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1 – 10 of over 76000The 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.
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Shu Wang, Jing Liu, Kihyun Park, Mingu Kang and Fei Dai
This study aims to suggest a moderated mediation model addressing how internal integration interacts with information technology (IT) link with external customers to meet customer…
Abstract
Purpose
This study aims to suggest a moderated mediation model addressing how internal integration interacts with information technology (IT) link with external customers to meet customer needs more efficiently and effectively.
Design/methodology/approach
This study tests the proposed hypotheses by using 268 data collected from manufacturing firms worldwide.
Findings
The results of this study reveal that internal integration plays a very important role in promoting customer satisfaction directly and indirectly by enhancing the ability to meet customers’ flexibility needs. In addition, the results show that IT link with customers strengthens this indirect influencing relationship.
Originality/value
By combining IT connectedness with external customers with internal capability, this study provides valuable insights into how manufacturing firms apply internal integration more effectively to enhance customer satisfaction.
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Levente Szász, Maike Scherrer and Patricia Deflorin
The purpose of this paper is to offer deeper insight into the relationship between a subsidiary’s internal integration in its manufacturing network and subsidiary-level…
Abstract
Purpose
The purpose of this paper is to offer deeper insight into the relationship between a subsidiary’s internal integration in its manufacturing network and subsidiary-level operational performance by taking into account the country context of the respective subsidiary.
Design/methodology/approach
Subsidiary-level information is gathered using the sixth round of the International Manufacturing Strategy Survey, thus including 507 subsidiaries from 22 countries. Country context is operationalised using the Global Competitiveness Report published by the World Economic Forum.
Findings
The findings reveal that internal integration has a positive influence on operational performance improvement. Country context acts as a moderator on this relationship: subsidiaries in less developed countries are only able to improve their effectiveness (quality, flexibility, delivery), while developed country subsidiaries gain both effectiveness and efficiency (cost, time) benefits from internal integration.
Research limitations/implications
The unit of analysis is the knowledge-receiving subsidiary without taking the characteristics of the sending unit or that of the whole network of subsidiaries into account. Based on the context-dependency of the integration-performance relationship found in this paper, a future research agenda is proposed including further factors (absorptive capacity, knowledge complementarity, organisational practices) that could influence this relationship.
Practical implications
Subsidiary managers in less developed countries should strive to acquire intra-network knowledge related to effectiveness, while managers in developed countries can expect both efficiency and effectiveness benefits.
Originality/value
A large-scale survey encompassing subsidiaries from both emerging and developed countries is used to offer deeper insight into the relationship between internal integration and performance. The paper provides a possible explanation for previous mixed findings on this relationship. The differentiation between efficiency and effectiveness performance shows that country context represents an important factor that moderates the integration-performance relationship.
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Ming‐Ji James Lin and Chih‐Jou Chen
The purpose of the study is to examine the influence of internal integration and external integration on three types of shared knowledge (shared knowledge of internal…
Abstract
Purpose
The purpose of the study is to examine the influence of internal integration and external integration on three types of shared knowledge (shared knowledge of internal capabilities, customers, and suppliers) and whether more leads to superior firm innovation capability and product competitive advantage.
Design/methodology/approach
The paper draws on results from a large‐scale survey. The empirical data used in the study comprises of 245 high technology firms in Taiwan. This study applies the confirmatory factor analysis to examine the reliability and validity of the measurement model, and the structural equation modeling (SEM) to investigate the hypotheses and research model.
Findings
The results show that internal integration and external integration significantly influence shared knowledge of internal capabilities, customers and suppliers among new product development (NPD) team members. The results also indicate that team members' shared knowledge enable the firm to improve innovation capability and new product competitive advantage.
Research limitations/implications
As the data used in the study was cross‐sectional, the causal relationships and the sustainability of firm and product innovative performance cannot be easily captured. Future research can examine how factors of individual traits, organizational characteristics, and external environmental factors may influence the shared knowledge and product competitive advantage.
Practical implications
This study emphasizes the importance of the firm's integration to utilize and share knowledge of internal capabilities, customers and suppliers effectively. Besides, the relationships among internal/external integration, shared knowledge, firm innovation capability and product competitive advantage may provide a clue regarding how firms can manage integrations and promote knowledge‐sharing culture to sustain their firm innovation capability and product competitive advantage.
Originality/value
As only little empirical research has been conducted on the impact of internal/external integration on the firm's innovative capability and product competitive advantage through shared knowledge, the empirical evidence reported here makes a valuable contribution in this highly important area.
