INTRODUCTION
Research scope
This study analyzes data from 204 manufacturing firms across 13 countries, including the United Kingdom, Finland, Brazil, Germany, Italy, Spain, Sweden, Israel, Japan, Korea, China, Taiwan, and Vietnam The data was sourced from the fourth round of the HPM project, which began in 1989 in the United States Further details of the project will be discussed later in the paper.
The fourth round of the HPM project collected data from 2014 to 2016, creating the most recent database for the initiative This ongoing research aims to identify best practices that enhance high performance in manufacturing companies.
Structure of study
This study begins with a literature review that summarizes previous research and provides practical insights into the relevant concepts Next, the author outlines the research design, detailing the analytical framework, hypotheses, and measurement scales Following this, the data collection and analysis section examines the research methodology and presents the results The author then highlights the main findings and discussions, offering practical implications Finally, the study concludes by summarizing its key contributions, identifying limitations, and suggesting directions for future research.
LITERATURE REVIEW
Supply chain coordination
Supply chain coordination is essential in supply chain management (SCM) as it enhances efficiency, boosts annual sales, improves customer experience, and accelerates response times Effective competition among supply chain members relies on collaboration and communication across all operational areas, particularly with key vendors and buyers, due to inherent uncertainties Although numerous studies have explored supply chain coordination, a universally accepted definition remains elusive, reflecting the diverse perspectives and contexts involved.
Coordination is defined as the management of dependencies among entities, facilitating their collaborative efforts toward shared goals (Malone et al., 1994) According to Simatupang et al (2002), effective coordination involves the integration and relationship-building between these entities.
4 harmonizing, adjusting, aligning) a variety of things (actions, goals, decisions, facts, skills, and funds) to achieve the chain objective can be defined as coordination in the
From the customer's viewpoint, effectively aligning the order fulfillment rate with actual consumption not only ensures timely distribution but also minimizes logistics costs (Melander et al., 2019) Arshinder (2008) supports this assumption, highlighting the importance of coordination in meeting customer demands.
In the context of supply chain management, terms such as integration, collaboration, cooperation, and coordination are interrelated yet can also be seen as contrasting concepts These elements collectively contribute to the Supply Chain Coordination (SCC) framework, where integration involves combining resources into a cohesive unit, collaboration emphasizes teamwork, and cooperation focuses on joint efforts This understanding highlights the essential roles these components play in enhancing supply chain efficiency and effectiveness.
Numerous studies highlight the advantages of supply chain coordination, including reduced costs and risks, enhanced quality performance, and improved business competitiveness (Sahin and Robinson 2005, Arshinder et al 2008, Carr et al 2008) Research indicates that effective supply chain collaboration (SCC) leads to significant benefits such as reduced excess inventory, shorter lead times, higher sales, better customer service, efficient product development, lower manufacturing costs, and increased flexibility to manage demand fluctuations, ultimately resulting in greater customer retention and revenue growth (Lee et al 1997, Horvath et al 2001) In recent years, the focus has shifted towards fostering collaborative partnerships among supply chain partners to enhance efficiency, flexibility, and market responsiveness (Eric et al 2023).
2007, Gilbert et al 2010, Jayaram et al 2011, Ravinder et al 2013, Umar et al 2017)
Coordination in the supply chain cannot be classified in a singular manner, as it encompasses multiple perspectives including organizational economics, information processing, group dynamics, and practical social theories Key elements such as responsibility, reciprocity, collaboration, and trust are essential intangible skills that facilitate effective coordination Additionally, many viewpoints emphasize that successful coordination hinges on the collective efforts necessary to attain shared objectives across various supply chain operations.
5 different expectations of different stakeholders and different activities; the coordination requirements also vary with the complexity of the operation
Empirical research is essential to effectively implement coordination mechanisms that impact supply chain (SC) efficiency metrics (Gilbert et al 2010) The literature reveals overlapping studies on supply chain coordination (SCC), suggesting it can be categorized into intra-firm and inter-firm coordination perspectives Notably, internal cooperation is vital for successful external collaboration, indicating that both should be analyzed together (Hillebrand et al 2003) Theoretical perspectives emphasize the significance of intra-organizational and inter-organizational coordination for enhanced organizational outcomes Melander et al (2009) highlighted the interrelated challenges of both coordination types, asserting that companies must optimize coordination within and beyond their boundaries to convert competitive advantage into profitability (Dyer and Singh, 1998) Expanding coordination from within organizations to between them poses significant challenges for researchers (Arshinder et al 2011) Despite limited attention to the relationship between internal and external cooperation, evidence suggests a clear connection exists (Hillebrand et al 2003), as explored by Flynn et al (2010) in their study of SC collaboration.
