ORGANIZATIONAL STRUCTURE, INTEGRATION, AND MANUFACTURING PERFORMANCE: A CONCEPTUAL MODEL AND PROPOSITIONS

One major characteristic of studies in operations and supply chain management literature is a focus on how integration can lead to superior operations and manufacturing outcomes. Most of these studies, however, focus only on internal or external integration and few have been dedicated to understand how both internal and external integration influence performance outcomes. In addition, few studies, if any, have looked to the antecedents of organizational structure as a driver for such forms of integration. To help filling this gap, we draw on organizational structure and resource-based view theoretical perspectives to present a conceptual model that proposes a relationship between organizational structure and integration. The model also considers major antecedents of organizational structure and the manufacturing performance consequences of integration. As a result, we introduce a series of propositions to be subject to empirical scrutiny as well as serve as a reference for future conceptual and empirical models.

[1]  Justin W. Webb,et al.  A multi‐theoretic perspective on trust and power in strategic supply chains , 2007 .

[2]  David Wilemon,et al.  The R&D-marketing interface in high-technology firms , 1985 .

[3]  Bhanu S. Ragu-Nathan,et al.  Development and validation of a measurement instrument for studying supply chain management practices , 2005 .

[4]  Rachna Shah,et al.  Aligning supply chain management characteristics and interorganizational information system types: an exploratory study , 2002, IEEE Trans. Engineering Management.

[5]  F. Liu,et al.  Product development performance measures in manufacturing firm , 2007, 2007 IEEE International Conference on Industrial Engineering and Engineering Management.

[6]  G. Zaltman,et al.  Strategies for Planned Change. , 1978 .

[7]  Xenophon Koufteros,et al.  Internal and External Integration for Product Development: The Contingency Effects of Uncertainty, Equivocality, and Platform Strategy , 2005, Decis. Sci..

[8]  Barbara B. Flynn,et al.  The impact of supply chain integration on performance: A contingency and configuration approach , 2010 .

[9]  D. Wilemon,et al.  Accelerating the Development of Technology-Based New Products , 1990 .

[10]  T. S. Raghunathan,et al.  A post-industrial paradigm: To integrate and automate manufacturing , 1997 .

[11]  Daniel R. Krause,et al.  The relationships between supplier development, commitment, social capital accumulation and performance improvement , 2007 .

[12]  Robert W. Ruekert,et al.  The Organization of Marketing Activities: A Contingency Theory of Structure and Performance , 1985 .

[13]  R. Lamming,et al.  Developing the concept of supply strategy , 1999 .

[14]  Suzanne K. Bishop.  Cross-Functional Project Teams in Functionally Aligned Organizations , 1999 .

[15]  Karel Cool,et al.  Asset stock accumulation and sustainability of competitive advantage , 1989 .

[16]  A. Harrison,et al.  Supply chain management: theory, practice and future challenges , 2006 .

[17]  F. Damanpour.  Organizational Innovation: A Meta-Analysis Of Effects Of Determinants and Moderators , 1991 .

[18]  D. Channon.  The strategy and structure of British enterprise , 1973 .

[19]  Hyo Sook Kim.  ORGANIZATIONAL STRUCTURE AND INTERNAL COMMUNICATION AS ANTECEDENTS OF EMPLOYEE-ORGANIZATION RELATIONSHIPS IN THE CONTEXT OF ORGANIZATIONAL JUSTICE: A MULTILEVEL ANALYSIS , 2005 .

[20]  Steven Postrel,et al.  Shared knowledge, “glitches,” and product development performance , 1999 .

[21]  Michael Song,et al.  Supplier's involvement and success of radical new product development in new ventures , 2008 .

[22]  E. James Flynn,et al.  World class manufacturing: an investigation of Hayes and Wheelwright's foundation , 1999 .

[23]  Robert E. Markland,et al.  The Performance Implications of Media Richness in a Business-to-Business Service Environment: Direct Versus Indirect Effects , 2004, Manag. Sci..

[24]  W. Souder.  Managing relations between R&D and marketing in new product development projects☆ , 1988 .

[25]  G. Stevens.  Integrating the Supply Chain , 1989 .

[26]  John Paul Macduffie.  Human Resource Bundles and Manufacturing Performance: Organizational Logic and Flexible Production Systems in the World Auto Industry , 1995 .

[27]  Morgan Swink,et al.  EFFECTS OF MARKETING-MANUFACTURING INTEGRATION ON NEW PRODUCT DEVELOPMENT TIME AND COMPETITIVE ADVANTAGE , 2007 .

