Supply chain integration and performance: the moderating effect of supply complexity

Taco van der Vaart · Dirk Pieter van Donk

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

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Quality and Supply Management Supply Chain and Inventory Management Sustainable Supply Chain Management

Abstract

Purpose The purpose of this paper is to investigate the effectiveness of supply chain integration in different contexts. More specifically, it aims to show that supply chain integration is only effective in buyer‐supplier relationships characterised by high supply complexity. Design/methodology/approach A survey‐based research design is developed to measure different dimensions or aspects of supply chain integration and supply complexity. Data were collected among manufacturers in The Netherlands and Spain. Findings This research shows that supply chain integration increases performance if supply complexity is high, while a very limited or no influence of supply chain integration can be detected in case of low supply complexity. The results also show that in high supply complexity environments the use of structured communication means to achieve supply chain integration has a negative effect on cost performance. Research limitations/implications The limited sample size prohibits estimating and testing of more comprehensive models of the relationship between supply chain integration and performance. Specifically, the authors were not able to further investigate how different supply chain integration dimensions are inter‐related and mutually reinforce one another to improve performance. Practical implications The main managerial lesson is that, in contrast to what has been written in many books and other popular publications, high levels of supply chain integration are only necessary in environments characterised by high supply complexity. Originality/value This study helps to better understand context in supply chain management research. Specifically, it investigates the moderating effect of supply complexity on the integration‐performance relationship, a topic suggested by Bozarth et al. as a line for further research.

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References

1977Estimating Nonresponse Bias in Mail Surveys 1977Estimating Nonresponse Bias in Mail Surveys 1994Characteristics of partnership success: Partnership attributes, communication behavior, and conflict resolution techniques 2009The impact of supply chain integration on performance: A contingency and configuration approach 1997What is the Right Supply Chain for Your Product 2001Arcs of integration: an international study of supply chain strategies 2004Towards a theory of supply chain management: the constructs and measurements 1985Restoring Our Competitive Edge: Competing through Manufacturing.

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2017Enhancing supply chain performance through supplier social sustainability: An emerging economy perspective 2017Leveraging the impact of supply chain integration through information technology 2014Reexamining supply chain integration and the supplier's performance relationships under uncertainty 2015Green supply chain management enablers: Mixed methods research 2014Production and supply network strategies within the fashion industry

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