External Supply Chain Integration Research Articles

Factors Affecting Supply Chain Integration in Omni-Channel Retailing

China’s retail industry has vigorously developed an omni-channel retail strategy in the last few years. However, quantitative research on this development remains relatively scarce. This article addresses this by building a theoretical model of the relationships between internal supply chain integration, external supply chain integration and financial performance in omni-channel retailing and then verifies it by using a structural equation model to analyze 356 omni-channel retailers. The results show that in the case of omni-channel retailers, the supply chain’s internal information integration has a significant positive impact on its external information integration and that the supply chain’s internal process and internal organization integration significantly positively impact its external process and external organization integration. And it also shows the supply chain’s external information integration and external organization integration positively impact omni-channel retailers’ financial performance. However, the supply chain’s external process integration is not found to have the same effect on financial performance. This study addresses a theoretical gap in the research on the impact of supply chain integration on firm performance in omni-channel retailing. In addition, it provides suggestions about how omni-channel strategies can be effectively implemented in China’s retail industry.

Forensic accounting and firm performance: An empirical investigation on emerging markets

The current study aimed at exploring the impact of supply chain internal and external integration on the operational performance of manufacturing companies operating in Jordan, as well as addressing the possibility of a mediation effect of lean operations and practises on the proposed relationship. Achieving the study objectives necessitated using the deductive approach and the descriptive survey approach. Using a well-designed questionnaire, the primary data was collected from a 315-manager sample randomly selected from the companies. Accordingly, the nature of how supply chain integration, lean operations, and operational performance impact each other was investigated. The study results revealed that integrating the supply chain both internally and externally could increase the opportunity to attain a more desirable operational performance, particularly in terms of quality performance measures. Moreover, in the vein of adopting lean practices among manufacturing companies, a positive mediation effect was found. Thus. In light of these results, it is concluded that lean operations, as a mediating variable, positively influence the association between internal and external supply chain integration on quality measures of operational performance.

The mediating role of lean operations on the relationship between supply chain integration and operational performance

The current study aimed at exploring the impact of supply chain internal and external integration on the operational performance of manufacturing companies operating in Jordan, as well as addressing the possibility of a mediation effect of lean operations and practises on the proposed relationship. Achieving the study objectives necessitated using the deductive approach and the descriptive survey approach. Using a well-designed questionnaire, the primary data was collected from a 315-manager sample randomly selected from the companies. Accordingly, the nature of how supply chain integration, lean operations, and operational performance impact each other was investigated. The study results revealed that integrating the supply chain both internally and externally could increase the opportunity to attain a more desirable operational performance, particularly in terms of quality performance measures. Moreover, in the vein of adopting lean practices among manufacturing companies, a positive mediation effect was found. Thus. In light of these results, it is concluded that lean operations, as a mediating variable, positively influence the association between internal and external supply chain integration on quality measures of operational performance.

Seeking sustainable performance through organizational resilience: Examining the role of supply chain integration and digital technology usage

Although organizational resilience is crucial for sustainable development of enterprises, how to build organizational resilience remains unclear in the age of digital transformation. Drawing on resource orchestration theory, this study examines the impact of supply chain integration on organizational resilience and subsequent sustainable performance. Using a sample of 218 Chinese agriculture firms, the empirical results show that supply chain integration has a positive impact on organizational resilience. Organizational resilience partially mediates supply chain integration and sustainable performance. Digital technology usage has a positive moderating effect on the relationship between internal supply chain integration and organizational resilience, but has no significant moderating effect on the relationship between external supply chain integration and organizational resilience. This study contributes to resilience research with an eloquent theoretical explanation and strong empirical evidence on how organizational resilience help firms to achieve sustainability through digital technology usage by enabling internal and external supply chain integration.