A manufacturer enhances customer value by strategically collaborating with supply chain partners and integrating both intra- and inter-organizational processes for efficient exchanges of products, resources, and information Internal coordination, or inter-functional coordination, reflects the level of cooperation among various departments within the organization According to Flynn et al (2010), effective internal coordination requires that divisions and roles within the manufacturing process operate as interconnected entities.
External integration emphasizes the significance of fostering strong, interactive relationships with both customers and suppliers This collaborative approach is essential for all supply chain participants, as it enhances cooperation and ultimately boosts the overall value of the supply chain.
Inter-organizational coordination (IOC) involves collaboration among multiple organizations to achieve shared goals, enhance mission success, and deliver services effectively As noted by Sol Levine and Paul E White (1961), these relationships are built on reciprocal advantages through communication, fostering teamwork and problem-solving IOC plays a crucial role in optimizing resource procurement and reducing environmental risks, thereby improving supply chain reliability, as highlighted by Carr et al (2008) Successful inter-organizational relationships rely on the dynamic exchange of expertise and intelligence, facilitated by personal and social interactions Stank et al (1999) emphasize the importance of efficient connectivity and knowledge sharing in inter-firm collaborations To enhance supply chain management, managers should actively seek collaborations with external partners, recognizing that fostering effective communication with suppliers is often more challenging than anticipated (Angkiriwang et al 2014).
This study explores Inter-Organizational Coordination (IOC), a crucial sub-dimension of Supply Chain Coordination (SCC) It focuses on the coordination between firms and their suppliers and buyers, highlighting key activities such as strategic planning, new product development, information sharing, production planning cooperation, and the utilization of an integrated network These elements are essential for enhancing collaboration and efficiency in supply chain management.
Supply Chain Flexibility
In the evolving landscape of Supply Chain Management (SCM), research is increasingly focusing on the transition from flexible factories to flexible supply chains Supply chain flexibility is a rapidly developing field, characterized by diverse perspectives, conceptual frameworks, and metrics Despite this growth, there remains a lack of universally accepted definitions (Dileep et al 2008, Stevenson et al 2007) The concept of "flexibility" has been explored since the 1980s, and the notion of Supply Chain Flexibility (SCF) has significantly progressed, particularly from the perspective of manufacturing firms (Olhager et al.).
In the manufacturing sector, flexibility refers to a system's ability to adapt to changes with minimal impact on time, cost, effort, or performance (Upton et al 1994) It serves as a crucial response mechanism for businesses to navigate uncertainties and transitions in both internal and external environments Most research on Supply Chain Flexibility (SCF) views it as an extension of manufacturing flexibility, approached from both process-based and organizational perspectives (Vickery et al 1999, Malhotra et al 2012, Tiwari et al 2015).
The literature on flexibility is categorized into operational interests and organizational functions, with researchers highlighting time, expense, and variety as key dimensions of versatility This focus reflects a tendency towards operational responses to both internal and external changes Key roles in corporate stability include procurement, processing, delivery, and knowledge management Research on Supply Chain Flexibility (SCF) has examined business functions such as product development, sourcing, logistics, and information systems, but the variability in these aspects complicates the understanding of SCF definitions and relationships From the customer's perspective, five critical aspects of SCF are manufacturing, new product design, product customization, responsiveness, and the shipping of finished products.
Supply Chain Flexibility (SCF) is defined as a network of interconnected external and internal manufacturing flexibilities that enhance a firm's ability to achieve customer-oriented performance outcomes Research by Kumar et al (2013) further explores the implications of SCF on operational efficiency and responsiveness.
8 flexibilities dimensions based on the Flow of supply chain: Inbound, In-house and Outbound
Academics and practitioners have gained a greater understanding of the basic concepts of SCF thanks to the efforts of a number of scholars SCF, according to Fayezi et al
Supply chain flexibility (SCF) is a crucial operational capability that enables organizations to navigate internal and external uncertainties by effectively managing relationships with key partners This adaptability allows supply chains to respond and adjust to fluctuating market demands, making SCF a vital concept for analysts and supply chain managers alike.
