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.

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.

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.

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 In pursuit of supply chain fit

2019 ◽  
Vol 30 (3) ◽  
pp. 821-844 ◽  
Author(s):  
Yasmine Sabri
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Firm Performance ◽  
Conceptual Framework ◽  
Organisational Structure ◽  
Content Type ◽  
Supply Chain Strategy ◽  
Corporate Groups ◽  
The Relationship

Purpose The purpose of this paper is to develop exploratory propositions and a conceptual framework on the interaction between organisational structure (decision-making centralisation and internal coordination) and the relationship between supply chain fit and firm performance. Design/methodology/approach Through a case study, two corporate groups with distinctive organisational structures were examined; both are undergoing a critical moment of changes to their top management and are reshaping their corporate and supply chain strategies. Data on decision-making centralisation, internal coordination mechanisms, supply, demand and innovation uncertainties, and supply chain strategies were collected from key respondents. Findings The analysis conducted suggests the need to consider the joint interaction between organisational structure and supply chain fit in offsetting the implications of a potential misfit on firm performance. Furthermore, the context sensitivity of a supply chain is often overlooked, hence simply modifying supply chain strategy does not necessarily lead to a variation in firm performance. Practical implications This research is of particular importance to most organisations in the testing times of uncertainty in the global landscape. It guides supply chain practitioners to better understand which elements of the organisational structure interact with the uncertainty of supply, demand and innovation. Originality/value This paper is one of the first to investigate the interaction between elements of organisational structure and supply chain fit and identify decision-making centralisation and coordination as the internal uncertainty factors that are most relevant to supply chain fit research. A conceptual framework has been built for future testing, in which the organisational structure moderates the relationship between supply chain fit and firm performance.

The impact of organizational culture on supply chain integration: a contingency and configuration approach

2015 ◽  
Vol 20 (1) ◽  
pp. 24-41 ◽  
Author(s):  
Zhi Cao ◽  
Baofeng Huo ◽  
Yuan Li ◽  
Xiande Zhao
Keyword(s):  
Organizational Culture ◽  
Supply Chain ◽  
Synergistic Effects ◽  
Supply Chain Integration ◽  
Three Dimensions ◽  
Theoretical Terms ◽  
Content Type ◽  
Supplier Integration ◽  
The Impact ◽  
The Relationship

Purpose – This study aims to bridge the gap in understanding the effects of organizational culture on supply chain integration (SCI) by examining the relationships between organizational cultures and SCI. The extant studies investigating the antecedents of SCI focus mainly on environments, interfirm relationships and other firm-level factors. These studies generally overlook the role of organizational culture. The few studies that do examine the effects of organizational culture on SCI show inconsistent findings. Design/methodology/approach – By placing organizational culture within the competing value framework (CVF), this study establishes a conceptual model for the relationships between organizational culture and SCI. The study uses both a contingency approach and a configuration approach to examine these proposed relationships using data collected from 317 manufacturers across ten countries. Findings – The contingency results indicate that both development and group culture are positively related to all three dimensions of SCI. However, rational culture is positively related only to internal integration, and hierarchical culture is negatively related to both internal and customer integration. The configuration approach identifies four profiles of organizational culture: the Hierarchical, Flexible, Flatness and Across-the-Board profiles. The Flatness profile shows the highest levels of development, group and rational cultures and the lowest level of hierarchical culture. The Flatness profile also achieves the highest levels of internal, customer and supplier integration. Research limitations/implications – This study is subject to several limitations. In theoretical terms, this study does not resolve all of the inconsistencies in the relationship between organizational culture and SCI. In terms of methodology, this study uses cross-sectional data from high-performance manufacturers. Such data cannot provide strong causal explanations, but only broad and general findings. Practical implications – This study reminds managers to consider organizational culture when they implement SCI. The study also provides clues to help managers in assessing and adjusting organizational culture as necessary for SCI. Originality/value – This study makes two theoretical contributions. First, by examining the relationships between organizational culture and SCI in a new context, the findings of the study provide additional evidence to reconcile the previously inconsistent findings on this subject. Second, by departing from the previous practice of investigating only particular dimensions of organizational culture, this study adopts a combined contingency and configuration approach to address both the individual and synergistic effects of all dimensions of organizational culture. This more comprehensive approach deepens our understanding of the relationship between organizational culture and SCI.

scholarly journals The impact of innovativeness on supply chain performance: is supply chain integration a missing link?

2014 ◽  
Vol 19 (5/6) ◽  
pp. 733-746 ◽  
Author(s):  
Young-Joon Seo ◽  
John Dinwoodie ◽  
Dong-Wook Kwak
Keyword(s):  
Supply Chain ◽  
Structural Equation Modelling ◽  
Structural Equation ◽  
Supply Chain Integration ◽  
Supply Chain Performance ◽  
Content Type ◽  
Mediating Role ◽  
Equation Modelling ◽  
The Impact

