STRATEGIC PROFILING: EMPIRICAL EVIDENCE OF SUPPLY CHAIN STRATEGY PRACTICES IN SMALL AND MEDIUM ENTERPRISES
https://doi.org/10.22146/jieb.39918 Titik Kusmantini(1*), Wisnu Untoro(2)
(1) UPN Veteran Yogyakarta
(2) Universitas Sebelas Maret Surakarta
(*) Corresponding Author
Abstract
Introduction/Main Objectives: The purpose of this study is to describe the characteristics of the development pattern of the capabilities of SME (Small and Medium Enterprises) to manage an integrated supply chain’s capabilities. Background Problems: The use of a single source will lead to a single respondent bias and give rise to inter-rater reliability for the perceptual data. When measuring the performance variables in this study, which uses self-reporting, the use of a single respondent will lead to bias. Novelty: This study aims to test the concept of fit, in particular for the alignment of strategy between functions, which are the supply chain and manufacturing strategies, by using a selection approach. The taxonomy result will produce a strategic profile which is able to describe the extent to which the strategic decision agrees with, and is consistent between the functions of SMEs in particular. Research Methods: The hypothesis testing process of the study uses a sample of 102 SMEs in the Province of Yogyakarta, Indonesia. The testing technique used in this study is a cluster analysis and an ANOVA. Findings/Results: The testing result of the cluster analysis identifies three taxa of supply chain strategy groups. The result of the ANOVA test is used to test three hypotheses and all the hypotheses are supported, while the hypothesis of the supply chain’s strategy group differences, based on the type of product, is not proven. Conclusion: The cluster testing result produces strategic profiling; it identifies the three groups of the supply chain’s strategies that describe the ability of SMEs to design their supply chain’s capabilities, with particular regard to the six dimensions of the supply chain’s strategy that have been listed.
Keywords
Full Text:
PDFReferences
Baier, C., Hartmann, E., & Moser, R. (2008). Strategic alignment and purchasing efficacy: an exploratory analysis of their impact on financial performance. Journal of Supply Chain Management, 44(4), 36-52. https://doi.org/10.1111/j.1745-493X.2008.00071.x
Banchuen, P., Sadler, I., & Shee, H. (2017). Supply chain collaboration aligns order-winning strategy with business outcomes. IIMB management review, 29(2), 109-121. https://doi.org/10.1016/j.iimb.2017.05.001
Bhattacharya, P. (2017). Modelling strategic alignment of business and IT through enterprise architecture: Augmenting ArchiMate with BMM. Procedia computer science, 121, 80-88. Elsevier B.V. https://doi.org/10.1016/j.procs.2017.11.012
Boon-itt, S., & Wong, C. Y. (2011). The moderating effects of technological and demand uncertainties on the relationship between supply chain integration and customer delivery performance. International Journal of Physical Distribution & Logistics Management, 41(3), 253–276. https://doi.org/10.1108/09600031111123787
Bowman, C., & Ambrosini, V. (1997). Using single respondents in strategy research. British Journal of Management, 8(2), 119-131.
Cagliano, R., Caniato, F., & Spina, G. (2004). Lean, agile and traditional supply: how do they impact manufacturing performance?. Journal of Purchasing and Supply Management, 10(4-5), 151-164. https://doi.org/10.1016/j.pursup.2004.11.001
Cagliano, R., Caniato, F., & Spina, G. (2006). The linkage between supply chain integration and manufacturing improvement programmes. International Journal of Operations & Production Management, 26(3), 282–299. https://doi.org/10.1108/01443570610646201
Chan, A. T., Ngai, E. W., & Moon, K. K. (2016). The effects of strategic and manufacturing flexibilities and supply chain agility on firm performance in the fashion industry. European Journal of Operational Research, 259(2), 486-499. https://doi.org/10.1016/j.ejor.2016.11.006
Christopher, M., & Holweg, M. (2011). " Supply Chain 2.0": managing supply chains in the era of turbulence. International Journal of Physical Distribution & Logistics Management, 41(1), 63-82. https://doi.org/10.1108/09600031111101439
Christopher, M., Peck, H., & Towill, D. (2006). A taxonomy for selecting global supply chain strategies. The International Journal of Logistics Management, 17(2), 277-287. https://doi.org/10.1108/09574090610689998
Cousins, P. D., & Menguc, B. (2006). The implications of socialization and integration in supply chain management. Journal of operations management, 24(5), 604-620. https://doi.org/10.1016/j.jom.2005.09.001
Danese, P., & Romano, P. (2013). The moderating role of supply network structure on the customer integration‐efficiency relationship. International Journal of Operations & Production Management, 33(4), 372–393.
