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

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.

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yang Cheng ◽  
Sami Farooq ◽  
Muhammad Shakeel Sadiq Jajja

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.


2017 ◽  
Vol 28 (2) ◽  
pp. 444-463 ◽  
Author(s):  
Kum Fai Yuen ◽  
Vinh Van Thai

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.


2019 ◽  
Vol 14 (2) ◽  
pp. 411-431
Author(s):  
Benlu Hai ◽  
Qingzhu Gao ◽  
Ximing Yin ◽  
Jin Chen

Purpose Significant increase or decrease in research and development (R&D) expenditure may have an immense impact on market value. Based on the punctuated equilibrium theory, this paper aims to empirically analyze the impact of R&D volatilities on market value and the moderating effect of executive overconfidence. Design/methodology/approach The study uses the panel data set that covers 902 Shanghai and Shenzhen A-share manufacturing listed firms and multiple regression method to test the theoretical hypotheses. Findings The results show that both positive and negative R&D volatilities have a robust and significant positive impact on the market value. Further analysis shows that the executive overconfidence positively moderates the relationship between R&D volatilities and market value. Research limitations/implications In a rapidly changing and highly competitive environment, firms should recognize that the balance of innovation strategies will help to bring higher market value. Furthermore, firms could improve corporate governance to make the best of managerial characteristics, such as overconfidence, on the innovation decision-making process. Originality/value By pushing the static perspective to a dynamic perspective and empirically documenting the role of executive overconfidence, this study contributes to the literature on the relationship between R&D expenditure and market value, generating theoretical and practical insights for firms to improve innovation governance and innovation strategies to achieve better business 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.


2015 ◽  
Vol 20 (1) ◽  
pp. 24-41 ◽  
Author(s):  
Zhi Cao ◽  
Baofeng Huo ◽  
Yuan Li ◽  
Xiande Zhao

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.


2021 ◽  
pp. 159-168
Author(s):  
Thi Van Anh Bui ◽  
Thi Thuy Hang Pham ◽  
Xuan Trang Phung ◽  
Cong Thanh Le ◽  
Ngoc Toan Nguyen

The objective of this article is to evaluate the impact of Transformational Leadership on Organizational Innovation, Supply chain Integration and Organizational Performance. Research was carried out on 562 Vietnamese textile and garment enterprises. We use Smart PLS 3.6 software for data analysis. The results show that Transformational Leadership had a positive impact on Organizational Innovation, Supply chain Integration and Organizational Performance. In addition, the Supply chain Integration plays a role as a complete mediate in the relationship between Organizational Innovation and Organizational Performance. Size has a statistically significant moderate role on the relationship between Organizational Innovation and Organizational Performance. Finally, the leader qualification has a statistically significant moderate role in the relationship between Transformational Leadership and Organizational Performance. From the above results, we recommend the leaders of Vietnamese textile and garment enterprises to improve leadership capacity, apply a transformational leadership style to improve organizational performance.


2019 ◽  
Vol 36 (7) ◽  
pp. 1053-1077 ◽  
Author(s):  
Binh An Thi Duong ◽  
Huy Quang Truong ◽  
Maria Sameiro ◽  
Paulo Sampaio ◽  
Ana Cristina Fernandes ◽  
...  

Purpose A single supply chain management (SCM) practice will have a certain impact on organizational performance (OP). However, since it is placed in a system that many other practices are conducted simultaneously, the practice itself will interact with other ones (i.e. affect/be affected). As a consequence, the efficiency of the affected practice is increased and it is expected to maximize the impact of SCM practices on OP. This mechanism is named the “resonant” influence that is a new approach in the SCM literature. The purpose of this paper is to test the above mechanism toward an insight into the relationship between SCM and OP. Design/methodology/approach Two models were compared: the competitive models only exist in direct effects; and the other contains relationships between practices that are able to show the mechanism of the resonant influence, i.e. the hypothetical model. A data set gained from Vietnamese garment enterprises was used to validate the mechanism of the resonant influence. Findings Empirical evidence from Vietnamese garment sector showed that the competitive models could explain 42.8, 26.3 and 34 percent variance of operational performance, customer satisfaction and financial performance, respectively. In the meantime, the hypothetical model containing the resonant influence is capable to explain 69.5, 33.1 and 57.3 percent. For the impact of each SCM practice on OP, all relationships in the hypothetical model are also greater than those in competitive ones. These results supported the mechanism of the resonant influence. Research limitations/implications This research provides an insight into the relationship between SCM practices and OP. By the resonant influence, the effectiveness of each affected SCM practice itself is magnified and OP is also increased remarkably. Practical implications Understanding the resonant influence, companies can apply this mechanism to enhance effectiveness of SCM practices at the lowest cost. To this end, the SCM practices should be implemented simultaneously as an integrated system rather than independent ones and the structural model proposed in this study is able to be used as “a guide map” for applying this mechanism. Originality/value This is one of pioneer empirical studies in the SCM literature that proposed and validated the concept of “resonant influence.”


