Effect of Customer Power on Supply Chain Integration and Performance

Author(s):  
Xiande Zhao ◽  
Baofeng Huo ◽  
Barbara Flynn ◽  
Jeff Yeung

Supply chain integration (SCI) has received increasing attention from academic researchers and practitioners in recent years, however, our knowledge of what influences SCI, and how SCI influences the performance of supply chains and manufacturers within the supply chain is still very limited. Although researchers in marketing and management have investigated power and relationship commitment issues within and between organizations, few have examined their impact on SCI. This chapter studies the relationship between power, relationship commitment and integration between manufacturers and their customers within a supply chain. The impact of customers’ SCI on the customer service and financial performance of manufacturers is also investigated. The authors propose and empirically test a model using data collected from 617 manufacturing companies in China. The results show that customers’ use of different types of power has different impacts on manufacturers’ relationship commitment. Expert power, referent power and reward power are very important in improving manufacturers’ normative relationship commitment, while reward power and coercive power enhance instrumental relationship commitment. The authors also find that normative relationship commitment have a greater impact on customer integration and customer service by manufacturers than instrumental relationship commitment. Customer integration significantly enhanced manufacturers’ customer service and financial performance. The improvement in customer service of manufacturers positively influenced their financial performance.

2012 ◽  
pp. 1260-1287
Author(s):  
Xiande Zhao ◽  
Baofeng Huo ◽  
Barbara Flynn ◽  
Jeff Yeung

Supply chain integration (SCI) has received increasing attention from academic researchers and practitioners in recent years, however, our knowledge of what influences SCI, and how SCI influences the performance of supply chains and manufacturers within the supply chain is still very limited. Although researchers in marketing and management have investigated power and relationship commitment issues within and between organizations, few have examined their impact on SCI. This chapter studies the relationship between power, relationship commitment and integration between manufacturers and their customers within a supply chain. The impact of customers’ SCI on the customer service and financial performance of manufacturers is also investigated. The authors propose and empirically test a model using data collected from 617 manufacturing companies in China. The results show that customers’ use of different types of power has different impacts on manufacturers’ relationship commitment. Expert power, referent power and reward power are very important in improving manufacturers’ normative relationship commitment, while reward power and coercive power enhance instrumental relationship commitment. The authors also find that normative relationship commitment have a greater impact on customer integration and customer service by manufacturers than instrumental relationship commitment. Customer integration significantly enhanced manufacturers’ customer service and financial performance. The improvement in customer service of manufacturers positively influenced their financial performance.


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.


2018 ◽  
Vol 118 (9) ◽  
pp. 1749-1765 ◽  
Author(s):  
Mingu Kang ◽  
Ma Ga (Mark) Yang ◽  
Youngwon Park ◽  
Baofeng Huo

Purpose The purpose of this paper is to examine the role of supply chain integration (SCI) in improving sustainability management practices (SMPs) and performance. Design/methodology/approach Based on data collected from 931 manufacturing firms in multiple countries and regions, the authors conducted a structural equation modeling analysis to test the proposed hypotheses. Findings The findings suggest that supplier and customer integration are vital enablers for both intra- and inter-organizational SMPs. The results also reveal that both intra- and inter-organizational SMPs are significantly and positively associated with sustainability performance (i.e. economic, environmental and social performance) and function as complements to jointly enhance environmental and social performance. Originality/value This study incorporates SCI into the sustainability literature, providing a new perspective on sustainability and supply chain management research.


2016 ◽  
Vol 11 (6) ◽  
pp. 225 ◽  
Author(s):  
Jonathan Annan ◽  
Nathaniel Boso ◽  
Dominic Essuman

Following the growing concerns on the inconsistent findings in previous research and drawing on the social exchange and networking theories, this study re-examined the impact of supply chain integration (SCI) on business performance (i.e. value creation and financial performance). The study argues that the impact of SCI on financial performance is through value creation and is depended upon longevity of product life cycle. Using primary data from 79 firms in Ghana, the study finds that value creation is a short-run consequence of SCI while financial performance is a long-run outcome of SCI. Additionally, results show that the financial performance outcome of SCI is experienced more from integrative efforts than from the value creation outcome. Results further indicate that firms whose products stay relatively shorter on the market are more likely to experience lower positive impact of SCI on value creation, and thus firms’ ability to become proactive, monitor, and collect market information on product performance throughout its life cycle is key for coming out with strategies that will enable them maximize product’s life span so as to experience greater benefits that come with pursuing integration with other channel members.


