Transcript Factors that affect internal supply chain integration

Factors that affect internal supply
chain integration
Dissertation Proposal
Ana L. Rosado Feger
Clemson University
Motivation
• Competition based on Supply Chain vs.
Supply Chain
• Supply chain management is a source of
competitive advantage.
• Sustainable competitive advantage results
from managing linkages. (Porter 1985)
Motivation
• Much has been written about the benefits of
supply chain integration (external and
internal), but there are few studies
examining how firms can achieve it.
• This research project will develop a model
of the factors that affect integration of three
key SC departments.
Why Internal Integration?
• The strength of a chain is limited by the
strength of its weakest link.
• Understanding the supply chain begins with
understanding internal processes.
• An integrated firm presents a united front to
customers, suppliers, and competitors.
• Process view is the customer’s view.
Key Internal SC Processes
• Purchasing, Operations, and Logistics are
responsible for delivering the product to the
customer.
• Purchasing:
– Gatekeeper for process inputs
• Operations:
– Transforms raw materials into final product
• Logistics:
– Responsible for physical transfer and delivery
Research Question
• What factors affect the integration of the
three focal departments?
• How are these factors interrelated?
• What can plant managers do to facilitate
integration?
Research Model
• Starting point: Pagell 2004
• Modified to enhance generalizability
• Combined with findings of St.John et al
2001, Vickery et al 2003
Outcome Variable: Integration
• Definition:
– A process of interaction and collaboration in
which manufacturing, purchasing and logistics
work together in a cooperative manner to arrive
at mutually acceptable outcomes for their
organization (Pagell 2004)
Outcome Variable: Integration
• Shared Goals
– the extent to which the manager of each focal function
(purchasing, operations, logistics) is familiar with the
strategic goals of each of the other two focal functions
• Cooperation
– the frequency of requests from other focal functions
that are fulfilled by the members of each focal function
• Collaboration
– is the frequency at which a member of a focal function
actively works on issues with members from the other
focal functions
Management Support
• Management sets the tone for the
organization
• Three dimensions
– Individual vs. Collective
– Normative vs. Facilitative
– Strategic vs. Tactical
Structure
• The structure of the firm determines the
balance between differentiation and
integration:
– Span of control
– Levels of authority
Human Resource Management
• Job rotation programs
• Cross-functional teams
• Measurement/Rewards
– Departmental vs. Firm Goals
Communication
• Formal
– Frequency
– Content
• Informal
– Frequency
– Content
– Mode (personal, email, telephone)
Information Systems
• Facilitators of data and information transfer
(St.John et al 2001)
• Precursor to supply chain integration
(Vickery et al 2003)
• Computerized production systems
– MRP, MRPII
• Integrated information systems
– Enterprise systems (ERP) or interfaced
function-specific systems
Research Model
Management Support
Structure
HR Strategy:
Measurement—Rewards
Job Rotation
Cross-functional Teams
Communication
Formal
Informal
Information Technology
INTERNAL
INTEGRATION
Research Hypotheses
• H1: Management Support has a direct
effect on plant Structure.
• H2: Management Support has a direct
effect on HR Strategies
• H3: Management Support has an indirect
effect on Internal Integration.
• H4: Structure has a direct effect on
Communication.
Research Hypotheses
• H5: HR Strategies has a direct effect on
Communication
• H6: HR Strategies has a direct effect on Internal
Integration
• H7: Information Technology has a direct effect on
Communication
• H8: IT has a direct effect on Internal Integration
• H9: Communication has a direct effect on Internal
Integration
Methodology
• Cross-sectional survey
– Web-, e-mail, mail-, and phone-based
• Domain: Manufacturing plants in the US
• Target respondents
– Managers of Purchasing, Operations, and
Logistics departments
– 1-3 respondents per firm
Analysis
• Structural Equation Modeling using EQS
Contributions: Academic
• Contribute to theory-building in Supply
Chain Management
• Empirical tests of proposed models
• Initial look at managerial levers
Contributions: Practitioners
• Understand how factors influence internal
integration
• Develop action plans to improve internal
integration
• Encourage “systems thinking” to address
supply chain issues