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Supply chain integration and product modularity An empirical study of product performance for selected Hong Kong manufacturing industries

Supply chain integration and product modularity An empirical study of product performance for... Purpose – While the beneficial impact of supply chain integration (SCI) and modular product design are generally acknowledged, few empirical studies have examined how an organization can achieve better performance through SCI with modular product design. The purpose of this paper is to examine the relationship between SCI and modular product design, as well as their impact on product performance. Design/methodology/approach – By surveying 251 manufacturers in Hong Kong, structural equation modelling is used to test the research constructs and the hypothesized model. Findings – The results confirm that information sharing, product co‐development and organizational coordination are crucial organizational processes within SCI. Companies that have high levels of product modularity appear to be good at product co‐development and organizational coordination directly and at information sharing indirectly. Furthermore, companies that have high levels of product co‐development or product modularity appear to have better product performance. Research limitations/implications – This paper theoretically and empirically identifies three specific organizational processes within SCI (information sharing, product co‐development and organizational coordination), which affect modular product design and product performance. These more specific findings were previously absent from the literature. However, the study is limited to the cross‐sectional nature of a survey study, the operationalization of SCI and product modularity, and the nature of the product types. Originality/value – This paper empirically examines the relationships between SCI and product modularity, which has seldom been attempted in previous research. It clearly identifies exactly which processes within SCI are directly and indirectly related to product modularity. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Operations & Production Management Emerald Publishing

Supply chain integration and product modularity An empirical study of product performance for selected Hong Kong manufacturing industries

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References (202)

Publisher
Emerald Publishing
Copyright
Copyright © 2010 Emerald Group Publishing Limited. All rights reserved.
ISSN
0144-3577
DOI
10.1108/01443571011012361
Publisher site
See Article on Publisher Site

Abstract

Purpose – While the beneficial impact of supply chain integration (SCI) and modular product design are generally acknowledged, few empirical studies have examined how an organization can achieve better performance through SCI with modular product design. The purpose of this paper is to examine the relationship between SCI and modular product design, as well as their impact on product performance. Design/methodology/approach – By surveying 251 manufacturers in Hong Kong, structural equation modelling is used to test the research constructs and the hypothesized model. Findings – The results confirm that information sharing, product co‐development and organizational coordination are crucial organizational processes within SCI. Companies that have high levels of product modularity appear to be good at product co‐development and organizational coordination directly and at information sharing indirectly. Furthermore, companies that have high levels of product co‐development or product modularity appear to have better product performance. Research limitations/implications – This paper theoretically and empirically identifies three specific organizational processes within SCI (information sharing, product co‐development and organizational coordination), which affect modular product design and product performance. These more specific findings were previously absent from the literature. However, the study is limited to the cross‐sectional nature of a survey study, the operationalization of SCI and product modularity, and the nature of the product types. Originality/value – This paper empirically examines the relationships between SCI and product modularity, which has seldom been attempted in previous research. It clearly identifies exactly which processes within SCI are directly and indirectly related to product modularity.

Journal

International Journal of Operations & Production Management – Emerald Publishing

Published: Jan 12, 2010

Keywords: Supply chain management; Product design; Production planning; Manufacturing industries; Hong Kong

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