Inter-firm Integration Research Articles

Institutional investor ESG activism and corporate green innovation against climate change: Exploring differences between digital and non-digital firms

This paper proposes that institutional investor ESG activism affects corporate green innovation through two attention mechanisms: intra-firm allocation of attention and inter-firm integration of attention. Using the attention-based view within an agency framework, we explore the moderating roles of media coverage and industrial chain relatedness in attention mechanisms, and whether such moderating effects differ in digital and non-digital firms. Using a dataset of 2726 Chinese listed firms from 2007 to 2021, we find that ESG activism by institutional investors enhances corporate green innovation, and media coverage strengthens this positive linkage. The positive moderating role of media coverage is more impactful in digital firms than in non-digital firms. An unexpected finding is that industrial chain relatedness negatively moderates the influence of ESG activism on green innovation, but this negative moderation is alleviated in digital firms. These findings provide novel implications for firms as they address agency conflicts through shareholder activism and advance green innovation in the digital era.

Effects of interfirm IT capability and interfirm trust on omnichannel integration: the mediating role of interfirm integration

PurposeAlthough past studies have suggested that business-to-business (B2B) interfirm relationship management contributes to a firm’s omnichannel integration, little research has been undertaken to reveal how that happens. This study aims to draw upon the relational view to propose a research model that associates interfirm information technology (IT) capability and interfirm trust with omnichannel integration through interfirm integration (i.e. authority integration and cooperative integration). Furthermore, this work considers a firm’s channel usage variety as the boundary condition of the interfirm integration’s influence.Design/methodology/approachThe research model was examined using a seemingly unrelated regression of archival data and matched a survey of 324 Chinese omnichannel firms.FindingsInterfirm IT capability positively relates to authority integration, and interfirm trust positively relates to cooperative integration. Authority integration and cooperative integration are both positively associated with omnichannel integration. A high level of channel usage variety strengthens the relationship between cooperative integration and omnichannel integration.Originality/valuePrior literature has called for research on the factors influencing omnichannel integration within a B2B setting. This study answers this research call by examining interfirm IT capability, interfirm trust and interfirm integration as factors associated with omnichannel integration. This work also examines how channel usage variety regulates the relationship between interfirm integration and omnichannel integration.

The impact of dynamic capabilities in disrupted supply chains—The role of turbulence and dependence

This paper clarifies how a firm's use of dynamic capabilities (DCs) affects its supply chain management capabilities (SCMCs) when facing turbulence and interdependencies. First, it explains that the extent to which their DCs strengthen SCMCs grows with greater environmental turbulence, less so for within-firm and within–supply chain turbulence but more so for external environmental turbulence. Second, it illuminates that the extent to which DCs strengthen SCMCs increases with greater dependence. Dependencies condition this impact by (1) directing the firm's attention toward gaps in these SCMCs, and by (2) increasing path dependencies (i.e., rigidities) in interfirm integration and collaboration processes, through self-reinforcing effects, that may lead to lock-ins. Third, it elucidates that as mutual dependence decreases, the positive marginal impact of DCs on SCMCs due to greater dependence further increases. The latter is because of the greater urgency that this condition creates. Consequently, DCs become more relevant as means to renew ordinary capabilities in disrupted supply chains when firms face increasing turbulence and dependence. The theoretical arguments are illustrated drawing on several firms that have faced disruptions in their supply chains.