[28]  I. Chen,et al.  Strategic buyer-supplier relationships, information technology and external logistics integration , 2007 .

[29]  Gerard A. Athaide,et al.  Managing seller-buyer new product development relationships for customized products: a contingency model based on transaction cost analysis and empirical test , 2002 .

[30]  J. Henke.  Perspective: Cross-functional teams: Good concept, poor implementation! , 1993 .

[31]  Paolo Tessarolo,et al.  Is Integration Enough for Fast Product Development? An Empirical Investigation of the Contextual Effects of Product Vision* , 2007 .

[32]  L. Porter,et al.  Communication in Organizations. , 1972 .

[33]  Jan B. Heide,et al.  ALLIANCES IN INDUSTRIAL PURCHASING - THE DETERMINANTS OF JOINT ACTION IN BUYER-SUPPLIER RELATIONSHIPS , 1990 .

[34]  K. Lai,et al.  “Black‐box” and “gray‐box” supplier integration in product development: Antecedents, consequences and the moderating role of firm size , 2007 .

[35]  J. Fredrickson.  The Strategic Decision Process and Organizational Structure , 1986 .

[36]  Donald J. Bowersox,et al.  Leading edge logistics : competitive positioning for the 1990's : comprehensive research on logistics organization, strategy and behavior in North America , 1989 .

[37]  R. Narasimhan,et al.  Managing beyond the factory walls: Effects of four types of strategic integration on manufacturing plant performance , 2007 .

[38]  S. Vickery,et al.  The effects of an integrative supply chain strategy on customer service and financial performance: an analysis of direct versus indirect relationships , 2003 .

[39]  I. Chen,et al.  Towards a theory of supply chain management: the constructs and measurements , 2004 .

[40]  Frank Jacob,et al.  Preparing industrial suppliers for customer integration , 2006 .

[41]  Eve D. Rosenzweig,et al.  The influence of an integration strategy on competitive capabilities and business performance: An exploratory study of consumer products manufacturers , 2003 .

[42]  Linda L. Putnam,et al.  Metaphors of Communication and Organization , 1999 .

[43]  Kee-hung Lai,et al.  An empirical assessment of a nomological network of organizational design constructs: From culture to structure to pull production to performance , 2007 .

[44]  D. Dozier,et al.  Excellent Public Relations and Effective Organizations: A Study of Communication Management in Three Countries , 2002 .

[45]  Vineet Padmanabhan,et al.  Comments on "Information Distortion in a Supply Chain: The Bullwhip Effect" , 1997, Manag. Sci..

[46]  Barbara B. Flynn,et al.  The impact of power and relationship commitment on the integration between manufacturers and customers in a supply chain , 2008 .

[47]  C. Harland,et al.  Barriers to supply chain information integration: SMEs adrift of eLands , 2007 .

[48]  Tom R. Burns,et al.  The Management of Innovation. , 1963 .

[49]  Frank M. Hull,et al.  Organizing for Innovation: Beyond Burns and Stalker's Organic Type , 1982 .

[50]  R. Narasimhan,et al.  Effect of supply chain integration on the relationship between diversification and performance: evidence from Japanese and Korean firms , 2002 .

[51]  Glen L. Urban,et al.  Lead User Analyses for the Development of New Industrial Products , 1988 .

[52]  V. A. Thompson.  Bureaucracy and innovation , 1969 .

[53]  Mark A. Vonderembse,et al.  The evolution of manufacturing systems: Towards the post-industrial enterprise , 1991 .

[54]  Andrea Masini,et al.  ERP Competence-Building Mechanisms: An Exploratory Investigation of Configurations of ERP Adopters in the European and U.S. Manufacturing Sectors , 2009, Manuf. Serv. Oper. Manag..

[55]  Steven C. Wheelwright,et al.  THE CHALLENGE OF MANUFACTURING ADVANTAGE , 1996 .

[56]  R. Germain.  The role of context and structure in radical and incremental logistics innovation adoption , 1996 .

[57]  S. Robbins.  Organization theory: Structure, design, and applications , 1987 .

[58]  E. Penrose.  The theory of the growth of the firm twenty-five years after , 1960 .

[59]  J. Werbel,et al.  Universalistic and Contingency Predictions of Employee Satisfaction and Conflict. , 1979 .

[60]  T. Davenport,et al.  Case Management and the Integration of Labor , 1994 .

[61]  R. Rumelt.  Towards a Strategic Theory of the Firm , 1984 .

[62]  Ernesto M. Reza,et al.  Organizational Integration and Process Innovation , 1992 .

