The purpose of this paper is to explore the link between interorganizational integration with respect to its intensity and span, as well as the propagation and amplification of…
Abstract
Purpose
The purpose of this paper is to explore the link between interorganizational integration with respect to its intensity and span, as well as the propagation and amplification of disruptions alongside a supply chain.
Design/methodology/approach
The paper opted for an exploratory study using a survey of companies. In order to extract the constructs manifesting the span and intensity of integration between companies in supply chains, the principal component analysis was employed. The obtained factor scores were then used as classification criteria in the cluster analysis. It enabled to include similar organizations in terms of intensity and span of supply chain integration. In order to validate the obtained results, the analysis of variance (ANOVA) was conducted and regression models were developed.
Findings
The findings of the study show that there is a relationship between the intensity and span of supply chain integration and the “snowball effect” in the transmission of disruptions. The obtained findings show that the span of supply chain integration is negatively associated with the strength of the “snowball effect” in the transmission of disruptions. In addition, the results suggest that more intense supply chain integration contributes to the “snowball effect” in material flows in the forward and backward transmission of disruptions.
Research limitations/implications
Although the current study investigates the intensity and span of integration within the basic, extended and ultimate supply chain structure, it still lacks the broader analysis of the “snowball effect” in the transmission of disruptions. The study investigates this phenomenon only within the basic supply chain structure, constituted by the primary members. Another challenge is to examine if the effects of external risk factors (e.g. natural disasters) may also be transferred to other links in the supply chain structure, and what are the similarities and differences (if any) between the mechanism of propagation and amplification of disruptions elicited by internal and external risk factors. Another future direction of study is to define other ways of identification and measurement of the “snowball effect” in order to make cross-industrial and international comparisons of disruptions amplified in the transmission more standardized and objective. In the current study, the phenomenon of the “snowball effect” is anchored in the subjective opinions of managers who may view the problem from different angles. Consequently, the study is limited to individual perceptions of the strength of disruptions affecting the solicited company, its customers and suppliers.
Practical implications
In practical terms, the findings provide crucial information for the framework of supply chain risk management and therefore enable its more efficient and effective implementation. The better the managers understand the nature of the “snowball effect” in the transmission of disruptions, the easier it is for them to allocate resources and apply necessary managerial tools to mitigate the negative consequences of risk more effectively. The deliverables of the study also confirm that the interorganizational exchange of information accompanying the supply chain integration enables to mitigate the strength of the “snowball effect” in the transmission of disruptions. Another important implication is the broadening of practical expertise concerning the use of integration not only as a means of obtaining and sustaining supply chain effectiveness and efficiency, but also as the way to mitigate the “snowball effect” in the transmission of disruptions. Therefore, nowadays the supply chain managers are facing another challenging task – namely, how to balance supply chain integration in terms of span and intensity to ensure profits from integration and mitigate the negative risk consequences transmitted among the links in supply chains.
Originality/value
The paper elaborates on the underestimated issue of the “snowball effect” in the transmission of disruptions and its drivers. In particular, the paper attempts at filling the gap in empirical studies concerning the relationships between the “snowball effect” in the transmission of disruptions and supply chain integration.
Details
Keywords
Rolf Brühl, Nils Horch and Mathias Osann
The purpose of this paper is to gain a deeper understanding of how companies integrate their innovation and operations processes. Referring to the dynamic capability approach, the…
Abstract
Purpose
The purpose of this paper is to gain a deeper understanding of how companies integrate their innovation and operations processes. Referring to the dynamic capability approach, the authors derive an “integration capability” construct from a set of qualitative data. The authors expand this concept stressing the specific role of management control as a crucial part of an integration capability to align the different processes.
Design/methodology/approach
Case studies in eight German industrial and service companies were conducted and qualitative material was analysed guided by a grounded theory approach.
Findings
The paper aims at exploring a specific dynamic capability in order to integrate innovation and operations processes. Based on a qualitative study of eight cases, three distinctive categories are derived describing the construct of an integration capability: organization, communication, and management control. Furthermore, influencing factors which lead to different levels of intensity of integration are described.
