IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v119y2009i2p328-346.html
   My bibliography  Save this article

An investigation on the direct and indirect effect of supply chain integration on firm performance

Author

Listed:
  • Kim, Soo Wook

Abstract

The purpose of this research is to examine the causal linkages among supply chain management (SCM) practice, competition capability, the level of supply chain (SC) integration, and firm performance. This is helpful in developing a framework for linking a firm's SC integration strategy to its competitive strategy, and in identifying how such linkage can be connected to the improvement of organizational performance. Such effort should enable us to derive a set of advisable utilization strategies of supply chain practices for SC integration. From the results of LISREL analysis on Korean and Japanese manufacturing firms and subsequent equality test for multi-group, this paper finds that, in case of Korean firms, efficient supply chain integration may play more critical role for sustainable SCM competitiveness, while, in Japanese firms, the close interrelationship between the level of SCM practices and competition capability may have more significant effect on SCM competitiveness. This finding derives a strategic framework that, in early stage, the emphasis on systemic supply chain integration may be more crucial, and, in the stage after setting supply chain integration on its way somewhat, the movement of strategy focus into the pursuit of high level of consistency between SCM strategy and competitive strategy may be advisable.

Suggested Citation

  • Kim, Soo Wook, 2009. "An investigation on the direct and indirect effect of supply chain integration on firm performance," International Journal of Production Economics, Elsevier, vol. 119(2), pages 328-346, June.
  • Handle: RePEc:eee:proeco:v:119:y:2009:i:2:p:328-346
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925-5273(09)00080-2
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. van der Vaart, Taco & van Donk, Dirk Pieter, 2008. "A critical review of survey-based research in supply chain integration," International Journal of Production Economics, Elsevier, vol. 111(1), pages 42-55, January.
    2. de la Fuente, M. Victoria & Ros, Lorenzo & Cardos, Manuel, 2008. "Integrating Forward and Reverse Supply Chains: Application to a metal-mechanic company," International Journal of Production Economics, Elsevier, vol. 111(2), pages 782-792, February.
    3. Thomas C. Powell, 1995. "Total quality management as competitive advantage: A review and empirical study," Strategic Management Journal, Wiley Blackwell, vol. 16(1), pages 15-37.
    4. Chetty, Sylvie K. & Wilson, Heather I. M., 2003. "Collaborating with competitors to acquire resources," International Business Review, Elsevier, vol. 12(1), pages 61-81, February.
    5. Welker, Gera A. & van der Vaart, Taco & Pieter van Donk, Dirk, 2008. "The influence of business conditions on supply chain information-sharing mechanisms: A study among supply chain links of SMEs," International Journal of Production Economics, Elsevier, vol. 113(2), pages 706-720, June.
    6. Wong, Chee Yew & Boon-itt, Sakun, 2008. "The influence of institutional norms and environmental uncertainty on supply chain integration in the Thai automotive industry," International Journal of Production Economics, Elsevier, vol. 115(2), pages 400-410, October.
    7. David G. Hoopes & Tammy L. Madsen & Gordon Walker, 2003. "Guest editors' introduction to the special issue: why is there a resource‐based view? Toward a theory of competitive heterogeneity," Strategic Management Journal, Wiley Blackwell, vol. 24(10), pages 889-902, October.
    8. Nurmilaakso, Juha-Miikka, 2008. "Adoption of e-business functions and migration from EDI-based to XML-based e-business frameworks in supply chain integration," International Journal of Production Economics, Elsevier, vol. 113(2), pages 721-733, June.
    9. Jeffrey G. Miller & Aleda V. Roth, 1994. "A Taxonomy of Manufacturing Strategies," Management Science, INFORMS, vol. 40(3), pages 285-304, March.
    10. B Kogut & U Zander, 2003. "A memoir and reflection: knowledge and an evolutionary theory of the multinational firm 10 years later," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(6), pages 505-515, November.
    11. Swafford, Patricia M. & Ghosh, Soumen & Murthy, Nagesh, 2008. "Achieving supply chain agility through IT integration and flexibility," International Journal of Production Economics, Elsevier, vol. 116(2), pages 288-297, December.
    12. Naresh K. Malhotra & Sung S. Kim & Ashutosh Patil, 2006. "Common Method Variance in IS Research: A Comparison of Alternative Approaches and a Reanalysis of Past Research," Management Science, INFORMS, vol. 52(12), pages 1865-1883, December.
    13. Robert M. Grant, 1996. "Prospering in Dynamically-Competitive Environments: Organizational Capability as Knowledge Integration," Organization Science, INFORMS, vol. 7(4), pages 375-387, August.
    14. Larry J. Menor & Aleda V. Roth & Charlotte H. Mason, 2001. "Agility in Retail Banking: A Numerical Taxonomy of Strategic Service Groups," Manufacturing & Service Operations Management, INFORMS, vol. 3(4), pages 273-292, February.