Supply Chain Flexibility (SCF) has been conceptualized in various ways across different studies, with researchers measuring it through product quality, time performance, and inventory performance, while others have utilized customer satisfaction metrics to assess performance benefits (Anderson et al 1998, Das et al 2000) Downstream SCF, defined as customer flexibility, refers to the ability of the focal organization and its primary customers to respond swiftly to changes in customer orders (Zhang et al 2009) This study adopts the definition of SCF as the extent to which a company efficiently manages the competencies of various organizations within the supply chain to meet end-user needs promptly, as measured by Supply Chain Management scales in the HPM codebook Furthermore, the concept of flexibility is derived from the Sand Cone Model (Ferdows and Meyer, 1990), emphasizing that flexibility, or reaction speed, encompasses the cumulative capacity for quality enhancement and reliability within production systems.
Hypothesis development
2.3.1 Inter-organizational coordination and Supply chain flexibility
Enhancing supply chain flexibility relies heavily on improved coordination and collaboration among stakeholders, as noted by Pujawan et al (2004) and Vokurka et al (2000) Effective coordination across the supply chain, both upstream and downstream, benefits all participants by reducing costs, aligning with Porter's (1985) insights and the principles of the Sand Cone model.
Supply chain coordination (SCC) significantly enhances quality performance, reduces delivery times, and increases operational speed, ultimately leading to greater flexibility (Ferdows and Meyer, 1990) Improved coordination within the supply chain results in cost reductions, enhanced quality, and better performance, allowing businesses to meet consumer demands more effectively (Kumar et al., 2013) Achieving high-quality standards and reliable on-time deliveries requires collaboration and partnerships with trading partners, rather than relying on a single entity This paper specifically examines inter-organizational coordination in supply chain management, focusing on both upstream and downstream interactions Terms such as "external supply chain coordination," "external integration," and "inter-organizational coordination" are used interchangeably, referring to the extent of collaboration between manufacturers and their external partners in organizing strategies, processes, and behaviors (Chen et al.).
2014, Flynn et al 2010) Effective communication, information exchange, collaboration, and performance monitoring define inter-firm coordination procedures (Stank et al.,
In today's competitive market, managers must explore collaboration with external players to enhance supply chain flexibility (Angkiriwang et al 2014) Effective coordination with supply chain participants is vital for improving industry insights, optimizing product efficiency, boosting strategic capabilities (Mostaghel et al 2015), and minimizing costs and product cycle times (Braunscheidel et al 2009) Mckone-Sweet et al (2009) highlight the importance of cross-functional and inter-organizational collaboration to quickly adapt to changing market demands in terms of diversity and speed Existing literature emphasizes that inter-organizational coordination with suppliers significantly improves operational efficiency and product quality in new product development (Carr et al 2008), yet there is limited empirical research on how such coordination affects flexibility performance According to the Sandcone model, flexibility encompasses the cumulative capacity for quality enhancement, dependability, and production speed This paper proposes hypotheses to further investigate this theoretical framework.
Hypothesis H1a: Inter-organizational coordination with suppliers is positively related to Supply chain flexibility
Hypothesis H1b: Inter-organizational coordination with buyers is positively related to
2.3.2 The moderating effect of Information technology links
Information technology (IT) in supply chain management has been proved the importance in SCC and SCF literature from both researchers and practitioners (Li, Ling
2012) Many researchers find IT as enablers for SC integration (Chae et al 2005) and
SC performances, whereas other recent studies carry the empirical test of the moderating role of IT in the relationship between SCC and organizational performance (Zhao et al
Information technology (IT), encompassing computer applications, programs, and networks, plays a crucial role in supply chain management by enhancing quality performance, ensuring on-time delivery, and providing flexibility This paper specifically examines various types of connections within the realm of IT.
IT links play a crucial role in connecting the upstream and downstream elements of the supply chain, enhancing coordination and flexibility performance These links facilitate digital processes, enabling seamless computer-to-computer interactions between businesses, suppliers, and consumers (Carr et al 2002) Effective supply chain management systems integrate suppliers, while customer relationship management systems focus on engaging customers Ensuring the reliability of the supply chain hinges on a robust IT infrastructure that maintains continuity, connectivity, and consistency (Ye et al 2013) The strategic implementation of these IT links can significantly enhance overall supply chain efficiency and responsiveness.
