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Article
Publication date: 12 October 2021

Linbo Yang, Joo Seng Tan and Chenjing Gan

Rapidly changing technological and marketing environments challenge the survival of business organizations. Developing dynamic capability is critical in helping companies…

Abstract

Purpose

Rapidly changing technological and marketing environments challenge the survival of business organizations. Developing dynamic capability is critical in helping companies respond to today's turbulent environments. Thus, fruitful studies on the antecedents of dynamic capability have been conducted. However, in the context of the supply chain, little is known about the factors that can be harmful to dynamic capability. Drawing on the theory of cooperation and competition, the first purpose of this study is to examine the relationship between independent goal interdependence with suppliers and dynamic capability by focusing on the mediating role of supplier integration. Combining the information processing theory and transaction cost economics with the theory of cooperation and competition, the second purpose of this study is to discuss and test the moderating role of internal integration.

Design/methodology/approach

Using a carefully designed questionnaire, a large-scale survey was employed to collect data in China. The senior manager (e.g. president, vice president, chief executive officer [CEO], executive or purchasing manager) of each company was asked to participate in our survey. The final valid sample in our survey consisted of 233 companies. Hierarchical multiple regression statistical analysis and bias-corrected bootstrapping methods were applied to test the correlation, mediation, moderation and moderated mediation relationships between variables.

Findings

The authors found that independent goal interdependence negatively influences dynamic capability through frustrating supplier integration. In addition, the moderated mediation model analysis shows that internal integration weakens the positive direct effect of supplier integration on dynamic capability while neutralizing the negative indirect effect of independent goal interdependence on dynamic capability. The theoretical and managerial implications of these results are discussed.

Originality/value

First, starting from the goal interdependence and supply chain management perspectives, this research not only is consistent with remote theoretical research that explains why interdependence among organizations influences the capability to enhance competitive advantage but also incorporates relevant internal and external factors that influence dynamic capability. Second, by proposing an innovative boundary factor – internal integration – this study also contributes to adjusting the predictions of the theory of cooperation and competition. Third, focusing specifically on the negative antecedent of dynamic capability can provide a better understanding of the antecedents that cause companies to have weakened dynamic capability.

Details

Asia Pacific Journal of Marketing and Logistics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-5855

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Book part
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…

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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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…

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. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1741-0401

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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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1366

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

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Article
Publication date: 11 April 2016

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

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3412

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.

Details

Industrial Management & Data Systems, vol. 116 no. 3
Type: Research Article
ISSN: 0263-5577

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Article
Publication date: 21 November 2016

Aviv Kidron, Shay S. Tzafrir and Ilan Meshoulam

The purpose of this paper is to present a scale for measuring internal integration within human resource management (HRM) departments, which is developed and validated in…

Abstract

Purpose

The purpose of this paper is to present a scale for measuring internal integration within human resource management (HRM) departments, which is developed and validated in this paper. Thus far, no valid, comprehensive operational instrument for measuring HRM internal integration has been introduced in the literature.

Design/methodology/approach

The scale items were developed on the basis of a qualitative analysis. The authors recruited 233 HRM professionals from 29 organizations to participate in the survey. In this paper, the authors present evidence of content validity, internal consistency reliability and construct validity that provides support for the use of an HRM internal integration scale. Exploratory factor analysis was conducted to determine the underlying factors that comprise HRM internal integration, while confirmatory factor analysis was used as a confirmatory test of the scale.

Findings

The results of this study led to the development of a standardized 34-item instrument that can be used for measuring HRM internal integration.

Originality/value

The use of the scale opens up a new research avenue by focusing on the nature of integration processes, particularly within HRM systems. The scale will allow studies to be compared across various contexts.

Details

Management Research: Journal of the Iberoamerican Academy of Management, vol. 14 no. 3
Type: Research Article
ISSN: 1536-5433

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Article
Publication date: 8 October 2018

Magdy A. Khalaf and Mohamed Yehia El Mokadem

This paper aims to empirically investigate the triadic relationship between internal integration, internal flexibility and external flexibility.

Abstract

Purpose

This paper aims to empirically investigate the triadic relationship between internal integration, internal flexibility and external flexibility.

