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.     

Linking product modularity to supply chain integration and flexibility

Abstract

This study builds a moderated mediation model to empirically investigate the impacts of product modularity and supply chain integration (i.e. supplier, customer, and internal integration) on the flexibility and moderating effects of the product life cycle (i.e. growth and maturity stages) on the relationships using data collected from 204 Chinese manufacturers. The findings reveal that both supplier integration and internal integration mediate the relationship between product modularity and flexibility. Moreover, the indirect effect of product modularity on flexibility through supplier integration is stronger during the growth stage than during the maturity stage. There is no difference in the indirect effect of product modularity on flexibility through internal integration, which is significant in both the growth and maturity stages. In addition, the impact of product modularity on customer integration is significantly stronger, whereas that of customer integration on flexibility is significantly weaker during the growth stage than during the maturity stage.     

政府支持、信任与供应链外部整合的关系研究

当前学术界对于影响供应链整合的因素、这些因素如何影响到供应链整合的研究相对匮乏。本研究则以广东省珠三角地区251家制造业为调查对象,构建了政府支持、信任与供应链外部整合之间关系的理论模型,以结构方程为工具,对政府支持、客户信任、供应商信任、客户整合、供应商整合之间的关系进行了实证研究。研究结果表明,政府支持对客户信任、供应商信任均有显著的正向影响;政府支持对客户整合、供应商整合也均有显著的影响;信任对供应链外部整合具有显著的正向影响;此外,政府支持会以信任为中介,间接地对供应链外部整合产生影响,本研究弥补了我国情境下制度与信任因素对供应链整合影响相关研究的空缺,研究结果对我国制造业进行高效供应链整合具有一定的启发意义。     

A study of supply chain integration in the aeronautics sector

Competitive pressure, high development costs, long lead times, rapidly changing technologies and the risks inherent in projects combined with the delays seen in the latest aircraft models (with the rise in costs that these have entailed) highlight the need to reorganise the supply chain in the aeronautics sector paying special attention to an improvement in inter- and intra-organisational integration. The aim of this study is to analyse the situation of supply chain integration (SCI) in the aeronautics sector using three dimensions (information integration, coordination and resource sharing and organisational relationship linkage), considering both internal integration and external integration with customers and suppliers. A group of first-tier supplier experts analyse the dimensions and assess the degree to which the factors that define SCI have been achieved. The results enable strengths and weaknesses to be determined and indicate possible improvements to the situation that is detected with clear managerial implications.     

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.     

Information systems,inter-functional collaboration and innovation in Taiwanese high-tech manufacturing firms

This article investigates whether (1) cross-functional integration within a firm and the use of information systems (IS) that support information sharing with external parties can enhance integration across the supply chain and wider networks and (2) whether collaboration with customers, suppliers and other external parties leads to increased supply chain performance in terms of new product development and introduction of new processes. Data from a high-quality survey carried out in Taiwan in 2009 were used, and appropriate econometric models were applied. Results show that the adoption of IS that enhance information sharing is vital not only for the effective communication with suppliers and with wider network members, but their adoption also has a direct effect across a firm's innovative effort. Cross-functional integration appears to matter only for the introduction of an innovative process. Collaboration with customers and suppliers affected a product's design and its overall features and functionality, respectively.     

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.     

The impact of manufacturing and supply chain improvement initiatives: A survey comparing make-to-order and make-to-stock firms

Manufacturing firms aim at improving both internal and external processes to improve the competitive advantage. Such initiatives include lean practices as well as supplier rationalization and integration. In this paper, we analyze these improvement initiatives and their impact on business performance. In particular, we explore potential differences between make-to-order (MTO) and make-to-stock (MTS) firms. We use data from 216 Australian manufacturing firms. We find a clear difference of improvement focus between MTO and MTS firms. MTO firms exhibit a significant impact of supplier integration on business performance, but not for lean practices and supplier rationalization. The situation is completely reversed for MTS firms, since they have significant effects for internal lean practices and supplier rationalization, but not for logistics integration with supplier. The results show that the distinction between MTO and MTS firms is important when analyzing manufacturing and supply chain improvement initiatives.     

Cooperation and Knowledge Transfer within Buyer–Supplier Relationships: The Moderating Properties of Trust,Relationship Duration and Supplier Performance*

This paper examines the effect of relational factors on knowledge transfer within strategic buyer–supplier exchange. Prior research examining inter‐firm knowledge transfer has focused almost exclusively on horizontal forms of governance such as strategic alliances and joint ventures, whilst research on vertical forms, such as buyer–supplier relationships, is limited. We test the effect of four important relational properties: cooperation, trust, relationship duration and supplier performance. Quantitative data, gathered from 104 UK manufacturing firms in eight industry sectors, are used to analyse the hypothesized relationships through a moderated hierarchical regression model. Our study provides support for the importance of considering relational factors in the transfer of knowledge at the inter‐organizational level. In particular, the results indicate that knowledge transfer is positively influenced by the extent of cooperation, but that this relationship is moderated by the level of trust and the performance of the supplier firm. Managerial implications for these findings and future directions for research are then offered.     

