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Article
Publication date: 8 August 2016

Minkyun Kim and Sangmi Chai

The purpose of this paper is to investigate how business uncertainty affects the implementation of supply chain integration (SCI). More importantly, this research divides…

Abstract

Purpose

The purpose of this paper is to investigate how business uncertainty affects the implementation of supply chain integration (SCI). More importantly, this research divides business uncertainty into four dimensions and SCI into three dimensions to examine the role of each dimension. In addition, it investigates the moderating effects of manufacturing approaches, such as push and pull, in the relationship between SCI and performance.

Design/methodology/approach

Through a structured survey, this study collected 259 responses from supply executives, and supply and purchasing managers of US manufacturing firms. The empirical data analysis was done by using the partial least squares technique.

Findings

The results empirically support the findings that business uncertainty positively affects implementation of SCI. Among the four dimensions of business uncertainty, dynamism and hostility significantly affect implementation of internal integration, integration with suppliers, and integration with customers. In addition, manufacturing approaches, such as push and pull, have a moderating effect on the relationship between SCI and performance.

Practical implications

This study collected survey responses from a manufacturing firm in the supply chain to assist managers to find a solution while dealing with business uncertainty through the implementation of SCI. It also emphasizes manufacturing approaches, such as push and pull, in implementing SCI to improve performance. Thus, supply and purchasing managers should consider the business uncertainty that they are dealing with while developing their supply chain strategy.

Originality/value

To the best of the authors’ knowledge, this study is the first to provide meaningful insights on the effects of SCI toward dealing with business uncertainty. More importantly, by dividing the dimensions of business uncertainty and SCI, this study presents empirical evidence of the significant role of supply chain practices in uncertain business conditions. In addition, this study addresses the gap in extant literature and shows that managers need to consider their manufacturing approach in SCI to improve business performance.

Details

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

Keywords

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Article
Publication date: 3 February 2015

Minkyun Kim, Nallan C Suresh and Canan Kocabasoglu-Hillmer

The aim of this study is to investigate the relationships among strategic sourcing, e-procurement and firm performance, along with the moderating effects of business…

Abstract

Purpose

The aim of this study is to investigate the relationships among strategic sourcing, e-procurement and firm performance, along with the moderating effects of business characteristics and environmental factors on these relationships.

Design/methodology/approach

This empirical investigation relies on structured survey responses from 137 managers of US manufacturing firms. The partial least squares-based structural equation modeling approach is used for data analysis.

Findings

The research results confirm that both strategic sourcing and e-procurement have a positive effect on firm performance. In addition, e-procurement is also found to have a positive impact on strategic sourcing. In addition, the research results suggest that business characteristics and the environment, especially the degree of competition, market turbulence, firm size and stage in product life cycle moderate these relationships significantly. The positive effects of strategic sourcing and e-procurement on firm performance are particularly enhanced under the right conditions.

Originality/value

This research is the first, to the best of our knowledge, to provide insights into the joint effects of strategic sourcing and e-procurement, and how business characteristics and the environment affect their roles on firm performance. In addition, firm performance is evaluated as a multi-dimensional construct involving financial, operational and supply chain aspects, with the measurements consisting of several second-order constructs. The study makes both theoretical and practical contributions.

Details

Journal of Business & Industrial Marketing, vol. 30 no. 1
Type: Research Article
ISSN: 0885-8624

Keywords

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