Delery, J. E., & Doty, D. H. (1996). Modes of theorizing in strategic human resource management: Tests of universalistic, contingency, and configurational performance predictions. Academy of management Journal, 39(4), 802-835.
Doty, D. H., Glick, W. H., & Huber, G. P. (1993). Fit, equifinality, and organizational effectiveness: A test of two configurational theories. Academy of Management journal, 36(6), 1196-1250.
Droge, C., Jayaram, J., & Vickery, S. K. (2004). The effects of internal versus external integration practices on time-based performance and overall firm performance. Journal of operations management, 22(6), 557-573.
Fabbe‐Costes, N., & Jahre, M. (2008). Supply chain integration and performance: a review of the evidence. The International Journal of Logistics Management, 19(2), 130–154. https://doi.org/10.1108/09574090810895933
Flynn, B. B., Huo, B., & Zhao, X. (2010). The impact of supply chain integration on performance: A contingency and configuration approach. Journal of operations management, 28(1), 58-71. https://doi.org/10.1016/j.jom.2009.06.001
Frohlich, M. T., & Westbrook, R. (2001). Arcs of integration: an international study of supply chain strategies. Journal of operations management, 19(2), 185-200.
Galbraith, J. R., & Nathanson, D. A. (1978). Strategy implementation: The role of structure and process. West Pub. Co..
Goh, M., Lau, G. T., & Neo, L. (1999). Strategic role and contribution of purchasing in Singapore: a survey of CEOs. Journal of Supply Chain Management, 35(3), 12-23.
Govindan, K. (2018). Sustainable consumption and production in the food supply chain: A conceptual framework. International Journal of Production Economics, 195, 419-431. https://doi.org/10.1016/j.ijpe.2017.03.003
Hair, J. F., Anderson, R. R., Tatham, R. L., & Black, W. C. (2005). Multivariate Data Analysis. New Jersey: Prentice Hall International Inc.
Han, J. H., Wang, Y., & Naim, M. (2017). Reconceptualization of information technology flexibility for supply chain management: An empirical study. International Journal of Production Economics, 187, 196-215. https://doi.org/10.1016/j.ijpe.2017.02.018
Herrington, R. J., Lemak, D. J., Reed, R., & Kendall, K. W. (2004). A Question of Fit: The Links among Environment, Strategy Formulation, and Performance. Journal of Business & Management, 10(1) , 15–37.
Hilletofth, P. (2009). How to develop a differentiated supply chain strategy. Industrial Management & Data Systems, 109(1), 16–33. https://doi.org/10.1108/02635570910926573
Hitt, M. A. (2011). Relevance of strategic management theory and research for supply chain management. Journal of Supply Chain Management, 47(1), 9-13.
Hoejmose, S., Brammer, S., & Millington, A. (2013). An empirical examination of the relationship between business strategy and socially responsible supply chain management. International Journal of Operations & Production Management, 33(5), 589–621. https://doi.org/10.1108/01443571311322733
Hofmann, E. (2010). Linking corporate strategy and supply chain management. International Journal of Physical Distribution & Logistics Management, 40(4), 256–276. https://doi.org/10.1108/09600031011045299
Huang, S. H., Uppal, M., & Shi, J. (2002). A product driven approach to manufacturing supply chain selection. Supply Chain Management: An International Journal, 7(4), 189–199. https://doi.org/10.1108/13598540210438944
Jennings, D. F., Rajaratnam, D., & Lawrence, F. B. (2003). Strategy-performance relationships in service firms: a test for equifinality. Journal of Managerial Issues, 208-220.
Kathuria, R., Joshi, M. P., & Porth, S. J. (2007). Organizational alignment and performance: past, present and future. Management Decision, 45(3), 503–517. https://doi.org/10.1108/00251740710745106
Kim, S. W. (2006). Effects of supply chain management practices, integration and competition capability on performance. Supply Chain Management: An International Journal,11(3), 241–248. https://doi.org/10.1108/13598540610662149
Lee, H. L., Padmanabhan, V., & Whang, S. (1997). The bullwhip effect in supply chains. Sloan management review, 38, 93-102.
