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Journal ArticleDOI

The impact of supply chain integration on performance: A contingency and configuration approach

01 Jan 2010-Journal of Operations Management (John Wiley & Sons, Ltd)-Vol. 28, Iss: 1, pp 58-71

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TL;DR: In this paper, the authors explored the nature of supply chain collaboration and explore its impact on firm performance based on a paradigm of collaborative advantage and found that collaborative advantage is an intermediate variable that enables supply chain partners to achieve synergies and create superior performance.
Abstract: Facing uncertain environments, firms have strived to achieve greater supply chain collaboration to leverage the resources and knowledge of their suppliers and customers. The objective of the study is to uncover the nature of supply chain collaboration and explore its impact on firm performance based on a paradigm of collaborative advantage. Reliable and valid instruments of these constructs were developed through rigorous empirical analysis. Data were collected through a Web survey of U.S. manufacturing firms in various industries. The statistical methods used include confirmatory factor analysis and structural equation modeling (i.e., LISREL). The results indicate that supply chain collaboration improves collaborative advantage and indeed has a bottom-line influence on firm performance, and collaborative advantage is an intermediate variable that enables supply chain partners to achieve synergies and create superior performance. A further analysis of the moderation effect of firm size reveals that collaborative advantage completely mediates the relationship between supply chain collaboration and firm performance for small firms while it partially mediates the relationship for medium and large firms.

1,310 citations

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TL;DR: This paper critically examines how blockchains, a potentially disruptive technology that is early in its evolution, can overcome many potential barriers and proposes future research propositions and directions that can provide insights into overcoming barriers and adoption of blockchain technology for supply chain management.
Abstract: Globalisation of supply chains makes their management and control more difficult. Blockchain technology, as a distributed digital ledger technology which ensures transparency, traceability, and sec...

738 citations

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TL;DR: In this paper, the authors extend prior supply chain research by building and empirically testing a theoretical model of the contingency effects of environmental uncertainty on the relationships between three dimensions of supply chain integration and four dimensions of operational performance.
Abstract: This paper extends prior supply chain research by building and empirically testing a theoretical model of the contingency effects of environmental uncertainty (EU) on the relationships between three dimensions of supply chain integration and four dimensions of operational performance. Based on the contingency and organizational information processing theories, we argue that under a high EU, the associations between supplier/customer integration, and delivery and flexibility performance, and those between internal integration, and product quality and production cost, will be strengthened. These theoretical propositions are largely confirmed by multi-group and structural path analyses of survey responses collected from 151 of Thailand’s automotive manufacturing plants. This paper contributes to operations management contingency research and provides theory-driven and empirically proven explanations for managers to differentiate the effects of internal and external integration efforts under different environmental conditions. © 2011 Elsevier B.V. All rights reserved.

717 citations


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TL;DR: In this article, a model that specifies the relationship between internal integration, relationship commitment, and external integration, using data collected from manufacturing firms in China, is proposed and tested, and the results indicate that for Chinese controlled companies where there is a strong collectivism culture and more reliance on "Guanxi" (relationship), relationship commitment has a significant impact on external integration with suppliers and customers.
Abstract: Supply chain integration (SCI) among internal functions within a company, and external trading partners within a supply chain, has received increasing attention from academicians and practitioners in recent years. SCI consists of internal integration of different functions within a company and external integration with trading partners. While both supply chain internal and external integration have been studied extensively, our understanding of what influences SCI and the relationship between internal and external integration is still very limited. This paper argues that external integration with customers and suppliers is simultaneously influenced by internal integration and relationship commitment to customers and suppliers. Internal integration enables external integration because organizations must first develop internal integration capabilities through system-, data-, and process-integration, before they can engage in meaningful external integration. At the same time, before external integration can be successfully implemented, organizations must have a willingness to integrate with external supply chain partners, which is demonstrated by their relationship commitment. We propose and test a model that specifies the relationship between internal integration, relationship commitment, and external integration, using data collected from manufacturing firms in China. The results show that internal integration and relationship commitment improve external integration independently, and their interactive effect on external integration is not significant. However, internal integration has a much greater impact on external integration than relationship commitment. We also examine the model for companies with different ownerships, and the results indicate that for Chinese controlled companies where there is a strong collectivism culture and more reliance on “Guanxi” (relationship), relationship commitment has a significant impact on external integration with suppliers and customers. This is in stark contrast to foreign controlled companies, characterized by a more individualistic culture and more reliance on technological capabilities, where no significant relationship between relationship commitment and external integration could be found. The model is also tested across different industries and different regions in China, providing useful insights for Chinese companies in particular. This study makes significant contributions to the SCI literature by simultaneously studying the effects of internal integration and relationship commitment on external integration, and providing several future research directions.

