Proceedings of the 9th International Conference on Research in Business, Management and Economics
Year: 2024
DOI:
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Comparison of the Impact of Supply Chain Integration on Operational Performance According to Production System
Prof. Dr. Hyunjung Kim
ABSTRACT:
Previous studies on supply chain integration and operational performance are increasing, but mixed results still exist. Most prior studies have argued for the positive impact of supply chain integration on operational performance. However, different results have constantly been presented depending on the different dimensions of supply chain integration and detailed elements of operational performance. Therefore, this study classified supply chain integration into supplier integration, internal integration, and customer integration, and empirically analyzed their impact on operational performance such as quality, cost, delivery, and flexibility. In addition, manufacturers’ production systems were divided into engineering-to-order (ETO), make-to-order (MTO), assemble-to-order (ATO), and make-to-stock (MTS), and the differences in the relationship between supply chain integration and operational performance were compared according to these production systems. This study conducted hierarchical regression analyses on data from 545 manufacturers using the ‘Manufacturing Productivity Survey’ of Ministry of Trade, Industry and Energy and Korea Productivity Center. As a result, in ETO and MTO, supplier integration or internal integration had a significantly positive effect on quality, cost, delivery, and flexibility. Internal integration or customer integration in ATO and supplier integration or internal integration in MTS had a significantly positive impact on quality, cost, and flexibility. This study clearly revealed the somewhat unclear relationship between supply chain integration and operational performance. It also provides insightful implications for manufacturers’ managers who want to strengthen the effectiveness of supply chain integration according to the production system.
keywords: customer integration; internal integration; manufacturer; productivity; supplier integration