Supply chain processes

Interconnection between the role of blockchain technologies, supply chain integration, and circular economy: A case of small and medium-sized enterprises in Pakistan

Increased industrialization has led to unprecedented resource depletion on a global scale. The current state of affairs has compelled practitioners and academics to investigate the role of sustainable technologies in greening the operations of businesses. Previous studies have attempted to examine the number of operational aspects for their role in making firms sustainable, yet the utility of blockchain technologies is in its infancy. The role of BT in enhancing integration across supply chains has been in the limelight in the recent past. At the same time, its ability to cause sustainable supply chain performance (SSCP) in sync with the circular economy (CE) and supply chain integration (SCI) has largely remained unexplored. Therefore, this study intends to examine the association between blockchain technologies (BTs) and SSCPs through integration to fill the empirical gaps. The study was pursued to investigate the moderating role of the CE on the relationship between multiple extents of SCI and SSCP. Based on dynamic capability theory (DCT), the study considered BT a dynamic resource. BTs are used to integrate and reenergize the relationships with upstream and downstream channel members in pursuit of sustainable performance outcomes. The study opted for a cross-sectional design, where data was collected through convenience sampling from 475 managers from SMEs operating across Pakistan. PLS-SEM was used to analyze the data and to generate the required empirical outcomes. Study results favored the significant association between BT and SSCP, followed by a significant mediating role of SCI dimensions and moderating role of the CE. The study's findings propagate the utility of BTs adoption for SMEs, which holds the potential for firms to achieve system-wide integration to achieve sustainable outcomes. The given empirical investigation holds valuable insights for practitioners and scholars intending to pursue research on the subject matter.

Effect of supply chain resilience on firm's sustainable competitive advantage: a dynamic capability perspective

Supply chain disruption caused by environmental uncertainty makes it more difficult for firms to obtain sustainable competitive advantages (SCA). Based on the perspective of dynamic capability, this study explored the effect of three dimensions of supply chain resilience (SCR) (proactive capabilities, reactive capabilities and supply chain design quality) on SCA. In addition, we further adopted operational vulnerability (OV) as a mediated variable to construct a conceptual framework and propose research hypotheses. The theoretical hypotheses were empirically developed based on a survey of 305 firms in China's manufacturing industry and subsequently tested. Our findings indicate that taking proactive action, properly configuring supply chain systems, and developing rapid reaction capabilities to recover from disruptions provide companies an opportunity to improve and to obtain SCA. Finally, the paper offers managers a management framework and dynamic strategy with which to develop SCR and alleviate the negative impact of OV, thus contributing to a firm's SCA.

Impact of organizational characteristics on employees' entrepreneurial orientation with mediating role of knowledge process capabilities and moderating role of psychological factors in the era of COVID-19

Purpose

The study aims to investigate the impact of organizational characteristics and knowledge process capabilities on the entrepreneurial orientation among the manufacturing industry employees in the Punjab province of Pakistan. Additionally, this study has examined the mediating role of knowledge process capabilities in the relationship between organizational characteristics and entrepreneurial orientation among those employees and the moderating effect of psychological factors on the relationship between organizational characteristics and entrepreneurial orientation.

Design methodology and approach

The study has employed the survey-based methodology and data are collected with the aid of self-administered questionnaires. This study utilized the partial least squares structural equation modeling (PLS-SEM) to establish the validity and reliability of the measurement model and test the relationships. The response rate of the current study is 64.66%.

Findings

The study findings have shown mixed results as one of the organizational characteristics, namely, resource and time availability is an insignificant determinate of entrepreneurial orientation among the manufacturing industry employees in Punjab province of Pakistan. Whereas management support, rewards, work discretion, and knowledge process capabilities appear as significant determinates of employees' entrepreneurial orientation. The results indicated that knowledge process capabilities have a mediating role in the relationship between organizational characteristics and employees' entrepreneurial orientation. Moreover, psychological factors, namely, propensity to take risk and locus of control have a significant moderating role on the relationship of management support, rewards, and work discretion with employees' entrepreneurial orientation.

Practical implications

The empirical insights on the study are valuable for policymakers and managers in manufacturing sectors of developing countries, such as Pakistan, to enrich their work performance through the understanding impact of organizational characteristics and knowledge process capabilities on the entrepreneurial orientation with moderating role of psychological factors.

Originality and value

Studies on the mediating impact of knowledge process capabilities on the linkage between organizational characteristics and entrepreneurial orientation with the moderating role of psychological factors remain limited. This study is one of the earliest studies that investigate these inter-relationships.

Understanding green supply chain information integration on supply chain process ambidexterity: The mediator of dynamic ability and the moderator of leaders' networking ability

Based on dynamic capability theory, this paper aims to explore the influence of green supply chain information integration (IT system integration and information sharing) on supply chain process ambidexterity (efficiency and flexibility) and expounds on the mediation mechanisms (supply chain dynamic capability) and the boundary condition (networking ability) between the two. Through the sample data test research model of 351 managers of manufacturing enterprises, it is found that information technology (IT) system integration can effectively promote the information sharing level of green supply chain enterprises. Supply chain dynamic capability partially mediates the influence of IT system integration and information sharing on supply chain process ambidexterity. Moreover, networking ability positively moderates the relationship between absorptive capacity, innovation capacity, and supply chain process ambidexterity, but does not play a significant role in the relationship between adaptive capacity and supply chain process ambidexterity.

The role of open innovation, hotel service quality and marketing strategy in hotel business performance

These days, instead of developing and marketing new products in the market, organizations are shifting towards commercialization. Therefore, open innovation is of much importance in this era of industrialization. In this study, open innovation is used as a strategic tool to improve the service innovation and organizational performance of the Malaysian hospitality industry. Therefore, the objective of this research study is to examine the role of open innovation in business performance of Malaysian hospitality industry. A survey is conducted with the management of the organizations of the hospitality industry to collect data. Partial Least Square-Structural equation modeling (PLS-SEM) tool is used to test the hypothesis and get results. The findings of the study highlighted that open innovation is the main source of boosting organizational performance in the hospitality industry of Malaysia. The increase in open innovation practices among hotels can increase the business performance by increasing return on investment, return on assets, return on sales and return on equity. The term open innovation incorporates ICT, innovation in the organization, and internal and external knowledge management. Accumulation of these elements forms a mechanism that results in an increase in organizational performance by incorporating service innovation. Hence, this study is most suitable to develop strategies for service innovation using open innovation that improves organizational performance.

