Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

The Intermediary Role of Supply Chain Capability Between Supply Chain Integration and Firm Performance


Affiliations
1 Dalian Maritime University, China
2 Regent University College of Science and Technology, Ghana
     

   Subscribe/Renew Journal


The quest to gain competitive advantage and improve performance has triggered the need for managers of firms to look for new strategies to outwit competitors. This study investigates the potential influence of supply chain integration on the development of capabilities and firm performance. We analysed the data collected from 275 supply chain managers of wholesale firms in Ghana with SmartPLS 3. We discovered that firms which share knowledge, skills, information, and resources with supply chain partners develop supply chain capabilities and improve performance. We will discuss the contributions and the limitations in the content.

Keywords

Supply Chain Capabilities, Firm Performance, Supply Chain Integration.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Alfalla-Luque, R., Marin-Garcia, J. A., & Medina-Lopez, C. (2015). An analysis of the direct and mediated effects of employee commitment and supply chain integration on organisational performance. International Journal of Production Economics, 162, 242-257.
  • Amad, L. C., Hamid, A. B. A., Salleh, N. M., & Choy, C.S. (2008). Adapting buyer-supplier relationship practices in the local industry. Asian Academy of Management Journal, 13(2).
  • Amit, R., & Schoemaker, P. J. (1993). Strategic assets and organizational rent. Strategic Management Journal, 14(1), 33-46.
  • Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modelling in practice: A review and recommended two-step approach. Psychological Bulletin, 103(3), 411.
  • Armistead, C., & Mapes, J. (1993). The impact of supply chain integration on operating performance. Logistics Information Management, 6(4), 9-14.
  • Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.
  • Bharadwaj, A. S. (2000). A resource-based perspective on information technology capability and firm performance: An empirical investigation. MIS quarterly, 169-196.
  • Bowersox, D. J., Closs, D. J., & Stank, T. P. (1999). 21stcentury logistics: Making supply chain integration a reality.
  • Chen, H., Daugherty, P. J., & Roath, A. S. (2009).Defining and operationalising supply chain process integration.Journal of Business Logistics, 30(1), 63-84.
  • Collis, D. J. (1994). Research note: How valuable are organizational capabilities? Strategic Management Journal, 15(S1), 143-152.
  • Crainic, T. G., & Laporte, G. (2016). Transportation in supply chain management: Recent advances and research prospects. International Journal of Production Research, 54(2), 403-404.
  • Creswell, J. W., & Clark, V. L. P. (2017). Designing and conducting mixed methods research. Sage publications.
  • Dierickx, I., & Cool, K. (1989). Asset stock accumulation and sustainability of competitive advantage.Management Science, 35(12), 1504-1511.
  • Droge, C., Jayaram, J., & Vickery, S. K. (2004). The effects of internal versus external integration practices on time-based performance and overall firm performance.Journal of Operations Management, 22(6),557-573.
  • Dubey, R., Gunasekaran, A., & Childe, S. J. (2018).Big data analytics capability in supply chain agility: the moderating effect of organisational flexibility.Management Decision.
  • Erna, E., Surachman, S., Sunaryo, S., & Djajuli, A.(2019). Integration between radical innovation and incremental innovation to expedite supply chain performance through collaboration and open-innovation: A case study of Indonesian logistic companies. Uncertain Supply Chain Management, 7(2), 191-202.
  • Esper, T. L., Fugate, B. S., & Davis-Sramek, B. (2007).Logistics learning capability: sustaining the competitive advantage gained through logistics leverage. Journal of Business Logistics, 28(2), 57-82.
  • F. Hair, Jr, J., Sarstedt, M., Hopkins, L., & G. Kuppelwieser, V. (2014). Partial least squares structural equation modelling (PLS-SEM) An emerging tool in business research. European Business Review, 26(2), 106-121.
  • Flynn, B. B., Huo, B., & Zhao, X. (2010). The impact of supply chain integration on performance: A contingency and configuration approach. Journal of Operations Management, 28(1), 58-71.
  • Frohlich, M. T., & Westbrook, R. (2001). Arcs of integration: An international study of supply chain strategies.Journal of operations management, 19(2),185-200.
  • Fynes, B., Voss, C., & de BĂșrca, S. (2005). The impact of supply chain relationship quality on quality performance. International Journal of Production Economics, 96(3), 339-354.
