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 gathered from the fourth round of the HPM project, which began in the U.S in 1989 Further details about the project will be provided later in this paper.
The fourth round of the HPM project gathered data from 2014 to 2016, representing the most recent database for this initiative Ongoing efforts aim 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 offers practical insights into the concepts explored It then outlines the research design, detailing the analytical framework, hypotheses, and measurement scales Following this, the methodology for data collection and analysis is presented, with results clearly displayed The author discusses the main findings and their practical implications Finally, the study concludes by highlighting its key contributions, acknowledging limitations, and suggesting directions for future research.
LITERATURE REVIEW
Supply chain coordination
Effective supply chain coordination is essential for enhancing efficiency, improving customer experiences, and achieving quicker response times Collaboration among supply chain members is vital, as individual competition is not feasible due to inherent uncertainties Despite numerous studies on supply chain coordination, a universally accepted definition remains elusive, reflecting the diverse perspectives and contexts involved.
Coordination is widely defined as the management of dependencies among entities, facilitating their collaborative efforts toward shared objectives (Malone et al., 1994) According to Simatupang et al (2002), effective coordination involves the integration and relationship-building among these entities to achieve common goals.
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 balance consumption ensures timely distribution and minimizes logistics costs (Melander et al., 2019) Arshinder (2008) supports this notion, emphasizing the importance of coordination in supply chain management.
In the context of supply chain management, terms such as integration, collaboration, cooperation, and coordination are interrelated yet can also present contrasting meanings These concepts are essential components of Supply Chain Coordination (SCC), where integration refers to combining elements to create a cohesive whole, collaboration emphasizes working together towards common goals, and cooperation involves joint operations Understanding these relationships is crucial for effective supply chain performance.
Numerous studies highlight the advantages of coordination in supply chains, including cost and risk reduction, enhanced quality performance, and improved competitive business performance (Sahin and Robinson 2005, Arshinder et al 2008, Carr et al 2008) Effective supply chain coordination (SCC) offers significant benefits such as eliminating excess inventory, reducing lead times, boosting sales, enhancing customer service, streamlining product development, lowering manufacturing costs, increasing flexibility in uncertain demand situations, improving customer retention, and driving revenue growth (Lee et al 1997, Horvath et al 2001) In recent years, research has increasingly focused on fostering collaborative partnerships among supply chain partners to achieve greater efficiencies, flexibility, and market responsiveness (Eric et al.).
2007, Gilbert et al 2010, Jayaram et al 2011, Ravinder et al 2013, Umar et al 2017)
Coordination in the supply chain can be classified through multiple perspectives, including organizational economics, information processing, group dynamics, and practical social theories Key elements such as responsibility, reciprocity, collaboration, and trust are essential for effective coordination Additionally, many perspectives emphasize the importance of joint efforts in achieving common goals 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 understand the execution of coordination mechanisms and their impact on supply chain (SC) efficiency metrics, as highlighted by Gilbert et al (2010) The literature reveals overlapping studies on supply chain collaboration (SCC), which can be categorized into intra-firm and inter-firm coordination Internal cooperation is crucial for successful external collaboration, suggesting that both should be examined together (Hillebrand et al 2003) Theoretical perspectives emphasize the significance of coordination within and between organizations to enhance outcomes Melander et al (2009) noted that challenges in inter- and intra-organizational coordination are interconnected To convert competitive advantage into profitability, efficient coordination is necessary both internally and externally (Dyer and Singh, 1998) Arshinder et al (2011) argued that extending coordination concepts from internal to external contexts poses challenges for researchers Despite limited attention to their relationship, both internal and external cooperation are clearly related (Hillebrand et al 2003), as explored in Flynn et al (2010) regarding supply chain collaboration.
A manufacturer enhances customer value by strategically collaborating with supply chain partners and integrating both intra- and inter-organizational processes This 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 different divisions and roles within a manufacturer operate as interconnected components of a unified system.