The impact of IT on supply chain performance remains a topic of debate, despite its proven benefits in marketing and financial outcomes For instance, joining an IT network can increase vendor costs due to the need for quick-response services, which ultimately lead to higher supply sales and inventory management expenses IT connections with external partners enhance supply chain performance by utilizing inter-organizational IT tools Furthermore, strong IT links with suppliers and customers can improve relationships between supply chain coordination (SCC) and supply chain fulfillment (SCF) by facilitating real-time information sharing about inventory, thereby reducing costs.
11 quality control, and on-time delivery Therefore, the author develops related hypotheses as following:
Hypothesis H 2a : Relationship between Inter-organizational coordination with suppliers and SCF is stronger with higher IT links with suppliers
Hypothesis H2b: Relationship between Inter-organizational coordination with buyers and SCF is stronger with higher IT links with suppliers
Hypothesis H2c: Relationship between Inter-organizational coordination with suppliers and SCF is stronger with higher IT links with customers
Hypothesis H2d: Relationship between Inter-organizational coordination with buyers and SCF is stronger with higher IT links with customers
2.3.3 The moderating effects of Supply chain information sharing
Information sharing is crucial for supply chain (SC) efficiency, enabling members to access vital data This process, known as information-sharing activities, significantly influences supply chain performance and serves as a key enabler for supply chain collaboration (SCC) (Kembro et al 2014, Kumar et al 2012) Research indicates that by exchanging information regarding revenue, manufacturing, and logistics, manufacturers can enhance visibility and minimize confusion within the supply chain (Robert et al.).
Supply chain integration enhances operational efficiency by reducing material sourcing costs, improving quality assurance, and increasing adaptability to consumer demands (Sezen, 2008) Effective information sharing fosters collaboration among businesses, vendors, and customers, cultivating loyalty and strengthening long-term relationships This partnership leads to benefits such as shorter lead times, quicker order delivery, and a more streamlined new product development process (David et al., 2012) While many studies emphasize the advantages of information sharing in supply chains, academics caution that these benefits are not guaranteed; they depend on the type, intensity, and method of information exchange among supply chain participants, necessitating consideration from both upstream and downstream perspectives.
Customer information sharing facilitates the exchange of various data types between manufacturers and customers (Wu et al 2014), while supplier information sharing enables communication of diverse data between manufacturers and suppliers Numerous studies have empirically demonstrated that information sharing fosters collaborative practices, subsequently enhancing performance However, most research has focused on the relationship between firms and either suppliers or customers individually, often treating them as a single construct (Amrik et al 2013, Wu et al 2014).
In 2014, Kumar et al highlighted that most empirical studies focus on the direct effects of information sharing on inter-organizational coordination and supply chain flexibility (SCF), neglecting the moderating role of information sharing in this relationship This paper proposes several hypotheses to address this gap in the literature.
Hypothesis H 3a : Relationship between Inter-organizational coordination with suppliers and SCF is stronger with higher SC information sharing with suppliers
Hypothesis H 3b : Relationship between Inter-organizational coordination with buyers and SCF is stronger with higher SC information sharing with suppliers
Hypothesis H3c: Relationship between Inter-organizational coordination with suppliers and SCF is stronger with higher SC information sharing by suppliers
Hypothesis H3d: Relationship between Inter-organizational coordination with buyers and SCF is stronger with higher SC information sharing by suppliers
Hypothesis H 4a : Relationship between Inter-organizational coordination with suppliers and SCF is stronger with higher SC information sharing with customers
Hypothesis H 4b : Relationship between Inter-organizational coordination with buyers and SCF is stronger with higher SC information sharing with customers
Hypothesis H4c: Relationship between Inter-organizational coordination with suppliers and SCF is stronger with higher SC information sharing by customers
Hypothesis H4d: Relationship between Inter-organizational coordination with buyers and SCF is stronger with higher SC information sharing by customers
RESEARCH DESIGN
High Performace Manufacturing (HPM) Project introduction
In today's volatile global market, companies, particularly in the manufacturing sector, are striving for competitive advantages to improve performance by leveraging knowledge from various contexts and theories The High-Performance Manufacturing project aims to systematically review literature across operations management, strategic management, and other relevant fields, while developing a comprehensive database of high-performance manufacturers in the U.S., Europe, and Asia for comparison with traditional firms Initiated in 1989 by researchers from the University of Minnesota and Iowa State University, the project has now entered its fourth round of data collection, encompassing over 500 plants across 18 countries This study utilizes data from 13 participating countries, including the U.K., Germany, Japan, and China, with qualitative and quantitative analyses conducted by knowledgeable employees and managers, offering insights into the implementation of manufacturing practices across diverse cultural and organizational contexts.
