The impact of supply chain risk on supply chain integration and company performance: a global investigation

Purpose – The purpose of this paper is to empirically explore the relationships among supply chain risks (SCRs), supply chain integration (SCI), and company performance in a global context.Design/methodology/approach – This study is based on the High Performance Manufacturing (HPM) project database collected from 317 manufacturing plants in ten countries and three representative industries (machinery, electronics and transportation components), using structural equation modeling (SEM) methods.Findings – Results show that SCRs, especially supply delivery risk (SDR), are negatively related to SCI. There is a contingent relationship between SCI and performance. Different types of SCI play different roles in improving different types of company performance. Supplier, internal, and customer integration are the most important drivers for schedule attainment, competitive performance, and customer satisfaction, respectively.Originality/value – This study is one of the first empirical studies to explore how SCRs a...

[1]  Hau L. Lee,et al.  The bullwhip effect in supply chains , 2015, IEEE Engineering Management Review.

[2]  Cristina Gimenez,et al.  Logistics‐production, logistics‐marketing and external integration , 2013 .

[3]  V. Tummala,et al.  Assessing and Managing Risks Using the Supply Chain Risk Management Process (SCRMP) , 2011 .

[4]  David L. Olson,et al.  Risk management models for supply chain: a scenario analysis of outsourcing to China , 2011 .

[5]  Pietro Romano,et al.  Supply chain integration and efficiency performance: a study on the interactions between customer and supplier integration , 2011 .

[6]  M. Christopher,et al.  Approaches to managing global sourcing risk , 2011 .

[7]  Baofeng Huo,et al.  The impact of internal integration and relationship commitment on external integration , 2011 .

[8]  Elcio M. Tachizawa,et al.  Supply flexibility strategies in Spanish firms: Results from a survey , 2010 .

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

[10]  R. Henry,et al.  Buyer perceptions of supply disruption risk: A behavioral view and empirical assessment , 2010 .

[11]  S. Fawcett,et al.  The moderating role of barriers on the relationship between drivers to supply chain integration and firm performance , 2009 .

[12]  S. Kim.  An investigation on the direct and indirect effect of supply chain integration on firm performance , 2009 .

[13]  Kevin McCormack,et al.  Supply Chain Risk in Turbulent Environments – A Conceptual Model for Managing Supply Chain Network Risk , 2009 .

[14]  Michael J. Braunscheidel,et al.  The organizational antecedents of a firm’s supply chain agility for risk mitigation and response , 2009 .

[15]  Roger G. Schroeder,et al.  THE IMPACT OF ELECTRONIC DATA INTERCHANGE ON DELIVERY PERFORMANCE , 2001 .

[16]  Germaine H. Saad,et al.  Managing Disruption Risks in Supply Chains , 2005 .

[17]  Cecil Bozarth,et al.  The impact of supply chain complexity on manufacturing plant performance , 2009 .

[18]  Roger G. Schroeder,et al.  Linking learning and effective process implementation to mass customization capability , 2008 .

[19]  Christopher S. Tang,et al.  The power of flexibility for mitigating supply chain risks , 2008 .

[20]  Chris Ellegaard.  Supply risk management in a small company perspective , 2008 .

[21]  P. Humphreys,et al.  Reducing supply chain environmental uncertainty through e-intermediation: An organisation theory perspective , 2008 .

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

[23]  Stephan M. Wagner,et al.  AN EMPIRICAL EXAMINATION OF SUPPLY CHAIN PERFORMANCE ALONG SEVERAL DIMENSIONS OF RISK , 2008 .

[24]  T. V. D. Vaart,et al.  A critical review of survey-based research in supply chain integration , 2008 .

[25]  D. Waters.  Supply Chain Risk Management: Vulnerability and Resilience in Logistics , 2007 .

[26]  Jerry C. Wei,et al.  Impact of eBusiness technologies on operational performance: The role of production information integration in the supply chain , 2007 .

[27]  D. Bogataj,et al.  Measuring the supply chain risk and vulnerability in frequency space , 2007 .

[28]  Jennifer Blackhurst,et al.  The Severity of Supply Chain Disruptions: Design Characteristics and Mitigation Capabilities , 2007, Decis. Sci..