  • Gerbing, D. W., & Anderson, J. C. (1988). An updated paradigm for scale development incorporating unidimensionality and its assessment. Journal of MarketingResearch, 25(2), 186-192.
  • Gligor, D. M., & Holcomb, M. C. (2012). Antecedents and consequences of supply chain agility: Establishing the link to firm performance. Journal of Business Logistics, 33(4), 295-308.
  • Kaur, H. (2018). An impact of life cycle sustainability on the shareholder value of a firm: An analysis of interaction effects. Journal of Supply Chain Management Systems, 7(4).
  • Henseler, J., Ringle, C. M., & Sinkovics, R. R. (2009).The use of partial least squares path modelling in international marketing. In New Challenges to International Marketing (pp. 277-319). Emerald Group Publishing Limited.
  • Huo, B., Han, Z., Chen, H., & Zhao, X. (2015). The effect of high-involvement human resource management practices on supply chain integration. International Journal of Physical Distribution & Logistics Management, 45(8), 716-746.
  • Huo, B., Qi, Y., Wang, Z., & Zhao, X. (2014). The impact of supply chain integration on firm performance: The moderating role of competitive strategy. Supply Chain Management: An International Journal, 19(4), 369-384.
  • Ju, K. J., Park, B., & Kim, T. (2016). The causal relationship between supply chain dynamic capabilities, technological innovation, and operational performance.Management and Production EngineeringReview, 7(4), 6-15.
  • Kanda, A., & Deshmukh, S. G. (2008). Supply chain coordination: perspectives, empirical studies, and research directions. International Journal of Production Economics, 115(2), 316-335.
  • Kim, S. W., & Narasimhan, R. (2002). Information system utilisation in supply chain integration efforts. International Journal of Production Research, 40(18), 4585-4609.
  • Koufteros, X., Vonderembse, M., & Jayaram, J. (2005).Internal and external integration for product development: the contingency effects of uncertainty, equivocality, and platform strategy. Decision Sciences, 36(1), 97-133.
  • Lee, H. L., Padmanabhan, V., & Whang, S. (1997).Information distortion in a supply chain: The bullwhip effect. Management Science, 43(4), 546-558.
  • Leuschner, R., Rogers, D. S., & Charvet, F. F. (2013). A meta-analysis of supply chain integration and firm performance.Journal of Supply Chain Management, 49(2), 34-57.
  • Lin, R. J., Chen, R. H., & Nguyen, T. H. (2011). Green supply chain management performance in the automobile manufacturing industry under uncertainty. ProcediaSocial and Behavioral Sciences, 25, 233-245.
  • Lu, Y., & Ram, K. (2011). Ramamurthy understanding the link between Information Technology capability and organisational agility: An empirical examination. Mis Quarterly, 35(4), 931-954.
  • Lynch, A. J., & Mosbah, S. M. (2017). Improving local measures of sustainability: A study of built-environment indicators in the United States. Cities, 60, 301313. Supply Chain Management, 7(3), 553-566.
  • Makadok, R. (2001). Toward a synthesis of the resource-based and dynamic-capability views of rent creation. Strategic Management Journal, 22(5), 387-401.
  • Morash, E. A. (2001). Supply chain strategies, capabilities, and performance. Transportation Journal, 37-54.
  • Naway, F. A., Suking, A., Haris, I., & Rahmat, A. (2018).The quality approach in the development of a management information system in higher education. Jurnal Manajemen, 22(1), 104-114.
  • Naway, F., & Rahmat, A. (2019). The mediating role of technology and logistic integration in the relationship between supply chain capability and supply chain operational performance. Uncertain Supply Chain Management, 7(3), 553-566.
  • Nyadzayo, M. W., Matanda, M. J., & Rajaguru, R. (2018).The determinants of franchise brand loyalty in B2B markets: An emerging market perspective. Journal of Business Research, 86, 435-445.
  • Olavarrieta, S., & Ellinger, A. E. (1997). Resource-based theory and strategic logistics research. International Journal of Physical Distribution & Logistics Management, 27(9/10), 559-587.
  • Omar, R., Ramayah, T., Lo, M. C., Sang, T. Y., & Siron, R. (2010). Information sharing, information quality, and usage of information technology (IT) tools in Malaysian organisations. African Journal of Business Management, 4(12), 2486-2499.
  • Pagell, M. (2004). Understanding the factors that enable and inhibit the integration of operations, purchasing, and logistics. Journal of Operations Management, 22(5), 459-487.
  • Peteraf, M. A. (1993). The cornerstones of competitive advantage: A resource-based view. Strategic Management Journal, 14(3), 179-191.
  • Potter, A., Childerhouse, P., Banomyong, R., & Supatn, N. (2011). Developing a supply chain performance tool for SMEs in Thailand. Supply Chain Management: An International Journal.
