Supply Chain Integration Strategy Research Articles

Supply chain integration, competitive strategies and firm performance

Purpose This study aims to examine the interaction between different types of supply chain integration (SCI) and competitive strategies on firm performance. Design/methodology/approach The research method is quantitative. The study develops a structured model and a set of hypotheses based on the related theories. Empirical data is collected in a cross-sectional manner using an online survey to test the model and its hypotheses. The survey comprised standard scales to measure study variables. The scales had high reliability and validity and were commonly used in the literature. The study was conducted on Iranian firms working in steel and auto parts industries. Based on official reports, a total of 305 active companies were found in these two industries. Due to the small population size, all companies in the two industries were contacted for participation. Overall, 84 firms completed the survey. To test the research hypotheses, the authors used hierarchical regression analyses using SPSS 27 software. Findings Results showed that internal integration improves financial performance when firms follow a cost leadership strategy. Differentiation strategy and process integration interact positively and improve operational performance. Type of industry had no significant effect. The results add to the SCI literature by showing that a match between competitive strategy and integration type can influence both operational and financial performance. In total, firms should focus on the appropriate dimension of SCI based on their competitive strategy to improve the performance of the firm. Originality/value The impact of competitive strategy as a moderator on the SCI-performance relationship has not been widely addressed in the literature. In one study, Huo et al. (2014) investigated this relationship using data from 604 manufacturing companies in China. The results provided support for financial performance but not for operational performance. However, the influence of competitive strategies on the SCI performance may vary in different countries and contexts with dissimilar environmental, social and cultural characteristics. As several supply chain scholars have argued, understanding contextual conditions that influence the effect of best practices such as SCI on performance are critical

Sustainable automotive supply chain in the presence of disruption and government intervention

This paper aims to develop and simulate a green automotive supply chain model (ASC) consisting of one supplier, one manufacturer, and two types of products (green and non-green) under disruption risks (DRs). The greening effort (i.e., electric vehicle production) is considered for both the supplier and the manufacturer. In our modeling, we include the local government intervention (GI) and their incentivization of manufacturers to produce greener products. Moreover, the effectiveness of centralized versus decentralized supply chain integration strategies in coping with disruption consequences was explored. A mathematical pricing model based on game theory is designed to maximize the total profit for both integrated and decentralized systems. The model examines the effects of the greening effort on the supply chain (SC) members with eight disruption scenarios, including Extra Production and Surplus Inventory. Simulating numerical examples reveals that the Extra Production type of disruption increase the profitability in different scenarios. Conversely, the Surplus Inventory disruption reduces profitability. Moreover, a channel coordination through cost sharing contract in the presence of disruption sharing was developed. GI and the cost-sharing contract increase the SC profit. The managerial implications of our findings are also discussed in this paper.

How Can Vietnamese Companies Benefit from Management Accounting Systems and Supply Chain Integration Under Business Environment Uncertainty?

We develop and test a moderated mediation model to explain how management accounting systems impact supply chain integration and firm performance, and how perceived environmental uncertainty influences these relationships. Partial least squares structural equation modeling was used to analyze the survey data from 158 supply chain firms in Vietnam. Results indicate that the use of management accounting systems increases the extent of supply chain integration, which in turn enhances firm performance. Furthermore, perceived environmental uncertainty moderates the positive associations between the use of management accounting systems, supply chain integration, and firm performance. This study makes several contributions to existing literature. First, it elucidates the role of supply chain integration in promoting partner integration in the Vietnamese context. Second, it reveals the performance implications of the interaction between management accounting systems and supply chain integration. Our findings have important implications for supply chain management because they emphasize the need to develop effective management accounting systems and supply chain integration strategies in the context of environmental uncertainty.