Direct and mediation effect of supply chain complexity drivers on supply chain performance: an empirical evidence of organizational complexity theory

Purpose

In today's globalized business environment, growing supply chain complexity (SCC) is arguably a major threat to the firm's business continuity with an adverse impact on the firm's competitive advantage and business performance. Researchers, though, investigated the impact of SCC drivers on a firm's operational performance, but the key question “Which supply chain complexity drivers severely impact the supply chain performance (SCP)?” remains largely unanswered from empirical research. The present study aims to decompose the SCC into four major constituting sub-categories (upstream, operational, downstream and external) to explore the causal impact of SCC drivers on SCP in direct and mediated manner.

Design/methodology/approach

The indicators applied for measuring constructs in the “Measurement model” are obtained from existing literature to increase the validity and reliability of the model. First, a pilot survey involving 25 SC managers from various manufacturing firms was conducted for indicator refinement and content validation. Second, the large-scale response data were collected through extensive surveys. This research explores the causality by testing the hypothesis applying Structural Equation Modeling (SEM) based on the responses received from 246 firms.

Findings

The study investigates the impact of SCC drivers on SCP through direct and mediation effect. The results indicate that upstream and operational SCC drivers play a mediating role in managing SCP. The findings reveal that upstream and operational SCC drivers adversely impact the SCP. Furthermore, the impact of downstream complexity on SCP is moderated through operational complexity drivers. The result explains the theoretical relation among SCC drivers supported by empirical validity.

Practical implications

The outcome offers practical relevance to supply chain (SC) managers in SCC and SCP management. Knowing the effect of SCC drivers among themselves and on SCP will facilitate the SC managers in devising the right strategies. The study provides a framework for prioritizing the resource in addressing the SCC issues among many.

Originality/value

The study addresses the apparent gap in the literature by modeling the impact of SCC drivers on SCP, which remained largely unexplored. First, it contributes to developing complex relationships among SCC drivers. Second, the direct and mediated causal effect of the SCC drivers individually and combinedly on SCP are explicated.

Organizational Behavior in Green Supply Chain Integration: Nexus Between Information Technology Capability, Green Innovation, and Organizational Performance

Stakeholder pressure and public awareness of environmental protection drive organizations to improve environmental practices in the supply chain (SC), such as green supply chain integration (GSCI) and green innovation (GI). The use of information technology (IT) is crucial to manufacturing organizations' GSCI and performance. However, the research on the relationship between IT capabilities, GSCI, GI and organizational performance is still limited. Therefore, empirical research is needed on the cognitive thinking of employees using IT capabilities to improve GSCI and organizational performance. The data for this study comes from SC personnel in manufacturing organizations through a structured questionnaires and was analyzed by employing structural equation modeling. Based on the results, this paper concludes that organizational IT capabilities positively affect the GSCI and improve organizational performance (environmental and operational performance). Furthermore, the study discovered that GI increases organizational performance and acts as a positive mediator in the link between GSCI and performance. The findings contribute to existing GSCI and GI knowledge, which can provide a bird's eye-view to develop an organization's IT capabilities to achieve competitive performance goals.

Understanding dynamic distribution capabilities to enhance supply chain performance: a dynamic capability view

Purpose

The purpose of this paper is to evaluate and understand the factors that contribute to the enhancement in the process of supply chain activities, specifically among manufacturing industries.

Design/methodology/approach

This paper follows the quantitative approach by disseminating a structured questionnaire to supply chain practitioners working in manufacturing industries. A sample of 109 responses is gathered from senior employees involved in sales and operations planning. Exploratory and confirmatory factor analyses are performed to evaluate the reliability and validity of the model. Lastly, SmartPLS is used to test the hypotheses proposed in the study.

Findings

The findings revealed that demand sensing and managing practices positively impact supply chain performance by creating dynamic distribution capabilities. It is observed that distribution capabilities integrate both efficient and effective handling of resources. However, demand management practice has insignificant relationship with supply chain performance.

Research limitations/implications

The authors suggest that supply chain management must expand in firms, and importance must be given as supply chain performance can provide competitive advantage in order to sustain in today's competitive market.

Practical implications

The findings can help decision-makers working in the planning process by identifying the right tools to sense the market and react accordingly.

Originality/value

This paper is an initial effort to understand the dynamic distribution capabilities by establishing the link with the studied variables, especially in the manufacturing industries in Pakistan.

A contingency theory perspective of environmental management: Empirical evidence from entrepreneurial firms

This article examines the roles of organizational structure of decision-making and external pressure in determining the practice of environmental management. Using contingency theory, this study argues that having a decentralized structure, entrepreneurial firms are able to adapt to external pressure while implementing environmental management. The data were drawn from 106 small and medium-sized firms in the United Kingdom. The study found that a decentralized structure is positively associated with the practice of environmental management while external pressure from global awareness and social relationships has less impact on firms’ environmental management. Interestingly, the impact of decentralized structure on environmental management is strengthened in the context of high level of technological dynamic. Overall, the findings of the study have provided some recommendations to theory and practice of environmental management especially in the context of entrepreneurial firms.

Supply chain integration and export performance: the mediating role of supply chain performance

Purpose

The purpose of this study is to examine the effect of supply chain integration (SCI) in terms of supplier, customer and internal integration on supply chain performance (SCP) and export performance (EXP). The effect of SCP on EXP is also explored. This study further seeks to examine the mediating effect of SCP on the relationship between the types of SCI and EXP.

Design/methodology/approach

The population of this study consists of manufacturing companies in different industries in Jordan. Data were gathered using self-administered questionnaires; managers from 271 companies responded to the survey. The study constructs were assessed for validity and reliability, and it was ensured that acceptable levels of these tests were obtained. Structural equation modeling (SEM) was used to test the study hypotheses.

Findings

The findings showed that supplier and customer integration were not drivers of EXP, but internal integration positively impacted EXP. In addition, internal and customer integration positively affected SCP, while supplier integration did not. Also, SCP positively impacted EXP. Furthermore, customer integration and internal integration indirectly impacted EXP through SCP.

Practical implications

Manufacturers should establish both intra- and inter-organizational collaborations to improve their performance. Specifically, managers in developing countries need to pay substantial attention to internal integration, as it is the key antecedent of both SCP and EXP. Furthermore, managers must be aware of the essential role of customer integration in improving SCP and subsequently EXP. Therefore, they should make long-term plans to integrate and incorporate key customers. In addition, managers are advised to reconsider their current relationships with suppliers. By failing to take advantage of the valuable expected contribution of supplier integration, manufacturers may lose export opportunities to international competitors.