СТРАТЕГІЧНІ АЛЬЯНСИ ЯК ПЕРСПЕКТИВНА ФОРМА КОРПОРАТИВНИХ ІНТЕГРАЦІЙНИХ ОБ’ЄДНАНЬ В МОЛОКОПЕРЕРОБНІЙ ГАЛУЗІ

The article considers the preconditions for the formation of strategic alliances as a promising form of corporate integration associations in the dairy industry of Khmelnytsky region. The strategic alliance, as one of the modern forms of inter-firm integration, has been found to be more flexible than clusters or joint ventures and involves a variety of agreements between companies that work together over a period of time to achieve tactical or strategic goals. The types of strategic alliances, their typology are highlighted and it is proved that they are the most attractive type of strategic integration associations of corporate structures. The main types of strategic alliances are integration alliances, pseudo-concentration alliances and complementary alliances. That is, a strategic alliance is a form of inter-firm integration, one of the fastest and most accessible ways to implement a global strategy, a “soft”organizational form of integration of dairy companies, which allows joint activities to maintain legal and economic independence; preparatory, organizational and experimental platform, within which the rational generation of conditions for further unification of partner companies. The main options for the development of strategic alliances in the dairy industry of Khmelnytsky region are proposed. Evaluation criteria and methods of building a matrix for selecting a potential partner for integration and formation of strategic alliances are substantiated. The prospects of dairy enterprises after joining the strategic alliance of dairy producers are as follows: uncertainty in demand for intermediate products is reduced and incentives are created to reduce the cost of raw milk; processing of raw materials is provided; enterprises producing raw milk are getting rid of uncertainty in the markets; there is an opportunity to produce new types of dairy products and expanding markets; the competitiveness of the local dairy industrial complex among other market participants is increasing; growth of economic potential of the enterprises forming a local dairy industrial complex is provided; the effect of economies of scale and the possibility of joint use of production capacity is observed; reduce uncertainty, as well as increase the stability of development, because in long-term relationships with a partner, a former competitor in the dairy market is a combination of experience and resources, the ability to transfer technology, knowledge and experience, joint research and staff training; gaining additional access to the market, where competitors are already operating and there is a stable demand for products of certain brands.

Interfirm resource integration in destination contexts

ABSTRACT In a co-producing tourism destination context, interdependent firms providing the destination product need to coordinate their relationships to achieve resource integration. We focus on two key dimensions of resource integration: (1) interfirm resource complementarity and (2) adaptation of activity structures. Survey data from tourism firms at Norwegian mountain destinations show that both resource complementarity and adaptation of activity structures are a function of trust, authority-based governance, and interfirm learning. Trust and learning have overall stronger effects on resource integration than authority-based governance, in particular on the development of resource complementarity. Authority-based governance has a significant effect on the adaptation of activity structures and a borderline significant effect on resource complementarity.

Integrated marketing channel relationships: integration dimensions and channel performance

PurposeInter-firm integration is a multidimensional concept. This study aims to examine the performance effects of two aspects of inter-firm integration, coordination integration and authority integration, and their co-alignment with strategic and contextual factors.Design/methodology/approachThe author conducted a quantitative empirical study using survey data of Japanese manufacturing companies’ relationships with their wholesalers to test hypotheses based on a literature review.FindingsCoordination integration has a positive performance effect. There is co-alignment between high (low) coordination integration and high (low) product uniqueness. High (low) coordination integration is associated with high (low) demand uncertainty. High (low) authority integration is consistent with high (low) behavioral uncertainty.Research limitations/implicationsThis study contributes theoretically to marketing channel and business-to-business marketing literature by holistically examining the linkages among governance forms, marketing-strategic factors, exchange-contextual factors and inter-firm performance. A limitation of this study is that the research data were collected in only one country, Japan. Thus, country-specific factors might affect the analytical outcomes.Practical implicationsAppropriate co-alignment among governance, strategies and contexts significantly influences performance. The findings have significant implications for manufacturing firms’ channel strategies.Originality/valueThis study tests the influences of two distinct dimensions of inter-firm integration on inter-firm outcomes, which few previous studies address. It comprehensively examines the linkages among governance forms, strategic factors, environmental factors and performance.

Drivers of Virtual Interfirm Integration and Its Impact on Performance in International Customer–Supplier Relationships

Consensus exists suggesting that advances in information and communication technologies are a major driver in restructuring Multinational Enterprises (MNEs) and their cross-border supply chain activities. However, the role of virtual interfirm integration and its antecedents, contingency conditions and its association with performance in international exchange relationship is not clearly specified. This study proposes that virtual interfirm integration can serve as an alternative governance mechanism for suppliers. Thus, we examine its drivers, moderators, and performance outcomes in international exchange relationships in the context of suppliers and their MNE customers. The empirical context is a study of 240 Taiwanese-based electronics equipment manufacturers. We explore the effect of communication culture, internal, inter-organizational, and environmental dimensions on virtual interfirm integration, and supplier performance in international exchange. We conclude by sharing our findings on the pertinence of virtual interfirm integration in the supplier–MNE buyer relationships.

