The effect of supply chain integration on the alignment between corporate competitive capability and supply chain operational capability

Abstract

PurposeThe purpose of this research is to identify the shape of the interactive relationship between corporate competitive capability and supply chain operational capability for performance improvement, and to investigate the effects of supply chain (SC) integration on such interactive relationships.Design/methodology/approachSeparate moderated regression analysis was used to test the hypotheses of interest in this study on each of three SC integration groups: the independent operation group, the internal integration group, and the external integration group. Three models present the hierarchical addition of items addressing proposed corporate competitive capabilities, SC operational capabilities, and interacting effects, respectively.FindingsThe effect of interaction between corporate competitive capability and SC operational capability on performance improvement becomes insignificant as the developmental stage of SC integration increases. In other words, in firms with a high level of internal integration or external integration, such integration substitutes for the role of the interaction effect between corporate competitive capability and SC operational capability on performance improvement.Research limitations/implicationsIn order to characterize more precisely the dynamic positioning of a firm's SCM strategy this paper suggests detailed analyses of structural relationships among the constructs relating to corporate SCM initiatives, SC functional initiatives, performance measures, and the SC integration level are required. For this, replication of the study described in this paper with a sample of the US and European firms would be helpful.Practical/implicationsPerformance accumulation from customer satisfaction through market‐based performance to financial performance according to the developmental stage of SC integration suggests the migration path of matching type between corporate competitive capability and SC operational capability from differentiation/customer service capabilities‐logistical capability through innovative marketing capability‐technological capability to cost leadership capability‐structural capability. Such a migration path can be a lever for establishing the dynamic positioning of a firm's SCM strategy.Originality/valueThis research identified the shape of the interactive relationship between corporate competitive capability and SC operational capability for performance improvement and investigated the effects of SC integration on such interactive relationships.