IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v174y2016icp142-155.html
   My bibliography  Save this article

Innovation-oriented supply chain integration for combined competitiveness and firm performance

Author

Listed:
  • Lii, Peirchyi
  • Kuo, Fang-I

Abstract

This study examined the combined impact of an innovation orientation, supply chain integration (customer integration, supplier integration, and internal integration), and combinative competitive capabilities on firm performance. A total of 480 questionnaires were collected from companies in the Taiwanese electronics industry. Structural equation modeling (SEM) was employed to analyze the collected data. An innovation orientation was shown to positively affect supply chain integration, combinative competitive capabilities, and firm performance. Supply chain integration (in particular, supplier integration and internal integration) had a mediation effect on innovation orientation and business performance, whereas combinative competitive capabilities had a mediation effect on supply chain integration and firm performance. The results provide empirical support for the notion that an innovation orientation affects supply chain integration and firm performance. Drawing from previous studies on resource dependence theory, this study indicates how innovation orientation assists firms in integrating their supply chains and realizing the potential of the supply chain management mechanism. This paper presents the interrelatedness of innovation orientation, supply chain integration, combinative competitive capabilities, and firm performance.

Suggested Citation

  • Lii, Peirchyi & Kuo, Fang-I, 2016. "Innovation-oriented supply chain integration for combined competitiveness and firm performance," International Journal of Production Economics, Elsevier, vol. 174(C), pages 142-155.
    • Handle: RePEc:eee:proeco:v:174:y:2016:i:c:p:142-155
    DOI: 10.1016/j.ijpe.2016.01.018
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527316000207
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2016.01.018?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. van der Vaart, Taco & van Donk, Dirk Pieter, 2008. "A critical review of survey-based research in supply chain integration," International Journal of Production Economics, Elsevier, vol. 111(1), pages 42-55, January.
    2. Manu, Franklyn A. & Sriram, Ven, 1996. "Innovation, marketing strategy, environment, and performance," Journal of Business Research, Elsevier, vol. 35(1), pages 79-91, January.
    3. Wong, Christina W.Y. & Lai, Kee-hung & Cheng, T.C.E. & Lun, Y.H. Venus, 2015. "The role of IT-enabled collaborative decision making in inter-organizational information integration to improve customer service performance," International Journal of Production Economics, Elsevier, vol. 159(C), pages 56-65.
    4. Li, Gang & Yang, Hongjiao & Sun, Linyan & Sohal, Amrik S., 2009. "The impact of IT implementation on supply chain integration and performance," International Journal of Production Economics, Elsevier, vol. 120(1), pages 125-138, July.
    5. Ramiro Montealegre, 2002. "A Process Model of Capability Development: Lessons from the Electronic Commerce Strategy at Bolsa de Valores de Guayaquil," Organization Science, INFORMS, vol. 13(5), pages 514-531, October.
    6. Kim, Soo Wook, 2009. "An investigation on the direct and indirect effect of supply chain integration on firm performance," International Journal of Production Economics, Elsevier, vol. 119(2), pages 328-346, June.
    7. Luzzini, Davide & Brandon-Jones, Emma & Brandon-Jones, Alistair & Spina, Gianluca, 2015. "From sustainability commitment to performance: The role of intra- and inter-firm collaborative capabilities in the upstream supply chain," International Journal of Production Economics, Elsevier, vol. 165(C), pages 51-63.
    8. Ragatz, Gary L. & Handfield, Robert B. & Petersen, Kenneth J., 2002. "Benefits associated with supplier integration into new product development under conditions of technology uncertainty," Journal of Business Research, Elsevier, vol. 55(5), pages 389-400, May.
    9. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    10. Michael E. Porter, 1991. "Towards a dynamic theory of strategy," Strategic Management Journal, Wiley Blackwell, vol. 12(S2), pages 95-117, December.
    11. Hee‐Jae Cho & Vladimir Pucik, 2005. "Relationship between innovativeness, quality, growth, profitability, and market value," Strategic Management Journal, Wiley Blackwell, vol. 26(6), pages 555-575, June.
    12. Wiengarten, Frank & Pagell, Mark & Fynes, Brian, 2012. "Supply chain environmental investments in dynamic industries: Comparing investment and performance differences with static industries," International Journal of Production Economics, Elsevier, vol. 135(2), pages 541-551.
    13. Roth, Aleda V. & Miller, Jeffrey G., 1992. "Success factors in manufacturing," Business Horizons, Elsevier, vol. 35(4), pages 73-81.
    14. Ledyard Tucker & Charles Lewis, 1973. "A reliability coefficient for maximum likelihood factor analysis," Psychometrika, Springer;The Psychometric Society, vol. 38(1), pages 1-10, March.
