IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v146y2013i1p59-69.html
   My bibliography  Save this article

The relative influence of external versus internal integration on plant performance in China

Author

Listed:
  • Jayaram, Jayanth
  • Xu, Kefeng

Abstract

In this study, we first examine the relative impact of integration (both internal integration and external integration) on plant performance. Internal integration is operationalized as process integration which includes both information management and statistical process control. External integration is operationalized as firm processes that are aligned with those of customers and suppliers. Next, we show that by including the key contextual variables of firm size, clockspeed and TQM maturity, some of the relationships between integration and plant performance are modified suggesting that contingencies matter. Plant data from China are used to test our hypotheses. The results provide interesting insights of how plant level capabilities in the areas of information management, process management, and aligning with external entities enhance different dimensions of plant performance. Also, the contingency analyses results show that consideration of key contexts in China inform the extent to which external and internal integration mechanisms are effective. Implications for academic literature and policy making in China are offered.

Suggested Citation

  • Jayaram, Jayanth & Xu, Kefeng, 2013. "The relative influence of external versus internal integration on plant performance in China," International Journal of Production Economics, Elsevier, vol. 146(1), pages 59-69.
    • Handle: RePEc:eee:proeco:v:146:y:2013:i:1:p:59-69
    DOI: 10.1016/j.ijpe.2013.03.024
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527313001710
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2013.03.024?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
    ---><---