How big data-driven organizational capabilities shape innovation performance? An empirical study from small and medium manufacturing enterprises

PurposeThis study mainly aims to explore the causal nexus between big data-driven organizational capabilities (BDDOC) and supply chain innovation capabilities (SCIC) and innovation performance (IP), then explore the indirect effect of SCIC and also test the moderating effects for both internal supply chain integration (ISCI) and external supply chain integration (ESCI) into the relationship between BDDOC and SCIC.Design/methodology/approachIn order to test the conceptual model and the hypothesized relationships between all the constructs, the data were collected using a self-reported questionnaire by workers in Jordanian small and medium manufacturing enterprises. Partial least squares-structural equation modeling (PLS-SEM) was employed to test the model.FindingsThe paper reached a set of interesting results where it was confirmed that there is a positive and statistically significant relationship between BDDOC, SCIC and IP in addition to confirming the indirect effect of SCIC between BDDOC and IP. The results also showed that there is a moderating role for both ESCI and ISCI.Originality/valueThis study can be considered the first study in the current literature that investigates these constructs as shown in the research model. Therefore, the paper presents an interesting set of theoretical and managerial contributions that may contribute to covering part of the research gap in the literature.

Strategic initiatives and institutional conformity for low carbon supply chain integration

ABSTRACT Research has called for firms to prioritize reducing carbon emissions, however strategies to do so with external partners through institutional conformity and integration are lacking in research and practice. Drawing upon the resource-based view and institutional theory, the study in this paper proposes and tests a series of research hypotheses with Chinese firms. Structural equation modelling was used to analyse data and findings reveal carbon emissions reduction and low carbon institutional pressures are crucial forces driving external low carbon supply chain integration with external suppliers and customers. Further, low carbon supply chain integration overall positively impacts a firm’s environmental performance, external customer integration positively impacts a firm’s financial performance, and environmental performance plays a mediating role between external low carbon supply chain integration and financial performance. This study contributes by shedding new light on two patterns of external low carbon supply chain integration compared to prior studies.

The impact of participative budgeting on the supply chain resilience amid COVID-19 pandemic: Empirical evidence from Vietnam

Disruptive impact as the Covid-19 pandemic reduces the motivation of managers working in the supply chain function. A motivation as organizational commitment is crucial for organizations to foster supply chain resilience through enhancement of internal and external supply chain integration. This study draws upon the budgeting literature to explore the role of participative budgeting on the supply chain resilience amid Covid-19 pandemic. Data were collected from 191 managers working in supply chain functions of organizations operating in industrial zones in Vietnam. The technique of partial least square structural equation modelling was used to assess data. The results suggest that Covid-19's disruptive impact increases participative budgeting, which results in organizational commitment. This commitment leads to the enhancement of internal and external supply chain integration, which in turn leads to supply chain resilience. This study is the first study to explore how and why budgeting practices lead to the enhancement of supply chain resilience amid Covid-19 pandemic.

Dynamic capabilities in the “new normal”: a study of organizational flexibility, integration and agility in the Peruvian coffee supply chain

PurposeConsidering the unprecedented supply chain disruptions due to the COVID-19 pandemic, especially in the agri-food sector, the possession of dynamic capabilities (DCs) – particularly, the need for higher agility – seems to be the key to survival in highly uncertain environments. This study aims to use the dynamic capability view (DCV) theory to analyze how three key supply chain capabilities – organizational flexibility, integration and agility – should be combined to obtain the desired supply chain performance.Design/methodology/approachThe authors designed a conceptual model in which the relationships between these three key capabilities and supply chain performance were hypothesized. The model was first tested through partial least square regression using survey data collected from 98 members of the Peruvian coffee supply chain. A fuzzy-set qualitative comparative analysis (fsQCA) was conducted to uncover how DCs could be combined in successful supply chain configurations.FindingsThe authors show that organizational flexibility is a driver of higher agility in agri-food supply chains, together with external and internal supply chain integration, that have a direct impact on agility, which positively affects supply chain performance. Higher levels of supply chain agility are necessary but insufficient to guarantee high performance, as sufficiency is reached when both integration (internal and/or external) and agility are present.Originality/valueThis study represents a pioneering attempt to apply the DCV theory to agri-food supply chains – characterized by many sources of uncertainty. All the DCs are included within the same model and the joint use of PLS regression and fsQCA provides evidence about the relationships between DCs and how they can empower agri-food supply to obtain the desired performance.