Analytical Framework
From our intensive literature review, we focus on Inter-organizational coordination practices and Supply chain Flexibility including:
In which, each variables (taken from HPM codebook) in this framework is described as follow:
Inter-organizational coordination encompasses collaboration between manufacturers and their suppliers and buyers, highlighting the degree of partnership in structuring processes, practices, and activities This coordination reflects the level of engagement of a manufacturing plant in various activities with its primary suppliers and buyers, as outlined by Chen and Paulraj (2004) and Zhao et al (2011).
The company prioritizes effective supply chain information sharing with its suppliers and customers by providing critical data, including cost details, delivery updates, demand fluctuations, and forecasts Additionally, it communicates essential insights regarding production capabilities, inventory levels, productivity metrics, quality standards, and scheduling information, ensuring all stakeholders are well-informed and aligned.
- Supply chain information sharing by Suppliers/Customers: describes the company is able to be recieved the Suppliers/Customers’ information like: Cost
SC information sharing with/by suppliers
SC information sharing with/by Customers
IT Link with Suppliers/Customers
15 information, Delivery information, Demand change information, Demand forecast information, Inventory information, Production capacity information, Productivity information, Quality information, Schedule information
Information technology plays a crucial role in connecting suppliers and customers by utilizing electronic tools for effective communication regarding sales processing, procurement requests, invoices, and funds Additionally, technologies like RFID and PIDT are employed to track shipments, enhancing overall efficiency in the supply chain.
- Ability to Meet Customers’ Flexibility Needs (FLEXCN): describes the extent to which flexibility is valued by the downstream supply chain.
Survey instrument (Measurement scales)
To test established hypotheses, the author use a set of HPM questionaires items which is presented in Table 3.1:
ICSUP - Strategic planning with suppliers
- Planning for new products and programs with suppliers
- Planning for product conception and design with suppliers
- Utilization of integrated database for information sharing
ICBUY - Strategic planning with buyers
- Planning for new products and programs with buyers
- Planning for product conception and design with buyers
- Utilization of integrated database for information sharing
- Information about plant manufacturing capabilities
- Information about plant manufacturing capabilities
- Schedule information Supply chain Flexibility
Ability to meet customer's flexibility needs
FLEXCN - Flexibility is the most important criterion used by our customers in selecting us as a supplier
- Our marketing plans/solutions are manufacturing aligned customers select us because we deliver flexibly for their needs
- Our customers can rely on us for flexibility
- We are selected by our customers because of our reputation for flexibility””
This study analyzes data gathered from 204 manufacturing plants across twenty countries, including Brazil, Germany, Israel, Spain, Sweden, Italy, Japan, China, Korea, Finland, Taiwan, the UK, and Vietnam, during the period from 2014 to 2016 The diverse dataset encompasses various industries, specifically electrical and electronics, machinery, and automobile sectors Measurement scales were developed using three to six question items rated on a five-point Likert scale (1=Strongly disagree, 5=Strongly agree) Survey participants included Upstream and Downstream Supply Chain Managers, detailed in Appendix B.
Data analysis methodology
Empirical research utilizes real-world data, making it essential for both theory development and validation The author employs statistical software SPSS, along with the PROCESS tool for SPSS version 20.0, as recommended by Hayes (IBM, New York, US), to analyze moderating effects in their study.
18 impact of Information sharing and IT links on the relationship between Inter- organizational coordination and SCF
In short, there are four steps for analyzing data as follow:
Measurement test: is the approach to check the reliability and validity of survey instruments whether they are reliable and valid or not to be used to further test hypotheses
Descriptive analysis: Descriptive analysis is used to evaluates the implementing level of Inter-Organizational coordination practices, SC performance practices, Information sharing, and IT links practices
Correlation analysis: The next step is to conduct a correlation analysis between variables, bivariate correlation with Pearson correlation coefficients is used
Hypothesis testing involves confirming that the collected data exhibits a normal distribution and is free from autocorrelation, multicollinearity, and error variance Following this verification, a multiple regression analysis is utilized to assess the significance of the study's hypotheses.