External integration emphasizes the significance of fostering strong, interactive relationships with both customers and suppliers This collaborative approach is essential for supply chain participants, as it enhances cooperation and ultimately increases the overall value of the supply chain.
Inter-organizational coordination (IOC) involves collaboration among multiple organizations to achieve a shared goal or deliver a service According to Levine and White (1961), such relationships arise when organizations can gain reciprocal advantages through communication, fostering teamwork and problem-solving Carr et al (2008) highlight that IOC mitigates environmental risks and enhances supply chain reliability amid uncertainties Successful inter-organizational relationships depend on the dynamic sharing of expertise and intelligence, supported by personal and social interactions Stank et al (1999) emphasize that effective collaboration mechanisms are essential for knowledge sharing and success management To enhance supply chain functions (SCF), managers should actively seek collaboration with external partners, as improving communication with supply chain suppliers is often more challenging than it appears (Angkiriwang et al 2014).
This study explores Inter-Organizational Coordination (IOC), a critical sub-dimension of Supply Chain Collaboration (SCC) It focuses on the coordination between firms and their suppliers and buyers, emphasizing the importance of aligning activities such as strategic planning, new product development, information sharing, and production planning By leveraging integrated networks with suppliers and customers, organizations can enhance their collaborative efforts and improve overall efficiency in their supply chain operations.
Supply Chain Flexibility
In the realm of supply chain management (SCM), research is increasingly highlighting the shift from flexible factories to flexible supply chains Supply chain flexibility is a rapidly evolving research area, characterized by diverse perspectives, conceptualizations, and metrics However, a universally accepted definition remains elusive (Dileep et al 2008, Stevenson et al 2007) The concept of "flexibility" has been explored since the 1980s, with supply chain flexibility evolving significantly from its origins in manufacturing firms (Olhager et al.).
Flexibility in manufacturing refers to a system's ability to adapt to changes with minimal impact on time, effort, cost, or performance It serves as a crucial response mechanism for businesses facing uncertainty in both internal and external environments Research on Supply Chain Flexibility (SCF) largely views it as an extension of manufacturing flexibility, emphasizing a process-oriented and organizational perspective.
The literature on flexibility is categorized into operational interests and organizational functions, highlighting key dimensions such as time, expense, and variety, which reflect a focus on operational responses to internal and external changes Research on Supply Chain Flexibility (SCF) has examined business functions including product creation, sourcing, logistics, and information systems, as noted by Manders et al (2017) However, the variability in these aspects complicates the understanding of SCF definitions and relationships From the customer's perspective, Kumar et al (2008) identify five critical aspects of SCF: manufacturing, product design, customization, responsiveness, and shipping of finished products.
Supply Chain Flexibility (SCF) is defined as a network of interconnected internal and external manufacturing flexibilities that enhance a firm's customer-oriented performance outcomes Research by Kumar et al (2013) further explores the implications of SCF.
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 capacity that enables organizations to navigate internal and external uncertainties by effectively managing relationships within their supply chain and with key partners This adaptability allows supply chains to respond and adjust to evolving market demands, making SCF a fundamental principle for analysts and supply chain managers alike.
Supply Chain Flexibility (SCF) has been defined in various ways across different studies, with researchers measuring it through product quality, time performance, and inventory performance, while also considering customer satisfaction metrics (Anderson et al 1998, Das et al 2000) Downstream SCF refers to customer flexibility, which encompasses the responsiveness of an organization and its key customers to changes in orders (Zhang et al 2009) This study adopts a definition of SCF that emphasizes the ability of a company to swiftly meet end users' needs through effective management of supply chain competencies, as assessed by the Supply Chain Management scales in the HPM codebook Flexibility, based on the Sand Cone model (Ferdows and Meyer, 1990), is defined as the cumulative capacity for quality enhancement and dependability within production systems.