The effects of supply chain management strategies on competitive advantage on food and beverage processing companies; a case study in the Ashanti region of Ghana

The food and beverage industry plays a unique role in expanding economic opportunities because it is universal to life and health. However, the industry’s performance was below average in Ghana and was facing intense competition from the imported food stuffs from overseas. The study adopted quantitative approach with food and beverage processing companies in the Ashanti Region of Ghana as the target population. The target population for the study was hundred selected companies in the SME’s which comprises of fifty respondents in food and fifty respondents in beverage. Structured questionnaires were used to gather primary data in the Ashanti Region of Ghana. Linear regression and correlation statistics were applied to investigate relationship between SCM Strategies and competitive advantage. The study concluded that companies’ competitive advantage is achieved through implementing supply chain agility, collaboration and integration strategies in their networks. The study recommends that the companies should develop a clearly laid down policies and procedures for handling customers’ concerns and also develop interactive websites to achieve effective information sharing and concerns that can be addressed in real time.

Collaboration and Supply Chain Integration Strategies in The Textile Industry to Anticipate the Increase in Demand Post Covid-19

This research aims to find out what business innovation strategies are being implemented by several textile entrepreneurs to achieve momentum for improving this industry while business risks can be minimized. This phenomenological research was carried out using interviews, observations and document studies at several textile companies in Central Java. The novelty in this research answers the phenomenon that occurred in the textile industry after the COVID-18 pandemic outbreak. The research results show that two strategies are most dominantly used: First, the collaboration strategy, companies collaborate with other companies to share risks and profits. Second, a supply chain integration strategy by controlling companies located upstream and downstream in the textile industry to secure production and control the market

A resource and leagile strategy in business operations for performance improvement

Apparel mills strive to perform better but need the right strategy that would allow them to remain cost-efficient and responsive at the same time to scale according to retail and market demands. Besides the right strategy, the apparel mills require the right resources and capabilities to increase their operational and export performance. A theoretical resource and leagile strategy model is developed to empirically assess the association between resources, capabilities, generic strategy, leagile strategy, and performance under present uncertainties in the apparel supply chain to understand an apparel mill’s complexities. The research data is collected through a survey in the apparel and textile industry in the export sector comprising 348 responses. SmartPLS 4.0 has been used to test relations, mediation of leagile strategy, and moderation of uncertainty. The study outcomes validate that supply chain manager, integration, customer focus, cost leadership, and leagile strategy positively impact apparel mill performance. In moderation testing, demand uncertainty moderates the relation between leagile strategy and apparel mill performance, and in mediation analysis, leagile mediates between resources and performance. The resource and leagile strategy (RLS) model is an essential measure that could assist practitioners and researchers in understanding leagile strategy for increasing firm performance.

Retracted: Evolutionary Analysis of Supply Chain Integration Strategy on Chinese Steel-Producing Firms considering Policy Risk Cost Factor.

[This retracts the article DOI: 10.1155/2022/1136601.].

The Impact of Supply Chain Integration on Operational Performance: An Empirical Study

Manufacturing companies nowadays are under constant pressure to deliver high-quality products at the lowest possible prices within the shortest possible time even under the most unpredictable economic situations. Supply chain integration has a critical impact on operational performance. Nevertheless, this impact has not been consistent and showed mixed results throughout the literature. This study aimed to examine the impact of technology management in terms of supply chain integration on operational performance. The research model was empirically validated using 317 valid survey responses from the Jordanian food and beverage industry, which were subjected to quantitative research design and regression analysis. Results showed that supply chain integration had a direct significant impact on operational performance, and all three dimensions of the theoretical model contributed significantly to operational performance. This study suggests the critical need to create and implement proper supply chain integration strategies and technologies, both internally and externally, to enhance their performance and competitive advantage. Moreover, future research needs to extend this work to other industries, cultures, and nations, while investigating the moderating or mediating effects of other key variables along with using alternative sampling strategies.

