Supply chain integration and firm financial performance: A meta-analysis of positional advantage mediation and moderating factors

Chang, Woojung; Ellinger, Alexander E.; Kim, Kyoungmi; Franke, George R.

doi:10.1016/j.emj.2015.11.008

Cited by 191 publications

(217 citation statements)

References 87 publications

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“…Several empirical studies have shown the direct impact of SCC on financial performance [2,83,86,87]. However, Chang et al [88] argued that operational performance mediates the relationship between SCC and financial performance. These are seemingly inconsistent ideas.…”

Section: The Relationship Among Supply Chain Capability Operational mentioning

confidence: 99%

How do Partners Benefit from IT Use in Supply-Chain Management: An Empirical Study of Taiwan’s Bicycle Industry

Chen

et al. 2020

Sustainability

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To be sustainable and growing amongst uncertain environments and intensive global competition, supply-chain network leaders have established supply-chain management systems (SCMS) to leverage the resources and knowledge of their partners to achieve greater supply-chain capabilities (SCC) to respond to market changes and complexity. Although several studies have investigated the benefits to network leaders from these systems in various industries, little attention has been paid to the delivery of substantial benefits and advantages to its partners. Based on information technology (IT) applications and SCC literature, this paper proposes a model relating partners use of SCMS to benefits. Data from 168 partners using an SCMS implemented by a leading bicycle supply chain in Taiwan to test the hypotheses that SCC and operational performance has a mediating role linking SCMS use in order to affect a partner's performance. The results indicate that SCMS implementation has a significant impact on SCC, which in turn create a significant positive effect on operational (sustainable) performance, ultimately leading to improved growth rate and profitability in partners. Another interesting finding of the research is that SCMS cannot directly affect financial performance. In addition, from sustainable performance aspects, it is revealed that IT enables supply chain management (SCM) to achieve environmental value through information sharing (up and down), process integration (vertical and horizontal) and automation (i.e., planning, operation and control). This finding highlights the importance for maximizing benefits and sustainability for the whole supply-chain partners, the IT implementation must be integrated with the sustainable development goals and inserted in the eco-operation supply-chain platform process. The results also contribute to the debate in prior studies by disclosing why so many partners could not find to gain benefit from these IT implementations. Furthermore, this study represents the first attempt to examine how partners benefit from IT use in SCC for traditional industry.

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Section: The Relationship Among Supply Chain Capability Operational mentioning

confidence: 99%

How do Partners Benefit from IT Use in Supply-Chain Management: An Empirical Study of Taiwan’s Bicycle Industry

Chen

et al. 2020

Sustainability

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“…Ellinger et al [19] used Delphi-style opinion data to show that top SC companies yielded higher operating performance in sales, cost, and working capital. Chang et al [20] calculated meta-analytic mean correlations between SC indicators and various types of company performances. Their findings showed that the influence of internal integration on a firm's performance become more significant over time.…”

Section: Introductionmentioning

confidence: 99%

A Linkage Model of Supply Chain Operation and Financial Performance for Economic Sustainability of Firm

2017

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Abstract:Although several studies have explored the relationship between the operation and performance of a supply chain (SC), a general SC model cannot deliver the expected financial results at a company-wide level. In this paper, we argue that this cannot guarantee the maximization of a firm's overall value because short-term financial performance metrics do not reflect the risk to businesses and the invested capital. Owing to the varying natures of risk and the capital invested, firms with multiple divisions should assess each division separately, and the results can be compared for decisions concerning the allocation of the firm's capital and resources to maximize the overall value of its businesses. We propose a linkage model to consider operational activities and financial performance simultaneously in a firm's supply chain model. To exhibit the superiority of the proposed model that connects SC operation and financial indicators, we first compare the differences between models for maximizing profit and enterprise-wise economic value added (EVA) as objective functions. To examine uncertainty in the operational and financial parameters of the SC, the results of sensitivity analyses are then reported. Experimental results showed that our model, using the EVA approach, is more effective and superior in terms of maximizing the firm's overall value from the long-term perspective while satisfying the target values for financial ratios set by the firm's executives and shareholders for all periods, unlike the results of the general model.

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“…We admit that having a MWD may not just translate into superior business performance in this competitive environment where rare, inimitable, and unique resources and competences are necessary to at least survive in a given industry (Barney, 1991). In view of this, we follow the submissions offered by authors such as Huo (2012), Chang et al (2016), and Adams et al (2014) and argue that integration within SCs could be regarded as a distinct and rare capability that enables firms to realize superior business performance.…”

Section: H2mentioning

confidence: 99%

“…These descriptions of an organization and its design is not far away from the concept of internal SC integration which relates to the extent to which a firm "structures its organizational strategies, practices and processes into collaborative, synchronized processes, in order to fulfil its customers' requirements and effectively interact with its suppliers" (Flynn, Huo, & Zhao, 2010). Chang et al (2016) define internal supply chain integration as "a firm's coordination and collaboration of its organizational information, processes, and behaviours within its boundaries".…”

Section: Internal Supply Chain Integrationmentioning

confidence: 99%

The Implications of Managed-Workforce Diversity on Internal Supply Chain Integration and Business Performance

Rockson¹,

Annan²,

Muntaka³

2017

IJBM

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Today, workforce diversity management appears to attract strategic attention globally. Given this, a critical question that emerging research seeks to address is: is it even worth managing diverse workforce? Partly, this study addresses this question by examining the implications of managed-workforce diversity (MWD) on internal supply chain (SC) integration and business performance. Data was collected from one hundred and twenty six respondents using mainly questionnaires. The constructs employed to measure managed-workforce diversity, internal supply chain integration and business performance were together subjected to ANOVA, exploratory factor analysis (EFA) and then confirmatory factor analysis (CFA) and Structural Equation Model (SEM) in LISREL 8.5. Analysis of the data gathered indicated that MWD is most likely to be beneficial in enhancing internal SC integration and then SC responsiveness; with the former benefit acting as a conduit through which the latter benefit is experienced. The study therefore argues that effective workforce diversity management is one that creates and maintains MWD (which is a positive affective climate where employees do not feel intimidated, looked down upon, or discriminated against just because of background differences), all of which are necessary for driving internal SC integration, SC responsiveness, and financial outcomes. The managerial implications and the theoretical relevance of the study's findings are discussed in details.

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Supply chain integration and firm financial performance: A meta-analysis of positional advantage mediation and moderating factors

Cited by 191 publications

References 87 publications

How do Partners Benefit from IT Use in Supply-Chain Management: An Empirical Study of Taiwan’s Bicycle Industry

How do Partners Benefit from IT Use in Supply-Chain Management: An Empirical Study of Taiwan’s Bicycle Industry

A Linkage Model of Supply Chain Operation and Financial Performance for Economic Sustainability of Firm

The Implications of Managed-Workforce Diversity on Internal Supply Chain Integration and Business Performance

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