Hypothesis development
2.3.1 Inter-organizational coordination and Supply chain flexibility
To enhance supply chain flexibility, it is essential to prioritize increased coordination and collaboration among supply chain members, as highlighted by Pujawan et al (2004) and Vokurka et al (2000) Effective coordination between upstream and downstream partners is mutually beneficial, leading to reduced costs for all involved, as supported by Porter's (1985) insights and the Sand Cone Model.
Supply chain coordination (SCC) significantly enhances quality performance, reduces delivery times, and increases speed, ultimately leading to improved flexibility (Ferdows and Meyer, 1990) Effective supply chain coordination results in cost reductions, better quality, and greater flexibility in meeting consumer demands (Kumar et al., 2013) Achieving high-quality standards and reliable operations requires collaboration and partnership with trading partners, as no single entity can guarantee these outcomes This paper emphasizes inter-organizational coordination within supply chain management, focusing on both upstream and downstream relationships Terms such as “external supply chain coordination,” “external integration,” and “inter-organizational coordination” are used interchangeably to describe 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 landscape, managers are urged to collaborate with external partners to enhance supply chain flexibility, as highlighted by Angkiriwang et al (2014) Effective external coordination with supply chain participants is crucial for improving industry insights, optimizing product efficiency, and increasing strategic capabilities while also reducing costs and product cycle times (Mostaghel et al 2015; Braunscheidel et al 2009) Mckone-Sweet et al (2009) emphasize the importance of cross-functional and inter-organizational collaboration to swiftly adapt to changing market demands While existing literature predominantly focuses on how inter-organizational coordination with suppliers boosts operational efficiency and product quality in new product development (Carr et al 2008), there is a lack of empirical research on how such coordination impacts flexibility performance According to the Sandcone model, flexibility encompasses the cumulative capabilities of quality enhancement, dependability, and production speed This paper aims to develop hypotheses to explore this theoretical framework further.
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, offers significant advantages in supply chain management, such as enhanced quality performance, timely delivery, and improved flexibility This paper specifically examines various types of connections within the realm of IT.
IT links play a crucial role in enhancing supply chain coordination and flexibility by facilitating digital processes and computer-to-computer connections between businesses, suppliers, and customers (Carr et al 2002) Effective supply chain management systems integrate suppliers, while customer relationship management systems enhance interactions with customers Ensuring the reliability of the supply chain relies on a robust IT infrastructure characterized by continuity, connectivity, and consistency (Ye et al 2013) The benefits of these IT links are significant for overall supply chain performance.
The impact of IT on supply chain performance remains a topic of debate, despite evidence linking IT coordination to improved marketing and financial results Joining an IT network can increase vendor costs due to the need for quick-response services, which in turn boosts supply sales and inventory management expenses Establishing IT connections with external partners enhances supply chain performance by enabling the use of inter-organizational IT tools Furthermore, these IT links with suppliers and customers can strengthen relationships between supply chain coordination (SCC) and supply chain fulfillment (SCF) by facilitating real-time access to inventory information, ultimately reducing costs and improving knowledge sharing among partners.
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 plays a crucial role in supply chain (SC) performance by enhancing visibility and reducing confusion among chain members This process, defined as making information accessible to others, significantly influences supply chain collaboration (SCC) Research indicates that effective information-sharing activities directly impact overall supply chain performance, enabling manufacturers to access vital data related to revenue, manufacturing, and logistics, ultimately leading to improved operational efficiency.
Supply chain integration enhances operational efficiency by reducing material sourcing costs, fostering quality assurance, and increasing adaptability to consumer demands (Sezen, 2008) Effective information sharing among businesses, vendors, and customers cultivates loyalty and strengthens long-term relationships, resulting in shorter lead times and improved product development processes (David et al., 2012) While many studies emphasize the benefits of information sharing in supply chains, it is crucial to note that these advantages are not guaranteed and depend on factors such as the type and intensity of information, as well as the methods of exchange among supply chain participants Therefore, information sharing should be assessed from both upstream and downstream perspectives.