Purpose – This purpose of this paper is to study the impact of innovativeness on supply chain integration (SCI) and supply chain performance (SCP) and the role of SCI in mediating between innovativeness in the supply chain and SCP. Innovativeness is an accepted driver to leverage firm performance. SCI and SCP require innovativeness in the supply chain, but their interrelationships have rarely been researched empirically. Design/methodology/approach – A questionnaire survey and structural equation modelling were used in this work. After a structural and measurement model was devised from existing supply chain literature, the main data were collected in a web-based questionnaire survey of South Korean manufacturers. Structural equation modelling was applied to test proposed hypotheses on the associations between variables, following a hierarchical analysis process. Findings – Innovativeness in the supply chain had a positive impact on both SCI and SCP. However, the direct impact of innovativeness on SCP disappeared when the model included SCI as a mediator. In specific, internal and supplier integration fully mediated innovativeness–SCP relationships, whereas customer integration had no mediating role on those relationships. The findings suggest that innovativeness can influence SCP only when the manufacturer’s level of SCI is sufficiently effective in developing necessary supply chain practices. Research limitations/implications – In this work, innovativeness in the supply chain effectively influenced SCP through the mediation of SCI. However, cross-sectional analysis in one nation using one response per organisation invites validation embracing other geographical areas and longitudinal studies. Practical implications – Design of an innovative culture within a firm and along a supply chain can enhance SCI practices by stimulating innovativeness. A high level of SCI should be pursued to effectively transform innovativeness into performance. Originality/value – This work seminally examines the effect of innovativeness in the supply chain on SCI and SCP as well as the mediating role of SCI in the relationships between innovativeness and SCP.

Research on the Impact of Supply Chain Integration Span on Firm Performance

2014 ◽  
Vol 687-691 ◽  
pp. 4778-4780
Author(s):  
Fan Liu
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Firm Performance ◽  
Management Practices ◽  
Supply Chain Integration ◽  
Chain Management ◽  
Management Recommendations ◽  
The Impact ◽  
The Relationship ◽  
The Empirical Analysis

As the core connotation of supply chain management, supply chain integration is the highest level of supply chain management development. This paper aims to explore the relationship between supply chain integration and building inter-firm linkages, and firm performance as well. Through building a theoretical model among them, and put forward the corresponding hypotheses and sub-hypotheses. We based on firms in Wuhan as the study samples to collect data and conduct the empirical analysis. The result of econometric analysis shows that span of integration is positively related to commitment to building inter-firm linkages and firm performance. Finally, propose ​​management recommendations and inspiration for firm’s supply chain integration and management practices.

Logistics and supply chain process integration as a source of competitive advantage

2014 ◽  
Vol 25 (2) ◽  
pp. 289-314 ◽  
Author(s):  
Mahour Mellat-Parast ◽  
John E. Spillan
Keyword(s):  
Supply Chain ◽  
Competitive Advantage ◽  
Process Integration ◽  
Critical Role ◽  
Supply Chain Integration ◽  
Equation Modeling ◽  
Chain Process ◽  
Content Type ◽  
Supply Chain Strategy ◽  
Supply Chain Process

Purpose – The purpose of this paper is to investigate the effectiveness of logistics and supply chain integration on firm competitiveness in manufacturing firms. Design/methodology/approach – Utilizing the resource-based view of competitive advantage along with the transaction cost economics theory, the authors address the critical role of logistics and supply chain strategy as the driver of logistics and supply chain integration and firm competitiveness. Structural equation modeling is used to determine the effect of two sets of logistics and supply chain integration practices (logistics/supply chain information integration and logistics/supply chain process integration) along with logistics outsourcing decision practices (logistics investment decisions and private warehousing decisions) on firm competitiveness. Findings – The results indicate that logistics/supply chain strategy is the main driver of logistics and supply chain integration and logistics decisions. Furthermore, the findings suggest that logistics/supply chain process integration is the most significant predictor of firm's competitive position. Research limitations/implications – Further examination and testing of the proposed model across multiple contexts is necessary for validity of the findings. Originality/value – This is one of the first studies that provide an empirical analysis on the importance of different sources of integration (information and process) in logistics and supply chain and their impact on firm competitiveness.

The impact of e‐business on supply chain management

2005 ◽  
Vol 25 (1) ◽  
pp. 55-73 ◽  
Author(s):  
Simon R. Croom
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Longitudinal Research ◽  
Customer Relationship ◽  
Business Systems ◽  
Chain Management ◽  
Content Type ◽  
Supply Chain Strategy ◽  
Business System ◽  
The Impact

PurposeE‐business systems and processes that use ubiquitous platforms such as web browser and internet have a profound impact on the management of inter‐organisational processes. Consequently, a major implication of e‐business is its impact on supply chain management. This paper focuses on the developments in e‐business system adoption and deployment in support of supply chain management.Design/methodology/approachThe research conducted for this paper was empirical in nature, involving an interview study with a large sample of organisations and selected case study visits. Analysis of the impact of e‐business on supply chain strategy also examines three representative areas of supply chain management – procurement, customer relationship management, and fulfilment process.FindingsE‐business systems deployment was also seen to act as a significant catalyst for each of the three areas examined, although this paper presents only the findings from the exploratory study.Originality/valueFrom the research analysis it was possible to develop a normative, five‐stage, model classifying the evolution of e‐business systems deployment for supply chain management. Finally proposes the need for longitudinal research to surface the underlying dynamics of e‐business adoption and deployment.

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