    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. Robb, David J. & Xie, Bin & Arthanari, Tiru, 2008. "Supply chain and operations practice and performance in Chinese furniture manufacturing," International Journal of Production Economics, Elsevier, vol. 112(2), pages 683-699, April.
    3. Sang Ko, Hoo & Nof, Shimon Y., 2012. "Design and application of task administration protocols for collaborative production and service systems," International Journal of Production Economics, Elsevier, vol. 135(1), pages 177-189.
    4. Zhao, Xiande & Li, Yina & Flynn, Barbara B., 2013. "The financial impact of product recall announcements in China," International Journal of Production Economics, Elsevier, vol. 142(1), pages 115-123.
    5. Albino, Vito & Pontrandolfo, Pierpaolo & Scozzi, Barbara, 2002. "Analysis of information flows to enhance the coordination of production processes," International Journal of Production Economics, Elsevier, vol. 75(1-2), pages 7-19, January.
    6. Su, Qiang & Shi, Jing-hua & Lai, Sheng-jie, 2008. "Study on supply chain management of Chinese firms from the institutional view," International Journal of Production Economics, Elsevier, vol. 115(2), pages 362-373, October.
    7. Margaret Peteraf & Randal Reed, 2007. "Managerial discretion and internal alignment under regulatory constraints and change," Strategic Management Journal, Wiley Blackwell, vol. 28(11), pages 1089-1112, November.
    8. Yeung, Jeff Hoi Yan & Selen, Willem & Zhang, Min & Huo, Baofeng, 2009. "The effects of trust and coercive power on supplier integration," International Journal of Production Economics, Elsevier, vol. 120(1), pages 66-78, July.
    9. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    10. Wu, Zai Bin & Yeung, Godfrey & Mok, Vincent & Han, Zhaozhou, 2007. "Firm-specific knowledge and technical efficiency of watch and clock manufacturing firms in China," International Journal of Production Economics, Elsevier, vol. 107(2), pages 317-332, June.
    11. Hau L. Lee & V. Padmanabhan & Seungjin Whang, 1997. "Information Distortion in a Supply Chain: The Bullwhip Effect," Management Science, INFORMS, vol. 43(4), pages 546-558, April.
    12. Kevin Crowston, 1997. "A Coordination Theory Approach to Organizational Process Design," Organization Science, INFORMS, vol. 8(2), pages 157-175, April.
    13. 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.
    14. Kamalini Ramdas & Robert E. Spekman, 2000. "Chain or Shackles: Understanding What Drives Supply-Chain Performance," Interfaces, INFORMS, vol. 30(4), pages 3-21, August.
    15. Pino G. Audia & Henrich R. Greve, 2006. "Less Likely to Fail: Low Performance, Firm Size, and Factory Expansion in the Shipbuilding Industry," Management Science, INFORMS, vol. 52(1), pages 83-94, January.
    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.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Li, Siyu & Huo, Baofeng & Han, Zhaojun, 2022. "A literature review towards theories and conceptual models of empirical studies on supply chain integration and performance," International Journal of Production Economics, Elsevier, vol. 250(C).
    2. Prajogo, Daniel & Toy, Jordan & Bhattacharya, Ananya & Oke, Adegoke & Cheng, T.C.E., 2018. "The relationships between information management, process management and operational performance: Internal and external contexts," International Journal of Production Economics, Elsevier, vol. 199(C), pages 95-103.
    3. Garrido-Vega, Pedro & Ortega Jimenez, Cesar H. & de los Ríos, José Luis Díez Pérez & Morita, Michiya, 2015. "Implementation of technology and production strategy practices: Relationship levels in different industries," International Journal of Production Economics, Elsevier, vol. 161(C), pages 201-216.
    4. Zeplin Jiwa Husada Tarigan & Hotlan Siagian & Ferry Jie, 2021. "Impact of Enhanced Enterprise Resource Planning (ERP) on Firm Performance through Green Supply Chain Management," Sustainability, MDPI, vol. 13(8), pages 1-20, April.
    5. Jacobs, Mark A. & Yu, Wantao & Chavez, Roberto, 2016. "The effect of internal communication and employee satisfaction on supply chain integration," International Journal of Production Economics, Elsevier, vol. 171(P1), pages 60-70.
    6. Iqbal, Tahir & Huq, Faizul & Bhutta, M. Khurrum S., 2018. "Agile manufacturing relationship building with TQM, JIT, and firm performance: An exploratory study in apparel export industry of Pakistan," International Journal of Production Economics, Elsevier, vol. 203(C), pages 24-37.
    7. Bouzekri, Hamza & Bara, Najat & Alpan, Gülgün & Giard, Vincent, 2022. "An integrated Decision Support System for planning production, storage and bulk port operations in a fertilizer supply chain," International Journal of Production Economics, Elsevier, vol. 252(C).
    8. Huo, Baofeng & Gu, Minhao & Jiang, Bin, 2018. "China-related POM research: Literature review and suggestions for future research," International Journal of Production Economics, Elsevier, vol. 203(C), pages 134-153.