Pengaruh Penerapan Manajemen Rantai Pasok dan Sistem Erp pada Perusahaan Tesla Inc

The United States is home to Tesla Inc., a manufacturer of auto parts. For efficient operation, Tesla Inc. must implement a supply chain management plan. In this section, we will assess the use of enterprise resource planning (ERP) in supply chain management at Tesla Inc. Tesla Inc. supply chain management based on a vertical supply chain integration strategy. Likewise, Tesla Inc. uses a self-designed enterprise resource planning (ERP) system called WARP to interconnect enterprise processes

Evolutionary Analysis of Supply Chain Integration Strategy on Chinese Steel-Producing Firms considering Policy Risk Cost Factor.

Despite a number of adverse factors, China's steel industry has maintained a rapid growth trend. China continues to consume two-thirds of the world's iron ore, the majority of which is imported. In this context, Chinese steel companies have begun to consider integrating their supply chains to increase efficiency and lower costs. However, the increasingly volatile international environment makes this an extremely risky proposition. As a result, the issue of how Chinese steel producers should participate in global supply chain integration has emerged as a critical research question that requires investigation. In this paper, we examine the supply chain integration problem using a typical China–Australia steel trade as an example. Specifically, we discuss in detail whether relevant firms should continue to promote supply chain integration in the Chinese–Australian steel industry, as well as the decision boundary of influence, using evolutionary game theory and policy risk cost factors. The empirical analysis demonstrates that policy risk has a range of effects on different types of steel firms. Even when international tensions are considered, smaller steel companies may retain a greater willingness to integrate their supply chains. Overall, the above findings can provide necessary decision support for enterprises to formulate supply chain management strategies.

Integration vs Collaborative Redesign Strategies of Health Systems' Supply Chains in the Post-COVID-19 New Normal: Cross-sectional Survey Across the United States.

BackgroundGiven the widespread disruptions to supply chains in 2020 because of the COVID-19 pandemic, questions such as how health systems are shaping strategies to restore the supply chain disruptions are essential to have confidence in health systems’ supply chain model strategies. Plausibly, health systems have an opportunity for redesign, growth, and innovation by utilizing collaborative strategies now, compared to the usual strategies of integrating their existing supply chains to reduce inefficiencies.ObjectiveThis study focuses on teasing out the nuance of supply chain integration versus collaborative redesign strategies for health systems in the post-COVID-19 new normal. We focus on 2 research questions. First, we explore the impact of perceived supply chain challenges and disruptions on health systems’ supply chain integration (SC-INTEGRATION) and collaborative redesign (SC-REDESIGN) strategies. Second, we examine the outcomes of integration and collaborative redesign strategic choices on growth and service outcomes.MethodsWe used data for this study collected through a consultant from a robust group of health system chief executive officers (CEOs) across the United States from February to March 2021. Among the 625 health system CEOs contacted, 135 (21.6%) responded to our survey. We considered supply chain–relevant strategy and outcome variables from the literature and ratified them via expert consensus. We collected secondary data from the Agency for Healthcare Research and Quality (AHRQ) Compendium of the US Health Systems, leading to a matched data set from the 124 health systems. Next, we used ordered logit model estimation to examine CEO preferences for partnership strategies to address current supply disruptions and the outcomes of strategy choices.ResultsHealth systems with higher disruptions would choose integration (positive, P<.001) over redesign, indicating that they still trust the existing partners. Integration strategy is perceived to result in better service outcomes (P<.01), while collaborations are perceived to lead to greater growth opportunities (P<.05); however, the role of integration in growth is not entirely ruled out (combined model, P<.001). Plausibly, some health systems would choose integration and collaborative redesign models, which have a significant relationship with both services (combined model, P<.01) and growth, establishing the importance of mixed strategies for health systems.ConclusionsThe cost of health care continues to rise, and supply-related costs constitute a large portion of a hospital’s expenditure. Understanding supply chain strategic choices are essential for a health system’s success. Although collaboration is an option, focusing on and improving existing integration dynamics is helpful to foster both growth and services for health systems.

