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Publication date: 17 July 2015

Adam S. Maiga

The purpose of this study is to assess (a) the relationship between internal and external IS integration and their respective impacts on internal and external cost management…

Abstract

Purpose

The purpose of this study is to assess (a) the relationship between internal and external IS integration and their respective impacts on internal and external cost management strategies, (b) the relationship between internal and external cost management strategies, and (c) the effects of internal and external cost management strategies on profitability, controlling for firm size. Furthermore, this study investigates whether internal and external IS integrations produce direct significant effects on firm profitability or whether these relationships are established through cost management strategies.

Methodology/approach

The study uses survey data from a cross-section of 241 U.S. manufacturing firms. Data were analyzed using structural equation modeling.

Findings and implications

The results indicate that neither internal IS integration nor external IS integration has a direct significant impact on firm profitability. Rather, internal cost management strategy fully mediates the relationship between internal IS integration and profitability; similarly, the relationship between external IS integration and profitability is fully mediated through external cost management strategy. The results provide evidence that firms seeking profitability solely by investing in IS integration may not necessarily realize enhanced profitability; the firms must focus their attention on intervening processes, such as business strategy, in order to determine the profitability derived from IS integration.

Originality

As far as it can be ascertained, this study is the first to explore the impact of internal and external IS integration on firm profitability within the context of internal and external cost management strategies.

Article
Publication date: 22 December 2020

Timothy Amoako, Zhang Huai Sheng, Courage Simon Kofi Dogbe and Wisdom Wise Kwabla Pomegbe

The paper investigates the mediation role of external integration in the relationship between internal integration and small and medium enterprises (SMEs) performance. Information…

Abstract

Purpose

The paper investigates the mediation role of external integration in the relationship between internal integration and small and medium enterprises (SMEs) performance. Information and communication technology (ICT) was used to moderate the relationship between internal and external, and external integration and SMEs performance.

Design/methodology/approach

Cross sectional method was used to distribute questionnaires to owners of SMEs in Abossey Okai business enclave to assess the various dimensions in the study. Structural equation modeling was employed to assess the relationship among the dimensions, based on 163 validated questionnaires. Analysis of Moment Structures (Amos) and Statistical Package for Social Sciences (SPSS) were used in analyzing the data.

Findings

The results indicate that, external integration mediated the relationship between internal integration and SMEs performance. In addition, ICT had positive moderating effect in the relationship between internal and external integration, and external integration and SMEs performance.

Practical implications

Practically, this research informs owners and managers of SMEs to appreciate the importance of developing internal structures of a firm and further linking their operations with external partners. Additionally, findings will aid managers’ and owners’ leverage on ICT capabilities to enhance performance in their operations.

Originality/value

Engaging external integration to mediate the relationship between internal integration and SMEs performance and extending the relationship to include moderating role of ICT in both relationship that is internal and external integration on one side, and external and firm performance, the current study contributes to supply chain integration (SCI) and ICT available literature.

Details

International Journal of Productivity and Performance Management, vol. 71 no. 2
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 25 March 2020

Su-Ming Wu and Xiu-Hao Ding

Information technology plays a critical role in the open innovation process. The purpose of this study is to explore the inner mechanism of external information technology (IT…

Abstract

Purpose

Information technology plays a critical role in the open innovation process. The purpose of this study is to explore the inner mechanism of external information technology (IT) capability that affects open innovation performance.

Design/methodology/approach

In this paper, responses to 232 questionnaires from different firms were collected in China. Then, the proposed hypotheses were tested using regression analysis by statistical product and service solutions (SPSS).

Findings

The results indicate that external knowledge integration plays a mediating role in the relationship between external IT capability and open innovation performance, openness breadth positively moderates the influence of external IT capability on external knowledge integration and openness depth negatively moderates the relationship between external IT capability and external knowledge integration.

Practical implications

The results, which are based on Chinese responses, provide useful suggestions for firms in China. To use external IT capability to improve open innovation performance, firms should not only stress the role of external knowledge integration but also consider their search strategy.

