The coordination effect of B2B digital process capabilities on competitive performance: balancing or complementing

Abstract

PurposeThe purpose of this paper is to investigate the consequences of two strategies of coordinating the online procurement capability and the online channel management capability on competitive performance.Design/methodology/approachA research model is presented to examine the performance impacts of these two coordination strategies, namely the balancing strategy (achieving a close match relationship) and the complementing strategy (maintaining the synergy effect), and tested using firm-level data collected from 196 manufacturing firms in China. Garen's two-stage econometric technique was used to identify the impacts of two coordination strategies on competitive performance.FindingsOur study discusses and compares two different coordination strategies of mitigating the operational tensions across processes and deploying resource configurations for improving competitive performance. Our results show that while the balancing strategy can mitigate the risks resulted, the complementing strategy does not create synergistic effects on the focal firms' competitive performance.Originality/valueThe results extend our understanding of the nature of B2B digital process coordination both in IS management and supply chain operations.

Effect of integration capabilities with channel distributors on supply chain agility in emerging markets: an institution-based view perspective

“…To compete in this large consumer market, both local and foreign firms need to constantly adjust their operations to address quickly changing customer needs (Douma et al ., 2006). Given above market opportunity, many Chinese firms have adopted digital platform technologies and inter-organizational processes to enhance their collaboration with distributors to be responsive to the market change (Zhu et al ., 2022). Thus, having an agile supply chain is key to their success and survival in this market (Wang et al ., 2014).…”

“…The platform integration literature suggests that technological architecture integration supports a focal firm in achieving flexible links with its partners across distributed applications through (1) extensive scalability (Zhu et al. , 2015), (2) real-time information exchange (Huo et al ., 2016), (3) reconfigured business processes (Zhu et al., 2022), and (4) modular components (Rai and Tang, 2010; Zhu et al ., 2020). Real-time access to sales data through channel distributors also supports extensive environmental scanning to gather and track customer needs and competitor developments (Allred et al., 2011; Huang et al., 2021).…”

“…Literature review and hypothesis development 2.1 Supply chain integration for agility Supply chain agility is defined as the firm's ability to quickly adjust its supply chain operations and convert market uncertainties and potential disruptions into business opportunities through assembling requisite assets, knowledge, and relationships to sense and respond to unpredicted market changes (Braunscheidel and Suresh, 2009;Gligor et al, 2015). It requires a firm to collaborate closely with its partners, such as manufacturers, suppliers, and distributers, to maintain a coordinating relationship to gain competitive performance (Zhu et al, 2022). Specifically, researchers have widely suggested supply chain agility as an attribute closely tied to the effectiveness of market dynamics to cope with unexpected demand changes and customer needs both offline and online (Braunscheidel and Suresh, 2009;Gligor et al, 2015;Narayanan et al, 2015).…”

Examining how and when digital platform capabilities drive technological innovation: a strategic information perspective

“…Nowadays, the digital platform has become a new type of link system that drives the development of the digital economy and sharing economy (Kamal, 2020; Murthy and Madhok, 2021), that is, it creates new business infrastructure for enterprise value and enables enterprises to interact with other subjects utilizing the digital platform, to realize continuous innovation (Chen et al. , 2022; Hänninen and Smedlund, 2021; Zhu et al. , 2022).…”

“…The common feature is that digital technology and digital infrastructure are used to provide new value-creation paths for stakeholders (Gawer and Cusumano, 2002;Kamal et al, 2022). Nowadays, the digital platform has become a new type of link system that drives the development of the digital economy and sharing economy (Kamal, 2020;Murthy and Madhok, 2021), that is, it creates new business infrastructure for enterprise value and enables enterprises to interact with other subjects utilizing the digital platform, to realize continuous innovation (Chen et al, 2022;H€ anninen and Smedlund, 2021;Zhu et al, 2022). Cenamor et al (2019) regarded digital platform capabilities (DPCs) are an enterprise's online platform based on information and communication technology and the ability to connect with other stakeholders.…”