Internal and external integration of assembly manufacturing activities

Abstract

This analysis deals with the integration activities of leading Spanish assembly manufacturing firms. It is based on data from the second International Manufacturing Strategy Survey (or IMSS-II). Results show that: there is a greater correlation between strategic goals and internal integration programs than between strategic goals and external integration programs; forward and backward external integration programs are of similar importance; and logistical integration programs do provide a competitive and economic advantage although still at a lowpotential level.

Linking Strategy, Structure, Process, and Performance in Integrated Logistics

“…The need to reduce redundancies, achieve greater economies of scale, and leverage differentiated core competencies in logistics operations is not limited to internal activities alone. External integration synchronizes the core competencies of selected supply chain participants to jointly achieve improved service capabilities at lower total supply chain cost (Bowersox, Closs, and Cooper 2002;Forza 1996;Stank, Keller, and Daugherty 2001;Vargas, Cardenas, and Matarranz 2000). One goal of external integration is to outsource specialized activities that previously were developed and performed internally to external supply chain partners that can perform an activity or process more cost effectively.…”

Logistics-Production, Logistics-Marketing and External Integration: Their Impact on Performance

“…Groves & Valsamakis (1998) analysed the effect of relationships' management on firms' performance. Stank, Crum & Arango (1999) Finally, regarding the studies which consider the effect of both levels of integration (internal and external) we have to mention: Vargas, Cardenas & Matarranz (2000), Stank, Keller & Daugherty (2001) and Gimenez & Ventura (2002). Stank, Keller & Daugherty (2001) and Gimenez & Ventura (2002) explored the contribution of both levels of integration simultaneously, while Vargas, Cardenas & Matarranz (2000) considered both levels of integration independently.…”

Competitive Advantage as Relationship Mediation between Supply Chain Integration and Fishery Company Performance In Southeast Sulawesi (Indonesia)

“…Several other findings are different from the above, though [2,17] where it is found that external integration cannot bring about competitiveness and does not have significant impact on the competitiveness of small companies. External integration to suppliers does not have significant impact on firm performance [3] while internal integration to customer does not have significant impact on the performance of delivery [1].…”

“…Then, good integration of external supply chain would have significant impact on the improvement of competitiveness [7,11] and firm performance [1,16]. However, different from the findings above, [17] finds that internal and external integration of supply chain do not bring about competitive advantage and improvement in performance for small firms [2].…”

“…Collaboration is a key element of supply chain integration because strategic collaboration is required to enable cross-functional communication and joint efforts [6,22,23]. Supply chain integration is required "internally" within and across functions and "externally" across suppliers and customers [1,7,12,17,24]. The integration of all internal functions from materials management to production, sales, and distribution is paramount to meeting customer requirements at the lowest total system cost.…”