Supply chain integration and performance: the moderating effect of supply complexity

Abstract

Purpose -The purpose of this paper is to investigate the effectiveness of supply chain integration in different contexts. More specifically, it aims to show that supply chain integration is only effective in buyer-supplier relationships characterised by high supply complexity. Design/methodology/approach -A survey-based research design is developed to measure different dimensions or aspects of supply chain integration and supply complexity. Data were collected among manufacturers in The Netherlands and Spain. Findings -This research shows that supply chain integration increases performance if supply complexity is high, while a very limited or no influence of supply chain integration can be detected in case of low supply complexity. The results also show that in high supply complexity environments the use of structured communication means to achieve supply chain integration has a negative effect on cost performance.Research limitations/implications -The limited sample size prohibits estimating and testing of more comprehensive models of the relationship between supply chain integration and performance. Specifically, the authors were not able to further investigate how different supply chain integration dimensions are inter-related and mutually reinforce one another to improve performance. Practical implications -The main managerial lesson is that, in contrast to what has been written in many books and other popular publications, high levels of supply chain integration are only necessary in environments characterised by high supply complexity. Originality/value -This study helps to better understand context in supply chain management research. Specifically, it investigates the moderating effect of supply complexity on the integration-performance relationship, a topic suggested by Bozarth et al. as a line for further research.

From Supply Chain Integration to Operational Performance: The Moderating Effect of Market Uncertainty

“…However, evidently, many previous researches appear to have been inconsistent or even conflicting with one another about their findings (Devaraj et al 2007;Gimenez et al 2012;Sousa et al 2012). Although, some of the findings on such positive relationship might be assumed to be restricted to certain specific conditions (Cao et al 2015; Ebrahimi 2015), many others were intended to be general on their findings (Bowersox et al 1999).…”

“…M. Wong et al 2011;Gimenez et al 2012). In particular, the recent advent of the open source information system has made SCI and its influence to supply chain performance more susceptible to the exogenous factors (Boehmke and Hazen, 2017).…”

Investigating the Path from Supply Chain Integration to Business Performance: Evidence from a Sub-Saharan African Economy

“…In line with previous studies (e.g., Flynn et al, 2010;Gimenez et al, 2012), for each firm contacted, a key informant was identified and asked to respond to the study. The most targeted informants in previous research have been individuals who hold senior positions such as SC/logistics manager/officer, CEO/president/vice president/, Managing director, or other individuals perceived to have adequate knowledge about the company's internal and external operating environment (e.g., operations manager).…”

“…While some authors consider the elements or things which are integrated within the SC (see for eg., Vaart & Donk, 2008;Gimenez et al, 2012;Moshkdanian & Molahosseini, 2013), others focus on the directison/scope of integration (e.g., internal, supplier, & customer -see for example, Frohlich & Westbrook, 2001;Flynn et al, 2010;Schoenherr & Swink, 2012). Similarly, whiles some authors (e.g., Sezen, 2008;Özdemir & Aslan, 2011) conceive and operationalize SCI as unidimensional, others (e.g., Flynn et al, 2010;Huo, 2012) discuss it as a multidimensional construct.…”

“…In an attempt to address the inconsistencies in the empirical literature, Fabbe-Costes and Jahre (2008) proposed a more comprehensive conceptualization of the SCI construct and studied its performance effects. Drawing on Fabbe-Costes and Jahre's conceptualization, recent studies (e.g., Boon-itt & Wong, 2011;Gimenez et al, 2012;Huo, 2012;Huang et al, 2014;Huo et al, 2014) have studied the relationship from a contingency perspective, while others (e.g., Flynn et al, 2010;Schoenherr & Swink, 2012) have employed configuration arguments to explain how SCI shapes business performance.…”