Author(s):  
Hooshang M. Beheshti ◽  
Pejvak Oghazi ◽  
Rana Mostaghel ◽  
Magnus Hultman

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.


2016 ◽  
Vol 10 (2) ◽  
pp. 191-220 ◽  
Author(s):  
Ivan Francisco Martinez Neri

Purpose This paper surveys the literature on supply chain integration (SCI) to identify the state of research in the various types of studied industries and manufacturing environments. The purpose of this paper is to identify academic discoveries that could provide offshore wind projects with means to overcome their current supply chain challenges. Design/methodology/approach A comprehensive literature review was conducted involving 162 articles published in 29 peer-reviewed journals. The papers were analyzed in terms of the dimensions of SCI, research methodology, unit of analysis, level of analysis, type of industry and manufacturing environment being studied, integrative practices, integrative barriers and the link between SCI and performance. Findings While SCI has been evolving to become an influential topic in the field of supply chain management, scholars have overlooked industrial contingencies by ignoring the differences between the studied industrial contexts, especially project-based manufacturing environments. The present review also reveals that no study of SCI has been conducted on the construction of renewable energy projects. Another finding is that case studies and research articles using networks as a unit of analysis are underrepresented. Originality/value This is the first work to advocate for an industrial contingency approach in the analysis of SCI. Thus, it proposes the offshore wind farm-construction industry as a potential study subject to broaden the knowledge in SCI in project manufacturing environments.


Author(s):  
Francisco Alejandro Pérez Gilabert ◽  
Jorge Luis Pena Acevedo

The objective of this study is to develop and test a framework for the role that supply chain strategy (SCS) and supply chain integration have in a firm’s financial performance and to increase the understanding of the role that these factors play in supply chain design. Structural equation modeling was used to test these relationships based on data obtained from small and medium exporting enterprises in Peru. This study responds to a gap in understanding the role of supply chains in small and medium enterprises (SMEs) and how firms in Latin America, especially in Peru, apply supply chain concepts. Findings indicate that companies should prioritize their integration efforts depending on the type of supply chain strategy. Likewise, results show that customer integration is directly related to a firm’s financial performance. This study responds to the need to understand the development of supply chain strategies and the generation of competitive advantage in Peruvian export-manufacturing SMEs.


2021 ◽  
Vol 1 (1) ◽  
pp. 43-69
Author(s):  
Augustine Castro Singine ◽  
Mustafa Cahid Ungan

In an environment with ever changing customers’ needs and intensifying global competition, quality processes and supply chain (SC) are critical for organisational success. To satisfy customers, outsmart competition and improve performance, contemporary organisations are trying to improve on their processes through integrated supply chains. In an attempt to address this question and effectively contribute to this topic, a comparative meta- analytical evaluation along with key moderator and mediator analysis was conducted. In the lens of many theories, SCI from two perspectives; SCID (internal, suppliers, customer integration) with 67 studies and SCIF (information, operational, relational integration) with 25 studies was assessed on overall performance as well as on both operational and business performance. A quantitative meta-analysis based on Hunter and Schmidt (2004) which was performed through Jamovi, revealed the following: The meta-analysis results which were obtained through Jamovi provided significant correlation coefficients for SCID and SCIF respectively (ř = .476, p <.002) and (ř =.508, p <.001). Therefore, indicating that the association between SCID and performance is medium and positive, while that of SCIF and performance is positive and large. This is a clear indication that SCI from the perspective of SCID and SCIF yields different results, with SCIF having a relatively large effect. Moreover, on average SCIF both at aggregate and individual level has a slightly large effect on performance than SCID. Operational performance was the most influenced by SCID and SCIF, although operational and relational integration indicated a significant larger effect on business performance. Thus, individual SCID and SCIF constructs have different effects on business and operational as overall performance. All moderators though with different levels of interactions indicated a significant effect on both SCID and SCIF. Of the three mediators tested, customer integration had a 32% negative effect, SC agility showed an 89.1% full mediation effect with flexibility indicating a 53% significant effect.


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