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

[30]  Desheng Dash Wu,et al.  Supply Chain Risk Management , 2007 .

[31]  Jeff K. Stratman,et al.  The impact of enterprise systems on corporate performance: A study of ERP, SCM, and CRM system implementations , 2007 .

[32]  Christopher S. Tang.  Perspectives in supply chain risk management , 2006 .

[33]  R. Narasimhan,et al.  Supplier integration—Finding an optimal configuration , 2006 .

[34]  Karthik N. S. Iyer,et al.  THE INTERACTION OF INTERNAL AND DOWNSTREAM INTEGRATION AND ITS ASSOCIATION WITH PERFORMANCE , 2006 .

[35]  P. Cousins,et al.  THE IMPLICATIONS OF SOCIALIZATION AND INTEGRATION IN SUPPLY CHAIN MANAGEMENT , 2006 .

[36]  G. Zsidisin,et al.  Managing Supply Risk with Early Supplier Involvement: A Case Study and Research Propositions , 2005 .

[37]  D. Power.  Supply chain management integration and implementation: a literature review , 2005 .

[38]  C. Voss,et al.  Supply chain relationship quality, the competitive environment and performance , 2005 .

[39]  Dean Tjosvold,et al.  Organizational partnerships in China: self-interest, goal interdependence, and opportunism. , 2005, The Journal of applied psychology.

[40]  Uta Jüttner.  Supply chain risk management: Understanding the business requirements from a practitioner perspective , 2005 .

[41]  H. Peck.  Drivers of supply chain vulnerability: an integrated framework , 2005 .

[42]  R. Handfield,et al.  Supplier integration into new product development: coordinating product, process and supply chain design , 2005 .

[43]  N. Sanders,et al.  MODELING THE RELATIONSHIP BETWEEN FIRM IT CAPABILITY, COLLABORATION, AND PERFORMANCE , 2005 .

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

[45]  S. Vickery,et al.  The effects of internal versus external integration practices on time-based performance and overall firm performance , 2004 .

[46]  Jack Barry,et al.  Supply chain risk in an uncertain global supply chain environment , 2004 .

[47]  J. R. Carter,et al.  An analysis of supply risk assessment techniques , 2004 .

[48]  Robert E. Spekman,et al.  Risky business: expanding the discussion on risk and the extended enterprise , 2004 .

[49]  Elie Ofek,et al.  Manufacturer Benefits from Information Integration with Retail Customers , 2004, Manag. Sci..

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

[51]  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 .

[52]  J. Efstathiou,et al.  The urge to integrate [integrated supply chains] , 2003 .

[53]  G. Zsidisin.  A grounded definition of supply risk , 2003 .

[54]  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 .

[55]  G. Zsidisin,et al.  An Agency Theory Investigation of Supply Risk M anagement , 2003 .

[56]  Rosanna Garcia,et al.  The Effects of Environmental Turbulence on New Product Development Strategy Planning , 2003 .

[57]  Qingyu Zhang,et al.  Manufacturing flexibility: Defining and analyzing relationships among competence, capability, and customer satisfaction , 2003 .

[58]  Cristina Giménez Thomsen,et al.  Logistics-Production, Logistics-Marketing and External Integration: Their Impact on Performance , 2003 .

[59]  Markham T. Frohlich,et al.  e-Integration in the Supply Chain: Barriers and Performance , 2002, Decis. Sci..

[60]  Aleda V. Roth,et al.  Enterprise Resource Planning (ERP) Competence Constructs: Two-Stage Multi-Item Scale Development and Validation , 2002, Decis. Sci..

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

[62]  Scott W. O’Leary-Kelly,et al.  THE INTEGRATION OF MANUFACTURING AND MARKETING/SALES DECISIONS: IMPACT ON ORGANIZATIONAL PERFORMANCE , 2002 .

[63]  Gary L. Ragatz,et al.  Benefits associated with supplier integration into new product development under conditions of technology uncertainty , 2002 .

[64]  Laura Horvath.  Collaboration: the key to value creation in supply chain management , 2001 .

