Supplier integration and company performance: A configurational view

Supplier integration is considered a key managerial strategy for improving buyer performance. This study adopts a configurational approach to supplier integration, based on the interaction and complementarity between supply chain management practices. In this perspective, this study explores the impact of supplier integration and measures aimed at creating a fast supply network structure on buyer performance. This research also attempts to ascertain whether these practices can exert a synergic effect. After examining data from a sample of 186 manufacturing plants, we can conclude that while taken singly supplier integration and fast supply network structure practices have a markedly positive effect on the performance goals considered (i.e., efficiency, schedule attainment and flexibility); in addition, they interact to produce an additional synergic effect on efficiency and schedule attainment. The analyses also reveal that investing in FSNS or SI initiatives alone can be risky. On one hand, when companies fail to make any effort to structure their supply network in order to achieve fast lead times, the impact of supplier integration on efficiency and schedule attainment may be hindered and, in extreme cases, supplier integration might even have no impact at all. On the other hand, investing only in fast supply network structure initiatives, without striving to achieve an adequate level of supplier integration might well be useless: indeed, even detrimental to any improvement in performance. These findings provide useful guidelines for managers who must decide how to combine supplier integration and fast supply network structure initiatives in order to improve or maximize performance.     

Supplier integration and company performance: A configurational view

Supplier integration is considered a key managerial strategy for improving buyer performance. This study adopts a configurational approach to supplier integration, based on the interaction and complementarity between supply chain management practices. In this perspective, this study explores the impact of supplier integration and measures aimed at creating a fast supply network structure on buyer performance. This research also attempts to ascertain whether these practices can exert a synergic effect. After examining data from a sample of 186 manufacturing plants, we can conclude that while taken singly supplier integration and fast supply network structure practices have a markedly positive effect on the performance goals considered (i.e., efficiency, schedule attainment and flexibility); in addition, they interact to produce an additional synergic effect on efficiency and schedule attainment. The analyses also reveal that investing in FSNS or SI initiatives alone can be risky. On one hand, when companies fail to make any effort to structure their supply network in order to achieve fast lead times, the impact of supplier integration on efficiency and schedule attainment may be hindered and, in extreme cases, supplier integration might even have no impact at all. On the other hand, investing only in fast supply network structure initiatives, without striving to achieve an adequate level of supplier integration might well be useless: indeed, even detrimental to any improvement in performance. These findings provide useful guidelines for managers who must decide how to combine supplier integration and fast supply network structure initiatives in order to improve or maximize performance.     

Supplier integration and firm performance: the moderating effects of internal integration and trust

This study proposes and empirically tests a model of the moderating effects of internal integration and trust on the impacts of information, process and strategic integration with suppliers on firm performance using structural equation modelling and data collected from 261 manufacturing firms in Vietnam. The results show that all three types of supplier integration positively associate with firm performance. Internal integration enhances the impact of process integration with suppliers on firm performance, but does not moderate the impacts of information and strategic integration with suppliers. Internal trust has insignificant, positive and negative influences on the effects of information, process and strategic integration with suppliers on firm performance. The findings show that internal integration and trust play different roles in moderating the positive effects of information, process and strategic integration with suppliers on firm performance, which elucidates a possible reason for previous mixed findings on the relationship between supplier integration and firm performance.     

Internal and External Integration for Product Development: The Contingency Effects of Uncertainty,Equivocality, and Platform Strategy

Effective product development requires firms to unify internal and external participants. As companies attempt to create this integrated environment, two important questions emerge. Does a high level of internal integration lead to a higher level of external integration? In the context of product development, this study considers whether internal integration in the form of concurrent engineering practices affects the level of external integration as manifested by customer integration, supplier product integration, and supplier process integration. External integration, in turn, may influence competitive capabilities, namely product innovation performance and quality performance. Second, using contingency theory, do certain contextual variables moderate the linkages between integration strategy (external and internal) and performance? Specifically, this study considers whether uncertainty, equivocality, and platform development strategy change the relationships among internal integration, external integration, and competitive capabilities. Data collected from 244 manufacturing firms across several industries were used to test these research questions. The results indicate that both internal and external integration positively influence product innovation and quality and ultimately, profitability. With respect to contingency effects, the results indicate that equivocality moderates the relationships between integration and performance.     