Originality/value

The present study addresses an evident gap in the available literature regarding the effect of SCI on EXP. It tests a comprehensive model underlining the role of SCP on the relationship between SCI types and EXP. This study is also valuable because it was conducted in a developing country. Generally, manufacturing companies in developing countries face more SC-related difficulties than those in developed countries; these challenges can limit the export abilities of manufacturers in developing countries. The study offers important implications for the managers of manufacturing companies to improve their SCP and, subsequently enhance their EXP.

The Integration of Lean and Resilience Paradigms: A Systematic Review Identifying Current and Future Research Directions

Integration of the lean and resilience paradigms has attracted increasing attention among scientists and practitioners. In an interconnected world, the need to be resilient involves increased readiness to deal with risks from both outside and inside an enterprise, and to be lean involves maximizing value while minimizing waste. The combination of these requirements has been the catalyst for a move towards lean–resilience operations. To better understand this trend, which seeks to help firms retain a competitive position and survive disruptions, this paper provides a systematic literature review of 53 articles identified through the C-I-M-O (context-intervention-mechanism-outcome) framework and examines them using descriptive and content analysis. The results trace the growth of lean–resilience research from its infancy to its current advanced state. This paper also identifies for the first time the lack of structured research on the number and categories of implemented practices and their associated benefits. To address this deficiency, a concept map is developed to provide guidance on the topic, identify gaps and inconsistencies in the literature, understand the state of development and suggest future research directions. The results are used to identify four dominant streams: application, compatibility, integration, and impact assessment in the context of the supply chain, conceptual development and operational research of various organizational and industry sectors. Further topics for investigation are recommended in the form of research questions. The proposed concept map is intended to assist researchers and practitioners to develop knowledge about the integration of lean and resilience paradigms in new contexts and formulate more effective deployment strategies.

Applying quality concepts to achieve environmental sustainability in the freight transport sector – reviewing process management and lean

Purpose

The purpose of this paper is to revisit lean manufacturing and process management to review how these have targeted environmental sustainability and determine whether these have the potential to achieve environmental sustainability in small- and medium-sized companies within the freight transport sector.

Design/methodology/approach

The methodology for this paper was divided into three steps. The first step involved a narrative literature review, including previously designed search strings. The second step involved a snowball approach, where the identification of new sources departed from previously selected articles. The third step included a completing narrative review to search for the most recent articles published related to the purpose. The analysis was based on the identification of benefits, challenges and the potential of lean and process management to deal with environmental demands among transport companies.

Findings

The findings suggest a potential of lean and process management for achieving environmental sustainability, if adapted appropriately. The potential is on the operative and strategic levels, respectively.

Research limitations/implications

This study included two of the concepts from the quality movement from a literature perspective. Hence, there is a need for research to evaluate these results empirically. Additionally, other aspects should be studied within the quality movement for achieving environmental sustainability.

Originality/value

This paper aims to be a basis and a path for further theoretical and empirical research for the quality movement to support environmental sustainability. This paper particularly aims to fill part of the gap in the literature on how the freight transport sector can enhance environmental sustainability in its operations.

The Relationship Between Market Environment Dimensions and Availability of Malaria Pills in Uganda

Introduction

This study sought to examine the contribution of relationship building (in terms of collaboration, information sharing and supply chain interdependence) on the availability of malaria treatment pills in public hospitals in Sub-Saharan Africa using data from Uganda.

Methods

By means of a cross-sectional survey research design, the study used a questionnaire strategy to collect quantitative data. Out of the 320 questionnaires that were distributed in 40 public hospitals, 283 were answered and returned, which yielded an 88% response rate. Structural equation modelling (SEM) was used to establish the relationship between measured variables and latent constructs.

Results

Drawing on the survey results, the confirmatory factor analysist and the Structural Equation Modelling clearly demonstrate that relationship building (in terms of collaboration, information sharing and supply chain interdependence) significantly influences the availability of Artemisinin-based combination therapies in public general hospitals in Uganda.

Conclusion

Policy-makers should focus on developing cheaper information technology tools to exchange information regarding stock levels, forecasting, quantification, orders, and dispensing. This study developed a measurement model for an inter-hospital relationship, using relational view theory, and it employs dimensions in terms of information sharing and supply chain interdependence to predict and explain the availability of malaria pills in government hospitals.

Industry 4.0 technologies as enablers of lean and agile supply chain strategies: an exploratory investigation

Purpose

Lean and agile are essential supply chain management (SCM) strategies that enhance companies' performance. Previous studies have reported the capabilities of different SCM strategies to enhance performance; however, the emergence of Industry 4.0 technologies has bred focus on the possibility of attaining more levels of operational performance. Despite being demonstrated helpful at enabling supply chain (SC) strategies, the literature linking Industry 4.0 with SCM strategies is still in its infancy. Thus, this work investigates the degree to which “Industry 4.0 technologies” enable the implementation of lean and agile practices and subsequently assesses the potential performance implications of integrating Industry 4.0 technologies with the SC operations.

Design/methodology/approach

The work employs an exploratory case study approach using empirical data from selected organisations drawn from an Estonian manufacturing cluster and digital solution providing companies. The data collected via interviews were used to assign numerical scores and subsequently aggregated across the five cases for the research variables of interest. The work is crowned with a model grounded on the cross-case analysis to depict which technologies impact each of the lean and agile practices.

Findings

The analysis enabled comprehension of the potential impact and level of importance of the main Industry 4.0 technologies on lean and agile practices and ultimately the potential implication on performance. The findings revealed that the technologies have a high impact on the practices. Although the impacts are of varying degrees, the analysis provides means to identify the technologies with the most significant impact on lean and agile SCM and the sets of practices with the greatest likelihood of being enabled by various digital technologies.

Practical implications

The work presents various lean and agile practices that practitioners can deploy to operations, alongside the technologies that could support the implementation of the practices towards achieving the various performance measures. Also, it provides some guides for the digital solution providing companies towards understanding the SCM practices that can be improved upon by various digital technologies. This enables them to have more saleable proposals for intending companies who might be sceptical about transiting into the digital operation phase.

Originality/value

This is the first attempt to empirically address the connection between Industry 4.0 technologies and the integrated lean and agile strategies despite literature backing of the complementary nature of the two SCM strategies.