Originality/value

Both researchers and practitioners are interested in the relationship between information technology and open innovation. However, the way in which the inner mechanism of external IT capability affects open innovation performance has not been thoroughly researched. Based on knowledge integration theory, the authors construct a model that includes external IT capability, external knowledge integration, search strategy and open innovation performance. The results of this paper confirm the mediating and moderating roles of external knowledge integration and search strategy, respectively.

Details

Business Process Management Journal, vol. 26 no. 7
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 15 June 2018

Macarena Sacristán-Díaz, Pedro Garrido-Vega and José Moyano-Fuentes

The purpose of this paper is to analyse the relationships between the different dimensions of supply chain integration (SCI). First, the sequence in which these dimensions should…

Abstract

Purpose

The purpose of this paper is to analyse the relationships between the different dimensions of supply chain integration (SCI). First, the sequence in which these dimensions should be implemented and some possible mediating effects are investigated. Then, relationships are examined more closely to observe whether they present more complex non-linear forms than those usually analysed.

Design/methodology/approach

Required information was gathered from a sample of 477 Spanish industrial companies (23.4 per cent response rate). PLS structural equation modelling was applied to capture non-linear relationships between SCI dimensions.

Findings

The results indicate that internal integration leads to external integration and that within external integration, information flow integration provides the basis for financial flow integration and physical flow integration. Thus, the results suggest the existence of a logical sequence to achieve SCI. In addition, clearly different non-linear relationships are observed between the analysed variables.

Practical implications

It seems that a sufficient minimum value has to be reached for internal integration to have a positive effect on external information and financial integration. In addition, a higher degree of information integration appears to facilitate financial and physical integration, although a medium degree of information integration results in a lower degree of financial integration. Therefore, managers should not expect that efforts made to increase one integration dimension will always produce the same effect on the other dimensions.

Originality/value

An empirical contribution is made to knowledge of the logical SCI sequence. This contribution is not only important for academia, but also for managers seeking to improve supply chain performance through integration.

Article
Publication date: 11 January 2016

Ying Kei Tse, Minhao Zhang, Pervaiz Akhtar and Jill MacBryde

– This paper aims to identify the antecedents of firm’s supply chain agility (SC agility) and how SC agility impacts on firm’s performance.

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Abstract

Purpose

This paper aims to identify the antecedents of firm’s supply chain agility (SC agility) and how SC agility impacts on firm’s performance.

Design/methodology/approach

Based on a comprehensive literature review, a conceptual model was proposed, in which the interrelated hypotheses were tested by structural equation modelling methodology using a dataset collected from 266 Chinese electronics firms.

Findings

Initially, it was found that SC integration and external learning positively influenced SC agility. Second, the results indicated that firm’s performance is positively impacted by SC agility. Moreover, SC agility also fully mediated the effect of SC integration on firm’s performance and the effect of external learning on firm’s performance.

Research limitations/implications

The generalizability of this research sample might be the major limitation of this study. Therefore, future research can adopt other industry sectors samples, such as automobile manufacturing, or other country samples to validate the research model.

Practical implications

This research outlines strategies for better preparedness to achieve SCs to be agile which is a core competency of electronic firms in emerging market. Findings reveal that the external coordination practices – external learning and SC integration – are important factors of SC agility. In addition, the findings contribute to understanding the important role of SC agility in improving firm’s performance.

Originality/value

This research examines the impact of two antecedents (i.e. SC integration and external learning) on SC agility and is the first empirical research to analyze the mediation effect of SC agility on the relationship between SC integration and firm performance and the relationship between external learning and firm performance.

Details

Supply Chain Management: An International Journal, vol. 21 no. 1
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 1 January 2005

Cristina Gimenez and Eva Ventura

This paper examines the logistics‐production and logistics‐marketing interfaces and their relation with the external integration. The study also investigates the causal impact of…

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Abstract

Purpose

This paper examines the logistics‐production and logistics‐marketing interfaces and their relation with the external integration. The study also investigates the causal impact of these internal and external relationships on the company's logistical performance.

