Assessing the Impact of Supply Chain Integration on Firm Competitive Capability

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.

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.


2019 ◽  
Vol 11 (5) ◽  
pp. 1248 ◽  
Author(s):  
Miklós Pakurár ◽  
Hossam Haddad ◽  
János Nagy ◽  
József Popp ◽  
Judit Oláh

The aim of this paper is to use a recently developed framework of supply chain integration (SCI) to examine the influence of a set of relationships between SCI and internal control on financial performance in the Jordanian banking sector. SCI consists of external integration and internal integration. External integration includes customer integration and supplier integration. This study utilizes survey data from 249 employees in the Jordanian banking sector and tests the research framework and hypotheses using exploratory factor analysis. The impact of supply chain internal and external integration and internal control significantly affected financial performance. The impact of the examined factors on financial performance is as follows, in decreasing order: internal integration, supplier integration, customer integration, and internal control. This study’s contribution to supply chain management is in its integration of SCI and internal control variables to propose a practical framework for the banks to use, and its development of a measurement tool for managers to determine the effects of internal and external integration and internal control on financial performance.


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.


Author(s):  
Yongyi Shou ◽  
Ying Li ◽  
Young Won Park ◽  
Mingu Kang

Purpose The purpose of this paper is to examine the antecedents of supply chain integration (SCI) at the product level. More specifically, it aims to show the relationship between product-level characteristics (i.e. product complexity and product variety) and different dimensions of SCI (i.e. internal, supplier and customer integration). Design/methodology/approach A survey-based research design is developed to measure different dimensions of SCI, product complexity and product variety. The authors use structural equation modelling to test the related hypotheses. Findings This research shows that internal integration is an enabler to supplier and customer integration. The results also show that under high product complexity, firms tend to implement internal and supplier integration, while product complexity does not have a direct impact on customer integration. Product variety is confirmed to be positively related to all dimensions of SCI. Originality/value This paper contributes to the SCI literature by first, providing empirical evidence which supports the study of the product design-supply chain interface; and second, exploring the relationships between product complexity, variety and internal, supplier and customer integration based on a governance view.


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.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Min Tian ◽  
Baofeng Huo ◽  
Youngwon Park ◽  
Mingu Kang

PurposeThe purpose of this study is to empirically explore the effects and interaction effect of human resources and digital manufacturing technologies (DMTs) on supply chain integration (SCI) and how their roles are influenced by competition.Design/methodology/approachDrawing on the technology-organization-environment (TOE) framework, this study builds and tests a holistic model based on the International Manufacturing Strategy Survey (IMSS) project database.FindingsThe results show that human resources and DMTs have significant positive effects on three dimensions of SCI. Competition positively moderates the effects of human resources on customer integrations, negatively moderates the effects of human resource on internal integration, but does not moderate the effects of human resources on supplier integration. Besides, the moderating effect of competition has not been found in the relationships between DMTs and three SCI dimensions.Originality/valueBy investigating the effects of human resources and DMTs on SCI practices in the context of competition, this study contributes to the literature on SCI, DMTs and the TOE framework as well as offers practical insights that help manufacturing firms to promote SCI more effectively and efficiently.


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.


Author(s):  
Mohammad Abdullah Shah ◽  
Muhammad Asim ◽  
Salman Manzoor

The study aims to examine the impact of customer integration, internal integration, logistics collaborator integration and supply chain resilience on the resource efficiency of the supply chain firms in Karachi. Sample size included 181 responses with the help of purposive sampling, and the target population was supply chain firms of Karachi. The data was analyzed using PLS-SEM. The study found that the customer integration was significantly affecting SC resilience but negatively affecting resource efficiency. Also, internal integration was not affecting customer integration and SC resilience and resource efficiency but affecting the logistics collaborator integration. Moreover, LCI was significantly affecting customer integration, SC resilience and resource efficiency. Lastly, SC resilience was negatively affecting resource efficiency. The study recommends that the managers need to enhance their logistics collaborator integration as it was found to be significantly improving the customer integration, supply chain resilience and resource efficiency. Moreover, the managers need to improve their customer and internal integration as they can enhance their logistics collaboration integration and resource efficiency.


2021 ◽  
Vol 9 (4) ◽  
pp. 867-876 ◽  
Author(s):  
Sudirman Zaid ◽  
Alida Palilati ◽  
Rahmat Madjid ◽  
Sarini Yusuf Abad

The objective of the research is to examine the role of Supply Chain Integration (SCI) which consists of; suppliers, customers, and internal integration in building customer loyalty. This study uses data from 308 top managers of Tuna Fillets SMEs Industries in Southeast Sulawesi Province, Indonesia as respondents. The research model was analyzed by using PLS-SEM. The research found that SCI had a significant direct effect on operational performance and customer satisfaction. The research also found that operational performance and customer satisfaction had some impacts on increasing loyalty of Tuna Fillets SMEs Industries customers. The results of the analysis also provide information that operational performance and customer satisfaction can be a mediator of the influence of Supply Chain Integration.


2019 ◽  
Vol 119 (5) ◽  
pp. 1031-1045
Author(s):  
Yanming Zhang ◽  
Xiande Zhao ◽  
Baofeng Huo

PurposeFollowing resource-based view, the purpose of this paper is to investigate the effects of three intra-organizational structural elements on supply chain integration (SCI).Design/methodology/approachBased on data collected from ten countries, this study employs the structural equation modeling method to test the proposed model.FindingsThe results demonstrate that teamwork culture is positively related to three dimensions of SCI. Organizational commitment has positive effects on internal and customer integration (CI), whereas it has no significant effect on supplier integration (SI). Human goodness is only positively related to internal integration, but has no significant effect on SI or CI.Originality/valueThis study contributes to both structural elements literature and SCI enabler literature by operationalizing three human-related components of structural elements and empirically investigating relationships between intra-organizational structural elements and SCI.


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