The effect of supply chain integration, modular production, and cultural distance on new product development: A dynamic capabilities approach

Little research has examined how international firms' operations strategies affect dynamic capability creation or how cultural distance affects operations management. This study addresses these gaps by bridging the work on dynamic capabilities, two operations management techniques (product modularization and supplier integration) and cultural distance. Using a sample of 111 Brazilian automobile suppliers, the study finds that new product development is marginally increased by product modularization but decreased by supplier integration. Cultural distance negatively moderated these relationships. This research extends the dynamic capabilities literature and indicates that operations management strategy is an important part of the dynamic capability formation process.     

战略聚焦视角下的文化特性与新产品创造力研究

 基于竞争价值框架和战略理论,在新产品开发过程中,企业文化特性与战略聚焦因素的有效适应或协同对新产品创造力有积极的影响作用。企业文化特性是指一组企业成员所共享的价值观、规范、信仰和群体性认知,能够影响并塑造组织成员的认知、动机和能力,因而在新产品研发阶段对企业产生新想法和解决创造性问题的能力均有重要影响。目前相关研究已开始探讨员工所处的企业文化环境对其新颖而有用想法的产生能力(即创造力)的影响。但鲜有研究在企业层面分析企业文化特性与企业战略的交互对新产品创造力的作用机理。        从竞争价值框架和战略聚焦视角出发,深入分析企业不同文化特性与新产品创造力之间的作用关系,建立基于战略聚焦视角的文化特性-创造力匹配模型,并实证检验新产品开发过程中两类企业文化特性对新产品创造力的影响以及战略聚焦变量在这一过程中的调节机理。为了揭示企业文化特性影响新产品创造力的作用机理,在直接检验柔性导向文化和控制导向文化与新产品创造力关系的基础上,深入分析并检验组织内外部战略聚焦变量(长期导向和企业家导向）对上述关系的调节作用。        以209家中国企业为研究对象进行实证研究,结果表明柔性导向文化和控制导向文化均正向促进新产品创造力;企业家导向正向调节柔性导向文化和控制导向文化与新产品创造力之间的关系;而长期导向对柔性导向文化和控制导向文化与新产品创造力之间关系的调节作用是非线性、倒U形的,即在新产品开发过程中,中等强度的长期导向对企业两种类型文化与新产品创造力的促进作用最强。        研究结论为探讨企业文化特性的激励效能提供了新的理论视角,并对企业在新产品开发过程中的战略聚焦规划和创造力管理有重要的实践指导意义。     

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.     

新创企业高管团队的团队过程与战略决策绩效 ——认知的调节作用

新创企业的成败很大程度上取决于战略决策绩效,具有决策权力的高管团队在创业情境下的认知和行为过程对战略决策绩效具有重要影响。本文结合创业研究和高管团队研究的现有成果,以122家新创企业为研究对象,从内部团队过程和外部团队过程两个维度考察高管团队的团队过程对战略决策绩效的影响,并从认知的视角分析新创企业高管团队认知需要和认知能力对团队过程与决策绩效关系的调节作用。研究结果表明,新创企业高管团队的内部团队过程和外部团队过程与决策的质量和满意度均有显著的正相关关系,且认知需要和认知能力对这种关系具有调节作用,在认知需要和认知能力较高的情况下,内、外部团队过程对决策质量和满意度的正向影响更强。     

Dynamic Pricing and Inventory Management with Dual Suppliers of Different Lead Times and Disruption Risks

It is common for a firm to make use of multiple suppliers of different delivery lead times, reliabilities, and costs. In this study, we are concerned with the joint pricing and inventory control problem for such a firm that has a quick‐response supplier and a regular supplier that both suffer random disruptions, and faces price‐sensitive random demands. We aim at characterizing the optimal ordering and pricing policies in each period over a planning horizon, and analyzing the impacts of supply source diversification. We show that, when both suppliers are unreliable, the optimal inventory policy in each period is a reorder point policy and the optimal price is decreasing in the starting inventory level in that period. In addition, we show that having supply source diversification or higher supplier reliability increases the firm's optimal profit and lowers the optimal selling price. We also demonstrate that, with the selling price as a decision, a supplier may receive even more orders from the firm after an additional supplier is introduced. For the special case where the quick‐response supplier is perfectly reliable, we further show that the optimal inventory policy is of a base‐stock type and the optimal pricing policy is a list‐price policy with markdowns.     

