The impact of supply chain integration on firm performance

2014 ◽  
Vol 19 (4) ◽  
pp. 369-384 ◽  
Author(s):  
Baofeng Huo ◽  
Yinan Qi ◽  
Zhiqiang Wang ◽  
Xiande Zhao
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Financial Performance ◽  
Survey Methodology ◽  
The Body ◽  
Supply Chain Integration ◽  
Strategic Choices ◽  
Competitive Strategies ◽  
Content Type ◽  
The Impact

Purpose – This paper aims to provide empirical evidence of the effectiveness of various supply chain integration (SCI) practices under different competitive strategies in terms of cost leadership and differentiation. Design/methodology/approach – Survey methodology was used to collect data from 604 Chinese manufacturers. Hierarchical linear regression was used to analyze the moderating effects. Findings – The results showed that competitive strategies significantly influenced the effectiveness of SCI practices, including internal, process and product integration. More specifically, internal integration significantly affected the financial performance of cost leaders, while process integration contributed more to the financial performance of differentiators. However, competitive strategies had no significant moderating effect on the relationship between SCI and operational performance. Research limitations/implications – This study contributes to the literature by exploring the effectiveness of various SCI practices in relation to firm performance under different competitive strategies. The results should be treated with caution, as they may be more meaningful in China. Practical implications – The findings clarify the alignment of SCI with competitive strategies for practitioners, so that they can allocate their limited resources to build various SCI capabilities based on their strategic choices. Originality/value – The results enhance the body of knowledge on SCI from the perspective of contextual factors to explore its effectiveness at a more detailed level. This study extends the literature on the match between competitive strategies and SCI in improving financial performance.

Supply chain integration and firm performance: an empirical study of Swedish manufacturing firms

2014 ◽  
Vol 24 (1) ◽  
pp. 20-31 ◽  
Author(s):  
Hooshang M. Beheshti ◽  
Pejvak Oghazi ◽  
Rana Mostaghel ◽  
Magnus Hultman
Keyword(s):  
Supply Chain ◽  
Financial Performance ◽  
Well Being ◽  
Survey Instrument ◽  
Global Market ◽  
Manufacturing Firms ◽  
Supply Chain Integration ◽  
Manufacturing Companies ◽  
Content Type ◽  
The Impact

Purpose – This article aims to explore the impact of supply chain integration on the financial performance of Swedish manufacturing firms. Design/methodology/approach – The literature review provided the foundation for the development of the survey instrument and hypotheses for the study. In addition, the survey instrument was tested by the experts in the field and modified before it was sent to the managers in the survey group. Findings – The findings show that supply chain integration at any level is beneficial to the financial well being of the firm. Companies with total supply chain integration reported the highest level of financial performance. Research limitations/implications – Data were collected from Swedish manufacturing firms without regard to the size of the firm. The results show that supply chain integration is beneficial at any level. Practical implications – The findings will assist managers with decisions regarding supply chain integration and its role as a critical factor in improving the financial performance of manufacturing companies. Originality/value – Limited empirical studies have been conducted in this area, especially in Sweden. This study provides insight for manufacturing managers with regard to the importance of supply chain management and the competitive nature of business in the global market.

scholarly journals Re-evaluating supply chain integration and firm performance: linking operations strategy to supply chain strategy

2019 ◽  
Vol 24 (4) ◽  
pp. 540-559 ◽  
Author(s):  
Frank Wiengarten ◽  
Huashan Li ◽  
Prakash J. Singh ◽  
Brian Fynes
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Supply Chain Integration ◽  
Operations Strategy ◽  
Competitive Priorities ◽  
Content Type ◽  
Supply Chain Strategy ◽  
Performance Improvements ◽  
Strategic Perspective ◽  
The Impact