[63]  Rosabeth Moss Kanter,et al.  The Change Masters: Innovations for Productivity in the American Corporation , 1983 .

[64]  Donald Gerwin,et al.  Management of Advanced Manufacturing Technology: Strategy, Organization, and Innovation , 1992 .

[65]  J. Barney.  Firm Resources and Sustained Competitive Advantage , 1991 .

[66]  D. Teece,et al.  DYNAMIC CAPABILITIES AND STRATEGIC MANAGEMENT , 1997 .

[67]  Robert E. Spekman,et al.  Characteristics of partnership success: Partnership attributes, communication behavior, and conflict resolution techniques , 1994 .

[68]  Soo Wook Kim,et al.  Manufacturing Practices and Strategy Integration: Effects on Cost Efficiency, Flexibility, and Market-Based Performance , 2005, Decis. Sci..

[69]  Bernard J. Jaworski,et al.  Market orientation: The construct, research propositions, and managerial implications. , 1990 .

[70]  Eric M. Olson,et al.  Patterns of cooperation during new product development among marketing, operations and R&D: Implications for project performance , 2001 .

[71]  M. Frohlich,et al.  Arcs of integration: an international study of supply chain strategies , 2001 .

[72]  M. Aiken,et al.  The Organic Organization and Innovation , 1971 .

[73]  Bernard M. Bass,et al.  Interpersonal communication in organizations , 1982 .

[74]  Chee Yew Wong,et al.  The contingency effects of environmental uncertainty on the relationship between supply chain integration and operational performance , 2011 .

[75]  Mohan V. Tatikonda,et al.  COMPETITIVE ADVANTAGE THROUGH DESIGN TOOLS AND PRACTICES , 2005 .

[76]  Richard H. Hall,et al.  Organizations: Structure and process , 1977 .

[77]  Kim B. Clark,et al.  COMPETING THROUGH MANUFACTURING AND THE NEW MANUFACTURING PARADIGM: IS MANUFACTURING STRATEGY PASSE? , 1996 .

[78]  Roger J. Calantone,et al.  Redefining the purchasing function: an entrepreneurial perspective , 1991 .

[79]  K. Clark,et al.  Organizing and Leading “Heavyweight” Development Teams , 1992 .

[80]  B. Wernerfelt,et al.  A Resource-Based View of the Firm , 1984 .

[81]  Powell E. Robinson,et al.  Flow Coordination and Information Sharing in Supply Chains: Review, Implications, and Directions for Future Research , 2002, Decis. Sci..

[82]  K. Clark.  Project scope and project performance: the effect of parts strategy and supplier involvement on product development , 1989 .

[83]  J. Kimberly,et al.  Organizational innovation: the influence of individual, organizational, and contextual factors on hospital adoption of technological and administrative innovations. , 1981, Academy of Management journal. Academy of Management.

[84]  M. Wiersema,et al.  Top Management Team Demography and Corporate Strategic Change , 1992 .

[85]  G. Hult,et al.  Bridging organization theory and supply chain management: The case of best value supply chains , 2007 .

[86]  Gregory N. Stock,et al.  Building Dynamic Capabilities in New Product Development through Intertemporal Integration , 2003 .

[87]  Ari-Pekka Hameri,et al.  Experiences of different approaches in logistics , 1991 .

[88]  Richard A. Guzzo,et al.  Teams in organizations: recent research on performance and effectiveness. , 1996, Annual review of psychology.

[89]  Gerald M. Goldhaber,et al.  Information Strategies: New Pathways to Management Productivity , 1984 .

[90]  Derina R. Holtzhausen.  The effects of a divisionalised and decentralised organisational structure on a formal internal communication function in a South African organisation , 2002 .

[91]  P. Lawrence,et al.  Organization and environment , 1967 .

[92]  Jakki J. Mohr,et al.  Communication Strategies in Marketing Channels: A Theoretical Perspective , 1990 .

[93]  Theodore P. Stank,et al.  Performance Benefits of Supply Chain Logistical Integration , 2001 .

[94]  K. Eisenhardt,et al.  PRODUCT DEVELOPMENT: PAST RESEARCH, PRESENT FINDINGS, AND FUTURE DIRECTIONS , 1995 .

[95]  Bryan Hattingh,et al.  The competitive advantage , 2007 .

[96]  K. Boal,et al.  Strategic resources: Traits, configurations and paths to sustainable competitive advantage , 2007 .

[97]  Jan B. Heide,et al.  Performance implications of buyer-supplier relationships in industrial markets: A transaction cost explanation , 1995 .