    15. Wong, Christina W.Y. & Wong, Chee Yew & Boon-itt, Sakun, 2013. "The combined effects of internal and external supply chain integration on product innovation," International Journal of Production Economics, Elsevier, vol. 146(2), pages 566-574.
    16. LaBahn, Douglas W. & Krapfel, Robert, 2000. "Early Supplier Involvement in Customer New Product Development: A Contingency Model of Component Supplier Intentions," Journal of Business Research, Elsevier, vol. 47(3), pages 173-190, March.
    17. Zhou, Kevin Zheng & Gao, Gerald Yong & Yang, Zhilin & Zhou, Nan, 2005. "Developing strategic orientation in China: antecedents and consequences of market and innovation orientations," Journal of Business Research, Elsevier, vol. 58(8), pages 1049-1058, August.
    18. Vijayasarathy, Leo R., 2010. "Supply integration: An investigation of its multi-dimensionality and relational antecedents," International Journal of Production Economics, Elsevier, vol. 124(2), pages 489-505, April.
    19. Prajogo, Daniel & Olhager, Jan, 2012. "Supply chain integration and performance: The effects of long-term relationships, information technology and sharing, and logistics integration," International Journal of Production Economics, Elsevier, vol. 135(1), pages 514-522.
    20. Hillebrand, Bas & Biemans, Wim G., 2003. "The relationship between internal and external cooperation: literature review and propositions," Journal of Business Research, Elsevier, vol. 56(9), pages 735-743, September.
    21. Jeffrey G. Miller & Aleda V. Roth, 1994. "A Taxonomy of Manufacturing Strategies," Management Science, INFORMS, vol. 40(3), pages 285-304, March.
    22. Ben Naylor, J. & Naim, Mohamed M & Berry, Danny, 1999. "Leagility: Integrating the lean and agile manufacturing paradigms in the total supply chain," International Journal of Production Economics, Elsevier, vol. 62(1-2), pages 107-118, May.
    23. Mahoney, Joseph T., 1995. "The management of resources and the resource of management," Journal of Business Research, Elsevier, vol. 33(2), pages 91-101, June.
    24. Stock, Ruth & Zacharias, Nicolas, 2011. "Patterns and Performance Outcomes of Innovation Orientation," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 57122, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    25. Humphreys, P. K. & Li, W. L. & Chan, L. Y., 2004. "The impact of supplier development on buyer-supplier performance," Omega, Elsevier, vol. 32(2), pages 131-143, April.
    26. G. Tomas M. Hult & David J. Ketchen & Mathias Arrfelt, 2007. "Strategic supply chain management: Improving performance through a culture of competitiveness and knowledge development," Strategic Management Journal, Wiley Blackwell, vol. 28(10), pages 1035-1052, October.
    27. Hsin Hsin Chang, 2009. "An empirical study of evaluating supply chain management integration using the balanced scorecard in Taiwan," The Service Industries Journal, Taylor & Francis Journals, vol. 29(2), pages 185-202, February.
    28. Paul M. Swamidass & William T. Newell, 1987. "Manufacturing Strategy, Environmental Uncertainty and Performance: A Path Analytic Model," Management Science, INFORMS, vol. 33(4), pages 509-524, April.
    29. Larry J. Menor & Aleda V. Roth & Charlotte H. Mason, 2001. "Agility in Retail Banking: A Numerical Taxonomy of Strategic Service Groups," Manufacturing & Service Operations Management, INFORMS, vol. 3(4), pages 273-292, February.
    30. Davide Luzzini & Emma Brandon-Jones & Alistair Brandon-Jones & Gianluca Spina, 2015. "From sustainability commitment to performance: The role of intra-and inter-firm collaborative capabilities in the upstream supply chain," Post-Print hal-01289178, HAL.
    31. Fariborz Damanpour, 1996. "Organizational Complexity and Innovation: Developing and Testing Multiple Contingency Models," Management Science, INFORMS, vol. 42(5), pages 693-716, May.
    32. Ahmed, Muhammad Usman & Kristal, Mehmet Murat & Pagell, Mark, 2014. "Impact of operational and marketing capabilities on firm performance: Evidence from economic growth and downturns," International Journal of Production Economics, Elsevier, vol. 154(C), pages 59-71.
    33. Acar, Yavuz & Atadeniz, Sukran Nilvana, 2015. "Comparison of integrated and local planning approaches for the supply network of a globally-dispersed enterprise," International Journal of Production Economics, Elsevier, vol. 167(C), pages 204-219.
    34. Droge, Cornelia & Vickery, Shawnee K. & Jacobs, Mark A., 2012. "Does supply chain integration mediate the relationships between product/process strategy and service performance? An empirical study," International Journal of Production Economics, Elsevier, vol. 137(2), pages 250-262.
    35. Yu, Wantao & Jacobs, Mark A. & Salisbury, W. David & Enns, Harvey, 2013. "The effects of supply chain integration on customer satisfaction and financial performance: An organizational learning perspective," International Journal of Production Economics, Elsevier, vol. 146(1), pages 346-358.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jacobs, Mark A. & Yu, Wantao & Chavez, Roberto, 2016. "The effect of internal communication and employee satisfaction on supply chain integration," International Journal of Production Economics, Elsevier, vol. 171(P1), pages 60-70.
