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Article
Publication date: 11 August 2021

Ayman Bahjat Abdallah, Omar Mohammad Rawadiah, Walaa Al-Byati and Salah Alhyari

The purpose of this study is to examine the effect of supply chain integration (SCI) in terms of supplier, customer and internal integration on supply chain performance…

Abstract

Purpose

The purpose of this study is to examine the effect of supply chain integration (SCI) in terms of supplier, customer and internal integration on supply chain performance (SCP) and export performance (EXP). The effect of SCP on EXP is also explored. This study further seeks to examine the mediating effect of SCP on the relationship between the types of SCI and EXP.

Design/methodology/approach

The population of this study consists of manufacturing companies in different industries in Jordan. Data were gathered using self-administered questionnaires; managers from 271 companies responded to the survey. The study constructs were assessed for validity and reliability, and it was ensured that acceptable levels of these tests were obtained. Structural equation modeling (SEM) was used to test the study hypotheses.

Findings

The findings showed that supplier and customer integration were not drivers of EXP, but internal integration positively impacted EXP. In addition, internal and customer integration positively affected SCP, while supplier integration did not. Also, SCP positively impacted EXP. Furthermore, customer integration and internal integration indirectly impacted EXP through SCP.

Practical implications

Manufacturers should establish both intra- and inter-organizational collaborations to improve their performance. Specifically, managers in developing countries need to pay substantial attention to internal integration, as it is the key antecedent of both SCP and EXP. Furthermore, managers must be aware of the essential role of customer integration in improving SCP and subsequently EXP. Therefore, they should make long-term plans to integrate and incorporate key customers. In addition, managers are advised to reconsider their current relationships with suppliers. By failing to take advantage of the valuable expected contribution of supplier integration, manufacturers may lose export opportunities to international competitors.

Originality/value

The present study addresses an evident gap in the available literature regarding the effect of SCI on EXP. It tests a comprehensive model underlining the role of SCP on the relationship between SCI types and EXP. This study is also valuable because it was conducted in a developing country. Generally, manufacturing companies in developing countries face more SC-related difficulties than those in developed countries; these challenges can limit the export abilities of manufacturers in developing countries. The study offers important implications for the managers of manufacturing companies to improve their SCP and, subsequently enhance their EXP.

Details

International Journal of Productivity and Performance Management, vol. 70 no. 7
Type: Research Article
ISSN: 1741-0401

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Article
Publication date: 29 April 2021

Ai-Hsuan Chiang and Ming-Yuan Huang

Rapid response is often the cornerstone of success in many industries, especially manufacturing. In the authors’ opinion, organizational structure will also affect the…

Abstract

Purpose

Rapid response is often the cornerstone of success in many industries, especially manufacturing. In the authors’ opinion, organizational structure will also affect the construction of a fast-response supply chain system. The main purpose of this research examines whether different levels of organizational structure have different effects on the relationship between external integration and firm performance.

Design/methodology/approach

This study applied questionnaires to collect data. This study collected 818 questionnaires from manufacturers in China, Hong Kong and Taiwan to verify our proposed model using structural equation modeling.

Findings

Results show that response speed perfectly mediates the relationship between external integration and firm performance. Different levels of organizational structure will also affect external integration. Strict organizational structure requires customer integration, while loose organizational structure requires supplier integration to quickly meet customer needs.

Practical implications

Companies can probably determine whether their organizational structure is higher or lower than that of their competitors. If firms can determine that their organization structure is high or low, they can adopt suitable external integrations to enhance quick response and operational performance.

Originality/value

In the relationship between supply chain integration and performance, we consider a mediating variable and moderating variable together. Results explain the reason that the relationship between supply chain integration and performance are inconsistent in previous studies. We have addressed external integration in alignment with organizational structure to provide better service and enhance performance by providing empirical evidence.

Details

Journal of Manufacturing Technology Management, vol. 32 no. 8
Type: Research Article
ISSN: 1741-038X

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Article
Publication date: 12 January 2021

Yubing Yu, Baofeng Huo and Zuopeng (Justin) Zhang

Based on the resource-based view and organizational capability theory, we examine the effect of information technology (IT) on company performance through supply chain…

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1326

Abstract

Purpose

Based on the resource-based view and organizational capability theory, we examine the effect of information technology (IT) on company performance through supply chain integration (SCI) from the upstream and downstream perspective of the whole supply chain.

Design/methodology/approach

Based on data collected from 296 cross-border e-commerce (CBE) companies in China, we used structural equation modeling with LISREL to test the conceptual model.

