The impact of product complexity and variety on supply chain integration

Abstract

Purpose The purpose of this paper is to examine the antecedents of supply chain integration (SCI) at the product level. More specifically, it aims to show the relationship between product-level characteristics (i.e. product complexity and product variety) and different dimensions of SCI (i.e. internal, supplier and customer integration). Design/methodology/approach A survey-based research design is developed to measure different dimensions of SCI, product complexity and product variety. The authors use structural equation modelling to test the related hypotheses. Findings This research shows that internal integration is an enabler to supplier and customer integration. The results also show that under high product complexity, firms tend to implement internal and supplier integration, while product complexity does not have a direct impact on customer integration. Product variety is confirmed to be positively related to all dimensions of SCI. Originality/value This paper contributes to the SCI literature by first, providing empirical evidence which supports the study of the product design-supply chain interface; and second, exploring the relationships between product complexity, variety and internal, supplier and customer integration based on a governance view.

Managing Product Complexity and Variety for Operational Performance through an Integrated Green Supply Chain

“…It has been observed that integrated green supply chain results in operational performance of the focal firm (Shou et al, 2017;Khan et al, 2008). Khan et al (2008) further discussed that the product design supply interface contributes to better integration to make the supply chain management smooth.…”

“…Content validity was ensured with a careful assessment of the scale items adopted from previous studies (Shou et al, 2017;Khan et al, 2008;Jacobs et al, 2007;Bortolotti et al, 2013). A pre-test was conducted with expert opinions of two academic scholars from two universities of Sri Lanka for face validity and a pilot test was carried for 30 respondents of merchandisers in the apparel sector.…”

“…Governance theory explains a setting with a plurality of actors and no formal control system that can dictate the relationships between the actors. Supply chain performance is undoubtedly relying on the extent to which members of the network with diversified knowledge are integrated (Shou, Li, Park, Kang, & Kang, 2017). Yet, the impact of supply chain integration on operational performance of firms that are having a complex and a variety of product portfolios is not empirically verified.…”

Research on the Construction and Elements of Integrated Supply Chain Management—An Example of P.G. Logistics Group

“…Supply chain integration refers to the degree to which an organization's activities are integrated with the activities of its suppliers, customers, and other firms in its supply chain [1]. Due to the gradual increase of outsourcing business proportion, the globalization of the supply chain and the shortening of the product life cycle, the production and operation activities of enterprises begin to face higher risks [9].…”

“…Supply chain integration refers to the degree to which an organization's activities are integrated with the activities of its suppliers, customers, and other firms in its supply chain [1]. Integration makes the upstream, middle and downstream enterprises reach to the logistics enterprises.…”