Intangible supply chain complexity, organizational structure and firm performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pushpesh Pant ◽  
Shantanu Dutta ◽  
S.P. Sarmah
Keyword(s):  
Supply Chain ◽  
Social Network ◽  
Firm Performance ◽  
Panel Data ◽  
Organizational Structure ◽  
Business Group ◽  
Network Resources ◽  
Empirical Examination ◽  
Content Type ◽  
Objective Understanding

PurposeThe purpose of this paper is to conduct a large-sample empirical examination of how intangible supply chain complexity impacts firm performance in light of a firm's organizational structure.Design/methodology/approachThe study uses panel data from 2,580 Indian manufacturing firms and constructs empirical proxy for intangible supply chain complexity, i.e. CHQ distance from major cities. The proposed conceptual model is grounded in the dynamic capability view (DCV) and social network theory (SNT). Multivariate regression analyses are performed to investigate the effect of intangible complexity on firm performance.FindingsResults show that intangible supply chain complexity, as proxied by “CHQ distance from major cities”, negatively affects firm performance and a firm's organizational structure plays an important role in conceiving CHQ locational strategies. Firms with interconnected supply chain and social network (e.g. business group firms) have a higher propensity to locate their CHQs farther away from major cities, and business group firms that have more distantly located CHQs experience better financial performance compared to independent firms (with less network resources).Originality/valueIn light of the supply chain literature and relevant theories, the study conceptualizes intangible supply chain complexity as “CHQ distance from major cities” and deepens our understanding of the relationship between intangible complexity and firm performance in light of organizational structure. Further, it develops an objective understanding of intangible supply chain complexity by relying on secondary panel data.

Achieving a competitive supply chain network for a manufacturer

2015 ◽  
Vol 26 (5) ◽  
pp. 744-762 ◽  
Author(s):  
Yan Jin ◽  
Paulette Edmunds
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Conceptual Model ◽  
Supply Chain Network ◽  
Research Model ◽  
Competitive Performance ◽  
Network Resources ◽  
Manufacturing Firm ◽  
Resource Based View ◽  
Content Type

Purpose – Collaboration in supply chain networks (SCN) becomes extremely important for manufacturers seeking a sustainable competitive advantage. Such competitiveness depends on the SCN resources a manufacturing firm can allocate, the capabilities to identify and deploy these network resources effectively, and practices and applications the firm arranges for these resources. The purpose of this paper is to develop a conceptual framework that investigates the relationships between these network constructs and their influences on firm performance. Design/methodology/approach – An extensive literature review of supply chain management was conducted to explicate why some manufacturers outperform others. A resource-based view, dynamic capability theory, and extended resource-based view were employed to develop a conceptual model that investigates relationships between the resources, capabilities, and practices of a SCN. The relationships were then examined to analyze their influences on firm performance. Several cases and practical examples were included in the study to give a better understanding of the conceptual research model. Various keywords were used in searching literature for the constructs of the research model. For example, “knowledge” and “supply chain network” were used to search the literature regarding the SCN intangible resources. Findings – This study uses a conceptual model to identify SCN resources that are dispersed in the internal territory among different network members, SCN capabilities that are developed based on these network resources and lead to the firm’s competitive performance, and SCN practices used to acquire network resources and build network capabilities. Research limitations/implications – The conceptual model of SCN resources, capabilities, and practices needs further empirical validation. Practical implications – The conceptual model provides a framework for managers to identify the critical resources, capabilities, and practices of a SCN that help a firm achieve sustainable competitive performance. Originality/value – This research builds a comprehensive picture of relationships between a manufacturing firm’s strategic resources, capabilities, and practices in a SCN. It also provides a theoretical foundation for future research on developing instruments for resources, practices, and capabilities of a SCN and empirically testing the relationships among the appropriate constructs.