Moderating effect testing: Using “PROCESS” tool to analyze the moderate impact of Information sharing and IT links on the relationship between Inter- organizational coordination practices and SCF.
Data Collection and Measurment Analysis
This study utilizes data and measurement scales derived from the HPM project, incorporating information collected from 204 manufacturing plants across 13 countries, including Brazil, Germany, Spain, Israel, Sweden, Italy, Japan, China, Korea, Finland, and Taiwan.
Between 2014 and 2016, the HPM project in the UK and Vietnam focused on manufacturing plants across three key industries: Electrical and Electronics, Machinery, and Automobile To assess various factors, measurement scales were developed using three or six question items rated on a five-point Likert scale, ranging from 1 (Strongly disagree) to 5 (Strongly agree) The survey targeted both Upstream and Downstream Supply Chain Managers, with detailed data collection methods and measurement scales outlined in Appendix B.
3.5.1 Measurement test and descriptive analysis
The initial stage of the analytical process involves examining the reliability and validity of measurement scales Reliability, defined as the consistency of measurements, is assessed in this study using Cronbach's alpha coefficient, with a threshold of 0.6 deemed acceptable according to existing literature This indicates a satisfactory level of consistency among the items within each construct.
The validity of measurement scales is then examined in terms of content and construct Content validity: Content validity is ensured through extensive literature review
Construct validity is assessed through factor analysis, which confirms that the elements of a scale measure the same multivariate construct In this analysis, factor loadings exceed 0.4 for each measurement scale, and all eigenvalues are greater than 1, indicating satisfactory construct validity Specifically, the eigenvalue of the first factor for each scale is above one, with factor loadings typically ranging from 0.70 to 0.90 for the pooled sample Additionally, a minimum variance proportion of 50% is required, reinforcing the validity of the scales used.
Measurement test results, Descriptive statistics, and Factor loading analysis are presented in Appendix B-1, Appendix B-2, and Appendix B-3 (Appendix B) respectively
To assess the inter-relationship between measurement scales, bivariate correlation with Pearson correlation coefficients is used, and the results are summarized in Table 3.2:
SC Inf or m a ti on sha ri ng w it h suppl ie rs
SC Inf or m a ti on sha ri ng by suppl ie rs
SC Inf or m a ti on sha ri ng w it h c us tom e rs
SC Inf or m a ti on sha ri ng by c us tom e rs
IT l inks w it h suppl ie rs
IT l inks w it h c us tom e rs
Int e r- or ga ni z a ti ona l c oor di na ti on w it h suppl ie rs
Int e r- or ga ni z a ti ona l c oor di na ti on w it h bu ye rs
A bi li ty to me e t c us tom e r' s fl e xi bi li ty ne e ds
A bi li ty to me e t c us tom e r' s qua li ty ne e ds
A bi li ty to me e t c us tom e r' s c os t ne e ds
A bi li ty to me e t c us tom e r' s spe e d ne e ds
Effective information sharing between suppliers and customers is crucial for meeting delivery, flexibility, quality, cost, and speed needs Strong IT links enhance collaboration, while inter-organizational coordination with both suppliers and buyers is essential for optimizing performance The ability to fulfill customer requirements, particularly for on-time delivery, significantly impacts overall satisfaction and operational success Prioritizing these aspects can lead to improved relationships and better service outcomes in the supply chain.
Co rr el at io ns
Before conducting the analysis, a correlation analysis was performed, with the mean, standard deviation, and correlation matrix detailed in Appendix B-2, Table 3.2 A correlation value of 0.8 or higher indicates a potential multi-collinearity issue among variables However, the table reveals no significant concerns regarding unusually high standard deviations or means The results from the measurement tests and correlation analysis confirm that the data is reliable and validated for further analysis.
This study employs regression analysis to evaluate the influence of inter-organizational coordination practices on supply chain flexibility, while also comparing these effects to other performance metrics such as quality, cost, speed, and on-time delivery The findings of the regression analysis are detailed in Table 3.3.