    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. Vijayasarathy, Leo R., 2010. "Supply integration: An investigation of its multi-dimensionality and relational antecedents," International Journal of Production Economics, Elsevier, vol. 124(2), pages 489-505, April.
    2. Jacobs, Mark A. & Yu, Wantao & Chavez, Roberto, 2016. "The effect of internal communication and employee satisfaction on supply chain integration," International Journal of Production Economics, Elsevier, vol. 171(P1), pages 60-70.
    3. Rameshwar Dubey & David J. Bryde & Cyril Foropon & Gary Graham & Mihalis Giannakis & Deepa Bhatt Mishra, 2022. "Agility in humanitarian supply chain: an organizational information processing perspective and relational view," Annals of Operations Research, Springer, vol. 319(1), pages 559-579, December.
    4. Muhammad Usman Ahmed & Mark Pagell & Mehmet Murat Kristal & Thomas F. Gattiker, 2019. "Micro-Foundations of Supply Chain Integration: An Activity-Based Analysis," Logistics, MDPI, vol. 3(2), pages 1-17, March.
    5. Bimpizas-Pinis, Meletios & Calzolari, Tommaso & Genovese, Andrea, 2022. "Exploring the transition towards circular supply chains through the arcs of integration," International Journal of Production Economics, Elsevier, vol. 250(C).
    6. Yu, Wantao & Jacobs, Mark A. & Salisbury, W. David & Enns, Harvey, 2013. "The effects of supply chain integration on customer satisfaction and financial performance: An organizational learning perspective," International Journal of Production Economics, Elsevier, vol. 146(1), pages 346-358.
    7. Sachin S. Kamble & Angappa Gunasekaran & Nachiappan Subramanian & Abhijeet Ghadge & Amine Belhadi & Mani Venkatesh, 2023. "Blockchain technology’s impact on supply chain integration and sustainable supply chain performance: evidence from the automotive industry," Annals of Operations Research, Springer, vol. 327(1), pages 575-600, August.
    8. Jafari, Hamid & Eslami, Mohammad H. & Paulraj, Antony, 2022. "Postponement and logistics flexibility in retailing: The moderating role of logistics integration and demand uncertainty," International Journal of Production Economics, Elsevier, vol. 243(C).
    9. Prajogo, Daniel & Chowdhury, Mesbahuddin & Yeung, Andy C.L. & Cheng, T.C.E., 2012. "The relationship between supplier management and firm's operational performance: A multi-dimensional perspective," International Journal of Production Economics, Elsevier, vol. 136(1), pages 123-130.
    10. Oosterhuis, Marian & Molleman, Eric & van der Vaart, Taco, 2013. "Differences in buyers’ and suppliers’ perceptions of supply chain attributes," International Journal of Production Economics, Elsevier, vol. 142(1), pages 158-171.
    11. Lockström, Martin & Lei, Liu, 2013. "Antecedents to supplier integration in China: A partial least squares analysis," International Journal of Production Economics, Elsevier, vol. 141(1), pages 295-306.
    12. Huo, Baofeng & Han, Zhaojun & Zhao, Xiande & Zhou, Honggeng & Wood, Craig H. & Zhai, Xin, 2013. "The impact of institutional pressures on supplier integration and financial performance: Evidence from China," International Journal of Production Economics, Elsevier, vol. 146(1), pages 82-94.
    13. 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.
    14. Lee, Peter K.C. & Yeung, Andy C.L. & Edwin Cheng, T.C., 2009. "Supplier alliances and environmental uncertainty: An empirical study," International Journal of Production Economics, Elsevier, vol. 120(1), pages 190-204, July.
    15. Huo, Baofeng & Gu, Minhao & Jiang, Bin, 2018. "China-related POM research: Literature review and suggestions for future research," International Journal of Production Economics, Elsevier, vol. 203(C), pages 134-153.
    16. Prajogo, Daniel & Toy, Jordan & Bhattacharya, Ananya & Oke, Adegoke & Cheng, T.C.E., 2018. "The relationships between information management, process management and operational performance: Internal and external contexts," International Journal of Production Economics, Elsevier, vol. 199(C), pages 95-103.
    17. Lai, Kee-hung & Wong, Christina W.Y. & Lam, Jasmine Siu Lee, 2015. "Sharing environmental management information with supply chain partners and the performance contingencies on environmental munificence," International Journal of Production Economics, Elsevier, vol. 164(C), pages 445-453.
    18. Mennens, Kars & van Gils, Anita & Odekerken - Schröder, Gaby & Letterie, Wilko, 2016. "Exploring Antecedents of Service Innovation Excellence in Manufacturing SMEs," Research Memorandum 025, Maastricht University, Graduate School of Business and Economics (GSBE).
    19. Nagy, A., 2009. "Adoption of interorganizational information systems : The adoption position model," Other publications TiSEM af471297-bf03-43bf-88c1-4, Tilburg University, School of Economics and Management.
    20. Li, Ying & Dai, Jing & Cui, Li, 2020. "The impact of digital technologies on economic and environmental performance in the context of industry 4.0: A moderated mediation model," International Journal of Production Economics, Elsevier, vol. 229(C).

    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:146:y:2013:i:1:p:59-69. 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.