Demand-pull vs supply-push strategy: the effects of organizational structure on supply chain integration and response capabilities

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ai-Hsuan Chiang ◽  
Ming-Yuan Huang
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Organizational Structure ◽  
Supply Chain Integration ◽  
Equation Modeling ◽  
Content Type ◽  
Supplier Integration ◽  
And Performance ◽  
The Relationship ◽  
Different Levels

PurposeRapid response is often the cornerstone of success in many industries, especially manufacturing. In the authors’ opinion, organizational structure will also affect the construction of a fast-response supply chain system. The main purpose of this research examines whether different levels of organizational structure have different effects on the relationship between external integration and firm performance.Design/methodology/approachThis study applied questionnaires to collect data. This study collected 818 questionnaires from manufacturers in China, Hong Kong and Taiwan to verify our proposed model using structural equation modeling.FindingsResults show that response speed perfectly mediates the relationship between external integration and firm performance. Different levels of organizational structure will also affect external integration. Strict organizational structure requires customer integration, while loose organizational structure requires supplier integration to quickly meet customer needs.Practical implicationsCompanies can probably determine whether their organizational structure is higher or lower than that of their competitors. If firms can determine that their organization structure is high or low, they can adopt suitable external integrations to enhance quick response and operational performance.Originality/valueIn the relationship between supply chain integration and performance, we consider a mediating variable and moderating variable together. Results explain the reason that the relationship between supply chain integration and performance are inconsistent in previous studies. We have addressed external integration in alignment with organizational structure to provide better service and enhance performance by providing empirical evidence.

An empirical examination of firm financial performance along dimensions of supply chain resilience

2017 ◽  
Vol 40 (3) ◽  
pp. 254-269 ◽  
Author(s):  
Xun Li ◽  
Qun Wu ◽  
Clyde W. Holsapple ◽  
Thomas Goldsby
Keyword(s):  
Supply Chain ◽  
Financial Performance ◽  
Three Dimensions ◽  
Empirical Examination ◽  
Content Type ◽  
Supply Chain Resilience ◽  
Critical Dimensions ◽  
Firm Financial Performance ◽  
Supply Chain Agility ◽  
The Impact

Purpose This paper aims to investigate the impact of three critical dimensions of supply chain resilience, supply chain preparedness, supply chain alertness and supply chain agility, all aimed at increasing a firm’s financial outcomes. In a turbulent environment, firms require resilience in their supply chains to prepare for potential changes, detect changes and respond to actual changes, thus providing superior value. Design/methodology/approach Using survey data from 77 firms, this study develops scales for preparedness, alertness and agility. It then tests their hypothesized relationships with a firm’s financial performance. Findings The results reveal that the three dimensions of supply chain resilience (i.e. preparedness, alertness and agility) significantly impact a firm’s financial performance. It is also found that supply chain preparedness, as a proactive resilience capability, has a greater influence on a firm’s financial performance than the reactive capabilities including alertness and agility, suggesting that firms should pay more attention to proactive approaches for building supply chain resilience. Originality/value First, this study develops a comparatively comprehensive definition for supply chain resilience and explores its dimensionality. Second, this study provides empirically validated instruments for the dimensions of supply chain resilience. Third, this study is one of the first to provide empirical evidence for direct impact of supply chain resilience dimensions on a firm’s financial performance.

Market orientation, innovation commercialization capability and firm performance relationships: the moderating role of supply chain influence

2017 ◽  
Vol 32 (7) ◽  
pp. 913-924 ◽  
Author(s):  
Jeen-Su Lim ◽  
William K. Darley ◽  
David Marion
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Market Orientation ◽  
Innovation Management ◽  
Strategy Formulation ◽  
Content Type ◽  
Positive Effects ◽  
The Impact ◽  
Moderating Role

Purpose The study aims to explore supply chain influence (SCI) on the linkages among market orientation, innovation capabilities and firm performance (FP), using the resource-based view as a theoretical backdrop. Design Survey data from 182 top managers who are involved in strategy formulation and innovative direction of their companies was collected and analyzed using moderated multiple regression analysis. Findings Results revealed a moderating role of the SCI in that the proactive market orientation (PMO) and FP relationship is stronger when SCI is high, and innovation commercialization capability (ICC) and FP relationship is stronger when SCI is low. Practical implications Firms pursuing high PMO strategy must collaborate with supply chain function to achieve the full effect of PMO. Additionally, as supply chain is critical to meeting customers’ needs, these firms should allow supply chain to exert greater influence to enjoy the positive effects of PMO in addition to ensuring full integration into marketing strategy implementation. Also, firms with high ICC need to limit SCI to maximize the benefit of ICC on FP, just as innovation management needs to be cognizant of other functional areas. Originality/value The study investigates the potential moderating role of SCI on the relationships among market orientation, ICC and FP. The study fills a gap in the understanding of the nature and role of supply chain in the marketing–supply chain interaction, and the impact on FP.