Findings

The results show that supplier and customer IT significantly promote supplier and customer system and process integration. Supplier system and process integration enhance operational performance. Meanwhile, IT indirectly affects financial performance through operational performance. Customer system integration has positive effects on operational and financial performance, with an indirect effect on financial performance through operational performance. However, customer process integration only improves financial performance.

Research limitations/implications

We only use cross-sectional data from Zhejiang province of China to investigate relationships of related constructs. Future studies can also use longitudinal data in combination with secondary data from other provinces, regions and countries.

Practical implications

The results provide important managerial insights for CBE companies to sustain their competitive advantages by improving their performances through IT and SCI practices throughout the upstream and downstream data-driven supply chain.

Originality/value

This study contributes to the IT and SCI literature by exploring the effectiveness of IT in improving SCI and company performance from the upstream and downstream perspective and the perspective of IT.

Details

Journal of Enterprise Information Management, vol. 34 no. 1
Type: Research Article
ISSN: 1741-0398

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Article
Publication date: 22 July 2020

Odkhishig Ganbold, Yoshiki Matsui and Kristian Rotaru

Using the assumptions of the resource-based view, relational view and swift, even flow theories and the overarching principles of supply chain management, the study aims…

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1179

Abstract

Purpose

Using the assumptions of the resource-based view, relational view and swift, even flow theories and the overarching principles of supply chain management, the study aims to test the role of information technology (IT) capability (cross-functional application, supply chain application and data consistency) in enabling supply chain integration (SCI; internal, customer and supplier integration) and the impact of SCI on firm's operational performance in terms of quality, delivery, production cost, inventory level, customer service and product-mix flexibility.

Design/methodology/approach

The structural equation modeling approach is used to test theoretical predictions underlying the relationship among dimensions of IT capability, SCI and operational performance based on data obtained from senior executives of 108 large manufacturing firms listed in the Tokyo Stock Exchange.

Findings

The results suggest that IT capability has positive impact on SCI, except for data consistency, which is found to have negative impact on internal integration. The results further indicate that SCI, especially customer integration, has positive and significant impact on all operational performance indicators.

Practical implications

The findings inform future initiatives associated with the SCI improvement via specific IT capabilities. When undertaking such initiatives, managers are advised to consider the differential impact of the following IT capabilities on SCI: cross-functional applications, supply chain applications, and data consistency capability.

Originality/value

The study makes an empirical contribution to the body of knowledge by demonstrating the value of the multidimensional representation and analysis of IT capability, SCI, and operational performance given a differential and even opposed influence by some of the dimensions in specific business contexts.

Details

Journal of Enterprise Information Management, vol. 34 no. 3
Type: Research Article
ISSN: 1741-0398

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Article
Publication date: 1 October 2018

Nikhat Afshan and Jaideep Motwani

Even though supply chain integration (SCI) has been considered as a vital contributor to business performance, the research shows inconsistency in its finding. Accounting…

Abstract

Purpose

Even though supply chain integration (SCI) has been considered as a vital contributor to business performance, the research shows inconsistency in its finding. Accounting for these inconsistencies, researchers (Fabbe-Costes and Jahre, 2007; Van der Vaart and van Donk, 2008) have highlighted the need to relate the level of integration in a single relationship to the performance outcomes of that relationship. The purpose of this paper is to make an effort in this direction and investigate the impact of customer integration (an important dimension of SCI) on customer-related performance outcome (CRPO) and financial performance of the firm.

Design/methodology/approach

Based on an extensive literature review, a research model has been developed hypothesizing the relationships between customer integration, CRPO and financial performance. The research model is then tested using data collected from 214 Indian manufacturing companies. Structural equation modeling was used to test the hypothesized relationship between constructs of interest.

Findings

The result showed that there is no direct effect of customer integration on financial performance instead the relationship is fully mediated through CRPO.

Originality/value

This study conceptualizes and develops scale for the specific performance outcome resulting from a high level of integration between manufacturer and key customers and labels it as CRPOs. It further investigates the mediating role of this immediate performance outcome on the relationship between customer integration and firm performance.

Details

Benchmarking: An International Journal, vol. 25 no. 7
Type: Research Article
ISSN: 1463-5771

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Article
Publication date: 30 October 2018

Elisa Martina Martinelli and Annalisa Tunisini

The purpose of this paper is to explore the topic of customer integration into supply chains. Particular attention is focused on literature concerning customer-driven and…

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1505

Abstract

Purpose

The purpose of this paper is to explore the topic of customer integration into supply chains. Particular attention is focused on literature concerning customer-driven and customer-centric supply chains. The aim is to provide a deeper understanding of these two approaches, clarify the differences, compare them and provide a conceptual model and research propositions, leading to theoretical and managerial implications.

