Many companies make considerable efforts in implementing supply chain management systems to increase their competitiveness. In particular, there are significant investments in their ICT (Information and Communication Technology) and supply chain. However, considerable diversity exists in how well firms have been able to assimilate ICT and leverage the business value of it. In addition, studies on supply chains, particularly Real Time Enterprise (RTE) competence, which is cited for rapid information sharing and dynamic capabilities for each role in the supply chain, are insufficient. The purpose of this paper is to explore and evaluate effect of ICT utilization capabilities, including ‘ICT internal cooperative capabilities’ and ‘ICT operational flexibility capabilities’, on RTE capabilities (flexibility, visibility and prediction) and supply chain performance. To validate the research model proposed in the study, survey was conducted on companies using ICT along the supply chain of manufacturing industries. 216 data were used, SPSS and AMOS were used for the analysis methods. Study results showed that ICT internal collaboration capabilities affect agility, one of RTE capabilities, but not visibility and prediction, and ICT operational flexibility capabilities have affected all three RTE capacities. And, RTE capabilities had a huge impact on supply chain performance as expected. In this paper, it has been found that the ICT capabilities in manufacturing are an important factor in improving RTE capabilities that are important in the supply chain and improving the performance of the supply chain.
Introduction
Retail competition in Japan has become more intense because of multiple reasons. The income and population composition are changing, and many international retailers have entered the Japanese market. It is important for Japanese retailers to differentiate from competitors and maintain a competitive advantage in the long run. To do so, Japanese retailers focus on increasing customer value by controlling their value chains. Therefore, market orientation and supply chain orientation have become very important for Japanese retailers who try to expand their market shares in the Japanese retail market. This study develops and empirically tests a model of the impact of market orientation and supply chain orientation on business performance in Japanese retailing.
Theoretical Development
Previous literature provides evidence on the positive impact of market orientation on business performance (e.g. Cano et al., 2004; Murray et al., 2011; Morgan, 2012; Ngo & O’Cass, 2012). There are also a few studies in the context of retailing (e.g. Griffith et al., 2006; Kajalo & Lindblom, 2015; Moore & Fairhurst, 2003; Yu et al., 2014). However, only a few studies are focusing on the relationship between supply chain orientation and marketing orientation and the impact of their interplay on business performance (e.g. Martin & Grbac, 2003; Min et al., 2007). Market orientation can be seen as the foundation for customer relationship management. The effectiveness of customer relationship management depends heavily on market intelligence. To attract new customers and retain old customers firms have to satisfy not only existing needs but also latent needs. In retailing, market orientation is very important because the organization of retailing is based on the multi-unit organization where sales staff in stores is in close contact with customers and can get direct information from the customers. Supply chain orientation (SCO) is separated into two concepts: strategic supply chain orientation and structural supply chain orientation (Patel et al., 2013). Strategic SCO is defined as the supply chain directed motivation and objectives arising from executive strategic plans and decisions. Structural SCO is defined as the behaviors and actions related to supply chain management in the implementation of its strategic plan. Therefore, strategic SCO is the antecedent of structural SCO. In retailing, many retail buyers search and negotiate with the suppliers who have the ownership of strong brands and distribution networks. In the buying process, retail buyers can get market information from suppliers. Thus, a retailer can collect market information from internal and external sources. This information is useful for the retailer to not only make marketing plan but also to revise marketing plan during its implementation process. To sum up, customer relationship management and supply chain orientation have a positive impact on marketing capabilities. Similarly, marketing capabilities have a positive impact on business performance. The theoretical framework of the study is presented in Figure 1.
Data and Measurement
To test the framework, we conducted a mail survey (N=243) among Japanese retailers in 2017. The scales were adapted or developed from existing literature. Market orientation (MO) was based on questions adapted from Narver and Slater (1990). Strategic SCO (STRACO) and structural SCO (STRUSCO) scales were based on Patel et al. (2013). Customer relationship management (CRM) was based on Vorhies et al. (2011), marketing capabilities (MKGCAP) was based on Morgan et al. (2003) and Vorhies and Morgan (2005). Business performance was based on Hooley et al. (2005). The measurement model was assessed using Mplus 8. The measurement model specification allows each construct to covariate with all others. The fit indexes of the measurement model were satisfactory (CFI: 0.95; TLI: 0.94; RMSEA: 0.05; SRMR: 0.05). Next, we tested the reliability and validity of measurements. The convergent and discriminate validity of the latent variables were tested by confirmatory factor analysis where all constructs are correlated (Table 1). Also, we tested the common methods variance using two methods: Harman’s single factor test and the common latent method. The results of these methods suggest that common method variance is not a problem in this study.
