An analysis of the direct and mediated effects of employee commitment and supply chain integration on organisational performance

Abstract

This paper focuses on the interrelationships between the different dimensions of supply chain integration. Specifically, it examines the relationship between employee commitment and supply chain integration dimensions to explain several performance measures (flexibility, delivery, quality, inventory and customer satisfaction). Very little research has been conducted into this topic, since employee commitment is rarely included as an antecedent of the effect of supply chain integration on performance. Seven research models have been analysed with Structural Equation Models using a multiple-informant international sample of 266 mid-to-large-size manufacturing plants. The findings suggest that the relationship between employee commitment and operational performance is fully mediated by supply chain integration. Employee commitment contributes to improving internal integration, and internal integration affects performance both directly and indirectly. Moreover, obtaining internal integration helps to achieve supplier and customer integration. As a result, companies should strive to achieve both employee commitment and internal integration, as they mutually reinforce each other. Similarly, managers should achieve internal integration before external integration and include external integration at the strategic level in order to reap the greatest advantages from supply chain integration. Meanwhile, managers should promote employee commitment not only for better supply chain success, but also to mitigate the barriers of supply chain management implementation.

Antecedents of Organizational Performance in Challenging Business Environment: The role of Employee Commitment and Supply Chain Integration

“…(see e.g., Alfalla-Luque et al, 2015;Alfalla-Luque et al, 2012;Cadden, Marshall, & Cao, 2013;Estampe, Lamouri, Paris, & Brahim-Djelloul, 2013;Shub & Stonebraker, 2009). According to Jin, Vonderembse, Ragu-Nathan, and Smith (2014) there exists a gap in literature when it comes to studying the antecedents of SCI.…”

“…The term SCM refer to planning and control of business activities from raw material supplies to final delivery to end-user that can maximize consumer value (Harrison & Van Hoek, 2005). There are many studies that have explored the role of SCM in organization performance in international context (see e.g., Ageron, Gunasekaran, & Spalanzani, 2012;Alfalla-Luque, Marin-Garcia, & Medina-Lopez, 2015;Barratt, 2004;Crum, Poist, Carter, & Liane Easton, 2011;Gimenez & Ventura, 2003;Lambert, Cooper, & Pagh, 1998;Shub & Stonebraker, 2009;Stevens, 1989). However, SCM has largely remained understudied in the context of business challenges in Khyber Pakhtunkhwa (KP) region.…”

“…There are many enablers of an integrated supply chain (see e.g., Christopher & Juttner, 2000;Christopher & Jüttner, 2000 for both academic and practitioner perspectives). Researchers, however, identify the role of employees to be an important aspect and precedent for a successful integration (Alfalla-Luque et al, 2015;Barratt, 2004;Christopher & Juttner, 2000;Dainty, Millett, & Briscoe, 2001;Handfield & Nichols, 2002;Narasimhan & Kim, 2002;Shub & Stonebraker, 2009). Alfalla-Luque et al (2015) argue that role of employee commitment is one of the most important aspect that can help create a delivering value chain.…”

Impact of human resources on wine supply chain flexibility, quality, and economic performance

“…As a result of their impact on SC performance, human resources have paved the path for a special investigation line in the industrial sector (Alfalla-Luque et al, 2015), also followed by SC research (Gil et al, 2015).…”

Green supply chain agility in EMS ISO 14001 manufacturing firms: empirical justification of social and environmental performance as an organisational outcome

“…In order to collaborate with partners through supply chain integration, managers should achieve internal integration before the external integration exists. Firms need to include external integration at strategic levels in order to reap the greatest advantages from supply chain integration (Alfalla-Luque et al, 2015). The procurement systems integrated in the supply chain should address the green aspects and be responsible for the community's well-being.…”