573 citations

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TL;DR: In this paper, the authors explore the resilience domain, which is important in the field of supply chain management; they investigate the effects relational competencies have for resilience and the effect resilience, in turn, has on a supply chain's s customer value.
Abstract: Purpose – The purpose of this research is to explore the resilience domain, which is important in the field of supply chain management; it investigates the effects relational competencies have for resilience and the effect resilience, in turn, has on a supply chain ' s customer value. Design/methodology/approach – The research is empirical in nature and employs a confirmatory approach that builds on the relational view as a primary theoretical foundation. It utilizes survey data collected from manufacturing firms from three countries, which is analyzed using structural equation modeling. Findings – It is found that communicative and cooperative relationships have a positive effect on resilience, while integration does not have a significant effect. It is also found that improved resilience, obtained by investing in agility and robustness, enhances a supply chain ' s customer value. Practical implications – Some findings contrast the expectations derived from theory. Particularly, practitioners can learn t...

444 citations


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References
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TL;DR: In this article, the adequacy of the conventional cutoff criteria and several new alternatives for various fit indexes used to evaluate model fit in practice were examined, and the results suggest that, for the ML method, a cutoff value close to.95 for TLI, BL89, CFI, RNI, and G...
Abstract: This article examines the adequacy of the “rules of thumb” conventional cutoff criteria and several new alternatives for various fit indexes used to evaluate model fit in practice. Using a 2‐index presentation strategy, which includes using the maximum likelihood (ML)‐based standardized root mean squared residual (SRMR) and supplementing it with either Tucker‐Lewis Index (TLI), Bollen's (1989) Fit Index (BL89), Relative Noncentrality Index (RNI), Comparative Fit Index (CFI), Gamma Hat, McDonald's Centrality Index (Mc), or root mean squared error of approximation (RMSEA), various combinations of cutoff values from selected ranges of cutoff criteria for the ML‐based SRMR and a given supplemental fit index were used to calculate rejection rates for various types of true‐population and misspecified models; that is, models with misspecified factor covariance(s) and models with misspecified factor loading(s). The results suggest that, for the ML method, a cutoff value close to .95 for TLI, BL89, CFI, RNI, and G...

63,509 citations


"The impact of supply chain integrat..." refers methods in this paper

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TL;DR: In this paper, the statistical tests used in the analysis of structural equation models with unobservable variables and measurement error are examined, and a drawback of the commonly applied chi square test, in additit...
Abstract: The statistical tests used in the analysis of structural equation models with unobservable variables and measurement error are examined. A drawback of the commonly applied chi square test, in addit...

53,384 citations


"The impact of supply chain integrat..." refers result in this paper

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TL;DR: The extent to which method biases influence behavioral research results is examined, potential sources of method biases are identified, the cognitive processes through which method bias influence responses to measures are discussed, the many different procedural and statistical techniques that can be used to control method biases is evaluated, and recommendations for how to select appropriate procedural and Statistical remedies are provided.
Abstract: Interest in the problem of method biases has a long history in the behavioral sciences. Despite this, a comprehensive summary of the potential sources of method biases and how to control for them does not exist. Therefore, the purpose of this article is to examine the extent to which method biases influence behavioral research results, identify potential sources of method biases, discuss the cognitive processes through which method biases influence responses to measures, evaluate the many different procedural and statistical techniques that can be used to control method biases, and provide recommendations for how to select appropriate procedural and statistical remedies for different types of research settings.