Research limitations/implications
Comparing the findings with existing research on integration capabilities fosters and expands knowledge on the construct “integration capability”. Effective coordination and communication based on efficient and structured processes seem to be crucial elements of integration capabilities. The paper expands the literature on the role of technology in integration capability which plays a major role in organizing effective coordination and communication.
Practical implications
Management control culture contributes to the present design of control systems of every company studied. Starting point for the design of control systems in research departments is the standard of management control in operations management. Therefore, it is assumed that higher control intensities in operational units will lead to higher control intensities in R&D departments.
Originality/value
In turbulent market environments, companies need to set up organizational processes which effectively coordinate and deploy internal and external resources. These dynamic capabilities are crucial to gain a sustainable competitive advantage. Until now, research on integration capabilities has lacked an analysis of the role of management control; with the empirical findings, this paper shows how management control improves integration capability.
Details
Keywords
The purpose of this paper is to examine the extent of the trade integration of Thailand with the Mekong region in comparison with its trade integration with the other major…
Abstract
Purpose
The purpose of this paper is to examine the extent of the trade integration of Thailand with the Mekong region in comparison with its trade integration with the other major partners (advanced ASEAN, China, India, Japan, and the USA).
Design/methodology/approach
The study adopts the gravity trade model as an analytical framework, for the period from the 1980s through the 2000s.
Findings
It is found that Thailand's trade integration with the Mekong region has remarkably grown from the 1980s to the 2000s, in the sense that Thailand's total trade with the Mekong region, which lies below the gravity‐model standard in the 1980s, exceeds the standard in the 1990s and the 2000s. However, it is also found that the intensity of Thailand's trade integration with the Mekong region is still behind that with advanced ASEAN even in the 2000s. It might come from the higher service‐link costs that prevent the Mekong region from being fully involved in the international production network.
Originality/value
The paper may be valuable to the policy makers and researchers in the Mekong region, since it contributes to reviewing the two‐decade progress of the regional cooperation of the Greater Mekong Subregion from such quantitative perspectives as trade integration.
Details
Keywords
Inter-firm integration is a multidimensional concept. This study aims to examine the performance effects of two aspects of inter-firm integration, coordination integration and…
Abstract
Purpose
Inter-firm integration is a multidimensional concept. This study aims to examine the performance effects of two aspects of inter-firm integration, coordination integration and authority integration, and their co-alignment with strategic and contextual factors.
Design/methodology/approach
The author conducted a quantitative empirical study using survey data of Japanese manufacturing companies’ relationships with their wholesalers to test hypotheses based on a literature review.
Findings
Coordination integration has a positive performance effect. There is co-alignment between high (low) coordination integration and high (low) product uniqueness. High (low) coordination integration is associated with high (low) demand uncertainty. High (low) authority integration is consistent with high (low) behavioral uncertainty.
Research limitations/implications
This study contributes theoretically to marketing channel and business-to-business marketing literature by holistically examining the linkages among governance forms, marketing-strategic factors, exchange-contextual factors and inter-firm performance. A limitation of this study is that the research data were collected in only one country, Japan. Thus, country-specific factors might affect the analytical outcomes.
Practical implications
Appropriate co-alignment among governance, strategies and contexts significantly influences performance. The findings have significant implications for manufacturing firms’ channel strategies.
Originality/value
This study tests the influences of two distinct dimensions of inter-firm integration on inter-firm outcomes, which few previous studies address. It comprehensively examines the linkages among governance forms, strategic factors, environmental factors and performance.
Details
Keywords
Marek Michalski, Jose-Luis Montes-Botella and Ram Narasimhan
This paper aims to examine the non-linear aspects of the relationship between asymmetry and performance in supply chains (SCs), under varying intensities of collaboration and…
Abstract
Purpose
This paper aims to examine the non-linear aspects of the relationship between asymmetry and performance in supply chains (SCs), under varying intensities of collaboration and integration.
Design/methodology/approach
The paper offers a useful new approach to designing strategic elements of supply chain management (SCM) relationships. Using the partial least squares method, an empirical study of 66 companies in Spain has been conducted to clarify contemporary relationships, suggest new directions and ultimately contribute toward developing SCM theory.
Findings
The influences of asymmetry on performance in varying collaboration and integration contexts are shown to be unstable and have non-linear paths. It is inappropriate for all firms to collaborate or integrate continually, even for a prescribed period. Furthermore, due to asymmetry, SCM processes are more complex.
