Supply Chain Integration Capabilities Research Articles

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.

Determining critical success factors related to the effect of supply chain integration and competition capabilities on business performance

This study analyzes those critical success factors related to supply chain integration (SCI) and competition capabilities (CC) and which have more effect on business performance (BP) by using a structural equation model. For this purpose, the relationship between integration, CC and BP has been analyzed. Data was obtained from the survey that applied to Turkish Small and Medium Sized Enterprises (SMEs) and we examined the critical factors by using a Structural Equation Model to analyze which factors have more effect on BP. As a result of the study it was found that there are positive associations between SCI and CC, and both SCI-CC and BP and it was also found that most critical factor that affects BP is reliability and the least important one is lower price.

Supply chain integration: an empirical study on manufacturing industry in Malaysia

PurposeThe purpose of this paper is to attempt to identify the relationship between supply chain process integration and firm performance.Design/methodology/approachThe dimension classification and measurement instrument of the framework adapted from the previous research focus on firm performance impacts of digitally enabled supply chain integration (SCI) capabilities. The study employed the quantitative method where convenience sampling and self‐administered survey questionnaires were sent to 98 conference participants in Malaysia. The research framework was pre‐tested using multivariate analysis.FindingsThe findings reveal that all three dimensions of supply chain process integration were statistically significant to firm performance. Furthermore, information flow integration shows a greater influence than physical and financial flow integration.Research limitations/implicationsThis study focused on the manufacturing sector with respondents who were participants of a conference.Practical implicationsThe results offer insights to supply chain management practitioners and policy makers on the importance of SCI and information technology (IT) infrastructure to improve the competitiveness of manufacturing industry in terms of operational excellence, revenue growth and customer relationship.Originality/valueThis study adds to the body of knowledge by providing new data and empirical insight on the relationship between SCI and firm performance specifically for the manufacturing industry in Malaysia. In addition, the findings may invite opportunities for comparative studies mainly with other industries as well as other developing and developed economies.

Electronic commerce applications for supply chain integration and competitive capabilities

PurposeThe purpose of this paper is to empirically examine the impacts of supplier‐ and customer‐oriented electronic communication technologies (ECTs) (electronic data interchange (EDI) and internet‐based) on supply chain integration and manufacturing competitive capabilities (flexibility and quality).Design/methodology/approachThe research model is based on resource‐based view of technology use, ECTs, and supply chain management literature. Data from 711 international manufacturing firms International Manufacturing Strategy Survey (IMSS IV) are analyzed using exploratory factor analysis and structural equation modeling to test the proposed relationships.FindingsThe results suggest: the importance of applying two specific ECTs (EDI and internet‐based) for both supplier and customer integration; and the direct impact of supplier integration and customer integration on manufacturing competitive capabilities.Research limitations/implicationsExcept for perceptual biases inherent to survey methodology, this research provides rich implications on ECTs (particularly, EDI and internet‐based) on supply chain integration and manufacturing competitive capabilities.Practical implicationsThe findings of this research provide practical management insights on ECTs investment and deployment practices. Creation and delivery of values require effective integration of technologies for key performance outcomes across suppliers, customers and internal business processes.Originality/valueThis paper fills the research gap by presenting a research model and empirically validates how ECTs impact on quality and flexibility based on rich empirical data of 711 firms of manufacturing firms.

Developing supply chain dynamic capability to realise the value of Inter-Organisational Systems

Built upon the process theory and the view of dynamic capabilities, this study defines two types of supply chain dynamic capabilities – supply chain integration capability and supply chain cooperation capability. The study also proposes that these supply chain dynamic capabilities play a significant role in determining the performance of Inter-Organisational Systems (IOS). A general survey has been conducted in the personal computer industry in Taiwan to validate the research model. The results show that supply chain integration capability has a greater moderating effect on the performance of IOS than supply chain cooperation capability.

