In this paper we focus on the integration of strategic objectives and process knowledge that a manufacturing factory collects from its external interfaces. Using data from a variety of manufacturing industries, this study examines four different types of strategic integration at the manufacturing plant level. We use a path analytic approach to simultaneously assess the contributions of the various types of integration to manufacturing-based competitive capabilities and business level performance. In addition, we examine the intervening roles that manufacturing-based competitive capabilities play in mediating the relationships between strategic integration and business performance. We find that each type of integration activity has unique benefits and detriments. These findings extend prior studies of manufacturing and supply chain integration by broadening the theory relating to strategic integration. The results also provide implications for manufacturing managers who seek to design integration policies and associated resource deployments. #
The field of operations management has been criticized for the inadequacy of its theory. We suggest that this criticism may be too harsh, and further, that many building blocks of theory are prevalent in the body of existing research. This paper has two goals. The first is to suggest that careful organization of our thinking can lead to useful, productive theories in operations management that demonstrate all the hallmarks of the familiar theories of natural science. We discuss the nature of scientific inquiry in general terms, and examine the implications for what should be expected from theory in operations management. Our second goal is to illustrate through examples how such theories and their related laws might be developed. Two theories are proposed: the Theory of Swift, Even Flow, and the Theory of Performance Frontiers. The Theory of Swift, Even Flow addresses the phenomenon of cross-factory productivity differences. The Theory of Performance Frontiers addresses the multiple dimensions of factory performance and seeks to unify prior statements regarding cumulative capabilities and trade-offs. Implications drawn from the theories are discussed and concluding remarks suggest the advantages of future theory development and test. q 0272-6963r98r$ -see front matter q 1998 Elsevier Science B.V. All rights reserved.Ž. PII: S 0 2 7 2 -6 9 6 3 9 8 0 0 0 2 8 -X
a b s t r a c t This paper revisits Frohlich and Westbrook's arcs of integration concept [Arcs of integration: an international study of supply chain strategies. Journal of Operations Management 2001, 19 (2) pp. 185-200].Using survey responses from 403 supply chain professionals, we compare the arcs of integration group memberships generated with our sample to the original study, rationalize the classification scheme, and assess the impact of supply chain integration strategies on quality, delivery, flexibility and cost performance. In doing so we cross-validate Frohlich and Westbrook's framework with a more recent and broader sample of data utilizing multi-dimensional performance measures collected from supply chain managers. We ground these relationships in the relational and resource-based views of the firm. We also extend Frohlich and Westbrook's study by investigating the moderating role of internal integration on the relationships between arcs of integration and performance. In accordance with information processing theory, the results indicate that internal integration strengthens the positive impacts of external integration on both delivery and flexibility performance. However, the theory is not supported for either quality or cost performance. Overall, our study confirms and extends the work of Frohlich and Westbrook, augments theories used to describe supply chain integration efforts, and provides practical implications for managers.
Many businesses are seeking to develop and exploit analytics capabilities today. Using organizational information processing theory (OIPT), we study demand visibility and supply visibility as foundational resources for analytics capability, and organizational flexibility as a complementary capability. We further examine relationships among these factors under varying conditions of market volatility, a type of environmental uncertainty. The results from our analysis of data from 191 global firms indicate that both demand and supply visibility are associated with the development of analytics capability. In turn, analytics capability is shown to be more strongly associated with operational performance when supply chain organizations also possess organizational flexibility needed to act upon analytics‐generated insights quickly and efficiently. Furthermore, the empirical results indicate that analytics capability and organizational flexibility are more valuable as complementary capabilities for firms who operate in volatile markets, rather than in stable ones. These findings extend OIPT to create a better understanding of contemporary applications of information processing technologies, while also providing theoretically grounded guidance to managers in the development of analytics capabilities within their firms.
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