A Study of Inbound Logistics Mode Based on JIT Production in Cruise Ship Construction

The cruise market has developed rapidly in recent years. The opulence of the cruise market has also augmented the demand for the cruise construction industry. Cruise ship construction is a huge and intricate heavy industry that can cause serious environmental problems. Therefore, optimal use of advanced logistics systems, to meet the demands at the lowest possible cost and unnecessary waste, has become a key issue. This paper developed two typical inbound logistics system modes based on JIT (Just In Time)-logistics policy and formulated two single-objective nonlinear models to simultaneously determine the ordering strategy under the inbound logistics system and the optimal selection strategy of two typical inbound logistics modes. Numerical experiments depicted the variations of optimal inbound logistics mode over three different kinds of cruise parts. These two models could provide insights in making inbound logistics decisions, and serve as a reference in the mass customization logistics service for cruise ship construction to control costs, which is helpful for promoting the sustainability of the cruise market.

The outcomes of providing lean training to strategic suppliers: a Swedish case study

Purpose

The aim of this study is to investigate the outcomes of a leading Swedish truck maker (referred to as “TruckCo” for confidentiality reasons) providing lean training to its strategic suppliers.

Design/methodology/approach

A single in-depth case study is conducted, using on-site semi-structured interviews with representatives from TruckCo and its suppliers for data collection.

Findings

The lean training program resulted in four main outcomes. First, financially unstable suppliers were less receptive to the lean training program than financially stable suppliers. Second, the suppliers became easier to collaborate with over time, through improving their internal ways of working and thus creating more trust in terms of reliability. Third, the suppliers improved their ability to identify possible problems that could jeopardize deliveries. Fourth and finally, the suppliers improved their delivery precision.

Research limitations/implications

One limitation of this study is that its findings are based on a single in-depth case study. Another limitation is that all the involved companies originate from Sweden. These limitations should be considered in attempts to replicate or further test the reported findings.

Practical implications

This study provides insights into how a manufacturer can teach lean management to suppliers, and how suppliers can be involved in a manufacturer's journey towards a leaner supply chain. Furthermore, the study reflects more generally on the potential outcomes of a manufacturer providing lean training to suppliers.

Originality/value

This study highlights both TruckCo's and the suppliers' view of the outcomes of the lean training program and discusses how different suppliers adopt the taught lean practices. Avenues for future research are proposed as well.

Common resources-resource bundling-performance: the mediating role of resource bundling in container terminal operations

Purpose

Building on the resource-based view (RBV) perspective of common resources, the objective of this paper is to empirically examine the impact of container terminals' common resources (i.e. government support and terminal resources) on resource bundling strategies and subsequent effect on service performance.

Design/methodology/approach

Using cross-sectional survey data collected from a sample of 216 respondents of Indonesia's container terminals, this study used structural equation modeling (SEM) to test the hypothesised relationships between common resources, resource bundling strategies and service performance.

Findings

Government support and terminal resources (personnel and physical), both as sources of common resources when bundled effectively, are found to have positive and significant effect on terminal service performance. The resource bundling strategies fully mediate the relationship between container terminals' common resources and service performance.

Practical implications

The study introduces the notion of common resources to container terminal managers in contrast to the valuable, rare, inimitable and non-substitutable (VRIN) types. It is recommended that appropriate resource bundling strategies can turn the common resources into VRIN resources that can be used to obtain desired service performance.

Originality/value

RBV theorists suggest that resources that are VRIN types can be the source of competitive advantage. However, the resources can also be common, basic and valuable, a fact that is rarely investigated in the literature. These common resources can be bundled judiciously with other pre-existing resources to create VRIN resources. This research enriches the RBV by empirically validating that VRIN resources are embedded within various common resources bundling strategies.

Supply chain cost research: a bibliometric mapping perspective

Purpose

The purpose of this paper is to review the literature on logistics and supply chain costs to provide an analysis of sources of publication, citations and authorship using bibliometric analysis techniques (VOSviewer and CitNetExplorer tools).

Design/methodology/approach

A review of 756 articles published during the period 2014 to 2019 referenced in the Scopus database was performed. The review was limited to articles published in English and directly related to logistics and supply chain costs.

Findings

The research identified more than 2,000 authors representing more than 5,000 keywords and 10,000 references from a total of 155 journals investigated. A critical synthesis of the resulting data revealed several insights about various aspects of studies in this field. For instance, the review identified a scarcity of academic publications in three key areas, namely “supply chain,” “optimization” and “transportation”, which are concepts focused on the total supply chain.

Originality/value

This research highlights important areas of attention for both researchers and practitioners considering costs associated with logistics and supply chain operations and strategies. The results can also help identify thematic areas, journals and topics for future research. The paper identifies and proposes research areas to contribute to the literature when challenges to investigating logistics and supply chain costs are discussed.

Effect of information technology-enabled supply chain integration on firm's operational performance

Purpose

Using the assumptions of the resource-based view, relational view and swift, even flow theories and the overarching principles of supply chain management, the study aims to test the role of information technology (IT) capability (cross-functional application, supply chain application and data consistency) in enabling supply chain integration (SCI; internal, customer and supplier integration) and the impact of SCI on firm's operational performance in terms of quality, delivery, production cost, inventory level, customer service and product-mix flexibility.

Design/methodology/approach

The structural equation modeling approach is used to test theoretical predictions underlying the relationship among dimensions of IT capability, SCI and operational performance based on data obtained from senior executives of 108 large manufacturing firms listed in the Tokyo Stock Exchange.

Findings

The results suggest that IT capability has positive impact on SCI, except for data consistency, which is found to have negative impact on internal integration. The results further indicate that SCI, especially customer integration, has positive and significant impact on all operational performance indicators.

Practical implications

The findings inform future initiatives associated with the SCI improvement via specific IT capabilities. When undertaking such initiatives, managers are advised to consider the differential impact of the following IT capabilities on SCI: cross-functional applications, supply chain applications, and data consistency capability.

Originality/value

The study makes an empirical contribution to the body of knowledge by demonstrating the value of the multidimensional representation and analysis of IT capability, SCI, and operational performance given a differential and even opposed influence by some of the dimensions in specific business contexts.

Antecedents to buyer-supplier coordination in the pharmaceutical supply chain

Purpose

The purpose of this study is to understand the antecedents that influence supply chain coordination in the pharmaceutical supply chain using the transaction cost analysis framework.

