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The effects of internal versus external integration practices on time‐based performance and overall firm performance
Abstract
This paper examines the effects of integration practices on time‐based performance and on overall firm performance (financial and market share). Integration practices are grouped into two categories: (1) external strategic design integration, which reaches across firm boundaries to involve suppliers and customers and (2) internal design‐process integration, which comprises more tactically oriented, integration practices that match design requirements and process capabilities. First, regression results show that both internal and external integration are related to time‐based performance, which in turn is related to firm performance. Thus, two indirect routes to firm performance are identified. Second, hierarchical regression reveals that integration directly affects firm performance even after time‐based performance is accounted for. Finally, we found that the interaction of internal and external integration is significantly related to both market share and financial performance (after controlling for all other effects). This latter result suggests that the joint use of external and internal integration practices has a synergistic effect on firm performance.
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Cites
Accelerating Adaptive Processes: Product Innovation in the Global Computer Industry
Eisenhardt, K. M., & Tabrizi, B. N. (1995) · Administrative Science Quarterly · doi:10.2307/2393701 · Cited by 2,426
Cited by
The impact of supply chain integration on performance: A contingency and configuration approach
Flynn, B. B., Huo, B., & Zhao, X. (2010) · Journal of Operations Management · doi:10.1016/j.jom.2009.06.001 · Cited by 3,310
Wong, C. Y., Boon‐itt, S., & Wong, C. W. Y. (2011) · Journal of Operations Management · doi:10.1016/j.jom.2011.01.003 · Cited by 1,083
How the use of big data analytics affects value creation in supply chain management
Chen, D. Q., Preston, D. S., & Swink, M. (2015) · Journal of Management Information Systems · doi:10.1080/07421222.2015.1138364 · Cited by 829
The impact of internal integration and relationship commitment on external integration
Zhao, X., Huo, B., Selen, W., & Yeung, J. H. Y. (2011) · Journal of Operations Management · doi:10.1016/j.jom.2010.04.004 · Cited by 813
Yang, C.-S., Lu, C.-S., Haider, J. J., & Marlow, P. B. (2013) · Transportation Research Part E: Logistics and Transportation Review · doi:10.1016/j.tre.2013.03.005 · Cited by 345
Metadata
- Authors
- Droge, C., Jayaram, J., & Vickery, S. K.
- Venue
- Journal of Operations Management
- Publisher
- Wiley
- Published
- 2004-10-28
- Volume
- 22
- Issue
- 6
- Pages
- 557-573
- ISSN
- 0272-6963 (ISSN-L)
- 1873-1317
- OpenAlex
- W2046206604
- Cited by
- 660
- References
- 1
- FWCI
- 16.75
- Type
- journal article
- Language
- en
- Open access
- closed
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- 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. https://doi.org/10.1016/j.jom.2004.08.001
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Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