The author utilizes Hayes' (2017) methodology to assess the moderating effects of supply chain (SC) information sharing and information technology (IT) links on the relationship between inter-organizational coordination practices and SC flexibility performance, employing the "PROCESS" tool within SPSS software version 20.0 This add-in facilitates the testing of causal relationships through linear models Each hypothesis is evaluated using a regression model that incorporates three independent variables: supply chain coordination (SCC) practices, SC information sharing or IT links practices, and an interaction variable derived from the product of SCC practices and the corresponding information sharing or IT links practices The moderating effect is validated by observing positive and significant coefficients for the interaction variables, indicating that information sharing and IT links practices significantly influence the relationship between SCC practices and flexibility performance, as detailed in the appendix.
The findings indicate a positive correlation between interorganizational coordination with suppliers and customers and various performance metrics, including flexibility, cost, speed, and on-time delivery However, no significant relationship was observed between interorganizational coordination with suppliers and quality performance (p > 0.05).
There are 12 models exhibiting the moderating effect of IS and IT links on the relationship between Inter-organizational coordination and Flexibility performance
Model 1 indicates non-significant impact of Inter-organizational coordination with suppliers and interaction of Information sharing with suppliers and IOC with suppliers on SC flexibility
Model 2 indicates non-significant impact of Inter-organizational coordination with suppliers and interaction of Information sharing by suppliers and IOC with suppliers on
Model 3 indicates non-significant impact of Inter-organizational coordination with suppliers and interaction of Information sharing with customers and IOC with suppliers on SC flexibility
Model 4 indicates non-significant impact of Inter-organizational coordination with suppliers and interaction of Information sharing by customers and IOC with suppliers on SC flexibility
Dependent variables F P R-square VIF Independent variable B t P
16.606 0 0.142 1.173 Inter-Org coordination with supplier 0.148 2.091 0.038
1.173 Inter-Org coordination with buyer 0.294 4.157 0.000 5.93 0.003 0.056 1.173 Inter-Org coordination with supplier -0.005 -0.07 0.945
1.173 Inter-Org coordination with buyer 0.238 3.206 0.002 18.834 0.000 0.158 1.173 Inter-Org coordination with supplier 0.186 2.646 0.009
1.173 Inter-Org coordination with buyer 0.287 4.098 0.000 17.537 0.000 0.149 1.173 Inter-Org coordination with supplier 0.163 2.313 0.022
1.173 Inter-Org coordination with buyer 0.292 4.146 0.000 20.459 0.000 0.161 1.173 Inter-Org coordination with supplier 0.159 2.279 0.024
1.173 Inter-Org coordination with buyer 0.323 4.644 0.000
Ability to meet customer's flexibility needs
Ability to meet customer's quality needs
Ability to meet customer's cost needs
Ability to meet customer's speed needs
Ability to meet customer's on-timedelivery needs
Model 5 indicates non-significant impact of Inter-organizational coordination with suppliers and interaction of IT links with suppliers and IOC with suppliers on SC flexibility
Model 6 indicates significant impact of Inter-organizational coordination with suppliers and interaction of IT links with customers and IOC with suppliers on SC flexibility
Model 7 indicates non-significant impact of Inter-organizational coordination with buyers and interaction of Information sharing with suppliers and IOC with buyers on
Model 8 indicates non-significant impact of Inter-organizational coordination with buyers and interaction of Information sharing by suppliers and IOC with buyers on SC flexibility
Model 9 indicates significant impact of Inter-organizational coordination with buyers and interaction of Information sharing with customers and IOC with buyers on SC flexibility
Model 10 indicates significant impact of Inter-organizational coordination with buyers and interaction of Information sharing by customers and IOC with buyers on SC flexibility
Model 11 indicates non-significant impact of Inter-organizational coordination with buyers and interaction of IT links with suppliers and IOC with buyers on SC flexibility
Model 12 indicates significant impact of Inter-organizational coordination with buyers and interaction of IT links with customers and IOC with buyers on SC flexibility
The author have summerized the moderating effects on the relationship between Inetr- organizational coordination and Flexibility performance as Figure 2
Table 3 4: Hierarchical regression analysis (Dependent variable: FLEXCN)
Independent Variables R-square F Statistic P-value (F test) Coefficients t-value p-Value (t Test)
Hierarchical regression analysis (Dependent variable: FLEXCN)
Figure 3 2: Summarized moderating effects on SCF performance Comparing to other performance in term of: quality, cost, speed, on-time delivery in
Appendix C that the moderators strengthen the relationship between Inter-orgaizational coordination practices and Cost, Speed performance (p0.05)
Table 3 5 summarizes the hypothesis testing outcomes Analytical results suggest that H1a, H1b, H2c, H2d, and H4b be accepted, but that H2a, H2b, H3a, H3b, H3c, H3d, H4a, H4c and H4d be rejected
