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

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.

2017 ◽  
Vol 24 (3) ◽  
pp. 594-616 ◽  
Author(s):  
Heba Fawzi Ayoub ◽  
Ayman Bahjat Abdallah ◽  
Taghreed S. Suifan

Purpose The purpose of this paper is to investigate the effect of supply chain integration (SCI) in terms of supplier integration, customer integration, and internal integration on knowledge management (KM) and technical innovation (TI). The study also investigates the effect of KM on TI. Furthermore, the mediating effect of KM on the relationship between SCI and TI is investigated. Design/methodology/approach Study model and hypotheses were developed based on literature review. The study is based on survey data collected from 217 Jordanian manufacturing companies in electrical, electronics, machinery, and mechanical appliances industries. Exploratory factor analysis and confirmatory factor analysis were applied to assess construct validity. Direct and indirect effects were tested using structural equation modeling and bootstrap re-sampling technique. Findings The results reveal that supplier integration and customer integration have positive effects on KM and TI, while internal integration has not. Also, KM has a positive effect on TI. In addition, KM mediates supplier integration-TI and customer integration-TI relationships, while does not mediate internal integration-TI relationship. Originality/value Most existing studies examined the effect of KM on SCI and supply chain management. This study argues and empirically demonstrates that SCI contributes to KM capability of manufacturing companies. Moreover, this is one of the first studies to investigate the mediating role of KM on SCI-TI relationship. The paper provides evidence that external integration is superior to internal integration in enhancing KM and TI.


2018 ◽  
Vol 7 (4.7) ◽  
pp. 424 ◽  
Author(s):  
Rashid Ahmed Khamis al Naqbi ◽  
Rosman Bin MD Yusoff ◽  
Fadillah Binti Ismail

Sustainability is becoming a more important factor in the processes of organizations. Supply chains management (SCM) has acknowledged a great deal of interest by researchers and practitioners. The primary objective of the current research paper is to examine the relationship between internal integration and sustainable supply chain performance. In addition to that, the study has focused on the mediating effect of supplier integration and customer integration in the relationship between key between internal integration and sustainable supply chain performance. The study focuses on manufacturing enterprises of UAE under subject investigation and its relationship with sustainability goals. A detailed literature has been reviewed critically to develop the hypothesis of the study. A questionnaire survey was adopted to collect data from supply chain managers of manufacturing companies. Smart PLS 3 (SEM) is used to analyze the collected data. The results of the study have shown a great deal of agreement with the proposed hypothesis. Analysis of the study is divided into two major parts. Part one is based on an outer model assessment in which reliability and validity were examined. The second part is based on an inner model assessment in which hypotheses were tested. The result of the study will be useful for policymakers and researchers in understanding the emerging role of environmental concerns in strategic management and operational management.   


2021 ◽  
Vol 14 (4) ◽  
pp. 718
Author(s):  
Thywill Cephas Dzogbewu ◽  
Samuel Korateng Fianko ◽  
Sampson Afrifa Jnr ◽  
Nathaniel Amoah

Purpose: The purpose of this study was to assess the direct effect of supply chain integration on operational performance and the mediating effects of external integration on the relationship between internal integration and operational performance among manufacturing firms.Design/methodology/approach: Quantitative survey research design was adopted. A total of thirty (30) manufacturing firms were sampled using cluster sampling. The data was collected using questionnaires from 317 employees in the procurement, account and administration units of the 30 manufacturing firms. Structural Equation Modeling was used to analyze the direct and mediation relationships.Findings:  The results showed that the relationship between internal integration and operational performance was significantly mediated by external integration. It was established that operational performance could only be achieved when manufacturing firms’ managers pay critical attention to internal and external integration. A Significant positive relationship also exists between supplier integration and operational performance as well as customer integration and operational performance.Originality/value: The unique contribution of the current study is the assessment of the mediating effect of external integration constructs (customer integration and supplier integration) as the mediating variable on internal integration and operational performance.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ayman Bahjat Abdallah ◽  
Omar Mohammad Rawadiah ◽  
Walaa Al-Byati ◽  
Salah Alhyari

PurposeThe purpose of this study is to examine the effect of supply chain integration (SCI) in terms of supplier, customer and internal integration on supply chain performance (SCP) and export performance (EXP). The effect of SCP on EXP is also explored. This study further seeks to examine the mediating effect of SCP on the relationship between the types of SCI and EXP.Design/methodology/approachThe population of this study consists of manufacturing companies in different industries in Jordan. Data were gathered using self-administered questionnaires; managers from 271 companies responded to the survey. The study constructs were assessed for validity and reliability, and it was ensured that acceptable levels of these tests were obtained. Structural equation modeling (SEM) was used to test the study hypotheses.FindingsThe findings showed that supplier and customer integration were not drivers of EXP, but internal integration positively impacted EXP. In addition, internal and customer integration positively affected SCP, while supplier integration did not. Also, SCP positively impacted EXP. Furthermore, customer integration and internal integration indirectly impacted EXP through SCP.Practical implicationsManufacturers should establish both intra- and inter-organizational collaborations to improve their performance. Specifically, managers in developing countries need to pay substantial attention to internal integration, as it is the key antecedent of both SCP and EXP. Furthermore, managers must be aware of the essential role of customer integration in improving SCP and subsequently EXP. Therefore, they should make long-term plans to integrate and incorporate key customers. In addition, managers are advised to reconsider their current relationships with suppliers. By failing to take advantage of the valuable expected contribution of supplier integration, manufacturers may lose export opportunities to international competitors.Originality/valueThe present study addresses an evident gap in the available literature regarding the effect of SCI on EXP. It tests a comprehensive model underlining the role of SCP on the relationship between SCI types and EXP. This study is also valuable because it was conducted in a developing country. Generally, manufacturing companies in developing countries face more SC-related difficulties than those in developed countries; these challenges can limit the export abilities of manufacturers in developing countries. The study offers important implications for the managers of manufacturing companies to improve their SCP and, subsequently enhance their EXP.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anurodhsingh Khanuja ◽  
Rajesh Kumar Jain

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.


Author(s):  
Adam S. Maiga

Firms undertake efforts to compete along multiple fronts. First, they integrate internally in order to prepare a cohesive organizational response and to ready the ground for external integration. They then seek to integrate with both customers and suppliers which can increase the breadth and depth of resource endowments. Internal and external integration are posited to improve manufacturing related competitive capability. This study examines whether internal integration and external integration impact manufacturing related competitive capability. The findings indicate significant positive effects of internal integration on both supplier and customer integration. Each supply chain integration dimension has a significant direct effect on competitive capability. Testing for mediation effects indicates that customer integration and supplier integration partially mediate the effects of internal integration on competitive capability.


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.


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.


2018 ◽  
pp. 1386-1407
Author(s):  
Adam S. Maiga

Firms undertake efforts to compete along multiple fronts. First, they integrate internally in order to prepare a cohesive organizational response and to ready the ground for external integration. They then seek to integrate with both customers and suppliers which can increase the breadth and depth of resource endowments. Internal and external integration are posited to improve manufacturing related competitive capability. This study examines whether internal integration and external integration impact manufacturing related competitive capability. The findings indicate significant positive effects of internal integration on both supplier and customer integration. Each supply chain integration dimension has a significant direct effect on competitive capability. Testing for mediation effects indicates that customer integration and supplier integration partially mediate the effects of internal integration on competitive capability.


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.


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