Fredrik Tiedemann, Joakim Wikner and Eva Johansson
The purpose of the study is to describe the implications of strategic lead times (SLTs) for return on investment (ROI).
Abstract
Purpose
The purpose of the study is to describe the implications of strategic lead times (SLTs) for return on investment (ROI).
Design/methodology/approach
This study was part of an interactive research project and is based on the logic of theory application leading to theory building. It uses a multiple case study with five holistic single cases. Empirical data (ED) have mainly been collected from interviews and focus groups.
Findings
The length of and uncertainty in SLTs have implications for companies' financial performance. These implications vary in strength and can be either direct or indirect. These findings are incorporated into a framework on SLTs' implications for ROI.
Research limitations/implications
The presented array of SLTs' implications for ROI could be further investigated, focussing on their strength. Additionally, it would be interesting to substantiate the findings in the context of environmental and social sustainability (i.e. the triple bottom line).
Practical implications
The findings offer practitioners a rich description and understanding of SLTs' actual implications for financial performance in terms of ROI. This knowledge can support practitioners in analysing supply chain designs based on financial performance.
Originality/value
Using a combination of a relative financial performance measure (ROI) and a set of SLTs (systems perspective), this study focuses on SLTs' actual implications for ROI. The findings provide evidence that different sections of a supply chain can have different implications for revenue, cost and investment (i.e. the three absolute measures related to ROI).
Details
Keywords
Hamid Jafari, Hadi Ghaderi, Mohammad H. Eslami and Mohsin Malik
This paper aims to examine the relationship between supply integration and firm performance by first, investigating the mediating effects of manufacturing flexibility and mass…
Abstract
Purpose
This paper aims to examine the relationship between supply integration and firm performance by first, investigating the mediating effects of manufacturing flexibility and mass customization; and second, exploring the moderating role of innovation orientation on the link between internal capabilities and performance.
Design/methodology/approach
Resource orchestration and contingency theories are used to address the mediating and moderating effects. A cross-sectional data set on 242 Swedish manufacturers is used to test for the hypotheses using structural equation modeling.
Findings
The findings provide support for the mediating roles of manufacturing flexibility and mass customization in the relationship between supply integration and firm performance. However, the results point to contrasting contingent effects of innovation orientation. While innovation orientation positively moderates the association between mass customization and firm performance, it shows a negative impact on the link between flexibility and performance.
Research limitations/implications
The study contributes to the literature on the integrative activities with upstream supply chain actors. Specifically, the authors highlight how specific capability configurations comprising of supply integration, manufacturing flexibility and mass customization lead to firm performance. Moreover, the authors provide insights on the contingency role of innovation, especially if firms consider flexibility or customization capabilities.
Originality/value
While the individual impacts of flexibility and customization on performance have been addressed previously, there is a paucity of research on how these two capabilities are integrated with supply integration. Moreover, there is little known regarding the role of innovation orientation on these integrated relationships.