The impact of subsidiaries’ internal and external integration on operational performance

Demeter, Krisztina; Szász, Levente; Rácz, Béla Gergely

doi:10.1016/j.ijpe.2016.08.014

Cited by 60 publications

(79 citation statements)

References 69 publications

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“…In order to improve efficiency and effectiveness, the integrative capabilities, whether external or internal, should be considered as an approach. The roles of supply chain integration in achieving positive relationships on financial performance have recently been discussed [6,23,47,48]. To achieve a high level of performance, the organization has to have the widest degree of arcs of integration [8].…”

Section: The Effect Of Supply Chain Integration On Financial Performancementioning

confidence: 99%

The Impact of Supply Chain Integration and Internal Control on Financial Performance in the Jordanian Banking Sector

et al. 2019

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The aim of this paper is to use a recently developed framework of supply chain integration (SCI) to examine the influence of a set of relationships between SCI and internal control on financial performance in the Jordanian banking sector. SCI consists of external integration and internal integration. External integration includes customer integration and supplier integration. This study utilizes survey data from 249 employees in the Jordanian banking sector and tests the research framework and hypotheses using exploratory factor analysis. The impact of supply chain internal and external integration and internal control significantly affected financial performance. The impact of the examined factors on financial performance is as follows, in decreasing order: internal integration, supplier integration, customer integration, and internal control. This study’s contribution to supply chain management is in its integration of SCI and internal control variables to propose a practical framework for the banks to use, and its development of a measurement tool for managers to determine the effects of internal and external integration and internal control on financial performance.

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Section: The Effect Of Supply Chain Integration On Financial Performancementioning

confidence: 99%

The Impact of Supply Chain Integration and Internal Control on Financial Performance in the Jordanian Banking Sector

et al. 2019

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“…However, the research model appears to be criti cal for the business models of multi nati onal companies. Demeter et al (2016) stated that informati on sharing, especially for multi nati onal companies, is necessary in order to cooperate with other units within the supply network. In this context, in order to receive informati on within the network on a global basis, an affi liate must integrate internally, with frequent and intense interacti ons, with other affi liates, and establish close links with other network units.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

The Mediating Role Effect of Internal Integration Between Long Term Relationship with Suppliers and Customers and Business Performance in Turkey ICI 500 Enterprises

Toker

Pınar

2019

BJO&PM

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Goal: This paper aims to demonstrate the mediating effect of internal integration in the relationship between long-term connections with customers/suppliers and operating performance. Businesses that want to improve operating performance often try to establish long-term relationships with customers and suppliers. However, at this stage, they neglect the internal integration process. Design/Methodology/Approach: Exploratory and empirical data were collected from Turkey's largest 500 manufacturing firms. Factor analyses were performed to verify the validity and reliability of the data set and scales. Then, the relationships between the variables were tested with a hierarchical regression model. Results: The findings show that the internal integration variable has a full mediating effect on the relationship between long-term relationships with customers/suppliers and the operating performance variable. Limitations of the investigation: This research is based only on large industrial enterprises, and the results can only be interpreted in the context of emerging economies. Practical implications: When businesses try to establish long-term relationships with customers and suppliers, they often neglect the internal integration process, making the long-term relationship processes ineffective. This research focuses on internal integration and emphasizes its impact on the relationship between variables. Originality/Value: This study on the integration of supply in the context of Turkey's largest production company is the first and original research. These results for manufacturing enterprises in developing countries with a similar economic structure to Turkey are expected to provide practical benefits.

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“…Some authors suggest an opposite but also positive link between internal and external relationships [e.g. Ferraris, 2014;Horn et al, 2014;Demeter et al, 2016]. They suggest that the FS willing to solve its performance problems tries initially to supplement the necessary knowledge from the MNE internal network, which is usually simpler than acquiring it from independent external sources.…”

Section: Interdependencies Between a Fs's Internal And External Linkamentioning

confidence: 99%

“…They suggest that the FS willing to solve its performance problems tries initially to supplement the necessary knowledge from the MNE internal network, which is usually simpler than acquiring it from independent external sources. In addition, studies on supply chain management indicate that intra-firm links or internal network relationships are prerequisites for external linkages [Zhao et al, 2011;Horn et al, 2014;Demeter et al, 2016]. The innovation-receiving FS is dependent on knowledge inflows and support from HQ and its sister subsidiaries, which implies extensive internal relationships [Bresciani, Ferraris, 2016].…”

Section: Interdependencies Between a Fs's Internal And External Linkamentioning

confidence: 99%

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Subsidiaries’ dual embeddedness and innovation-related competitive advantage

Gołębiowski¹,

Lewandowska²,

Rószkiewicz³

2019

Gospodarka Narodowa

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The foreign subsidiaries of multinational enterprises are involved in two types of networks: an internal (corporate) network within the company including the headquarters and sister subsidiaries, and an external (inter-organizational) network of cooperating partners. Based on the concept of "dual embeddedness," this paper proposes a model explaining the role of internal and external relationships in developing innovation-related competitive advantages. A path analysis was conducted based on data from the Community Innovation Survey's 2010-2012 sample of enterprises-members of capital groups from 10 EU member states, mostly CEE (post-transition countries). The results show the positive influence of dual embeddedness on subsidiaries' innovation, leading to competitive advantages based on cost and on differentiation. A mediating role for external knowledge in the link of internal integration and competitive advantage is posited. External and internal relationships are not mutually exclusive; on the contrary, together they reinforce each other's impact on innovation performance. Internal integration plays a decisive role in building innovation-related competitive advantages based on cost, whereas external

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The impact of subsidiaries’ internal and external integration on operational performance

Cited by 60 publications

References 69 publications

The Impact of Supply Chain Integration and Internal Control on Financial Performance in the Jordanian Banking Sector

The Impact of Supply Chain Integration and Internal Control on Financial Performance in the Jordanian Banking Sector

The Mediating Role Effect of Internal Integration Between Long Term Relationship with Suppliers and Customers and Business Performance in Turkey ICI 500 Enterprises

Subsidiaries’ dual embeddedness and innovation-related competitive advantage

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