Research limitations/implications
The results’ validity may be limited to contexts specific to Spanish SCs. It would be valuable to investigate the impact of asymmetry on firms’ performance and relationships in other markets.
Practical implications
Collaborations and integration between partners in a SC might change the role of asymmetry from restraining to improving performance. The best way to improve performance in asymmetric relationships is to collaborate. Certain dimensions of integration and full integration are not necessarily required to improve firms’ performance under asymmetry conditions.
Originality/value
The study adds a new viewpoint on SCM by suggesting that not all collaboration and integration developments lead directly to improved performance.
Details
Keywords
Mauricio Losada-Otalora, Nathalie Peña-García and Jorge Juliao-Rossi
This study aims to identify the groups of value cocreators in the context of social media in the retail banking industry and resources that predict customer membership among…
Abstract
Purpose
This study aims to identify the groups of value cocreators in the context of social media in the retail banking industry and resources that predict customer membership among different groups of value cocreators.
Design/methodology/approach
This study reviewed the literature and developed measurement instruments for the constructs of interest. Data were collected from 406 customers in an emerging market in 2019 and analyzed using latent profile analysis.
Findings
This study identified three profiles of value cocreators on social media based on the actual practices of resource integration that enliven value cocreation. Second, this study explains the differences in the performance of resource integration practices to cocreate by the types of resources that customers integrate into social media. Third, this study fills the need for knowledge of value cocreation in different contexts and industries (e.g. banks).
Originality/value
This study analytically relates a set of resources to the variety and intensity of the value cocreation practices adopted by bank customers in interactive environments. The emphasis on how value cocreation practices in online environments combined with customer resources (e.g., a person-centered approach) allows to identify unique profiles of value cocreators on social media. The findings inform managers of the profiles of cocreators, which customers are more attractive as value cocreators on social media, and which resources managers should help customers develop to increase cocreation on social media.
Details
Keywords
Kiho Kwak and Wonjoon Kim
– The purpose of this paper is to examine the relationship between service integration and manufacturing firms’ profitability and to identify profitable services.
Abstract
Purpose
The purpose of this paper is to examine the relationship between service integration and manufacturing firms’ profitability and to identify profitable services.
Design/methodology/approach
The study examines the service integration data of 202 firms in the machinery and equipment sector in Korea. Firm profitability comes from secondary data to eliminate common method bias.
Findings
The relationship between service integration, measured as the service-revenue ratio, and profitability has an inverted U-shape, likely stemming from political costs, a loss of opportunity in manufacturing improvements arising from resource constraints, and an increase in transaction costs. In addition, process operation outsourcing and technical consulting significantly contribute to profitability.
Research limitations/implications
The authors show that the effect of service integration on profitability diminishes when firms experience both resource constraints and an increase in transaction costs from implementing the strategy. Furthermore, the profitability of services is heterogeneous across different offerings. Further research in other countries and sectors is necessary to refine the relationships suggested herein.
Practical implications
Managers should strive to minimize the costs and problems stemming from resource constraints and transaction costs. It is also important to utilize external resources to achieve profitability from service integration. Managers also need to realize the different cost-revenue structure of each service.
Originality/value
The authors find that the relationship between profitability and service integration depends on the degree of resource constraints and transaction costs. The authors also identify which service offerings are highly profitable, which has not been done in previous research.
Details
Keywords
Yusoon Kim, Thomas Y. Choi and Paul F. Skilton
The purpose of this paper is to describe different ways in which a buyer and supplier can be embedded in a dyadic relationship and how these differences influence patterns of…
Abstract
Purpose
The purpose of this paper is to describe different ways in which a buyer and supplier can be embedded in a dyadic relationship and how these differences influence patterns of inter-firm innovation activities and outcomes. Specifically, to address the relative paucity of theoretical work on how dyadic configurations influence parties’ joint innovation behavior, this study examines how different buyer-supplier embeddedness (BSE) configurations change the four choices that pertain to the levels of involvement buyers and suppliers exhibit in inter-firm innovation activities. These choices concern the processes buyers use to engage suppliers; the scope of efforts in each party; the locus of effects determining the beneficiaries; and the extent to which parties disclose private innovations within the relationship.