SC information sharing with suppliers
SC information sharing with Customers
SC information sharing by suppliers
SC information sharing by customers
Table 3 5: Summary of hypotheses test
H1a Inter-organizational coordination with suppliers -> SCF 0.15 0.04 Supported
H1b Inter-organizational coordination with buyers -> SCF 0.29 0.00 Supported
H2a Inter-organizational coordination with suppliers *IT links with supplier
H2b Inter-organizational coordination with buyer *IT links with supplier
H2c Inter-organizational coordination with suppliers *IT links with customers
H2d Inter-organizational coordination with buyers *IT links with customers
H3a Inter-organizational coordination with suppliers *Information sharing with suppliers
H3b Inter-organizational coordination with buyers *Information sharing with suppliers
H3c Inter-organizational coordination with suppliers *Information sharing by suppliers
H3d Inter-organizational coordination with buyers *Information sharing by suppliers
H4a Inter-organizational coordination with suppliers *Information sharing with customers
H4b Inter-organizational coordination with buyers *Information sharing with customers
H4c Inter-organizational coordination with suppliers *Information sharing by customers
H4d Inter-organizational coordination with buyers *Information sharing by customers”
The results of regression and moderating test for Flexibility performance and comparing to other Dependent variables (Appendix C) can be summarized as follows:
Effective inter-organizational coordination with buyers and suppliers significantly influences flexibility, cost, speed, and on-time delivery performance in supply chain processes Additionally, coordination with buyers plays a crucial role in enhancing quality performance within the supply chain.
• The relationship between Inter-organizational coordination with suppliers practices and flexibility performance is stronger with higher IT links with customers practices
• The relationship between Inter-organizational coordination with buyers practices and flexibility performance is stronger with higher Information sharing with/by customers and IT links with customers
Inter-organizational coordination practices significantly influence cost performance in supply chains Specifically, effective information sharing with suppliers and establishing IT links with customers enhance this relationship Conversely, while information sharing with customers and IT connections with suppliers bolster the link between inter-organizational coordination and cost performance, their impact is primarily observed in interactions with buyers.
The speed performance of an organization is enhanced through effective information sharing by suppliers and strong IT connections with them, which in turn bolster inter-organizational coordination with buyers.
28 links with customers boosts the relationship between Inter-organaizational coordination with suppliers and Speed performance
DISCUSSION AND IMPLICATIONS
This study analyzes the HPM database to provide new empirical evidence on how inter-organizational coordination practices influence flexibility performance in manufacturing enterprises It highlights the significant moderating effects of information exchange and IT links, which are essential in today’s dynamic business landscape The research presents three key findings that underscore the importance of these practices for enhancing operational adaptability.
This study confirms a significant relationship between inter-organizational coordination practices and supply chain flexibility (SCF), validated by data from 204 manufacturing plants across various industries and countries The findings align with existing literature, highlighting the importance of coordination with both suppliers and customers in enhancing SCF Research indicates that effective supplier-customer collaboration positively impacts operational performance metrics such as delivery, cost, quality, and flexibility Notably, tighter customer relationships enable manufacturers to better navigate supply chain uncertainties, gather valuable demand information, reduce inventory costs, and improve responsiveness While some studies suggest that supplier coordination may yield greater operational benefits, this research indicates that inter-organizational coordination with buyers is more advantageous for SCF, as evidenced by a significant p-value of 0.000.
< 0.038), and only IOC with buyers have a significant impact on quality performance (p-value=0.002) which is also opposite to the findings of Schoenherr and Swink (2012)
It implies that the coordination with buyers or customers will make the whole supply chain working more flexibility which is similar to study of (Jayaram et al., 2011,
According to Braunscheidel et al (2009), nearly all manufacturing companies are effectively collaborating with their suppliers, resulting in minimal differentiation in terms of flexibility.
This study uniquely contributes to the literature by examining the individual Information Technology (IT) linkages involved in inter-organizational coordination (IOC) and their effects on supply chain flexibility (SCF) and other supply chain performance (SCP) metrics Our findings reveal that IT connections with customers significantly moderate the relationship between IOC with suppliers and SCF, as well as IOC with buyers and SCF, with positive effects (β=0.11, ρ