IDEAS home Printed from https://ideas.repec.org/a/bla/jscmgt/v54y2018i3p42-64.html
   My bibliography  Save this article

The Effects of Supply Chain Integration on the Cost Efficiency of Contract Manufacturing

Author

Listed:
  • Yoon Hee Kim
  • Tobias Schoenherr

Abstract

While the literature on supply chain integration (SCI) is proliferating, the link between SCI and a firm's contract manufacturing performance has not been investigated yet. To fill this gap in the literature, we investigate the effects of supply chain integration on contract manufacturing efficiency using the objective measure of return on contract manufacturing. Unlike prior studies, this research uses finer‐grained dimensions of SCI by not only differentiating between customer and supplier integration but also by separating integration activities depending on their purpose for either product development or process improvement, thus enhancing our understanding of the underlying theoretical dynamics by disentangling each dimension's respective contribution to a firm's contract manufacturing efficiency. Using archival survey data from 322 manufacturing firms collected by the Korea Productivity Center, we demonstrate that integration activities with customers and suppliers, depending on whether they focus on products or processes, generate contradicting outcomes in terms of return on contract manufacturing, thereby challenging the implicit assumption about the equivocal benefits of SCI across manufacturing systems. Furthermore, our findings substantiate the positive moderating effects of cross‐functional integration on the external integration–performance links by demonstrating the amplified effects, either positive or negative, of integration on return on contract manufacturing.

Suggested Citation

  • Yoon Hee Kim & Tobias Schoenherr, 2018. "The Effects of Supply Chain Integration on the Cost Efficiency of Contract Manufacturing," Journal of Supply Chain Management, Institute for Supply Management, vol. 54(3), pages 42-64, July.
    • Handle: RePEc:bla:jscmgt:v:54:y:2018:i:3:p:42-64
    DOI: 10.1111/jscm.12168
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/jscm.12168
    Download Restriction: no
    File URL: https://libkey.io/10.1111/jscm.12168?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dazhong Wu & Michael Tannen & Julius Anyu & Sergey Ivanov & Feng Xu, 2023. "Contract manufacturing, market competition, and labor productivity in US manufacturing industries," Operations Management Research, Springer, vol. 16(1), pages 377-390, March.
    2. Sunghee Lee & Jinsoo Park, 2021. "How Switching Costs with Process Monitoring and Operational Integration Affect Sustainable Supplier Relationship," Sustainability, MDPI, vol. 13(24), pages 1-12, December.
    3. Hong-Long Chen, 2021. "Impact of Industry 4.0 on Corporate Financial Performance: A Moderated Mediation Model," Sustainability, MDPI, vol. 13(11), pages 1-16, May.
    4. Hai Thanh Pham & Chiara Verbano, 2022. "Identification and Characterization of Supply Chain Operational Risk Profiles in Manufacturing Companies," Sustainability, MDPI, vol. 14(4), pages 1-17, February.
    5. Hassan, Nadir Munir & Abbasi, Muhammad Nauman, 2021. "A review of supply chain integration extents, contingencies and performance : A post Covid-19 review," Operations Research Perspectives, Elsevier, vol. 8(C).
    6. Chen, Hong Long, 2023. "Influence of supply chain risks on project financial performance," International Journal of Production Economics, Elsevier, vol. 260(C).

    More about this item

    Statistics

    Access and download statistics

    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:bla:jscmgt:v:54:y:2018:i:3:p:42-64. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1523-2409 .

    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.