The Relationship Between Supply Chain Integration and Firm Performance: Focusing on the Mediating Effect of Customer Value

Purpose - This research is to verify the relationship between supply chain integration, customer value, and firm performance; that is, which supply chain integration structure creates a clear customer value pursued by a company and secures a competitive advantage by improving firm performance. Design/Methodology/Approach - The measurement items were constructed based on previous studies, and confirmatory factor analysis was performed using AMOS 18 to evaluate the reliability, validity, and the fit of the measurement model. Findings - First, among the factors of supply chain integration, supplier integration was found to have a significant positive (+) effect on firm performance, but internal integration and customer integration had no significant effect. Second, it was found that the supply chain integration factors, such as internal integration, supplier integration, and customer integration, all had significant positive (+) effects on customer value creation. Third, it was found that customer value plays a mediating role in the relationship between internal integration, customer integration, and firm performance, respectively. Research Implications - In order to realize the customer value that companies are targeting, it will be necessary to first establish supply chain integration strategy suitable for the company. In order for a company to achieve long-term performance and competitive advantage, a company must clearly promise the value it will provide to customers before pursuing supply chain integration. For this, it will be necessary to establish a suitable customer value management strategy.

Impact of green supply chain management on competitive advantage and firm performance in Vietnam

The objective of the article is to evaluate the influence of green supply chain management on firm performance through a mediate variable which is competitive advantage and moderate variable which is supply chain integration. Research was conducted on 313 Vietnamese enterprises and the data analyzed by Smart PLS software shows that green supply chain management has a positive impact on firm performance. At the same time, competitive advantage and supply chain integration both have a statistically significant mediating and moderating role. The research results are meaningful for managers to come up with green supply chain integration policies and strategies to improve competitive advantage and firm performance.

The Effects of Different Supply Chain Integration Strategies on Disruption Recovery: A System Dynamics Study on the Cheese Industry

Long and complex supply chains are vulnerable to disruptions. One way to solve this problem is to successfully manage supply chain integration (SCI). A system dynamics simulation is thus applied to study a cheese supply chain with three individual firms: a producer, a logistics service provider (LSP), and a retailer. Our purpose is to study the effects of SCI strategies with different dimensional focuses, i.e., information integration (Scenario 1), relational integration (Scenario 2), and operational integration (Scenario 3), on the recovery of three types of disruptions, i.e., a producer capacity disruption, an LSP capacity disruption, and a demand disruption. Tests of parameter scenarios are further applied to provide solutions for supply chains using different strategies. Our results indicate that Scenario 3 is the best practice, regardless of any type of disruption, while Scenario 1 usually achieves the worst performance. This is consistent with an evolutionary perspective of supply chain integration: information integration gives firms a competitive advantage as the first step. Working as partners to share the most appropriate information leads to greater benefits. We extend this perspective by showing that further elimination of information delay helps the supply chain achieve the best performance.

The Roles of Cloud-Based Supply Chain Integration on Firm Performances and Competitiveness

Cloud computing systems have emerged as a useful technology that contributes to this optimization SCI process by providing infrastructure, platform, and software solutions for the whole supply chain via the internet. But in developing regions like Ethiopia, there's a weak traditional, fragmental, non-integrated, weak, and underdeveloped supply chain process. There’s still space for research on real industrial applications where Ethiopian firms strive for cloud-based integration and implement new models and integration strategies practices in their supply chains. Thus, this study is designed to investigate the impacts of cloud computing technology on the supply chain integration process to improve the performance and comparative advantage of manufacturing industries in general, and the Ethiopian basic metal industry in particular. Using primary and literature survey data, the study has been carried-out through SPSS correlation and regression analysis methods. The study shows that the adoption and utilization of cloud-based services in supply chain integration leads to improvements in both the performance and competitiveness of the firm at regional and global levels. In particular, the cloud-based supply chain integration strategies provide enhanced resource utilization, reduce the constraints on information flow in the firm, increase product and service visibility, and create flexibility within systems within supply chain partners, and manufacturing industries as a whole. According to these investigations, cloud computing has a great impact on supply chain integrations so as to improve the performance and comparative advantage of the firm. Thus, effective and efficient utilization of cloud-based supply chain integrations has a higher positive impact on firm performance and competitiveness. Furthermore, this study demonstrates that data privacy, information risk, security issues, cloud architecture, process customization, and trust among collaborators must be prioritized for long-term supply chain systems and joint ventures in cloud-based supply chain integration.