Benefits of adopting lean production on green performance of SMEs: a case study

Abstract

Small- and medium-sized enterprises (SMEs) are widely recommended to strive, not only for their performance in operational side, but they need to integrate the environmental dimension. To do that, the literature widely indicates a positive impact of lean practices on green performance. However, very few studies have been carried out in SMEs context. In this view, this paper aims at providing through a practical case study of lean implementation in a real-life small manufacturing company, the information to confirm this synergy between lean and green performance. To achieve this aim, a proposed framework of lean and green integration has been implemented in a SME producing different types of pumps. The results achieved shows that there is a strong correlation between operational metrics improvement and green metrics improvement. Moreover, the benefits of lean practices such as 5S, Kanban, SMED, AM, cellular manufacturing and quality control on green performance are widely demonstrated. Future work could study other processes and explore other case-specific supporting tools and techniques.     

The Effect of Socialization Mechanisms and Performance Measurement on Supplier Integration in New Product Development

This article examines the effect of socialization mechanisms and supplier performance measurement on the level of supplier integration in new product development and subsequent firm performance outcomes. Prior research has found socialization mechanisms and performance measures to be effective in managing supplier relationships, though research examining their impact within a product development context has been limited. Socialization mechanisms, such as supplier conferences and on‐site visits, help establish communication and information‐sharing routines necessary to achieve supplier integration in the product development process. Using performance measures to evaluate a supplier helps focus managerial attention on areas such as innovation and communication that are important to integration success. A structural equation model, using a sample of 142 manufacturing firms based in the United Kingdom, indicates that the level of supplier integration in new product development is positively influenced by socialization mechanisms and innovation‐focused measures of supplier performance, but not significantly associated with the use of communication measures. In turn, increased levels of supplier integration led to improvements in both collaboration outcomes and business performance. Socialization mechanisms were also found to have a direct effect on collaboration outcomes achieved by the firm. Managerial implications and future research directions are discussed.     

Supplier integration,operational capability and firm performance: an investigation in an emerging economy environment

Abstract

The literature on supplier integration’s (SI) impact on firm performance is intertwined with mixed findings in terms of definitional differences, study context, specific integration components, and the types of relationships examined. This study contributes to the supplier integration and firm performance (SI-FP) literature by investigating how and when supplier integration influences firm performance. Drawing on the relational view, the resource-based view, and the Dynamics Capability theories, we suggest that improvements in firm performance from the supplier integration perspective are dependent on gains in operational capabilities. We test this dependency with survey data from firms in Ghana, a developing economy. The results show positive significant relationships between supplier integration and competitive operational capabilities and between supplier integration and firm performance. Our results highlight the importance for managers in developing economies and elsewhere to improve their firms’ operational capabilities and competitiveness by investing in supplier integration. We also discuss implications of these findings for research.     

A Structural Analysis of the Effectiveness of Buying Firms' Strategies to Improve Supplier Performance

Many manufacturing firms have increased the amount of component parts and services they outsource, while refocusing on their core capabilities. Outsourcing parts and services to independent, external suppliers means that suppliers' performance is increasingly critical to the long‐term success of these buying firms. Buying firms are increasingly using disparate supplier development strategies to improve supplier performance including supplier assessment, providing incentives for improved performance, instigating competition among suppliers, and direct involvement of the buying firm's personnel with suppliers through activities such as training of suppliers' personnel. Using resource‐based theory, internalization theory, and structural equation modeling, we examine the impact of these supplier development strategies on performance. We conclude that direct involvement activities, where the buying firm internalizes a significant amount of the supplier development effort, play a critical role in performance improvement.     

E-business services and business performance: a study of the telecommunications manufacturing industry

The development of information and communication technologies has significantly changed the business interactions as well as created new approaches for improving business performances. While the benefits from this development have been well documented in the literature, it also poses a significant challenge for companies in tracking or further improving e-business services. This article contributes to this body of knowledge by investigating the impact of e-business service dimensions on business performance in the telecommunications manufacturing industry. Based on 121 usable responses from a questionnaire survey of the UK telecommunication manufacturers, structural equation modelling is employed to identify the main e-business service dimensions which affect business performance significantly. The data analysis reveals that two e-business service dimensions significantly influence suppliers’ performance from the buyer's perspective. It also indicates the significant relationships between suppliers’ performance, buyer-perceived buyer–supplier relationship maintenance and the buyer's competitive advantage. The findings in this research not only help the supplier to understand which practices significantly improve its overall performance (as perceived by the buyer), but also assist the buyer in its supplier development efforts to improve its own business performance.     