Effects of cloud computing assimilation on supply chain financing risks of SMEs

PurposeThe purpose of this study is to examine how cloud computing assimilation reduces supply chain financing (SCF) risks of small and medium enterprises (SMEs). This study also investigated the mediating roles of internal and external supply chain integration between cloud computing assimilation and the SCF risks of SMEs, as well as the moderating role of environmental competitiveness.Design/methodology/approachData was collected from surveys of SMEs located in China. Multiple regression analysis was used to validate the proposed theoretical model and research hypotheses.FindingsThe findings show that cloud computing assimilation could reduce the SCF risks of SMEs directly. The results also indicate that both internal and external supply chain integration mediate the relationship between cloud computing assimilation and SCF risks. Furthermore, environmental competitiveness inhibits the effects of cloud computing assimilation on SCF risks.Originality/valueTo our best knowledge, this is the preliminary study to explore the role of cloud computing assimilation in reducing the SCF risks of SMEs. Also, this study attempted to investigate the process by which cloud computing assimilation affects the SCF risks of SMEs.

Is relationship evolution good or bad? It depends! A qualitative and quantitative examination of the relational behaviors and the stimulants of supply chain integration

AbstractBuyer–supplier (B–S) relationships are dynamic. Nevertheless, research on external supply chain integration (SCI) has largely adopted a static‐snapshot perspective and has failed to grasp SCI's dynamic reality. The scant research devoted to SCI's dynamic perspectives suggests that the strength and scope of ties between buyers and suppliers differ based on integration levels. However, ambiguity persists regarding the relational behaviors exhibited across integration levels, as well as the stimulants that motivate firms to evolve their relationships. With buyers increasingly relying upon suppliers (and vice‐versa) and compounded by the knowledge that nearly half of SCI initiatives end up as failures, the need for a holistic framework that takes into account the underlying dynamics of relational behaviors and stimulants cannot be overstated. Using a mixed‐methods approach, six relational behaviors that differ in their saliency across SCI levels are identified, and eight stimulants that motivate B–S relationships to evolve are extracted. Specifically, we note that once a stimulant is activated, it remains influential across SCI levels, though its potency may vary. Our research significantly extends the contemporary understanding of SCI by (i) providing a holistic framework to comprehend SCI from a behavioral perspective, and (ii) noting that the highest integration levels do not necessarily typify successful B–S relationships. In doing so, we combine an evolutionary perspective with a relationship portfolio perspective for examining B–S relationship dynamics, thereby offering a comprehensive view to yield finer‐grained insights into B–S relationship dynamics.

New Business Models from Prescriptive Maintenance Strategies Aligned with Sustainable Development Goals

The industry has entered on the Fourth Industrial Revolution, the so-called Industry 4.0, with global markets and strong competition, some traditional manufacturing firms are implementing new maintenance innovations and policies, based on digitalisation and data driven approach, but also based on servitisation. The implementation of these new equipment maintenance business models, could require new organisational approach at different levels. Different sorts of integration are arranged, in vertical with a flat structure of intelligent, flexible and autonomous units working integrated, in horizontal with a strong external and internal supply chain integration, and in transverse, with an integrated approach that link internal and external stakeholders. A new prescriptive maintenance business model for equipment exploiting digitalisation opportunities, including stakeholder relationship is proposed. Different perspectives such as organisational, innovation and sustainability have been adopted to discuss the implications of the proposal. The social value potentially gained as well as the alignment with the SDGs are discussed as well.

Does plant role moderate relationship between internal manufacturing network integration, external supply chain integration, operational performance in manufacturing network?

