Supply chain integration and product modularity

Antonio K.W. Lau · Richard C.M. Yam · Esther P.Y. Tang

166 citations0/0 files storedInternational Journal of Operations & Production Management

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Product Development and Customization Quality and Supply Management Sustainable Supply Chain Management

Abstract

Purpose While the beneficial impact of supply chain integration (SCI) and modular product design are generally acknowledged, few empirical studies have examined how an organization can achieve better performance through SCI with modular product design. The purpose of this paper is to examine the relationship between SCI and modular product design, as well as their impact on product performance. Design/methodology/approach By surveying 251 manufacturers in Hong Kong, structural equation modelling is used to test the research constructs and the hypothesized model. Findings The results confirm that information sharing, product co‐development and organizational coordination are crucial organizational processes within SCI. Companies that have high levels of product modularity appear to be good at product co‐development and organizational coordination directly and at information sharing indirectly. Furthermore, companies that have high levels of product co‐development or product modularity appear to have better product performance. Research limitations/implications This paper theoretically and empirically identifies three specific organizational processes within SCI (information sharing, product co‐development and organizational coordination), which affect modular product design and product performance. These more specific findings were previously absent from the literature. However, the study is limited to the cross‐sectional nature of a survey study, the operationalization of SCI and product modularity, and the nature of the product types. Originality/value This paper empirically examines the relationships between SCI and product modularity, which has seldom been attempted in previous research. It clearly identifies exactly which processes within SCI are directly and indirectly related to product modularity.

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References

1998Principles and Practice of Structural Equation Modeling 1990Comparative fit indexes in structural models.1989Structural Equations with Latent Variables 1991Structural Equations with Latent Variables.1977Estimating Nonresponse Bias in Mail Surveys 1990Architectural Innovation: The Reconfiguration of Existing Product Technologies and the Failure of Established Firms 1976Educational Organizations as Loosely Coupled Systems 2015A Beginner's Guide to Structural Equation Modeling

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2017Supply chain integration: value creation through managing inter-organizational learning 2011Structural Equation Modelling of lean manufacturing practices 2014Theoretical perspectives on information sharing in supply chains: a systematic literature review and conceptual framework 2020Impact of information technology on supply chain integration and company performance: evidence from cross-border e-commerce companies in China 2014A Meta‐Analysis of the “Purchasing and Supply Management Practice–Performance Link”

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