Purpose This paper aims to explore the performance implications of supply chain integration (SCI) taking a strategic perspective. Thus, this paper is set to provide answers to the following research questions: Does a higher degree of SCI always lead to greater firm performance improvements? As the answer to this question is likely to be no, the authors explore the performance implications from a strategic perspective: Is the SCI–performance relationship contingent on a company’s competitive priorities (i.e. operations strategy)? Design/methodology/approach The authors explore their questions through multiple quasi-independent data sets to test the impact of SCI on firm performance. Furthermore, the authors provide a more nuanced conceptual and empirical view to explore the previously uncovered contradictory results and contingent relationship challenging the “more integration equals higher firm performance” proposition. Findings The results only provide partial support for the proposition that more integration is always beneficial in the supply chain context. The authors also identified that the impact of SCI on financial performance is contingent on a company’s competitive priorities. Originality/value This study provides a much-needed comprehensive assessment of the SCI–performance relationship through critically re-evaluating one of the most popular propositions in the field of supply chain management. The results can be extrapolated beyond the dyad, as the authors conceptualise integration simultaneously from an upstream and downstream perspective.

Drivers of supply chain integration and the role of organizational culture

2016 ◽  
Vol 22 (1) ◽  
pp. 89-115 ◽  
Author(s):  
Erlinda N. Yunus ◽  
Suresh K. Tadisina
Keyword(s):  
Organizational Culture ◽  
Supply Chain ◽  
Firm Performance ◽  
Manufacturing Firms ◽  
Supply Chain Integration ◽  
Equation Modeling ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose – Supply chain integration (SCI) is a set of practices driven by many factors and circumstances. The purpose of this paper is to examine firms’ internal and external drivers of SCI, evaluate the impact of the integration on firm performance, and further investigate the moderating role of organizational culture in strengthening the relationships between firms’ drivers and SCI. Design/methodology/approach – For the purpose of this study, manufacturing firms were identified as the focal firms in supply chains, and thus data were collected through a survey of 223 Indonesian-based manufacturing firms. Two informants from each firm became the respondents. Structural equation modeling was used to analyze the data. Findings – This study confirmed the positive relationship between SCI and firm performance. The results also indicated that internal driver, or specifically firms’ customer orientation (CO), triggered the initiation of SCI. Organizational culture, in terms of external focus, positively influenced the relationship between CO and SCI. Research limitations/implications – This study illustrates the important role of organizational culture in determining the shape of the relationship between firms’ drivers and SCI. The results of this study enhance the understanding of SCI, especially related to types of organizational culture that could promote the integration. Originality/value – This study brings a different dimension of SCI as this study provides evidence from a developing country, which might implement different practices as compared those of developed countries. This study provides a measure of internal drivers, which has not been empirically investigated. The new measure was tested and validated using a rigorous process, and thus could be employed in other studies with different settings.

Mediating role of immediate performance outcomes between supply chain integration and firm performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nikhat Afshan ◽  
Purnendu Mandal ◽  
Angappa Gunasekaran ◽  
Jaideep Motwani
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Financial Performance ◽  
Performance Outcomes ◽  
Supply Chain Integration ◽  
Equation Modeling ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship

PurposeThe purpose of this paper is to examine the mediating role of immediate performance outcomes on the relationship between dimensions of supply chain integration (SCI) and financial performance.Design/methodology/approachThis study tests the proposed model linking dimensions of SCI, immediate performance outcomes and financial performance using structural equation modeling on a sample of Indian manufacturing companies.FindingsThe findings suggest that the relationship between dimensions of SCI and firm performance is fully mediated through the immediate performance outcomes.Originality/valueThis study deals with the potential benefits of SCI, especially in developing countries like India, where a little research has been done in this area. Also, this study provides support to practitioners that SCI is an effective way of improving both supply chain performance and financial performance.

scholarly journals Supply chain integration, risk management and manufacturing flexibility