The impact of lean practices on operational performance – an empirical investigation of Indian process industries

In deciding to adopt lean manufacturing, it is imperative to investigate where and how lean practices are most needed to influence manufacturing and business performance. Such an investigation becomes indispensable when lean thinking is to be considered in a production arrangement different to the conventional, repetitive, high-volume, stable-demand and discrete-manufacturing environment. This study provides explanations of how performance is improved through the adoption of lean practices in process industries. This is a relatively under-researched area compared to the performance effects associated with the introduction and implementation of lean principles in traditional, discrete manufacturing. Based on a survey of Indian process industries, this study attempts to develop an empirical relationship between lean practices and performance improvement through the use of multivariate statistical analysis. The findings have led to the conclusion that lean practices are positively associated with timely deliveries, productivity, first-pass yield, elimination of waste, reduction in inventory, reduction in costs, reduction in defects and improved demand management. However, within a process-industry context, lean practices related to pull production were found to have a marginal impact on performance improvement. A detailed discussion of the findings along with their theoretical and managerial implications is provided in the paper.     

The impact of inter-organizational information systems-enabled external integration on capabilities of buyer–supplier dyads

Increasingly, firms are adopting two major supply chain management initiatives: to undertake external integration with supply chain partners and to implement inter-organizational information systems (IOSs). However, academic researchers have not adequately investigated effects of these types of initiatives. Using empirical data from 154 buyer–supplier dyads, we examined the direct and indirect effects (through external integration) of IOS usage on capabilities of buyer– supplier dyads. We found that external integration plays a mediating role in the relationship between IOS usage and capabilities of buyer– supplier dyad. This is the first study to investigate the effects of IOS usage and external integration on capabilities of buyer–supplier dyad.     

Sourcing Strategy,Supplier Relationships and Firm Performance: An Empirical Investigation of UK Organizations

This article conceptualizes and empirically examines buyer–supplier relationships in respect of supply sourcing strategies, relationship characteristics and firm performance. Two sourcing strategies available to organizations are examined, critical and leverage, which in turn, influence the approach to managing the supplier relationship (arms‐length or collaborative). We argue that different relationship approaches are appropriate to achieving different performance outcomes. A structural equation model, using a sample of 142 manufacturing firms based in the United Kingdom, is used to test this hypothesized model. The results indicate that a critical sourcing strategy requires collaborative supplier relationships in order to achieve higher relationship and business outcomes, while leverage sourcing strategies have a direct impact on these same performance outcomes. In addition, a leverage strategy was associated with increased levels of supplier power, though this power was found not to have a significant effect on performance. Our study provides support for the importance of aligning sourcing strategies to particular supplier relationship approaches in order to improve firm performance. Managerial implications of these findings and future directions for research are then offered.     

Evaluating the impact of lean practices on environmental performance: evidences from five manufacturing companies

Abstract

Previous evidence suggests that lean practices help organizations to enhance environmental performance. However, the impact of lean practices on the environment is still unclear. This study, therefore, aims to analyse the relationship between lean and environmental performance in two main stages: first, a review of the relevant literature was developed, followed by a multiple case study analysis conducted in five manufacturing companies. Onsite data were collected from the firms during a 5 years’ time span of research and developing semi-structured interviews. Findings indicate that the environmental performance of the companies analysed is generally enhanced in the long-term after the implementation of lean. Moreover, the results suggest that the environmental performance of the firms investigated is mainly improved by using JIT and TQM practices in a lean transformation context. The research findings provide further results remarking the possible negative impact of Kanban deliveries, 5S and TPM on various environmental performance indicators.     

Managing Differentiation‐Integration Duality in Supply Chain Integration*

Existing research focuses on the positive returns to operational performance of firms’ supply chain integration (SCI) with suppliers, buyers, and customers. We draw on differentiation‐integration duality and contingency theory to suggest that manufacturing firms should seek to achieve both integration through supply chain coordination activities and differentiation through modularity‐based manufacturing practices (MBMP). Using a sample of 261 manufacturing firms, we identify an inverse U‐shaped relationship between SCI and operational performance. Furthermore, we find support for the importance of differentiation‐integration duality as a fit between high levels of SCI and high levels of MBMP results in enhanced operational performance. We find support for a contingency perspective as fit is especially critical at higher levels of environmental uncertainty. Implications for theory, practice, and further research are suggested.     

A structural analysis of greening the supplier,environmental performance and competitive advantage

A clear research need has been identified to confirm the structural relationships between greening the supplier, enhanced environmental performance and improved competitive advantage, to provide an impetus for firms to green their suppliers. A mail survey was conducted and empirical data of 119 ISO 14001 manufacturing firms in Malaysia was gathered for this study. Structural equation modelling technique was applied in this research article. Results from the analysis, reveal the existence of a positive and significant linkage between green suppliers with both environmental performance and competitive advantage. At the same time, environmental performance has also been shown to positively and significantly affect competitive advantage; while environmental performance plays a partial mediating role between greening the supplier and competitiveness. Such significant finding is especially essential for the manufacturing sector registered with ISO 14001 who intend to enhance their environmental performance and carve a niche competitive edge in the business arena.     