The role of big data analytics capabilities in bolstering supply chain resilience and firm performance: a dynamic capability view

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohamad Bahrami ◽  
Sajjad Shokouhyar
Keyword(s):  
Risk Management ◽  
Big Data ◽  
Supply Chain ◽  
Firm Performance ◽  
Data Analytics ◽  
Big Data Analytics ◽  
Content Type ◽  
Supply Chain Resilience ◽  
Management Culture

PurposeBig data analytics capability (BDAC) can affect firm performance in several ways. The purpose of this paper is to understand how BDA capabilities affect firm performance through supply chain resilience in the presence of the risk management culture.Design/methodology/approachThe study adopted a cross-sectional approach to collect survey-based responses to examine the hypotheses. 167 responses were collected and analyzed using partial least squares in SmartPLS3. The respondents were generally senior IT executives with education and experience in data and business analytics.FindingsThe results show that BDA capabilities increase supply chain resilience as a mediator by enhancing innovative capabilities and information quality, ultimately leading to improved firm performance. In addition, the relationship between supply chain resilience and firm performance is influenced by risk management culture as a moderator.Originality/valueThe present study contributes to the relevant literature by demonstrating the mediating role of supply chain resilience between the BDA capabilities relationship and firm performance. In this context, some theoretical and managerial implications are proposed and discussed.

Corporate governance, globalization and firm performance in emerging economies

2018 ◽  
Vol 67 (8) ◽  
pp. 1310-1333 ◽  
Author(s):  
Neha Saini ◽  
Monica Singhania
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Panel Data ◽  
Foreign Capital ◽  
Good Governance ◽  
Foreign Ownership ◽  
Foreign Firms ◽  
Content Type ◽  
Governance Practices ◽  
The Relationship

PurposeThe purpose of this paper is to examine relationship between corporate governance (CG) and firm performance for a set of 255 foreign-funded firms in the form of foreign direct investment (FDI) and private equity (PE). The authors employ a wide range of CG measures including board size, meetings, board gender and foreign ownership which are used as the proxy of globalisation and control variables like firm age, leverage, firm size and capital expenditure to arrive at a conclusion.Design/methodology/approachPanel data set of 255 (187 companies funded by foreign capital in the form of FDI, and 68 companies having foreign capital in the form PE) companies listed on Bombay Stock Exchange, for the period of eight years (2008–2015) are analysed by using static (fixed and random effects) and dynamic (generalised method of moments (GMM)) panel data specifications to examine the relationship among CG, globalisation and firm performance.FindingsThe empirical results of static model indicate the relationship between CG and performance of foreign firms, which are not very strong in India. This is due to the fact that most of the firms are not following the guidelines and regulations strictly in the initial period of sample years. Diversity in board is found as an important variable in accessing firm performance. And the authors also found that foreign firms are very particular about the implementation of CG norms. The results of GMM model highlight the interaction term of foreign ownership with governance indicators. CG is having a positive and significant impact over performance, inferring that higher foreign ownership (in the form of FDI and PE) in firm leading to positive effect on profitability.Practical implicationsThe investor’s preference of financing a unit is guided by the performance of a firm. Investors are more inclined towards high-performing firms, and hence higher profitability leads to higher inflow of capital. The result indicates that higher accounting and market performance may be achieved by good governance practices, in turn, leading to reduced agency costs. Countries with high governance scores attract more of foreign capital. Similar to the best governed countries, the companies having good governance practices attract more foreign inflows in the form of capital.Originality/valueWhile previous literature considered a single measurement framework in the form of a CG index, the authors tried to incorporate a range of CG indicators to study the effect of globalisation and CG on firm performance. The authors segregated foreign-owned funds into two parts, especially FDI and PE. This paper examined heterogeneity in the form of FDI-funded and PE-funded firms, as no prior literature is available which has evaluated different sets of foreign funds simultaneously on CG.