    15. Vachon, Stephan & Klassen, Robert D., 2008. "Environmental management and manufacturing performance: The role of collaboration in the supply chain," International Journal of Production Economics, Elsevier, vol. 111(2), pages 299-315, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kauremaa, Jouni & Kärkkäinen, Mikko & Ala-Risku, Timo, 2009. "Customer initiated interorganizational information systems: The operational impacts and obstacles for small and medium sized suppliers," International Journal of Production Economics, Elsevier, vol. 119(2), pages 228-239, June.
    2. Maiga, Adam S. & Nilsson, Anders & Ax, Christian, 2015. "Relationships between internal and external information systems integration, cost and quality performance, and firm profitability," International Journal of Production Economics, Elsevier, vol. 169(C), pages 422-434.
    3. Liao, Shu-Hsien & Kuo, Fang-I, 2014. "The study of relationships between the collaboration for supply chain, supply chain capabilities and firm performance: A case of the Taiwan׳s TFT-LCD industry," International Journal of Production Economics, Elsevier, vol. 156(C), pages 295-304.
    4. Danese, Pamela & Romano, Pietro & Formentini, Marco, 2013. "The impact of supply chain integration on responsiveness: The moderating effect of using an international supplier network," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 49(1), pages 125-140.
    5. Ng, Stephen C.H. & Rungtusanatham, Johnny M. & Zhao, Xiande & Lee, T.S., 2015. "Examining process management via the lens of exploitation and exploration: Reconceptualization and scale development," International Journal of Production Economics, Elsevier, vol. 163(C), pages 1-15.
    6. Lii, Peirchyi & Kuo, Fang-I, 2016. "Innovation-oriented supply chain integration for combined competitiveness and firm performance," International Journal of Production Economics, Elsevier, vol. 174(C), pages 142-155.
    7. Bouguerra, Abderaouf & Gölgeci, Ismail & Gligor, David M. & Tatoglu, Ekrem, 2021. "How do agile organizations contribute to environmental collaboration? Evidence from MNEs in Turkey," Journal of International Management, Elsevier, vol. 27(1).
    8. Hung M. Nguyen & George Onofrei & Dothang Truong & Simon Lockrey, 2020. "Customer green orientation and process innovation alignment: A configuration approach in the global manufacturing industry," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2498-2513, September.
    9. Paul E. Bierly III & Paula S. Daly, 2007. "Alternative Knowledge Strategies, Competitive Environment, and Organizational Performance in Small Manufacturing Firms," Entrepreneurship Theory and Practice, , vol. 31(4), pages 493-516, July.
    10. Yang, Qian & Zhao, Xiande, 2016. "Are logistics outsourcing partners more integrated in a more volatile environment?," International Journal of Production Economics, Elsevier, vol. 171(P2), pages 211-220.
    11. Giuseppe Marzo, 2013. "Some Unintended Consequences of Metaphors: The Case of Capital in Intellectual Capital Research," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2013(3-4), pages 111-140.
    12. Dai, Jing & Montabon, Frank L. & Cantor, David E., 2014. "Linking rival and stakeholder pressure to green supply management: Mediating role of top management support," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 71(C), pages 173-187.
    13. Caridi, Maria & Crippa, Luca & Perego, Alessandro & Sianesi, Andrea & Tumino, Angela, 2010. "Do virtuality and complexity affect supply chain visibility?," International Journal of Production Economics, Elsevier, vol. 127(2), pages 372-383, October.
    14. Prajogo, Daniel & Olhager, Jan, 2012. "Supply chain integration and performance: The effects of long-term relationships, information technology and sharing, and logistics integration," International Journal of Production Economics, Elsevier, vol. 135(1), pages 514-522.
    15. Chong, Alain Yee-Loong & Ooi, Keng-Boon & Sohal, Amrik, 2009. "The relationship between supply chain factors and adoption of e-Collaboration tools: An empirical examination," International Journal of Production Economics, Elsevier, vol. 122(1), pages 150-160, November.
    16. He, Yuanqiong & Lai, Kin Keung, 2012. "Supply chain integration and service oriented transformation: Evidence from Chinese equipment manufacturers," International Journal of Production Economics, Elsevier, vol. 135(2), pages 791-799.
    17. Brusset, Xavier, 2016. "Does supply chain visibility enhance agility?," International Journal of Production Economics, Elsevier, vol. 171(P1), pages 46-59.
    18. Cho, Young Sik & Linderman, Kevin, 2019. "Metacognition-based process improvement practices," International Journal of Production Economics, Elsevier, vol. 211(C), pages 132-144.
    19. Yusuf, Yahaya Y. & Gunasekaran, Angappa & Musa, Ahmed & Dauda, Mohammed & El-Berishy, Nagham M. & Cang, Shuang, 2014. "A relational study of supply chain agility, competitiveness and business performance in the oil and gas industry," International Journal of Production Economics, Elsevier, vol. 147(PB), pages 531-543.
    20. Lei Ji & Chunlin Yuan & Taiwen Feng & Chen Wang, 2020. "Achieving the environmental profits of green supplier integration: The roles of supply chain resilience and knowledge combination," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(4), pages 978-989, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:119:y:2009:i:2:p:328-346. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.