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This research empirically analyzes gaps in performance among development stages of integration in supply chain management (SCM). The used variables are integration such as internal…
Abstract
This research empirically analyzes gaps in performance among development stages of integration in supply chain management (SCM). The used variables are integration such as internal and external and performance such as cost and service. The population is international freight forwarders in the Republic of Korea and the sample frame is the membership list of the Korean International Freight Forwarders Association. The used methodology in this research is various: Cronbach’s alpha, factor analysis, cluster analysis, analysis of variance and post hoc analysis. It is important to ascertain the position in which they are included and the position is concerned with internal integration and external integration because the aim of this research is to ascertain where the forwarders are in development stages of integration. According to prior research, development stages of integration are regarded as the flow from internal to external. However, this research suggests that development stages of integration do not explain the flow of the stages but explain the strategic choice concerned with their current decision-making.
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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…
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.
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Mohd Rizaimy Shaharudin, Mohammad Iranmanesh, Suhaiza Zailani, Keah Choon Tan and Morteza Ghobakhloo
The aim of this study is to investigate the impact of integration capabilities on reverse supply chain (RSC) adoption and, consequently, RSCs' effectiveness. Thus, supply chain…
Abstract
Purpose
The aim of this study is to investigate the impact of integration capabilities on reverse supply chain (RSC) adoption and, consequently, RSCs' effectiveness. Thus, supply chain (SC) integration capabilities and their types in relation to internal, supplier and customer integration capabilities are investigated.
Design/methodology/approach
In this paper a quantitative survey was conducted with Malaysian manufacturers with a certified the International Organization for Standardization (ISO) 14001 environmental management system. The entire population was utilized through census sampling; 150 useable survey responses were received. The partial least squares technique was used for the data analysis.
Findings
The results indicate that internal integration improves external integration. In addition, supplier and customer integration have a positive direct effect on the adoption of RSC activities. Though internal integration has no significant direct effect on the adoption of RSC activities, it has an indirect impact through both supplier integrative capabilities and customer integrative capabilities.
Practical implications
The findings of this study suggest that the managers of manufacturers whose internal integrative capabilities are the base and whose SC integrative capabilities and external integrative capabilities are reinforcing SC integrative capabilities should adopt RSC activities.
Originality/value
The paper offers in-depth insight into this issue and has shed light on the ambiguities in the literature regarding the role of SC integration in RSC adoption.
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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.
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Zhiqiang Wang, Baofeng Huo, Yinan Qi and Xiande Zhao
The purpose of this paper is to investigate the effects of human resource (HR) and manufacturing plant information technology (MP-IT) resource on companies’ internal integration…
Abstract
Purpose
The purpose of this paper is to investigate the effects of human resource (HR) and manufacturing plant information technology (MP-IT) resource on companies’ internal integration capabilities and how these resources/capabilities influence supplier integration.
Design/methodology/approach
Using data collected from 604 Chinese manufacturers, the authors empirically test the effects of different types of resources/capabilities on supplier integration.
Findings
The results show that HR has both direct and indirect effects on supplier integration through their effects on internal integration capabilities. MP-IT resource only has significant indirect effects on supplier integration through internal integration capabilities. The results also indicate that HR is more important than MP-IT resource in improving internal integration capabilities and supplier integration.
Originality/value
This study empirically investigates enablers of supplier integration in China, contributing to supply chain integration literature and practices.
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Benjamin Agyei-Owusu, David Asamoah, Dorcas Nuertey and Ishmael Nanaba Acquah
The study aims to examine the relationship between dimensions of supply chain integration (SCI), operational performance and firm performance of firms. The study proposes that…
Abstract
Purpose
The study aims to examine the relationship between dimensions of supply chain integration (SCI), operational performance and firm performance of firms. The study proposes that internal integration serves as the basis for supplier integration and customer integration and all three dimensions directly enhance operational performance and firm performance. Additionally, operational performance is proposed to mediate the effect of dimensions of SCI on firm performance.
Design/methodology/approach
A research model grounded on the resource-based view and the extended resource-based view was developed to examine the proposed relationships between the dimensions of SCI, operational performance and firm performance. A survey of manufacturing and service firms in Ghana was conducted, with 120 usable responses received. The research model was analysed by using partial least squares structural equation modelling. Robustness tests were conducted by using logistic regression and the Kruskal Wallis test.
Findings
The findings showed that internal integration had positive and significant effects on customer integration and supplier integration. Internal integration had a positive and significant effect on firm performance whilst customer integration had positive and significant effects on operational performance and firm performance. Additionally, operational performance mediated the effect of customer integration on firm performance.
Originality/value
This is one of the few studies that examine the interrelationships between dimensions of SCI. Additionally, to the best of the researchers’ knowledge, this is the first study to empirically examine the mediating role of operational performance in the relationship between dimensions of SCI and firm performance.
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