scholarly journals Reassessing Supply Chain Fit: A Look at Moderating Factors

Author(s):  
Afresco Brazhkin

Numerous studies have stressed the critical nature of aligning a product's attributes to its supply chain design (i.e., supply chain fit). Fisher (1997) developed the concept of supply chain fit, stating that enterprises must evaluate the nature of their products' demand before constructing a supply chain. I extend Fisher's (1997) paradigm by providing a more thorough understanding of when firms should invest in supply chain fit. I argue that assuming that perfect supply chain fit always results in enhanced financial performance is oversimplistic, as the benefits of perfect supply chain fit may be outweighed by the resources expended to attain it. To conduct this research, I will use archival and survey data to examine the moderating effects of six dimensions of environmental uncertainty on the relationship between supply chain fit and financial performance (e.g., munificence, market dynamism, technological dynamism, technical complexity, product diversity, and geographic dispersion).

2017 ◽  
Vol 28 (4) ◽  
pp. 1243-1271 ◽  
Author(s):  
Jorge Tarifa-Fernandez ◽  
Jerónimo De Burgos-Jiménez

Purpose The purpose of this paper is to interpret the relationship between supply chain integration (SCI) and performance and to find empirical evidence of the moderating factors that affects said relationship, as well as to describe, classify, and discuss the empirical evidence. Design/methodology/approach A systematic review of 72 studies published during the period 2001-2015 is offered. A multi-criteria approach is used to sort, structure and classify papers with the purpose of contributing to the discussion. Findings The direct relationship between SCI and performance shows mostly positive results; however, the moderating effects analyzed show a clear lack of consistency since their effect and significance vary depending on the measures used, both in SCI and performance. Research limitations/implications The use of specific keywords of SCI to select an initial sample of papers may lead to a narrow perspective, although snowballing was used to include relevant papers initially excluded. Originality/value The analysis and classification of moderating factors as well as the measure of their tendency help to better understand the questions that remain unsolved regarding SCI and performance. Propositions for further research are suggested.


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.


Mathematics ◽  
2020 ◽  
Vol 8 (11) ◽  
pp. 1902
Author(s):  
Tsu-Ming Yeh ◽  
Fan-Yun Pai ◽  
Liang-Chuan Wu

This study examined the relationship between supply integration and relationship stability and the relationship between relationship stability and performance; furthermore, the moderation effect of environmental uncertainty on supply chain integration and relationship stability was analyzed. The subjects are typical small and medium-sized enterprises (SMEs) in developing countries that focus on niche markets to compete with large-scale manufacturers. Questionnaires were distributed to manufacturers to collect empirical data; in total, 566 valid samples were gathered. The results indicate that supply chain integration has positive effects on relational stability and that relational stability has positive effects on supply chain performance. Relational stability is a mediator between supply chain integration and supply chain performance. The contingency effects of environmental uncertainty on the relationships between internal integration and relational stability were determined in this research. This research framework extended past research on supply chain management; part of the research explored the relationship between supply chain integration and different measures of supply chain performance, as well as whether uncertainty affects supply chain integration and supply chain performance.


2018 ◽  
Vol 22 (03) ◽  
pp. 1850026 ◽  
Author(s):  
SAMUEL ADOMAKO

Extant entrepreneurial orientation (EO) literature suggests that EO positively affects firm performance, but several factors influence the potency of this relationship. However, the influence of adaptive and intellectual resource capabilities on the EO–performance linkage lacks theoretical clarity. Accordingly, deriving insights from the resource-based view and dynamic capabilities framework, this paper argues that variations in financial performance are a function of degree of EO and levels of adaptive and intellectual resource capabilities. Using primary data gathered from 245 small and medium-sized enterprises (SMEs) operating in Ghana, the study finds that when a firm’s adaptive and intellectual resource capabilities are well developed and deployed, the potency of EO as a driver of financial performance is enhanced.