McKone-Sweet, K., & Lee, Y.-T. (2009). Development and analysis of a supply chain strategy taxonomy. Journal of Supply Chain Management, 45(3), 3-24.
Miller, D. (1996). Configurations revisited. Strategic management journal, 17(7), 505-512.
Morash, E. A. (2001). Supply chain strategies, capabilities, and performance. Transportation journal, 37-54.
Narasimhan, R., & Jayaram, J. (1998). Causal linkages in supply chain management: an exploratory study of North American manufacturing firms. Decision sciences, 29(3), 579-605.
Porter, M. E. (1980). The competitive advantage of nations: with a new introduction. The Free Press, New York, NY.
Sezen, B. (2008). Relative effects of design, integration and information sharing on supply chain performance. Supply Chain Management: An International Journal, 13(3), 233–240.
Simchi-Levi, D., Kaminsky, P., Simchi-Levi, E., & Shankar, R. (2008). Designing and managing the supply chain: concepts, strategies and case studies. Tata McGraw-Hill Education.
Skinner, W. (1969). Manufacturing-missing link in corporate strategy. Harvard Business Review, 47(3), 136–145.
Skinner, W. (1978). Manufacturing in the corporate strategy. John Wiley & Sons.
Stock, G. N., Greis, N. P., & Kasarda, J. D. (2000). Enterprise logistics and supply chain structure: the role of fit. Journal of operations management, 18(5), 531-547.
Stonebraker, P. W., & Liao, J. (2004). Environmental turbulence, strategic orientation. International Journal of Operations & Production Management, 24(10), 0144–0577. https://doi.org/10.0108/01443570410558067
Subramani, M. (2004). How do suppliers benefit from information technology use in supply chain relationships?. MIS quarterly, 45-73.
Sum, C. C., Kow, L. S. J., & Chen, C. S. (2004). A taxonomy of operations strategies of high performing small and medium enterprises in Singapore. International Journal of Operations & Production Management, 24(3/4), 321–345.
Swink, M., Narasimhan, R., & Kim, S. W. (2005). Linking practice to performance empirical study of high-performing manufacturing plants. Production and Inventory Management Journal, 44, VI1.
Tan, J., & Tan, D. (2005). Environment–strategy co‐evolution and co‐alignment: a staged model of Chinese SOEs under transition. Strategic Management Journal, 26(2), 141-157. https://doi.org/10.1002/smj.437
Van De Ven, A. H., & Drazin, R. (1985). The concept of fit contigency theory. Research in Organizational Behavior, JAI Press, Greenwich, CT.
Venkatraman, N., & Camillus, J. C. (1984). Exploring the concept of “fit” in strategic management. Academy of management review, 9(3), 513-525.
Vickery, S. K., Jayaram, J., Droge, C., & Calantone, R. (2003). The effects of an integrative supply chain strategy on customer service and financial performance: an analysis of direct versus indirect relationships. Journal of operations management, 21(5), 523-539. https://doi.org/10.1016/j.jom.2003.02.002
Wong, W. P., & Wong, K. Y. (2008). A review on benchmarking of supply chain performance measures. Benchmarking: An international journal, 15(1), 25–51.
Watts, C. A., Kim, K. Y., & Hahn, C. K. (1995). Linking purchasing to corporate competitive strategy. International journal of purchasing and materials management, 31(1), 2-8.
Zhao, X., Sum, C. C., Qi, Y., Zhang, H., & Lee, T. S. (2006). A taxonomy of manufacturing strategies in China. Journal of Operations Management, 24(5), 621-636. https://doi.org/10.1016/j.jom.2005.07.003
Zhou, H., & Benton Jr, W. C. (2007). Supply chain practice and information sharing. Journal of Operations management, 25(6), 1348-1365.
DOI: https://doi.org/10.22146/jieb.39918
Article Metrics
Abstract views : 2700
| 
views : 2257
Refbacks
- There are currently no refbacks.
Copyright (c) 2020 Journal of Indonesian Economy and Business
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
| Journal of Indonesian Economy and Business |
| The Journal of Indonesian Economy and Business (print ISSN 2085-8272; online ISSN 2338-5847) is published by the Faculty of Economics and Business Universitas Gadjah Mada, Indonesia. The content of this website is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License |
| © 2019 Journal of Indonesian Economy and Business | Visitor Statistics |