[65]  Lee Krajewski,et al.  The Value of Production Schedule Integration in Supply Chains , 2001, Decis. Sci..

[66]  P. Daugherty,et al.  SUPPLY CHAIN COLLABORATION AND LOGISTICAL SERVICE PERFORMANCE , 2001 .

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

[68]  Hau L. Lee,et al.  Winning the Last Mile of E-Commerce , 2001 .

[69]  Roger G. Schroeder,et al.  High performance manufacturing : global perspectives , 2001 .

[70]  G. Zsidisin,et al.  Purchasing organization involvement in risk assessments, contingency plans, and risk management: an exploratory study , 2000 .

[71]  K. Tan,et al.  Supply Chain M anagement and Its Impact on Purchasing , 2000 .

[72]  Darryl D. Wilson,et al.  Supply management orientation and supplier/buyer performance , 2000 .

[73]  R. Klassen,et al.  The Impact of Environmental Technologies on Manufacturing Performance , 1999 .

[74]  T. Stank,et al.  21st Century Logistics: Making Supply chain Integration a Reality , 1999 .

[75]  R. Frankel,et al.  THE EFFECT OF GOVERNANCE STRUCTURE ON PERFORMANCE: A CASE STUDY OF EFFICIENT CONSUMER RESPONSE , 1999 .

[76]  E. Morash,et al.  Supply Chain Integration: Customer Value through Collaborative Closeness versus Operational Excellence , 1998 .

[77]  Robert J. Vokurka,et al.  The empirical assessment of construct validity , 1998 .

[78]  Ram Narasimhan,et al.  An empirical investigation of the antecedents and consequences of manufacturing goal achievement in North American, European and Pan Pacific firms , 1998 .

[79]  Janice H. Hammond,et al.  REENGINEERING CHANNEL REORDERING PROCESSES TO IMPROVE TOTAL SUPPLY‐CHAIN PERFORMANCE , 1997 .

[80]  Frank Lefley,et al.  Approaches to risk and uncertainty in the appraisal of new technology capital projects , 1997 .

[81]  Patrick Y. K. Chau,et al.  Reexamining a Model for Evaluating Information Center Success Using a Structural Equation Modeling Approach , 1997 .

[82]  Roger G. Schroeder,et al.  The Impact of Quality Management Practices on Performance and Competitive Advantage , 1995 .

[83]  J. Wagner,et al.  Percept-Percept Inflation in Microorganizational Research: An Investigation of Prevalence and Effect , 1994 .

[84]  R. Handfield.  A resource dependence perspective of Just-in-Time purchasing , 1993 .

[85]  C. Armistead,et al.  The Impact of Supply Chain Integration on Operating Performance , 1993 .

[86]  Y Kano,et al.  Can test statistics in covariance structure analysis be trusted? , 1992, Psychological bulletin.

[87]  B. Kogut,et al.  Knowledge of the Firm, Combinative Capabilities, and the Replication of Technology , 1992 .

[88]  Barbara B. Flynn,et al.  Empirical research methods in operations management , 1990 .

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

[90]  D. Bowersox,et al.  The Integration of Marketing Flows in Channels of Distribution , 1989 .

[91]  James C. Anderson,et al.  STRUCTURAL EQUATION MODELING IN PRACTICE: A REVIEW AND RECOMMENDED TWO-STEP APPROACH , 1988 .

[92]  J. March,et al.  Managerial perspectives on risk and risk taking , 1987 .

[93]  J. Loehlin.  Latent variable models , 1987 .

[94]  John H. Grant,et al.  Construct Measurement in Organizational Strategy Research: A Critique and Proposal , 1986 .

[95]  C. Fornell,et al.  Evaluating structural equation models with unobservable variables and measurement error. , 1981 .

[96]  Edward G. Carmines,et al.  Reliability and Validity Assessment , 1979 .

[97]  Gilbert A. Churchill.  A Paradigm for Developing Better Measures of Marketing Constructs , 1979 .

[98]  J. Nunnally,et al.  Psychometric Theory: NY. , 1978 .

[99]  J. Hair.  Multivariate data analysis , 1972 .