  • Prajogo, D., Oke, A., & Olhager, J. (2016). Supply chain processes: Linking supply logistics integration, supply performance, lean processes, and competitive performance. International Journal of Operations & Production Management, 36(2), 220-238.
  • Rai, A., Patnayakuni, R., & Seth, N. (2006). Firm performance impacts of digitally enabled supply chain integration capabilities. MIS Quarterly, 225-246.
  • Rodgers, W., & Pavlou, P. (2003). Developing a predictive model: a comparative study of the partial least squares vs maximum likelihood techniques. Riverside: Graduate School of Management, University of California, Riverside.
  • Romano, P. (2003). Co-ordination and integration mechanisms to manage logistics processes across supply networks. Journal of Purchasing and Supply Management, 9(3), 119-134.
  • Rosenzweig, E. D., Roth, A. V., & Dean Jr, J. W. (2003).The influence of an integration strategy on competitive capabilities and business performance: An exploratory study of consumer products manufacturers. Journal of Operations Management, 21(4), 437-456.
  • Shi, P., Yan, B., Shi, S., & Ke, C. (2015). A decision support system to select suppliers for a sustainable supply chain based on a systematic DEA approach. Information Technology and Management, 16(1), 39-49.
  • Singhal, P., Agrawal, R., & Sharma, V. (2016). Significance of Supply chain management in public distribution system.Journal of Supply Chain Management Systems, 5(1).
  • Singhry, H. B. (2015). Effect of supply chain technology, supply chain collaboration, and innovation capability on supply chain performance of manufacturing companies.Journal of Business Studies Quarterly, 7(2), 258.
  • Stevens, G. C., & Johnson, M. (2016). Integrating the supply chain 25 years on. International Journal of Physical Distribution & Logistics Management, 46(1), 19-42.
  • Sudman, S., & Bradburn, N. M. (1982). Asking questions: A practical guide to questionnaire design. San Francisco, CA: Jossey-Bass.
  • Sukwadi, R., Wee, H. M., & Yang, C. C. (2013). Supply chain performance based on the lean-agile operations and supplier-firm partnership: An empirical study on the garment industry in Indonesia. Journal of Small Business Management, 51(2), 297-311.
  • Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533.
  • Troyer, C., & Cooper, R. (1995). Smart moves in supply chain integration. Transportation & Distribution.
  • Wang, G., Gunasekaran, A., Ngai, E. W., & Papadopoulos, T. (2016). Big data analytics in logistics and supply chain management: Certain investigations for research and applications. International Journal of Production Economics, 176, 98-110.
  • Wilding, R., Wagner, B., Gligor, D. M., & Holcomb, M.C. (2012). Understanding the role of logistics capabilities in achieving supply chain agility: A systematic literature review. Supply Chain Management: An International Journal.
  • Wu, F., Yeniyurt, S., Kim, D., & Cavusgil, S. T. (2006).The impact of information technology on supply chain capabilities and firm performance: A resourcebased view. Industrial Marketing Management, 35(4), 493-504.
  • Wu, S. P. J., Straub, D. W., & Liang, T. P. (2015). How information technology governance mechanisms and strategic alignment influence organisational performance: Insights from a matched survey of business and IT managers. Mis Quarterly, 39(2), 497-518.
  • Xu, D., Huo, B., & Sun, L. (2014). Relationships between intra-organizational resources, supply chain integration, and business performance: An extended resource-based view. Industrial Management & Data Systems, 114(8), 1186-1206.

Abstract Views: 188

PDF Views: 0




  • The Intermediary Role of Supply Chain Capability Between Supply Chain Integration and Firm Performance

Abstract Views: 188  |  PDF Views: 0

Authors

Yaw Agyabeng-Mensah
Dalian Maritime University, China
Esther Nana Konadu Ahenkorah
Regent University College of Science and Technology, Ghana
Martilex Carin Gnimassou Agnikpe
Dalian Maritime University, China

Abstract


The quest to gain competitive advantage and improve performance has triggered the need for managers of firms to look for new strategies to outwit competitors. This study investigates the potential influence of supply chain integration on the development of capabilities and firm performance. We analysed the data collected from 275 supply chain managers of wholesale firms in Ghana with SmartPLS 3. We discovered that firms which share knowledge, skills, information, and resources with supply chain partners develop supply chain capabilities and improve performance. We will discuss the contributions and the limitations in the content.

Keywords


Supply Chain Capabilities, Firm Performance, Supply Chain Integration.

References