PurposeThis paper aims to investigate the moderating effects of the role a plant plays in a manufacturing network on the relationships between its level of integration with other plants in the same manufacturing network (referred as “internal manufacturing network integration” in this paper), its interactions with suppliers/customers (referred as “external supply chain integration” in this paper), and its operational performance.Design/methodology/approachThis paper is based on the data from the sixth version of International Manufacturing Strategy Survey (IMSS VI). Specifically, this paper uses a subset of the IMSS VI data set from the 606 plants that identified themselves as one of the plants in a manufacturing network.FindingsThe results demonstrate plant role has a moderating effect on the relationship between internal manufacturing network integration and external supply chain integration, but not on the relationship between external supply chain integration and operational performance. Our research also highlights that plant role moderates the mediating effect of external supply chain integration on the relationship between internal manufacturing network integration and operational performance. More importantly, it indicates that if a plant wants to significantly increase its operational performance, it will have to strengthen its linkages with supply chain partners, no matter which role it plays in manufacturing network.Originality/valueThis paper supplements the existing research by developing further understandings on the relationship between internal manufacturing network integration, external supply chain integration and operational performance. Specifically, it examines the influence of plant role on such relationship and reveals the essence about in what context (in terms of plant characteristics) internal manufacturing network integration influences the operational performance of a plant in a manufacturing network through external supply chain integration.

Supply chain integration and national collectivism

Integration at an intra-organizational and supply chain (SC) level has been well studied to determine its benefits and drawbacks. The foundation of these studies is their assumption that managers choose integration based on economic considerations. Following the behavioral theory of the firm (BTF), strategic decisions are not always based on economics but are subject to the usual phenomena associated with aspirational levels. In this respect, the potential influence and consequences of national culture-building aspiration levels on the integration choice of decisionmakers remain unrecognized. This study researches the relationship between national collectivism values and the observed internal and external SC integration (SCI) of companies. We postulate that national collectivism values generate an aspirational need that moves integration–as a potential choice to satisfy this need–more into decisionmakers' focus. We explore the influence of two dimensions of a national culture of collectivism values (in-group and institutional) on decisionmakers' choice of higher or lower degrees of plant-level integration. In addition, we explore the operational performance efficacy of firms' integration practices. We combine data from two multi-country datasets, using mixed-effect models to analyze data from seven countries. The results indicate national collectivism values are positively related with plant-level use of internal but not of external SCI. Furthermore, SCI is positively related to operational performance. The study supports and extends BTF. It supports the assumption of behavioral forces in modern firms’ decision making and adds national culture as an external force to the theory.

How to Improve the Quality and Speed of Green New Product Development?

With the deep integration of supply chain with Internet and Internet of things, it is an important way for enterprises to win market competition and seek sustainable development to develop green new products through external green supply chain integration (GSCI). This study established a unified research framework of external GSCI, knowledge spiral (KS), green new product development (NPD), and top management’s environmental awareness (TMEA). Structural equation modeling and analytic hierarchy process are used to explore the mechanism of the established research framework. The research results of this paper are as follows: (i) Green supplier integration (SI) and green consumer integration (CI) have significant positive effects on green NPD speed (GS), green NPD quality (GQ), and KS, and KS has a significant positive effect on GS and GS, respectively. Compared with green CI, green SI has a greater impact on KS, GS, and GQ. In addition, compared with GS, KS has a greater impact on GQ; (ii) KS has a significant partial mediating effect in the relationship between green CI, GS, and GQ. Compared with GS, KS has stronger mediating effect between green CI and GQ. Compared with green SI, the equivalent KS capability is more significant in integrating green customer information; (iii) TMEA has a significant moderating effect on the relationship between KS, and GQ and has no significant moderating effect on the relationship between KS and GS. Future research will analyze the mediating effect of the four dimensions of KS in the relationship between external GSCM and the green NPD speed and green NPD quality.

Supply chain integration capabilities, green design strategy and performance: a comparative study in the auto industry