Results and Conclusions
We tested the hypotheses by applying structural equation modeling (SEM) using Mplus 8. The results are presented in Figure 1. The proposed model provides a good fit to the data (χ2= 517.1, d.f.=290, p < 0.000; CFI = 0.94; TLI = 0.94, RMSEA = 0.06, SRMR = 0.08). In addition, we assessed the mediating role of marketing capabilities by employing a bootstrapping routine (Table 2). Figure 1 presents the results of the SEM. Most hypotheses were supported, and overall the study provides evidence of the importance of market orientation and strategic SCO on business performance. The most interesting findings are related to the role of marketing capabilities and structural SCO. First, the results show that marketing capabilities serve as a mediator between business performance and customer relationship management (H7). The main aim of CRM is to establish and keep the relationship with target customers. CRM contributes to increasing the marketing capabilities by helping retailer achieve marketing objectives more effectively and efficiently (Chang et al., 2010). Second, marketing capabilities is not a mediator between business performance and structural SCO (H8). The structural SCO has a negative direct impact on business performance, while structural SCO has a positive impact on marketing capabilities which in turn has a positive impact on business performance. Japanese retailer-supplier relationships are different from that in the western economy (Chung et al., 2006). The channel members in Japan have a long-term orientation when they establish a relationship with each other. The findings of our study reflect this cultural aspect of Japanese retailing environment. Japanese retailers purchase products and services from suppliers on long-term. Economic performance is not a single decision making criteria. Instead, relationships with suppliers who do not contribute fully to economic performance continue. The result of H8 refers to this character of Japanese retailing environment.
The proportion of software in the automotive industry is steadily increasing due to the rapid technological development of automobile E/E parts. Because the automotive E/E technology is now on the basis of intelligent automobile and advanced safety automobile technology. The purpose of this study is to investigate the effect of organizational capability (organizational resource capability and management capability), process capability (process capability, customer Requirement management capability), performance dimension (motivation, participation level). In this study, we conducted questionnaires and statistical analysis on engineers (members of the Korea Advanced Automotive Technology Association) who perform research and development activities in the R&D organization of the automotive E/E part in South Korea. ANOVA is applied for the verification of the difference in performance measured by organizational capability, process maturity, and motivation participation level according to company characteristics (level of processing : supply chain configuration, annual sales, total SW development ratio). According to the results of this study, in order to improve the performance of ASPICE or ISO 26262-related consulting project, a different consulting approach strategy considering the characteristics of organization and personnel is needed. In summary, the analysis results for the three main treatment levels are as follows. The difference in organizational capacity, process capability and performance was found to be statistically significant according to supply chain configuration and annual sales, but it was found that the difference of response according to the proportion of total SW was not significant.
The value created by supply chain management (SCM) practices means managers today are even more interested in these initiatives, this is especially true in emerging markets where they can have a profound impact. This research examines several critical SCM initiatives (strategic supplier partnerships, information quality, and proactive logistics practices), and their impact on supply chain flexibility, and ultimately organizational performance for small scale (fewer than 100 employees) manufacturing firms in India. These constructs are especially important for India because it has been suggested that they have high logistics costs as a result of insufficient infrastructure (e.g., power grid) and various labor-related issues.
Under the Extended Resource Based View of the firm (Mathews, 2003) managers realize that capitalizing on supplier capabilities can improve the firm’s own responsiveness and overall performance. Therefore we examined strategic supplier partnerships (the long-term cooperative exchanges with critical suppliers) and proactive logistics practices (the interactions specifically with logistics providers regarding planning and joint problem solving), along with information quality (including accuracy, adequacy, timeliness, and credibility of information being exchanged) (Monczka et al., 1998). Other constructs include supply chain flexibility (the ability of the firm to respond to any change concerning its trading partners) and organizational performance (capturing productivity, efficiency, market share, and profit level) (Yamin et al., 1999; Tan et al., 1998).
Validated scales developed by Li (2002) and Tan et al. (1998) were used and firm owners were targeted from a list of Coimbatore’s (a city in India) small scale manufacturers covering a wide-range of industries. The result was 75 completed surveys (a 94% response rate) which we evaluated using partial least squares (PLS) path modeling as appropriate for our sample size.
The findings indicate that improving strategic supplier partnerships and information quality enables the firm to achieve a more flexible supply chain and ultimately better organizational performance. This research improves our understanding of critical considerations
This paper studies the effect of information quality level and customer demand on performance measures in a supply chain. The information quality level compares 2 types, the information levels of a customer demand and a lead time. The customer demand proc
This research is focused on the development of the performance measuring system for the supply chain. Although there are previous researches about this, they has the limit to measuring the performance. This is oriented that each measuring system deal with a certain level like strategic level, tactical level, or operational level of the supply chain. However, it is necessary to measure the performance in multiple levels collectively. A new performance measuring system using key performance indicators with integrating SCOR-Model(Supply Chain Operations Reference Model) with Balanced Scorecard(BSC) is proposed in this research. Since SCOR-Model and BSC are mainly dealt with strategic level and operational level, the proposed system can overcome the limit of previous researches. Then, this methodology is used to develop the real time performance measuring system.