An empirical examination of the relationship between globalization, integration and sustainable innovation within manufacturing networks

2018 ◽  
Vol 38 (3) ◽  
pp. 874-894 ◽  
Author(s):  
Ruggero Golini ◽  
Jury Gualandris
Keyword(s):  
Supply Chain ◽  
Operations Management ◽  
Empirical Examination ◽  
Sustainable Practices ◽  
Content Type ◽  
Manufacturing Plants ◽  
Positive Effects ◽  
Manufacturing Networks ◽  
Plant Level ◽  
Manufacturing Network

Purpose While controlling for supply chain effects, the purpose of this paper is to investigate if globalization and collaborative integration within a firm-wide manufacturing network have significant implications for the adoption of sustainable production (SP) and sustainable sourcing (SS) practices at the plant level. Design/methodology/approach The authors conceptualize SP and SS as process innovations with moderate degrees of innovativeness and apply “Organizational integration and process innovation” theory to build our conceptual model. Then, the authors use primary survey data from 471 assembly manufacturing plants operating in the US, Europe and Asia to test our hypotheses rigorously. Findings This research finds that the adoption of SP practices at the plant level is significantly and positively associated with globalization and integration of the firm-wide manufacturing network. On the contrary, the adoption of SS practices is more strongly affected by integration in the external supply chain and benefits from the manufacturing network only indirectly, through the association with SP practices. Originality/value Operations management literature devoted to sustainability has studied sustainable practices mostly from a risk management angle. Also, there exists contrasting evidence in the operations strategy literature about the positive and negative effects that globalization of a manufacturing network may have on the adoption of sustainable practices at the plant level. Moreover, several studies show how integration with supply chain partners helps manufacturing plants transition into more SP and SS practices; however, related literatures have neglected that collaborative integration within a firm-wide manufacturing network may also help to develop, or adapt to, new sustainable practices. This research represents a first attempt to resolve discordance and unveil the positive effects that manufacturing networks may have on sustainable innovations at the plant level.

Board diversity and performance in a masculine, aged and glocal supply chain: new empirical evidence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Giuseppe Giulio Calabrese ◽  
Alessandro Manello
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Empirical Evidence ◽  
Linear Models ◽  
Data Set ◽  
Board Diversity ◽  
Content Type ◽  
Automotive Supply Chain ◽  
And Performance ◽  
Automotive Supply

Purpose This study aims to contribute to the debate on the relationship between board diversity and performance, a hot topic for scholars and shareholders. A number of studies have found contrasting impacts of board diversity on firm performance and this paper adds new and original evidence in the context of the automotive supply chain focusing on gender, age and nationality diversity. Design/methodology/approach The authors propose a triple stage empirical analysis. First, the authors use linear models according to different performance indexes for investigating diversity (gender, age and nationality) within the board of directors and executives. Second, the authors investigate the issue of diversity in different contexts such as position in the supply chain, nationality of the owner and family/corporate ownership. Finally, the authors use non-linear models to find a better combination of diversity in terms of gender and nationality for retrieving some managerial implications. Findings First, the authors demonstrate a robust positive effect of women in board representation on firm performance in terms of profitability and firm risk. In the case of, age and nationality the results are more equivocal in particular for the former. Second, the authors depict board diversity in different contexts as follows: positioning in the supply chain, type and nationality of the final owner. Again, gender heterogeneity is more adequate in the complex firm as Tier 1 suppliers, corporate and foreign company. Originality/value The authors focused the analysis on a specific industry, shedding light on the main specificities linked to operating in certain phases of the supply chain, a substantial novelty in this field. The empirical evidence is based on a very large data set containing quantitative and qualitative information on a representative sample of 1,538 firms operating in the Italian automotive supply chain, one of the most relevant in Europe.