PurposeThis paper aims to examine how supply chain integration capabilities inform green design strategy adoption and whether green design strategy can lead to higher levels of environmental and economic performance.Design/methodology/approachA survey-based approach was used to empirically test the study hypotheses. Based on 216 usable responses collected from automakers around the globe, the authors compared the results from two different data groups (i.e. Chinese firms vs Western firms) using the structural equation modeling approach.FindingsIn the Chinese context, both internal and external supply chain integration capabilities are significantly related to the successful adoption of a green design strategy. However, the relationships are not significant in Western context. Green design is found to positively impact environmental performance in both contexts; however, no significant relationship is revealed between green design and economic performance in either context. Finally, environmental performance was found to have a significant and positive impact on economic performance in both contexts.Research limitations/implicationsThe cross-sectional survey design that was focused only on the auto industry may affect the inferences of causality and generalizability of this study.Practical implicationsManagers should understand their specific organizational context first, and then strategically develop their external and internal supply chain integration capabilities to maximize their green design efforts for improved environmental performance. Companies can be certain that the more gains made in environmental management, the more economic returns can be expected.Originality/valueThis research contributes to the existing resource-based view literature by linking supply chain integration capabilities to green design strategy adoption in different organizational contexts. It also sheds a light on the association between green design and different performance dimensions and adds value to the current debate on the association between environmental performance and economic performance.

An evaluation of supply chain integration across multi-tier supply chains of manufacturing-based SMEs in Malawi

PurposeThe purpose of this paper is to explain the interrelationships in internal and external supply chain integration (SCI) across multiple tiers of manufacturing-based small and medium-sized enterprises (SMEs) in a developing country, Malawi.Design/methodology/approachUtilizing the resource-based view, resource-dependence and network theory perspectives, and drawing on a multiple embedded case-study approach, the research investigated the internal and external linkages within three-tier supplier, manufacturer and retailer SCs and described varying perspectives of SCI across supply chain positions.FindingsFirms with strategic intra-firm resources were less committed to external integration, deploying their resources as a source of power to dominate and exploit their dependent partners. The SCI across multiple tiers was impaired by dependence but enhanced by interdependence strategies of firms. Although lack of trust, promotion of non-overlapping self-interests, corruption in sourcing processes and resource constraints negatively affected SCI, firm commitment to external integration promoted greater commitment among firms, thus having a positive effect on SCI.Research limitations/implicationsFurther analysis of SCI of SME triads and a more systematic longitudinal analysis across other market segments should be explored to generalize the conclusions of this study.Practical implicationsThe external influences on dyadic relationships go beyond the interactions of heterogeneous firms in the network to encompass interpersonal interactions across the network, where individuals may potentially prioritize personal connections and sabotage the interests of their firms.Originality/valueThe research explored the internal and external dimensions of SCI in multi-tier SCs of SMEs, and provided for the first time new evidence to show that firm commitment to engaging with partners complements the mechanisms of SCI within a developing country context. It highlights the need to develop trust, eliminate corruption, promote greater commitment of SC partners and encourage greater investment in firms’ resource capabilities to enhance SCI among SMEs.

Technological change, information processing and supply chain integration

PurposeTechnologies change quickly in the automotive industry. This can provide opportunities to firms from emerging economies who try to enter the world stage of automotive production, provided they can react to this more nimbly than established competitors. How technological change affects the supply chain coordination of incumbents from developed economies and new entrants from emerging economies should strongly determine the speed of competitive reaction. By using the example of automotive transmission development, the purpose of this paper is to provide a conceptual model for the analysis and offer research propositions.Design/methodology/approachThe authors build a conceptual model based on information processing theory and offer research propositions based on case study evidence of four automotive original equipment manufacturers (OEMs) and five suppliers.FindingsThe authors find symptoms of two larger trends: increasing specialization and technological linkages and a need to increase external supply chain integration beyond traditional structures. Comparing the effects on Japanese and German incumbents, the authors find that increasing external supply chain linkages proves to be harder for Japanese OEMs. Tight links and routines in the Japanese supply chain networks may harm OEM efficiency under the new technological conditions, e.g. the lack of complete part specifications and high demands for customization. Looking at effects on emerging market firms, Chinese OEMs use quasi-open modular production settings in transmission development and lean strongly on inputs from specialized foreign tier-one suppliers. Speed advantages must be weighed against long-term disadvantages of dependence and insufficient R&D investments.Research limitations/implicationsThe study explores how technological change affects inter-firm development processes. The authors propose a framework and hypotheses based on information processing theory and link the findings to the discussion on the impact of national institutional context on supply chain coordination.Practical implicationsOEMs wanting to adapt complex existing internal structures to the changing demands for information processing should focus first on improving internal capacities by improving the amount and richness of information flow. Implementing new standards for simultaneous and standardized software development across the supply chain is a key point for this. A second step should be to boost the internal capacity to process higher richness of information, i.e. to understand the meta-knowledge necessary to integrate across technological areas in the development of electronic control units (ECUs).Originality/valueThe authors draw on original interview data in developed and emerging markets and information processing theory to explore the complexity of inter-firm coordination in automotive supply chains.