    2. Yu, Wantao & Jacobs, Mark A. & Salisbury, W. David & Enns, Harvey, 2013. "The effects of supply chain integration on customer satisfaction and financial performance: An organizational learning perspective," International Journal of Production Economics, Elsevier, vol. 146(1), pages 346-358.
    3. Li, Siyu & Huo, Baofeng & Han, Zhaojun, 2022. "A literature review towards theories and conceptual models of empirical studies on supply chain integration and performance," International Journal of Production Economics, Elsevier, vol. 250(C).
    4. Abdurrezzak Sener & Mehmet Barut & Ali Dag & Mehmet Bayram Yildirim, 2021. "Impact of commitment, information sharing, and information usage on supplier performance: a Bayesian belief network approach," Annals of Operations Research, Springer, vol. 303(1), pages 125-158, August.
    5. Wong, Christina W.Y. & Wong, Chee Yew & Boon-itt, Sakun, 2013. "The combined effects of internal and external supply chain integration on product innovation," International Journal of Production Economics, Elsevier, vol. 146(2), pages 566-574.
    6. Maiga, Adam S. & Nilsson, Anders & Ax, Christian, 2015. "Relationships between internal and external information systems integration, cost and quality performance, and firm profitability," International Journal of Production Economics, Elsevier, vol. 169(C), pages 422-434.
    7. Dawei Lu & Yi Ding & Sobhan Asian & Sanjoy Kumar Paul, 2018. "From Supply Chain Integration to Operational Performance: The Moderating Effect of Market Uncertainty," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 19(1), pages 3-20, March.
    8. Droge, Cornelia & Vickery, Shawnee K. & Jacobs, Mark A., 2012. "Does supply chain integration mediate the relationships between product/process strategy and service performance? An empirical study," International Journal of Production Economics, Elsevier, vol. 137(2), pages 250-262.
    9. Acar, Yavuz & Atadeniz, Sukran Nilvana, 2015. "Comparison of integrated and local planning approaches for the supply network of a globally-dispersed enterprise," International Journal of Production Economics, Elsevier, vol. 167(C), pages 204-219.
    10. Zhi-Peng Li & Hyi-Thaek Ceong & Sang-Joon Lee, 2021. "The Effect of Blockchain Operation Capabilities on Competitive Performance in Supply Chain Management," Sustainability, MDPI, vol. 13(21), pages 1-24, November.
    11. Prajogo, Daniel & Toy, Jordan & Bhattacharya, Ananya & Oke, Adegoke & Cheng, T.C.E., 2018. "The relationships between information management, process management and operational performance: Internal and external contexts," International Journal of Production Economics, Elsevier, vol. 199(C), pages 95-103.
    12. Franck Brulhart & Uche Okongwu & Btissam Moncef, 2015. "Causal linkages between supply chain management practices and performance: a balanced scorecard strategy map perspective," Post-Print halshs-01239670, HAL.
    13. Liao, Shu-Hsien & Kuo, Fang-I, 2014. "The study of relationships between the collaboration for supply chain, supply chain capabilities and firm performance: A case of the Taiwan׳s TFT-LCD industry," International Journal of Production Economics, Elsevier, vol. 156(C), pages 295-304.
    14. Hong, Jiangtao & Liao, Yi & Zhang, Yibin & Yu, Zhefu, 2019. "The effect of supply chain quality management practices and capabilities on operational and innovation performance: Evidence from Chinese manufacturers," International Journal of Production Economics, Elsevier, vol. 212(C), pages 227-235.
    15. Sener, Abdurrezzak & Barut, Mehmet & Oztekin, Asil & Avcilar, Mutlu Yuksel & Yildirim, Mehmet Bayram, 2019. "The role of information usage in a retail supply chain: A causal data mining and analytical modeling approach," Journal of Business Research, Elsevier, vol. 99(C), pages 87-104.
    16. Sreedevi, R. & Saranga, Haritha, 2017. "Uncertainty and supply chain risk: The moderating role of supply chain flexibility in risk mitigation," International Journal of Production Economics, Elsevier, vol. 193(C), pages 332-342.
    17. Jing Li & Chien-Wen Chen & Chi-Hui Wu & Hsing-Chun Hung & Ching-Torng Lin, 2020. "How do Partners Benefit from IT Use in Supply-Chain Management: An Empirical Study of Taiwan’s Bicycle Industry," Sustainability, MDPI, vol. 12(7), pages 1-24, April.
    18. Danese, Pamela & Romano, Pietro & Formentini, Marco, 2013. "The impact of supply chain integration on responsiveness: The moderating effect of using an international supplier network," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 49(1), pages 125-140.
    19. Minkyun Kim & Sangmi Chai, 2017. "Implementing Environmental Practices for Accomplishing Sustainable Green Supply Chain Management," Sustainability, MDPI, vol. 9(7), pages 1-17, July.
    20. Chahal, Hardeep & Gupta, Mahesh & Bhan, Namrita & Cheng, T.C.E., 2020. "Operations management research grounded in the resource-based view: A meta-analysis," International Journal of Production Economics, Elsevier, vol. 230(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:174:y:2016:i:c:p:142-155. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.