Dominance of agility in tourism value chains: evidence from India

PurposeTourism supply chains (SCs) are recently gaining importance and there is a dire need for empirical testing and theory development in allied areas. The current investigation aims to explore the importance of management learning, relationship development, shared vision, inter-firm integration and technology perception as essential management capabilities required for the development of dynamic capability of tourism SC agility. Furthermore, the study explores the agile influence on competitive advantage.Design/methodology/approachThe study collected perceptual responses from 233 active participants and respondents in the tourism sector. The collected data were analyzed for the validity of the proposed relationships through partial least squares.FindingsFindings suggest relationship development, shared vision, inter-firm integration and technology perception as significant enablers. Furthermore, tourism SC agility was found to enhance competitive advantage.Originality/valueThe study further advances theory development and empirical testing through extending the concept of agility to tourism SCs and examining its enablers. Furthermore, the study developed measured for the utilized enablers of tourism SC agility through appropriate development in tourism contexts.

Reverse resource exchanges in service supply chains: the case of returnable transport packaging

PurposeThe purpose of this paper is to understand how reverse resource exchanges and resource dependencies are managed in the service supply chain (SSC) of returnable transport packaging (RTP).Design/methodology/approachA single case study was conducted in the context of automotive logistics focusing on the RTP SSC. Data were collected through 16 interviews, primarily with managers of a logistics service provider (LSP) and document analysis of contractual agreements with key customers of the packaging service.FindingsResource dependencies among actors in the SSC result from the importance of the RTP for the customer’s production processes, the competition among users for RTP and the negative implications of the temporary unavailability of RTP for customers and the LSP (in terms of service performance). Amongst other things, the LSP is dependent on its customers and third-party users (e.g. the customer’s suppliers) for the timely return of package resources. The role of inter-firm integration and collaboration, formal contracts as well as customers’ power and influence over third-party RTP users are stressed as key mechanisms for managing LSP’s resource dependencies.Research limitations/implicationsA resource dependence theory (RDT) lens is used to analyse how reverse resource exchanges and associated resource dependencies in SSCs are managed, thus complementing the existing SSC literature emphasising the bi-directionality of resource flows. The study also extends the recent SSC literature stressing the role of contracting by empirically demonstrating how formal contracts can be mobilised to explicate resource dependencies and to specify, and regulate, reverse exchanges in the SSC.Practical implicationsThe research suggests that logistics providers can effectively manage their resource dependencies and regulate reverse exchanges in the SSC by deploying contractual governance mechanisms and leveraging their customers’ influence over third-party RTP users.Originality/valueThe study is novel in its application of RDT, which enhances our understanding of the management of reverse exchanges and resource dependencies in SSCs.

The impact of buyer-supplier integration on supplier logistics performance in the hospital sector in Tanzania: the moderation effect of buyers' cross functional integration

Based on the resource-based view (RBV) theory, this study examines the association between buying firms' cross functional integration, buyer-supplier integration and supplier logistics performance in buyer-supplier relationships. RBV considers these two organisational dimensions of supply chain integration as strategic resources which play an important role in improving logistics performance. This research examines the effects of both intra-firm integration and inter-firm integration on supplier logistics performance with survey data from key informants in the public medicine supply system in Mainland, Tanzania. The unit of analysis is the purchasing relationships between public health facilities and focal suppliers acting as public agents of the national medical stores department (MSD). The empirical analysis is based on data reported by 166 purchasing managers, and demonstrates that stronger buyer-supplier integration improves supplier logistics performance significantly. There is no main effect of the buying firm's cross functional integration on supplier logistics performance, but more extensive cross functional integration in the buying firms enforces the effect of buyer-supplier integration on supplier logistics performance significantly, and these findings indicate that extensive cross functional integration in the buying firms provides an administrative infrastructure that enhance the effectivity of extensive supplier-buyer integration.

