Demand-pull vs supply-push strategy: the effects of organizational structure on supply chain integration and response capabilities

Abstract

PurposeRapid response is often the cornerstone of success in many industries, especially manufacturing. In the authors’ opinion, organizational structure will also affect the construction of a fast-response supply chain system. The main purpose of this research examines whether different levels of organizational structure have different effects on the relationship between external integration and firm performance.Design/methodology/approachThis study applied questionnaires to collect data. This study collected 818 questionnaires from manufacturers in China, Hong Kong and Taiwan to verify our proposed model using structural equation modeling.FindingsResults show that response speed perfectly mediates the relationship between external integration and firm performance. Different levels of organizational structure will also affect external integration. Strict organizational structure requires customer integration, while loose organizational structure requires supplier integration to quickly meet customer needs.Practical implicationsCompanies can probably determine whether their organizational structure is higher or lower than that of their competitors. If firms can determine that their organization structure is high or low, they can adopt suitable external integrations to enhance quick response and operational performance.Originality/valueIn the relationship between supply chain integration and performance, we consider a mediating variable and moderating variable together. Results explain the reason that the relationship between supply chain integration and performance are inconsistent in previous studies. We have addressed external integration in alignment with organizational structure to provide better service and enhance performance by providing empirical evidence.

The contingent effect of supply chain strategies on the relationship between supply chain integration and operational performance in manufacturing context

“…Flynn et al. (2010) and Chiang and Huang (2021) claimed that (II) removes functional barriers and enables cooperation and sharing of knowledge and information between internal functional areas. Thus, it improves product and process designs, removes waste and redundancy and unifies objectives.…”

“…Previous studies identified that (II) is critical to successfully meeting customer requirements at the lowest total system cost (Boon-itt and . Flynn et al (2010) and Chiang and Huang (2021) claimed that (II) removes functional barriers and enables cooperation and sharing of knowledge and information between internal functional areas. Thus, it improves product and process designs, removes waste and redundancy and unifies objectives.…”

Development of Concrete Material Technology in the context of supply - demand based on geographical aspects

“…Technological development comes from innovation, which can be traced to either a customer's initial idea or a supplier's suggestions that differentiate the two strategies of technological development: supply-push and demand-pull [8]. The supply-push model means that a technology holder or a supplier initiates the technology transfer and then pushes technology toward the market.…”

The manufacturing adaptive capabilities of firms: the role of technology, market and management systems-related adaptive capabilities

“…Indeed, managers perceive organizational effectiveness as an important outcome and variable proxy for organizational performance. In addition, organizational effectiveness is perceived as an ongoing essential function of the fit between organizational factors like structure, process, and external environments (Chiang and Huang, 2021). In this way, organizational effectiveness helps managers to assess how an organization is achieving its goals and uses its resources most effectively to continuously adapt effectively to its external environment.…”