Design/methodology/approach

Data from 156 retail pharmacies on their relationship with the pharmaceutical wholesalers are used to test the hypotheses.

Findings

The findings of this paper show the importance of antecedents that are based on the transactional cost theory, such as asset specificity and environmental uncertainty. These antecedents impact the supply chain process coordination at different levels – transactional, operational and strategic.

Research limitations/implications

Future research may investigate additional antecedents using other theoretical lenses.

Practical implications

Pharmaceutical wholesalers are dependent on pharmaceutical manufacturers for the supply of products and face intense competition that results in lower profit margins. Given that the pharmaceutical industry is strictly regulated, the wholesaler facilitates regulatory compliance of the manufacturers in the distribution process by coordinating with them. But the wholesalers do also face a constant threat from the manufacturers, who could potentially bypass the wholesalers (disintermediation) and go directly to the pharmacies. To counterbalance the dependence, the wholesalers strive to achieve loyalty with the retail pharmacies. Through supply chain coordination, the wholesalers achieve efficiency in procurement for the pharmacies, thus reducing cost and improving their competitive advantage.

Social implications

Supply chain coordination in the pharmaceutical supply chain improves the safety and security of the pharmaceutical distribution system.

Originality/value

This paper contributes to the supply chain coordination stream of literature. To the best of the authors’ knowledge, this is the first study to develop the three levels of process coordination in the pharmaceutical supply chain context. This paper shows how process coordination can be achieved between the dyad without vertical integration.

Exploring the consequences of judgmental and quantitative forecasting on firms' competitive performance in supply chains

Purpose

The purpose of this study is to examine the impacts of different forecasting methods (judgmental, quantitative and mixed forecasting) on firms' supply chains and competitive performance.

Design/methodology/approach

Working with three groups of manufacturing companies, we explore the consequences of judgmental, quantitative and mixed forecasting methods on firms' competitive performance in supply chains. The validity of constructs and path relationships was examined using structural equation modeling (SEM).

Findings

Our findings indicate that supply chain efficiency influences both cost reduction and customer satisfaction. In addition, the three dimensions of supply chain performance are shown to be direct antecedents of competitive performance. Our empirical results reveal that although all studied forecasting methods meaningfully influence supply chain performance, the mixed method, compared to the other two methods, has greater capabilities to enhance supply chain performance.

Originality/value

This research provides originality and insight into supply chain practices through forecasting methods to improve competitive performance.

Exploring the relationship between ICT, SCM practices and organizational performance in agri-food supply chain

Purpose

This paper presents the concerns in agri-food supply chain. Further the research investigates the role of information and communication technology (ICT) in agri-food supply chain and determines the impact of supply chain management (SCM) practices on firm performance.

Design/methodology/approach

The theoretical framework was proposed for the study on the basis of existing literature. Data for the study was collected with the help of structured questionnaire from 121 executives and officers of the public food distribution agency. Partial least square (PLS)–structured equation modeling was employed to test the framework and hypotheses.

Findings

The results indicate that ICT and SCM practices (logistics integration and supplier relationships) have a significant relationship. Furthermore, SCM practices (information sharing, supplier relationship and logistics integration) have a significant and positive impact on performance of the organization.

Research limitations/implications

Further research could be carried out to test the moderation effect of SCM practices between ICT and organizational performance (OP). Extending the research study to the companies operating in other sectors can enhance the external validity of the study and improve the accuracy of parameters examined.

Practical implications

This study can be of interest to the agri-food industry as well as other industry practitioners interested in improving the performance of the organization from the view of supply chain.

Originality/value

The outcomes of this study have important implications that translate into a series of recommendations for the management of public food distribution as well as other agri-food-based supply chains.

Strategic issues in supply chain management of Indian SMEs due to globalization: an empirical study

Purpose

In globalized market, organizations of all sizes are having huge opportunities for growth. However, due to various resource constraints, it has become challenging for small and medium enterprises (SMEs) of growing economies to survive in this global competition. Effective supply chain management (SCM) can be a major driving factor for success of Indian SMEs in dynamic world economy. SMEs face many operational challenges while implementing effective SCM. The purpose of this paper is to study different strategic issues for successful implementation of SCM in Indian SMEs.

Design/methodology/approach

A survey has been conducted in Indian SMEs of different sectors. Major constructs of survey instrument are motivations, hindrances, investment priorities, supply chain practices and performance. In total, 1,500 Indian SMEs have been approached for collecting response through survey instrument. 257 complete responses were finalized. Statistical analysis of data acquired from survey is performed by using SPSS software.

Findings

It is observed that managing customers, organization resources, and inventory are main SCM practices. Major investment areas are systems for developing quick response and quality management. Currently, human resource and knowledge management have been found to be less priority areas for SMEs. The major focus of Indian SMEs is on cost and lead time reduction by having effective SCM.

Originality/value

Novelty of this study is that strategic issues for effective SCM in context to Indian SMEs have been analyzed. The findings of the study will help Indian SMEs in doing strategic planning for being competitive in the global market.

Supply chain lead time reduction in a pharmaceutical production warehouse – a case study

Purpose

The purpose of this study is to apply value stream mapping (VSM) in Malaysian pharmaceutical production warehouse. A current and future state value stream map from the raw material receiving end to the production unit was developed to find out waste and unwanted lead time. It was very much essential to cut down the supply chain lead time at the initial phase as the raw material unloading, sorting, temporary storage and dispatch to production were seen contributing to a huge lead time build-up.

Design/methodology/approach

The study was initiated with the selection of a product family, construction of the current state map, identification of various wastes and the development of future state map.

Findings

The expected outcomes of the study include the quantification of wastes, improvement in value-added percentage and lead time reduction.

Research limitations/implications

The study was carried out in a single pharmaceutical company. The results of the study are deployable and can be functional in similar production organizations. Contrary to common VSMs that capture core production processes, this study provides strong insights that shall help design lean supply chains, especially in the pharmaceutical domain. This paper has also addressed the viability of the lean in the pharmaceutical warehouse and the reduction in lead time to improve demand forecasting, marketing and sales.

Practical implications

The results of this study have indicated that a significant reduction in pharmaceutical warehouse supply chain lead time is possible as a result of the implementation of VSM from the supply chain’s perspective.

Social implications

The insights from this study help in understanding the pharmaceutical supply chain risks and their outcomes.

Originality/value

The paper reports a real-time study conducted in a warehouse of a pharmaceutical organization. Hence, the contributions are original.