Design/methodology/approach

The paper presents a systematic literature review conducted using a consolidated methodology. The protocol used allows for the identification, analysis, synthesis, reporting and discussion of the results stemming from the literature on customer integration into the supply chain. This analysis enables us to summarize the results in a conceptual framework and introduce new research propositions.

Findings

Using the results of the literature review, the authors first systematized the literature on customer-driven supply chain and on customer-centric supply chain in the conceptual framework. For each of the two sets of studies, the authors highlighted three main streams of research concerning customer integration into the supply chain. The authors analyzed three different topics: why customer integration is needed, how customer integration takes place and which intra-organizational issues are necessary to implement customer integration into the supply chain. Second, the authors developed a conceptual framework to confront customer-driven and customer-centric approaches to supply chain management in an evolutionary perspective. The authors thus formulated research propositions aimed at entering in greater depth the management of the shift from the customer-driven to customer-centric supply chain.

Research limitations/implications

The systematic literature analysis developed in the paper contributed to more integrated and comprehensive knowledge of customer integration into the supply chain. The paper identifies and describes the characteristics of different supply chain approaches through the organization and interpretation of academics’ contributions. The paper suggests the need for further research in at least three areas: the study of variables supporting customer-driven or customer-centric approaches, the relevant intra-organizational issues underscoring the customer-centric supply chain and the impact of digitalization on supply chain processes.

Practical implications

The paper outlines the main structural elements that compose the customer-driven and customer-centric supply chains. The results of the systematic analysis of the literature can be used to inform managers about the different levels and approaches for achieving customer integration. These diverse configurations of customer integration imply administrative and organizational considerations. Major issues to be considered when managers want to integrate the customer into the supply chain are identified. In addition, conditions underscoring different options – namely, customer-driven and customer-centric supply chains – are provided.

Originality/value

The originality of this work lies in the systematic review of literature examining customer integration into supply chains, which highlights two main levels of customer integration: customer-driven and customer-centric. The main contribution is the formulation of a conceptual framework and new research propositions from the comparison and merger of these two configurations. The information presented in this paper enhances the literature on recent developments in customer integration, thereby enabling managers to select the most suitable configuration for the supply chain structure.

Details

Journal of Business & Industrial Marketing, vol. 34 no. 1
Type: Research Article
ISSN: 0885-8624

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Article
Publication date: 3 April 2017

Heba Fawzi Ayoub, Ayman Bahjat Abdallah and Taghreed S. Suifan

The purpose of this paper is to investigate the effect of supply chain integration (SCI) in terms of supplier integration, customer integration, and internal integration

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1327

Abstract

Purpose

The purpose of this paper is to investigate the effect of supply chain integration (SCI) in terms of supplier integration, customer integration, and internal integration on knowledge management (KM) and technical innovation (TI). The study also investigates the effect of KM on TI. Furthermore, the mediating effect of KM on the relationship between SCI and TI is investigated.

Design/methodology/approach

Study model and hypotheses were developed based on literature review. The study is based on survey data collected from 217 Jordanian manufacturing companies in electrical, electronics, machinery, and mechanical appliances industries. Exploratory factor analysis and confirmatory factor analysis were applied to assess construct validity. Direct and indirect effects were tested using structural equation modeling and bootstrap re-sampling technique.

Findings

The results reveal that supplier integration and customer integration have positive effects on KM and TI, while internal integration has not. Also, KM has a positive effect on TI. In addition, KM mediates supplier integration-TI and customer integration-TI relationships, while does not mediate internal integration-TI relationship.

Originality/value

Most existing studies examined the effect of KM on SCI and supply chain management. This study argues and empirically demonstrates that SCI contributes to KM capability of manufacturing companies. Moreover, this is one of the first studies to investigate the mediating role of KM on SCI-TI relationship. The paper provides evidence that external integration is superior to internal integration in enhancing KM and TI.

Details

Benchmarking: An International Journal, vol. 24 no. 3
Type: Research Article
ISSN: 1463-5771

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Article
Publication date: 16 August 2018

Tesfaye Tolu Feyissa, R. Raghavendra Kumar Sharma and Kuei-Kuei Lai

Nowadays, supply chain integration (SCI) is considered as an enabler of competitive firm performance. It has three important dimensions: internal, supplier and customer

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1100

Abstract

Purpose

Nowadays, supply chain integration (SCI) is considered as an enabler of competitive firm performance. It has three important dimensions: internal, supplier and customer integration. Understanding the interaction between these dimensions and organisational strategy would pave the way for effective implementation of SCI. The famous Miles et al. (1978) strategy typology classifies firms into four strategy types: defenders, prospectors, analysers and reactors. The purpose of this paper is to explore the impact of the core company’s product-market innovation strategy on the dimensions of SCI, and to investigate the comparative strength of each dimension of SCI in defenders and prospectors.