2015 ◽  
Vol 20 (1) ◽  
pp. 71-82 ◽  
Author(s):  
Ville Hallavo

Purpose – The purpose of this paper is to examine how the moderating effect of uncertainty impacts the relationship of operational responsiveness and firm performance. Research on the relationship of supply chain fit and firm performance is discussed in isolation in different streams of research – such as in studies on responsiveness, agility, flexibility, efficiency and lean – without promptly recognising cross-stream contributions. This, at worst, prevents theory development. Therefore, the authors build a synthesis of literature from these streams. Grounded in the synthesis, a well-positioned empirical study that uses best research practices of past studies on the phenomenon is presented. Design/methodology/approach – A cross-sectional survey sample of 875 Russian manufacturing firms was analysed with hierarchical regression. Findings – The findings show that operational responsiveness leads to superior organisational performance if the relationship is moderated by uncertainty and supply chain responsiveness. Additionally, a direct relationship between operational responsiveness and operational performance was found. These results imply that efficiency is a precursor to responsiveness. Originality/value – This paper contributes to the unification of practice–performance studies on lean, agility, flexibility, efficiency and responsiveness into a single stream of research: supply chain fit. The empirical results support contingency theory in the context of supply chain design. This paper also contributes by shedding light on supply chain dynamics of an under-researched national context. For managers, this paper offers concrete advice on decision-making regarding supply chain strategy trade-offs.


2016 ◽  
Vol 17 (1) ◽  
pp. 97-114 ◽  
Author(s):  
Natalia Semenova ◽  
Lars G. Hassel

Purpose – Industries differ in their environmental impacts, such as emissions, water and energy use, fuel consumption and hazardous wastes, which will have implications for how environmental performance translates to operating performance and market value at company level. By incorporating industry-specific differences of environmental impacts, this paper includes industry-level environmental risk as a moderating factor on the relationship between two indicators of corporate environmental performance (CEP) (management and policy) and corporate financial performance (profitability and market value). The paper aims to discuss these issues. Design/methodology/approach – Using panel data of US companies across all industries, the paper empirically tests a regression model, which includes an interaction effect representing both the form and strength of dependency of CEP on the environmental risk of the industry. The paper adopts the natural resource based theory to argue that financial returns are a decreasing function of CEP in high environmental impact industries, where environmental spending beyond compliance is costly and there is not much opportunity for consumer orientation. Findings – The results show that environmental management has different impacts on operating performance at high and low environmental risk of the industry (form of relationship) while environmental policy (reporting) has a stronger signal on market premium in industries with low rather than high environmental risk (strength of relationship). Differences in both form and strength of moderating effects are demonstrated. Research limitations/implications – Further research can introduce other industry-specific moderating factors, such as the disclosure maturity of the industry and the institutionalization of environmental disclosures across boarders in the industries, in order to explore the complexity of the relationship. Practical implications – The results of the paper are relevant to investors, company managers and a broad group of stakeholders when considering both industry- and company-level environmental risks. Originality/value – Previous studies have relied on controlling for industry membership. This paper uses an industry-specific environmental variable, environmental risk of the industry, to examine the form and strength of moderating effects.


2015 ◽  
Vol 23 (1) ◽  
pp. 61-88 ◽  
Author(s):  
Kader Şahin ◽  
Seyfettin Artan ◽  
Seda Tuysuz

Purpose – This paper aims to investigate the moderating effects of a board of directors on foreign direct investment (FDI)’s international diversification in Turkey. Design/methodology/approach – A sample of Turkish multinational firms with FDI was used. Two different aspects of international diversification were considered: the relationship between international diversification and financial performance and the moderating effect of board composition on the relationship between international diversification and the firm’s financial performance. Firm-level data were obtained from the Istanbul Stock Exchange in Turkey. Findings – The findings reveal that international diversification leads to better financial performance according to market-based measures. On the other hand, this study indicates that the board characteristics have a moderating effect on international diversification and financial performance. Research limitations/implications – The study is based on a sample of publicly listed firms in Turkey, and this restriction limits the generalizability of the findings. Practical implications – The internalization efforts of Turkish FDI have led to better financial performance in terms of market-based measures. The results have stated that the interest of independent outside directors is aligned with lower-risk investment decisions. Independence of independent outside directors in Turkey is interrogated by practitioners or the Capital Markets Board of Turkey. The larger board size which a moderator variable is provided, the wider shareholder value in Turkey is. Social implications – One can understand that the development of market-supporting institutions provides the support for entry to an emerging economy which is inefficient or incomplete markets and highly concentrated family ownership. Originality/value – These findings provide important implications for corporate governance and highlight the need for further research on the role of governance in firm internationalization. This study not only helps to understand how board characteristics affect the choice of international diversification decisions, but the results also allow to assess the performance implications of these choices for a particular period.


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