Cross‐Functional Integration Revisited: Exploring the Conceptual Elephant

Despite multiple decades of previous research, cross‐functional integration (CFI) remains a poorly understood concept. We argue for definitional clarity to differentiate CFI from other related concepts, such as interfirm integration or supply chain integration. We also argue for theoretical grounding to provide context for understanding the role of CFI within a firm as well as between firms. This article provides a foundation for researchers to move forward in creating a broader understanding of CFI as a focal construct of interest within the supply chain domain.

Can intrafirm IT skills benefit interfirm integration and performance?

This study develops a model to examine whether intrafirm, hard and soft IT skills have cross-boundary effects on interfirm collaboration and integration, thus leading to better supply-chain performance. A model with eight hypotheses was developed and tested using data collected from 250 Taiwanese manufacturing firms. Seven hypotheses find empirical support. The results show that intrafirm IT skills indeed can benefit interfirm collaboration and integration and thus, supply-chain performance. Our findings suggest that the value of skilled IT professionals for interfirm integration, supply-chain performance and collaborative relationships between firms is critical for realizing that value.

Contextual Influences on Managerial Attitudes toward Supplier Integration: A Cross-Country Study

Studies show the benefits of supplier integration, yet negative attitudes toward supplier integration may exist that constrain the initiative. The source of these negative attitudes is unclear, however. While literature tends to treat inter-firm management issues, e.g. supplier integration, separately from intra-firm management issues, we posit that with regards to attitudes, one is indicative of the other, and that the firm context influences how this occurs. Specifically, our research proposes that (A) characteristics related to intra-firm integration influence attitudes toward inter-firm integration, and (B) such influences have opposing strengths between the United States (U.S.) and China. Using theory about attitudes from social psychology literature and data from 224 U.S. and 117 Chinese manufacturing managers, our study finds that managerial attitudes toward supplier integration depend on the degree to which a collaborative organizational culture and synchronous manufacturing practices exist within a firm. Moreover, in the Chinese context, the influence of a collaborative organizational culture decreases and the influence of synchronous manufacturing practices increases. The opposite is found in the U.S. context. Our results suggest that overcoming negative attitudes requires more than simply espousing the benefits of supplier integration; looking deeper into an organization’s situational context is required.

The role of market orientation in building supply chain capabilities for fast-growth family SMEs

This research investigates the role of market orientation (MO) and supply chain capabilities in Australian fast-growth family SMEs (FGFSMEs). Two research questions are addressed: i) how does MO affect supply chain capabilities (i.e., information exchange, inter-firm activity integration, inter-firm coordination & supply chain responsiveness)?; and ii) how do supply chain capabilities influence sales performance? Statistical analyses involved the use of exploratory and confirmatory factor analytic techniques and structural equation modeling. Results indicate that supply chain capabilities are able to transform a market-based resource into higher value for FGFSMEs. The mediation effect of supply chain capabilities implies that incorporating mediators can help better explain the impact of MO on firm performance. In other words, embedding MO into supply chain systems enables these entities to enhance channel specific assets through activity integration, information exchange and superior coordination with supply chain partners. Family firm management needs to foster organizational cultures that embody MO throughout the organization.

International R&D partnerships and intrafirm R&D–marketing–production integration of manufacturing firms in emerging economies

Although cross-functional integration is important for research and development (R&D), research about implications of cross-functional integration has been rather sparse. In new product development (NPD), no study to date has examined intrafirm as well as interfirm integration of key functions such as intrafirm R&D–marketing–production together with interfirm integration of host R&D–partner R&D. Such marketing and operations interface contributes to a better understanding of how operational and marketing activities impact on competitiveness and firm performance. This study collected data from 202 electronics manufacturing firms operating in an emerging economy, mainland China and Hong Kong with international R&D partnerships. The findings indicate that a high level of R&D integration between firms improved NPD performance when cross-functional integration is based on existing rather than new product configurations and key technologies. Interestingly, in high distance situations, cross-functional integration in the production validation stage generated NPD success. The findings show that high environmental uncertainties lead to a high level of host and partner firms R&D integration. However, product newness has no significant effects on R&D integration in any of the NPD stages.