2018 ◽  
Vol 38 (3) ◽  
pp. 690-712 ◽  
Author(s):  
Atanu Chaudhuri ◽  
Harry Boer ◽  
Yariv Taran
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Manufacturing Firms ◽  
The Body ◽  
Supply Chain Integration ◽  
Manufacturing Flexibility ◽  
Manufacturing Strategy ◽  
Content Type ◽  
Internal Integration ◽  
The Impact

Purpose The purpose of this paper is to investigate the impact of internal integration, external integration (EI), and supply chain risk management (SCRM) on manufacturing flexibility, and the moderating effect of SCRM on the relationships between internal and EI, respectively, and manufacturing flexibility. Design/methodology/approach Using hierarchical regression, data are analyzed from a sample of 343 manufacturing plants in Asia collected in 2013-2014 as part of the International Manufacturing Strategy Survey (IMSS VI). Findings Internal integration and SCRM have a direct effect on manufacturing flexibility. SCRM moderates the relationship between EI and flexibility. Research limitations/implications Further research is needed to generalize beyond the flexibility performance of discrete manufacturing firms in Asia. Practical implications To benefit from EI and increase their flexibility performance, manufacturing firms need to implement different mechanisms of SCRM to prevent and deal with supply chain risks including those associated with supply chain integration. Originality/value This research contributes to the body of knowledge on the relationships between internal integration, EI, SCRM, and manufacturing flexibility.

An empirical examination of firm financial performance along dimensions of supply chain resilience

2017 ◽  
Vol 40 (3) ◽  
pp. 254-269 ◽  
Author(s):  
Xun Li ◽  
Qun Wu ◽  
Clyde W. Holsapple ◽  
Thomas Goldsby
Keyword(s):  
Supply Chain ◽  
Financial Performance ◽  
Three Dimensions ◽  
Empirical Examination ◽  
Content Type ◽  
Supply Chain Resilience ◽  
Critical Dimensions ◽  
Firm Financial Performance ◽  
Supply Chain Agility ◽  
The Impact

Purpose This paper aims to investigate the impact of three critical dimensions of supply chain resilience, supply chain preparedness, supply chain alertness and supply chain agility, all aimed at increasing a firm’s financial outcomes. In a turbulent environment, firms require resilience in their supply chains to prepare for potential changes, detect changes and respond to actual changes, thus providing superior value. Design/methodology/approach Using survey data from 77 firms, this study develops scales for preparedness, alertness and agility. It then tests their hypothesized relationships with a firm’s financial performance. Findings The results reveal that the three dimensions of supply chain resilience (i.e. preparedness, alertness and agility) significantly impact a firm’s financial performance. It is also found that supply chain preparedness, as a proactive resilience capability, has a greater influence on a firm’s financial performance than the reactive capabilities including alertness and agility, suggesting that firms should pay more attention to proactive approaches for building supply chain resilience. Originality/value First, this study develops a comparatively comprehensive definition for supply chain resilience and explores its dimensionality. Second, this study provides empirically validated instruments for the dimensions of supply chain resilience. Third, this study is one of the first to provide empirical evidence for direct impact of supply chain resilience dimensions on a firm’s financial performance.

Market orientation, innovation commercialization capability and firm performance relationships: the moderating role of supply chain influence

2017 ◽  
Vol 32 (7) ◽  
pp. 913-924 ◽  
Author(s):  
Jeen-Su Lim ◽  
William K. Darley ◽  
David Marion
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Market Orientation ◽  
Innovation Management ◽  
Strategy Formulation ◽  
Content Type ◽  
Positive Effects ◽  
The Impact ◽  
Moderating Role

