The direct and indirect effects of internal enablers on internal integration and business performance
Abstract
The present paper aims to assess both the direct as well as the indirect effects of internal enablers on internal integration and business performance in the supply chain. A full managerial comprehension of the connection between supply chain integration (SCI) and business performance is missing so far and earlier results are inconclusive. To fill this gap, this study expands the growing body of research on SCI and contributes to the SCM field by explaining the direct and indirect effects of internal enablers on internal integration and business performance. Results show that hierarchical organizational culture influences internal integration and supply chain performance, that top management support and information technology department size influence internal integration, and, finally, that supply chain performance impacts operational performance. These findings confirm the relevance for firms to pay attention to those key internal enablers of internal integration, and their benefits on business performance. Considering our results, future research should deepen on the influence of internal integration on business performance by focusing on the links between internal integration and the other dimensions of SCI, that is supplier and customer integration, as well as with the external side of the supply chain performance.
Keyword : supply chain, supply chain internal integration, internal enablers, information technology department, top management support, hierarchical organizational culture, business performance
How to Cite
Ruzo-Sanmartín, E., Abousamra, A. A., Otero-Neira, C., & Svensson, G. (2023). The direct and indirect effects of internal enablers on internal integration and business performance. Journal of Business Economics and Management, 24(4), 633–652. https://doi.org/10.3846/jbem.2023.20115
This work is licensed under a Creative Commons Attribution 4.0 International License.
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Di Vaio, A., & Varriale, L. (2020). Blockchain technology in supply chain management for sustainable performance: Evidence from the airport industry. International Journal of Information Management, 52, 102014. https://doi.org/10.1016/j.ijinfomgt.2019.09.010
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Flynn, B. B., Huo, B., & Zhao, X. (2010). The impact of supply chain integration on performance: A contingency and configuration approach. Journal of Operations Management, 28(1), 58–71. https://doi.org/10.1016/j.jom.2009.06.001
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Frohlich, M. T., & Westbrook, R. (2001). Arcs of integration: An international study of supply chain strategies. Journal of Operations Management, 19(2), 185–200. https://doi.org/10.1016/S0272-6963(00)00055-3
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Germain, R., & Iyer, K. N. S. (2006). The interaction of internal and downstream integration and its association with performance. Journal of Business Logistics, 27(2), 29–52. https://doi.org/10.1002/j.2158-1592.2006.tb00216.x
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Hambrick, D. C. (2007). Upper echelons theory: an update. Academy of Management Review, 32, 334–343. https://doi.org/10.5465/amr.2007.24345254
Hou, C.-K. (2020). The effects of IT infrastructure integration and flexibility on supply chain capabilities and organizational performance: An empirical study of the electronics industry in Taiwan. Information Development, 36(4), 576–602. https://doi.org/10.1177/0266666919884352
Hu, L., & Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modeling: A Multidisciplinary Journal, 6(1), 1–55. https://doi.org/10.1080/10705519909540118
Huber, G. P., & Power, D. J. (1985). Retrospective reports of strategic-level managers: Guidelines for increasing their accuracy. Strategic Management Journal, 6(2), 171–180. https://doi.org/10.1002/smj.4250060206
Huo, B. (2012). The impact of supply chain integration on company performance: An organizational capability perspective. Supply Chain Management: An International Journal, 17(6), 596–610. https://doi.org/10.1108/13598541211269210
Huo, B., Qi, Y., Wang, Z., & Zhao, X. (2014). The impact of supply chain integration on firm performance: The moderating role of competitive strategy. Supply Chain Management: An International Journal, 19(4), 369–384. https://doi.org/10.1108/SCM-03-2013-0096
Jajja, M. S. S., Chatha, K. A., & Farooq, S. (2018). Impact of supply chain risk on agility performance: Mediating role of supply chain integration. International Journal of Production Economics, 205, 118–138. https://doi.org/10.1016/j.ijpe.2018.08.032
Jayaram, J., & Tan, K.-C. (2010). Supply chain integration with third-party logistics providers. International Journal of Production Economics, 125(2), 262–271. https://doi.org/10.1016/j.ijpe.2010.02.014
Jones, O. W., Devins, D., & Barnes, G. (2023). Developing SME performance management practices: Interventions for improving productivity. International Journal of Productivity and Performance Management. https://doi.org/10.1108/IJPPM-03-2022-0157
Kache, F., & Seuring, S. (2014). Linking collaboration and integration to risk and performance in supply chains via a review of literature reviews. Supply Chain Management: An International Journal, 19(5/6), 664–682. https://doi.org/10.1108/SCM-12-2013-0478
Ke, W., & Wei, K. K. (2008). Organizational culture and leadership in ERP implementation. Decision Support Systems, 45(2), 208–218. https://doi.org/10.1016/j.dss.2007.02.002
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