Risk management integration and supply chain performance in ISO 9001-certified and non-certified firms

Purpose

The purpose of this paper is to explore the mediating effect of supply chain risk management integration (RMI) on the relationship between supply chain logistics performance (LP) and supply chain cost performance (CP), as well as on the relationship between LP and supply chain service performance (SP). The impact of CP and SP on overall firm performance (FP) is also explored. ISO 9001-certified firms and non-certified firms are assessed to determine whether superior risk-based thinking, as required in the latest ISO 9001 standard, has a positive impact on the different relationships.

Design/methodology/approach

A theoretical model is developed and tested based on the participation of 140 supply chain managers. The proposed structural equation model positively relates LP, RMI, CP and SP. RMI is positively linked to CP and SP, while CP and SP are positively related to overall FP. Two subsamples (a group of 63 ISO 9001-certified firms and a group of 77 non-certified firms) are used to evaluate the model.

Findings

For certified and non-certified firms, LP is positively related to RMI, CP and SP, and SP and CP are positively related to FP. However, for certified firms, RMI partially mediates the relationship of LP with both CP and SP, while for non-certified firms, RMI does not mediate these relationships. The findings suggest that ISO 9001-certified firms are able to leverage RMI efforts to impact positively on supply chain performance, whereas non-certified firms are not.

Research limitations/implications

The study findings are based on the perceptions of managers. Even though the majority of the 63 certified firms included in this study were ISO 9001:2015 certified, the model results do not differentiate between companies certified to the 2008 version of the standard and the 2015 version (which specifically requires demonstration of risk-based thinking).

Practical implications

This study suggests that ISO 9001 provides a framework for risk management processes and collaboration with supply chain partners to positively impact the relationship of LP with cost and SP.

Originality/value

This is one of the first studies to characterize the benefits of using a structured approach for risk-based thinking that is associated with ISO 9001.

An empirical investigation of supply chain operations reference model practices and supply chain performance

Purpose

The purpose of this paper is to develop and validate a scale measurement of supply chain operations reference (SCOR)-related performance indicators and proposed constructs, SCOR-related performance indicators as practices within the Indian manufacturing sector.

Design/methodology/approach

A literature-based model on SCOR processes with five constructs and respective performance indicators was empirically validated by using a structured questionnaire. A total of 155 respondents among Indian manufacturing sector participated in this research, and the returned questionnaires were analyzed by using structural equation modeling.

Findings

The study established a relationship among the SCOR-related performance indicators and overall supply chain performance indicators (OSCPI). The moderation effect of demographic characteristics, namely, employee size, company age and type of company showed significant differences between SCOR-related performance indicators and overall supply chain indicators.

Research limitations/implications

The scope of the study is limited to specific Indian manufacturing firms. The survey could not represent whole population of manufacturing sector.

Practical implications

The findings assist managers/supply chain practitioners in improving the performance measures identified using the standard framework, i.e., SCOR processes, overall supply chain performance measures as standard practices for Indian manufacturing sector for a profitable and sustainable business growth in global environment.

Originality/value

This research holds a value for suggested practices under SCOR processes and the proposed model for OSCPI, a path finder/performance measurement tool for supply chain professionals in the Indian context.

Critical success factors for Lean implementation in IT outsourcing relationships

Purpose

Following positive results of Lean implementation in manufacturing environments, Lean has become an emerging philosophy for clients and suppliers of information technology (IT) services. However, how to implement Lean in IT outsourcing relationships has been addressed sparsely in academic literature. The purpose of this paper is to investigate critical success factors (CSFs) for implementing Lean in IT outsourcing relationships. Key findings, implications and avenues for future research are discussed.

Design/methodology/approach

Six IT outsourcing relationships were qualitatively investigated by means of 36 semi-structured interviews. CSFs were identified based on interview transcription analyses, selection techniques and expert reviews.

Findings

In total, 16 CSFs for Lean implementation in IT outsourcing relationships are identified and described.

Practical implications

The CSFs presented in this paper indicate key areas that deserve managerial attention to steer Lean implementation efforts in IT outsourcing relationships in a favorable direction.

Originality/value

This study is the first to describe the phenomenon of “Lean IT outsourcing” and provides researchers and practitioners with a foundation to further examine Lean implementation in IT outsourcing relationships.

The relationship between investments in lean practices and operational performance

Purpose

Prior research has shown that operational intellectual capital (OIC) and investments in lean practices (ILP) lead to better operational performance. However, there have been no empirical studies on the synergetic effects between OIC components and ILP. More specifically, the question – can the efficacy of ILP be increased through OIC? – has not been studied. Accordingly, the purpose of this paper is to report the empirical results of potential synergetic effects between OIC, as a knowledge-based resource, and ILP.

Design/methodology/approach

The empirical data used for this study were drawn from the fifth round of the Global Manufacturing Research Group survey project (with data collected from 528 manufacturing plants). The hypotheses are empirically tested using three ordinary least square (OLS) models.

Findings

The authors’ findings highlight the importance of leveraging a system of complementary knowledge-based resources (OIC dimensions) and addresses the need for the reformulation of lean theory in terms of the emergent knowledge-based view of the firm. The results facilitate greater understanding of the complex relationship between ILP and operational performance. Building on the contribution of Menoret al.(2007), the authors argue that OIC represents a strategic knowledge-based resource that is valuable, hard to imitate or substitute and, when leveraged effectively, generates superior operational and competitive advantage.

Practical implications

From a managerial standpoint, this study provides guidelines for managers on how to leverage OIC to enhance the efficacy of ILP. The authors argue that firms consider investing in OIC to increase the return from ILP, which, in turn, will enhance their operational performance and provide competitive advantage. The authors findings provide strong evidence of the importance of human, social and structural capital to enhance the efficacy of ILP.

Originality/value

This is the first research paper that extends the application of the intellectual capital theory in lean literature, and argues that the OIC contributes to the efficacy of ILP. The analysis facilitates greater understanding of the complex relationship between OIC dimensions, ILP and operational performance.

The influence of big data analytics management capabilities on supply chain preparedness, alertness and agility

Purpose

The importance of big data analytics (BDA) on the development of supply chain (SC) resilience is not clearly understood. To address this, the purpose of this paper is to explore the impact of BDA management capabilities, namely, BDA planning, BDA investment decision making, BDA coordination and BDA control on SC resilience dimensions, namely, SC preparedness, SC alertness and SC agility.

