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

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.

2019 ◽  
Vol 39 (5) ◽  
pp. 787-814 ◽  
Author(s):  
Wantao Yu ◽  
Roberto Chavez ◽  
Mark Jacobs ◽  
Chee Yew Wong ◽  
Chunlin Yuan

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.


2017 ◽  
Vol 34 (2) ◽  
pp. 176-193 ◽  
Author(s):  
Huy Quang Truong ◽  
Maria Sameiro ◽  
Ana Cristina Fernandes ◽  
Paulo Sampaio ◽  
Binh An Thi Duong ◽  
...  

Purpose The purpose of this paper is to provide an empirical evidence about the relationship between practices of supply chain management (SCM) and operational performance (OP). Design/methodology/approach Based on a comprehensive literature review, a set of SCM practices has been identified and selected to develop a conceptual model as well as to establish their relationship to companies’ OP. The measurement scales of the practices were developed in four steps: identification and development of initial instrument; personal interviews and Q-sort; large-scale data collection; and large-scale analysis in order to ensure unidimensionality, reliability and validity. Structural equation modeling was used to validate the model with the data were collected in Vietnamese garment enterprises. Findings The study consolidated relationships between the SCM practices and OP. According to the research results, these practices have a “resonant” influence on OP that can explain 52.6 percent variance of this output concept. In particular, customer focus and supplier management both direct and indirect impact on OP while top management support and process control/improvement only have indirect and direct influences on OP, respectively. Research limitations/implications There are some limitations that can guide academics to new lines of future research: to extend the scope of the survey to include different countries and new situations, so results can be generalized; to consider the impacts of the SCM practices on the entire supply chain performance; and to explore additional factors that can further explain OP, such as operational environment, capital, technology, human resource, etc. Practical implications The authors suggest that the SCM practices should be implemented as an integrated system rather than independent practices, in which they interact with each other and improve OP. Originality/value The empirical results of this study provide an evidence to consider the SCM practices as reliable predictors for OP. According to the research, these practices interact with each other and have both direct and indirect effects on OP. In other words, through the mutual interaction among the SCM practices, they have the “resonant” influence on improving OP. Moreover, the proposed research model analyzing the relationship among SCM practices and OP and its validation using the Vietnam garment industry provided valuable insights both from theoretical and practical perspectives.


2014 ◽  
Vol 114 (3) ◽  
pp. 405-420 ◽  
Author(s):  
Ely Laureano Paiva ◽  
Rafael Teixeira ◽  
Luciana Marques Vieira ◽  
Andrew Beheregaray Finger

Purpose – The purpose of this paper is to analyze the relationship between supply planning, trust and integration, and the influence of them on operational performance. Design/methodology/approach – The paper used a survey with 335 respondents from three different industries. The paper analyzed the data with structural equation modeling. Findings – The results suggest that supply planning and trust are positively related and both influence supply integration and operational performance. At the end the paper proposed a classification for supply integration based on planning use and trust. Research limitations/implications – The sample is composed by companies from only three industries (machinery, electronics and automobile), what does not allow generalization. Practical implications – Managers are challenged to develop simultaneously supply chain planning practices and trust-based relationship within buyers and suppliers. They must pay attention to different integration drivers and use them accordingly and in the context analyzed. The study suggests a 2×2 matrix that might help managers’ decision making. Originality/value – Despite the importance of planning in supply and manufacturing management, few papers analyzed the role of supply planning integrated to trust. The combination between these aspects brings a more realistic and pragmatic view of the supply chain management.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Zia Ul Haq

Purpose Despite the significance, no study examines the relationship between supply chain (SC) learning components and focal firm performance. This study aims to investigate different types of SC learning (supplier, customer and internal learning) and their influence on the focal firm’s operational and financial performance. Design/methodology/approach Grounded in knowledge-based view and absorptive capacity theory, this study applies structural equation modeling to test the conceptual model based on data collected from 213 manufacturing firms in China. Findings The findings indicate that supplier and customer learning improve internal learning. Customer and internal learning have direct influence on operational performance, whereas internal learning mediates the relationship between supplier learning and operational performance. Moreover, all three dimensions of SC learning do not affect financial performance directly but operational performance plays the mediating role in their relationship. Research limitations/implications This study only investigates SC learning outcomes without exploring its antecedents. In addition, SC learning and their impacts on firm performance are tested empirically with cross-sectional data collected only from manufacturing firms in China. Practical implications The findings furnish managers to seek for competitive advantages through different types of SC learning. Originality/value This study offers new insights concerning the performance implications of SC learning. It divides SC learning into dimensions and shows the distinctive impacts of these dimensions on focal firm’s performance using an empirical method.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jean-Noël Beka Be Nguema ◽  
Gongbing Bi ◽  
Temidayo O. Akenroye ◽  
Jamal El Baz