Customer information sharing enables the exchange of diverse data between manufacturers and customers, while supplier information sharing facilitates communication of various data types between manufacturers and suppliers (Wu et al 2014) Numerous studies have empirically demonstrated that information sharing fosters collaborative practices, ultimately enhancing performance However, most research focuses solely on the relationship between firms and either suppliers or customers, often treating them as a single entity (Amrik et al 2013, Wu et al 2014).
Existing empirical studies primarily focus on the direct effects of information sharing on inter-organizational coordination and supply chain finance (SCF), overlooking the moderating role of information sharing in this relationship This paper aims to address this gap by developing the following hypotheses.
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 h
RESEARCH DESIGN
High Performace Manufacturing (HPM) Project introduction
In the quest for competitive advantages amidst global volatility, manufacturing firms are increasingly focused on enhancing performance through the application of both theoretical knowledge and practical insights The High-performance manufacturing project aims to systematically review literature across various fields, including operations and strategic management, while developing a comprehensive database of high-performance manufacturers in the U.S., Europe, and Asia, contrasting them with traditional firms Initiated in 1989 by researchers from the University of Minnesota and Iowa State University, the project has now reached its fourth round of data collection, encompassing over 500 plants across 18 countries The latest study utilizes data from 13 participating nations, including the UK, Finland, Brazil, Germany, Italy, Spain, Sweden, Israel, Japan, Korea, China, Taiwan, and Vietnam, examining qualitative and quantitative data gathered from knowledgeable employees and managers This research provides valuable insights into implementing best practices in diverse cultural and operational contexts.
Analytical Framework
From our intensive literature review, we focus on Inter-organizational coordination practices and Supply chain Flexibility including: h
In which, each variables (taken from HPM codebook) in this framework is described as follow:
Inter-organizational coordination encompasses collaboration with both suppliers and buyers, highlighting the extent to which manufacturers engage with external partners to optimize inter-organizational processes, practices, procedures, and activities This coordination is crucial for enhancing relationships and streamlining operations, as it reflects the level of involvement of a manufacturing plant in key activities with primary buyers and suppliers.
The company prioritizes effective supply chain information sharing with its suppliers and customers, providing critical data such as cost details, delivery schedules, demand fluctuations, and forecasts Additionally, it shares insights into production capabilities, inventory levels, productivity metrics, quality standards, and overall scheduling information to enhance collaboration and efficiency.
- 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 h
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 fund management Technologies such as RFID and PIDT are employed to track shipments, enhancing operational efficiency and transparency 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: h
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 from 204 manufacturing plants across twenty countries, including Brazil, Germany, Israel, Spain, Sweden, Italy, Japan, China, Korea, Finland, Taiwan, the UK, and Vietnam, collected between 2014 and 2016 The diverse data spans three key industries: electrical and electronics, machinery, and automobile Measurement scales were developed using three to six question items assessed on a five-point Likert scale (1=Strongly disagree, 5=Strongly agree) Survey respondents included both Upstream and Downstream Supply Chain Managers, detailed in Appendix B.
Data analysis methodology
Empirical research involves the use of real-world data, which is crucial for both developing and validating theories In this study, the author utilizes statistical software SPSS, along with the PROCESS tool for SPSS version 20.0, as recommended by Hayes (IBM, New York, US), to conduct a moderation analysis.
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 verifying that the collected data follows a normal distribution and is free from issues such as autocorrelation, multicollinearity, and error variance Once these conditions are met, 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, focusing on a comprehensive data collection 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 involved manufacturing plants in the UK and Vietnam across three key industries: Electrical and Electronics, Machinery, and Automobile The study utilized measurement scales consisting of three to six questions evaluated on a five-point Likert scale, ranging from 1 (Strongly disagree) to 5 (Strongly agree) Survey participants included 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 investigating the reliability and validity of measurement scales Reliability, defined as the consistency of measurement, is evaluated using Cronbach's alpha coefficient in this study, with an accepted level of 0.6 as suggested by existing literature This threshold indicates a satisfactory level of consistency among the items within a 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 to ensure that the elements of a scale measure the same multivariate construct Each measurement scale demonstrates factor loadings exceeding 0.4, with all eigenvalues greater than 1, indicating satisfactory construct validity Specifically, the eigenvalue of the first factor for each scale is above one, and the factor loadings typically range from 0.70 to 0.90 for the pooled sample Additionally, a minimum variance proportion of 50% is maintained, reinforcing the robustness of the scales.