2019 ◽  
Vol 69 (6) ◽  
pp. 1205-1225 ◽  
Author(s):  
Scott Dellana ◽  
John F. Kros ◽  
Mauro Falasca ◽  
William J. Rowe

Purpose The purpose of this paper is to explore the mediating effect of supply chain risk management integration (RMI) on the relationship between supply chain logistics performance (LP) and supply chain cost performance (CP), as well as on the relationship between LP and supply chain service performance (SP). The impact of CP and SP on overall firm performance (FP) is also explored. ISO 9001-certified firms and non-certified firms are assessed to determine whether superior risk-based thinking, as required in the latest ISO 9001 standard, has a positive impact on the different relationships. Design/methodology/approach A theoretical model is developed and tested based on the participation of 140 supply chain managers. The proposed structural equation model positively relates LP, RMI, CP and SP. RMI is positively linked to CP and SP, while CP and SP are positively related to overall FP. Two subsamples (a group of 63 ISO 9001-certified firms and a group of 77 non-certified firms) are used to evaluate the model. Findings For certified and non-certified firms, LP is positively related to RMI, CP and SP, and SP and CP are positively related to FP. However, for certified firms, RMI partially mediates the relationship of LP with both CP and SP, while for non-certified firms, RMI does not mediate these relationships. The findings suggest that ISO 9001-certified firms are able to leverage RMI efforts to impact positively on supply chain performance, whereas non-certified firms are not. Research limitations/implications The study findings are based on the perceptions of managers. Even though the majority of the 63 certified firms included in this study were ISO 9001:2015 certified, the model results do not differentiate between companies certified to the 2008 version of the standard and the 2015 version (which specifically requires demonstration of risk-based thinking). Practical implications This study suggests that ISO 9001 provides a framework for risk management processes and collaboration with supply chain partners to positively impact the relationship of LP with cost and SP. Originality/value This is one of the first studies to characterize the benefits of using a structured approach for risk-based thinking that is associated with ISO 9001.


Author(s):  
Jose Benedicto Duhaylongsod ◽  
Pietro De Giovanni

Purpose The purpose of this paper is to investigate whether implementing certain innovation strategies and adopting a portfolio of innovations improve the relationship between supplier integration (SI) and operational performance (OP). Design/methodology/approach The authors test several research hypotheses by using a data set of 173 firms. Data were collected by interviewing managers, presidents and directors, from ten European countries and across nine different industries. The authors use structural equation modeling to estimate the relationships between SI and OP. The authors apply multi-group analysis to test the effects of certain innovation strategies and a portfolio of innovations on these relationships. Findings The authors show that SI improves internal OP but has no direct effect on external OP. The latter can only be improved through well-performing internal operations. The adoption of an incremental product innovation strategy improves the relationship between internal and external OP and leads to more effective SI. Other types of innovations do not help in improving the impact of SI on OP. Finally, the adoption of a portfolio of innovations does not enhance the influence of SI on OP. Thus, firms should focus on a small number of innovations rather than expanding their innovation portfolio to improve the effectiveness of SI on OP. Practical implications When firms aim to improve the impact of SI on OP, they should concentrate on incremental product innovations. Other strategies obtained by combining process, incremental and radical innovations are not adequate for that purpose. An expanded portfolio of innovations does not improve the effect of supplier innovation on OP. Originality/value This research suggests how the impact of SI on OP can be improved by adopting certain innovation strategies and without diversifying the portfolio of innovation projects.


2019 ◽  
Vol 12 (2) ◽  
pp. 254 ◽  
Author(s):  
Mohamed Errassafi ◽  
Hassan Abbar ◽  
Zahra Benabbou

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.


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