Design/methodology/approach

Primary data were collected through an online survey of 112 firms in 24 countries across Africa, Asia, Europe and North America. Direct and mediated relationships were assessed by conducting structural equation modelling on the dimensions of SCI and product-market innovation strategy variables. Cluster analysis was conducted on organisational strategy variables to group the firms into different strategy types. Next, a one-way analysis of variance was applied to assess the impact of organisational strategy on each dimension of the SCI. Finally, a post hoc analysis was conducted to compare the strength of each dimension of the SCI against the different strategy types.

Findings

The results indicate that internal integration (II) mediates the positive effects of the core company’s product-market innovation strategy on supplier and customer integration. Furthermore, the results indicate that prospectors have stronger internal, supplier and customer integration as compared to defenders.

Research limitations/implications

This study had two main limitations. One limitation is the lack of consideration of possible differences in the strengths of the investigated relationships across different geographical locations and cultures. The second limitation is the inability of the cross-sectional research design to capture the dynamics in the process of adopting SCI and organisational strategy.

Practical implications

The present study highlights to executives the need for understanding the implications of specific strategies on the SC linkages and relationships that are required to implement those strategies. Thus, it could serve as a preliminary clue in decision-making for establishing integrated SC that is compatible with the organisational strategy. Furthermore, it could serve as a guidance to managers in steering their firms in the organisational adaptive cycle, by indicating that the implementation of product-market innovation strategy requires adopting strong SCI, and by highlighting the importance of adopting II prior to external integration.

Originality/value

This paper tests relationships that explain how the core company’s strategy influences each dimension of SCI.

Details

The International Journal of Logistics Management, vol. 30 no. 1
Type: Research Article
ISSN: 0957-4093

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Article
Publication date: 19 April 2011

Sakun Boon‐itt and Chee Yew Wong

The purpose of this paper is to test the moderating effects of technological and demand uncertainties on the relationship between supply chain integration and customer

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4949

Abstract

Purpose

The purpose of this paper is to test the moderating effects of technological and demand uncertainties on the relationship between supply chain integration and customer delivery performance.

Design/methodology/approach

Based on a survey questionnaire with 151 participants in the Thai automotive industry supply chain, hierarchical regressions are used to test the moderating effects.

Findings

Internal and supplier integration, but not customer integration, were positively associated with customer delivery performance. Technological and demand uncertainties were found to moderate the relationships between internal integration and customer delivery performance, and supplier integration and customer delivery performance.

Research limitations/implications

The moderating effects of technological and demand uncertainties in the Thai automotive just‐in‐time (JIT) environment are explained. This research contributes to the development of a contingency theory of supply chain integration suggesting that the impacts of supply chain integration on customer delivery performance vary under different levels of technological and demand uncertainties.

Practical implications

Managers recognize the diminishing effects of internal integration and supplier integration under demand uncertainty, and the increasing effect of supplier integration under high technological uncertainty.

Originality/value

This study contributes to the supply chain management literature by clarifying the moderating effects of technological and demand uncertainties on the relationship between supply chain integration and customer delivery performance.

Details

International Journal of Physical Distribution & Logistics Management, vol. 41 no. 3
Type: Research Article
ISSN: 0960-0035

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Article
Publication date: 7 March 2013

Li Zhao, Baofeng Huo, Linyan Sun and Xiande Zhao

The purpose of this paper is to empirically explore the relationships among supply chain risks (SCRs), supply chain integration (SCI), and company performance in a global context.

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7494

Abstract

Purpose

The purpose of this paper is to empirically explore the relationships among supply chain risks (SCRs), supply chain integration (SCI), and company performance in a global context.

Design/methodology/approach

This study is based on the High Performance Manufacturing (HPM) project database collected from 317 manufacturing plants in ten countries and three representative industries (machinery, electronics and transportation components), using structural equation modeling (SEM) methods.

Findings

Results show that SCRs, especially supply delivery risk (SDR), are negatively related to SCI. There is a contingent relationship between SCI and performance. Different types of SCI play different roles in improving different types of company performance. Supplier, internal, and customer integration are the most important drivers for schedule attainment, competitive performance, and customer satisfaction, respectively.

Originality/value

This study is one of the first empirical studies to explore how SCRs affect SCI. It also expands current SCI research by linking three dimensions of SCI with three dimensions of company performance, using the global database collected from HPM companies in ten countries.

Details

Supply Chain Management: An International Journal, vol. 18 no. 2
Type: Research Article
ISSN: 1359-8546

Keywords

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