Reexamining supply chain integration and the supplier's performance relationships under uncertainty
Abstract
Purpose
Effective and efficient supply chain coordination requires the integration of all product flow processes. However, inconsistent empirical results have been obtained with respect to the relationships between supply chain integration (SCI) and performance. Drawing on efficiency-flexibility arguments, this paper seeks to develop a SCI model that includes buyer-supplier-supplier relationships, and proposes a contingency framework for reexamining the SCI-supplier performance relationship under demand and technological uncertainties.
Design/methodology/approach
A two-stage data collection process was conducted, and a total of 878 suppliers that listed in the Taiwanese “Center-Satellite Production System” with supply contract were contacted for this study. Finally 164 suppliers were gathered and screened as valid responses. Hierarchical regression analysis was used to test the hypotheses in this study.
Findings
Evidence indicates that SCI has a significant positive effect on the suppliers' performance. The positive SCI-performance relationship can be moderately weakened by demand uncertainty; however, this positive SCI-performance relationship will be strengthened by technological uncertainty.
Originality/value
While supply chain management is needed to manage the vertical and horizontal relationships simultaneously, this study offers a framework to solve efficiency-flexibility dilemma arguments when dealing with “exploitation” and “exploration” alternatives to help to reexamine the inconsistent SCI-performance relationship. Furthermore, based on transaction cost theory, this paper takes the nature of uncertainty into account for improving the theoretical background of the SCI-performance relationship arguments. Empirical results indicate the existence of an ambidextrous supply chain integration strategy which justifies the choice of which one is preferable in efficiency-flexibility dilemma arguments.
Keywords
Acknowledgements
The authors gratefully acknowledge the anonymous referees and Dr Wagner, Chief in Editor of Supply Chain Management: An International Journal, for their insightful and constructive advice on how to improve an earlier manuscript of this article. In addition, the authors wish to thank Miss Zi-Chi Yang for her assistance in collecting data for this study and the National Science Council in Taiwan for providing financial support for this research under grant NSC 101-2410-H-126-033. Received 6 April 2013 Revised 27 August 2013 12 September 2013 Accepted 13 September 2013
Citation
Huang, M.-C., Yen, G.-F. and Liu, T.-C. (2014), "Reexamining supply chain integration and the supplier's performance relationships under uncertainty", Supply Chain Management, Vol. 19 No. 1, pp. 64-78. https://doi.org/10.1108/SCM-04-2013-0114
Publisher
:Emerald Group Publishing Limited
Copyright © 2014, Emerald Group Publishing Limited