The significant attention has been given to implementing a performance measurement system as one of the key enablers for supply chain integration. And yet, there is little guidance to practitioners as to how to develop the system. We propose a design framework for a performance measurement system (PMS) that supports effective supply chain integration among partners, along with the discussion of critical issues in the PMS design framework. Also, this framework provides a step-by-step guideline for building a conceptual PMS design,
This study focuses on identifying and prioritizing the broader performance measures for the service supply chains by taking the case of Majan Electricity Company, Sohar, in the Sultanate of Oman. For an examination of the uniformity of ultimate objectives and the priorities therein, two strata of respondents with a total of fourteen respondents were approached for their valuable insights. Suitable structured instruments were personally administered to elicit the insightful and worthy responses. The two multi-criteria decision-making techniques, namely, the Fuzzy Analytical Hierarchy Process and the Best-Worst Method were used to reach a meaningful prioritization of the identified and refined broader performance measurement dimensions. The results show that there exists a minor gap between the two respondents’ groups in terms of their prioritizations. The major finding points to the difference in terms of the topmost priorities as revealed by the two set of respondents. For one group of respondents, the customer satisfaction matters the most, whereas for the other group, it is the overall profitability that matters the most. This gap against the utopian state assists in concluding that there is a requirement to reorient the employees so as to have a shared and common understanding of the organizational priorities.
The purpose of this study is to examine and analyze the effect of human capital supply chain on the firm performance mediated by innovation culture and innovation process on small- and medium-sized construction enterprises (SMEs) in Indonesia. A survey has been distributed to all construction SMEs that have direct involvement in construction work (contractors and subcontractors). The construction SMEs including medium- and small-scale construction services in three Provinces, namely, the special region of Yogyakarta, East Java, and Central Java. Through purposive sampling technique, primary data is collected by giving a questionnaire to the owner/manager of construction SMEs. The target sample in this study was 200 respondents who have been operating for a minimum of two years. 154 valid questionnaires could be processed. Data analysis uses structural equation modeling with AMOS 24. The results of the study conclude that there is a positive effect on human capital supply chain on firm performance mediated by innovation culture and innovation process, while innovation culture does not affect firm performance. In sum, the innovation culture mediates the relationship between human capital supply chain and firm performance, and the innovation process mediates the relationship between human capital supply chain and firm performance.
This study explored the impact of interactional justice on supply-chain collaboration and sustainable supply-chain performance. Accordingly, it classified interactional justice of supply-chain management (SCM) into interpersonal and informational justice, and empirically classified the effects of these subordinate concepts on supply-chain collaboration and sustainable supply-chain performance. To this end, 700 questionnaires were distributed, and 201 final valid responses were used for the statistical analysis which revealed the significant positive influence of interpersonal justice on informational justice. This indicates that courtesy, respect, and proper words are important in the relationship between buyers and sellers. Both interpersonal and informational justice had a significant positive relationship with supply-chain collaboration. The results suggest that a fair-trade environment should be cultivated to encourage and facilitate seller-buyer collaboration. Lastly, supply-chain collaboration had a positive influence on sustainable supply-chain performance. This implies that if justice is not perceived in the seller-buyer relationship, collaboration can be hindered, which negatively impacts corporate performance. These findings also helped to understand the importance of interactional justice and to propose a new relationship between interpersonal and informational justice.
A model is presented in this paper to provide understanding of the supply chain integration and supply chain information practices’ impact on the manufacturing industries. The supply chain information practices play a crucial role in sharing information between the members of SC network. Thus, it is important to develop a comprehensive understanding of the differences and similarities among ISI and information management. It will allow firms to systematically evaluate and carefully choose the information strategy. The empirical findings of this research offer essential and interesting insights about what role SCI, supply chain information and Supply chain ISI play in determining Malaysia’s financial performance. The theoretical gaps addressed in this study are of significant importance, since a little empirical evidence is available regarding system infrastructure and supply chain information management’s effectiveness. This research provides further paths of exploring system infrastructure and information management, thereby defining the manufacturing industries’ next step in SCM struggle i.e. modifying total integrated SC principle in other manufacturing firms. The Resource-based theory discovered organizational resources as an essential organizational success ingredient. Therefore, in order to recognize its potential value, internal resources, for instance, information system and management must be fully utilized.
Purpose - Today’s world is rapidly changing due to swift changes in organization’s infrastructures and supply chain is becoming an important factor which affects the organization’s global competitiveness. Research design / data / methodology - Researchers indicated that environment uncertainty is considered an external driving force to establish a unique supply chain. Market competition, reducing the gap of performance and quality between the products are compelling the practitioners and researcher to change the paradigm of managing the business processes effectively and efficiently. Results - In old times, supply chain of any organization was measured on the basis of inventory turns, defect rats, lead times, stock buffering and service level. But, Lee H.L. in 2004, published an article in Harvard Business Review who proposed three A (Adaptable, Agile and Aligned) termed as “Triple-A” of successful supply chain. Conclusions - He claimed that organizations can compete through the creation of Triple-A supply chain. Hence, the basic aim of this review paper is to develop basic insights regarding what is Triple-A of supply chain, its importance and functioning in today’s competitive world.