Business model design and mass customization capability: is supply chain integration a missing link?

Abstract

PurposeThis study aims to examine the impacts of the novelty-centered business model design (NBMD) and efficiency-centered business model design (EBMD) on mass customization capability (MCC), as well as the mediating role of supply chain integration.Design/methodology/approachUsing survey data from 277 Chinese manufacturing firms, we test the hypothesized relationships by conducting structural equation modeling.FindingsThe results indicate that both NBMD and EBMD have significantly positive impacts on product-oriented MCC and service-oriented MCC. In addition, three dimensions of supply chain integration play different mediating roles in the relationship between BMD and MCC. Specifically, relational integration partially mediates the impacts of NBMD and EBMD on service-oriented MCC, information integration partially mediates the impact of NBMD on product-oriented MCC and service-oriented MCC and operational integration partially mediates the impact of NBMD and EBMD on product-oriented MCC.Originality/valueThis study opens the “black box” in the relationship between business model design and MCC, which offers insights on the complex process of supply chain integration and considers business ecosystem for operational performance.