Integration Strategy of Marketing and Supply Chain PT Semen Indonesia (Persero) Tbk. Holding Company

AbstractThis research focuses on exploring the marketing and supply chain integration strategy at PT Semen Indonesia (Persero) Tbk. Holding Company. The status of the state-owned enterprise (SOE) cement industry has dominated the cement market share in Indonesia after the holding strategy, but the data shows that the market share of Semen Indonesia sales has continued to decline. Another problem is that the accumulated cost of revenue has increased sharply, especially since the income growth is not significant, so that gross income has decreased. This research presents integration activities that occur at the corporate and functional level in the marketing and supply chain directorates. The case study method is used in this research to track the integration of marketing and supply chains as an effort to improve the company's sales performance. Data was collected through in-depth interviews in the Marketing Research &amp; Analysis section of PT Semen Indonesia (Persero) Tbk and secondary data in the form of company annual reports. The results of this study indicate that PT Semen Indonesia (Persero) Tbk integrates marketing and its supply chain through a strategy of unifying the two functions in one directorate. The marketing and supply chain functions at each Operating holding have been revoked, all of them directly managed by the Holding Company. The supply chain is centrally integrated in the form of transportation, distribution and procurement functions. In the marketing aspect, the Holding Company integrates the marketing planning and marketing control and marketing functions as well as the sales function.&#x0D; Keywords: Strategy; Integration; Marketing; Supply Chain; Holding Company

A Study on the Effect of Supply Chain Integration on Logistic Flexibility and Supply Chain Risk Management Performance of Chinese Automobile Industry

중국에서 경제 및 규모의 발전과 함께 급속도로 성장하고 있는 자동차 산업은 그 중요도가 점차 높아지고 있으며, 다양한 부품 과 최신 기술을 함께 필요로 한다는 점에서 공급체인통합과 물류 관리에 있어서의 유연성 그리고 위험관리가 필수적인 분야로 인 식되고 있다. 본 연구에서는 공급체인통합 요인들을 살펴보고 이러한 요인들이 물류 유연성과 위험관리 성과에 미치는 영향관계 를 파악하였다. 본 연구의 실증분석 대상은 중국 내 6대 자동차 클러스터에 위치한 중국 현지 자동차 기업들을 대상으로 2019년 8월부터 2019년 12월까지 해당 지역들에서 추출된 207부를 대상으로 실증 분석을 하였다. 그 결과, 조직내부통합 요인은 외부통합 요인인 공급자 통합과 고객통합에 양(+)의 영향을 주는 것으로 나타났으며, 공급자통합요인과 고객통합요인은 물류 유연성에 긍정 적인 영향력을 행사하는 것으로 나타났다. 또한, 물류 유연성과 공급체인위험관리성과는 유의한 양(+)의 관계에 있었다. 이를 통하 여, 공급체인통합전략은 조직내부통합이 우선적으로 이루어져야 하며, 외부 통합의 수준을 높이는 것이 물류 유연성의 향상을 가 져오며, 높은 물류 유연성이 공급체인위험관리성과를 향상시킬 수 있다는 시사점을 도출하였다.In China, the rapidly growing automotive industry with the development of economy and scale is becoming increasingly important, and it requires flexibility and risk management in supply chain integration and logistics management in that it requires various parts and the latest technology together. In this study, we examine the factors of supply chain integration and examine the relationship between these factors on logistics flexibility and risk management performance. We conducted an empirical analysis of 207 samples from 6 chinese automobile clusters from August to December in 2019. As a result, it was found that internal integration factor has a positive effect on external integration factors, both supplier integration and customer integration, and supplier integration factor and customer integration factor exert a positive influence on logistics flexibility. In addition, there was a significant positive relationship between logistics flexibility and supply chain risk management performance. Through this, the supply chain integration strategy should first be done inside the organization, and raising the level of external integration brings about the improvement of logistics flexibility, and draws the implication that high logistics flexibility can improve the supply chain risk management performance.