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
The ability to meet customer needs is crucial for businesses, particularly in areas such as on-time delivery, flexibility, quality, cost, and speed Effective information sharing with suppliers and customers enhances operational efficiency and inter-organizational coordination Strong IT links with both suppliers and customers facilitate better communication and responsiveness Meeting customer expectations in delivery and flexibility significantly impacts satisfaction, while addressing quality, cost, and speed needs is essential for maintaining competitive advantage Prioritizing these elements can lead to improved relationships and increased loyalty among customers.
Co rr el at io ns h
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 issue with multi-collinearity among the 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 how inter-organizational coordination practices influence supply chain flexibility, while also comparing these effects to other performance metrics such as quality, cost, speed, and on-time delivery The findings of this regression analysis are detailed in Table 3.3.
The author employs Hayes's (2017) methodology to assess the moderating impact of supply chain (SC) information sharing and information technology (IT) links on the relationship between inter-organizational coordination practices and SC flexibility performance, utilizing the "PROCESS" tool in SPSS 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/IT links practices, and an interaction variable derived from the multiplication of SCC practices and the corresponding information sharing or IT links practices The moderating effect is validated by positive and significant coefficients of the interaction variables, indicating that information sharing and IT links practices significantly influence the relationship between SCC practices and flexibility performance, as further illustrated in the appendix.
The findings indicate a positive relationship between interorganizational coordination with suppliers and customers and flexibility performance, as well as cost, speed, and on-time delivery performance However, the relationship between interorganizational coordination with suppliers and quality performance was not significant (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 h
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 h
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:
Inter-organizational coordination with buyers and suppliers significantly influences flexibility, cost, speed, and on-time delivery performance in supply chain processes Moreover, 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 Effective information sharing with suppliers and establishing IT links with customers enhance this relationship Conversely, information sharing with customers and IT connections with suppliers primarily reinforce the link between inter-organizational coordination and cost performance related to buyers.
Information sharing by suppliers and IT links enhance the relationship between inter-organizational coordination with buyers and speed performance These factors play a crucial role in improving overall operational efficiency and responsiveness in supply chain management.
28 links with customers boosts the relationship between Inter-organaizational coordination with suppliers and Speed performance h
DISCUSSION AND IMPLICATIONS
This study investigates 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 identifies three key findings that underscore the importance of these practices for enhancing organizational adaptability.
This study empirically validates the significant relationship between inter-organizational coordination practices and supply chain flexibility (SCF), highlighting their reliability and validity based on data from 204 manufacturing plants across various industries and countries The results align with existing literature, confirming the importance of coordination with both suppliers and customers in enhancing SCF Specifically, customer coordination has been shown to improve operational performance metrics such as delivery, cost, quality, and flexibility Additionally, fostering closer relationships with customers enables manufacturers to better navigate supply chain unpredictability, thereby reducing inventory costs and enhancing responsiveness While some research suggests that supplier coordination may yield greater operational benefits, this study 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, h
According to Braunscheidel et al (2009), nearly all manufacturing companies are effectively collaborating with their supplier partners, resulting in minimal differentiation in terms of flexibility.
This study uniquely contributes to the literature by examining the individual information technology (IT) linkages in inter-organizational coordination (IOC) and their impact on supply chain flexibility (SCF) and other supply chain performance (SCP) metrics Our findings reveal that IT linkages with customers significantly moderate the relationships between IOC with suppliers and SCF (β= 0.11, ρ