Anticipated IT infrastructure and supply chain integration capabilities for RFID and their associated deployment outcomes

This study looks at the perceived ability of components of IT infrastructure integration and supply chain process integration to predict specific radio frequency identification (RFID) system deployment outcomes—exploration, exploitation, operational efficiency, and market knowledge creation. Data for this pilot research study was collected using a survey questionnaire administered online to members of the Council of Supply Chain Management Professionals (CSCMP). It was hypothesized that data consistency and cross-functional application integration, both elements constituting IT infrastructure integration, and information flow integration, physical flow integration, and financial flow integration, all elements constituting supply chain process integration would be positively associated with and predict the four RFID system outcomes. Multiple regression results show partial support for all four proposed hypotheses. Cross-functional application integration and financial flow integration predicted exploration, while data consistency and physical flow integration predicted exploitation. Data consistency and cross-functional application integration, on the other hand, predicted both operational efficiency and market knowledge creation. Supply chain managers planning to deploy RFID systems are alerted to the criticality of these IT infrastructure issues as they brace for a likely widespread implementation of RFID in supply chains they participate in.

Firm performance impacts of digitally enabled supply chain integration capabilities

Best practice exemplars suggest that digital platforms play a critical role in managing supply chain activities and partnerships that generate performance gains for firms. However, there is limited...

Effects of supply chain management practices, integration and competition capability on performance

Purpose – The purpose of this research is to examine the causal linkages among supply chain management (SCM) practice, competition capability, the level of supply chain (SC) integration, and firm performance.

A study of supply chain integration in Thai automotive industry: a theoretical framework and measurement

PurposeThe purpose of this study is to provide a conceptual framework and a scale development process, in order to address the reliability and validity in supply chain integration and environmental uncertainty constructs; in an effort to develop and revalidate scale metrics in different contexts.Design/methodology/approachData for this study were collected for a small pre‐test survey in the Thai automotive industry. The measurement scales were pre‐assessed using the Q‐sort method. In addition, a preliminary test for predictive validity was evaluated using correlation analysis.FindingsThis study established an explanatory model and a corresponding instrument to conduct future research in supply chain integration. Dimensions/constructs, including supply chain integration, environmental uncertainty, and firm competitive capability are operationally defined in terms of their scale development process.Practical implicationsThis study will provide a measurement scale for supply chain integration and uncertainty constructs. This will allow researchers to be confident and bring new insights when exploring supply chain integration under differing operational conditions.Originality/valueThe findings address additional steps required towards improved methodological aspects in terms of how to prevalidate and develop a measurement scale in various constructs within alternative domains.

Firm Performance Impacts of Digitally Enabled Supply Chain Integration Capabilities

Best practice exemplars suggest that digital platforms play a critical role in managing supply chain activities and partnerships that generate performance gains for firms. However, there is limited academic investigation on how and why information technology can create performance gains for firms in a supply chain management (SCM) context. Grant's (1996) theoretical notion of higher-order capabilities and a hierarchy of capabilities has been used in recent information systems research by Barua et al. (2004), Sambamurthy et al. (2003), and Mithas et al. (2004) to reframe the conversation from the direct performance impacts of IT resources and investments to how and why IT shapes higher-order process capabilities that create performance gains for firms. We draw on the emerging IT-enabled organizational capabilities perspective to suggest that firms that develop IT infrastructure integration for SCM and leverage it to create a higher-order supply chain integration capability generate significant and sustainable performance gains. A research model is developed to investigate the hierarchy of IT-related capabilities and their impact on firm performance. Data were collected from 110 supply chain and logistics managers in manufacturing and retail organizations. Our results suggest that integrated IT infrastructures enable firms to develop the higher-order capability of supply chain process integration. This capability enables firms to unbundle information flows from physical flows, and to share information with their supply chain partners to create information-based approaches for superior demand planning, for the staging and movement of physical products, and for streamlining voluminous and complex financial work processes. Furthermore, IT-enabled supply chain integration capability results in significant and sustained firm performance gains, especially in operational excellence and revenue growth. Managerial initiatives should be directed at developing an integrated IT infrastructure and leveraging it to create process capabilities for the integration of resource flows between a firm and its supply chain partners.