Design/methodology/approach
Drawing on social embeddedness literature, the authors conceptualize dyad level, BSE in two dimensions: relational and structural. The relational dimension describes the quality of relationship, while the structural dimension describes the intensity of exchanges between the parties. Together these dimensions allow the authors to map the differences in BSE configurations and provide a basis for exploring their links to inter-firm innovation patterns.
Findings
The authors demonstrate the configurational approach to the innovation patterns in inter-organizational setting. That is, the authors conclude that different configurations of BSE are likely to produce distinctive patterns of choices for inter-firm innovation activities.
Originality/value
This study applies social embeddedness perspective to conceptualize dyadic BSE. Adoption of this concept allows dimensionalizing the dyadic relationships into two distinct dyadic elements, relational, and structural dimensions. Also, the concept has rich implications for how partner firms interact and share information. The dyad’s innovation potential and patterns are considered based on the configurations of dyadic embeddedness.
Details
Keywords
Justin Drupsteen, Taco van der Vaart and Dirk Pieter van Donk
The aim of this paper is to investigate which integrative planning and control practices are used in hospitals and what their effects are on patient flow.
Abstract
Purpose
The aim of this paper is to investigate which integrative planning and control practices are used in hospitals and what their effects are on patient flow.
Design/methodology/approach
The study is based on a three‐hospital multi‐case study carried out in The Netherlands. The main findings are based on over 40 in‐depth interviews and the analysis of detailed patient flow data. The analysis of the flow data is used to explore the effects of integrative practices on lead times and patient flow.
Findings
Based on the various patient groups examined in the different hospitals, four integrative practices stand out: sharing waiting list information, sharing planning information, cross‐departmental planning, and combining appointments. In line with earlier studies, the overall level of integration in hospitals was found to be low. However, patient flow performance is significantly better in those hospitals that employ more of the above‐mentioned integrative practices.
Research limitations/implications
The study was limited to three major patient groups within the orthopedic supply chain. The deliberate choice for these patients groups was based on the expectations that integration in hospitals is relatively low and that the highest levels of integration would be found in high volume – low variety patient groups. Further research should include patient groups with less favorable characteristics such as lower volumes and/or greater variety.
Practical implications
This study provides clear support for the value of integration initiatives in healthcare operations. The performance of hospitals, in terms of patient flows, benefits from cooperation between the various members of an internal supply chain. Hospital administrators and medical professionals could learn from these results and attempt to abandon their silo mentality and start integrating for and their patients' and their own benefit.
Originality/value
Despite the importance of integration in hospitals, little is known about the integrative practices hospitals actually employ. Most existing studies on patient flows are confined to a single stage in the care process. In this study, the effects of integration in the internal supply chain from the first visit to the end of treatment are examined.
Details
Keywords
Ana Cristina Ferreira, Marcio Lopes Pimenta and Paraskeva Wlazlak
The purpose of this paper is to develop a model to predict the antecedents of the integration level among marketing, logistics and production, considering the influence of formal…
Abstract
Purpose
The purpose of this paper is to develop a model to predict the antecedents of the integration level among marketing, logistics and production, considering the influence of formal and informal factors that generate integration and the existence of conflicts.
Design/methodology/approach
A survey of 179 participants from all regions of Brazil was conducted. A parsimonious model including four dimensions and 34 variables was developed through confirmatory factor analysis and structural equation modeling.
Findings
The field data corroborate studies dealing with the impact of various formal and informal integration factors on the cross-functional integration level as a construct. Furthermore, this paper concludes that the level of cross-functional can be defined as: the intensity of the relationship among internal functions which can be measured by the mutual existence of formal and informal factors and the absence of manifest conflicts.
Research limitations/implications
The findings of this paper cannot be generalized because of the convenience sampling. Future research could apply a probabilistic sampling and try to explore other geographical settings in both national and international contexts.
Practical implications
The proposed model can generate important information for managers by pointing out variables that can predict the integration level and their impacts on the organizational performance. The paper concludes with examples about how the model could be useful in several practical situations.
Originality/value
This paper proposes a model with reasonable accuracy to predict the integration level and overcomes prior research limitations with respect to models to predict the antecedents of the integration level, particularly the role of conflicts in the integration processes.