Purpose This paper aims to draw on the dynamic capabilities approach and aims to empirically investigate the impact of supply chain finance (SCF) on firm performance (e.g. operational risk and operational performance), the critical effect of environmental dynamism (ED) as moderator and supply chain risk (SCR) and a mediator in the relationship between SCF and organizational performance (OP). Design/methodology/approach This study is based on empirical data collected from a survey of 210 companies and their supply chains in mainland China. Structural equation modeling is used to test the proposed relationships. Findings The findings show that SCF significantly mitigates the SCR, which subsequently has a significant positive effect on OP (e.g. operational risk and operational performance). The findings also show that when ED is high, the relationship between SCF and SCR is stronger and vice versa. Moreover, SCR mediates the relationship between SCF and OP. The hypothesis regarding the moderating effect of ED on the paths joining SCF and SCR was also supported. SCR has a significant negative effect on OP. However, the hypothesis regarding the effect of ED on SCR was not supported. Research limitations/implications This study has some limitations. First, this paper conducted the research with Chinese organizations. This may result in low generalizability in other contexts. In addition, this paper used the survey method and cross-sectional data design in this study, which may generate the potential issue of common method bias. However, the findings of this study will help organizations across China and other emerging economies to adopt SCF as a secure financing mechanism to enhance working capital and mitigate risk. In addition, the paper provides some new managerial insights for decision-makers in organizations, while exploring different factors such as SCF, SCR and ED and their effect on the organization. Originality/value This study has greatly developed a general SCF adoption model that helps to guide empirical research investigating the critical impact of SCF on firm performance.


2019 ◽  
Vol 15 (2) ◽  
pp. 661-684 ◽  
Author(s):  
Akbar Rahimi ◽  
Abbas Raad ◽  
Akbar Alem Tabriz ◽  
Alireza Motameni

Purpose Nowadays, the defense industry is considered a significant part of the manufacturing industries. Military products in the world have a high level of diversity, delivery speed and appropriative operational functionality. Therefore, various producing, high quality and high-speed delivery of military products are of great importance in enhancing Iran’s defensive power. Defense industries’ supply chain agility is a response to how to produce military products with these features. Therefore, the purpose of this paper is to provide a model for the agile supply chain of defense industries to show the relationship between agile practices and their hierarchy. Design/methodology/approach First, the authors identify the most important supply chain agility practices by expert’s questionnaire. Then, using factor analysis, practices are categorized and validated based on structural equation modeling (SEM). SEM showed a meaningful relationship between agile supply chain practices. Finally, using interpretative structural modeling, a model is presented to show the logical relationships and hierarchy between these practices. Findings The results show that out of a total of 62 practices introduced in the previous research for the agile supply chain, 37 practices in the agility of the supply chain of defense industries are effective. The 4 new agility practices were identified in this research. These 41 practices were classified into 8 categories including supplier relationship, workshop level management, organizational structure improvement, human resource management, product designing, improve and integrate the process, application of information technology and customer relationship. Improvement of organizational structure was at the highest level of the model. Therefore, managers first should focus on it. Research limitations/implications Given the confidentiality of information in the defense industry, the distribution of questionnaires and their collection was one of the most important limitations. A variety of defense products in land, air and sea areas, and a large number of industries in each sector, forced the authors to select the only land area. Although the results of this research can be used in the air and sea areas, but cannot be said that the implementation of this study presented model will fully lead to the defense industries’ supply chain agility in air and sea sectors. Originality/value This is the first research on the supply chain agility of Iran’s defense industry that bridges the gap between theory and practice. The classification of 41 practices in the form of 8 measures and examining the relationship between them is a new and practical approach for understanding the relationships between different variables that affect supply chain agility. This study introduces four new agility practices including the use of new technology and equipment, human resource balance, the use of expert human resources, training and employee empowerment, which can be considered in many industries of developing or less developed countries. Considering the specific situation of defense industry supply chain in comparison with other industries, the results of this research can be used by other defense industries of similar countries.