Does IT alignment between supply chain partners enhance customer value creation? An empirical investigation

In today's hypercompetitive market, a firm's individual efforts, by themselves, are not sufficient to respond to marketplace changes in a timely and effective manner. Rather, the firm must rely on its intermediaries and bundle their respective resources to create responsiveness and added value to customers. In this investigation, the authors draw on the relationship marketing literature and the resource-based perspective to examine how firms can increase their customer value creation by exploring two specific driving forces, i.e., strategic importance of supply chain partners and interfirm integration, and relationship-enabled responsiveness as the dynamic capabilities derived from the driving forces. Using the developed scales for customer value creation, hypotheses are tested on data collected from 184 firms. Results suggest that strategic importance of supply chain partners motivates interfirm integration, i.e., strategic collaboration and information technology alignment, setting the stage for enhanced relationship-enabled responsiveness, and subsequently, customer value creation for the firm.

Tourism Destination Development and Industries' Scale-Free Distribution

Successful tourism destination development rests upon how actors internalize and integrate a shared strategy. In general, tourism enterprises can manage inter-firm integration on a continuum from conventional and individualistic collaboration with ad hoc coordination, to collaboration administered through common ownership. An advantage of the latter form is that the actors can act in a coherent and unified way. This research note argues how a scale-free distribution – with one or a few dominant and numerous small actors – can enable a destination to achieve an integrated and shared strategy. It also calls for future studies on scaling behaviour in the tourism industry.

IT as An Enabler to Enhance Fast Growth Small-to-Medium Enterprise Performance

Information Technology (IT) is regarded as a facilitator for both small and large firms to speed up transactions between firms and their suppliers and customers, achieve real-time communication, lower transaction costs, and enhance speed and flexibility. However, understanding whether and how IT can help firms to create business value still remains unresolved. Drawing upon resource-based view theory, source-position-performance framework, we develop and test a theoretical model to explore the interrelationships between IT resources (IT human resources, IT infrastructure), IT capability (back-end integration), IT-enabled inter-firm processes (activity integration, coordination, partnership enhancement), and organizational performance in the fast growth small-to-medium enterprises (SMEs) context. We propose that the value of IT depends on how firms employ technologies to develop IT capability which facilitates inter-firm integration and enhances intermediate business processes along the value chains. Struct...

HR Practices as Antecedents of Supply Relationship Integration: The Inter- and Intra-Firm Contexts

This research draws on organizational constructs to investigate the role of HR practices as antecedents of supply relationship integration in inter- and intra-firm contexts. We argue that HR practices can be designed to follow a “specialized” approach or to follow a “relational” approach by promoting collaboration and information sharing at supply relationship level. Drawing on inductive case data from two earlier papers, we identify HRPs supporting standardization as a critical facilitator of inter-firm integration and HRPs supporting mutual adjustment as a critical facilitator of intra-firm integration. This paper contributes to operational integration literature by highlighting the role of HRM in supply relationship integration.

THE IMPACT OF INFORMATION INTEGRATION IN THE SUPPLY CHAIN ON FINANCIAL PERFORMANCE

Companies in Indonesia are still struggling to improve their intra- and inter-firm integration, and are still in the early stages of such integration. Therefore, this study is to measure and confirm the relation of horizontal information integration within a company's cross functional integration to vertical information integration of the company with their customers and suppliers, and how that affects customer satisfaction and financial performance. We used structural equation modeling (SEM) to investigate supplier and customer integration strategies using a sample of 90 manufacturing, distribution, and retail companies in Indonesia. The respondents from each company were limited to senior managers with functional areas of expertise and responsibility. The research was conducted through a survey questionnaire. The results of the study show 1) a positive direct relationship between integrated information and customer satisfaction, 2) a positive relationship between customer satisfaction and financial performance, and 3) a positive relationship from integrated information through to financial performance. The holistic implementation of information integration strategies in other developing countries can help companies to excel and gain measurable financial performances