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Supply chain management and organizational performance: the resonant influence

Binh An Thi Duong (Graduate School of Culture and Information Science, Doshisha University, Kyoto, Japan)
Huy Quang Truong (Graduate School of Economics, Kyoto University, Kyoto, Japan)
Maria Sameiro (Department of Production and Systems, Universidade do Minho, Braga, Portugal)
Paulo Sampaio (Department of Production and Systems, School of Engineering, University of Minho, Braga, Portugal)
Ana Cristina Fernandes (Department of Production and Systems, Universidade do Minho, Braga, Portugal)
Estela Vilhena (School of Technology, Polytechnic Institute of Cávado and Ave, Barcelos, Portugal)
Loan Thi Cam Bui (Faculty of Garment Technology and Fashion Design, Industrial University of Ho Chi Minh City, Ho Chi Minh City, Vietnam)
Hiroshi Yadohisa (Department of Culture and Information Science, Doshisha University, Kyoto, Japan)

International Journal of Quality & Reliability Management

ISSN: 0265-671X

Article publication date: 5 August 2019

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Abstract

Purpose

A single supply chain management (SCM) practice will have a certain impact on organizational performance (OP). However, since it is placed in a system that many other practices are conducted simultaneously, the practice itself will interact with other ones (i.e. affect/be affected). As a consequence, the efficiency of the affected practice is increased and it is expected to maximize the impact of SCM practices on OP. This mechanism is named the “resonant” influence that is a new approach in the SCM literature. The purpose of this paper is to test the above mechanism toward an insight into the relationship between SCM and OP.

Design/methodology/approach

Two models were compared: the competitive models only exist in direct effects; and the other contains relationships between practices that are able to show the mechanism of the resonant influence, i.e. the hypothetical model. A data set gained from Vietnamese garment enterprises was used to validate the mechanism of the resonant influence.

Findings

Empirical evidence from Vietnamese garment sector showed that the competitive models could explain 42.8, 26.3 and 34 percent variance of operational performance, customer satisfaction and financial performance, respectively. In the meantime, the hypothetical model containing the resonant influence is capable to explain 69.5, 33.1 and 57.3 percent. For the impact of each SCM practice on OP, all relationships in the hypothetical model are also greater than those in competitive ones. These results supported the mechanism of the resonant influence.

Research limitations/implications

This research provides an insight into the relationship between SCM practices and OP. By the resonant influence, the effectiveness of each affected SCM practice itself is magnified and OP is also increased remarkably.

Practical implications

Understanding the resonant influence, companies can apply this mechanism to enhance effectiveness of SCM practices at the lowest cost. To this end, the SCM practices should be implemented simultaneously as an integrated system rather than independent ones and the structural model proposed in this study is able to be used as “a guide map” for applying this mechanism.

Originality/value

This is one of pioneer empirical studies in the SCM literature that proposed and validated the concept of “resonant influence.”

Keywords

Acknowledgements

This work was financed with FEDER funds by Programa Operacional Factores de Competitividade (COMPETE), national funds by Fundação para a Ciência e Tecnologia (FCT) through Project: FCOMP-01-0124-FEDER-022674 and the JSPS KAKENHI Grant No. JP18J11566. The authors respectfully thank the editor and reviewers for their constructive and augmentable comments which enabled the authors to improve the earlier version of this paper.

Citation

Duong, B.A.T., Truong, H.Q., Sameiro, M., Sampaio, P., Fernandes, A.C., Vilhena, E., Bui, L.T.C. and Yadohisa, H. (2019), "Supply chain management and organizational performance: the resonant influence", International Journal of Quality & Reliability Management, Vol. 36 No. 7, pp. 1053-1077. https://doi.org/10.1108/IJQRM-11-2017-0245

Publisher

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Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited