Mediating and non-linear relationships among supply chain integration dimensions

Abstract

Purpose The purpose of this paper is to analyse the relationships between the different dimensions of supply chain integration (SCI). First, the sequence in which these dimensions should be implemented and some possible mediating effects are investigated. Then, relationships are examined more closely to observe whether they present more complex non-linear forms than those usually analysed. Design/methodology/approach Required information was gathered from a sample of 477 Spanish industrial companies (23.4 per cent response rate). PLS structural equation modelling was applied to capture non-linear relationships between SCI dimensions. Findings The results indicate that internal integration leads to external integration and that within external integration, information flow integration provides the basis for financial flow integration and physical flow integration. Thus, the results suggest the existence of a logical sequence to achieve SCI. In addition, clearly different non-linear relationships are observed between the analysed variables. Practical implications It seems that a sufficient minimum value has to be reached for internal integration to have a positive effect on external information and financial integration. In addition, a higher degree of information integration appears to facilitate financial and physical integration, although a medium degree of information integration results in a lower degree of financial integration. Therefore, managers should not expect that efforts made to increase one integration dimension will always produce the same effect on the other dimensions. Originality/value An empirical contribution is made to knowledge of the logical SCI sequence. This contribution is not only important for academia, but also for managers seeking to improve supply chain performance through integration.

RETRACTED: Ambidexterity and IT competence can improve supply chain flexibility? A resource orchestration approach

“…As to the explanatory power of the model tested, we should focus on the R 2 of Model 4 (0.235) and the R 2 of Model 5 (0.354). These values are acceptable compared to the R 2 values obtained in past empirical studies of SCM (Sacristán-Díaz et al, 2018). The values show that 26 good synchronization of SC ambidexterity and IT competence, which has been shown empirically to occur when IT competence is high, enables the firm to influence the level of SCF by more than 35%.…”

“…Moreover, by integrating IT competence into SC operations, firms can increase the difficulty of imitation due to the interconnectedness of the integrated resources (Oh et al, 2012). Prior research notes the importance of bundling IT competence with other capabilities to achieve a competitive advantage in SCM (Chiang et al, 2012;Sacristán-Díaz et al, 2018). In this view, ROT could be used to propose that firms' ability to translate SC ambidexterity into heightened SCF depends on their ability to leverage IT competence in conjunction with SC ambidexterity (Liu et al, 2016).…”

Supply chain management and market responsiveness: a simulation study

“…Thus, an SC’s level of responsiveness can increase or decrease as the production system moves downstream within the SC depending on the understanding of customer needs (Martinelli and Tunisini, 2019; Reichhart and Holweg, 2007; Truong et al , 2017). Customer-oriented firms are more willing to maximize their customer value through decreasing lead time, which, in turn, minimizes cost and inventory (Ghafour, 2018; Jüttner et al , 2010; Sacristán–Díaz et al , 2018). Effective and efficient sharing of required knowledge along the SC is crucial to decrease lead time, improve the logistical value and promote the firm’s dynamic capabilities and manufacturers’ responsiveness (Jüttner et al , 2010; Lee and Song, 2015; Luu, 2017; Sacristán–Díaz et al , 2018; Zhang et al , 2015).…”

“…Customer-oriented firms are more willing to maximize their customer value through decreasing lead time, which, in turn, minimizes cost and inventory (Ghafour, 2018; Jüttner et al , 2010; Sacristán–Díaz et al , 2018). Effective and efficient sharing of required knowledge along the SC is crucial to decrease lead time, improve the logistical value and promote the firm’s dynamic capabilities and manufacturers’ responsiveness (Jüttner et al , 2010; Lee and Song, 2015; Luu, 2017; Sacristán–Díaz et al , 2018; Zhang et al , 2015). Industrial firms use inventory management technology to share manufacturing knowledge but may ignore lead-time uncertainty, especially if demand is stable over long periods.…”

“…upstream and downstream) provides critical knowledge to partners along with the SC that promotes their dynamic capabilities to respond more proactively to potential customer needs (Luu, 2017; Tliche et al , 2019). Each partner along the SC must promote the end customer value from their respective viewpoints and integration between supply- and demand-side activities (Arslanagic–Kalajdzic et al , 2019; Jeong and Hong, 2007; Medrano and Olarte–Pascual, 2016) can provide optimal solutions for demand based on shared information (Engelseth and Wang, 2018; Sacristán–Díaz et al , 2018; Tliche et al , 2019). Downstream SC partners may be more sensitive to demand disruptions (Ivanov, 2018) and can contribute to firm responsiveness to customer needs to create near-optimal solutions to demand problems and create new markets (Stott et al , 2016; Tliche et al , 2019).…”