Design/methodology/approach

An empirical study was conducted in the Spanish FMCG sector and the theoretical model was subjected to analysis using SEM.

Findings

The generic results derived from this study are: Internal and external integration influence each other. Integration in the logistics‐marketing interface does not lead to reductions in costs, stock‐outs and lead‐times, while the integration achieved in the logistics‐production interface does improve these performance measures, if there is no external integration. The external collaboration among supply chain members does always contribute to improving firms’ logistical performance.

Research/limitations/implications

The study has some limitations: other important members of the grocery supply chain (such as retailers, TPL, etc.) have not been considered and the effect of inter‐firm co‐ordination has only been analyzed from the perspective of the provider (as most studies do). Further research on the logistics‐marketing impact on performance should be carried out and other important supply chain members should be considered.

Practical implications

The study contributes to the existing literature by showing that the impact on performance of internal integration depends on the functional areas that are being integrated and the level of external integration.

Originality/value

It is believed that this paper will be insightful to researchers and managers in the SCM field. For researchers, this paper has provided new lines of research. And, for managers, this paper has shown that there is a positive relationship between firms’ logistical performance and SCM.

Details

International Journal of Operations & Production Management, vol. 25 no. 1
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 8 August 2016

Yang Cheng, Atanu Chaudhuri and Sami Farooq

The purpose of this paper is to investigate the relationships at the level of plant in a manufacturing network, labelled as networked plant in the paper, between inter-plant…

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Abstract

Purpose

The purpose of this paper is to investigate the relationships at the level of plant in a manufacturing network, labelled as networked plant in the paper, between inter-plant coordination and operational performance, supply chain integration (SCI) and operational performance and inter-plant coordination and SCI.

Design/methodology/approach

This paper is developed based on the data obtained from the sixth version of International Manufacturing Strategy Survey (IMSS VI). Specifically, this paper uses a subset of the IMSS VI data set from the 606 plants that identified themselves as one of the plants in a manufacturing network.

Findings

This paper finds that external integration is significantly related to operational performance of networked plant, whereas internal integration is not. As an enabler for external integration, the influence of internal integration on operational performance of networked plant is mediated by external integration. This paper also provides evidence to the purported positive impact of internal integration on inter-plant coordination, as well as the positive impact of inter-plant coordination on external integration. It further suggests that inter-plant coordination can influence operational performance of networked plant through external integration and also mediate the relationship from internal integration to performance through external integration.

Originality/value

This paper contributes to the SCI literature and extends the understanding of the impact of SCI on the operational performance by selecting networked plant as a unit of analysis. Besides, this paper distinguishes inter-plant coordination from SCI and investigates the relationship between inter-plant coordination, SCI, and operational performance for the first time.

Details

Supply Chain Management: An International Journal, vol. 21 no. 5
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 8 August 2016

Chiung-Lin Liu and Pei-Yu Lai

Outsourcing by corporations is increasing the demand for complex services (such as customization) from third-party logistics providers (3PLs). Effective integration between 3PLs…

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Abstract

Purpose

Outsourcing by corporations is increasing the demand for complex services (such as customization) from third-party logistics providers (3PLs). Effective integration between 3PLs and their customers, known as the external integration of 3PLs, not only allows 3PLs to respond rapidly to shippers’ needs but also to increase customer satisfaction and the effective allocation of resources while increasing operational efficiency (such as by proposing comprehensive plans for future logistics services to meet shippers’ demands). The purpose of this paper is to investigate the causal relationships among the external integration capabilities, cost advantages, and the financial performance of 3PLs.

Design/methodology/approach

A survey of 3PLs in Taiwan and China was performed. The research model was tested using a structural equation modeling technique along with the partial least square (PLS-SEM/PLS) approach.

Findings

The results herein demonstrated a positive relationship between 3PLs’ external integration capabilities and resource efficiency. The results also suggested that cost competitiveness positively affected the financial performance of 3PLs. Although the external integration capabilities of 3PLs were not found to directly affect their financial performance, the results in this study indicated that external integration capabilities enable a firm to improve financial performance by capturing cost advantages.