A Multi‐Supplier Sourcing Problem with a Preference Ordering of Suppliers

We study a sourcing problem faced by a firm that seeks to procure a product or a component from a pool of alternative suppliers. The firm has a preference ordering of the suppliers based on factors such as their past performance, quality, service, geographical location, and financial strength, which are commonly included in a supplier scorecard system. Thus, the firm first uses available inventory from supplier 1, if any, then supplier 2, if any, and so on. The suppliers differ in costs and prices. The buyer firm seeks to determine which suppliers to purchase from and in what quantities to maximize its total expected profit subject to the preference ordering constraint. We present the optimal solution to this problem, and show that it has a portfolio structure. It consists of a sub‐set of suppliers that are ordered by their underage and overage costs. This portfolio achieves a substantial profit gain compared to sourcing from a unique supplier. We present an efficient algorithm to compute the optimal solution. Our model applies to component sourcing problems in manufacturing, merchandizing problems in retailing, and capacity reservation problems in services.     

Improving supply chain responsiveness through Advanced Manufacturing Technology: the mediating role of internal and external integration

Abstract

Responsiveness is one of the key performance factors that firms need to face up to the challenges posed by today’s markets. Many manufacturing firms are investing in advanced manufacturing technology (AMT) with a view to improving competitiveness. However, empirical evidence shows that investments in AMT alone do not lead to improvements in performance. In this study, a model that links AMT implementation and responsiveness through internal integration and external integration is proposed. A sample of 441 Spanish industrial companies was used to test the model through structural equation modelling. The findings highlight that internal integration needs to be supplemented with external integration in order to ensure that the implementation of AMT will result in improved responsiveness. Supply chain managers should focus on integration within the supply chain – firstly internal and later external – to obtain returns on investments in AMT in the form of improved flexibility and more reliable and faster deliveries.     

Intensity of Interaction in Supply of Business Advice and Client Impact: A Comparison of Consultancy,Business Associations and Government Support Initiatives for SMEs

This paper assesses the supply of business advice using new empirical evidence from a large-scale survey of SMEs. The chief focus of the paper is on a comparison of suppliers that operate in different environments of regulation, contract and reputation. The paper argues that interaction intensity varies with the level of information asymmetry of these different environments, between different types of service supplier and their clients. Interaction intensity between suppliers also varies as a result of the level of trust they enjoy: for example, the low trust enjoyed by consultants appears to encourage higher intensity of interaction which improves the tailoring of the service to the client's needs and enhances impact. The paper assesses interaction intensity using the existence of site visits and/or a written brief/contract as indicators. Although these measures have limitations, the paper demonstrates clear and significant differences between suppliers in terms of interaction intensity, use of contracts and impact in three broad categories: private-sector consultancy (low trust, high intensity, high impact), business associations (high trust, low intensity, moderate impact) and government support agencies (moderate trust, moderate to high intensity, moderate or low impact). Multivariate estimation methods demonstrate that significant differences in interaction intensity, use of contracts and impact by client type are much less important than differences in supplier type. This indicates that suppliers generally develop more into niche service fields or groups of services rather than niches related to types of firm.     

Information systems,strategic flexibility and firm performance: An empirical investigation

This study investigated the bottom-line impacts of IS support for strategic flexibility. The performance effects of IS support for two key components of strategic flexibility (product flexibility and cross-functional coordination) and the moderating effects of unique, complementary knowledge and information were examined and tested with both survey and archival data. The results showed that IS support for product flexibility was positively related to sales growth and returns on sales. The study also found a stronger association between IS support for product flexibility and ROS, and a positive relationship between IS support for cross-functional coordination and sales growth, when IS were complemented by unique knowledge and information.     

On Decisions for Integration Implementation: An Examination of Complementarities Between Product‐Process Technology Integration and Supply Chain Integration

Research has shown that both product‐process technology (PPT) integration and supply chain integration efforts produce operational benefits, yet synergies between these types of integration are not well understood. This article empirically examines strategic customer integration and supplier integration as complementary activities for PPT integration, with the aim of helping manufacturing plant managers to intelligently implement mutually supportive types of integration. We set two conditions for establishing complementarity: (i) one type of strategic integration must positively influence the adoption of another and (ii) the two types of strategic integration must exhibit a synergistic fit with respect to manufacturing plant capabilities. We test these conditions using survey results representing 224 manufacturing plants. The findings show positive complementarities between PPT integration and supplier integration with respect to quality, delivery, and process flexibility. Also, positive complementarities exist between PPT integration and customer integration with respect to quality and new product flexibility. The results extend the emerging theory of strategic value chain integration and provide guidance to manufacturing managers who wish to assemble strategic integration policies.     

大股东对经理人信任、控制机制与企业新产品开发绩效的实证研究

分析大股东对经理人信任如何影响企业新产品开发绩效,并对比不同控制方式下,信任对新产品开发影响的差异。基于150家制造企业的实证研究表明,大股东对经理人越信任,越有利于企业新产品开发绩效的提高;大股东对经理人信任通过促进企业家导向,间接作用于企业新产品开发绩效;财务控制倒U型调节信任与新产品开发之间的关系;战略控制正向调节信任与企业家导向之间的关系。