Purpose The study aims to explore supply chain influence (SCI) on the linkages among market orientation, innovation capabilities and firm performance (FP), using the resource-based view as a theoretical backdrop. Design Survey data from 182 top managers who are involved in strategy formulation and innovative direction of their companies was collected and analyzed using moderated multiple regression analysis. Findings Results revealed a moderating role of the SCI in that the proactive market orientation (PMO) and FP relationship is stronger when SCI is high, and innovation commercialization capability (ICC) and FP relationship is stronger when SCI is low. Practical implications Firms pursuing high PMO strategy must collaborate with supply chain function to achieve the full effect of PMO. Additionally, as supply chain is critical to meeting customers’ needs, these firms should allow supply chain to exert greater influence to enjoy the positive effects of PMO in addition to ensuring full integration into marketing strategy implementation. Also, firms with high ICC need to limit SCI to maximize the benefit of ICC on FP, just as innovation management needs to be cognizant of other functional areas. Originality/value The study investigates the potential moderating role of SCI on the relationships among market orientation, ICC and FP. The study fills a gap in the understanding of the nature and role of supply chain in the marketing–supply chain interaction, and the impact on FP.

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.

scholarly journals Investigating the Path from Supply Chain Integration to Business Performance: Evidence from a Sub-Saharan African Economy

2016 ◽  
Vol 11 (6) ◽  
pp. 225 ◽  
Author(s):  
Jonathan Annan ◽  
Nathaniel Boso ◽  
Dominic Essuman
Keyword(s):  
Supply Chain ◽  
Life Cycle ◽  
Financial Performance ◽  
Value Creation ◽  
Coming Out ◽  
Product Life Cycle ◽  
Business Performance ◽  
Supply Chain Integration ◽  
Primary Data ◽  
The Impact

Following the growing concerns on the inconsistent findings in previous research and drawing on the social exchange and networking theories, this study re-examined the impact of supply chain integration (SCI) on business performance (i.e. value creation and financial performance). The study argues that the impact of SCI on financial performance is through value creation and is depended upon longevity of product life cycle. Using primary data from 79 firms in Ghana, the study finds that value creation is a short-run consequence of SCI while financial performance is a long-run outcome of SCI. Additionally, results show that the financial performance outcome of SCI is experienced more from integrative efforts than from the value creation outcome. Results further indicate that firms whose products stay relatively shorter on the market are more likely to experience lower positive impact of SCI on value creation, and thus firms’ ability to become proactive, monitor, and collect market information on product performance throughout its life cycle is key for coming out with strategies that will enable them maximize product’s life span so as to experience greater benefits that come with pursuing integration with other channel members.

scholarly journals Inclusive environmental disclosure practices and firm performance

2018 ◽  
Vol 38 (9) ◽  
pp. 1815-1835 ◽  
Author(s):  
Annachiara Longoni ◽  
Raffaella Cagliano
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Financial Performance ◽  
Environmental Performance ◽  
Environmental Disclosure ◽  
Conceptual Foundation ◽  
Chain Management ◽  
Content Type ◽  
Positive Effects ◽  
The Impact

Purpose Little empirical work has been done on the effects of inclusive environmental disclosure and green supply chain management (GSCM) on firm outcomes. The literature on environmental disclosure suggests that it is a useful practice to improve a firm’s reputation and its financial performance and also to establish a dialogue with stakeholders improving environmental performance. Recent conceptual contributions in the supply chain management literature state that stakeholder expectations and informational needs increasingly concern firm supply chains. Thus, the authors propose that positive effects of inclusive environmental disclosure practices are enhanced in presence of GSCM practices. The paper aims to discuss these issues. Design/methodology/approach To test these relationships a combination of primary data on environmental disclosure practices, GSCM practices and environmental performance, and secondary data on financial performance was used. A series of hierarchical regression models were performed to test the disclosure-outcome relationships and the moderation of GSCM practices. Findings Results provide empirical support for the impact of inclusive environmental disclosure practices on financial performance but no support for the impact on environmental performance. Specifically, the more inclusive the environmental disclosure practices the greater and positive is the impact on financial performance in presence of GSCM practices. Originality/value This study provides empirical evidence of the joint effects of inclusive environmental disclosure and GSCM practices on environmental and financial performance. Doing so, it reinforces the recent conceptual foundation that firms should align and leverage on supply chain management for disclosure practice effectiveness.

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