Originality/value

This study provides useful information about the effects of external integration capabilities on the financial performance of 3PLs in a bi-regional context. The sample in this study was drawn from the 3PL industry in Taiwan and China, enabling a comparative analysis of these two countries of similar cultural backgrounds but different degrees of development of their logistics industry and different related demands.

Details

The International Journal of Logistics Management, vol. 27 no. 2
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 22 July 2020

Huanhuan Chen, Yanhong Yao, Ao Zan and Elias G. Carayannis

Building on the resource- and knowledge-based views, this paper aims to explore how coopetition affects radical innovation and the roles of knowledge structure and external

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Abstract

Purpose

Building on the resource- and knowledge-based views, this paper aims to explore how coopetition affects radical innovation and the roles of knowledge structure and external knowledge integration in the relationship between coopetition and radical innovation.

Design/methodology/approach

This study proposes a research model to examine the mediating role of external knowledge integration on the coopetition-radical innovation link, where the mediation is moderated by the firm’s knowledge structure (including component knowledge and architectural knowledge). The authors use regression and bootstrapping to test the proposed model with survey data from 241 Chinese technology firms.

Findings

This study finds that coopetition positively affects radical innovation and the effect is fully mediated by external knowledge integration. Additionally, component knowledge negatively moderates the coopetition-external knowledge integration link and architectural knowledge positively moderates this relationship. Further, the mediating effect of external knowledge integration is also moderated by component knowledge and architectural knowledge.

Practical implications

Firms should engage in coopetition to promote radical innovation. Further, it is necessary for firms to appropriately manage coopetition according to their internal knowledge structure.

Originality/value

This study explains why scholars have different ideas about the relationship between coopetition and radical innovation by exploring the mediating role of external knowledge integration and the moderating effect of knowledge structure. Firms possess increased possibilities for knowledge leakage and partner opportunism with high levels of component knowledge, which will reduce the positive effect coopetition on external knowledge integration; thus, they are less likely to realize radical innovation. Instead, firms possess increased opportunities for resource sharing with high levels of architectural knowledge, thus improving the positive effect coopetition on external knowledge integration and they are more likely to achieve radical innovation.

Details

Journal of Business & Industrial Marketing, vol. 36 no. 11
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 23 August 2013

Taiwen Feng, Tongzheng Li, Linyan Sun and Dan Wang

The purpose of this paper is to propose a business model related to NPD for improving performance by testing the relationship between external involvement and operational…

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Abstract

Purpose

The purpose of this paper is to propose a business model related to NPD for improving performance by testing the relationship between external involvement and operational performance, as well as the mediating role of internal integration.

Design/methodology/approach

To test the research hypotheses about the relationships above, survey data were collected from 176 Chinese manufacturing companies. Structural equation modeling was used to examine the hypotheses.

Findings

The results indicate that both customer and supplier involvement have significant effects on internal integration. Internal integration has a significant effect on operational performance. In addition, internal integration partially mediates the relationship between customer and supplier involvement and operational performance.

Research limitations/implications

First, the relative effectiveness of external involvement may be contingent on various factors (e.g. involvement timing and innovation strategy). Second, the authors did not identify the different effects of external involvement practices on different dimensions of operational performance. Finally, the hypothesized relationships may be different across different firm sizes, ownership types, industries or regions.

Practical implications

Customer and supplier involvement are both important for improving organizational performance, which provides guidelines for managers to innovate business model in the product development process. Moreover, this study suggests that firms will not be able to capitalize on the capability of their customers or suppliers unless they are able to build high level of internal integration.

Originality/value

This study provides support for both organizational learning theory and information processing theory. This study also contributes to external involvement literature by examining both the direct and indirect effects of external involvement on operational performance.

Details

Chinese Management Studies, vol. 7 no. 3
Type: Research Article
ISSN: 1750-614X

Keywords

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