The effects of internal versus external integration practices on time‐based performance and overall firm performance

Abstract

This paper examines the effects of integration practices on time-based performance and on overall firm performance (financial and market share). Integration practices are grouped into two categories: (1) external strategic design integration, which reaches across firm boundaries to involve suppliers and customers and (2) internal design-process integration, which comprises more tactically oriented, integration practices that match design requirements and process capabilities. First, regression results show that both internal and external integration are related to time-based performance, which in turn is related to firm performance. Thus, two indirect routes to firm performance are identified. Second, hierarchical regression reveals that integration directly affects firm performance even after time-based performance is accounted for. Finally, we found that the interaction of internal and external integration is significantly related to both market share and financial performance (after controlling for all other effects). This latter result suggests that the joint use of external and internal integration practices has a synergistic effect on firm performance. #

The Effects of Organizational Structure on Time-Based Performance: An Empirical Study in Chinese Automobile Industry

“…Researchers have considered different aspects of time-based performance relative to various stages of the overall value delivery cycle and have proposed several measures to evaluate them. The three most commonly discussed and also deemed key measures are time to market, time to product, and customer responsiveness [1] . Their items, definitions and literature adapted from are contained in Table 1.…”

“…More and more companies have concentrated on employing time-based strategies to increase product development and launch speeds, or improve manufacturing, delivery, and/or compress customer response time [1] . Several researchers in the innovation and organizational theory literature argue that initiating and implementing radical change to improve competitive capabilities can be facilitated or hindered by the firm's structure design [2] .…”

Examining Value Co-Creation in Healthcare Purchasing: a Supply Chain View

“…Literature supports the positive influence of SC integrative practices in creating a synchro nous conducive environment and in maintaining trust and connectedness, through goal alignment along the value chain and enhancing performance, both upstream and down stream with suppliers and customers respectively (Frohlich, Westbrook 2001;Drickhamer 2002;Rosenzweig et al 2003;Droge et al 2004). Kim and Narasimhan (2002) supports such claims about SC integration and indicate that it enhan ces the linkage between the focal firm and network actors through integration of the relationships, activities, processes and strategies, which in other words from the viewpoint of DART can be said to represent SC transparency reflected through alignment of motivation and goals.…”

Supply chain management resources, capabilities and execution

“…Internal SCM resources comprise human and financial resources as well as 'soft factors' such as mutual organisational understanding, trust and commitment (Mentzer et al 2001;Olhager 2002;Hsuan Mikkola and Skjøtt-Larsen 2004;Yeung et al 2009), whereas joint SCM resources refer to long-term relationships, shared visions and goals, shared control systems, joint project groups, trust, information sharing about forecasts and inventory status, product development, leadership, organisational culture, mutual dependency, and profit and risk sharing (Bechtel and Jayaram 1997;Cooper, Lambert, and Pagh 1997;Fawcett and Magnan 2001;Mentzer et al 2001;Droge, Jayaram, and Vickery 2004;Cousins and Menguc 2006;Das 2006;Cigolini and Rossi 2008;Palomero and Chalmeta 2012;Alfalla-Luque, Medina-Lopez, and Dey 2013;Dey and Cheffi 2013). Kotzab et al (2011) argue that the putting in place of internal resources -which they label conditions -is a prerequisite for the existence of joint resources.…”