The structural impact of supply chain management teams

2019 ◽  
Vol 42 (2) ◽  
pp. 290-310
Author(s):  
Xun Li ◽  
Clyde W. Holsapple ◽  
Thomas J. Goldsby
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Organizational Structure ◽  
Business Environment ◽  
Structural Elements ◽  
Global Business ◽  
Chain Management ◽  
Content Type ◽  
Supply Chain Agility ◽  
Hierarchical Position

Purpose In today’s constantly evolving global business environment, multidivisional firms (MDFs) require an organizational structure for supply chain management (SCM) that facilitates the development of supply chain agility. This research aims to investigate what structural elements of an MDF’s SCM team contribute to supply chain agility. Design/methodology/approach A two-sample field study was conducted. Four MDFs with top-performing supply chains (Sample 1) were first studied to identify agility-supporting structural elements. Then, quantitative data from 35 MDFs with contrasting levels of supply chain agility (Sample 2) were collected to test the theoretical propositions advanced from Sample 1 findings. Findings The results reveal four structural elements that exert a positive impact on an MDF’s supply chain agility: hierarchical position of the divisional top supply chain executive, scope of divisional supply chain operations, hierarchical position of the top supply chain executive at the headquarters and scope of SCM coordination by the headquarters. Originality/value First, this study provides a comparatively comprehensive understanding of the SCM organization structure in MDFs. Second, this study is one of the first to provide empirically supported theoretical insights about the linkage between an MDF’s organizational structure for SCM and supply chain agility.

Providing an interpretive structural model of agile supply chain practices

2019 ◽  
Vol 15 (2) ◽  
pp. 661-684 ◽  
Author(s):  
Akbar Rahimi ◽  
Abbas Raad ◽  
Akbar Alem Tabriz ◽  
Alireza Motameni
Keyword(s):  
Supply Chain ◽  
Organizational Structure ◽  
Human Resource ◽  
Defense Industry ◽  
Theory And Practice ◽  
Equation Modeling ◽  
Content Type ◽  
Agile Supply Chain ◽  
Supply Chain Agility ◽  
The Relationship

Purpose Nowadays, the defense industry is considered a significant part of the manufacturing industries. Military products in the world have a high level of diversity, delivery speed and appropriative operational functionality. Therefore, various producing, high quality and high-speed delivery of military products are of great importance in enhancing Iran’s defensive power. Defense industries’ supply chain agility is a response to how to produce military products with these features. Therefore, the purpose of this paper is to provide a model for the agile supply chain of defense industries to show the relationship between agile practices and their hierarchy. Design/methodology/approach First, the authors identify the most important supply chain agility practices by expert’s questionnaire. Then, using factor analysis, practices are categorized and validated based on structural equation modeling (SEM). SEM showed a meaningful relationship between agile supply chain practices. Finally, using interpretative structural modeling, a model is presented to show the logical relationships and hierarchy between these practices. Findings The results show that out of a total of 62 practices introduced in the previous research for the agile supply chain, 37 practices in the agility of the supply chain of defense industries are effective. The 4 new agility practices were identified in this research. These 41 practices were classified into 8 categories including supplier relationship, workshop level management, organizational structure improvement, human resource management, product designing, improve and integrate the process, application of information technology and customer relationship. Improvement of organizational structure was at the highest level of the model. Therefore, managers first should focus on it. Research limitations/implications Given the confidentiality of information in the defense industry, the distribution of questionnaires and their collection was one of the most important limitations. A variety of defense products in land, air and sea areas, and a large number of industries in each sector, forced the authors to select the only land area. Although the results of this research can be used in the air and sea areas, but cannot be said that the implementation of this study presented model will fully lead to the defense industries’ supply chain agility in air and sea sectors. Originality/value This is the first research on the supply chain agility of Iran’s defense industry that bridges the gap between theory and practice. The classification of 41 practices in the form of 8 measures and examining the relationship between them is a new and practical approach for understanding the relationships between different variables that affect supply chain agility. This study introduces four new agility practices including the use of new technology and equipment, human resource balance, the use of expert human resources, training and employee empowerment, which can be considered in many industries of developing or less developed countries. Considering the specific situation of defense industry supply chain in comparison with other industries, the results of this research can be used by other defense industries of similar countries.

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