Advertising message and negative switching barrier: effects on repurchase intention and word-of-mouth

Purpose- This study researched into the impact of supply chain integration and firm performance of food retailers in Turkey. The main purpose of this study was to identify the impact of internal and external supply chain integration on firms’ business and operational performance in the food retail sector in Turkey. Methodology- Two big cities in Turkey, namely, Istanbul and Eskisehir were selected for this study due to the availability of major food retailers in these cities. Stratified sampling method was used to select respondents. In total, 216 firms were selected out of which only 208 firms responded to the questionnaire distributed. Structural Equation Model specifically Amos was used to analyse the data. Findings- The study found a positive and significant relationship between internal and external integration, and the study also found a significant and a positive relationship between internal integration and firms’ operational and business performance. On the other hand, the study also found a significant and a positive relationship between external integration and firms’ operational and business performance. Conclusion- Consequently, retailers in Turkey were admonished to practice and uphold supply chain collaboration with their suppliers and customers.

Improving the Supply Chain Performance Using Variety Management in Malaysia

Purpose – The purpose of this paper is to examine how variety management activities including variety management strategy (VMS), supplier partnerships and close customer relationships affect supply chain performance at different levels of customisation. Design/Methodology/Approach – A survey-research methodology is employed using data from 363 manufacturing firms from Malaysia. In particular, cluster analysis and structural equation modelling were used to evaluate the proposed model according to the level of customisation. Finding – The results suggest that internal variety management strategy and external supply chain integration have a positive influence on supply chain performance. Customer relationships and variety management strategies influence supply chain flexibility more than partnerships with suppliers whereas variety management strategies and partnerships with suppliers influence supply chain agility more than customer relationships. In fact, for external integration in particular, customer relationships influence supply chain flexibility (i.e. reaction capability) rather than agility (i.e. reaction time) whereas partnerships with suppliers influence supply chain agility rather than flexibility. In a high-customisation context, close customer relationships are the most effective way to increase supply chain flexibility, whereas partnerships with suppliers are the most effective way to increase supply chain agility. In a low-customisation context, a VMS and customer relationships are the most effective way to increase both supply chain flexibility and agility. Originality/Value – This paper suggests key variety management activities to aid managers to better manage product variety ambitions in supply chain under varying customisation profiles through internal and external approaches.

Improving supply chain flexibility and agility through variety management

PurposeA trade-off exists between product variety and supply chain (SC) performance. To help mitigate the impact on SC of increased product variety, the purpose of this paper is to examine how variety management activities including variety management strategy (VMS), supplier partnerships and close customer relationships affect SC flexibility and agility at different levels of customisation.Design/methodology/approachA survey-research methodology is employed using data from 363 manufacturing firms from the UK and South Korea. In particular, cluster analysis and structural equation modelling were used to evaluate the proposed model according to the level of customisation.FindingsThe results suggest that internal variety management strategy and external SC integration have a positive influence on SC flexibility and agility. Customer relationships and variety management strategies influence SC flexibility more than partnerships with suppliers whereas variety management strategies and partnerships with suppliers influence SC agility more than customer relationships. In fact, for external integration in particular, customer relationships influence SC flexibility (i.e. reaction capability) rather than agility (i.e. reaction time) whereas partnerships with suppliers influence SC agility rather than flexibility. In a high-customisation context, close customer relationships are the most effective way to increase SC flexibility, whereas partnerships with suppliers are the most effective way to increase SC agility. In a low-customisation context, a VMS and customer relationships are the most effective way to increase both SC flexibility and agility.Originality/valueThis paper suggests key variety management activities to aid managers to better manage product variety ambitions in SC under varying customisation profiles through internal and external approaches.