Integrating dual-channel closed-loop supply chains: Forward, reverse or neither?

This paper investigates the optimal supply chain integration strategy for the manufacturer in a stylised dual-channel closed-loop supply chain (CLSC) consisting of one manufacturer, one retailer, and one recycler. As the leader, the manufacturer intends to improve the efficiency and competitiveness of its supply chain by integrating one of the other entities. Specifically, the manufacturer can choose one of three strategies: forwardly integrating the retailer, reversely integrating the recycler, or integrating neither. Among the strategies, no integration serves as a benchmark that helps to identify whether the manufacturer has incentives to integrate. We first disclose that supply chain integration in whichever direction always offers an incentive. Then, we find that reverse integration generates more industry profit than forward integration if the recycler collects used products at a high efficiency or if the manufacturer saves a great deal from remanufacturing, i.e., the reallocation effect dominates the relief effect. We also explore profit increases to evaluate supply chain integration and identify conditions in which reverse integration brings more profit increases. Our results bridge the gap between business practices and the theoretical exploration of integrating dual-channel CLSCs and extend the understanding of this problem by disclosing that forward integration does not always dominate.

Learning orientation and innovation performance: the mediating role of operations strategy and supply chain integration

PurposeThe purpose of this study is to explore the effect of operations strategy (cost, quality, flexibility and delivery) and supply chain integration on innovation performance under influence of learning orientation.Design/methodology/approachTaking a quantitative and deductive approach, a conceptual framework was developed and tested by analyzing data gathered through survey questionnaire from 243 UK manufacturing firms using structural equation modeling.FindingsThe findings show that learning orientation influences operations strategy and supply chain integration, but it does not have a direct impact on innovation performance. Additionally, quality and flexibility strategies affect innovation performance and supply chain integration positively, while cost and delivery strategies do not have a significant effect on these variables.Research limitations/implicationsOperations strategy types (cost, quality, flexibility and delivery) were studied as distinct variables, whereas supply chain integration also has several dimensions but that has not been investigated separately in the present research. The findings are also based on limited 243 responses from UK manufacturing firms.Practical implicationsInnovation performance of manufacturing firms can be improved through a more integrated supply chain if managers embody flexibility and quality capabilities in their operations and become learning oriented.Originality/valueThe effect of supply chain integration on innovation performance and learning orientation on supply chain integration and operations strategy types have not been fully explored in literature. Also, having all four operations strategy types in a direct relation to supply chain integration and innovation performance is another original aspect of the current study.

Supply chain integration strategies and circularity in the European steel industry

As the environmental mindset became increasingly present in the steel industry, so did the concerns with the developments of its market. In an attempt to address both sides of this challenge, this article aimed at identifying how the implementation of different Supply Chain Integration strategies oriented towards raw material self-sufficiency and resource ownership retention could affect circularity. The European steel industry was used as case study and the effects of closing material loops via Supply Chain Integration were tested by running simulations on an integrated Life Cycle Assessment and System Dynamics model. The results brought to light that different approaches can be environmentally and strategically promising, as well as able to drive improvements in raw material self-sufficiency and in resource ownership retention. Noteworthy were the adoption of vertical hedging strategies on the supply side, and of horizontal hedging strategies on end-of-life for either recycling, refurbishing or repair and maintenance services.