Design/methodology/approach

The study relied on perceptual measures to test the proposed associations. Using extant measures, the scales for all the constructs were contextualized based on expert feedback. Using online survey, 249 complete responses were collected and were analyzed using partial least squares in SmartPLS 2.0.M3. The study targeted professionals with sufficient experience in analytics in different industry sectors for survey participation.

Findings

Results indicate BDA planning, BDA coordination and BDA control are critical enablers of SC preparedness, SC alertness and SC agility. BDA investment decision making did not have any prominent influence on any of the SC resilience dimensions.

Originality/value

The study is important as it addresses the contribution of BDA capabilities on the development of SC resilience, an important gap in the extant literature.

Achieving sustainability through the lean and resilient management of the supply chain

Purpose

In the present work, lean and resilient practices applied to supply chains are studied in order to evaluate their impact on the three dimensions of sustainability. Additionally, the mutual impact of lean and resilient supply chain practices is investigated. The paper aims to discuss these issues.

Design/methodology/approach

The aerospace sector and its supply chain are chosen, since lean and resilient practices have been proven relevant in the sector. A methodology based on Interpretive Structural Modeling approach is applied in order to identify the existing relationships between lean and resilient supply chain practices and their impact on the three different dimensions of sustainability.

Findings

The results reveal synergetic effects between lean and resilient practices. The former practices act as drivers of the latter practices. Hence, lean practices lead to direct and indirect effects in achieving supply chain sustainability.

Research limitations/implications

The relationship between lean and resilient practices has been studied for the aerospace sector. Different sectors may lead to different results as the practices considered important in each sector may differ as well as the way in which each practice is implemented.

Originality/value

This study highlights the relationship existing between lean and resilient supply chain practices and their impact on sustainability. Additionally, several managerial implications are drawn out to help managers make better decisions.

Achieving supply chain excellence through supplier management

Purpose

The purpose of this paper is to develop a supplier selection and management program to improve overall supplier performance.

Design/methodology/approach

Supplier performance is measured in terms of quality and delivery within a fast moving consumer goods (FMCG) business of a multinational company based in Thailand using a case study methodology. The quality and delivery related data were collected from daily deliveries at the manufacturing plant both before and after implementing the supplier management program.

Findings

Findings of the study suggest that the selection of suppliers based on their performance is important for manufacturing firms. Moreover, the supplier selection and management program can contribute effectively to improving suppliers’ performance.

Research limitations/implications

This case study has been conducted based on a single company within the FMCG industry. Hence, it limits the generalizability of the findings across industries.

Practical implications

The study provides a real-life tool for practitioners to learn about the importance of strategic decision-making process pertaining to the supplier selection and management program.

Social implications

This study demonstrates that through a transparent supplier evaluation process, the firms can develop trust and long-term relationship with their suppliers for pursuing the goals of product development and innovation.

Originality/value

Implementing a supplier management system is a critical step in enhancing an organization’s overall competitiveness. To develop an effective supplier management system firms must have objective measures and share those with their suppliers. Developing metrics for suppliers’ evaluation is the key to achieving continuous improvement as evidenced in this case.

Firms’ entrepreneurial orientation and the adoption of quality management practices

Purpose

The purpose of this paper is to investigate the relationship between firms’ entrepreneurial orientations (EOs) and the adoption of quality management (QM) practices. The role of environmental uncertainty as the moderator of the former relationship is considered.

Design/methodology/approach

Using theories and related empirical evidences, two research hypotheses were argued and proposed. These hypotheses were tested using data collected from a unique sample of 301 Uruguayan and Argentinean manufacturing companies with more than 20 workers assessed through personal interviews. The empirical methodology includes statistic treatment for scale validation, statistic descriptive techniques and regression analysis.

Findings

Firms’ EO is determinant for the adoption of QM practices. The environmental uncertainty strengthens the positive impact of EO on the adoption of QM practices, mainly human resource management practices.

Research limitations/implications

The data come from a particular geographical context and refer to manufacturing plants. It would be interesting to extend the scope of this study to services. The collection of data from only one individual in each organization can generate a potential problem with using single-source information.

Practical implications

Innovative manufacturing companies that try to adopt advanced QM practices will benefit from hiring managers who are able to take risks, and to seek a long-term orientation toward being aggressive with their environment, especially in highly competitive contexts. Mustering these features may ensure perseverance in the adoption of advanced manufacturing practices, even in the presence of complex and uncertain environments.

Originality/value

The principal contribution of this paper is that it advances the study of the intersection between operations management and entrepreneurship, analyzing how firms’ EO affects the adoption of new methods and practices in manufacturing. Furthermore, it is important to highlight the fact that the authors use data from a unique survey of manufacturing companies from Argentina and Uruguay in the southern cone of Latin America. The authors also contribute to the open debate about the universality of QM practices.

Benchmarking the logistics management implementation using Delphi and fuzzy DEMATEL

Purpose

From last few decades, logistics management (LM) constitutes a global concern among organization’s supply chain (SC) to improve their business effectiveness. The purpose of this paper is to uncover and analyze the critical factors (CFs) related to the implementation of effective LM concept and benchmark the SC performance.

Design/methodology/approach

The most common (16) CFs were identified and selected through literature and use of the Delphi method. Subsequently, the selected most common CFs were analyzed to distinguish their causal relations using the fuzzy Decision Making Trial and Evaluation Laboratory (DEMATEL) technique under unclear surroundings. A case example of Indian Logistics Company is also discussed to reveal the practical applicability of the research.

Findings

Provision of the effective information communication and technological developments in the system and Management dedication, support and involvement CFs are found to have the top most influences in the effective implementation of LM. This paper also groups the CFs into cause and effect relationship which provides valuable insights for analyzing the factors in successful implementation of LM.

Practical implications

This work attempts to understand the different CFs, their relative position and the importance rating in the system, due to which, managers can differentiate the factor which greatly affects the concepts of implementing LM, and thus, improvements can be made accordingly.

Originality/value

First, this work offers 16 CFs to LM implementation from a SC scenario. Second, in the context of contributing to the theory, the combined Delphi and fuzzy DEMATEL-based model is provided that helps in managing the logistic related issues effectively.

Impact of organizational culture on quality management practices: an empirical investigation

Purpose

The purpose of this paper is to empirically examine the organizational culture (OC) of the competing values framework (CVF) on quality management (QM) practices. Specifically, it tests OC on two views, QM practices, i.e. the infrastructure quality and core QM practices.