Design/methodology/approach

This research hypothesized the mediation effect of internal flexibility on the relationship between internal integration and external flexibility. Survey data were collected and analyzed using simple and mediation regression analysis to test the study hypotheses.

Findings

The research finding reveals that machine, labor and material handling flexibilities; being as internal flexibility dimensions mediate the relationship between internal integration and volume and mix flexibilities; being as external flexibility dimensions. The results provided insufficient evidence on the mediating effect of routing flexibility on the relationship between internal integration and both volume and mix flexibilities.

Research limitations/implications

This research presents a new perspective for research studies to understand the factors that affect manufacturing flexibility. However, the nature of the surveyed sample and using of a single informant might limit the generalizability of the research findings.

Practical implications

This study provides useful insights for firms wishing to enhance their competitiveness through improving their flexibility. The companies should be aware of the importance of developing a suitable platform for coordinating inter-departmental activities to enhance its internal competencies, which, in turn, improve its customer-facing capabilities and boosts its competitiveness.

Originality/value

This paper contributes to knowledge by proposing and empirically testing the mediating effect of internal flexibility on the relationship between internal integration and external flexibility.

Details

International Journal of Quality and Service Sciences, vol. 11 no. 1
Type: Research Article
ISSN: 1756-669X

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Article
Publication date: 1 March 2006

Cristina Gimenez

This paper sets out to empirically analyse the integration process that firms follow to implement supply chain management (SCM). This study has been inspired by the…

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4585

Abstract

Purpose

This paper sets out to empirically analyse the integration process that firms follow to implement supply chain management (SCM). This study has been inspired by the integration model proposed by Stevens.

Design/methodology/approach

Uses the survey method.

Findings

The results show that there are companies in three different integration stages. In stage I, companies are not integrated. In stage II, companies have a medium‐high level of internal integration in the logistics‐production interface, a low level of internal integration in the logistics‐marketing interface, and a medium level of external integration. And, in stage III, companies have high levels of integration in both internal interfaces and in some of their supply chain relationships.

Research limitations/implications

First, only one side of the manufacturer‐retailer relationship was considered, and, second, there was a reduced number of cases in each cluster.

Practical implications

As firms' survival lies on integration, a good understanding of the integration process is a key aspect. In this subject, this study has a main implication for managers: in the integration process, firms must achieve a relatively high level of collaboration among internal functions before initiating any external integration.

Originality/value

The contribution of this study is to describe the integration process, comparing two levels of internal integration (logistics‐marketing and logistics‐production) and analysing the relationship between these internal integration levels and the level of external integration. Many studies consider internal or external integration from the logistics point of view, but very few consider both levels of integration simultaneously. This study differs from the existing literature in the fact that it explores the sequence of integration stages in an integration process.

Details

International Journal of Physical Distribution & Logistics Management, vol. 36 no. 3
Type: Research Article
ISSN: 0960-0035

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Article
Publication date: 2 May 2017

Yongyi Shou, Ying Li, Young Won Park and Mingu Kang

The purpose of this paper is to examine the antecedents of supply chain integration (SCI) at the product level. More specifically, it aims to show the relationship between…

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1769

Abstract

Purpose

The purpose of this paper is to examine the antecedents of supply chain integration (SCI) at the product level. More specifically, it aims to show the relationship between product-level characteristics (i.e. product complexity and product variety) and different dimensions of SCI (i.e. internal, supplier and customer integration).

Design/methodology/approach

A survey-based research design is developed to measure different dimensions of SCI, product complexity and product variety. The authors use structural equation modelling to test the related hypotheses.

Findings

This research shows that internal integration is an enabler to supplier and customer integration. The results also show that under high product complexity, firms tend to implement internal and supplier integration, while product complexity does not have a direct impact on customer integration. Product variety is confirmed to be positively related to all dimensions of SCI.

Originality/value

This paper contributes to the SCI literature by first, providing empirical evidence which supports the study of the product design-supply chain interface; and second, exploring the relationships between product complexity, variety and internal, supplier and customer integration based on a governance view.

Details

International Journal of Physical Distribution & Logistics Management, vol. 47 no. 4
Type: Research Article
ISSN: 0960-0035

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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…

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9600

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

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