2019 ◽  
Vol 32 (6) ◽  
pp. 913-935 ◽  
Author(s):  
Caixia Chen ◽  
Tongyu Gu ◽  
Yuru Cai ◽  
Yixiong Yang

Purpose The purpose of this paper is to develop a novel research model to examine the relationship among information sharing (IS), supply chain integration (SCI), operational performance (OP) and business performance (BP) in the fashion supply chains. Design/methodology/approach A survey of 247 executives from Chinese fashion brand firms was conducted and the data were analyzed to investigate how IS affects the organizational BP. Structural equation modeling (SEM) was applied to study the relationship among IS, SCI, OP and BP. Findings The empirical research results indicate that IS is critical to enhance the SCI and OP, and both SCI and OP exert mediating effects on BP of fashion brands. This result also reveals constructive suggestions that allow fashion brands to strengthen their SCI and OP, as well as BP. Research limitations/implications Multiple data sources were applied to develop the sampling frame, and respondents were selected (according to their experience and position) to ensure they had the knowledge and expertise to provide valid response. However, this could not guarantee the adequacy of the sample. This limitation is compounded by the reliance on a simple respondent per firm, which precludes testing for inter-rater reliability. Practical implications The empirical findings provide an enhanced understanding of the relationship among IS, SCI, OP and BP in Chinese fashion brand settings. The research results will help fashion brands to improve supply chain efficiency and enhance company performance. Originality/value Although previous studies have realized that the value of IS varies in different industries, few have specifically explored the impact on the fashion industry characterized by short life cycles, high volatility, low predictability and high impulse purchasing. To fill this knowledge gap, the present study employed a questionnaire survey and SEM techniques to explore the relationship among IS, SCI, OP and BP in the fashion supply chain. Comprehending the impact mechanism of IS on organizational performance can provide useful management insights into the development of effective strategies that allow enterprise to improve BP.


2015 ◽  
Vol 20 (1) ◽  
pp. 42-55 ◽  
Author(s):  
Su-Yol Lee

Purpose – This paper aims to examine the effects of green supply chain management (GSCM) on environmental and operational performances with a perspective of social capital accumulation in the supply chain. The roles of structural capital and relational social capital in GSCM were empirically explored. Design/methodology/approach – A research model was developed to investigate the effects of GSCM on a supplier’s environmental and operational performances through structural and relational social capitals. Using an exploratory factor analysis, the study identified the structural and relational dimensions of social capital and the environmental and operational performance dimensions of supplier’s performance. The hypotheses were tested on data of 207 responses collected from supplying firms in South Korea, using structural equation modeling. Findings – The paper finds that GSCM contributes to the environmental and operational performance improvements of the supply chain through social capital accumulation. Relational capital, in particular, plays a more important pivoting role in the relationships between GSCM and environmental and operational performances. Practical implications – The findings of this paper provide useful insights about how supply chain members should integrate environmental issues into supply chain management practices that would enhance social capital accumulation to foster stronger operational and environmental performances throughout the entire supply chain. Originality/value – This research is one of the few studies that explore the effects of GSCM on performance by explicitly considering social capital as an important intervening variable. By applying social capital theory, this study provides theoretical underpinning for furthering the GSCM literature.


2016 ◽  
Vol 23 (3) ◽  
pp. 564-583 ◽  
Author(s):  
Joakim Coker ◽  
Petri Helo

Purpose – Demand-supply balancing (DSB) strategies and approaches are becoming increasingly important for manufacturing and operations. The purpose of this paper is to analyze practices of manufacturing companies and how they balance demand/supply in operations. Design/methodology/approach – Questionnaire-based interview has been conducted at 20 largest companies having manufacturing/operations in Finland. Findings – Supply chain structure, flexibility, demand management, capacity management, inventory management and revenue management are perceived as key practices for DSB. Research limitations/implications – The results show importance of supply chain-related parameters such as supply chain flexibility and inventory management in addition to production planning and control. The study is delimited to Finland companies but it gives an idea how decision making in operations generally can be perceived. Practical implications – DSB actions should be connected to operations strategy and long-term planning of the company. Originality/value – DSB is a strategic-level operations question which has an impact on several functions of supply chain.


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