Operations management researchers emphasize the contribution of supply chain integration (SCI) to improve performance in supply networks. However, several authors maintain also that integration practices cannot be considered a one-best-way recipe for all companies and that it is essential to investigate the conditions under which SCI can be more beneficial. This evidence suggests that some factors may act as moderators on SCI-performance relationship. This paper analyzes the impact of SCI on delivery performance and the moderating effect on this relationship of using an international supplier network. This study uses data from the third round of the High Performance Manufacturing (HPM) project data set. The analyses are based on a sample of 189 manufacturing firms, settled in several countries around the world, and operating in machinery, electronic and transportation component sectors. The results of our analysis suggest that a positive relationship exists between SCI and delivery performance. However, the impact of this variable is positively moderated by the extent of use of international suppliers. Thus, the main contribution is that firms should lever on SCI, especially when they have to manage an international supplier network. In fact, in this case, the level of uncertainty, due to unreliable suppliers’ deliveries, is very high, and SCI is fundamental to reduce this uncertainty, thus improving delivery performance.
The impact of supply chain integration on delivery performance: the moderating effect of using an international supplier network
DANESE, PAMELA;
2010
Abstract
Operations management researchers emphasize the contribution of supply chain integration (SCI) to improve performance in supply networks. However, several authors maintain also that integration practices cannot be considered a one-best-way recipe for all companies and that it is essential to investigate the conditions under which SCI can be more beneficial. This evidence suggests that some factors may act as moderators on SCI-performance relationship. This paper analyzes the impact of SCI on delivery performance and the moderating effect on this relationship of using an international supplier network. This study uses data from the third round of the High Performance Manufacturing (HPM) project data set. The analyses are based on a sample of 189 manufacturing firms, settled in several countries around the world, and operating in machinery, electronic and transportation component sectors. The results of our analysis suggest that a positive relationship exists between SCI and delivery performance. However, the impact of this variable is positively moderated by the extent of use of international suppliers. Thus, the main contribution is that firms should lever on SCI, especially when they have to manage an international supplier network. In fact, in this case, the level of uncertainty, due to unreliable suppliers’ deliveries, is very high, and SCI is fundamental to reduce this uncertainty, thus improving delivery performance.
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