LEAN,GREEN, AND THE QUEST FOR SUPERIOR ENVIRONMENTAL PERFORMANCE

We examine the relationship between lean manufacturing practices and environmental performance as measured in terms of air emissions and resource use. We draw on two unique surveys of 31 automobile assembly plants in North America and Japan, which contain information on manufacturing practice and environmental performance, as well as in‐depth interviews with 156 plant level employees at 17 assembly plants. Our survey results and interviews suggest that lean management and reduction of air emissions of volatile organic compounds (vocs) are associated negatively. Lean manufacturing practices contribute to more efficient use of paints and cleaning solvents, but these in‐process changes are not sufficient to meet the most stringent air regulations. We found some evidence to support the link between lean practices and resource efficiency. While our survey results were in hypothesized direction, they were not statistically significant. In‐depth semi‐structured interviews, however, suggest a more robust relationship, and we use them to describe some mechanisms by which all three aspects of lean management (buffer minimization, work systems, and human resource management) may be related to environmental management practices and performance.     

Cinderella purchasing transformation: linking purchasing status to purchasing practices and business performance

This paper contributes to the on-going debate about the relevance of the purchasing function for the firm value creation. We empirically examine the role of the purchasing function in improving business performance through an international survey based on 653 responses. Results suggest that purchasing practices related to spend rationalisation have a positive impact on the overall business performance, whereas supplier development & integration and sustainable purchasing have not. Moreover, the purchasing recognition by top managers and other organisational units emerge as a powerful antecedent of all purchasing practices. Instead, pure formal authority provided by the position in the organisation chart (i.e. the report level) does not have any influence on purchasing practices adoption.     

The effect of supplier development on outsourcing performance: the mediating roles of opportunism and flexibility

Abstract

In this increasingly competitive business environment, firms utilise outsourcing as a strategic tool to leverage globally dispersed resources so that they may focus on their core competencies and improve efficiency. The more firms rely on outsourcing, the more they depend on their suppliers, and the more important it is to manage and develop suppliers in order to achieve and maximise the benefits of outsourcing. This paper explores the impact of supplier development on outsourcing performance. Structural equation modelling was used to analyse data collected from 213 manufacturing firms in China. The results indicate that supplier development has a strong direct positive impact on outsourcing performance, and that supplier development also leads to enhanced outsourcing performance through reducing outsourcing opportunism risk and improving outsourcing flexibility. In addition to making a contribution to current theories of outsourcing, our findings also provide outsourcing managers with practical understanding and insights about the role of supplier development in enhancing outsourcing performance.     

Examining the Impact of Interorganizational Systems on Process Efficiency and Sourcing Leverage in Buyer–Supplier Dyads

Manufacturing firms are increasingly seeking cost and other competitive advantages by tightly coupling and managing their relationship with suppliers. Among other mechanisms, interorganizational systems (IOS) that facilitate boundary‐spanning activities of a firm enable them to effectively manage different types of buyer–supplier relationships. This study integrates literature from the operations and information systems fields to create a joint perspective in understanding the linkages between the nature of the IOS, buyer–supplier relationships, and manufacturing performance at the dyadic level. External integration, breadth, and initiation are used to capture IOS functionality, and their effect on process efficiency and sourcing leverage is examined. The study also explores the differences in how manufacturing firms use IOS when operating under varying levels of competitive intensity and product standardization. In order to test the research models and related hypothesis, empirical data on buyer–supplier dyads is collected from manufacturing firms. The results show that only higher levels of external integration that go beyond simple procurement systems, as well as who initiates the IOS, allow manufacturing firms to enhance process efficiency. In contrast, IOS breadth and IOS initiation enable manufacturing firms to enhance sourcing leverage over their suppliers. In addition, firms making standardized products in highly competitive environments tend to achieve higher process efficiencies and have higher levels of external integration. The study shows how specific IOS decisions allow manufacturing firms to better manage their dependence on the supplier for resources and thereby select system functionalities that are consistent with their own operating environments and the desired supply chain design.     

供应战略分类及其实践差异、制造绩效改进差异的实证研究

本文借助于2001年国际制造业战略调研教据,采用统计方法,对供应战略分类及不同战略类型问实践差异和制造绩效改进差异进行实证分析.根据供应商选择标准和整合机制的差异,可将供应战略分成敏捷、精益和传统三种类型.单因素方差分析表明应用敏捷和精益供应战略的企业在协调与供应商关系的投资方面各有所侧重,取得的制造绩效各有所长,但两者在总体投资力度和绩效改进方面均显著高于传统型供应战略.