41,990 citations


"The impact of supply chain integrat..." refers methods in this paper

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01 Jan 1973
TL;DR: In this paper, a six-step framework for organizing and discussing multivariate data analysis techniques with flowcharts for each is presented, focusing on the use of each technique, rather than its mathematical derivation.
Abstract: Offers an applications-oriented approach to multivariate data analysis, focusing on the use of each technique, rather than its mathematical derivation. The text introduces a six-step framework for organizing and discussing techniques with flowcharts for each. Well-suited for the non-statistician, this applications-oriented introduction to multivariate analysis focuses on the fundamental concepts that affect the use of specific techniques rather than the mathematical derivation of the technique. Provides an overview of several techniques and approaches that are available to analysts today - e.g., data warehousing and data mining, neural networks and resampling/bootstrapping. Chapters are organized to provide a practical, logical progression of the phases of analysis and to group similar types of techniques applicable to most situations. Table of Contents 1. Introduction. I. PREPARING FOR A MULTIVARIATE ANALYSIS. 2. Examining Your Data. 3. Factor Analysis. II. DEPENDENCE TECHNIQUES. 4. Multiple Regression. 5. Multiple Discriminant Analysis and Logistic Regression. 6. Multivariate Analysis of Variance. 7. Conjoint Analysis. 8. Canonical Correlation Analysis. III. INTERDEPENDENCE TECHNIQUES. 9. Cluster Analysis. 10. Multidimensional Scaling. IV. ADVANCED AND EMERGING TECHNIQUES. 11. Structural Equation Modeling. 12. Emerging Techniques in Multivariate Analysis. Appendix A: Applications of Multivariate Data Analysis. Index.

37,069 citations

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TL;DR: In this paper, the authors provide guidance for substantive researchers on the use of structural equation modeling in practice for theory testing and development, and present a comprehensive, two-step modeling approach that employs a series of nested models and sequential chi-square difference tests.
Abstract: In this article, we provide guidance for substantive researchers on the use of structural equation modeling in practice for theory testing and development. We present a comprehensive, two-step modeling approach that employs a series of nested models and sequential chi-square difference tests. We discuss the comparative advantages of this approach over a one-step approach. Considerations in specification, assessment of fit, and respecification of measurement models using confirmatory factor analysis are reviewed. As background to the two-step approach, the distinction between exploratory and confirmatory analysis, the distinction between complementary approaches for theory testing versus predictive application, and some developments in estimation methods also are discussed.

30,830 citations


"The impact of supply chain integrat..." refers background in this paper

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Frequently Asked Questions (8)
Q1. What have the authors contributed in "The impact of supply chain integration on performance: a contingency and configuration approach" ?

This study extends the developing body of literature on supply chain integration ( SCI ), which is the degree to which a manufacturer strategically collaborates with its supply chain partners and collaboratively manages intraand inter-organizational processes, in order to achieve effective and efficient flows of products and services, information, money and decisions, to provide maximum value to the customer. The authors study the relationship between three dimensions of SCI, operational and business performance, from both a contingency and a configuration perspective. Furthermore, the results indicated that internal and customer integration were more strongly related to improving performance than supplier integration. 

While their study makes a significant contribution to the SCI literature and has important implications for practice, there are some limitations and opportunities for future studies. Because integration between customers, suppliers and manufacturers is developed over time, it will be fruitful for future research to examine the evolution of SCI patterns in a longitudinal fashion. Second, because the data were only collected from manufacturers, future studies can broaden their scope by collecting data from all supply chain partners, including suppliers, manufacturers and customers. Future research should examine cross-cultural differences in the relationship between SCI and performance. 

To obtain a representative sample, the authors used the Yellow Pages of China Telecom in each of the four mainland China cities and the directory of the Chinese Manufacturers Association in Hong Kong as their sampling pool. 

Devaraj et al. (2007) found that customer integration did not have a significant direct effect on operational performance, but only moderated the effect of supplier integration on operationalperformance. 

To further assess common method bias, confirmatory factor analysis was applied to Harman’s single-factor model (Sanchez and Brock, 1996). 

The estimates for the average variance extracted (AVE) were higher than 0.50 for four constructs, and 0.46 for the fifth construct. 

The third step assessed the relationship between two- and three-way interactions of internal, customer and supplier integration and operational or business performance, in order to determine whether there was a moderating effect. 

Supplier integration may not contribute to operational performance directly, but instead interacts with customer integration in improving operational performance, reflecting the importance of manufacturers’ integration with both downstream and upstream supply chain partners.