Design/methodology/approach

The proposed hypotheses were tested using empirical data drawn from 262 manufacturing organizations in India. The research model developed was analyzed using structural equation modeling technique.

Findings

The findings of this study revealed that the hierarchical and rational cultures are the dominant types of culture, and top management commitment and Six Sigma structure are the most important aspects of the infrastructure and core QM practices in Indian manufacturing organizations. Further, the results of the study showed that group culture and development culture are the most supportive culture types for both infrastructure and core QM practices. On the contrary, hierarchical and rational culture types are the least supportive for infrastructure and core QM practices. The study proposes the need for the mixed culture approach that facilitates the adoption of business strategies

Practical implications

Before implementing infrastructure and core QM practices, managers must understand the importance of cultural values in their organization to facilitate effective implementation of QM.

Originality/value

This paper contributes to the existing literature by providing empirical evidence leading to the relationship between OC and QM practices. This is the first study that empirically examined the Indian cultural context using CVF, thus contributing to the scarce body of literature particularly in the developing countries.

A matter of perspective – the role of interpersonal relationships in supply chain risk management

Purpose

The purpose of this paper is to, first, explore the role of interpersonal relationships between buying and supplying firms in the management of supply chain disruptions (SCDs). Interpersonal connections are proposed as “social lubricants” that can advance the knowledge about conventional interorganizational antecedents of firm resilience. Differentiating between high- and low-complexity manufacturing industries, the study then looks into how managers from these industry clusters can leverage the efficacy of these relationships through the appropriate use of interorganizational governance mechanisms.

Design/methodology/approach

Structural equation modeling is conducted with data collected from 229 manufacturing firms in Austria, Germany and Switzerland. Industry clusters are formed via a Q-sort exercise.

Findings

Results support the assumption of a socially embedded, interpersonal dimension in buyer-supplier relationships that impact organizational-level resilience. It is suggested that investments in interpersonal skills and interpersonal complementarity are significant antecedents of both relational and re-deployable firm resilience. Surprisingly, no support was found for a positive impact of interpersonal information sharing on firm resilience, challenging findings from previous studies on an interorganizational level. Interorganizational governance and industry affiliation each have moderating effects on the performance of the resilience efficacy of interpersonal relationship antecedents, suggesting the existence of an important managerial lever.

Originality/value

Integrating the supply chain and behavioral science literature, this study is the first to investigate the interplay of interpersonal and organizational antecedents and their efficacy in the management of SCDs.

Structure-integration relationships in oil and gas supply chains

Purpose

Although studies have demonstrated the importance of supply chain integration (SCI) strategies in improving firm performance, very little is understood about how the organizational structure (OS) of focal firms affects the successful implementation of SCI initiatives across supply chains (SCs). Taking into consideration the importance of the oil and gas (O&G) industry, as well as the impact of uncertainties on OS and strategy choices, it is important to understand how OS and SCI affect the operational performance of O&G SCs. The paper aims to discuss this issue.

Design/methodology/approach

Taking a contingency approach and using a global sample of 181 O&G firms, this study examines the mediating role of internal, customer, and supplier integration on the relationship between three main dimensions of OS – the degree of centralization, formalization, and hierarchical relationships and operational performance, using structural equation modeling.

Findings

Findings reveal that OS dimensions negatively impact operational performance. Further testing for the mediation found that by increasing SCI, O&G SCs can mitigate the negative effect of high centralization, formalization, and hierarchical relationship on operational performance.

Research limitations/implications

Classifying OS into “structuring” and “structural,” this research provides evidence on which of the two has a stronger negative impact on operational performance. This is significant since it may be difficult for O&G companies to restructure and reform their OS.

Originality/value

This study examines the impact of OS and SCI on improving the operational performance of the O&G SCs. Theoretical and practical contributions to the field of operations management and organizational studies are also discussed.

Strategic lean actions for sustainable competitive advantage

Purpose

The purpose of this paper is to add to the quality management body of knowledge by solidifying the connection between operational and strategic aspects of lean transformation. Previous research has examined these issues in isolation, demonstrating mixed results in financial and operational efficiencies. The authors show that when operational and strategic changes are jointly considered the likelihood of success for lean transformation increases.

Design/methodology/approach

The authors provide a literature review of 109 peer-reviewed papers on lean manufacturing and qualitative analysis of 23 Baldrige award winners (2000-2014) that implemented lean to assess the importance of strategic actions in achieving a sustainable competitive advantage through lean transformation.

Findings

The authors find that lean transformation yields mixed results unless strategic actions are taken by senior management. These strategic actions include but are not limited to knowledge management, human resources, and business growth and can result in performance heterogeneity by improving the output/input ratio of the firm. This performance can then manifest as either doing the same level of business with fewer resources (a profit play) or doing more business with the same resources (a growth play). As specific examples, the authors analyzed Baldrige award winners for evidence of lean strategic action to drive performance gains. The authors suggest further model validation through directed interview and/or survey research.

Originality/value

This paper clarifies the need for jointly implementing lean tools with strategic actions. The findings provide more deliberate strategic actions for organizations wishing to increase the likelihood of success of lean transformation and ultimately improve quality.

The effect of strategic alignment on purchasing management

Purpose

This research aims to establish the role of the purchasing function’s strategic alignment in the relationship between well-established practices and performance in that function. It is argued that the strategic alignment of purchasing may have effects (direct, mediating and moderating effects) on the purchasing function’s operating performance.

Design/methodology/approach

The hypotheses derived from key studies about strategic and advanced purchasing practices are tested with data from 156 industrial companies using structural equation modelling methodology.

Findings

The results suggest that the effect of strategic alignment on the role of purchasing consists of mediated effects on purchasing performance through implementation of certain advanced practices. It was also concluded that strategic alignment – as well as the implementation of these advanced purchasing practices – fosters the implementation of differentiation strategies based on quality, dependability and flexibility rather than on the implementation of cost leadership strategies.

Research limitations/implications

Although it is a common practice in operations management research, the use of perceptual measures obtained from a single informant constitutes a noteworthy limitation. Future research should make an effort to combine different sources of information and to identify and use more objective indicators.

Practical implications

Top managers should take into account the need to involve the purchasing function in the firm’s strategic planning process.

Originality/value

The results not only confirm findings from previous literature as to the purchasing function’s strategic relevance but also help clarify the mechanisms that make this integration important.