The study of cooperative relationships and mass customization

Abstract

Purpose

This paper aims to examine the interrelationships among cooperative relationships (CRs), mass customization (MC), and organizational performance using structural equation modeling (SEM) methodology.

Design/methodology/approach

The research framework investigates the mediating roles of MC in enhancing organizational performance. The CRs are the drivers in the model. CRs can be measured using two sub‐constructs – customer integration (CI) and supplier integration (SI). The surveyed data are collected from 220 manufacturing firms. The SEM methodology is used to develop valid and reliable instruments to measure these constructs and test the hypothesized relationships described in the framework.

Findings

The results reveal that firms with high levels of CI were more successful at MC compared to those with low levels of integration. Firms that involve customers in the creation of goods and services might have the ability to understand and respond to customer needs quickly, thereby enabling them to reduce the inherent risks of innovation. As a result, they are more likely to include only those product functions that add value to end‐users, thereby enabling them to reduce product costs.

Research limitations/implications

This study does not find a direct link between SI and MC. SI may be moderated by buyers and suppliers core competences and type of business in which they compete. Therefore, a future study examining a moderating relationship between the two might be fruitful. Researchers may be required to include not only the type of business of sample firms, but also the position they occupy in the supply chain.

Practical implications

The firms with higher level of CI would have an ability to understand customer preferences, thereby, enabling them to process customized products at low cost (MC).

Originality/value

The paper measures and validates the measurement for CRs which can be applied to research in supply chain management area.

Citation

Jitpaiboon, T., Dangols, R. and Walters, J. (2009), "The study of cooperative relationships and mass customization", Management Research News, Vol. 32 No. 9, pp. 804-815. https://doi.org/10.1108/01409170910980326