Inter-functional value co-creation as an antecedent of supply chain performance: a study based on the coordination theory

Abstract

PurposeThe purpose of this study is twofold. First, this study proposes to investigate the impact of inter-functional value co-creation (VCC) in a manufacturing firm’s value chain on supply chain performance, considering the moderating role of external integration. Second, this study proposes to validate a modified version of the VCC considering the inter-functional interaction context.Design/methodology/approachQuantitative data were collected using survey approach from 129 managers from 51 departments of 22 manufacturing firms performing roles in several areas, such as procurement, logistics, sales, marketing and production. This study uses a PLS-SEM to analyze the model measurement, through confirmatory factor analysis.FindingsThe empirical data supported the proposition of this study that the VCC degree (i.e. value co-production/value in use) between functions of the firm has significant positive effects on the performance of the supply chain, in customer service and flexibility.Practical implicationsThis study could be exceedingly useful for practitioners suggesting them to improve inter-functional integration by adopting VCC practices grounded on “value co-production” and “value in use.” Such practices may help to maximize supply chain performance.Originality/valueThe coordination theory was useful to deepen the analysis of its quadrant named “participatory design,” considering the relationship between VCC and inter-functional integration. This paper extended the knowledge about the relationship between the participatory design quadrant and the quadrant referring to organizational structures and processes.