Supply chain processes: Linking supply logistics integration, supply performance, lean processes and competitive performance

Abstract

Purpose

The purpose of this paper is to examine the value chain processes that represent the “black box” between supply logistics integration and competitive operational performance in firms. To realize this objective, the authors develop a research model which comprises a series of linkages from supply logistics integration to operational outcomes using Porter’s concept of value chain and the relational view of resource-based theory as theoretical lenses.

Design/methodology/approach

The data set for testing the hypothesized relationships in this study was drawn from 232 Australian manufacturing firms.

Findings

The findings show that there is no significant direct relationship between supply logistics integration and competitive operational performance; rather, the relationship is fully mediated by inbound supply performance and internal lean production processes. Further, lean production processes have a positive effect on inbound supply performance.

Research limitations/implications

The study shows the importance of managing both internal (production processes) and external processes (logistics and supply chain) of firms’ operations in an integrated manner in which supply logistics integration act through key internal processes to impact competitive performance which the end customers actually experience.

Originality/value

This is the first study which uncovers what happens “in between” the incoming materials and the end outputs delivered by firms into the market. This “in between black box” is important in improving our understanding of how inbound supply activities are translated into outbound competitive performance outcomes.

Citation

Prajogo, D., Oke, A. and Olhager, J. (2016), "Supply chain processes: Linking supply logistics integration, supply performance, lean processes and competitive performance", International Journal of Operations & Production Management, Vol. 36 No. 2, pp. 220-238. https://doi.org/10.1108/IJOPM-03-2014-0129