limitations/implications – The results of this study explain why efficient/responsive firms can achieve high level of customer service and low operating cost, which is demonstrated by Qi et al. (2009). In addition, this study statistically ensures the validity of Stavrulaki and Davis’s (2010) proposition that firms with agile strategy tend to conduct opportunistic collaboration or have collaborative barriers with their suppliers because of their flexible supply base. Originality/value – This is the first empirical study that explores the relationship among management elements in supply chains including not only strategy but also structure and processes. Through this study, it is implied that the strategy-structure-processes-performance paradigm adopted in this study is useful for exploring the patterns of other management elements that fit in with supply chain strategies.

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